Zillow Group, Inc. (NASDAQ: Z) announced its fourth quarter financial results on Thursday. The real estate operator reported in-line earnings but beat revenue expectations. Zillow’s Chief Executive Officer Spencer Rascoff also stepped down and will be replaced by Co-Founder and former Chief Executive Officer Rich Barton. Zillow shares rose by 26.3% on Friday.
For the fourth quarter, Zillow reported earnings of USD 1 cents per share on revenue of USD 365 Million. Analysts had expected earnings of USD 1 cents per share on revenue of USD 351 Million.
Zillow reported more than 157 million average monthly unique users accessed Zillow Group brands’ mobile apps and websites during the quarter, increasing 4% year-over-year.
As for Zillow’s Homes segment, it reported revenue of USD 41.3 Million. In the fourth quarter, Zillow purchased 499 homes and sold 141 homes. As of December 31st, 2018, Zillow held 509 homes, valued at USD 162.8 Million. In total, Zillow has now purchased 686 homes and sold 177 since Zillow Offers launched in April 2018.
Internet, Media, and Technology revenue grew by 15% to USD 324 Million. Premier Agent revenue increased by 11% to USD 221 Million. Rentals revenue rose by 21% to USD 34.9 Million. Lastly, Mortgages revenue jumped by 26% to USD 23.3 Million.
For the next quarter, Zillow reported higher-than-expected revenue guidance in between USD 417 Million and USD 443 Million. Analysts are projecting estimates of USD 404 Million.
Rich Barton was also welcomed back as the Chief Executive Officer. Barton co-founded Zillow back in 2005 and served as Chief Executive until 2010. Barton founded Expedia in 1994 and co-founded Glassdoor in 2007. Barton continued his career as Executive Chairman. Co-Founder Lloyd Frink will now become Executive Chairman.
Rascoff will remain on Zillow’s board of directors. He led the Company into its initial public offering as Chief Executive Officer since he took the role back in 2010. In that span, Rascoff also oversaw 15 acquisitions, as its annual revenue increased from USD 30 Million to USD 1.3 Billion in the same time period.