February 8, 2018 at 4:05 PM EST

Zillow Group Reports Fourth Quarter and Full Year 2017 Results

  • Achieved full year 2017 record Revenue of nearly $1.1 billion, up 27% year-over-year.  
  • Fourth quarter record Revenue of $282.3 million, up 24% year-over-year. 
  • More than 151 million average monthly unique users visited Zillow Group brands' mobile apps and websites during the fourth quarter of 2017.
  • Visits to Zillow Group brands' mobile apps and websites increased 21% year-over-year to more than 1.4 billion in the fourth quarter of 2017.

SEATTLE, Feb. 08, 2018 (GLOBE NEWSWIRE) -- Zillow Group, Inc. (NASDAQ:Z) (NASDAQ:ZG), which houses a portfolio of the largest and most vibrant real estate and home-related brands on mobile and the web, today announced its consolidated financial results for the quarter and full year ended December 31, 2017.

Zillow Group FY 2017 Earnings Highlights
  Zillow Group FY 2017 Earnings Highlights

 

"Zillow Group had another fantastic year of record results in 2017 and exceeded $1 billion in revenue for the first time," said Zillow Group CEO Spencer Rascoff. "We successfully transitioned advertisers to an auction-based pricing model, launched RealEstate.com, and continued to grow our emerging marketplaces, including two strategic acquisitions. We believe the next phase of our company's evolution will make Zillow Group an even more meaningful part of the home-shopping experience. In 2018, we plan to deliver better experiences for consumers buying, selling or renting a home, and strengthen our partnerships with real estate professionals by aligning our growth with their success."

Fourth Quarter 2017 Financial Highlights

•  Revenue increased 24% to a record $282.3 million from $227.6 million in the fourth quarter of 2016.

  • Marketplace Revenue increased 26% to $265.6 million from $210.6 million in the fourth quarter of 2016.
    •  Premier Agent Revenue increased 21% to $199.5 million from $164.3 million in the fourth quarter of 2016.
    •  Other Real Estate Revenue1 increased 60% to $47.6 million from $29.8 million in the fourth quarter of 2016.
    •  Mortgages Revenue increased 12% to $18.5 million from $16.5 million in the fourth quarter of 2016.
  • Display Revenue decreased 1% to $16.7 million from $17.0 million in the fourth quarter of 2016, consistent with the company's strategy to deemphasize display advertising in the user experience and instead focus on growth in marketplace revenue.

•  GAAP net loss was $77.2 million in the fourth quarter of 2017, or (27)% of Revenue, which includes the impact of a $174.0 million non-cash impairment charge recorded in connection with Trulia's trade names and trademarks indefinite-lived intangible asset, compared to GAAP net loss of $23.5 million in the fourth quarter of 2016, or (10)% of Revenue.

•  Adjusted EBITDA was $70.9 million in the fourth quarter of 2017, or 25% of Revenue, which was an increase from $54.7 million in the fourth quarter of 2016, or 24% of Revenue.

1 Other Real Estate Revenue primarily includes revenue generated by Zillow Group Rentals and New Construction, as well as revenue from the sale of various other advertising and business software solutions.

Full Year 2017 Financial Highlights

•  Revenue increased 27% to a record $1,076.8 million from $846.6 million in 2016.

  • Marketplace Revenue increased 29% to $1,007.2 million from $778.1 million in 2016.
    •  Premier Agent Revenue increased 26% to $761.6 million from $604.3 million in 2016.
    •  Other Real Estate Revenue increased 61% to $165.0 million from $102.6 million in 2016.
    •  Mortgages Revenue increased 13% to $80.6 million from $71.1 million in 2016.
  • Display Revenue increased 2% to $69.6 million from $68.5 million in 2016.

•  GAAP net loss was $94.4 million, or (9)% of Revenue, which includes the impact of the $174.0 million non-cash impairment charge, compared to GAAP net loss of $220.4 million in 2016, or (26)% of Revenue, which includes the impact of a $130.0 million litigation settlement.

•  Adjusted EBITDA was $236.3 million, or 22% of Revenue, which was an increase from $14.8 million in 2016, or 2% of Revenue.

