‘Super app’ success helped Zillow outperform the market in 2024 

Even as home sales sunk to 30-year lows in 2024, Zillow continued its streak of double-digit revenue gains — and its so-called "super app" appeared to play a key role.

The company once again beat investor expectations in the fourth quarter, reporting $554 million in revenue — a 17% increase year-over-year. Full-year revenue totaled $2.2 billion, up 15% compared to 2023. 

Despite the big gains, Zillow's stock dropped more than 6% in the first hour of after-hours trading.

1 in 5 customers now using bundled 'super app' services

Zillow hit an important goal in 2024, CEO Jeremy Wacksman told Real Estate News in a phone interview: 21% of Zillow's customers used the company's bundled app services, which help consumers navigate the different stages of a real estate transaction, including getting a mortgage through Zillow Loans.

In 2025, the company is aiming to reach 35% of its user base as it enters more markets. Eventually, Wacksman said, they hope 75% of customers will be using the app services; the percentage itself is more of a milepost, he noted, but said that engaging the majority of their customers is the overall goal.

Home loans and rentals were major revenue drivers

While residential revenue was up 11%, mortgage revenue was particularly strong in the fourth quarter, increasing 86% year-over-year to $41 million, while loan originations were up 90% in the same period — in spite of elevated mortgage rates tamping down overall loan volume.

Wacksman credits that growth to the company's bundling of mortgage services within the consumer app and its decision to add more loan officers throughout 2024.

Rental revenue was also up significantly, increasing 25% year-over-year in the fourth quarter to $116 million, driven mostly by multifamily listings.

What Zillow had to say

Zillow is looking to increase its market share in 2025, but Wacksman acknowledged that the real estate market will remain challenging for agents as well as buyers and sellers. 

Elevated mortgage rates will keep the market subdued in the first half of the year, Wacksman told investors, but he expects rates to tick down in the second half of the year. Still, he said with pending sales down in December and January, that's adding up to a slow start to another "muted" year for the market.

"But the good news is homes are still trading. People are still moving, and we're trying to find ways to help them get it done," Wacksman said. 

"One of the most important things we can do is educate the buyer on how this works and then when they're ready, introduce them to great agents. That's what we're focused on. From a company standpoint, that's going to help us grow our revenue and continue to grow our market share."

Notable moves

In conjunction with its earnings release, Zillow announced a new partnership with Redfin. Similar to an agreement made with Realtor.com last March, Zillow will be the exclusive provider of multifamily rental listings on Redfin and its sites Rent.com and ApartmentGuide.com. 

"Renters want choices, and this partnership will deliver just that — more apartments available across more platforms," Wacksman said. "What's good for renters is good for our multifamily partners, too. This agreement will give them additional opportunities to connect with ready-to-move renters, helping them grow their businesses. Adding the Redfin sites to the Zillow Rentals Network helps us scale our impact and drive continued growth for our multifamily partners and our business."

Zillow had 50,000 multifamily properties advertising across its platform as of December 2024, up from 37,000 properties a year ago, the company said in a news release.

Key numbers

Revenue: $554 million for the quarter, which was up 17% year-over-year. Full-year revenue was $2.2 billion, up 15% compared to 2023.

Cash and investments: $1.9 billion, down from $2.2 billion at the end of Q3 2024. 

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $112 million in Q4, representing 20% of total revenue.

Net income/loss: A net loss of $52 million in Q4, which was an improvement from the $73 million loss a year ago. For the year, the net loss was $112 million; in 2023, the company reported $158 million in net losses.

Traffic and visits: Traffic across all Zillow Group websites and apps totaled 204 million average monthly unique users in Q4, up 3% year-over-year, the company said. Total visits were 2.4 billion in Q4, also up 3% year-over-year.