Zillow earnings beat estimates; buys software company

May 3rd, 2012 by Amrinder Leave a reply »

Real estate website Zillow Inc posted first-quarter results above Wall Street estimates and said it bought software start-up RentJuice Corp, its second acquisition since it went public in July last year.

Zillow’s shares rose 8 per cent in extended trading to $38.99. They have nearly doubled in value from their IPO price of $20 per share.

The company earned $1.7 million, or 6 cents a share, compared with a loss of $824,000, or 6 cents a share, a year ago.

The website’s revenue doubled to $22.8 million. Analysts on average expected the company to earn 3 cents a share, on revenue of $21.5 million, according to Thomson Reuters I/B/E/S.

“”Mobile usage and site traffic grew substantially during the first quarter, which led to record revenue,” Chief Executive Spencer Rascoff said in a statement.

Separately, the company said it would buy RentJuice Corp, which provides rental relationship management software, for $40 million in cash.

In November, Zillow bought Diverse Solutions, which helps real estate agents market their business.

Zillow’s shares closed at $36.10 on Wednesday on the Nasdaq.

Source:http://economictimes.indiatimes.com/news/international-business/zillow-earnings-beat-estimates-buys-software-company/articleshow/12974185.cms

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