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8-K - FORM 8-K - ZILLOW INCd870966d8k.htm

Exhibit 99.1

 

LOGO

 

Contacts:
Raymond Jones Katie Curnutte
Investor Relations Public Relations
206-470-7137 206-757-2785
ir@zillow.com press@zillow.com

ZILLOW, INC. REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2014

RESULTS; ANNOUNCES DATE TO CLOSE TRULIA ACQUISITION

 

    Record quarterly Revenue of $92.3 million, up 58% over fourth quarter 2013.

 

    Record Real Estate Revenue of $70.8 million led by record Premier Agent advertiser Revenue, up 73% over fourth quarter 2013.

 

    Acquisition of Trulia is expected to close as early as February 17.

SEATTLE – February 13, 2015 – Zillow, Inc. (NASDAQ:Z), the leading real estate and home-related marketplace, today announced financial results for the quarter and full year ended December 31, 2014. In addition, Zillow announced it expects to close the previously announced acquisition of Trulia, Inc. as early as February 17, 2015, following notification from the Federal Trade Commission that it has closed its investigation.

“Simply stated, 2014 was a remarkable year for Zillow with record revenue, record mobile usage and record Premier Agent advertiser revenue,” said Spencer Rascoff, Zillow CEO. “And we expect to close the acquisition of Trulia as early as February 17.”

Fourth Quarter 2014 Financial Highlights

 

    Revenue increased 58% to a record $92.3 million from $58.3 million in the fourth quarter of 2013.

 

    Marketplace Revenue increased 69% to a record $78.2 million from $46.2 million in the fourth quarter of 2013.

 

    Real Estate Revenue grew 73% to a record $70.8 million from $40.9 million in the fourth quarter of 2013. Premier Agent revenue grew 76% year over year.

 

    Mortgages Revenue grew 38% to a record $7.4 million from $5.3 million in the fourth quarter of 2013.

 

    Display Revenue increased 17% to $14.1 million from $12.1 million in the fourth quarter of 2013.


    Basic and diluted GAAP net loss per share was $0.27 in the fourth quarter of 2014 compared to basic and diluted GAAP earnings per share of $0.07 and $0.06, respectively, in the same period last year. The fourth quarter of 2014 results include the impact of approximately $0.20 on basic and diluted GAAP net loss per share from acquisition-related costs due to the company’s acquisition of Trulia, Inc.

 

    Basic and diluted non-GAAP net income per share was $0.26 and $0.24, respectively, in the fourth quarter of 2014 compared to basic and diluted non-GAAP net income per share of $0.21 and $0.19, respectively, in the same period last year. Basic and diluted non-GAAP net income per share excludes share-based compensation expense, acquisition-related costs, impairment of certain acquired intangible assets and the 2013 income tax benefit.

 

    GAAP net loss was $10.9 million in the fourth quarter of 2014 compared to GAAP net income of $2.7 million in the same period last year. The fourth quarter of 2014 results include the impact of $8.1 million of acquisition-related costs due to the company’s acquisition of Trulia, Inc.

 

    Adjusted EBITDA was a record $20.0 million in the fourth quarter of 2014, or 22% of revenue, which was an increase from $15.4 million in the fourth quarter of 2013, or 26% of revenue.

Full Year 2014 Financial Highlights

 

    Revenue increased 65% to a record $325.9 million from $197.5 million in 2013.

 

    Marketplace Revenue increased 73% to a record $267.2 million from $154.7 million in 2013.

 

    Real Estate Revenue grew 80% to a record $239.0 million from $132.9 million in 2013.

 

    Mortgages Revenue grew 29% to a record $28.2 million from $21.8 million in 2013.

 

    Display Revenue increased 37% to a record $58.7 million from $42.8 million in 2013.

