According to Zillow’s latest earnings report, the company’s full year consolidated revenue increased 158 percent year-over-year, culminating in a record $943.9 million that surpassed the $810 million expected by analysts. Zillow’s full-year consolidated revenue more than doubled year-over-year to $2.7 billion, and the real estate company ended 2019 with $2.4 billion in cash, cash equivalents and investments after posting a $0.26 loss—a win over the predicted -$0.30.
Following the release of its earnings report on Wednesday, Feb. 19, Zillow Group Inc. shares gained more than 8 percent in after-hours trading, closing at a 53-week high of $54.47, according to MarketWatch.
What’s driving these numbers? Zillow’s Premier Agent continued on its path of accelerated growth in the fourth quarter, ending the year with $923.9 million in revenue, compared to $898.3 million in 2018—a 3 percent increase. Its Rentals segment, however, saw the biggest increase at 22 percent, up from $134.6 million in 2018 to $164.1 million in revenue for 2019.
“Our Premier Agent business is solid, and we have started 2020 with some of the best retention rates we’ve seen in recent history,” said Rich Barton, Zillow’s CEO and co-founder, in a statement.
Zillow Offers, the company’s iBuyer arm, continues expanding, adding to the company’s revenue growth—the company stepped into the Los Angeles market in December, bringing the service to a total of 23 markets. In Q4 of 2019, Zillow Offers sold 1,902 homes and purchased 1,787, ending with an inventory surplus of 2,707 homes. The “Homes” segment, brought in the most revenue in Q4, increasing by 1.4 percent since 2018 to $603.2 million.
“In all, I’d characterize 2019 as tumultuously remarkable,” said Barton. “We’re in the midst of a multi-year expansion to rewire real estate transactions and streamline how our customers buy, sell, rent and borrow that dramatically expands our market opportunity and profit potential. Our team’s strong execution delivered record Q4 and full-year results that beat our outlook on every measure.”