Zillow Group (Z) Goldman Sachs Communacopia + Technology Conference 2024 summary

Financial performance and strategy

• Achieved double-digit revenue growth year-over-year, with Q1 and Q2 at 13% and Q3 guidance between 10%-13%.

• EBITDA margins have remained strong at 23%-24%, with expectations for further margin expansion.

• Growth attributed to investments in enhanced markets, mortgages, and rentals, supported by disciplined cost management.

• Strategic focus shifted from reorganization in 2022 to investment realization in 2024.

• Targeting an increase in transaction share from 3% to 6% by end of 2025.

Market positioning and competitive landscape

• Holds 65%-70% audience share and is three times larger than the nearest competitor in app usage.

• Over 80% of traffic is organic or direct, reflecting strong brand recognition.

• Differentiates through technology, high-quality agent partnerships, and consumer-centric product development.

• Focused on expanding from search to transactional services: buy, sell, rent, and finance.

Response to industry changes and NAR settlement

• NAR settlement increases transparency and negotiability of buyer agent commissions, viewed as positive for consumers and industry.

• Well-positioned due to large customer base, high-quality agents, and advanced technology offerings.

• Anticipates evolutionary rather than revolutionary business impact from the settlement.