Q1 2024 Zillow Group Inc Earnings Call Transcript
Key Points
- Zillow Group Inc (Z) reported strong revenue growth, with Q1 revenue of $529 million, a 13% year-over-year increase, outperforming the residential real estate market growth.
- Rentals business continued to show robust growth, with revenue up 31% year-over-year to $97 million, driven by an increase in multifamily property count.
- Mortgages revenue increased by 19% year-over-year to $31 million, with purchase mortgage origination volume growing more than 130% year-over-year.
- Zillow Group Inc (Z) is leveraging its large, engaged audience and strong brand trust to experiment with and evolve business models, enhancing consumer and partner experiences.
- The company is making significant progress in digitally transforming the real estate industry through its Zillow housing super app, integrating various services to streamline the moving process.
- Despite overall strong performance, Zillow Group Inc (Z) faces challenges in a tough rate environment, impacting the broader housing market.
- The company's reliance on the continuation of high engagement and organic traffic growth poses risks if market dynamics shift unexpectedly.
- Zillow Group Inc (Z) is still in the process of converting its massive audience into revenue, indicating potential underutilization of its platform.
- The ongoing class action suit against NAR and select brokerages, although reaching a proposed settlement, continues to create industry uncertainty.
- First-time homebuyer activity has underperformed due to recent spikes in interest rates, posing a potential risk to future growth in the residential sector.
Good afternoon. My name is Elliot, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Zillow Group First Quarter 2024 Conference Call. (Operator Instructions) Please note this event is being recorded. And I would now like to turn the conference over to Brad Berning, Vice President, Strategic Affairs and Investor Relations. Please go ahead.
Thank you. Good afternoon, and welcome to Zillow Group's First Quarter 2024 Conference Call. Joining me today to discuss our results are Zillow Group's Co-Founder and CEO, Rich Barton; COO, Jeremy Wacksman; and CFO, Jeremy Hofmann.
During today's call, we will make forward-looking statements about our future performance and operating plans based on current expectations and assumptions. These statements are subject to risks and uncertainties, and we encourage you to consider the risk factors described in our SEC filings for additional information. We undertake no obligation to update these statements as a result of new
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