Zillow Group (Z) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth in 2024, with Q4 revenue of $554M (up 17% YoY) and full-year revenue of $2.2B (up 15% YoY), outperforming a sluggish housing market.

• Expanded Adjusted EBITDA margin by 200 basis points to 22% in 2024, with Q4 Adjusted EBITDA of $112M (20% margin).

• Net loss improved to $(112)M in 2024 from $(158)M in 2023; Q4 net loss was $52M (9% margin), an improvement from $73M loss (15% margin) in Q4 2023.

• Executed strategy focused on expanding the housing super app, driving engagement and conversion across For Sale and Rentals.

• Platform leads U.S. real estate in web and app traffic, with 66% audience share and over 4x daily active app users of the nearest competitor.

Financial highlights

• 2024 total revenue reached $2.2B, with $1.7B from For Sale and $453M from Rentals; Q4 For Sale revenue was $428M (up 15% YoY), Rentals $116M (up 25% YoY), and Mortgages $41M (up 86% YoY).

• Adjusted EBITDA for 2024 was $498M (22% margin), up from $391M (20% margin) in 2023.

• Multifamily revenue now nearly $300M annually, comprising the majority of Rentals revenue; multifamily properties on platform grew from 37K to 50K in 2024.

• Ended Q4 with $1.9B in cash and investments, after settling $499M in convertible debt.

• Gross profit margin remained steady at 76% in Q4 and for the full year.

Outlook and guidance

• Q1 2025 revenue expected between $575M–$590M, up 10% YoY at midpoint; full-year 2025 revenue growth expected in low to mid-teens with positive GAAP net income anticipated.

• For Sale revenue growth in Q1 expected in mid-single digits; Mortgages and Rentals revenue each expected to grow ~30% YoY.

• EBITDA margin expected to expand again in 2025.

• Mid-cycle targets: $5B revenue, 45% Adjusted EBITDA margin, and 6M existing homes sold when the market normalizes.

• Disciplined cost structure and operational leverage expected to drive sustainable GAAP profitability.