Zillow Group(Z)2023-02-15 23:23Financial Data and Key Metrics Changes - Zillow Group reported consolidated results above expectations for both revenue and EBITDA in Q4 2022, with IMT segment revenue at 113 million for Q4, representing 27% of revenue, exceeding the high end of the outlook range [34] Business Line Data and Key Metrics Changes - The IMT segment saw a 30% annualized growth in EBITDA since 2019, despite a challenging operating environment [9] - Rentals revenue increased by 13% year-over-year, with traffic growing 20% year-over-year to 26 million average monthly unique users in Q4 [33] - Mortgages segment revenue was 32 million as investments continued in building a better consumer-facing origination experience [34] Market Data and Key Metrics Changes - Average monthly unique users reached 198 million during Q4, with Zillow regaining its position as the number one most visited rentals platform [8][9] - The company noted that mortgage rates have come off their highs, and home prices have continued to decelerate from their peak [27] Company Strategy and Development Direction - Zillow aims to build a housing super app to increase customer transaction share from 3% to 6% by the end of 2025, focusing on five growth pillars: touring, financing, seller solutions, enhancing the partner network, and integrating services [12][13] - The company is enhancing its partner network by consolidating partners across test markets to improve customer experience and facilitate rapid testing of new products [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of housing affordability and its impact on demand and supply, but noted early signs of stabilization in the market [26][27] - The company remains focused on investing in growth initiatives despite the uncertain macroeconomic environment, believing that it can capture a larger share of the expected 60 million home transactions over the next decade [28][29] Other Important Information - Zillow ended 2022 with a solid balance sheet of 200 million from the previous year [9] - The company plans to report financial results as a single reportable segment starting Q1 2023, aligning with its integrated platform strategy [37][38] Q&A Session Summary Question: Can you help us understand the listings showcase product and its market strategy? - Management explained that Listing Media Services and Listing Showcase aim to help listing agents differentiate themselves and win more business, with early indicators showing positive feedback from partners and customers [46][47] Question: What are the early signs of stabilization in the housing market? - Management noted that while the macro environment remains volatile, there are signs of buyer demand and supply constraints, with mortgage rates pulling back and unique users indicating a desire to move [54][55] Question: How does the company view the potential entry of CoStar into the residential market? - Management emphasized their focus on the mover consumer and building a strong audience, which has led to significant traffic growth and a solid brand position [48][49]