Zillow’s new ‘hood looks financially edgy

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Zillow has rapidly moved from the online world into the real one, but its new neighborhood is distinctly riskier than the one it formerly inhabited, writes rob_cyran.

Zillow said on Nov. 7 that revenue in the third quarter was $745 million, more than double what it reported in the same period last year. The company’s Homes unit, which buys and sells houses, had $384 million of revenue, compared to $11 million a year earlier.

Zillow lost $64.6 million in the quarter, or 31 cents per share. In the same period last year, it lost just under $500,000. The company now offers to buy homes in 21 markets. During the quarter it sold 1,211 homes and ended the quarter with 2,822 homes on its balance sheet.

 

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