Industry News

ZipRealty plans expansion in down market

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ZipRealty Inc. plans to hire as many as 700 agents this year as it expands in eight to 12 markets including Denver and Jacksonville, but expects to post after-tax losses of between $6 million and $9 million to fund the effort. ZipRealty lost money from 2001 to 2003, first posting a profit of $3.2 million in 2004. Net income totaled $20.5 million in 2005. In releasing preliminary fourth quarter results and guidance for 2007 Thursday, the Emeryville, Calif.-based company said the expansion could boost revenue to $110 million, up from $93.4 million in 2005. The company reported it expects fourth quarter 2006 revenue will total $23 million, up from $21.6 million for the same quarter 2005. ZipRealty said it will spend $10 million to $13 million to expand in Denver, Jacksonville, Naples, Tucson, and four to eight other undisclosed markets. The company had previously announced it would move into six new markets in 2007. The accelerated growth plan will allow ZipRealty to achieve greater ...