Zillow Group, Inc. (NASDAQ: Z) (NASDAQ: ZG), which houses a
portfolio of the largest and most vibrant real estate and
home-related brands on mobile and the web, today announced its
consolidated financial results for the quarter and full year ended
December 31, 2018. In a separate news release, Zillow Group
announced that co-founder Rich Barton is returning as CEO,
co-founder Lloyd Frink has been named Executive Chairman, and
co-founder Spencer Rascoff, who has served as CEO since 2010, will
continue to serve as a member of the company’s board of directors.
“In the past year, Zillow Group has become a very different
company,” said Rich Barton, co-founder and CEO of Zillow Group,
Inc. “We’re making strategic investments to broaden the Zillow
Group portfolio to move further down the home-shopping funnel,
giving today’s ‘uberized,’ on-demand consumers a full spectrum of
options to buy, sell, borrow and rent on their terms. The launch of
Zillow Offers and the acquisition of Mortgage Lenders of America in
2018 opened our doors to home buying and selling and home loan
originations. Adding real estate transactions and eventually
seamless mortgages to the Zillow Group portfolio positions us well
for the next generation of online real estate and dramatically
increases our addressable market.
“We’re also in the process of transitioning our Premier Agent
business from a web 1.0 lead-generation model to one that creates
live on-demand connections with consumers to improve their
experience and ultimately helps our Premier Agents close more
deals. While our Premier Agent business is still recovering from
some mid-year challenges, we’re now seeing better agent response
rates and higher conversion rates, as our churn rates are
approaching normal historical levels.
“2019 will continue to be a year of transformation and
investment. We’re building on our market leadership, the power of
the Zillow Group brand portfolio and our culture of innovation to
nurture our new businesses, while also partnering with Premier
Agents and the industry to delight consumers, and set the stage for
our next wave of growth. We are sharing our three- to five-year
targets that reveal what we believe will be a much larger,
integrated online real estate company in which our Homes segment
alone can add $20 billion in annual revenue.
“We created Zillow Group in 2005 to make the real estate
shopping and purchase process easier and more seamless. Much of our
original dream is just now becoming possible. We are at an
inflection point in this quest, and the time is right to shuffle
leadership seats. I’m excited to be back as CEO. I am incredibly
grateful to Spencer for the indefatigable leadership that got us to
this point, and I’m happy we will benefit from his continued
support and counsel as a board director,” concluded Barton.
Details about Zillow Group’s fourth quarter and full year
financial results are included in this news release.
Financial tables can be found in the investor relations
section of Zillow Group’s website at
http://investors.zillowgroup.com/results.cfm. There will not be a
shareholder letter this quarter, but the company will post prepared
remarks from the conference call to the investor relations website
after the call.
Long-Term Targets+
If Zillow Group is successful in executing its growth strategy,
in three to five years, Zillow Group management believes the
company could achieve the following:
Homes Segment
- Purchasing 5,000 homes per month at annualized segment revenue
of approximately $20.0 billion.
Mortgages Segment
- Achieve 33% attach rate to the Homes segment.
- Originating more than 3,000 loans per month.
Internet, Media & Technology Segment
- Achieve more than $2.0 billion in annual segment revenue,
almost doubling its current size.
- Generate approximately $600 million in annual Adjusted EBITDA1,
or 30% of segment revenue.*
+Please see “Forward-Looking Statements” below for additional
information about these long-term targets.
Fourth Quarter and Full Year 2018
Financial Highlights
Fourth quarter total revenue of $365.3 million
was up 29% year-over-year, driven primarily by growth in Premier
Agent revenue and the addition of Homes revenue. On a consolidated
basis, GAAP net loss for the fourth quarter of 2018, including a
non-cash impairment charge, was $97.7 million, or 27% of revenue,
and Adjusted EBITDA2 was $32.4 million, or 9% of revenue.
For the full year 2018, Zillow Group reported
total revenue of more than $1.3 billion, up 24% year-over-year. On
a consolidated basis, GAAP net loss for the year, including a
non-cash impairment charge, was $119.9 million, or 9% of revenue,
and Adjusted EBITDA was $200.8 million, or 15% of revenue.
