Zillow Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Zillow Group, Inc. has filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

ZILLOW GROUP, INC. (Z) filed a Annual Report (10-K) with the SEC on February 15, 2024. Zillow Group, Inc. filed its 2023 Form 10-K on February 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal executive offices are located at 1301 Second Avenue, Floor 36, Seattle, WA 98101. Zillow Group, Inc. was formerly known as Zebra Holdco Inc. until August 22, 2014. The filing includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking ZILLOW GROUP, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Zillow's financial health, operational strategies, and risk factors for the past fiscal year, which is crucial for investors to assess the company's performance and future prospects. Understanding the detailed financial statements, revenue breakdowns, and executive compensation within this report allows stakeholders to make informed investment decisions regarding Zillow Group, Inc.

Risk Assessment

Risk Level: medium — ZILLOW GROUP, INC. shows moderate risk based on this filing. The company's business is subject to significant risks and uncertainties, including the cyclical nature of the real estate market and competition, which could adversely affect its financial condition and results of operations.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Zillow's performance in the evolving real estate market.

Revenue Breakdown

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 20240215 — Filing Date (Filed as of Date)
• 123 — Public Document Count (Conformed Document Count)
• 001-36853 — SEC File Number (SEC File Number)

Key Players & Entities

• ZILLOW GROUP, INC. (company) — Filer name
• 0001617640 (company) — Central Index Key
• 7389 (company) — Standard Industrial Classification
• WA (company) — State of Incorporation
• 1301 SECOND AVENUE, FLOOR 36 (company) — Business Address
• SEATTLE (company) — City
• Zebra Holdco Inc. (company) — Former Company Name
• 20140822 (company) — Date of Name Change

FAQ

Risk Factors

• Real Estate Market Fluctuations [high — market]: The company's business is significantly impacted by the cyclical nature of the real estate market, including fluctuations in housing prices and transaction volumes.
• Competition [high — market]: Zillow faces intense competition from other online real estate platforms, traditional real estate brokers, and other companies in the housing industry.
• Reliance on Technology [medium — operational]: The company's operations are heavily dependent on its technology infrastructure and the ability to maintain and update its platforms effectively.
• Economic Conditions [medium — financial]: Broader economic conditions, including interest rates and employment levels, can affect housing demand and Zillow's business performance.

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share ZG The Nasdaq Global Select M

Filing Documents

• z-20231231.htm (10-K) — 2379KB
• a2023form10-kex1027.htm (EX-10.27) — 65KB
• a2023form10-kex1033.htm (EX-10.33) — 24KB
• a2023form10-kex1034.htm (EX-10.34) — 20KB
• a2023form10-kex191.htm (EX-19.1) — 52KB
• a2023form10-kex211.htm (EX-21.1) — 4KB
• a2023form10-kex231.htm (EX-23.1) — 3KB
• a2023form10-kex311.htm (EX-31.1) — 11KB
• a2023form10-kex312.htm (EX-31.2) — 11KB
• a2023form10-kex321.htm (EX-32.1) — 7KB
• a2023form10-kex322.htm (EX-32.2) — 6KB
• a2023form10-kex971.htm (EX-97.1) — 38KB
• z-20231231_g1.jpg (GRAPHIC) — 40KB
• 0001617640-24-000022.txt (&nbsp;) — 12770KB
• z-20231231.xsd (EX-101.SCH) — 77KB
• z-20231231_cal.xml (EX-101.CAL) — 127KB
• z-20231231_def.xml (EX-101.DEF) — 490KB
• z-20231231_lab.xml (EX-101.LAB) — 1043KB
• z-20231231_pre.xml (EX-101.PRE) — 736KB
• z-20231231_htm.xml (XML) — 1891KB

Risk Factors

Item 1A. Risk Factors 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 38 Item 1C. C ybersecurity 38

Properties

Item 2. Properties 40

Legal Proceedings

Item 3. Legal Proceedings 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 41

[Reserved]

Item 6. [Reserved] 43

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 44

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 62

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 64

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 111

Controls and Procedures

Item 9A. Controls and Procedures 111

Other Information

Item 9B. Other Information 113

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 114 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 115

Executive Compensation

Item 11. Executive Compensation 115

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 115

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 115

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 115 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 116

Form 10-K Summary

Item 16. Form 10-K Summary 120

Signatures

Signatures 121 i As used in this Annual Report on Form 10-K, the terms "Zillow Group," "the Company," "we," "us" and "our" refer to Zillow Group, Inc., unless the context indicates otherwise. NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, including the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Business," contains forward-looking statements based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include all statements that are not historical facts and generally may be identified by terms such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "plan," "expect," "potential," "might" or the negative or plural of these words or similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those risks, uncertainties and assumptions described in Part I, Item 1A (Risk Factors) of this report, including, but not limited to risks related to: the current and future health and stability of the economy and United States residential real estate industry, including changes in inflationary conditions, interest rates, housing availability and affordability, labor shortages and supply chain issues; our ability to manage advertising and product inventory and pricing and maintain relationships with our real estate partners; our ability to establish or maintain relationships with listing and data providers, which affects traffic to our mobile applications and websites; our ability to comply with current and future multiple listing service ("MLS") rules and requirements; our ability to navigate industry changes, including as a result of certain or future class action lawsuits or government investigations, which may include lawsuits or investigations in which we are not

Business

Item 1. Business. Overview We are reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences. Hundreds of millions of people visit our mobile applications and websites every month to begin their journey. At the core of Zillow is our living database of approximately 160 million U.S. homes and our differentiated content, most notably the Zestimate, our patented proprietary automated valuation model through which we provide home value estimates. With the launch of the Zestimate feature in 2006, we introduced important transparency to residential real estate in order to empower consumers to make better decisions. During 2023, our Zestimate feature had a median error rate of 2.3% for homes listed for sale and 7.4% for off-market homes. We believe our data and content has helped the Zillow brand become synonymous with residential real estate with Zillow being searched more than the term "real estate" in the United States. Our vision of a "housing super app" is to help customers across all their real estate needs serving as one ecosystem of connected solutions for all the tasks and services related to moving. We are focused on continually improving our customer funnel, capturing customer demand and connecting that demand to our partner network. We believe this focus allows us to build closer relationships with our customers to help them find and move into the places they call home, which is at the core of our mission. We also believe the path to realizing our "housing super app" vision involves executing on product initiatives across six growth pillars: Touring – Make it easier for high-intent customers to take in-person tours and connect with our partner agents Financing – Prepare custome

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View this 10-K filing on SEC EDGAR