Zillow
Zillow was founded in 2005 and went public in 2011. At the time of its IPO, Zillow’s valuation was $540 million with an initial share price of $20, according to Crunchbase. Now, shares are worth around $55.
Why Zillow Isn’t Profitable
Zillow is a leader in the online real estate space, yet it isn’t profitable and isn’t projecting that it will be profitable any time soon, Investor Place reported. That’s because despite growth in revenue from all three of its businesses — advertising, mortgages and home flipping — only its advertising business actually makes money when you look at earnings before interest, taxes, depreciation and amortization.
“Although revenues are expected to keep roaring higher, profits aren’t expected to join the party,” Investor Place stated. “Instead, Zillow’s fiscal 2021 loss per share is estimated to be nearly the exact same as its 2019 loss per share of 60 cents.”
