Business

Zillow Neighborhood Reports First-Quarter 2021 Monetary Results

SEATTLE, Would possibly well simply 4, 2021 /PRNewswire/ — Zillow Neighborhood, Inc. (NASDAQ: Z and ZG), which is reworking the methodology of us take, sell, hire and finance homes, nowadays announced its consolidated financial results for the three months ended March 31, 2021.


Zillow Group logo, April 2019 (PRNewsfoto/Zillow Group)

Total financial results, and outlook for the 2d quarter of 2021, might well even be found in the firm’s shareholder letter on the Investor Household part of Zillow Neighborhood’s net screech at https://traders.zillowgroup.com/traders/financials/quarterly-results/default.aspx.

“Zillow’s first-quarter results exceeded expectations and showed our momentum in direction of turning in a seamless, pause-to-pause staunch property transaction,” stated Zillow Neighborhood co-founder and CEO Rich Barton. “Across the nation, Millennials are fascinating up, Toddler Boomers are downsizing, and in between, of us of all generations are rethinking their lives in a cultural phenomenon we have termed the Colossal Reshuffling. Thousands and hundreds come to Zillow to surf and dream, and after they are fascinating to transact, they would possibly be able to acquire a mortgage from Zillow Home Loans, connect to a Zillow Premier Agent, and can simply even acquire an initial supply from Zillow Affords to take their home for his or her Zestimate.”

Most modern highlights encompass:

  • Consolidated first-quarter income of $1.2 billion and income for every section exceeded the excessive pause of the firm’s outlook for the first quarter.
  • Consolidated bring together profits used to be $52 million for the first quarter. Segment profits (loss) earlier than profits taxes used to be $144 million, $(58) million and $(2) million for the IMT, Properties and Mortgages segments, respectively, for the first quarter.
  • First-quarter Adjusted EBITDA exceeded the excessive pause of the firm’s outlook for all three segments, ensuing in consolidated Adjusted EBITDA of $181 million.
  • Web screech traffic to Zillow Neighborhood’s cell apps and net sites in the first quarter reached 221 million moderate month-to-month outlandish users, an amplify of 15% 300 and sixty five days over 300 and sixty five days, driving 2.5 billion visits right by the quarter, up 19% 300 and sixty five days over 300 and sixty five days.
  • The firm ended the first quarter of 2021 with cash and investments of $4.7 billion.

First Quarter 2021 Monetary Highlights

The next table items forth Zillow Neighborhood’s financial highlights for the sessions presented (in hundreds, unaudited):


Three Months Ended

March 31,


2020 to 2021

% Alternate


2021


2020


Earnings:






Properties section:






     Zillow Affords

$

700,974



$

769,112



(9)%

     Other (1)

3,178



761



318%

Total Properties section income

704,152



769,873



(9)%

IMT section:






     Premier Agent

334,318



242,106



38%

     Other (2)

112,010



88,560



26%

Total IMT section income

446,328



330,666



35%

Mortgages section

67,960



25,282



169%

Total income

$

1,218,440



$

1,125,821



8%

Other Monetary Files:










Earnings (loss) earlier than profits taxes:










     Properties section

$

(58,474)



$

(97,958)




     IMT section

143,575



(41,507)




     Mortgages section

(1,820)



(13,145)




     Corporate items (3)

(34,207)



(19,891)




Total profits (loss) earlier than










 profits taxes

$

49,074



$

(172,501)

Procure profits (loss)

$

51,964



$

(163,273)




Adjusted EBITDA (4):










     Properties section

$

(33,948)



$

(74,995)




     IMT section

208,583



85,717




     Mortgages section

6,347



(5,603)




Total Adjusted EBITDA

$

180,982



$

5,119




Percentage of Earnings:










Earnings (loss) earlier than profits taxes:










     Properties section

(8)%



(13)%




     IMT section

32%



(13)%




     Mortgages section

(3)%



(52)%




     Corporate items (3)

N/A



N/A




Total profits (loss) earlier than profits taxes

4%



(15)%




Procure profits (loss)

4%



(15)%




Adjusted EBITDA:








     Properties section

(5)%



(10)%




     IMT section

47%



26%




     Mortgages section

9%



(22)%




Total Adjusted EBITDA

15%



—%





(1) Other Properties section income pertains to income associated with the title and escrow companies and products equipped by Zillow Closing Products and companies.