1 Adjusted EBITDA is a non-GAAP financial measure; it is not
calculated or presented in accordance with U.S. generally accepted
accounting principles, or GAAP. Please see the below section “Use
of Non-GAAP Financial Measures” for more information about our
presentation of Adjusted EBITDA. Zillow Group has not provided a
quantitative reconciliation of forecasted segment Adjusted EBITDA
to forecasted segment GAAP income (loss) before income taxes within
this earnings release because the company is unable, without making
unreasonable efforts, to calculate certain reconciling items with
confidence, as described further below.
2 Please see below for more information about our presentation
of Adjusted EBITDA, including a reconciliation of Adjusted EBITDA
to the most directly comparable GAAP financial measure, which is
net loss on a consolidated basis, for each of the periods
presented.
The following table sets forth Zillow Group’s financial
highlights for the periods presented (in thousands, unaudited):
|
Three Months Ended |
|
2017 to 2018 % Change |
|
Year Ended |
|
2017 to 2018 % Change |
|
December 31, |
|
|
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMT segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premier
Agent |
$ |
221,012 |
|
$ |
199,514 |
|
11% |
|
$ |
898,332 |
|
$ |
761,594 |
|
18% |
Rentals |
|
34,917 |
|
|
28,851 |
|
21% |
|
|
134,587 |
|
|
102,544 |
|
31% |
Mortgages |
|
23,280 |
|
|
18,516 |
|
26% |
|
|
80,046 |
|
|
80,591 |
|
(1)% |
Other (1) |
|
44,779 |
|
|
35,449 |
|
26% |
|
|
168,224 |
|
|
132,065 |
|
27% |
Total IMT segment
revenue |
|
323,988 |
|
|
282,330 |
|
15% |
|
|
1,281,189 |
|
|
1,076,794 |
|
19% |
Homes segment |
|
41,347 |
|
|
- |
|
N/A |
|
|
52,365 |
|
|
- |
|
N/A |
Total revenue |
$ |
365,335 |
|
$ |
282,330 |
|
29% |
|
$ |
1,333,554 |
|
$ |
1,076,794 |
|
24% |
Other Financial
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMT segment |
$ |
(78,930) |
|
$ |
(166,802) |
|
|
|
$ |
(88,600) |
|
$ |
(184,006) |
|
|
Homes
segment |
|
(27,154) |
|
|
- |
|
|
|
|
(62,360) |
|
|
- |
|
|
Total loss before
income taxes |
$ |
(106,084) |
|
$ |
(166,802) |
|
|
|
$ |
(150,960) |
|
$ |
$ (184,006) |
|
|
Net loss |
$ |
(97,682) |
|
$ |
(77,175) |
|
|
|
$ |
(119,858) |
|
$ |
(94,420) |
|
|
Adjusted EBITDA
(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMT segment |
$ |
52,357 |
|
$ |
70,859 |
|
|
|
$ |
245,937 |
|
$ |
236,315 |
|
|
Homes
segment |
|
(20,000) |
|
|
- |
|
|
|
|
(45,105) |
|
|
- |
|
|
Total Adjusted
EBITDA |
$ |
32,357 |
|
$ |
70,859 |
|
|
|
$ |
200,832 |
|
$ |
236,315 |
|
|
Percentage of
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMT segment |
|
(24)% |
|
|
(59)% |
|
|
|
|
(7)% |
|
|
(17)% |
|
|
Homes
segment |
|
(66)% |
|
|
N/A |
|
|
|
|
(119)% |
|
|
N/A |
|
|
Total loss before
income taxes |
|
(29)% |
|
|
(59)% |
|
|
|
|
(11)% |
|
|
(17)% |
|
|
Net loss |
|
(27)% |
|
|
(27)% |
|
|
|
|
(9)% |
|
|
(9)% |
|
|
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMT segment |
|
16% |
|
|
25% |
|
|
|
|
19% |
|
|
22% |
|
|
Homes
segment |
|
(48)% |
|
|
N/A |
|
|
|
|
(86)% |
|
|
N/A |
|
|
Total Adjusted
EBITDA |
|
9% |
|
|
25% |
|
|
|
|
15% |
|
|
22% |
|
|
(1) Other revenue primarily includes revenue generated by new
construction and display, as well as revenue from the sale of
various other marketing and business products and services to real
estate professionals. |
(2) See below for more information regarding our presentation
of Adjusted EBITDA, including a reconciliation of Adjusted EBITDA
to the most directly comparable GAAP financial measure, which is
net loss on a consolidated basis and loss before income taxes for
each segment, for each of the periods presented. |
Audience Highlights
More than 157 million average monthly unique users accessed
Zillow Group brands’ mobile apps and websites during the fourth
quarter of 2018, an increase of 4% year-over-year. Zillow Group
brands’ mobile apps and websites reached an all-time traffic high
of more than 195 million unique users in July 2018.
