Industry NewsTechnology

Unzipping ZipRealty’s IPO

Revenue growth levels impressive

ZipRealty has posted only two profitable quarters in its short history, but the company's bottom line was near break-even in the first quarter of this year and its growth since its inception in 1999 has been impressive. The future could hold as much as $69 million in IPO capital for brand-name advertising, expansion, technology and possibly acquisitions of other businesses, technologies and other assets. Or at least that's the outlook portrayed in the initial public stock offering registration statement the innovative brokerage company filed today with the Securities and Exchange Commission. Zip's revenues have grown from $4 million in 2001 to $17 million in 2002 and $34 million last year while losses shrunk from $13.8 million in 2001 and $14.8 million in 2002 to just $4.6 million last year. Closed transactions jumped from 850 in 2001 to 5,400 in 2003, and the average net revenue per transaction increased from $4,700 in 2001 to $6,000 in 2003, according to company's preliminary regist...