Zillow's 2Q net income falls 19 pct. On costs

Acquisition and other costs contribute to lower 2Q net income for real estate portal Zillow

Associated Press

SEATTLE (AP) -- Real estate information website operator Zillow Inc. said Tuesday that its net income fell about 19 percent in the second quarter, as acquisition-related costs and other expenses outpaced strong revenue gains.

Its shares tumbled nearly 10 percent in after-hours trading.

Zillow reported net income of $1.3 million, or 4 cents per share, for the three months ended June 30. That compares with $1.6 million, break-even on a per-share basis, in the year-ago quarter.

The latest results included $700,000 in costs related to Zillow's June acquisition of rental management software company RentJuice for $40 million. Total costs and expenses rose 70 percent to $26.5 million.

Analysts, on average, estimated earnings of 4 cents per share, according to FactSet. Analysts typically exclude one-time items.

Revenue jumped 75 percent to $27.8 million, up from $15.8 million a year earlier. That edged analysts' forecast of $27.1 million.

The revenue gains were fueled by strong sales increases in Zillow's marketplace and display segments. Marketplace revenue doubled to $19.6 million, while display revenue rose 33 percent to $8.1 million.

Zillow said its average monthly unique users grew 61 percent to 33.5 million during the quarter. Its roster of premier agent subscribers stood at 22,696 as of June 30, an increase of 70 percent from a year earlier.

Zillow expects third-quarter revenue of $30 million to $31 million. Wall Street has forecast $30.5 million.

Shares ended regular trading up $2.12, or 5.4 percent, at $41.76. The stock slid $4.01, or 9.6 percent, to $37.75 in after-hours trading.

Rates

View Comments (0)