Zillow Group Earnings
Zillow Group, Inc. reported its fourth-quarter earnings for 2024, showcasing significant progress in core financial indicators while illustrating strategic foresight in its business segments. Despite a competitive environment, Zillow's effective execution steered them toward growth and signaled potential for sustained momentum into the next fiscal year.
Financial Overview:
| Metric | Q4 2024 | Q4 2023 | Year-Over-Year Change | FY 2024 | FY 2023 | Year-Over-Year Change |
|---|---|---|---|---|---|---|
| Total Revenue ($M) | 554 | N/A | 17% | 2,200 | N/A | 15% |
| Net Loss ($M) | (52) | (73) | Improved | (112) | N/A | Improved |
| Adjusted EBITDA ($M) | 112 | N/A | N/A | 498 | N/A | Increased |
| Adjusted EBITDA Margin | 20% | N/A | N/A | 22% | N/A | Improved |
The Q4 figures demonstrate an impressive 17% hike in total revenue compared to last year, underscoring Zillow Group’s adept management of cost structures and strategic investments which have resulted in reduced losses and enhanced profitability margins.
Zillow Group Results
Key Financial Metrics
The financial performance of Zillow Group in the fourth quarter and throughout the fiscal year signifies a rejuvenated growth path. With a total revenue of $554 million in Q4 2024, the company has managed to implement successful cost containment strategies, reducing its net loss to $52 million from $73 million the previous year. The improvement in Adjusted EBITDA, now positioned at $112 million, indicates a robust flow of operational success, which also reflects in their increased EBITDA margin.
Revenue Breakdown
Segment Performance
| Segment | Q4 2024 Revenue ($M) | Year-Over-Year Change |
|---|---|---|
| For Sale | 428 | 15% |
| Residential | 387 | 11% |
| Mortgages | 41 | 86% |
| Rentals | 116 | 25% |
The revenue breakdown elucidates strong growth across Zillow Group's key segments:
- For Sale: Garnered $428 million, marking a healthy 15% increase.
- Residential: Brought in $387 million, realizing an 11% growth rate.
- Mortgages: Despite market volatility, it saw a remarkable 86% revenue jump fueled by a substantial rise in purchase loan origination.
- Rentals: Surged by 25%, driven primarily by multifamily revenue expansion.
Such performance across segments showcases Zillow Group's dynamic adaptability and innovative service enhancements.
Key Developments
In its latest reporting quarter, Zillow Group achieved several noteworthy operational milestones:
- Surpassing company revenue forecasts, the firm exhibited resilience amid industry transactions.
- Strengthened its financial standing with $1.9 billion in cash and investments, a feat partly attributed to strategic convertible debt management.
- An upswing in digital traffic saw Zillow's platform attracting 204 million average monthly users, further consolidating its market position.
Comments from Company Officers
CEO Jeremy Wacksman expressed pride in the year's achievements, particularly the double-digit revenue growth and effective transformation within the real estate realm. He voiced optimism about Zillow Group's strategic trajectory, forecasting sustained growth into 2025.
Dividends and Share Repurchases
The company did not report any new initiatives regarding dividends or share repurchases, hinting at a potential reinvestment focus to solidify growth ambitions.
Zillow Group Stock Forecast
In light of Zillow Group’s impressive financial performance and strategic advancements, the stock forecast remains optimistic despite a minor post-earnings dip of 1.86%. Given the current market capitalization of $11.05 billion and a last trading price of $86.33, analysts can anticipate modest stock movements. A cautious high forecast ranges between $90-$95, banking on continued growth momentum, while a low projection addresses potential market headwinds around $82-$85. These forecasts accommodate Zillow’s solid earnings, strong market position, and future growth potential.
In summary, Zillow Group’s Q4 2024 earnings underscore robust strategic evolution. With enhanced segment performance and positive trends, the company emerges as a formidable player poised for continued success.
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