A newly-public Zillow.com made a profit for the first time ever last month with a net income of $1.6 million in the second quarter of this year. The company’s total revenue increased 116 percent over the second quarter of 2010[1]. The growth was driven by “marketplace revenue,” including subscription fees for real estate agents and advertising for mortgage lenders. Zillow CEO Spencer Rascoff called the Q2 of 2011 “outstanding,” although he added that the company is still “operating cautiously due to the struggling housing market.”
Zillow has taken a loss each quarter for the past three years despite the fact that revenues were growing[2]. Rascoff says he believes “we’ve only scratched the surface of our opportunity.”
Do you think that this is a good sign for Zillow long-term?
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[1] http://www.housingwire.com/2011/08/24/newly-public-zillow-swings-to-first-ever-profit
[2] http://www.washingtonpost.com/business/technology/zillows-q2-revenues-up-116-percent-to-a-record-158m-hits-profitability/2011/08/24/gIQAU5CNcJ_story.html
I don’t use it. However, some of my buyers do. It is very annoying and makes a lot of work for me. So much information is outdated. I am constantly asked to check on ‘this’ property (sold months ago) or why didn’t you show me “that property’ (sold or pending). I dislike the shortfalls. What I do like is the high prices that it shows people. It makes my job easier in that respct.