• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

Zillow/super app: creating new businesses adds risk premium

February 12, 2022
in Technology
0
Zillow/super app: creating new businesses adds risk premium
0
SHARES
16
VIEWS
Share on FacebookShare on Twitter


The folks at Zillow have lots of big ideas. The last — house flipping — struck out big time. Now, the online property listing company has found a new plan to lift it from the ashes of its home trading fiasco: a “housing super app”.

Details are vague. Boss Rich Barton wants to bring together “all the fragmented pieces of the moving process” on to one platform. Despite a lack of specifics, the company believes the super app can help the group deliver $5bn in revenue and a 45 per cent adjusted ebitda margin by 2025. Last year, Zillow made $8.1bn in revenue and reported an adjusted ebitda margin of just 2 per cent.

Caution is warranted. Barton has overpromised and underdelivered before. In 2018, he bullishly predicted that Zillow Offers, the company’s ill-fated homebuying unit, could generate $20bn in annual revenue by 2024 at the latest.

Instead, Zillow chose to shut down Offers last November after racking up big losses. Despite Friday’s rally — it has recently managed to sell off houses for more than expected — Zillow is worth just a quarter of its February 2021 peak.

Zillow lost an average of $27,609 for every home it flipped during the fourth quarter, including interest expenses, renovation and holdings costs. Losses at the homes division totalled $881.5mn before taxes for the whole of 2021. The group also took a chunky asset writedown, worth almost half of that, in the second half of last year. It still has 10,000 homes left in its inventory to sell off.

Zillow’s legacy property listing and advertising remains a bright spot. Sales were up 14 per cent during the fourth quarter and the business enjoys a healthy 46 per cent adjusted ebitda margin. Clearly, just having a solid roof overhead does not appeal to Zillow. Instead of creating Zillow 2.0, management should work on better stewardship of shareholders capital.

“Innovation is a bumpy road,” wrote Barton in his letter to shareholders. Perhaps. But some of that depends on who is driving.

If you are a subscriber and would like to receive alerts when Lex articles are published, just click the button “Add to myFT”, which appears at the top of this page above the headline.

Tags: addsappBusinessesCreatingPremiumriskZillowsuper
Previous Post

EU medical watchdog probes link between Pfizer and Moderna’s Covid vaccines and irregular periods

Next Post

Liberals to lose Bega electorate to Labor after holding it for 33 YEARS in NSW by-election

Related Posts

Mimicking the function of Ruffini receptors using a bio-inspired artificial skin
Technology

Mimicking the function of Ruffini receptors using a bio-inspired artificial skin

Credit: Nature Machine Intelligence (2022)....

Read more
To beat the summer heat, passive cooling really works
Technology

To beat the summer heat, passive cooling really works

Credit: Pixabay/CC0 Public Domain Opening...

Read more
An AI system trained to find an equitable policy for distributing public funds in an online game
Technology

An AI system trained to find an equitable policy for distributing public funds in an online game

Illustration of the game and...

Read more
Study finds toxicity in the open-source community varies from other internet forums
Technology

Study finds toxicity in the open-source community varies from other internet forums

Credit: Pixabay/CC0 Public Domain Trolls,...

Read more
A model that allows robots to follow and guide humans in crowded environments
Technology

A model that allows robots to follow and guide humans in crowded environments

The agent introduced by the...

Read more
Load More
Next Post
Liberals to lose Bega electorate to Labor after holding it for 33 YEARS in NSW by-election

Liberals to lose Bega electorate to Labor after holding it for 33 YEARS in NSW by-election

  • Trending
  • Comments
  • Latest
Model Christy Giles found dead on footpath after night out in LA

Model Christy Giles found dead on footpath after night out in LA

‘RHOBH’ Star Stormed Out of Kyle Richards’ House After ‘Big Fight’

‘RHOBH’ Star Stormed Out of Kyle Richards’ House After ‘Big Fight’

Horror as goat gives birth to ‘humanoid kid’ with baby-like face

Ex-porn star Lana Rhoades flaunts 2.5st weight loss two weeks after giving birth

Ex-porn star Lana Rhoades flaunts 2.5st weight loss two weeks after giving birth

31 July Prompts to Heat up Your Socials This Summer

31 July Prompts to Heat up Your Socials This Summer

Computer scientists create tool that can desegregate schools – and shorten bus routes

Computer scientists create tool that can desegregate schools – and shorten bus routes

How to Stop Procrastinating and Get Things Done with ADHD

How to Stop Procrastinating and Get Things Done with ADHD

Cherry Ice Cream – Barefeet in the Kitchen

Cherry Ice Cream – Barefeet in the Kitchen

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

31 July Prompts to Heat up Your Socials This Summer

31 July Prompts to Heat up Your Socials This Summer

Computer scientists create tool that can desegregate schools – and shorten bus routes

Computer scientists create tool that can desegregate schools – and shorten bus routes

31 July Prompts to Heat up Your Socials This Summer

31 July Prompts to Heat up Your Socials This Summer

Computer scientists create tool that can desegregate schools – and shorten bus routes

Computer scientists create tool that can desegregate schools – and shorten bus routes

How to Stop Procrastinating and Get Things Done with ADHD

How to Stop Procrastinating and Get Things Done with ADHD

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Posting....