Zillow Inc. (Z – Snapshot Report) reported first-quarter fiscal 2015 adjusted loss per share (excluding all one-time items but including stock based compensation expenses) of 42 cents, wider than the Zacks Consensus Estimate of a loss of 38 cents. Adjusted loss also widened from the year-ago loss of 16 cents per share.
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Quarter Details
Revenues surged 92.1% year over year to $127.3 million but lagged the Zacks Consensus Estimate of $142 million.
The significant year-over-year increase was primarily due to the Trulia acquisition. Also, a 102.8% surge in Marketplace revenues and a 46.5% jump in Display revenues to $108.9 million and $18.3 million, respectively, drove the quarter’s results.
Within Zillow’s Marketplace segment, Real Estate marketplace (consists of Premier Agent, Diverse Solutions, Rentals and StreetEasy product lines) revenues soared 100% year over year to $93.3 million driven by strong agent additions.
Mortgages marketplace revenues increased 34.1% to $9.6 million and the division received approximately 13 million loan requests.
Moving to the operating results, Zillow’s operating expenses were up 95.3% year over year to $134.6 million, primarily due to 68.7%, 123% and 158.7% increase in sales & marketing, technology and development and general and administrative expenses, respectively. As a percentage of revenues, operating expenses increased 169 basis points on a year-over-year basis
Zillow’s operating loss per share came in at $57.9 million compared with a loss of $6.5 million in the year-ago quarter. Adjusted net loss (excluding all one-time items but including stock based compensation expenses) was $20.8 million as against net loss of $6.3 million in the comparable quarter last year.
Zillow exited the first quarter with $628.4 million in cash & cash equivalents and short-term investments compared with $372.6 million in the previous quarter. The company has long-term debt of $230 million. Cash flow from operations during the quarter came in at $1.5 million.
Guidance
For the second quarter of 2015, Zillow expects revenues in the range of $168 to $169 million, while the Zacks Consensus Estimate is pegged at $171 million. EBITDA is expected in the range of $3.5 to $4.5 million.
