Zillow Lowers Outlook, Names New CFO
November 06 2018 - 5:36PM
Dow Jones News
By Aisha Al-Muslim
Shares of Zillow Group Inc. (ZG) dropped 20% in after-hours
trading Tuesday after the online real-estate company missed revenue
expectations for its latest quarter and lowered its outlook for the
full year.
Zillow on Tuesday reported a net loss for the third quarter of
$492,000, or zero cents a share, down from a profit of $9.2
million, or 5 cents a share, a year earlier. Analysts polled by
Refinitiv were looking for a loss of 1 cent a share.
Total revenue for Zillow, which brands including Trulia,
StreetEasy and RealEstate.com, rose 22% to $343.1 million, missing
the consensus forecast of $344.2 million. The revenue growth was
driven primarily by the company's premier agent, rentals and new
construction marketplaces.
For 2018, the company guided revenue of $1.277 billion or $1.284
billion, down from its previous estimate of $1.32 billion to $1.35
billion.
For the fourth quarter, the company guided total revenue of $340
million to $357 million, compared with analysts' estimates of
$367.8 million.
Separately, Zillow named former Amazon.com Inc. executive Allen
Parker as the company's next chief financial officer, Zillow
announced Tuesday.
Mr. Parker will begin his role as CFO of Zillow on Nov. 16 and
report to Chief Executive Spencer Rascoff. Interim CFO Jennifer
Rock will continue on with her position as chief accounting
officer, the company said.
Mr. Parker's annual salary will be $540,000, according to a
regulatory filing Tuesday. Mr. Parker will also receive a sign-on
bonus of $1.5 million payable in two equal installments. He will
also be eligible to receive an equity award with an aggregate value
of $2.5 million, according to the filing.
Mr. Parker spent the last 13 years in finance roles at Amazon.
Since 2011, Parker served as vice president of finance for Amazon
devices, Appstore & Amazon Pay. While at Amazon, Mr. Parker
also worked on the acquisitions of Whole Foods Market and Ring,
Zillow said.
Before joining Amazon, Mr. Parker was CFO and vice president of
strategic planning at Trane Residential Systems. Prior to that,
Parker held various leadership roles at General Electric Lighting,
including director of global business development and global
controller.
Through Tuesday's close, shares of Zillow are down 0.5% in the
last 12 months and down 31% in the past three months.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
November 06, 2018 17:21 ET (22:21 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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