Zillow Group’s Financials Discussed in Morgan Stanley Technology, Media & Telecom Conference Call
On March 5, 2025, at 1:45 PM ET, the Zillow Group, Inc. (NASDAQ: Z) held a conference call with Morgan Stanley as part of their Technology, Media & Telecom Conference. The call was attended by Jeremy Hofmann, the Chief Financial Officer of Zillow Group, and Brian Nowak, a Morgan Stanley analyst. During the call, Hofmann provided insightful updates on the company’s financial performance and future plans.
Financial Performance
Hofmann began by discussing the company’s strong financial performance in the previous quarter. He reported a revenue growth of 16% year-over-year, driven primarily by the Zillow Offers business, which recorded a 35% increase in homes bought and sold. The company’s operating income also grew by 17% year-over-year, and its adjusted EBITDA increased by 20%.
Future Plans
Next, Hofmann discussed the company’s plans for the future. He highlighted the continued growth of Zillow Offers, which is expected to contribute significantly to the company’s revenue growth in the coming quarters. He also mentioned the expansion of the company’s iBuyer program, Instant Offers, into new markets, and the launch of a new rental platform, Zillow Rentals.
Impact on Consumers
The conversation then turned to the impact of Zillow’s growth on consumers. Hofmann emphasized the company’s commitment to providing a seamless home buying and selling experience. He explained that Zillow Offers allows homeowners to sell their homes quickly and with certainty, while also providing them with the option to buy a new home before selling their old one. He also discussed the benefits of Zillow Rentals, which offers a wide selection of rental listings and a user-friendly platform for renters and property managers.
Impact on the Real Estate Industry
Brian Nowak, the Morgan Stanley analyst, asked about the impact of Zillow’s growth on the real estate industry. Hofmann responded by emphasizing the company’s role as a disruptor in the industry. He explained that Zillow is leveraging technology to make the home buying and selling process more efficient and convenient for consumers. He also mentioned that the company’s iBuyer program is helping to address the inventory shortage in the housing market by providing homeowners with a fast and certain way to sell their homes.
Impact on Traditional Real Estate Agents
Nowak also asked about the impact of Zillow’s growth on traditional real estate agents. Hofmann acknowledged that the company’s iBuyer program could potentially disrupt the traditional real estate agent model. However, he emphasized that Zillow is not looking to replace agents entirely. Instead, the company is looking to provide consumers with more choices and options in the home buying and selling process.
Conclusion
In conclusion, the Zillow Group’s conference call with Morgan Stanley provided valuable insights into the company’s financial performance and future plans. The company’s strong financial results, driven by the growth of Zillow Offers, demonstrate the success of the company’s business model. The launch of Zillow Rentals and the expansion of Instant Offers into new markets also point to continued growth in the coming quarters. The impact of Zillow’s growth on consumers and the real estate industry is significant, and the company’s commitment to providing a seamless home buying and selling experience is likely to continue disrupting the traditional real estate market.
- Zillow Group reported strong financial performance in the previous quarter
- Revenue grew by 16% year-over-year, driven by Zillow Offers
- Operating income and adjusted EBITDA also grew
- Future plans include continued growth of Zillow Offers and the launch of Zillow Rentals
- Zillow Offers allows homeowners to sell their homes quickly and with certainty
- Zillow Rentals offers a wide selection of rental listings and a user-friendly platform for renters and property managers
- Zillow’s growth could potentially disrupt the traditional real estate agent model