Visits to Zillow Group brands’ mobile apps and websites Zillow®,
Trulia®, StreetEasy® and RealEstate.com increased 12%
year-over-year to approximately 1.6 billion during the fourth
quarter of 2018. For the full year 2018, more than 7 billion visits
occurred on Zillow Group brands’ mobile apps and websites, an
increase of 14% year-over-year.
Homes Segment Results
Homes segment revenue was $41.3 million for the fourth quarter
of 2018. Homes segment GAAP loss before income taxes for the fourth
quarter of 2018 was approximately $27.2 million, or 66% of segment
revenue, and Homes segment Adjusted EBITDA was a loss of $20.0
million, or 48% of segment revenue.
During the fourth quarter of 2018, Zillow purchased 499 homes
and sold 141 homes. As of December 31, 2018, Zillow held 509 homes
in inventory, or $162.8 million in value.
In total, Zillow purchased 686 homes and sold 177 homes since
Zillow Offers launched in April 2018. Zillow Offers is currently
available in 7 markets with plans announced to be in at least 14 by
the end of 2019. After less than a year, Zillow currently receives
a request for a Zillow Offer every 5 minutes, which translates to
an estimated $100 million in demand value per day.
As of December 31, 2018, Zillow Group had $116.7 million drawn
on its credit facility for the Homes business. Zillow Group
announced the expansion of its initial credit facility from $250
million to $500 million in 2018. In addition, in early 2019, Zillow
Group entered into a second $500 million credit facility with a
different bank for the purchase of homes through certain of its
wholly owned subsidiaries. In total, Zillow Group now has $1
billion of maximum borrowing capacity to support Zillow Offers’
rapid growth in 2019 and beyond.
To help ensure profitability and to compensate for risk
exposure, Zillow charges the seller a service fee in exchange for
avoiding the hassle, time commitment and uncertainty of a
traditional home sale. During the fourth quarter of 2018, that fee
was an average of 7%. Additional unit economics disclosures are
included in the supplemental financial tables available on the
Investor Relations section of the Zillow Group website and with a
Current Report on Form 8-K as furnished to the SEC on February 21,
2019.
Internet, Media & Technology Segment
Results
Internet, Media & Technology (IMT) segment revenue of $324.0
million for the fourth quarter of 2018 grew 15% year-over-year. IMT
segment GAAP loss before income taxes for the fourth quarter of
2018 was $78.9 million, or 24% of segment revenue, and IMT segment
Adjusted EBITDA was $52.4 million, or 16% of segment revenue.
Premier Agent Premier Agent revenue grew 11%
year-over-year to $221.0 million in the fourth quarter of 2018. Due
to changes made to the Premier Agent program in 2018, the company
experienced increased advertiser account cancellations, or churn,
that began in the third quarter. Based on feedback from
advertisers about the lead validation and distribution process,
Zillow Group implemented changes to attempt to remedy the
situation. These changes have been well-received and the churn rate
has started to return to historical norms as conversion and
transaction rates are growing. However, the mid-year challenges led
to a projected cumulative annual recurring revenue shortfall in
Premier Agent revenue entering 2019, or an estimated 6 month
sell-through gap to close.