(2) Other IMT section income involves income generated by leases, novel building and demonstrate marketing, moreover income from the sale of reasonably just a few completely different marketing and commercial technology solutions for staunch property mavens, including dotloop.

(3) Certain company items are one plot or the opposite attributable to any of our segments, including the loss on extinguishment of debt, pastime profits earned on our non eternal investments included in completely different profits and pastime charges on our convertible senior notes included in pastime expense.

(4) Adjusted EBITDA is a non-GAAP financial measure; it is miles now not calculated or presented in step with U.S. on the total permitted accounting principles, or GAAP. Learn about below for extra files relating to our presentation of Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to the most in an instant comparable GAAP financial measure, which is bring together profits (loss) on a consolidated basis and profits (loss) earlier than profits taxes for every section, for every of the sessions presented.

Conference Call and Webcast Files

Zillow Neighborhood co-founder and CEO Rich Barton and CFO Allen Parker will host a reside conference call to chat in regards to the implications nowadays at 2 p.m. Pacific Time (5 p.m. Eastern Time). A shareholder letter and link to both the reside webcast and recorded replay of the decision can also very neatly be accessed on the Quarterly Results part of Zillow Neighborhood’s Investor Household net screech. Contributors must register for the reside call upfront at: https://dpregister.com/sreg/10155301/e727098685 to acquire emailed instructions. This pre-registration course of is designed to sever attend delays because of operator congestion when getting access to the reside call.

Forward-Having a learn about Statements

This press beginning contains forward-taking a learn about statements right by the which methodology of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, with out limitation, statements relating to the prolonged scurry performance and operation of our commercial and the present and future neatly being and steadiness of the residential housing market and financial system and our expectations relating to future shifts in habits by buyers and staff. Statements containing phrases similar to “can also simply,” “imagine,” “depend on,” “query,” “intend,” “idea,” “project,” “predict,” “will,” “projections,” “continue,” “estimate,” “outlook,” “guidance,” “would,” “might perchance,” or identical expressions constitute forward-taking a learn about statements. Forward-taking a learn about statements are made per assumptions as of Would possibly well simply 4, 2021, and even supposing we imagine the expectations mirrored in the forward-taking a learn about statements are less dear, we can not snort these results. Differences in Zillow Neighborhood’s staunch results from those described in these forward-taking a learn about statements can also simply pause up from actions taken by Zillow Neighborhood moreover from risks and uncertainties beyond Zillow Neighborhood’s adjust.

Components that can contribute to such differences encompass, but are now not minute to, the impact of the COVID-19 pandemic or completely different public neatly being crises and any associated financial downturn on Zillow Neighborhood’s future financial pronounce, operations and financial performance; the magnitude, duration and severity of the COVID-19 pandemic and the availability and novel distribution and utilize of effective vaccines; the impact of actions taken by governments, companies and participants in accordance with the COVID-19 pandemic, including changes in regulations or rules that limit our capacity to purpose; the present and future neatly being and steadiness of the financial system, financial prerequisites and residential housing market, including any extended slowdown in the staunch property markets due to the the COVID-19 pandemic, changes in regulations or rules appropriate to our commercial, staff, companies and products or merchandise, including present and future regulations, rules and orders that limit Zillow Neighborhood’s capacity to purpose in gentle of the COVID-19 pandemic; the pleasure of prerequisites precedent to the closing of Zillow Neighborhood’s proposed acquisition of ShowingTime.com, Inc., including expiration or termination of the appropriate waiting duration below the Hart-Scott-Rodino Act; changes in novel financial and financial prerequisites that sever attend question for our merchandise and companies and products, decrease our profitability or sever attend Zillow Neighborhood’s acquire entry to to credit rating; staunch or anticipated fluctuations in our financial situation and results of operations; changes in projected operational and financial results; addition or lack of worthy customers; staunch or anticipated changes in Zillow Neighborhood’s growth rate relative to that of our opponents; acquisitions, strategic partnerships, joint ventures, capital-raising activities or completely different company transactions or commitments by us or our opponents; staunch or anticipated changes in technology, merchandise, markets or companies and products by us or our opponents; capacity to acquire or attend licenses and permits to make stronger Zillow Neighborhood’s present and future companies; capacity to conform with MLS rules and requirements to acquire entry to and utilize record files, and to attend or set relationships with listings and knowledge suppliers; capacity to purpose Zillow Neighborhood’s mortgage originations commercial, including the capacity to acquire ample financing; fluctuations in the valuation of companies perceived by traders to be identical to Zillow Neighborhood; the impact of natural failures and completely different catastrophic events; the impact of pending or future litigation; and the issuance of novel or updated evaluate or studies by securities analysts.

