Zillow Q4 Sales Rise 18% to $654M, EPS Beats; Shares Fall 5%
Zillow reported Q4 revenue of $654 million, up 18.1% year-over-year, beating Wall Street forecasts by 0.5%. GAAP EPS of $0.01 topped estimates by $0.03, but adjusted EBITDA of $149 million missed, driving shares down 5% on the quarter’s mixed results.
1. Q4 Financial Performance
Zillow delivered Q4 revenue of $654 million, marking an 18.1% increase year-over-year and exceeding analysts’ $650.5 million consensus by 0.5%. The company reported GAAP earnings of $0.01 per share versus an expected loss of $0.02, resulting in a $0.03 per-share beat.
2. Profitability and Margins
Adjusted EBITDA came in at $149 million, falling short of the $151.5 million estimate and translating to a 22.8% margin. Operating margin improved to –1.7% from –12.5% a year ago, while free cash flow margin contracted to 6.7% from 15.9%.
3. Market Reaction and Outlook
Shares declined 5% to $51.68 following the mixed earnings report. Analysts project 14.5% revenue growth and a 527% EPS increase to $0.09 over the next 12 months, reflecting confidence in Zillow’s newer services.