 

    Basic and diluted GAAP net loss per share was $1.09 in 2014 compared to basic and diluted GAAP net loss per share of $0.35 in 2013. The 2014 results include the impact of approximately $0.54 on basic and diluted GAAP net loss per share from acquisition-related costs, primarily due to the company’s acquisition of Trulia, Inc.

 

    Basic and diluted non-GAAP net income per share was $0.38 and $0.35, respectively, in 2014 compared to basic and diluted non-GAAP net income per share of $0.20 and $0.18, respectively, in 2013.

 

    Due primarily to planned increases in advertising expenses and acquisition-related costs due to the company’s acquisition of Trulia, Inc., GAAP net loss was $43.6 million in 2014, compared to GAAP net loss of $12.5 million in 2013. The 2014 results include the impact of $21.5 million from acquisition-related costs due to the company’s acquisition of Trulia, Inc.

 

    Adjusted EBITDA was a record $49.8 million in 2014, or 15% of revenue, which compares to $30.1 million in 2013, or 15% of revenue.

 

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Operating and Business Highlights

 

    Zillow’s audience continues to grow substantially, extending the company’s category leadership. Average monthly unique users during the three months ended December 31, 2014 were nearly 77 million, up 41% year-over-year. For additional information, see “Key Growth Drivers” below.

 

    During the fourth quarter of 2014, visits to Zillow via a mobile device increased 57% year-over-year, and in December 2014, 420 million homes were viewed on Zillow via a mobile device, which equates to 157 homes per second. Nearly two-thirds of Zillow’s visits come from a mobile device; on weekends it’s more than 70%.

 

    Premier Agent advertisers spent a record amount with Zillow in the fourth quarter of 2014. Premier Agent revenue reached an annualized run rate of more than $268 million in the quarter, compared to a $157 million run-rate at this time last year. Zillow added 1,428 net new Premier Agent advertisers in the fourth quarter for a total of 62,305 as of December 31, 2014, with average revenue per advertiser reaching a record $359, up from $271 in the same period last year. Premier Agent advertisers who have been on the platform more than 12 months spent 59% more in the fourth quarter this year than a year ago. In the fourth quarter, 60% of Premier Agent bookings came from existing agents buying more impressions.

 

    Zillow Mortgages continues to grow remarkably in the face of challenging trends across the mortgage industry. While the Mortgage Bankers Association reported a year-over-year decline in total originations of 39%1, Zillow Mortgages saw loan requests grow 66% year over year to approximately 7.4 million during the fourth quarter. The vast majority of these requests were for purchase loans, which also include Zillow pre-approval submissions. As of the end of the fourth quarter, consumers have submitted over 125,000 lender reviews to Zillow Mortgages.

 

    Zillow’s New York City marketplace, StreetEasy, achieved record annual revenue for 2014 resulting from significant annual growth in mobile and Web traffic, listings page views, and contacts delivered to brokers.

 

    In 2014, Zillow created more new partnerships across the real estate industry than in any prior year.

 

    The Zillow Partnership Platform more than doubled the amount of participating MLSs in 2014, accounting for an additional 300,000 listings coming directly to Zillow.

 

    Zillow Pro for Brokers added 3,800 new brokers to the program, bringing more than 100,000 listings to Zillow during the year.

 

    In January 2015, the company announced the Zillow Data Dashboard, a new listing management and reporting platform that puts increased control of listings in the hands of MLS members and brokers. Zillow expects to directly connect with a total of 1.6 million for-sale-by-agent listings by April 2015.

 

    Zillow Tech Connect added 45 new technology solutions in 2014 for the agents and brokers who use Zillow to manage their contacts.

 

    In January, Zillow kicked off “Zillow’s Housing Roadmap to 2016,” a national tour to explore the housing issues Americans face in their neighborhoods and communities, and how they affect the

 

1  Source: Mortgage Bankers Association Mortgage Finance Forecast as of January 2015.

 

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nation as a whole. The tour kicked off in Washington, D.C. and included an online fireside chat with Secretary of Housing and Urban Development Julian Castro moderated by Zillow Chief Economist Stan Humphries.

