The two largest online based real estate search website are now one entity as Zillow (NASDAQ:Z) closed the deal to acquire longtime rival Trulia (NASDAQ:TRLA). The transaction involved Trulia receiving 0.44 shares of the new entity, “Zillow Group”, representing an ownership of one third while Zillow will obtain majority stake with 67%. Zillow shares are up 15% post-merger on above average trading volume.
Top Line Growth Accompanied by Costly Expenses
For the year ended December 31, 2014, overall revenue for Zillow grew by 65% YoY to $325.9 million. Q4 2014 revenues surged to $92.3 million which is 4% higher than the previous quarter but a 92% increase over the same period in 2013.
From the table above, notice a substantial rise in expenses, especially in Sales and Marketin...