Zillow (ZG) Beats Revenue Estimates in Q4 CY2024, Misses Guidance
Company Overview:
Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace, founded by Expedia co-founders Lloyd Frink and Rich Barton.
Q4 CY2024 Highlights:
* Revenue: $554 million (16.9% YoY growth, 1.2% beat)
* Adjusted EPS: $0.27 (in line)
* Adjusted EBITDA: $112 million (20.2% margin, 3.9% beat)
* Revenue Guidance for Q1 CY2025: $582.5 million (midpoint), below analyst estimates of $600.2 million
* EBITDA Guidance for Q1 CY2025: $132.5 million (midpoint), below analyst estimates of $160.1 million
Sales Growth:
* Over the last two years, Zillow's annualized revenue growth is 6.9%, above its five-year trend but still below expectations.
* This quarter, Zillow reported YoY revenue growth of 16.9% and exceeded Wall Street estimates by 1.2%.
Cash Performance:
* Zillow's free cash flow margin averaged 12.1% over the last two years.
* In Q4, free cash flow was $88 million, equivalent to a 15.9% margin, an improvement from the same quarter last year.
Analysts' Consensus:
* Sell-side analysts expect Zillow's revenue to grow 14.3% over the next 12 months.
* They predict Zillow's free cash flow margin will improve from 12.7% to 21.5% in the next year.
Key Takeaways:
* Zillow beat revenue and EBITDA estimates but missed guidance.
* Long-term fundamentals and valuation are crucial factors in determining whether Zillow is a buy.
* Access our full research report for an in-depth analysis of Zillow's Q4 results and investment potential.