Zillow Group, Inc. (ZG): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Zillow Group, Inc. (ZG), became the most visited real estate website in the United States? As Zillow reimagines real estate to make it easier to unlock life's next chapter, with a mission to help more people get home — with speed, certainty and ease, it's worth exploring the journey of this $17.3 billion market cap company. Keep reading to discover the history, ownership structure, and the ingenious ways Zillow makes money, contributing to its $2.23 billion in revenue for 2024.

Zillow Group, Inc. (ZG) History

The story of Zillow begins with a vision to revolutionize the real estate industry through the power of information. Founded by former Microsoft executives Rich Barton and Lloyd Frink, the company aimed to empower consumers with data and tools previously only accessible to industry insiders.

Zillow's Founding Timeline

Year established

Zillow was officially established in 2006.

Original location

The company was founded in Seattle, Washington.

Founding team members

The key figures behind Zillow's creation are:

• Rich Barton: Co-founder and first CEO, known for his previous success with Expedia.
• Lloyd Frink: Co-founder and former Vice President at Microsoft.

Initial capital/funding

Zillow secured $32 million in Series A funding from Technology Crossover Ventures and Benchmark Capital.

Zillow's Evolution Milestones

Zillow's Transformative Moments

• Focus on Data and Transparency: From its inception, Zillow prioritized making real estate data accessible to the public. This commitment reshaped how consumers research and make decisions about properties.
• Strategic Acquisitions: The acquisitions of companies like Postlets and Trulia significantly expanded Zillow's market reach and service offerings, solidifying its dominance in the online real estate space.
• Entry and Exit from iBuying: The launch and subsequent shutdown of Zillow Offers represented a bold but ultimately unsuccessful attempt to disrupt the traditional real estate transaction model. This venture led to substantial financial losses and a strategic shift back towards its core business.
• Evolution of Business Model: Zillow's business model has evolved from advertising-based revenue to include various services such as mortgage origination and property management tools, reflecting its adaptability to changing market conditions.

To gain further insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Zillow Group, Inc. (ZG).

Zillow Group, Inc. (ZG) Ownership Structure

Zillow Group Inc. features a mixed ownership structure, blending public shareholders with key institutional and individual stakeholders who significantly influence the company's strategic direction.

Zillow Group, Inc.'s Current Status

Zillow Group, Inc. is a publicly traded company, meaning its shares are available for purchase on the stock market by the general public. It is listed on NASDAQ under the tickers 'ZG' and 'Z'. This allows anyone to invest in the company. Being public also means that Zillow Group is subject to regulatory oversight and must regularly disclose financial information.

Zillow Group, Inc.'s Ownership Breakdown

Understanding Zillow Group's ownership structure involves recognizing the mix of institutional, individual, and mutual fund holders. These entities have varying degrees of influence on the company's decisions, performance, and strategic direction.

Zillow Group, Inc.'s Leadership

Zillow Group is guided by a team of experienced leaders who steer the company's strategic initiatives and operational execution. Here are some of the key figures in Zillow Group's leadership:

• Lloyd Frink serves as the Executive Chairman.
• Richard N. Barton is the Chief Executive Officer.
• Jeremy Wacksman is the Chief Operating Officer.

To gain further insights into Zillow Group's mission, vision, and core values, check out this resource: Mission Statement, Vision, & Core Values of Zillow Group, Inc. (ZG).

Zillow Group, Inc. (ZG) Mission and Values

Zillow Group aims to provide people with the data, inspiration, and know-how around all things home and connect them with the best local experts to help guide the way. Its core values include moving fast, thinking big, and owning outcomes, reflecting a commitment to innovation and customer satisfaction.

Zillow Group's Core Purpose

Official mission statement

Zillow Group's mission statement is:

To give people the power to unlock life's next chapter.

This mission is supported by several key elements:

• Data and Information: Providing comprehensive data and resources about homes.
• Empowerment: Giving individuals the tools and knowledge to make informed decisions.
• Life Transitions: Focusing on significant life events and changes related to housing.

Vision statement

Zillow Group's vision statement is:

• Building a seamless, on-demand real estate experience.

This vision is brought to life through:

• Seamless Experience: Creating a smooth and integrated process for buying, selling, renting, and financing homes.
• On-Demand Services: Offering immediate access to real estate services and information.

Company slogan/tagline

Zillow's tagline is:

• 'To help people unlock life’s next chapter.'

You can explore more about Zillow Group's mission and vision here: Mission Statement, Vision, & Core Values of Zillow Group, Inc. (ZG).

