Zillow Announces Shakeup, Q4 Sales

Zillow Group Inc (NASDAQ:ZG) reported upbeat sales for its fourth quarter and issued strong sales forecast for the first quarter.

The Seattle-based company, which houses a portfolio of the largest and most vibrant real estate and home-related brands on mobile and the web, today announced its consolidated financial results for the quarter and full year ended December 31, 2018.

Fourth-quarter total revenue of $365.3 million was up 29% year-over-year, driven primarily by growth in Premier Agent revenue and the addition of Homes revenue. On a consolidated basis, GAAP net loss for the fourth quarter of 2018, including a non-cash impairment charge, was $97.7 million, or 27% of revenue, and Adjusted EBITDA2 was $32.4 million, or 9% of revenue.

For the full-year 2018, Zillow Group reported total revenue of more than $1.3 billion, up 24% year-over-year. On a consolidated basis, GAAP net loss for the year, including a non-cash impairment charge, was $119.9 million, or 9% of revenue, and Adjusted EBITDA was $200.8 million, or 15% of revenue.

The company also disclosed that its CEO Spencer Rascoff is stepping down. Zillow named co-founder and former CEO Rich Barton as CEO.

Said Barton, "We’re making strategic investments to broaden the Zillow Group portfolio to move further down the home-shopping funnel, giving today’s ‘uberized,’ on-demand consumers a full spectrum of options to buy, sell, borrow and rent on their terms."

Shares vaulted $4.34, or 12.4%, to $39.40