Zillow Group anticipates recovery from advertiser and total
dollar churn to occur in the first and second quarters of 2019.
These are the most challenging quarters for prior-year comparisons
in Premier Agent, when auction-based pricing drove substantial
price increases for agents ahead of the mid-year product
changes.
RentalsRentals revenue grew 21% year-over-year
to $34.9 million in the fourth quarter of 2018. The year-over-year
increase in Rentals revenue was primarily attributable to an
increase in the number of average monthly monetized, deduplicated
rental listings on Zillow Group’s mobile apps and websites, which
increased 16% year-over-year to 40,889 for the fourth quarter of
2018.
MortgagesMortgages revenue was $23.3 million in
the fourth quarter of 2018, a 26% increase year-over-year. Average
revenue per loan information request in Zillow Group’s mortgage
advertising marketplace decreased 10% year-over-year and the number
of mortgage loan information requests submitted by consumers
increased 4% year-over-year to 5.6 million.
Other RevenueOther revenue, which includes
revenue generated by New Construction, dotloop and Display, as well
as revenue from the sale of various other marketing and business
products and services to real estate professionals, grew 26%
year-over-year to $44.8 million in the fourth quarter of 2018. The
increase in Other revenue was primarily driven by approximately a
55% year-over-year increase in revenue from our New Construction
marketplace. Business Outlook - First Quarter and Full Year
2019Beginning with the quarterly report for the first
quarter of 2019, Zillow Group will report financial results and
expects to provide outlook for three segments. Mortgages will
become the third reportable segment and will include financial
results for advertising sold to mortgage lenders and other mortgage
professionals, mortgage originations through MLOA and Mortech
mortgage software solutions. Zillow Group will now provide Revenue
and Adjusted EBITDA guidance for the next reportable three-month
period and current full year for its IMT and Mortgages segments, as
well as for Premier Agent revenue within the IMT segment. For
Zillow Group’s Homes segment, the company will provide Revenue and
Adjusted EBITDA guidance only for the next reportable three-month
period. Due to the nature of the Homes segment business model and
newness of the business, longer term forecasts are highly sensitive
to small changes in performance in the near term. The following
table presents Zillow Group’s business outlook for the periods
presented (in millions, unaudited):
|
|
|
|
|
Zillow Group Outlook as of February 21, 2019 |
|
Three Months Ending March 31,
2019 |
|
Year Ending December 31,
2019 |
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
IMT segment: |
|
|
|
|
|
|
|
|
Premier
Agent |
|
$215.0 |
to |
$220.0 |
|
$905.0 |
to |
$930.0 |
Total IMT segment
revenue |
|
$293.0 |
to |
$301.0 |
|
$1,246.0 |
to |
$1,281.0 |
Homes segment |
|
$100.0 |
to |
$115.0 |
|
*** |
Mortgages segment |
|
$24.0 |
to |
$27.0 |
|
$100.0 |
to |
$115.0 |
Total revenue |
|
$417.0 |
to |
$443.0 |
|
*** |
Adjusted
EBITDA*: |
|
|
|
|
|
|
|
|
IMT segment |
|
$32.0 |
to |
$38.0 |
|
$241.0 |
to |
$266.0 |
Homes
segment |
|
($38.0) |
to |
($33.0) |
|
*** |
Mortgages
segment |
|
($8.0) |
to |
($6.0) |
|
($32.0) |
to |
($22.0) |
Total Adjusted
EBITDA |
|
($14.0) |
to |
($1.0) |
|
*** |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding — basic |
|
204.0 |
to |
206.0 |
|
207.0 |
to |
209.0 |
Weighted average shares
outstanding — diluted |
|
207.5 |
to |
209.5 |
|
210.5 |
to |
212.5 |
|
|
|
|
|
|
|
|
|
*** Outlook not
provided |
|
|
|
|
|
|
|
|
* Zillow Group has not provided a quantitative reconciliation of
forecasted Adjusted EBITDA to forecasted GAAP net income (loss) for
total Adjusted EBITDA or to forecasted GAAP income (loss) before
income taxes for segment Adjusted EBITDA within this earnings
release because the company is unable, without making unreasonable
efforts, to calculate certain reconciling items with confidence.
