Zillow Group, Inc. (Z) saw its loss narrow to $4.61 million, or $0.03 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $47.60 million, or $0.27 a share. On an adjusted basis, net profit for the quarter stood at $21.89 million, or $0.11 a share compared with a net loss of $22.82 million, or $0.13 a share in the last year period.
Revenue during the quarter surged 32.15 percent to $245.78 million from $185.98 million in the previous year period. Gross margin for the quarter expanded 48 basis points over the previous year period to 91.77 percent. Operating margin for the quarter period stood at positive 0.47 percent as compared to a negative 25.85 percent for the previous year period.
Operating income for the quarter was $1.16 million, compared with an operating loss of $48.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $54.80 million compared with $1.87 million in the prior year period. At the same time, adjusted EBITDA margin improved 2129 basis points in the quarter to 22.30 percent from 1.01 percent in the last year period.
"Zillow Group's strong first quarter performance across the board was a tremendous start to 2017," said Zillow Group chief executive officer Spencer Rascoff. "We beat our own expectations and surpassed last year's seasonal annual traffic peak by reaching an all-time high of unique users in March. We are thrilled with our first quarter results, which demonstrate that as consumers become more engaged, real estate agents and brokerages become more successful on our platform."
For the second-quarter, Zillow Group, Inc. projects revenue to be in the range of $257 million to $262 million. The company expects net loss to be in the range of $34.80 million to $29.80 million.
For fiscal year 2017, Zillow Group, Inc. projects revenue to be in the range of $1,050 million to $1,065 million for financial year 2017. The company expects net loss to be in the range of $32 million to $17 million.
Operating cash flow improves significantly
Zillow Group, Inc. has generated cash of $66.96 million from operating activities during the quarter, up 253.94 percent or $48.04 million, when compared with the last year period. The company has spent $59.80 million cash to meet investing activities during the quarter as against cash outgo of $17.18 million in the last year period.
Cash flow from financing activities was $10.77 million for the quarter, up 588.12 percent or $9.20 million, when compared with the last year period.
Cash and cash equivalents stood at $261.52 million as on Mar. 31, 2017, up 12.51 percent or $29.08 million from $232.44 million on Mar. 31, 2016.
Working capital increases
Zillow Group, Inc. has recorded an increase in the working capital over the last year. It stood at $523.65 million as at Mar. 31, 2017, up 11.56 percent or $54.28 million from $469.37 million on Mar. 31, 2016. Current ratio was at 5.90 as on Mar. 31, 2017, up from 5.81 on Mar. 31, 2016.
Days sales outstanding went down to 13 days for the quarter compared with 15 days for the same period last year.
At the same time, days payable outstanding went down to 17 days for the quarter from 23 for the same period last year.
Debt increases substantially
Zillow Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $371.76 million as on Mar. 31, 2017, up 61.63 percent or $141.76 million from $230 million on Mar. 31, 2016. Zillow Group, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $371.76 million as on Mar. 31, 2017, up 61.63 percent or $141.76 million from $230 million on Mar. 31, 2016. Total debt was 11.63 percent of total assets as on Mar. 31, 2017, compared with 7.34 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, up from 0.09 as on Mar. 31, 2016.
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