Zillow Group (Z) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $474 million, up 9% YoY and $31 million above the midpoint of outlook; full-year revenue was $1.945 billion, down 1%.

• Q4 Adjusted EBITDA was $69 million, $19 million above the midpoint of outlook; GAAP net loss was $73 million.

• Performance reflected growth in Rentals and Mortgages, while Residential revenue outperformed the industry’s transaction-value decline.

Financial highlights

• Q4 gross profit was $359 million, up from $346 million YoY; gross margin was 76%, versus 80%.

• FY gross profit was $1.524 billion, down from $1.591 billion; gross margin was 78%, versus 81%.

• FY net loss was $158 million, compared with $101 million in 2022; Q4 net loss was $73 million, versus $72 million.

• FY Adjusted EBITDA was $391 million, down from $514 million; Q4 was $69 million, versus $73 million.

Outlook and guidance

• Q4 revenue exceeded the midpoint of outlook by $31 million and Adjusted EBITDA exceeded it by $19 million, primarily on higher-than-expected Rentals and Residential revenue.

• Integrated customer experiences in early markets supported plans to expand the offering to more markets in 2024.