Real estate listing and mortgage rate search website company Zillow registered with the Securities and Exchange Commission Monday, seeking to raise $51.75 million from the initial public offering of its common stock.
The company generates revenue from advertising of real estate sale and rental listings and mortgage rates. Revenue has increased from nearly $4.3 million in 2006 (its first year of operation) to $30.5 million in 2010, including a 74% year-over-year increase from 2009 to 2010.
Zillow has never posted an annual net profit, losing more than $20 million in both 2007 and 2008. The company's net loss of $6.77 million in 2010 was 47% lower than its net loss of $12.85 million in 2009.
Zillow's Mortgage Marketplace launched in April 2008. In less than a year, it provided one million rate quotes. During 1Q111, users requested nearly one million rate searches. In January 2010, the company began charging lenders to post their rates on the site. Lenders pay a cost per click fee to publish rates and generate leads from Zillow's search service.
Citi is the sole underwriter of the IPO, with Allen & Company, Needham & Co., ThinkEquity and First Washington Corp. servicing as co-managers.
The company has seen a surge in users since releasing its first mobile application a year ago, which are accessible on Apple's iPhone and iPad, as well as versions compatible with the Google Android and BlackBerry platforms. In March, Zillow had a combined 19.4 million unique users on its website and mobile platforms, up more than 90% from the March 2010.
Zillow real estate listings also populate the Yahoo Real Estate Web page, through a partnership that includes rights for Zillow to sell subscription advertising on the Yahoo website.
