Zillow Aims to Boost Conversions With Housing Super App
BY PYMNTS | AUGUST 2, 2023
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Online real estate marketplace Zillow Group is continuing its development of a super app that provides a more integrated, digital and convenient experience for users.
This solution will help bridge the gap between homebuyers who are seeking a premier agent partner and those who ultimately transact with Zillow, company executives said Wednesday (Aug. 2) during the company’s quarterly earnings call.
“The housing super app is coming into focus, opening up significant transaction TAM [total addressable market] for the company and our shareholders,” Zillow CEO Rich Barton said in a press release issued in conjunction with the call.
During the call, Barton expressed confidence in the company’s ability to bridge the opportunity gap in the market through the Zillow housing super app and drive long-term growth.
This effort comes at a time when Zillow announced second-quarter results in which revenue surpassed expectations, reaching $506 million during the quarter ended June 30. That figure exceeded the midpoint of the outlook by $41 million.
In addition, the company’s EBITDA for the quarter reached $111 million, surpassing the midpoint of the outlook by $40 million.
Sharing the progress made by Zillow Group in the second quarter, Barton highlighted the fact that the company’s revenue returned to slightly positive year-over-year growth and the EBITDA surpassed the top end of their outlook. Barton attributed this performance to the progress made since reorienting the company in early 2022 and Zillow’s focus on cost management.
“Zillow outperformed the broader industry for the fourth consecutive quarter as we navigate a tough real estate market,” Barton said in the release. “I’m pleased with our steady progress on improving and integrating our customer and partner experiences, especially in touring, financing and renting.”
Looking ahead, in addition to the super app effort, Zillow Group is also focused on improving the customer experience and capturing more customer demand. Barton mentioned the significant investments they’ve made in improving the customer funnel and connecting demand to their partner network.
The company has seen better-than-expected connections in Premier Agent, and the option for customers to tour homes directly on the app and website has been a significant driver.
