Zillow Group (NASDAQ: Z; NASDAQ: ZG), now the most widely used real estate platform in the world, has become a household name over the past decade. With more than 221 million average users per month, it's the No. 1 way to search, list, buy, or rent real estate online.
The company, which has achieved tremendous growth over the years, is adding to its operations so it can expand and grow. If you're considering buying shares in Zillow Group, here's what you need to know.
Zillow Group company profile
Zillow Group is first and foremost a real estate software platform that allows users to search or list real estate for sale in the multiple listing service (MLS), among other platforms, including their own. The company dominates the market for this service, having had 2.5 billion visits to its website in the first quarter of 2021.
While their online platform is what put them on the map, the core of their services is expanding to better serve the market, as well as its business. Zillow Group now offers:
- Zillow Closing Services (title and escrow services)
- Zillow Home Loans (loan origination)
- Zillow Offers (iBuying service)
- Zillow Premier Agent (agent referral system)
- Zillow Rentals (rental listings and digital management services)
The company also owns the subsidiaries Trulia (similar real estate platform), Hotpads (residential rental platform), and StreetEasy (New York greater Metro listing platform). The goal of adding the additional services is to allow the company to be an all-encompassing solution for homebuyers, home sellers, and investors, depending on their needs.
Zillow's internet, media, and technology (IMT) segment is, by far, the most profitable sector for the company, which earns revenues from online advertising commissions or sales earned through any of their platforms and services. As of Q1 2021, the IMT segment made up 32% of the company's revenues.
The next two biggest sectors include Zillow Offers and its mortgage services, making up (8%) and (3%) losses, respectively, for the company revenues in the same quarter.
Zillow Group news
Zillow is largely working on ramping up its iBuying services through Zillow Offers. It has improved its automated valuation, or Zestimate, to provide more accurate valuations. That, in turn, is used to help provide instant offers to prospective sellers. The company acquires the property at or near par value, making small or major improvements to the property before relisting the property for sale on its platform.
The iBuyer market has grown tremendously over the past 10 years, and while Zillow isn't the largest iBuyer in the market today, they do take up significant market share.