Fourth Quarter 2017 Operating and Business Highlights

•  More than 151 million average monthly unique users visited Zillow Group brands' mobile apps and websites during the fourth quarter of 2017, an increase of 8% year-over-year.

•  Visits to Zillow Group brands' mobile apps and websites Zillow®, Trulia®, StreetEasy® (included as of March 2017) and RealEstate.com (included as of June 2017) increased 21% year-over-year to more than 1.4 billion during the fourth quarter of 2017. Premier Agent revenue per visit increased 1% to $0.139 from $0.138 in the same period last year.

•  The number of Premier Agent® advertisers, including brokerages and other teams, spending more than $5,000 per month grew by 70% year-over-year and increased 64% on a total dollar basis during the fourth quarter of 2017. 

•  Total sales to Premier Agent advertisers who have been customers for more than one year increased 41% year-over-year during the fourth quarter of 2017.

•  Sales to existing Premier Agent advertisers accounted for 63% of total bookings during the fourth quarter of 2017.

Business Outlook - First Quarter and Full Year 2018

The following table presents Zillow Group's business outlook for the periods presented:

                                       
    Three Months Ending   Year Ending  
Zillow Group Outlook as of February 8, 2018   March 31, 2018     December 31, 2018  
(in millions)                            
Revenue                                                                                                                                                                                                    $291 to $296     $1,302 to $1,317  
Premier Agent revenue   $206 to $208   $900 to $910  
Mortgages revenue                                                       $21 to $22   $95 to $96  
Rentals revenue (1)   $30 to $31   $144 to $146  
Other revenue (1)   $34 to $35   $163 to $165  
Operating expenses   $302 to $307   $1,240 to $1,255  
Net income (loss)   $(18.3) to $(13.3)   $38 to $53  
Adjusted EBITDA (2)          $42 to $47   $300 to $315  
Depreciation and amortization   $27 to $29   $118 to $123  
Share-based compensation expense   $26 to $28   $122 to $127  
Capital expenditures     ***     $93 to $98  
Weighted average shares outstanding — basic    190.0 to 192.0   193.0 to 195.0  
Weighted average shares outstanding — diluted   197.5 to 199.5   200.5 to 202.5  
                   
*** Outlook not provided                  
                   

(1)  Zillow Group will begin reporting Rentals Revenue as a separate revenue category beginning with quarterly reporting for the three months ending March 31, 2018. In addition, Display Revenue will be included in the Other Revenue category and not reported separately. Beginning in 2018, Other Real Estate Revenue will be redefined as Other Revenue and will include revenue from New Construction, dotloop, Display, as well as from the sale of various other advertising and business software solutions.

(2)  A reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) is provided below in this press release.

Conference Call and Webcast Information

Zillow Group CEO Spencer Rascoff and CFO Kathleen Philips will host a live conference call and webcast to discuss the results today at 2 p.m. Pacific Time (5 p.m. Eastern Time). A copy of management's prepared remarks will be made available on the investor relations section of Zillow Group's website at http://investors.zillowgroup.com/results.cfm prior to the live conference call and webcast to allow analysts and investors additional time to review the details of the results.

Zillow Group's management will first read the prepared remarks and then answer questions submitted via Sli.do, in addition to answering questions from dialed-in participants, during the live conference call. Questions may be submitted at www.slido.com using the event code #ZEarnings.

