The company announced massive home flipping revenue and massive home flipping losses The vision of Zillow becoming a one-stop shop for real estate transactions is coming closer to fruition.
On its earnings call last week, the company announced it?s expanding Zillow Offers?its new home-buying and selling division?to six new markets within the year, and Zillow?s quarterly revenue came in higher than expected as a result of a spike in revenue in its Offers program.
Zillow Offers is the missing link to providing end-to-end service for anyone looking to buy or sell a home, or as is often the case, both. Zillow purchased and rebranded a mortgage company in the last year. Its legacy business is the real estate portal through which people can shop for and advertise home listings. You need something done in the homebuying process" Zillow wants to be able to provide anything and everything. Wall Street signaled approval of this vision when Zillow?s stock price jumped by 19 percent in the evening after the earnings call, driven in part by higher-than-expected revenue growth in its Offers business. But is home flipping a good long-term move for Zillow"
The company?s earnings show that is a serious question without an easy answer. Zillow Offers sold 414 homes in the first quarter of 2019, with $128.5 million in revenue, which caused overall revenue to jump by 51 percent over a year ago. But after accounting for costs like sales, marketing, technology, and administration?...