Online real estate database Zillow Inc. reported a solid fourth quarter as well as overall sturdy earnings for 2012 as the housing market continues its upward trend.
Zillow (Z) posted a fourth-quarter revenue of $34.3 million, up 73% year-over-year, according to the company’s report.
Additionally, total revenue for 2012 was $116.1 million, up 77% year-over-year.
“The fourth quarter was another terrific one as incredible execution by the Zillow team re-accelerated year-over-year growth, and delivered revenue and profit that exceeded our expectations,” said Chief Executive Officer Spencer Rascoff of Zillow. “The quarter capped off a pivotal year of tremendous growth.”
Net income was $500,000, compared to $900,000 last year as a result of an increase in depreciation and repayment expenses as well as compensation expenses tied to acquisitions.
Net income for 2012 was $5.9 million, significantly up from $1.1 million last year. This increase is due to $1.1 million of acquisition-related transaction costs, compared to $400,000 from the previous year.
Additionally, marketplace revenue in 4Q12 rose to $26.8 million, up 95% year-over-year.
Zillow achieved record marketplace revenue while executing a pricing model transition in the premier agent business, the report noted.
In 2012, marketplace revenue increased to $86.7 million, up 105% year-over-year.
Monthly visitors in 4Q12 grew to 34.5 million, up 47% compared to 23.5 million year-over-year. Additionally, January posted a record traffic month with 45.9 million visitors, representing 45% year-over-year growth, the report stated.
In the fourth quarter, Zillow acquired Mortech, HotPads and Buyfolio to accelerate the company’s mortgage, rental and real estate marketplace, according to the report.
Looking forward to 2013, Rascoff noted that the company will focus on three priorities.
“Attracting more users with great products and services; growing our Premier Agent business with unmatched value and tools; and accelerating our emerging mortgage, rental and home improvement marketplaces,” he concluded.
