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Zillow Group (ZG) Reports Narrower-Than-Estimated Loss in Q4

Zillow Group, Inc. ZG reported a loss of 42 cents per share in fourth-quarter 2021, which was narrower than the Zacks Consensus Estimate for a loss of $1.24. The company had reported earnings of 41 cents per share in the year-ago quarter.

Total revenues of $3,882.3 million soared 392% year over year. The top line beat the Zacks Consensus Estimate by 25.6%.

Zillow Group, Inc. Price, Consensus and EPS Surprise

Zillow Group, Inc. Price, Consensus and EPS Surprise
Zillow Group, Inc. Price, Consensus and EPS Surprise

Zillow Group, Inc. price-consensus-eps-surprise-chart | Zillow Group, Inc. Quote

Top-Line Details

Homes segment revenues were $3,348.3 million, up a whopping 1,001% year over year. Zillow Offers revenues were $3,336.7 million, skyrocketing 1,006% year over year. Other revenues amounted to $11.7 million compared with $2.4 million in the year-ago quarter.

Internet, Media & Technology (“IMT”) segment revenues increased 14% year over year to $483.2 million in the quarter. Premier Agent revenues totaled $353.8 million, up 13% year over year. Other revenues climbed 18% on a year-over-year basis to $129.4 million.

Mortgages segment revenues decreased 17% year over year to $50.8 million.

Key Metrics

Traffic to Zillow Group’s mobile apps and websites was almost flat year over year at 198 million average monthly users in the quarter. Visits were 2.3 billion, up 2% year over year.

Other Details

Gross profit increased 4.7% year over year to $467.1 million. Total operating expenses increased 85.3% year over year to $622 million. Total adjusted EBITDA was a negative $0.4 million in the quarter against an adjusted EBITDA of $169.9 million in the year-ago quarter.

As of Dec 31, 2021, cash and investments were $3.1 billion compared with $3.2 billion as of Sep 30, 2021.

Guidance

For the first quarter of 2022, Zillow Group expects total revenues between $3,123 million and $3,443 million. IMT segment revenues are expected to be $479-$494 million, with Premier Agent revenues between $358 million and $368 million. Homes revenues are expected between $2,600 million and $2,900 million. Mortgages revenues are anticipated to be $44-$49 million. Total adjusted EBITDA is expected between $124 million and $174 million.

Zacks Rank & Stocks to Consider

Zillow Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vocera Communications, Inc. VCRA is a better-ranked stock in the broader Zacks Computer and Technology sector that sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 6.2% over the past 60 days.

Vocera Communications has a trailing four-quarter earnings surprise of 109.6%, on average. The stock has returned 49.6% in the past year.

SeaChange International, Inc. SEAC carries a Zacks Rank #2 (Buy). The consensus estimate for current-year earnings has been revised upward by 10% over the past 60 days.

SeaChange International has a trailing four-quarter earnings surprise of 37.2%, on average. The stock has, however, declined 17.3% in the past year.

Qualcomm, Inc. QCOM, carrying a Zacks Rank #2, is another solid pick for investors. The consensus estimate for current-year earnings has been revised 0.7% upward over the past 60 days.

Qualcomm has a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 17.6% in the past year.


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