A link to the live webcast and recorded replay of the conference call will be available on the investor relations section of Zillow Group's website at http://investors.zillowgroup.com/results.cfm. The live call may also be accessed via phone at (877) 643-7152 toll-free domestically and at (443) 863-7921 internationally.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning 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, without limitation, statements regarding our business outlook, strategic priorities, and operational plans for 2018. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "will," "projections," "continue," "business outlook," "forecast," "estimate," "outlook," "guidance," or similar expressions constitute forward-looking statements. Differences in Zillow Group's actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group's control. Factors that may contribute to such differences include, but are not limited to, Zillow Group's ability to maintain and effectively manage an adequate rate of growth; Zillow Group's ability to innovate and provide products and services that are attractive to its users and advertisers; Zillow Group's ability to compete successfully against existing or future competitors; Zillow Group's investment of resources to pursue strategies that may not prove effective; the impact of the real estate industry on Zillow Group's business; the impact of pending litigation and other legal and regulatory matters; Zillow Group's ability to increase awareness of the Zillow Group brands in a cost-effective manner; Zillow Group's ability to attract consumers to Zillow Group's mobile applications and websites; Zillow Group's ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments; the reliable performance of Zillow Group's network infrastructure and content delivery processes; and Zillow Group's ability to protect its intellectual property. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For more information about potential factors that could affect Zillow Group's business and financial results, please review the "Risk Factors" described in Zillow Group's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission, or SEC, and in Zillow Group's other filings with the SEC. Except as may be required by law, Zillow Group does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA (including forecasted Adjusted EBITDA) and non-GAAP net income (loss) per share, which are non-GAAP financial measures. We have provided a reconciliation of Adjusted EBITDA (historical and forecasted) to net income (loss) (historical and forecasted), the most directly comparable GAAP financial measure, and a reconciliation of net income (loss), adjusted, to net loss, as reported on a GAAP basis, and the calculations of non-GAAP net income (loss) per share - basic and diluted, within this earnings release.

Adjusted EBITDA is a key metric used by our management and board of directors to measure operating performance and trends, and to prepare and approve our annual budget. The exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

  • Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  • Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
  • Adjusted EBITDA does not reflect impairment costs;
  • Adjusted EBITDA does not reflect acquisition-related costs;
  • Adjusted EBITDA does not reflect the gain on divestiture of business;
  • Adjusted EBITDA does not reflect interest expense or other income;
  • Adjusted EBITDA does not reflect the loss on debt extinguishment;
  • Adjusted EBITDA does not reflect income tax benefit (expense); and
  • Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net loss and our other GAAP results.

Our presentation of non-GAAP net income (loss) per share excludes the impact of share-based compensation expense, impairment costs, acquisition-related costs, loss on debt extinguishment, income tax benefit (expense) and the gain on divestiture of business. This measure is not a key metric used by our management and board of directors to measure operating performance or otherwise manage the business. However, we provide non-GAAP net income (loss) per share as supplemental information to investors, as we believe the exclusion of share-based compensation expense, impairment costs, acquisition-related costs, loss on debt extinguishment, income tax benefit (expense) and the gain on divestiture of business facilitates investors' operating performance comparisons on a period-to-period basis. You should not consider these metrics in isolation or as substitutes for analysis of our results as reported under GAAP.

About Zillow Group

Zillow Group (NASDAQ:Z) (NASDAQ:ZG) houses a portfolio of the largest real estate and home-related brands on mobile and the web. The company's brands focus on all stages of the home lifecycle: renting, buying, selling and financing. Zillow Group is committed to empowering consumers with unparalleled data, inspiration and knowledge around homes, and connecting them with the right local professionals to help. The Zillow Group portfolio of consumer brands includes real estate and rental marketplaces Zillow®, Trulia®, StreetEasy®, HotPads®, Naked Apartments® and RealEstate.com. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions to help real estate, rental and mortgage professionals maximize business opportunities and connect with millions of consumers. The company operates a number of business brands for real estate, rental and mortgage professionals, including Mortech®, dotloop®, Bridge Interactive® and New Home Feed®. The company is headquartered in Seattle.

Please visit http://investors.zillowgroup.com, www.zillowgroup.com/ir-blog, and www.twitter.com/zillowgroup, where Zillow Group discloses information about the company, its financial information, and its business which may be deemed material.

The Zillow Group logo is available at http://zillowgroup.mediaroom.com/logos-photos.

Zillow, Premier Agent, Mortech, Bridge Interactive, StreetEasy, HotPads and New Home Feed are registered trademarks of Zillow, Inc. Trulia is a registered trademark of Trulia, LLC. dotloop is a registered trademark of DotLoop, LLC. Naked Apartments is a registered trademark of Naked Apartments, LLC.

Twitter is a registered trademark of Twitter, Inc.

