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

Rhea-AI Summary

Zillow Group (NASDAQ: Z) reported strong Q4 2024 financial results, with revenue growing 17% year-over-year to $554 million, exceeding company outlook. Full-year 2024 revenue reached $2.2 billion, up 15% from 2023.

Key Q4 metrics include: For Sale revenue up 15% to $428 million, Residential revenue up 11% to $387 million, Mortgages revenue increased 86% to $41 million with purchase loan origination volume up 90% to $923 million, and Rentals revenue up 25% to $116 million.

The company reported a Q4 net loss of $52 million (9% margin), improved from $73 million loss (15% margin) in Q4 2023. Q4 Adjusted EBITDA was $112 million (20% margin). Cash and investments stood at $1.9 billion at quarter-end. Traffic reached 204 million average monthly unique users, up 3% year-over-year.

Positive

• Revenue growth of 17% YoY in Q4, outperforming industry benchmarks
• Mortgages revenue surged 86% YoY with 90% increase in loan origination volume
• Rentals revenue up 25% YoY with multifamily growing 41%
• Improved net loss margin from 15% to 9% YoY in Q4
• Adjusted EBITDA margin increased to 22% for full-year 2024

Negative

• Q4 net loss of $52 million
• Cash and investments decreased from $2.2B to $1.9B QoQ
• Modest 3% growth in traffic and visits

Insights

Financial Analyst

Zillow's Q4 2024 results reveal a compelling growth story amid challenging real estate market conditions. The company's 17% revenue growth to $554 million significantly outpaced the broader residential real estate market's transaction value growth of 13-15%, indicating market share gains and successful execution of its digital transformation strategy.

The standout performance in the Mortgages segment (+86% YoY) with $923 million in loan origination volume demonstrates successful vertical integration and revenue diversification efforts. This expansion in mortgage services creates a more robust revenue stream while deepening customer relationships throughout the home transaction journey.

The Rentals segment's 25% growth, driven by a remarkable 41% surge in multifamily revenue, showcases Zillow's strong position in the rental market. This performance is particularly noteworthy given the current housing affordability challenges, which have sustained rental demand.

Operational efficiency improvements are evident in the 300 basis point enhancement in net loss margin year-over-year and the Adjusted EBITDA margin expansion to 20%. These metrics suggest the company's investments in technology and platform optimization are yielding returns through improved conversion rates and operating leverage.

The reduction in cash position from $2.2B to $1.9B due to convertible debt settlement reflects prudent balance sheet management, though it's worth monitoring future capital allocation strategies as the company continues to invest in growth initiatives. The modest 3% increase in traffic to 204 million monthly unique users indicates market leadership but suggests opportunities for enhanced user engagement and monetization.

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® 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 December 31,				2023 to 2024 % Change		Year Ended December 31,				2023 to 2024 % Change
		2024		2023				2024		2023
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®, 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® 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 to effectively invest resources to pursue new strategies, develop new products and services and expand existing products and services into new markets; our ability to operate and grow Zillow Home Loans' mortgage operations, including the ability to obtain or maintain sufficient financing to fund the origination of mortgages, meet customers' financing needs with product offerings, continue to grow origination operations and resell originated mortgages on the secondary market; the duration and impact of natural disasters, climate change, geopolitical events, and other catastrophic events (including public health crises) on our ability to operate, demand for our products or services, or general economic conditions; our targets and disclosures related to environmental, social, and governance matters; our ability to maintain adequate security controls or technology systems, or those of third parties on which we rely, to protect data integrity and the information and privacy of our customers and other third parties; our ability to navigate any significant disruption in service on our mobile applications or websites or in our network; the impact of past, pending or future litigation and other disputes or enforcement actions, which may include lawsuits or investigations to which we are not a party; our ability to attract, engage, and retain a highly skilled workforce; acquisitions, investments, strategic partnerships, capital-raising activities, or other corporate transactions or commitments by us or our competitors; our ability to continue relying on third-party services to support critical functions of our business; our ability to protect and continue using our intellectual property and prevent others from copying, infringing upon, or developing similar intellectual property, including as a result of generative artificial intelligence; our ability to comply with domestic and international laws, regulations, rules, contractual obligations, policies and other obligations, or to obtain or maintain required licenses to support our business and operations; our ability to pay our debt, settle conversions of our convertible senior notes, or repurchase our convertible senior notes upon a fundamental change; our ability to raise additional capital or refinance our indebtedness on acceptable terms, or at all; actual or anticipated fluctuations in quarterly and annual results of operations and financial position; actual or perceived inaccuracies in the assumptions, estimates and internal or third-party data that we use to calculate business, performance and operating metrics; and volatility of our Class A common stock and Class C capital stock prices.

