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Zillow posts trims 3Q loss as revenue soars

November 2, 2011

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SEATTLE—Real estate listings and information company Zillow Inc. on Wednesday reported a smaller loss for the third quarter as revenue more than doubled and the number of visitors to its website swelled.

The company, which went public in July, reported a loss of $570,000, or 2 cents a share, for the three months ended Sept. 30. That compares with a loss of $1.5 million, or 12 cents a share, in the same period last year.

Excluding a $1.7 million charge related to the company's move into new facilities, Zillow earned $1.1 million, or 5 cents a share, for the latest quarter, the company said.

On that basis, the results trumped analysts' consensus forecast for earnings of 3 cents a share, according to FactSet.

Revenue for the quarter vaulted to $19.1 million from $8.2 million a year earlier. Analysts had expected $17.2 million.

Founded in 2004, Zillow provides online listings for more than 100 million homes that are either for sale or for rent. The company makes money from advertising that comes from real estate professionals as well as mortgage companies and brands such as phone or insurance companies. Users can access its services via a computer, as well as with mobile devices connected to the Internet.

The company said its average monthly unique users doubled to 24.2 million in the third quarter from 12.1 million a year earlier.

"We continue to see substantial growth in site traffic, mobile usage and revenues," said Spencer Rascoff, Zillow's chief executive.

The company said it expects 2011 revenue to range from $63 million to $64 million. Analysts are anticipating full-year revenue of $61.7 million.

Also on Wednesday, Zillow announced that it has acquired almost all of the assets of Diverse Solutions, an Irvine, Calif.-based company that provides real estate listings and property search, for about $7.8 million in cash and stock.

Zillow shares were up $1.73, or 6 percent, to $29.19 in extended trading following the release of the earnings report. They rose 83 cents, or 3.1 percent, to $27.46 during regular trading.