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Zillow closed 2024 with a strong memo that increased revenue and slimming losses in the face of market headwinds and strengthening competition.
Revenue rose 17% year-on-year in the fourth quarter to $544 million. The growth spans the company’s individual segments, with mortgage originating volume increasing 90% to $923 million, bringing mortgage revenue to $41 million, up 86% from the previous year I did.
Zillow’s housing segment, including its Premier Agent program, rose 11% year-on-year to $387 million.
Revenue in Zillow’s sales segment, including mortgages and homes, rose 11% to $428 million. The rental segment also skyrocketed, with apartment complex revenues rising 25% to $116 million.
In addition to the increased revenue, Zillow was able to slim down its losses in the fourth quarter. The company’s net loss fell 28% a year to $52 million, with a net loss margin of 9%.
Jeremy Waxman | Credit: LinkedIn
“2024 has been a remarkable year for Zillow. We have achieved our annual targets, including double-digit revenue growth. We hope to maintain momentum in 2025.”
“The results we report today show how well we are implementing and seizing opportunities to transform and digitalize residential real estate. We are the leading brands in our category and the continuous growth of our continued growth. With a solid foundation for this year, we are pleased to serve more buyers, sellers, renters and real estate professionals.”
Echoing the latest arrival at Inman Connect New York, Wacksman focuses on Zillow sharpening integration between the portal’s product portfolio, making it a seamless, fun home view and home seller He said it could provide an experience. That “fun” experience is most reflected in Zillow’s enhanced market. This refers to a market with integrated real-time tours, Zillow home loans and premier agent experience.
“We shoot for fun. He told Inman over the phone before Tuesday’s revenue drop. “And we’re really excited by the progress we’re making in innovation in our customers. If you are an agent, those customer innovations should be handed over to higher intentional leads and higher intentional customers that you are ready to build your business. .”
“And you can think of that example with our fundraising solution, right? Earlier this year we launched what we call buyability, which gives us a personalized feeling of what we can buy. It’s a way that buyers manage to get it. It’s a way to get a sense of your budget and start that pre-approval process,” he added. “If you’re an agent and talk to someone who’s experienced purchasing potential, they’re more educated, they’re more intentional buyers, right? So the conversion rate for these types of customers will go up It should be.”
Wacksman said these types of customer innovations have appeared in Zillow’s rental segment, which has an active rental list of 1.9 million as of the end of 2024. , co-stars from an audience perspective.
“The multifamily segment is where there are a lot of experts and advertising budgets, so it has gained a lot of focus,” he said. “But if you’re a tenant, there are actually a lot more detached houses and small units than an apartment building, right? So Zillow set out to solve the tenant’s problem, meaning these How can I organize my rental list or as many rental lists as possible in one place? Because I don’t have an MLS for rentals.”
In a revenue call, Waxman said that annual sales in the rental market allow Zillow to connect with renters more frequently and enter the Zillow ecosystem, which includes tour scheduling, lease signing and rental payment management. I did.
“These things are fragmented offline in many places, and what tenants want is a one-stop shop,” he added. “So we’ve done it for the last, you know, for years. And it brought the biggest audience, right? Zillow Rentals is from a category tenant perspective. It’s the biggest audience. And it’s an expanded lead and the most powerful brand in terms of taste.”
Wacksman said Zillow’s rental push has led to impressive growth from the site’s multi-family advertisers, which has led to increased attention.
The company announced a new partnership with Redfin on Tuesday, syndicated Zillow rental lists on Redfin and its site, Rent.com and ApartmentGuide.com. As a result, Zillow Rentals Network includes seven sites including Realtor.com, HotPads, and Trulia. In 2024, Zillow grew to 37,000 to 50,000 multifamily properties on the platform, potentially reaching 140,000 properties nationwide.
“Redfin has an incredible audience of renters and buyers. That’s why we can work together to partner Redfin’s viewers, Zillow’s viewers and Realtor.com’s audience. “So now, multi-family Advertisers can sign up for ads and reach all of those brands and all of their tenants. More options for tenants.”
While 2025 is becoming a challenging year between tariffs, housing launches and affordability concerns, Zillow’s full year 2024 performance proves that the company can ride headwinds in flying colors I’m doing it.
In 2024, Zillow’s revenues rose 15% year-on-year to $2.2 billion, surpassing the increase in market trading volume (6%). Full-year net losses fell from $153 million to $112 million, with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from $391 million to $498 million has increased to. Revenues for Q4, mortgages (+51%), housing (+10%), rentals (+27%) and sales (+12%) increased double digits compared to 2023.
“It remains challenging for home buyers, home sellers and agents looking to grow their businesses, but what I say is, the good news is that there is still a movement going on,” he said. . “People are still moving and there is volatility throughout the year, so if the agent is working with the buyer and you can barely see movement in the rate, it’s an opportunity to lock it up and create that offer. ”
“What Zillow does is that those buyers and sellers are ready to go,” he added. “We are committed to education as our agents are ready to trade so that they can meet those customers, grow their business and find ways to share in this challenging market. I’m taking it and trying to get the funnel as much as possible.”
Email Marian McPherson
