Z
illow's revenue surged 13% in the first quarter, outpacing expectations as traffic increased by 5%. CEO Jeremy Wacksman attributed this growth to bundled offerings and reaffirmed the company's new listing rules. Despite a slow start to the housing market, Zillow is expanding its market share through its mortgage and rentals businesses.
The "super app" experience, which combines various consumer services, drove mortgage revenue up 32% year-over-year to $41 million. Rentals revenue rose 33%, fueled by an increase in multifamily listings. The company's partnerships with Realtor.com and Redfin are expected to contribute to continued growth.
Wacksman defended the new listing policy, stating it aims to promote practices already widely adopted in the industry. He emphasized that sellers still have choices, such as pocket or off-internet listings. While details on the policy will be released later this month, Wacksman has been encouraged by initial support.
Key metrics include:
* Revenue: $598 million for Q1, up 13% year-over-year and exceeding expectations.
* Residential revenue: $417 million, a 6% increase from last year.
* Cash and investments: $1.6 billion at the end of March.
* Adjusted EBITDA: $153 million in Q1, an improvement from last year.
* Net income/loss: A gain of $8 million in Q1.
Zillow estimates revenue will be between $635 million to $650 million for the second quarter, continuing its double-digit growth. The company has also expanded Zillow Showcase, a service providing enhanced visual features and interactive floor plans to listings agents.