Quarterly Conference Call

Zillow, Inc. will not host a fourth quarter and full year 2014 earnings conference call. However, Zillow management will host a conference call to discuss the close of the Trulia, Inc. acquisition on February 18, 2015, the day after the expected close of the acquisition. The call will begin at 6 a.m. Pacific Time (9 a.m. Eastern Time), and it will also be webcast live. The live webcast of the conference call will be available on the investor relations section of Zillow, Inc.’s website at http://investors.zillow.com/. For those without access to the Internet, the call may be accessed toll-free via phone at 877-643-7152 with conference ID# 61427387. Callers outside the United States may dial 443-863-7921 with conference ID# 61427387. Following completion of the call, a recorded replay of the webcast will be available on the investor relations section of Zillow, Inc.’s website at http://investors.zillow.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding our expectations related to the closing of the acquisition of Trulia, Inc. and the number of for-sale-by-agent listings we expect to directly receive through the Zillow Data Dashboard in 2015. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “will,” “projections,” “continue,” “business outlook,” “estimate,” “outlook,” or similar expressions constitute forward-looking statements. Differences in Zillow’s actual results from those described in these forward-looking statements may result from actions taken by Zillow as well as from risks and uncertainties beyond Zillow’s control. Factors that may contribute to such differences include, but are not limited to, Zillow’s ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments, including our proposed acquisition of Trulia, Inc.; Zillow’s ability to maintain and effectively manage an adequate rate of growth; Zillow’s ability to maintain or establish relationships with listings and data providers; the impact of the real estate industry on Zillow’s business; Zillow’s ability to innovate and provide products and services that are attractive to its users and advertisers; Zillow’s ability to increase awareness of the Zillow brand; Zillow’s ability to attract consumers to Zillow’s mobile applications and websites; Zillow’s ability to compete successfully against existing or future competitors; the reliable performance of Zillow’s network infrastructure and content delivery processes; and Zillow’s ability to protect its intellectual property. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For more information about potential factors that could affect Zillow’s business and financial results, please review the “Risk Factors” described in Zillow’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 filed with the Securities and Exchange Commission, or SEC, and in Zillow’s other filings with the SEC. Except as may be required by law, Zillow does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

 

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Additional Information and Where to Find It

In connection with the proposed acquisition of Trulia, Inc. (the “Proposed Transaction”), a new holding company, Zebra Holdco, Inc. (“Holdco”), filed a Registration Statement on Form S-4 with the SEC (the “Registration/Joint Proxy Statement”), which includes a registration statement and final prospectus with respect to Holdco’s shares to be issued in the Proposed Transaction and a definitive joint proxy statement of Zillow and Trulia, Inc. with respect to the Proposed Transaction. The Registration/Joint Proxy Statement was declared effective by the SEC on November 17, 2014. INVESTORS AND SECURITYHOLDERS ARE URGED TO READ THE REGISTRATION/JOINT PROXY STATEMENT REGARDING THE PROPOSED TRANSACTION BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders can obtain free copies of the Registration /Joint Proxy Statement at the SEC’s website at www.sec.gov. Copies of the Registration/Joint Proxy Statement, and the filings that are incorporated by reference therein, may also be obtained, without charge, by contacting Zillow Investor Relations at (206) 470-7137 or by going to Zillow’s website, www.zillow.com, under the heading “Investors”. These documents may also be obtained, without charge, by contacting Trulia Investor Relations at (415) 400-7238 or going to Trulia’s website, www.trulia.com, under the tab “Investor Relations”.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA as well as non-GAAP net income per share, both of which are non-GAAP financial measures. We have provided a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, and a reconciliation of net income, adjusted, to net income (loss), as reported on a GAAP basis, and the calculation of non-GAAP net income per share—basic and diluted, within this earnings release.

