Reuters: Global Markets: Zillow's profit down on acquisition costs, shares fall

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Zillow's profit down on acquisition costs, shares fall Aug 7th 2012, 20:52 Tue Aug 7, 2012 4:52pm EDT (Reuters) - Zillow Inc's (Z.O) quarterly profit fell modestly as the real estate website accounted for costs related to its acquisition of software start-up RentJuice Corp, and the company forecast third-quarter revenue in line with analysts' expectations. Zillow said in May it would buy RentJuice for $40 million in cash to build out its rent service offerings. The company, which provides housing value appraisals online called "Zestimates," also filed with U.S. regulators to offer $150 million in stock, debt and warrants from time-to-time. Disappointed investors, who had bid up the company's shares during regular trading hours on Tuesday in hopes of a bigger beat, sold off shares in the company. The stock, which closed up 5 percent at $41.76 on the Nasdaq on Tuesday, fell 9 percent to $38 after hours. Net income fell to $1.3 million, or 4 cents per share, for the second quarter, from $1.6 million, a year earlier. This includes about $0.7 million in costs related to the RentJuice purchase. Total revenue jumped 75 percent to $27.8 million. Analysts were expecting a profit of 4 cents per share on revenue of $27.1 million, according to Thomson Reuters I/B/E/S. The company that provides housing value appraisals online called "Zestimates," said premier agent subscribers -- real estate agents who pay subscription fees -- grew 70 percent to 22,696 in the second quarter. For the third quarter, Zillow expects revenue of $30 million to $31 million, above analysts' estimates of $30.5 million, according to Thomson Reuters I/B/E/S. Zillow competes with Move Inc (MOVE.O), owner of sites like Realtor.com, and Trulia Inc, which filed to go public last month. (Reporting by Sayantani Ghosh in Bangalore; Editing by Sreejiraj Eluvangal and Joyjeet Das) Link this Share this Digg this Email Reprints

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