Will the Real Estate Rally Continue This Week?
The slow but steady recovery in the U.S. housing market has been a boon for real-estate information marketplaces like Trulia (NYSE:TRLA) and Zillow (NASDAQ:Z). Both companies are shaking up the way that interested buyers search for property and connect with sellers, and the broad revitalization of the market has helped convince once-skeptical investors that their business models can actually work.
Trulia’s core services provide pricing and listing data, and information on the communities that homes are listen in. Much like a social network, the larger and more engaged its community is, the better. Trulia reported its fourth-quarter and full-year results last week, and showed that monthly unique visitors to its website grew 50 percent, year over year, to 23.6 million.
What’s more, total subscribers grew 45 percent, year over year, to 24,443 at the end of the quarter. Average revenue per subscriber grew 46 percent to $172 for the same period. All this translated into quarterly revenue of $20.6 million, a 75 percent year-over-year increase. Full-year revenue increased 77 percent to $68.1 million.
The downside is that Trulia is still operating at a loss, but negative earnings shrank from $0.30 in the year-ago period to $0.06 in the most-recent quarter. What the results say loud and clear is that the company is heading in the right direction. Shares climbed more than 41 percent over last week’s five-day period, even as its major competitor, Zillow, posted strong earnings of its own…