Record revenues propel Zillow to profitability in Q2 

Image courtesy of procsilas.

In its first financial report after going public, real estate search and valuation site Zillow announced it hit profitability for the first time in the second quarter.

Zillow's net income for the quarter was $1.6 million, compared to net losses of $2 million in second-quarter 2010 and $800,000 in first-quarter 2011. Zillow posted $3.9 million in earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter -- the fourth straight quarter the company was in the black using that yardstick.

"The second quarter was outstanding for Zillow with record revenues, traffic and mobile usage," said Spencer Rascoff, Zillow's CEO, in a statement.

"We're extremely pleased with our progress and rapid growth, yet we believe we've only scratched the surface of our opportunity."

The company's total revenues jumped 116 percent year-over-year to a record $15.8 million in the second quarter, driven by a 269 percent jump in "marketplace revenues" to $9.7 million. Marketplace revenues include revenues from Zillow's Premier Agent program, which allows local real estate agents to purchase ads that appear alongside home profiles and home listings within each agent's ZIP code, and revenue collected from mortgage lenders that participate in the Zillow Mortgage Marketplace. Display-ad revenue grew by 30 percent year-over-year to $6.1 million.

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