Adjusted EBITDA is a key metric used by our management and board of directors to measure operating performance and trends, and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

 

    Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

 

    Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

 

    Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation expense;

 

    Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

 

 

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    Adjusted EBITDA does not reflect the impairment of certain acquired intangible assets;

 

    Adjusted EBITDA does not reflect acquisition-related costs;

 

    Adjusted EBITDA does not reflect the impact of income taxes; and

 

    Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss) and our other GAAP results.

Our presentation of non-GAAP net income per share excludes the impact of share-based compensation expense, acquisition-related costs and the 2013 income tax benefit. This measure is not a key metric used by our management and board of directors to measure operating performance or otherwise manage the business. However, we provide non-GAAP net income per share as supplemental information to investors, as we believe the exclusion of share-based compensation expense, acquisition-related costs and the income tax benefit facilitates investors’ operating performance comparisons on a period-to-period basis. You should not consider these metrics in isolation or as substitutes for analysis of our results as reported under GAAP.

About Zillow, Inc.

Zillow, Inc. (NASDAQ: Z) operates the leading real estate and home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. Zillow’s brands serve the full lifecycle of owning and living in a home: buying, selling, renting, financing, remodeling and more. In addition, Zillow offers a suite of tools and services to help local real estate, mortgage, rental and home improvement professionals manage and market their businesses. Welcoming nearly 87 million monthly unique users in January 2015, the Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgages, Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Mortech®, HotPads®, StreetEasy® and Retsly. Zillow is headquartered in Seattle.

Please visit http://investors.zillow.com/, www.zillowblog.com, www.twitter.com/zillow, www.twitter.com/ZillowforPros, and www.facebook.com/zillow, where Zillow discloses information about the company, its financial information, and its business which may be deemed material.

The Zillow logo is available at http://zillow.mediaroom.com/logos.

Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions, StreetEasy, HotPads and Digs are registered trademarks of Zillow, Inc. Retsly is a trademark of Zillow, Inc.

(ZFIN)

 

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ZILLOW, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     December 31,
2014
    December 31,
2013
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 125,765      $ 201,760   

Short-term investments

     246,829        93,531   

Accounts receivable, net

     18,684        15,234   

Prepaid expenses and other current assets

     10,059        4,987   
  

 

 

   

 

 

 

Total current assets

  401,337      315,512   

Long-term investments

  83,326      142,435   

Property and equipment, net

  41,600      27,408   

Goodwill

  96,352      93,213   

Intangible assets, net

  26,757      29,149   

Other assets

  358      346   
  

 

 

   

 

 

 

Total assets

$ 649,730    $ 608,063   
  

 

 

   

 

 

 

Liabilities and shareholders’ equity

Current liabilities:

Accounts payable

$ 9,358    $ 4,724   

Accrued expenses and other current liabilities

  16,883      10,601   

Accrued compensation and benefits

  6,735      4,440   

Deferred revenue

  15,356      12,298   

Deferred rent, current portion

  864      546   
  

 

 

   

 

 

 

Total current liabilities

  49,196      32,609   

Deferred rent, net of current portion

  11,755      7,658   

Shareholders’ equity:

Class A common stock

  3      3   

Class B common stock

  1      1   

Additional paid-in capital

  716,506      651,913   

Accumulated deficit

  (127,731   (84,121
  

 

 

   

 

 

 

Total shareholders’ equity

  588,779      567,796   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

$ 649,730    $ 608,063   
  

 

 

   

 

 

 

 

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ZILLOW, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

     Three Months Ended     Year Ended  
     December 31,     December 31,  
     2014     2013     2014     2013  

Revenue

   $ 92,329      $ 58,348      $ 325,893      $ 197,545   

Costs and expenses:

        

Cost of revenue (exclusive of amortization) (1)(2)

     8,825        5,270        29,461        18,810   

Sales and marketing (2)

     37,818        24,978        167,725        108,891   

Technology and development (2)