(ZFIN)

Reported Consolidated Results

 
ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 
(in thousands)
       
   
  December 31,
2017
  December 31,
2016
Assets      
Current assets:      
Cash and cash equivalents $   352,095     $   243,592  
Short-term investments     410,444         263,923  
Accounts receivable, net      54,396         40,527  
Prepaid expenses and other current assets     24,590         34,817  
Total current assets     841,525         582,859  
Property and equipment, net     112,271         98,288  
Goodwill     1,931,076         1,923,480  
Intangible assets, net     319,711         527,464  
Other assets     25,934         17,586  
Total assets $   3,230,517     $   3,149,677  
       
Liabilities and shareholders' equity      
Current liabilities:      
Accounts payable $   3,587     $   4,257  
Accrued expenses and other current liabilities     61,373         38,427  
Accrued compensation and benefits     19,109         24,057  
Deferred revenue     31,918         29,154  
Deferred rent, current portion     2,400         1,347  
Total current liabilities     118,387         97,242  
Deferred rent, net of current portion     21,330         15,298  
Long-term debt     385,416         367,404  
Deferred tax liabilities and other long-term liabilities     44,561         136,146  
Total liabilities     569,694         616,090  
Shareholders' equity:      
Class A common stock     6         5  
Class B common stock     1         1  
Class C capital stock     13         12  
Additional paid-in capital     3,254,146         3,030,854  
Accumulated other comprehensive loss     (1,100 )       (242 )
Accumulated deficit     (592,243 )       (497,043 )
Total shareholders' equity     2,660,823         2,533,587  
Total liabilities and shareholders' equity $   3,230,517     $   3,149,677  
       

 

   
ZILLOW GROUP, INC.  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS   
(in thousands, except per share data)  
                 
  Three Months Ended   Year Ended  
  December 31 ,   December 31,  
    2017       2016       2017       2016    
                 
Revenue $   282,330     $   227,612     $   1,076,794     $   846,589    
Costs and expenses:                
Cost of revenue (exclusive of amortization) (1)(2)     22,559         18,706         85,203         69,262    
Sales and marketing (2)     103,935         90,509         448,201         382,419    
Technology and development (2)     85,187         67,320         319,985         255,583    
General and administrative (2)     57,778         47,832         210,816         332,007    
Impairment costs     174,000         -         174,000         -    
Acquisition-related costs     97         533         463         1,423    
Gain on divestiture of business     -         -         -         (1,251 )  
Total costs and expenses     443,556         224,900         1,238,668        1,039,443    
Income (loss) from operations     (161,226 )       2,712         (161,874 )       (192,854 )  
Loss on debt extinguishment     -         (22,757 )       -         (22,757 )  
Other income     1,415         716         5,385         2,711    
Interest expense     (6,991 )       (2,668 )       (27,517 )       (7,408 )  
Loss before income taxes     (166,802 )       (21,997 )       (184,006 )       (220,308 )  
Income tax benefit (expense)     89,627         (1,494 )       89,586         (130 )  
Net loss $   (77,175 )   $   (23,491 )   $   (94,420 )   $  (220,438 )  
Net loss per share — basic and diluted $   (0.41 )   $   (0.13 )   $   (0.51 )   $   (1.22 )  
Weighted-average shares outstanding — basic and diluted     189,439         181,852         186,453         180,149    
_________                
(1) Amortization of website development costs and intangible assets included in technology and development $   24,392     $   22,130     $   94,349     $   87,060    
                 
(2)  Includes share-based compensation expense as follows:                
Cost of revenue $   942     $   888     $   3,884     $   3,550    
Sales and marketing     5,041         5,754         22,735         23,320    
Technology and development     10,609         8,306         39,938         31,466    
General and administrative     12,817         10,818         47,014         48,582    
Total  $   29,409     $   25,766     $   113,571     $   106,918    
                 
Other Financial Data:                
Adjusted EBITDA (3) $   70,859     $   54,749     $   236,315     $   14,826    
                 
(3)  See above for more information regarding our presentation of Adjusted EBITDA.           
                 