The foregoing record of risks and uncertainties is illustrative but now not exhaustive. For added information about doable factors that can impact Zillow Neighborhood’s commercial and financial results, please review the “Possibility Components” described in Zillow Neighborhood’s Annual Chronicle on Make 10-K for the 300 and sixty five days ended December 31, 2020. Excluding as can also very neatly be required by legislation, Zillow Neighborhood does now not intend and undertakes no responsibility to replace this files to repeat future events or conditions.

Expend of Non-GAAP Monetary Measures

To produce traders with further files relating to our financial results, this press beginning involves references to Adjusted EBITDA in total and for every section, every a non-GAAP financial measure. Now we have gotten equipped a reconciliation below of Adjusted EBITDA in total to bring together profits (loss) and Adjusted EBITDA by section to profits (loss) earlier than profits taxes for every section, the most in an instant comparable GAAP financial measures.

Adjusted EBITDA is a key metric frail by our administration and board of directors to measure working performance and trends and to prepare and approve our annual rate range. In screech, the exclusion of creep charges in calculating Adjusted EBITDA facilitates working performance comparisons on a duration-to-duration basis.

Our utilize of Adjusted EBITDA in total and for every section has limitations as an analytical instrument, and likewise you ought to now not put in mind these measures in isolation or as an different for diagnosis of our results as reported below GAAP. Heaps of these limitations are:

  • Adjusted EBITDA does now not replicate our cash expenditures or future requirements for capital expenditures or contractual commitments;
  • Adjusted EBITDA does now not replicate changes in, or cash requirements for, our working capital wants;
  • Adjusted EBITDA does now not put in mind the presumably dilutive impact of portion-primarily based mostly compensation;
  • Even supposing depreciation and amortization are non-cash charges, the sources being depreciated and amortized can also simply ought to acquire replaced in due course, and Adjusted EBITDA does now not replicate cash capital expenditure requirements for such replacements or for novel capital expenditure requirements;
  • Adjusted EBITDA does now not replicate impairment charges;
  • Adjusted EBITDA does now not replicate acquisition-linked charges;
  • Adjusted EBITDA does now not replicate the loss on extinguishment of debt;
  • Adjusted EBITDA does now not replicate pastime expense or completely different profits;
  • Adjusted EBITDA does now not replicate profits taxes; and
  • Other companies, including companies in our possess replace, can also simply calculate Adjusted EBITDA in any other case than we attain, limiting its usefulness as a comparative measure.

Which potential that of of these limitations, you ought to place in mind Adjusted EBITDA in total and for every section alongside completely different financial performance measures, including reasonably just a few cash circulation metrics, bring together profits (loss), profits (loss) earlier than profits taxes for every section and our completely different GAAP results.

About Zillow Neighborhood, Inc.

Zillow Neighborhood, Inc. (NASDAQ: Z and ZG) is reimagining staunch property to acquire it more uncomplicated to unlock existence’s subsequent chapter.