     28,256        14,649        86,406        48,498   

General and administrative (2)

     20,535        10,552        65,503        37,919   

Acquisition-related costs

     8,109        175        21,493        376   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     103,543        55,624        370,588        214,494   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (11,214     2,724        (44,695     (16,949

Other income

     317        145        1,085        385   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (10,897     2,869        (43,610     (16,564

Income tax benefit (expense)

     —          (154     —          4,111   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (10,897   $ 2,715      $ (43,610   $ (12,453
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share — basic

   $ (0.27   $ 0.07      $ (1.09   $ (0.35

Net income (loss) per share — diluted

   $ (0.27   $ 0.06      $ (1.09   $ (0.35

Weighted-average shares outstanding — basic

     40,600        39,050        40,009        36,029   

Weighted-average shares outstanding — diluted

     40,600        42,116        40,009        36,029   

(1)    Amortization of website development costs and intangible assets included in technology and development

   $ 8,374      $ 5,999      $ 29,487      $ 19,791   

(2)    Includes share-based compensation expense as follows:

        

Cost of revenue

   $ 564      $ 213      $ 1,844      $ 737   

Sales and marketing

     2,434        1,094        7,320        10,969   

Technology and development

     3,852        1,607        11,681        4,660   

General and administrative

     3,059        2,141        13,240        7,070   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 9,909      $ 5,055      $ 34,085      $ 23,436   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Financial Data:

        

Adjusted EBITDA (3)

   $ 19,978      $ 15,397      $ 49,766      $ 30,117   

 

(3) See above for more information regarding our presentation of Adjusted EBITDA.

 

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ZILLOW, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Year Ended
December 31,
 
     2014     2013  

Operating activities

    

Net loss

   $ (43,610   $ (12,453

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Depreciation and amortization

     35,624        23,254   

Share-based compensation expense

     34,085        23,436   

Release of valuation allowance on certain deferred tax assets

     —          (4,111

Loss on disposal of property and equipment

     505        910   

Bad debt expense

     2,529        1,907   

Deferred rent

     4,415        400   

Amortization of bond premium

     3,506        624   

Impairment of certain acquired intangible assets

     3,259        —     

Changes in operating assets and liabilities:

    

Accounts receivable

     (5,979     (7,571

Prepaid expenses and other assets

     (5,084     (1,543

Accounts payable

     4,634        1,497   

Accrued expenses

     8,577        1,038   

Deferred revenue

     3,058        3,910   
  

 

 

   

 

 

 

Net cash provided by operating activities

  45,519      31,298   

Investing activities

Proceeds from investment maturities

  174,949      53,000   

Purchases of investments

  (272,644   (236,147

Purchases of property and equipment

  (32,595   (22,047

Purchases of intangible assets

  (11,647   (3,925

Acquisitions, net of cash acquired

  (3,500   (42,708
  

 

 

   

 

 

 

Net cash used in investing activities

  (145,437   (251,827

Financing activities

Proceeds from exercise of Class A common stock options

  23,923      18,350   

Proceeds from public offering, net of offering costs

  —        253,899   
  

 

 

   

 

 

 

Net cash provided by financing activities

  23,923      272,249   

Net increase (decrease) in cash and cash equivalents during period

  (75,995   51,720   

Cash and cash equivalents at beginning of period

  201,760      150,040   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

$ 125,765    $ 201,760   
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information

Noncash transactions:

Capitalized share-based compensation

$ 6,585    $ 3,817   

Write-off of fully depreciated property and equipment

$ 4,749    $ 3,697   

 

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Adjusted EBITDA

The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, for each of the periods presented (in thousands, unaudited):

 

     Three Months Ended     Year Ended  
     December 31,     December 31,  
     2014     2013     2014     2013  

Reconciliation of Adjusted EBITDA to Net Income (Loss):

        

Net income (loss)

   $ (10,897   $ 2,715      $ (43,610   $ (12,453

Other income

     (317     (145     (1,085     (385

Depreciation and amortization expense

     9,915        7,443        35,624        23,254   

Impairment of certain acquired intangible assets

     3,259        —          3,259        —     

Share-based compensation expense

     9,909        5,055        34,085        23,436   

Acquisition-related costs

     8,109        175        21,493        376   

Income tax (benefit) expense

     —          154        —          (4,111
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 19,978      $ 15,397      $ 49,766      $ 30,117   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net Income per Share

The following table presents a reconciliation of net income, adjusted, to net income (loss), as reported on a GAAP basis, and the calculation of non-GAAP net income per share - basic and diluted, for each of the periods presented (in thousands, except per share data, unaudited):

 

     Three Months Ended      Year Ended  
     December 31,      December 31,  
     2014     2013      2014     2013  

Net income (loss), as reported

   $ (10,897   $ 2,715       $ (43,610   $ (12,453

Share-based compensation expense

     9,909        5,055         34,085        23,436   

Acquisition-related costs

     8,109        175         21,493        376   

Impairment of certain acquired intangible assets

     3,259        —           3,259        —     

Income tax (benefit) expense

     —          154         —          (4,111
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income, adjusted

   $ 10,380      $ 8,099       $ 15,227      $ 7,248   
  

 

 

   

 

 

    

 

 

   

 

 

 

Non-GAAP net income (loss) per share - basic

   $ 0.26      $ 0.21       $ 0.38      $ 0.20   

Non-GAAP net income (loss) per share - diluted

   $ 0.24      $ 0.19       $ 0.35      $ 0.18   

Weighted-average shares outstanding - basic

     40,600        39,050         40,009        36,029   

Weighted-average shares outstanding - diluted

     43,161        42,116         43,029        39,379   

 

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Revenue by Type

The following tables present our revenue by type and as a percentage of total revenue for each of the periods presented (in thousands, unaudited):

 

     Three Months Ended     Year Ended  
     December 31,     December 31,  
     2014     2013     2014     2013  

Revenue:

        

Marketplace revenue:

        

Real estate

   $ 70,807      $ 40,901      $ 239,039      $ 132,901   

Mortgages

     7,403        5,347        28,203        21,812   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Marketplace revenue

     78,210        46,248        267,242        154,713   

Display revenue

     14,119        12,100        58,651        42,832   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

   $ 92,329      $ 58,348      $ 325,893      $ 197,545   
  

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended     Year Ended  
     December 31,     December 31,  
     2014     2013     2014     2013  

Percentage of Total Revenue:

        

Marketplace revenue:

        

Real estate

     77     70     73     67

Mortgages

     8     9     9     11
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Marketplace revenue

     85     79     82     78

Display revenue

     15     21     18     22
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     100     100     100     100

Key Growth Drivers

The following tables set forth our key growth drivers for each of the periods presented:

 

     Average Monthly Unique Users for the
Three Months Ended December 31,
     2013 to 2014  
     2014     2013      % Change  
     (in thousands)         

Unique Users

     76,713     54,358         41

Unique users source: We measure unique users with Google Analytics. Beginning in September 2013, the reported monthly unique users reflect the effect of Zillow’s August 26, 2013 acquisition of StreetEasy, Inc.

 

* For December 2014, the reported monthly unique user metric was estimated by Zillow based on historical trends by calculating the percentage change in monthly unique users from November 2013 to December 2013 and multiplying that percentage change by the reported November 2014 monthly unique users. Zillow transitioned to an upgraded version of the Google Analytics measurement service, Universal Analytics, in the month of December 2014 on both its mobile application and website platforms. As a result, Zillow is not able to provide an accurate count of the monthly unique users as reported by the service for December 2014.

 

     At December 31,      2013 to 2014  
     2014      2013      % Change  

Premier Agent Advertisers

     62,305         48,314         29

 

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