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Zillow Group Gross Margin %

: 43.90% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Zillow Group's Gross Profit for the three months ended in Jun. 2022 was $443 Mil. Zillow Group's Revenue for the three months ended in Jun. 2022 was $1,009 Mil. Therefore, Zillow Group's Gross Margin % for the quarter that ended in Jun. 2022 was 43.90%.

Warning Sign:

Zillow Group Inc gross margin has been in long-term decline. The average rate of decline per year is -25.2%.


The historical rank and industry rank for Zillow Group's Gross Margin % or its related term are showing as below:

Z' s Gross Margin % Range Over the Past 10 Years
Min: 16.41   Med: 89.48   Max: 92.09
Current: 16.41


During the past 13 years, the highest Gross Margin % of Zillow Group was 92.09%. The lowest was 16.41%. And the median was 89.48%.

Z's Gross Margin % is ranked worse than
92.26% of 530 companies
in the Interactive Media industry
Industry Median: 59.58 vs Z: 16.41

Zillow Group had a gross margin of 43.90% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Zillow Group was -25.20% per year.


Zillow Group Gross Margin % Historical Data

The historical data trend for Zillow Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zillow Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 92.09 88.48 43.70 44.12 21.52

Zillow Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 41.07 13.85 12.03 14.92 43.90

Competitive Comparison

For the Internet Content & Information subindustry, Zillow Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Zillow Group Gross Margin % Distribution

For the Interactive Media industry and Communication Services sector, Zillow Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zillow Group's Gross Margin % falls into.



Zillow Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Zillow Group's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1753.2 / 8147.376
=(Revenue - Cost of Goods Sold) / Revenue
=(8147.376 - 6394.177) / 8147.376
=21.52 %

Zillow Group's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=443 / 1009
=(Revenue - Cost of Goods Sold) / Revenue
=(1009 - 566) / 1009
=43.90 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Zillow Group  (NAS:Z) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Zillow Group had a gross margin of 43.90% for the quarter that ended in Jun. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Zillow Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Zillow Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Zillow Group Business Description

Zillow Group logo
Traded in Other Exchanges
Address
1301 Second Avenue, Floor 31, Seattle, WA, USA, 98101
Zillow Group is an Internet-based real estate company that has historically focused on deriving ad revenue from third-party brokers on online marketplaces such as Zillow.com, Trulia, and HotPads. More recently it has shifted its focus to iBuying via the Zillow Offers platform.
Executives
Hoag Jay C director 250 MIDDLEFIELD ROAD MENLO PARK CA 94025
Daimler Susan officer: President of Zillow C/O PUBMATIC, INC. 3 LAGOON DRIVE, SUITE 180 REDWOOD CITY CA 94065
Cormier Thielke Claire director 1301 2ND AVE FLOOR 31 SEATTLE WA 98101
Johnson Aimee officer: Chief Marketing Officer 1301 2ND AVE FLOOR 31 SEATTLE WA 98101
Owens Bradley D. officer: General Counsel 1301 SECOND AVE, FL 31 SEATTLE WA 98101
Lyon Dawn officer: Chief Corp. Relations Officer 1301 SECOND AVE, FL 31 SEATTLE WA 98101
Spaulding Dan officer: Chief People Officer 1301 SECOND AVE, FL 31 SEATTLE WA 98101
Parker Allen officer: Chief Financial Officer 1301 SECOND AVENUE, FLOOR 31 SEATTLE WA 98101
Rock Jennifer officer: Interim CFO 1301 SECOND AVENUE FLOOR 31 SEATTLE WA 98070
Prawer Arik officer: Pres. Homes Div./Co-Head IO C/O ZILLOW GROUP, INC. 1301 SECOND AVENUE FLOOR 31 SEATTLE WA 98070
Wacksman Jeremy officer: Chief Marketing Officer C/O ZILLOW GROUP, INC 1301 SECOND AVENUE FLOOR 31 SEATTLE WA 98101
Underwood April director C/O ZILLOW GROUP, INC. 1301 2ND AVE, FLOOR 31 SEATTLE WA 98101
Humphries Stanley B officer: Chief Analytics Officer C/O ZILLOW GROUP, INC. 1301 SECOND AVENUE FLOOR 31 SEATTLE WA 98101
Schwartz Greg M officer: Chief Revenue Officer C/O ZILLOW GROUP, INC. 1301 SECOND AVENUE, FLOOR 31 SEATTLE WA 98101
Blachford Erik C director C/O ZILLOW GROUP, INC. 1301 SECOND AVENUE, FLOOR 31 SEATTLE WA 98101

Zillow Group Headlines

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