AgentMarkets & Economy

Zillow’s focus on ‘super agents’ growing company revenue

The real estate portal reported its Q1 2016 earnings results
  • This quarter, average monthly revenue per agent advertiser stood at $487, up 40 percent year-over-year on a pro-forma basis.
  • Zillow Group's Q1 2016 total revenue was $185.9 million, rising from $169.4 million in the final quarter of 2015 and up 25 percent year-over-year on a pro forma basis.
  • Total costs and expenses this quarter totaled $234 million, leaving a deficit of $48 million.
  • For 2016 in its entirety, revenue is predicted to be between $825 and $835 million, up from $805 million to $815 million.

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A budget in the red and ongoing legal battle didn't seem to outshine the onslaught of bright new products and advertising efforts that defined Zillow Group's entrance into the year of 2016. The message CEO Spencer Rascoff and CFO Kathleen Philips gave during the company's earnings report was one of confidence and in line with their vision for a long-haul trajectory -- massive waves of traffic and market growth that more than make-up for hiccups along the way. Time will tell. Last year, Zillow Group highlighted its shifting emphasis toward "super agents" (often teams who spend at least $60,000 annually) and away from part-timers, a strategy reflecting the natural market demand from consumers who expect five-star, 24/7 service. As a result, over the course of 2015 Zillow Group's total number of agent advertisers steadily declined from approximately 102,000 in Q2 2015 to 92,366 as of December 31, 2015. However, the average monthly revenue per advertiser (ARPA) rose 29 percent f...