These items include, but are not limited to: income taxes which are
directly impacted by unpredictable fluctuations in the market price
of the company’s capital stock; depreciation and amortization
expense from new acquisitions; impairments of assets; and
acquisition-related costs. These items, which could materially
affect the computation of forward-looking GAAP net income (loss)
and income (loss) before income taxes, are inherently uncertain and
depend on various factors, many of which are outside of Zillow
Group’s control. For more information regarding the non-GAAP
financial measures discussed in this release, please see “Use of
Non-GAAP Financial Measures” below.
Conference Call and Webcast Information
Zillow Group will host a live conference call and webcast to
discuss the results today at 2 p.m. Pacific Time (5 p.m. Eastern
Time). The call will be hosted by Co-founder and CEO Rich Barton
and CFO Allen Parker. They will be joined by Co-Founder Spencer
Rascoff, Zillow Brand President and Co-head of Zillow Offers,
Jeremy Wacksman, and President of Media & Marketplaces, Greg
Schwartz. A link to the live webcast and recorded replay of the
conference call will be available on the investor relations section
of Zillow Group’s website. The live call may also be accessed
via phone at (877) 643-7152 toll-free domestically and at (443)
863-7921 internationally.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that
involve risks and uncertainties, including, without limitation:
long-term business and financial targets for the next three to five
years and other future years; the performance of Premier Agent
advertising, including churn rates and revenue, in 2019 and beyond;
as well as statements regarding our business outlook for 2019,
strategic priorities, and operational plans for 2019. Statements
containing words such as “target,” “may,” “believe,” “anticipate,”
“expect,” “intend,” “plan,” “project,” “will,” “projections,”
“continue,” “business outlook,” “forecast,” “estimate,” “outlook,”
“guidance,” or similar expressions constitute forward-looking
statements. Forward-looking statements are made based on
assumptions as of February 21, 2019, and although we believe the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee these results. Differences in
Zillow Group’s actual results from those described in these
forward-looking statements may result from actions taken by Zillow
Group as well as from risks and uncertainties beyond Zillow Group’s
control. Factors that may contribute to such differences include,
but are not limited to general economic conditions; Zillow Group’s
ability to execute on strategy; Zillow Group’s ability to maintain
and effectively manage an adequate rate of growth; Zillow Group’s
ability to innovate and provide products and services that are
attractive to its users and advertisers; Zillow Group’s investment
of resources to pursue strategies that may not prove effective;
Zillow Group’s ability to compete successfully against existing or
future competitors; changes in interest rates and other similar
factors; the impact of the real estate industry on Zillow Group’s
business; the impact of pending legal proceedings described in
Zillow Group’s filings with the Securities and Exchange Commission,
or SEC; Zillow Group’s ability to successfully integrate and
realize the benefits of its past or future strategic acquisitions
or investments; Zillow Group’s ability to maintain or establish
relationships with listings and data providers; the reliable
performance of Zillow Group’s information security systems, network
infrastructure and content delivery processes; and Zillow Group’s
ability to protect its intellectual property. The foregoing list of
risks and uncertainties is illustrative, but is not exhaustive. For
more information about potential factors that could affect Zillow
Group’s business and financial results, please review the “Risk
Factors” described in Zillow Group’s Quarterly Report on Form 10-Q
for the quarterly period ended September 30, 2018 and in Zillow
Group’s Annual Report on Form 10-K for the year ended December 31,
2018 filed with the SEC, and in Zillow Group’s other filings with
the SEC. Except as may be required by law, Zillow Group does not
intend, and undertakes no duty, to update this information to
reflect future events or circumstances.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our
financial results, this press release includes references to
Adjusted EBITDA on both a consolidated basis and for each segment
and including forecasted Adjusted EBITDA, which are non-GAAP
financial measures. We have provided a reconciliation of Adjusted
EBITDA to the most directly comparable GAAP financial measure,
which is net loss on a consolidated basis and loss before income
taxes for each segment, within this earnings release (except for
forecasted Adjusted EBITDA, as discussed above).
