Zillow Group (Z) investor relations material

Strategic evolution and operational pillars

• Built a dominant brand with 70-75% online real estate share and 80% direct traffic, initially focused on the 'dream and shop' experience.

• Expanded into an operating system for real estate, powering 90% of tours (ShowingTime), 50% of offers (Dotloop), and rich media on 10-30% of listings.

• Added a transactional layer, integrating buy, sell, rent, and finance, with Zillow Home Loans now a top 25 lender and strong growth in rentals.

• AI is accelerating all layers, enhancing consumer advice, agent productivity, and transaction efficiency.

• Achieved 29% annual revenue CAGR since IPO, with profits and net income growing faster than revenue, and a 10% share count reduction in recent years.

Monetization model and revenue growth

• Transitioned from upfront ad-based agent fees to a success-based model (Zillow Preferred), shifting some revenue from residential to mortgages.

• Zillow Preferred model grew 23% faster than legacy in 2025, with 35% growth expected in 2026, and higher revenue per connection.

• Software products like Follow Up Boss and Zillow Pro drive agent productivity and facilitate transactions, with high-margin potential but focus on adoption.

• Rentals business now covers over 70% of single-family rental inventory, driving high-20% to 30% revenue growth outlook.

• Redfin partnership expands reach for multifamily listings, with recent FTC settlement allowing continued collaboration and new ad SKUs.

AI and technology innovation

• AI mode deployed to 20% of logged-in users, increasing engagement and enabling richer, more personalized consumer interactions.

• Proprietary data and software integration (e.g., Follow Up Boss) enable unique agent insights and consumer targeting.

• AI enhances transaction efficiency and allows for persistent, conversational engagement with buyers and sellers.

• Ongoing innovation expected to further differentiate offerings and cross technology chasms.