What Does the Future Hold For Zillow Inc (Z)?

Page 1 of 2

The Fool recently explored Seattle. Today, CEO Spencer Rascoff introduces us to Zillow Inc (NASDAQ:Z), telling us how the online home and real estate marketplace works, what he considers its greatest strengths, and what investors should know about it.

Looking ahead five years, Spencer foresees a major emphasis on mobile services, and expects the brand name to become a household word. Spencer also explains why he identifies with tech companies such as OpenTable Inc (NASDAQ:OPEN) and WebMD Health Corp. (NASDAQ:WBMD).

The Motley Fool’s chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: “The Motley Fool’s Top Stock for 2013.” Just click here to access the report and find out the name of this under-the-radar company.

Austin Smith: A lot of young products in your pipeline. Five years out, you’ve got some slightly more mature revenue streams. What does Zillow Inc (NASDAQ:Z) look like?

Spencer Rascoff: Wow. Well, five years from now we’re — almost exclusively might be a little bit of an overstatement — but a predominantly mobile company. We already are, 55%-60% of our usage is mobile. Five years from now, who knows what that number will be, but it’ll be very, very significant. Usage of Zillow Inc (NASDAQ:Z) on smartphones and tablets will be massive.

Zillow Inc (NASDAQ:Z)I think we’ll have a much bigger brand. Today we’re about 50 million uniques in the U.S., but only about 12% of Americans recognize the brand name Zillow Inc (NASDAQ:Z). We’re spending tens of millions of dollars on advertising in 2013 to try to change that. By five years from now, I think the Zillow brand name will be as widely recognized as Netflix, Inc. (NASDAQ:NFLX) or Expedia Inc (NASDAQ:EXPE) or other vertical-leading brands.

Of course at that point, we become more of a must-buy for local advertisers in real estate, mortgages, rentals, and home improvement because if they want to grow their business they need to advertise on Zillow Inc (NASDAQ:Z), which will be the leading brand in our category.

Austin: I know we talked about maybe companies that you guys might … what other young, successful tech companies — maybe Netflix, Inc. (NASDAQ:NFLX) – do you guys identify with, associate with?

Spencer: From a strategy standpoint, I identify a lot with OpenTable Inc (NASDAQ:OPEN) because they have a great mobile presence and a desktop presence, which attracts an audience of consumers, and then they provide software tools to the restaurants, so they marry lead generation with SaaS B2B software tools so, strategically, I look at OpenTable quite a bit.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!