Adjusted EBITDA is a key metric used by our management and board
of directors to measure operating performance and trends and to
prepare and approve our annual budget. The exclusion of certain
expenses in calculating Adjusted EBITDA facilitates operating
performance comparisons on a period-to-period basis.
Our use of Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation or as a
substitute for analysis of our results as reported under GAAP. Some
of these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures or
future requirements for capital expenditures or contractual
commitments;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, our working capital needs;
- Adjusted EBITDA does not consider the potentially dilutive
impact of share-based compensation;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized may have to be replaced
in the future, and Adjusted EBITDA does not reflect cash capital
expenditure requirements for such replacements or for new capital
expenditure requirements;
- Adjusted EBITDA does not reflect impairment costs;
- Adjusted EBITDA does not reflect acquisition-related
costs;
- Adjusted EBITDA does not reflect interest expense or other
income;
- Adjusted EBITDA does not reflect income taxes; and
- Other companies, including companies in our own industry, may
calculate Adjusted EBITDA differently than we do, limiting its
usefulness as a comparative measure.
Because of these limitations, you should consider Adjusted
EBITDA alongside other financial performance measures, including
various cash flow metrics, net loss and loss before income taxes
and our other GAAP results.
About Zillow Group
Zillow Group (NASDAQ: Z) (NASDAQ: ZG) operates the largest
portfolio of real estate and home-related brands on mobile and the
web which focus on all stages of the home lifecycle: renting,
buying, selling and financing. Zillow Group is committed to
empowering consumers with unparalleled data, inspiration and
knowledge around homes, and connecting them with great real estate
professionals. The Zillow Group portfolio of consumer brands
includes real estate and rental marketplaces Zillow®, Trulia®,
Mortgage Lenders of America, StreetEasy®, HotPads®, Naked
Apartments®, RealEstate.com and Out East®. In addition, Zillow
Group provides a comprehensive suite of marketing software and
technology solutions to help real estate professionals maximize
business opportunities and connect with millions of consumers.
Zillow Offers™ provides homeowners in certain metropolitan areas
with the opportunity to receive offers to purchase their home from
Zillow. When Zillow buys a home, it makes certain repairs and
updates and lists the home for resale on the open market. Zillow
Group also owns and operates a number of business brands for real
estate, rental and mortgage professionals, including Mortech®,
dotloop®, Bridge Interactive® and New Home Feed®. Zillow Group
is headquartered in Seattle, Washington.
Please visit http://investors.zillowgroup.com,
www.zillowgroup.com/ir-blog, and www.twitter.com/zillowgroup, where
Zillow Group discloses information about the company, its financial
information, and its business which may be deemed material.
The Zillow Group logo is available at
http://zillowgroup.mediaroom.com/logos-photos.
Zillow, Premier Agent, Mortech, Bridge Interactive, StreetEasy,
HotPads, Out East and New Home Feed are registered trademarks
of Zillow, Inc. Zillow Offers is a trademark of Zillow,
Inc. Trulia is a registered trademark of Trulia, LLC.
dotloop is a registered trademark of DotLoop, LLC. Naked
Apartments is a registered trademark of Naked Apartments,
LLC. Mortgage Lenders of America, L.L.C. is an Equal Housing
Lender; NMLS #10287.
