ZipRealty posts double-digit drop in revenue in 1Q

Real estate brokerage and referral network ZipRealty posted a 12 percent decrease in revenue in the first three months of the year, to $13.6 million. The company saw a net loss of $2.9 million compared with $2.2 million in first-quarter 2013.

ZipRealty’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at -$1.9 million, down from -$1.3 million in the same period a year ago.

Nonetheless, Lanny Baker, ZipRealty’s president and CEO, said in a statement, “ZipRealty’s first-quarter 2014 financial results were better than we anticipated on both revenue and adjusted EBITDA. We are now focused on returning to a growth mode later this year.”

He added that the real estate markets the company serves “continue to be variable and transaction volumes have been lower year to date.”

The company reported a 13 percent increase in ZipRealty agents from March 2013, to 1,745, and a 28 percent increase in agents belonging to its “Powered by Zip” network, to 615, from 479 in first-quarter 2013.

ZipRealty listed the launch of the subscription-based, white-labeled version of its Powered by Zip platform for brokers among its major milestones for the first quarter of this year. The company announced the launch today.

Source: ZipRealty


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