Zillow Group Inc (NASDAQ:Z) (NASDAQ:ZG) is trading higher Friday morning after the company announced strong fourth-quarter financial results.
Zillow reported quarterly revenue of $3.88 billion, which beat the $2.78 billion estimate.
Internet, media and tech revenue grew 14% year-over-year to $483 million and mortgage revenue came in at $51 million for the quarter.
Homes segment revenue totaled $3.3 billion, which "well exceeded the company's outlook as the wind-down of iBuying operations progressed faster than anticipated," Zillow said.
Zillow had 198 million average monthly unique users on its website and app during the fourth quarter.
"In 2021, we estimate that nearly one-quarter of all buyers in the U.S. reached out to connect with Zillow during their shopping process, yet we only generated revenue on an estimated 3% of total customer transactions," said Rich Barton, co-founder and CEO of Zillow.
"We're investing aggressively in innovations that help both buyers and sellers by delivering an integrated set of tech-enabled solutions on our 'housing super app' along with our excellent partners."
Zillow said it expects first-quarter revenue to be about $3.3 billion. The company also said it now expects the impact from the wind-down of its home-flipping business to be cash-flow positive.
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Z Price Action: Zillow has traded as low as $44.79 and as high as $208.11 over a 52-week period.
The stock was up 13.3% at $48.79 at time of publication.
Photo: courtesy of Zillow.