The foregoing list of risks and uncertainties is illustrative but not exhaustive. For more information about potential factors that could affect Zillow Group's business and financial results, please review the "Risk Factors" described in Zillow Group's publicly available filings with the United States Securities and Exchange Commission. Except as may be required by law, Zillow Group does not intend and undertakes no duty to update this information to reflect future events or circumstances.

About Zillow Group, Inc.

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries, and brands include Zillow^®, Zillow Premier Agent^®, Zillow Home Loans℠, Zillow Rentals^®, Trulia^®, Out East^®, StreetEasy^®, HotPads^®, ShowingTime+^SM, Spruce^®, and Follow Up Boss^®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

Please visit https://investors.zillowgroup.com, www.zillowgroup.com/news, www.x.com/zillowgroup, and www.linkedin.com/company/zillow, where Zillow Group discloses information about the company, its financial information, and its business that may be deemed material.

The Zillow Group logo is available at https://zillowgroup.mediaroom.com/logos-photos. 

(ZFIN)

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We have provided a reconciliation below of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. We have not provided a quantitative reconciliation of forecasted GAAP net income (loss) to forecasted Adjusted EBITDA within this press release because we are unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include but are not limited to: income taxes that are directly impacted by unpredictable fluctuations in the market price of the company's capital stock; depreciation and amortization from new acquisitions; impairments of assets; gains or losses on extinguishment of debt; and acquisition-related costs. These items, which could materially affect the computation of forward-looking GAAP net income (loss), are inherently uncertain and depend on various factors, many of which are outside of our control. We have not provided a reconciliation of forecasted Adjusted EBITDA margin to net income (loss) margin, the most directly comparable GAAP financial measure, for the same reasons.

Adjusted EBITDA is a key metric used by our management and board of directors to measure operating performance and trends and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  
  
• Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation;
  
  
• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments;

• Adjusted EBITDA does not reflect impairment and restructuring costs;
  
  
• Adjusted EBITDA does not reflect acquisition-related costs;
  
  
• Adjusted EBITDA does not reflect gain (loss) on extinguishment of debt;
  
  
• Adjusted EBITDA does not reflect interest expense or other income, net;
  
  
• Adjusted EBITDA does not reflect income taxes; and
  
  
• Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently from the way we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net loss and our other GAAP results.

Adjusted EBITDA

The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods presented (in millions, unaudited)

		Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Reconciliation of Adjusted EBITDA to Net Loss:
Net loss		$          (52)		$          (73)		$        (112)		$        (158)
Income taxes		1		3		5		4
Other income, net		(26)		(43)		(127)		(151)
Depreciation and amortization		62		53		240		187
Share-based compensation		119		109		448		451
Impairment and restructuring costs		—		10		6		19
Acquisition-related costs		—		2		1		4
Loss (gain) on extinguishment of debt		—		(1)		1		(1)
Interest expense		8		9		36		36
Adjusted EBITDA		$          112		$            69		$          498		$          391

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SOURCE Zillow Group, Inc.

FAQ

What was Zillow's (Z) revenue growth in Q4 2024?

Zillow's Q4 2024 revenue grew 17% year-over-year to $554 million, exceeding the company's outlook by $21 million.

How much did Zillow (Z) lose in Q4 2024?

Zillow reported a net loss of $52 million in Q4 2024, with a net loss margin of 9%, improved from a $73 million loss in Q4 2023.

What was Zillow's (Z) mortgage revenue performance in Q4 2024?

Zillow's mortgages revenue increased 86% year-over-year to $41 million, with purchase loan origination volume up 90% to $923 million.

How much cash does Zillow (Z) have as of Q4 2024?

Zillow had $1.9 billion in cash and investments at the end of Q4 2024, down from $2.2 billion at the end of Q3.

What was Zillow's (Z) full-year 2024 revenue?

Zillow's full-year 2024 revenue was $2.2 billion, representing a 15% increase year-over-year.