Zillow Makes $7.8 Million Acquisition for More Agent Tools

As part of its third-quarter earnings release today, Zillow said it has acquired Diverse Solutions, which helps real estate agents market their Web sites, for $7.8 million.

Seattle-based Zillow said it acquired substantially all of the assets of the Irvine, Calif.-based company.

Diverse Solutions Founder and CEO Justin LaJoie will become the VP of industry solutions at Zillow.

Separately, Zillow announced its second earnings release as a public company.

The company reported record revenues in the third quarter of $19.1 million, up 132 percent year over year.

The company lost $570,000 during the quarter, but when excluding a charge of $1.7 million associated with the move of its headquarters, it would have reported a profit of $1.2 million, or 5 cents a share.

Additionally, it raised its guidance for full-year revenues and profits, not including some items.

Revenues for the full year are now expected to be in the range of about $63 million to $64 million, representing a 108 percent growth rate over 2010. Adjusted EBITDA, which excludes some items, is expected to be in the range of $9 million to $10 million.

In after-hours trading, the stock increased 87 cents a share, or 3.27 percent, to $27.50.

Latest Video

View all videos »

Search »

I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik