Zillow Loses $73M, Fourth Quarterly Loss of 2023

Zillow ended last year with another quarterly loss, though executives said they’re doubling down on growth through its “housing super app.”

The company lost $73 million in the fourth quarter of 2023 — its fourth consecutive quarterly loss. The decline was on par with the net loss the firm reported in the same period in 2022.

Zillow reported $474 million in revenue last quarter, up from $435 million in the same period in 2022. The firm’s adjusted EBITDA was $69 million in the fourth quarter, down from $73 million.

Zillow CEO and co-founder Rich Barton said the company is continuing to monitor the antitrust lawsuits over broker commissions. He added that the firm is poised for continued expansion and adaptation, despite the headwinds facing the industry.

The firm also launched a website, advocacy.zillowgroup.com, which outlines Zillow’s support for policies that increase transparency for consumers and independent representation for buyers and sellers.

Barton noted that the firm backed legislation in Washington state that would require buyer’s agreements. He also said the company was working closely with officials in New York to advocate for legislation related to issues such as rental affordability.

“Zillow is well positioned for all weather,” Barton said. “All roads lead to Zillow.”

But it’s still largely reliant on the market for home sales, the weather for which was lousy in 2023, thanks to low inventory and elevated high mortgage rates. Some modest signs of improvement have appeared this year.

The firm’s rental segment continued to grow last quarter, up 37 percent year-over-year to $93 million in revenue. The company credited the revenue jump to an increase in multifamily listings on its site, up to 37,000 at the end of the fourth quarter.

Earlier this month, the company announced that it would allow individual room listings on its rental marketplace.

Revenue from Zillow’s mortgage segment rose to $22 million last quarter, up from $18 million in the fourth quarter of 2022.

The company in 2022 began integrating Zillow Home Loans with its Premiere Agent program in certain “enhanced markets,” which included Denver, Phoenix, Atlanta, Raleigh, Charlotte, Durham, Las Vegas, Orlando and Riverside.

Last month, it added Los Angeles, Portland, Sacramento and San Diego, and company executives said it would continue to roll out enhanced markets in 2024.