(ZFIN)
Adjusted EBITDA
The following tables set forth a reconciliation of Adjusted
EBITDA to the most directly comparable GAAP financial measure,
which is net loss on a consolidated basis and loss before income
taxes for each segment, for each of the periods presented (in
thousands, unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
|
|
|
IMT |
|
|
Homes |
|
|
Consolidated |
|
|
IMT |
|
|
Homes |
|
|
Consolidated |
|
Reconciliation
of Adjusted EBITDA to Net Loss and Loss Before Income
Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (1) |
|
|
N/A |
|
|
N/A |
|
$ |
(97,682) |
|
|
N/A |
|
|
N/A |
|
$ |
(77,175) |
|
Income tax benefit |
|
|
N/A |
|
|
N/A |
|
|
(8,402) |
|
|
N/A |
|
|
N/A |
|
|
(89,627) |
|
Loss before income
taxes |
|
$ |
(78,930) |
|
$ |
(27,154) |
|
$ |
(106,084) |
|
$ |
(166,802) |
|
$ |
- |
|
$ |
(166,802) |
|
Other income |
|
|
(5,962) |
|
|
- |
|
|
(5,962) |
|
|
(1,415) |
|
|
- |
|
|
(1,415) |
|
Depreciation and
amortization expense |
|
|
22,465 |
|
|
625 |
|
|
23,090 |
|
|
28,579 |
|
|
- |
|
|
28,579 |
|
Share-based
compensation expense |
|
|
32,934 |
|
|
4,784 |
|
|
37,718 |
|
|
29,409 |
|
|
- |
|
|
29,409 |
|
Impairment costs |
|
|
69,000 |
|
|
- |
|
|
69,000 |
|
|
174,000 |
|
|
- |
|
|
174,000 |
|
Acquisition-related
costs |
|
|
268 |
|
|
- |
|
|
268 |
|
|
97 |
|
|
- |
|
|
97 |
|
Interest expense |
|
|
12,582 |
|
|
1,745 |
|
|
14,327 |
|
|
6,991 |
|
|
- |
|
|
6,991 |
|
Adjusted
EBITDA |
|
$ |
52,357 |
|
$ |
(20,000) |
|
$ |
32,357 |
|
$ |
70,859 |
|
$ |
- |
|
$ |
70,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
|
|
|
IMT |
|
|
Homes |
|
|
Consolidated |
|
|
IMT |
|
|
Homes |
|
|
Consolidated |
|
Reconciliation
of Adjusted EBITDA to Net Loss and Loss Before Income
Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (1) |
|
|
N/A |
|
|
N/A |
|
$ |
(119,858) |
|
|
N/A |
|
|
N/A |
|
$ |
(94,420) |
|
Income tax benefit |
|
|
N/A |
|
|
N/A |
|
|
(31,102) |
|
|
N/A |
|
|
N/A |
|
|
(89,586) |
|
Loss before income
taxes |
|
$ |
(88,600) |
|
$ |
(62,360) |
|
$ |
(150,960) |
|
$ |
(184,006) |
|
$ |
- |
|
$ |
(184,006) |
|
Other income |
|
|
(19,270) |
|
|
- |
|
|
(19,270) |
|
|
(5,385) |
|
|
- |
|
|
(5,385) |
|
Depreciation and
amortization expense |
|
|
98,041 |
|
|
1,350 |
|
|
99,391 |
|
|
110,155 |
|
|
- |
|
|
110,155 |
|
Share-based
compensation expense |
|
|
135,356 |
|
|
13,728 |
|
|
149,084 |
|
|
113,571 |
|
|
- |
|
|
113,571 |
|
Impairment costs |
|
|
79,000 |
|
|
- |
|
|
79,000 |
|
|
174,000 |
|
|
- |
|
|
174,000 |
|
Acquisition-related
costs |
|
|
2,332 |
|
|
- |
|
|
2,332 |
|
|
463 |
|
|
- |
|
|
463 |
|
Interest expense |
|
|
39,078 |
|
|
2,177 |
|
|
41,255 |
|
|
27,517 |
|
|
- |
|
|
27,517 |
|
Adjusted
EBITDA |
|
$ |
245,937 |
|
$ |
(45,105) |
|
$ |
200,832 |
|
$ |
236,315 |
|
$ |
- |
|
$ |
236,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We use net loss before income taxes as our profitability
measure in making operating decisions and assessing the performance
of our segments, therefore, net loss is calculated and presented
only on a consolidated basis within our financial statements. |
|
Contacts: |
|
|
Raymond Jones |
|
Katie Curnutte |
Investor Relations |
|
Public Relations |
ir@zillowgroup.com |
|
press@zillow.com |
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