Zillow Group Reports Fourth-Quarter and Full-Year 2024 Financial Results

PR Newswire

SEATTLE, Feb. 11, 2025

SEATTLE, Feb. 11, 2025 /PRNewswire/ -- Zillow Group, Inc. (NASDAQ: Z and ZG), which is transforming the way people buy, sell, rent and finance homes, today announced its consolidated financial results for the three months and year ended December 31, 2024.

Complete financial results, and outlook for the first quarter of 2025, can be found in our shareholder letter on the Investor Relations section of Zillow Group's website at https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx.

"2024 was a remarkable year for Zillow: We achieved our stated goals for the year -- including double-digit revenue growth -- and we expect to keep up our momentum in 2025," said Zillow Chief Executive Officer Jeremy Wacksman. "The results we reported today demonstrate how well we are executing and seizing our opportunity to transform and digitize residential real estate. With the leading brand in our category and a solid foundation for continued growth, we're excited to serve more buyers, sellers, renters, and real estate professionals this year."

Recent highlights include:

   -- Zillow Group's fourth-quarter results exceeded the company's outlook for 
      revenue and Adjusted EBITDA. 
 
   -- Q4 revenue was up 17% year over year to $554 million, above the midpoint 
      of the company's outlook range by $21 million. Q4 revenue outperformed 
      the residential real estate industry's year-over-year total transaction 
      value growth of 13% according to NAR1 and 15% according to industry data 
      tracked and estimated by Zillow.2 Full-year 2024 revenue of $2.2 billion 
      was up 15% year over year. 
 
          -- For Sale revenue was up 15% year over year to $428 million in Q4. 
 
                 -- Residential revenue was up 11% year over year in Q4 to $387 
                    million, benefiting primarily from continued conversion 
                    improvements and Zillow Showcase expansion. 
 
                 -- Mortgages revenue increased 86% year over year to $41 
                    million in Q4, due primarily to a 90% increase in purchase 
                    loan origination volume to $923 million. 
 
          -- Rentals revenue increased 25% year over year to $116 million in 
             Q4, primarily driven by multifamily revenue growing 41% year over 
             year. 
 
   -- On a GAAP basis, net loss was $52 million and net loss margin was 9% in 
      Q4 2024, compared with net loss of $73 million and net loss margin of 15% 
      in Q4 2023. GAAP net loss was $112 million for the full year 2024 and net 
      loss margin was 5%, a 300 basis point improvement from 8% net loss margin 
      in 2023. 
 
   -- Q4 Adjusted EBITDA was $112 million, or 20% of revenue, driven primarily 
      by higher-than-expected Residential revenue and strong Rentals revenue. 
      Adjusted EBITDA for the full year 2024 was $498 million and Adjusted 
      EBITDA margin was 22%, up 200 basis points from 20% Adjusted EBITDA 
      margin in 2023. 
 
   -- Cash and investments at the end of Q4 were $1.9 billion, down from $2.2 
      billion at the end of Q3, primarily due to the settlement of the 
      company's 2026 convertible debt in December. 
 
   -- Traffic to Zillow Group's mobile apps and sites in Q4 was up 3% year over 
      year to 204 million average monthly unique users. Visits during Q4 were 
      up 3% year over year to 2.1 billion. 
 
 
(1) National Association of Realtors$(R)$ existing homes sold during Q4 2024 
multiplied by the average selling price per home for Q4 2024, compared with 
the same period in 2023 
(2) Calculated as the number of existing residential homes sold during Q4 2024 
multiplied by the average sales price of existing residential homes sold for 
Q4 2024 according to industry data collected and estimated by Zillow, as 
published monthly on our site 
 

Fourth-Quarter and Full-Year 2024 Financial Highlights

The following table sets forth Zillow Group's financial highlights for the periods presented (in millions, except percentages, unaudited):

 
                         Three Months Ended                                    Year Ended 
                            December 31,                                      December 31, 
               --------------------------------------            -------------------------------------- 
                                                       2023 to                                           2023 to 
                                                        2024 %                                            2024 % 
                      2024                2023          Change          2024                2023          Change 
               ------------------  ------------------            ------------------  ------------------ 
Revenue: 
For Sale 
revenue: 
Residential    $              387  $              349    11 %     $           1,594   $           1,452    10 % 
Mortgages                      41                  22    86 %                   145                  96    51 % 
               ------------------  ------------------            ------------------  ------------------ 
For Sale 
 revenue                      428                 371    15 %                 1,739               1,548    12 % 
Rentals                       116                  93    25 %                   453                 357    27 % 
Other                          10                  10    -- %                    44                  40    10 % 
               ------------------  ------------------            ------------------  ------------------ 
Total revenue  $              554  $              474    17 %     $           2,236   $           1,945    15 % 
               ==================  ==================            ==================  ================== 
Other 
Financial 
Data: 
Gross profit   $              420  $              359             $           1,709   $           1,524 
Net loss            $        (52)       $        (73)                 $       (112)       $       (158) 
Adjusted 
 EBITDA (1)    $              112        $         69            $              498  $              391 
Percentage 
of Revenue: 
Gross profit                 76 %                76 %                          76 %                78 % 
Net loss                    (9) %              (15) %                         (5) %               (8) % 
Adjusted 
 EBITDA (1)                  20 %                15 %                          22 %                20 % 
 
 
 
(1) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or 
presented in accordance with U.S. generally accepted accounting principles, or 
GAAP. See below for more information regarding our presentation of Adjusted 
EBITDA, including a  reconciliation of Adjusted EBITDA to the most directly 
comparable GAAP financial measure, which is net loss, for each of the periods 
presented. . 
 

Conference Call and Webcast Information

Zillow Group will host a live webcast to discuss these results today at 2 p.m. Pacific Time (5 p.m. Eastern Time). Please register for the live event at https://zillow-q4-24-financial-results.open-exchange.net/. A shareholder letter, investor presentation, and link to both the live webcast and recorded replay of the call may be accessed in the Quarterly Results section of Zillow Group's Investor Relations website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding the future performance and operation of our business, and our business strategies and ability to translate such strategies into financial performance. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "predict," "will," "projections," "continue," "estimate," "outlook," "guidance," "would," "could," "strive, " or similar expressions constitute forward-looking statements. Forward-looking statements are made based on assumptions as of February 11, 2025, and although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee these results. Differences in Zillow Group's actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group's control.

Factors that may contribute to such differences include, but are not limited to: the health and stability of the economy and United States residential real estate industry, including changes in inflationary conditions, interest rates, housing availability and affordability, labor shortages and supply chain issues; our ability to manage advertising and product inventory and pricing and maintain relationships with our real estate partners; our ability to establish or maintain relationships with listing and data providers, which affects traffic to our mobile applications and websites; our ability to comply with current and future rules and requirements promulgated by the National Association of REALTORS(R), multiple listing services, or other real estate industry groups or governing bodies, or decisions to repeal, amend, or not enforce such rules and requirements; our ability to navigate industry changes, including as a result of past, pending or future class-action lawsuits, settlements or government investigations, which may include lawsuits, settlements or investigations in which we are not a named party, such as the National Association of REALTORS(R) settlement agreement entered into on March 15, 2024; uncertainties related to changes resulting from the November 2024 elections in the United States; our ability to continue to innovate and compete to attract customers and real estate partners; our ability

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