The fast-growing real estate website delivered better-than-expected quarterly results last night, just as it did three months ago in its first financial report as a public company.
Zillow saw its third-quarter revenue soar 132% to $19.1 million. Adjusted earnings clocked in at $0.05 a share. Analysts were banking on a tweaked profit of just $0.03 a share on $17.1 million in revenue.
Zillow's success comes at a peculiar time. The residential real estate market is still feeling its way for a bottom. Realtor.com parent Move
So what's the secret to Zillow's success? A hook always helps. Just as priceline.com
Easily accessible proprietary data is a potent hook, and Zillow attracted an average of 24.2 million unique monthly visitors to its website and mobile app, more than double the audience it was reach a year earlier.
If Zillow is where the homeowners, buyers, and sellers are hanging out that's where real estate agents will be, affording the dot-com darling the opportunity to milk juicy display advertising and marketplace revenue. Zillow has been able to take a page out of the Bankrate
This has been a year of busted IPOs, but Zillow stands tall after back-to-back blowout quarters -- well above its $20 debutante price in July.
Zillow is the pretty house in an ugly neighborhood. Deal with it.
If you want to see if the dot-com speedster can keep that new house smell going add Zillow to My Watchlist.
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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.