Zillow stock pitch (Z)

Опубликовано: 04 Январь 2025
на канале: Nathan Worden

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Zillow stock pitch transcript:

I'll be pitching Zillow,

one of the pristine internet assets out there in the world.

So if you've bought or rented a home,

you probably realized that the process needs to improve.

The process is fairly unorganized,

it lacks transparency and generally there's costs embedded that none of us appreciate.

Typically what happens in situations like this—

technology comes to the rescue; untangles much of this stuff.

And we actually think Zillow is at the forefront of potentially being a solution to many of these problems.

Let me first lay the foundation for this— it is really around demographics.

It plays a pretty critical role in real estate.

Every year five to six million existing homes are sold and an additional one to two million new homes are built.

If we use history as a guide since 1981,

the average home is a first time buyer is roughly around 27 to 33 years old.

That's the largest cohort of the age group today.

So if we think about demand, we think it's structurally there for at least the next decade.

And obviously the peaks and troughs along the way.

Next is how digital plays a role within real estate.

In 2021, there were 32 million downloads of real estate apps.

Yet there was 6.1 million homes sold.

Studies show that 43% of buyers search online first,

18% contact an agent first,

97% of homes that are bought our search at some point throughout that journey.

So two things we know so far:

1) the the demand for housing is likely to continue, and then

2) consumers start their journey online, and it's our hunch that they want to end their journey, but also monitor their journey along the way using digital solutions.

So what about Zillow?

When we think about Zillow, 4.1 million of the over 6 million home buyers that purchased a home last year at some point touched the Zillow platform and that's according to the company.

In addition, we know that brand recognition is fairly high. The way we know that is here's looking at Google search trends for Zillow versus real estate,

and you can see how the term real estate collapsed while Zillow was quite the opposite.

63% of daily active users in all real estate apps inside of Zillow at any given time.

So that's pretty important as well.

So what does Zillow do exactly?

They obviously have various products.

Zillow, Zillow rentals

dot loop,

MarTech had recently acquired ShowingTime time, which has a million agents on the platform.

They also have their mortgage business.

87% of homes purchased in the U.S. are financed with a mortgage.

So that's pretty interesting.

ibuying can't really go far without talking about it.

We think obviously they stepped away from it.

They had quarters of success, quarters of disappointment.

They stepped away, opting for an asset light model today instead of capital intense.

What's the future look like?

We think the future is this super app and the super app is starting and ending your journey within the app.

Financially 45% of margins today adjusted, they laid out a 5 billion, 45% margin.

You take that out at a 15 multiple, you get 33— 2X today's numbers.