Zillow Group (Z) Morgan Stanley Technology, Media & Telecom Conference summary

Strategic growth targets and revenue drivers

• Targeting $5 billion in revenue and 45%+ EBITDA margins in a mid-cycle housing environment, up from $2.2 billion in 2024, with growth driven by for-sale, rentals, and a return to 6 million annual home sales.

• For-sale revenue growth to be fueled by Enhanced Markets, Listing Showcase, and Zillow Home Loans, aiming for $1 billion incremental revenue regardless of macro conditions.

• Rentals business expected to double from $450 million to $1 billion, leveraging a two-sided marketplace and expanding multifamily partnerships.

• Cost discipline remains a focus, with fixed costs leveraged for margin expansion and stock-based compensation efficiency.

• GAAP net income profitability targeted for 2025, with aspirations to join the S&P 500.

Enhanced Markets and operational execution

• Enhanced Markets now cover 43 metros, representing 21% of connections, with a goal to reach 35% by end of 2025 and 75% over time.

• Early markets like Phoenix, Raleigh, Atlanta, and Denver saw transaction value more than double since 2023.

• Methodical rollout prioritizes strong relationships between loan officers and agents, aiming for sustainable long-term growth.

• Consistent mid-teens adoption rates for Zillow Home Loans in Enhanced Markets.

• Playbook refinement has accelerated market expansion, but human relationships remain a gating factor.

Rentals marketplace and partnerships

• Rentals strategy centers on aggregating single-family and multifamily supply, now with over 60% of single-family homes for rent listed.

• Multifamily segment grew from 27,000 to 50,000 buildings between 2022 and 2024.

• Redfin and Realtor.com partnerships expand distribution, with Redfin paid on a cost-per-lead basis.

• Partnerships provide property managers with broader reach and consumers with more rental options.

• Focus remains on deepening relationships with property management companies to drive further growth.