“Zillow has about a 5 percent wallet share of what agents spend on advertising,” said Zillow Group CEO Spencer Rascoff in an investor call held at 5 p.m. EDT on Tuesday.

“We ought to be able to increase that quite significantly in the next several years,” he added.

Expanding real estate advertising business is one of four top priorities for Zillow Group this year, said Rascoff.

Zillow Group reported that 63 percent of new advertising sales booked in the first quarter of 2015 represented existing agent advertisers who were purchasing more impressions.

Chad Cohen, Zillow Group’s chief financial officer, also reported a 20 percent overlap between Zillow and Trulia advertisers and an average revenue per advertiser of $354 in this year’s first quarter. The total number of agent advertisers (representing both Zillow and Trulia advertisers) was reported as 103,415.

Overall, the company’s financials appeared robust and healthy, with a GAAP (generally accepted accounting principles) total first-quarter 2015 revenue of $127.3 million.

That includes $6.1 million in revenue since the Zillow-Trulia merger from Trulia’s Market Leader. The pro forma revenue results, which are adjusted as though Zillow acquired Trulia in January 2014 instead of February 2015 in order to provide a more comparable year-over-year analysis, report Market Leader revenue at $13.6 million in first-quarter 2015 — down 11 percent from $15.3 million in first-quarter 2014.

Cohen said that Market Leader was one of the “primary drivers of the softening in revenue.”

Cohen also said that Zillow Group would be focusing on Market Leader operations and “evaluating its place.”

Industry insiders tell Inman that company support for the product has been trimmed by Zillow Group and that many of its customers are on the hunt for alternatives. Rascoff has also consistently stated that the online real estate company is a media firm, not an enterprise software company.

On the investor call, Rascoff said that the company is “on track to meet pro forma goals” and will focus on four priorities this year: extracting “significant benefits” from the Trulia acquisition; growing the Zillow Group audience; growing the real estate advertising business; and growing emerging marketplaces.

Rascoff estimated the firm will spend approximately $100 million this year to grow its audience.

Zillow Group sent the following table in a press release preceding the investor call; the table summarizes Zillow Group’s consolidated first-quarter actual results and the analyst consensus estimates:

Analyst Consensus Estimates
First quarter of 2015 Zillow Group Bloomberg FactSet
Total revenue $127.3 mil $129.1 mil $127.8 mil
Adjusted EBITDA $16.7 mil $8.1 mil $8.2 mil
Non-GAAP net income per share (diluted) $0.05 ($0.12) ($0.11)

Email Amber Taufen.

Editor’s note: This story has been updated to correct a quote misattributed to R.J. Jones; Spencer Rascoff made the statement. Industry insider information has also been added.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Las Vegas Memorial Day sale – 44% off exclusively for Select subscribers!Register Now To Save×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription