Zillow Proves Doubters Wrong With First Quarterly Report

Charles Burges Business Specialist August 27, 2011 0

Many investors have grown increasingly worried with the potential for a second dot-com bubble, with a number of thus-far-unprofitable internet companies conducting surprisingly successful initial public offerings. Zillow, the online real estate database that fell into that group, could help ease some of those fears with its first quarterly report as a public company.

The Wall Street Journal reports that, after conducting its IPO in July, Zillow posted its first profit in the second quarter of the year. Bringing in $15.8 million in revenue on the back of a 373 percent year-over-year jump in its advertising service and a 280 percent increase in registered realtors.

This translated to an impressive $1.58 million in profit, up from a $2 million loss in the second quarter of last year.

Xconomy reports that the company sees itself in a strong position for further growth, with no debt and more than $16 million on hand. Executives explained that they intend to take this opportunity to bring on new staff and upgrade some of their technology as they move into a new headquarters.

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