Zillow Group (Z) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Business performance and strategy

• Q3 revenue grew 17% year over year, with growth across residential, rentals, and mortgages, driven by the integrated transaction strategy in Enhanced Markets.

• Enhanced Markets bundle real-time touring, financing, and top agent partnerships, using proprietary CRM software to create a seamless buyer experience.

• Real-time touring now accounts for 25% of customer connections, up from 10% at the start of the year, and is a key driver of higher conversion rates.

• The company aims to become a one-stop shop for real estate transactions, with future plans to integrate services like title, escrow, and document signing into its app.

• Long-term targets include reaching 6% transaction share and doubling revenue per total transaction value in key markets.

Product innovation and growth drivers

• Real-time touring is the largest contributor to growth this year, with mortgage and Listing Showcase also adding value.

• Listing Showcase has grown from zero to 1.5% of new listings, with significant future potential.

• Enhanced Markets strategy is being expanded carefully, focusing on training and software rollout to ensure quality.

• The company is leveraging its large audience share (60–70%) to drive transaction share, aiming to move more offline transactions online.

• Growth is planned to be secular and resilient, independent of macroeconomic conditions, with a focus on outgrowing the category.

Rentals business and marketing

• The rentals strategy focuses on aggregating the largest inventory, especially in single-family and smaller units, solving a key customer problem.

• Audience share in rentals is up 20% year over year, making the platform the largest brand among renters.

• Multifamily advertisers are increasingly attracted, with multifamily buildings on the platform rising from 40,000 to 47,000 this year.

• 80% of rental business revenue is subscription-based, with growth driven primarily by adding more properties.

• Marketing spend is used tactically to address audience gaps, but organic supply growth is the main driver.