Tags: Zillow | real estate | loss | sales

Zillow Posts Second-Quarter Loss on Higher Costs; Sales Rise

Tuesday, 06 Aug 2013 08:41 PM

Zillow Inc., operator of the largest real-estate information website, fell more than 10 percent from a record after reporting a second-quarter loss on higher costs related to advertising and acquisition-related compensation.

The net loss for the period ending June 30 was $10.2 million, or 30 cents a share, compared with a profit a year earlier, the Seattle-based company said in a statement today. Excluding share-based compensation expenses, Zillow posted a profit of 1 cent, beating the average analysts’ forecast for a loss of 11 cents, according to data compiled by Bloomberg.

Zillow, which has seen its stock price more than triple this year, faces increased competition from Trulia Inc. and other providers of real-estate listings amid a U.S. housing-market recovery. Zillow has bought other companies to maintain growth and spending cash to diversify its products.

“They’re investing more aggressively in sales and brand advertising,” said Aaron Kessler, an analyst at Raymond James & Associates Inc. in San Francisco who rates the shares market perform, the equivalent of neutral. “That’s partially holding back better margins in the near-term, but these should improve going forward.”

Zillow declined as much as 10.7 percent to $81 in extended trading. The stock closed at $90.71 in New York, the highest since the initial public offering in July 2011.

Revenue climbed 69 percent to $46.9 million, compared with analysts’ prediction for $44.4 million on average. Zillow is forecasting sales of $186 million to $188 million this year, up from the previous outlook for $178 million to $182 million, Chief Financial Officer Chad Cohen said on a conference call.

The number of people visiting Zillow via its website and mobile devices reached a record of 61 million unique users in July, up 66 percent from a year earlier, the company said.

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Zillow Inc., operator of the largest real-estate information website, fell more than 10 percent from a record after reporting a second-quarter loss on higher costs related to advertising and acquisition-related compensation.
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2013-41-06
Tuesday, 06 Aug 2013 08:41 PM
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