 

 
ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
         
    Year Ended
    December 31,
      2017       2016  
Operating activities        
Net loss   $   (94,420 )   $  (220,438 )
Adjustments to reconcile net loss to net cash provided by operating activities, net of amounts assumed in connection with acquisitions:        
Depreciation and amortization       110,155         100,590  
Share-based compensation expense       113,571         106,918  
Loss on debt extinguishment       -         22,757  
Amortization of discount and issuance costs on 2021 Notes       18,012         883  
Impairment costs       174,000         -  
Deferred income taxes       (89,586 )       (1,370 )
Loss on disposal of property and equipment       5,678         3,689  
Gain on divestiture of business       -         (1,360 )
Bad debt expense       7,349         2,681  
Deferred rent       7,085         1,730  
Amortization of bond premium       431         1,489  
Changes in operating assets and liabilities:        
Accounts receivable       (21,203 )       (13,324 )
Prepaid expenses and other assets       10,807         (13,260 )
Accounts payable       (373 )       856  
Accrued expenses and other current liabilities       19,000         (5,065 )
Accrued compensation and benefits       (4,948 )       12,463  
Deferred revenue       2,633         7,794  
Other long-term liabilities       -         1,612  
Net cash provided by operating activities       258,191         8,645  
         
Investing activities        
Proceeds from maturities of investments       259,227         199,369  
Purchases of investments       (407,032 )       (175,210 )
Proceeds from sales of investments       -         4,963  
Purchases of property and equipment       (66,728 )       (62,060 )
Purchases of intangible assets       (11,907 )       (9,662 )
Purchases of cost method investments       (10,000 )       (10,000 )
Proceeds from divestiture of a business       579         3,200  
Cash paid for acquisitions, net       (11,533 )       (16,319 )
Net cash used in investing activities       (247,394 )       (65,719 )
         
Financing activities        
Proceeds from issuance of 2021 Notes, net of issuance costs       -         447,784  
Premiums paid for Capped Call Confirmations       -         (36,616 )
Partial repurchase of 2020 Notes       -         (370,235 )
Proceeds from exercise of stock options       98,071         31,211  
Value of equity awards withheld for tax liability       (365 )       (616 )
Net cash provided by financing activities       97,706         71,528  
Net increase in cash and cash equivalents during period       108,503         14,454  
Cash and cash equivalents at beginning of period       243,592         229,138  
Cash and cash equivalents at end of period   $   352,095     $   243,592  
         
Supplemental disclosures of cash flow information        
Cash paid for interest   $   9,198     $   6,325  
Noncash transactions:        
Capitalized share-based compensation   $   11,236     $   10,061  
Write-off of fully depreciated property and equipment   $   15,004     $   14,564  
Write-off of fully amortized intangible assets   $   5,473     $   9,293  
                 

Adjusted EBITDA

The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for each of the periods presented (in thousands, unaudited):

                   
    Three Months Ended   Year Ended  
    December 31,   December 31,  
      2017       2016       2017       2016    
Reconciliation of Adjusted EBITDA to Net Loss:                  
Net loss   $   (77,175 )   $   (23,491 )   $   (94,420 )   $  (220,438 )  
Other income       (1,415 )       (716 )       (5,385 )       (2,711 )  
Depreciation and amortization expense       28,579         25,738         110,155         100,590    
Share-based compensation expense       29,409         25,766         113,571         106,918    
Impairment costs       174,000         -         174,000         -    
Acquisition-related costs       97         533         463         1,423    
Gain on divestiture of business       -         -         -         (1,251 )  
Interest expense       6,991         2,668         27,517         7,408    
Loss on debt extinguishment       -         22,757         -         22,757    
Income tax (benefit) expense       (89,627 )       1,494         (89,586 )       130    
Adjusted EBITDA (1)   $   70,859     $   54,749     $  236,315     $   14,826    
                   

(1)  For the year ended December 31, 2016, Adjusted EBITDA includes the impact of a $130.0 million litigation settlement. Adjusted EBITDA for the year ended December 31, 2016 also includes $28.8 million in related legal costs.

