- Long-time Zillow CEO Rich Barton is stepping down as Jeremy Wacksman, the current COO, steps in.
- Zillow reported a $17M loss for 2Q24, an improvement from 2Q23, but still the listing company’s sixth consecutive quarterly loss.
- Revenue growth seems to be driven mostly by the rental and mortgage segments.
According to The Real Deal, Zillow (Z) is undergoing a serious leadership shakeup following its sixth consecutive quarterly loss.
Out With The Old…
Rich Barton, who has been CEO since 2019, will be replaced by COO Jeremy Wacksman, the company announced Wednesday. Barton will now serve as co-executive chair alongside co-founder Lloyd Frink, focusing on advising Wacksman and other company leaders.
“I’m not going anywhere. I’m not doing anything else, but I’m really excited to be moving to a role of coach and adviser rather than the field general,” Barton said.
This marks Barton’s second departure from the CEO role. His first term ended in 2010, six years after Zillow’s founding. He resumed the position in 2019 to oversee the company’s iBuying venture, which was discontinued in 2021.
…In With The New
Wacksman, who joined Zillow from Microsoft in 2009 and has held various positions, including CMO, was promoted to COO three years ago.
Addressing the leadership transition, Wacksman assured continuity: “Oftentimes when there’s a leadership change, there’s a ‘what’s going to change?’ question. And the answer is, not much. We’re going to focus on continuing to actually deliver, scale and accelerate this into the future.”
Growth and Performance
The announcement came shortly before Zillow released its Q2 results. The company reported a $17M loss, an improvement from the $35M loss in 2Q23. Despite another quarter without a profit, Zillow saw a 13% YoY revenue gain, from $506M to $572M.
Zillow attributed part of its revenue growth to its rental segment and mortgage arm. Rental revenue, which accounts for 20% of total revenue, grew nearly 30% last quarter, with active rental listings up 16% YoY. The mortgage segment also saw significant growth, with a 42% annual increase in revenue.
Looking Forward
Wacksman is taking the reins as the housing market faces broad, systemic challenges like low inventory of for-sale homes and higher mortgage rates.
Additionally, the industry is undergoing a seismic shift due to the National Association of Realtors’ antitrust settlement, which requires buyer’s agents to secure a signed agreement before showing homes. In response, Zillow introduced a limited touring agreement earlier this year.
Despite scrutiny over its Flex program, which involves referring clients to its mortgage segment, Zillow continues to lead in digital traffic, boasting over 230M average monthly unique visitors.