As the most-visited staunch property net screech in the US, Zillow® and its affiliates supply customers an on-question abilities for promoting, buying, renting or financing with transparency and nearly about seamless pause-to-pause service. Zillow Affords® buys and sells homes in an instant in dozens of markets right by the nation, permitting sellers adjust over their timeline. Zillow Home Loans™, our affiliate lender, affords our customers with a easy solution to acquire pre-accredited and stable financing for his or her subsequent home in finding. Zillow now not too prolonged previously launched  Zillow Properties, Inc., a licensed brokerage entity, to streamline Zillow Affords transactions.

Zillow Neighborhood’s brands, affiliates and subsidiaries encompass Zillow®; Zillow Affords®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Products and companies™; Zillow Properties, Inc.; Trulia®; Out East®; StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

Please consult with http://traders.zillowgroup.com, www.zillowgroup.com/ir-blog, and www.twitter.com/zillowgroup, where Zillow Neighborhood discloses files in regards to the firm, its financial files, and its commercial that can even very neatly be deemed area matter.

The Zillow Neighborhood logo is obtainable at http://zillowgroup.mediaroom.com/emblems-images.

(ZFIN)

Adjusted EBITDA

The next tables present a reconciliation of Adjusted EBITDA to the most in an instant comparable GAAP financial measure, which is bring together profits (loss) on a consolidated basis and profits (loss) earlier than profits taxes for every section, for every of the sessions presented (in hundreds, unaudited):


Three Months Ended

March 31, 2021


Properties


IMT


Mortgages


Corporate

Objects (2)


Consolidated

Reconciliation of Adjusted EBITDA to Procure Earnings and Earnings (Loss) Forward of Earnings Taxes:










Procure profits (1)

N/A


N/A


N/A


N/A


$       51,964

Earnings tax profit

N/A


N/A


N/A


N/A


(2,890)

Earnings (loss) earlier than profits taxes

$    (58,474)


$     143,575


$      (1,820)


$     (34,207)


$       49,074

Other profits



(1,732)


(707)


(2,439)

Depreciation and amortization expense

4,293


22,799


1,807



28,899

Section-primarily based mostly compensation expense

15,921


41,392


6,360



63,673

Acquisition-linked charges


817




817

Loss on extinguishment of debt




1,403


1,403

Passion expense

4,312



1,732


33,511


39,555

Adjusted EBITDA

$    (33,948)


$     208,583


$       6,347


$              —


$     180,982



















Three Months Ended

March 31, 2020


Properties


IMT


Mortgages


Corporate

Objects (2)


Consolidated

Reconciliation of Adjusted EBITDA to Procure Loss and Loss Forward of Earnings Taxes:










Procure loss (1)

N/A


N/A


N/A


N/A


$    (163,273)

Earnings tax profit

N/A


N/A


N/A


N/A


(9,228)

Loss earlier than profits taxes

$     (97,958)


$     (41,507)


$     (13,145)


$     (19,891)


$    (172,501)

Other profits



(202)


(9,391)


(9,593)

Depreciation and amortization expense

3,575


23,777


1,674



29,026

Section-primarily based mostly compensation expense

11,304


29,547


2,944



43,795

Impairment charges


73,900


2,900



76,800

Passion expense

8,084



226


29,282


37,592

Adjusted EBITDA

$     (74,995)


$      85,717


$       (5,603)


$              —


$          5,119


(1) We utilize profits (loss) earlier than profits taxes as our profitability measure in making working choices and assessing the performance of our segments, therefore, bring together profits (loss) and profits tax profit are calculated and presented most efficient on a consolidated basis internal our financial statements.

(2) Certain company items are one plot or the opposite attributable to any of our segments, including the loss on extinguishment of debt, pastime profits earned on our non eternal investments included in completely different profits and pastime charges on our convertible senior notes included in pastime expense.

SOURCE Zillow Neighborhood

For further files: Contacts: Brad Berning, Investor Household, [email protected], or Emily Heffter, Public Household, [email protected]

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