Z Q4 2020 Earnings

Call Details

• Call Title: Zillow Group, Inc. Q4 2020 Earnings Call
• Date: February 10, 2021 at 10:00 PM UTC
• Management Team:
  • Brad Berning (Vice President, Investor Relations)
  • Rich Barton (Chief Executive Officer)
  • Allen Parker (Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated Q4 revenue was $789 million and consolidated Q4 EBITDA was $170 million, both above the high end of the outlook range.
• Full-year 2020 consolidated revenue grew up 22% versus 2019 and full-year EBITDA expanded to $343 million from $39 million in 2019.
• IMT segment Q4 revenue was $424 million, which was up 33% year-over-year, and IMT segment EBITDA was $203 million or 48% of IMT revenue.
• Premier Agent revenue was up 35% year-over-year in Q4, with an apples-to-apples growth rate adjusted to 27% excluding prior revenue timing changes.
• Home segment Q4 revenue was $304 million with purchases returning to Q4 2019 acquisition pace and Zillow Offers unit economics reported materially positive at roughly mid-600s basis points before interest.
• Mortgages segment revenue increased up 190% year-over-year in Q4 to $61 million and mortgages segment EBITDA was $14 million versus a prior midpoint outlook of $2 million.

Guidance

• Company expects consolidated Q1 revenue of $1.1 billion at the midpoint of the outlook.
• Consolidated Q1 EBITDA is expected to be between $114 million and $138 million.
• IMT segment revenue is forecast to be up 27% year-over-year in Q1 at the midpoint, with Premier Agent revenue guide of $314 million to $322 million, up about 31% year-over-year at the midpoint.
• IMT segment Q1 EBITDA margin is guided to be approximately 42% at the midpoint of the outlook.
• Home segment revenue is expected to increase sequentially to $608 million at the midpoint in Q1 as purchase and resale activity ramps.
• Mortgage segment revenue is guided to $59 million to $64 million in Q1 with mortgage segment EBITDA expected between a loss of $3 million and a profit of $1 million.
• The published outlook does not include any potential financial benefit from the announced intent to acquire ShowingTime.