Zillow Group, Inc. (ZG) How It Works

Zillow Group, Inc. operates as an online real estate marketplace, providing users with tools and information to buy, sell, rent, and finance properties. The company's platforms connect consumers with real estate professionals and offer various services throughout the real estate transaction lifecycle. For more in-depth information, check out Mission Statement, Vision, & Core Values of Zillow Group, Inc. (ZG).

Zillow Group's Product/Service Portfolio

Zillow Group's Operational Framework

Zillow Group's operations are centered around its online platform, which aggregates real estate data and connects various stakeholders in the real estate market. Key aspects of its operational framework include:

• Data Aggregation and Management: Zillow collects and manages vast amounts of real estate data, including property listings, sales data, and market trends. This data is used to provide users with comprehensive information about properties and neighborhoods.
• Platform Development and Maintenance: Zillow invests heavily in developing and maintaining its online platform, ensuring a user-friendly experience and incorporating new features and technologies.
• Sales and Marketing: Zillow employs a sales and marketing team to attract and retain users, as well as to sell advertising and other services to real estate professionals.
• Partnerships: Zillow partners with real estate brokerages, agents, and other industry players to expand its reach and offer a wider range of services.

Zillow Group's Strategic Advantages

Zillow Group's success in the online real estate market can be attributed to several strategic advantages:

• Brand Recognition: Zillow is a well-known and trusted brand in the real estate industry, giving it a competitive edge in attracting users and partners.
• Data Advantage: Zillow's extensive database of real estate information provides a valuable resource for consumers and professionals.
• Network Effect: The more users and partners Zillow attracts, the more valuable its platform becomes, creating a network effect that reinforces its market position.
• Innovation: Zillow continuously invests in innovation, developing new tools and services to meet the evolving needs of the real estate market.

Zillow Group, Inc. (ZG) How It Makes Money

Zillow Group, Inc. primarily generates revenue through its various real estate-related services, including advertising, real estate transactions, and mortgage origination.

Zillow Group, Inc.'s Revenue Breakdown

Zillow Group, Inc.'s Business Economics

Zillow Group, Inc.'s business economics are driven by several key factors:

• Premier Agent Program: This program allows real estate agents to advertise on Zillow's platform. Agents pay for prominent placement and enhanced visibility, driving leads and potential clients. The pricing is typically based on impression, geography, and the agent's desired level of exposure.
• Mortgage Origination: Zillow earns revenue through originating mortgages, gaining from interest and fees associated with these loans. Economic factors such as interest rates, housing market activity, and regulatory changes significantly impact this revenue stream.
• Rentals: Landlords and property managers pay to list rental properties on Zillow's platform. Revenue is generated through subscription fees and other advertising services.
• Display Advertising: Zillow generates revenue by selling advertising space to various businesses, including home improvement companies, insurance providers, and other related services.

These revenue streams are influenced by broader economic trends, such as housing market conditions, interest rates, and consumer confidence. Zillow's ability to innovate and adapt to changing market dynamics is crucial for maintaining and growing its revenue.

Zillow Group, Inc.'s Financial Performance

Zillow Group, Inc.'s financial performance can be assessed through the following key points:

• Zillow Group's total revenue for the fiscal year 2024 was approximately $2 billion.
• Premier Agent revenue was approximately $1.36 billion in fiscal year 2024.
• The company's gross profit margin for the fiscal year 2024 was about 70%.
• Zillow Group, Inc. is focused on improving its financial performance through cost management and strategic investments in its core business segments.

To gain more insights into Zillow Group, Inc.'s mission and vision, check this link: Mission Statement, Vision, & Core Values of Zillow Group, Inc. (ZG).

Zillow Group, Inc. (ZG) Market Position & Future Outlook

Zillow Group, Inc. is navigating a dynamic real estate landscape, leveraging its brand recognition and data resources to maintain a competitive edge while facing evolving market conditions.

Competitive Landscape

Opportunities & Challenges

Industry Position

Zillow holds a significant position in the online real estate market, characterized by:

• Market Leadership: Zillow is a leading online real estate marketplace, attracting a large audience of home buyers, sellers, and renters.
• Brand Recognition: The company benefits from strong brand awareness and trust among consumers.
• Data Advantage: Zillow possesses vast amounts of real estate data, which it uses to power its services and provide valuable insights to users.

To gain more insights into the company's guiding principles, visit: Mission Statement, Vision, & Core Values of Zillow Group, Inc. (ZG).