Non-GAAP Net Income (Loss) per Share

The following table presents a reconciliation of net income (loss), adjusted, to net loss, as reported on a GAAP basis, and the calculation of non-GAAP net income (loss) per share - basic and diluted, for each of the periods presented (in thousands, except per share data, unaudited):

                   
    Three Months Ended   Year Ended  
    December 31,   December 31,  
      2017       2016       2017       2016    
                   
Net loss, as reported   $   (77,175 )   $   (23,491 )   $   (94,420 )   $  (220,438 )  
Share-based compensation expense       29,409         25,766         113,571         106,918    
Impairment costs       174,000         -         174,000         -    
Acquisition-related costs       97         533         463         1,423    
Loss on debt extinguishment       -         22,757         -         22,757    
Income tax (benefit) expense        (89,627 )       1,494         (89,586 )       130    
Gain on divestiture of business       -         -         -         (1,251 )  
Net income (loss), adjusted   $   36,704     $   27,059     $  104,028     $   (90,461 )  
                   
Non-GAAP net income (loss) per share - basic   $   0.19     $   0.15     $   0.56     $   (0.50 )  
Non-GAAP net income (loss) per share - diluted   $   0.19     $   0.14     $   0.53     $   (0.50 )  
Weighted-average shares outstanding - basic       189,439         181,852         186,453         180,149    
Weighted-average shares outstanding - diluted       197,442         190,331         194,837         180,149    
                   

Revenue by Type

The following tables present our revenue by type (in thousands, unaudited) and as a percentage of total revenue for each of the periods presented (unaudited):

                 
  Three Months Ended   Year Ended  
  December 31,   December 31,  
    2017       2016       2017       2016    
Revenue:                
Marketplace revenue:                
Premier Agent $   199,514     $  164,335     $   761,594     $   604,292    
Other real estate     47,564         29,788         164,991         102,635    
Mortgages     18,516         16,512         80,591         71,133    
Total Marketplace revenue     265,594         210,635         1,007,176         778,060    
Display revenue     16,736         16,977         69,618         68,529    
Total revenue $   282,330     $  227,612     $   1,076,794     $   846,589    
                 
                 
                 
  Three Months Ended   Year Ended  
  December 31,   December 31,  
    2017       2016       2017       2016    
Percentage of Total Revenue:                
Marketplace revenue:                
Premier Agent   71 %     72 %     71 %     71 %  
Other real estate   17 %     13 %     15 %     12 %  
Mortgages   7 %     7 %     7 %     8 %  
Total Marketplace revenue   94 %     93 %     94 %     92 %  
Display revenue   6 %     7 %     6 %     8 %  
Total revenue   100 %     100 %     100 %     100 %  
                 

Key Metrics

The following table sets forth our key metrics for each of the periods presented:

             
  Three Months Ended
 December 31,
  2016 to 2017  
  2017   2016   % Change  
  (in millions)      
Average Monthly Unique Users (1) 151.6   140.1   8 %  
Visits (2) 1,435.6   1,189.7   21 %  
             

(1)  Zillow, StreetEasy, HotPads, Naked Apartments and RealEstate.com (as of June 2017) measure unique users with Google Analytics, and Trulia measures unique users with Adobe Analytics (formerly called Omniture analytical tools).

(2)  Visits includes visits to the Zillow, Trulia, StreetEasy (as of March 2017) and RealEstate.com (as of June 2017) mobile apps and websites. We measure Zillow, StreetEasy and RealEstate.com visits with Google Analytics and Trulia visits with Adobe Analytics.

Reconciliation of Forecasted Adjusted EBITDA to Forecasted Net Income (Loss)

The following table presents a reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) at the midpoint of the range for each of the periods presented (in thousands, unaudited):

         
    Three Months Ending   Year Ending
    March 31, 2018   December 31, 2018
Reconciliation of Forecasted Adjusted EBITDA to Forecasted Net Income (Loss):        
Forecasted Net income (loss)   $   (15,800 )   $   45,500  
Forecasted Other income       (1,500 )       (5,200 )
Forecasted Depreciation and amortization expense       28,000         120,500  
Forecasted Share-based compensation expense       27,000         124,500  
Forecasted Interest expense       6,800         27,200  
Forecasted Income tax benefit       -          (5,000 )
Forecasted Adjusted EBITDA   $   44,500     $   307,500  
         

Contacts:

Raymond Jones
Investor Relations
ir@zillowgroup.com

Katie Curnutte
Public Relations
press@zillow.com

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/3afbfd73-a73e-49a0-bbaa-c71b0d19eebf

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Source: Zillow Group, Inc.

 

 

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