{
  "docId": "019dd923-622c-750b-8b99-74af5c9e9edb",
  "docSlug": "de028a1085e6",
  "documentTitle": "Zillow Group, Inc. (Z)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-03-05 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 21,
  "pageCount": 103,
  "prevPage": 20,
  "nextPage": 22,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 1,
  "notes": "Uses a funnel diagram to map expert commentary against Zillow's business model.",
  "elementsJson": [
    "headline_text",
    "funnel_chart",
    "callout_box",
    "bullet_list",
    "footnote"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-74af5c9e9edb/21",
  "deckHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb#slide-21",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.96,
        "x": 0.02,
        "y": 0.78
      },
      "kind": "callout",
      "text": "About half the business goes to MBP where the agents are bidding against each other for the leads on the zip code basis. And about half the business goes towards Flex. Half the leads go to Flex. By the way, I think it's about half. Nobody really knows the sell side research kind of estimates. And the auction is already super efficient. So it's hard to increase take rate on the auction because it is been whatever, five or more years and the kind of auction dynamics has sort of settled where they are. And then trying to increase the take rate by increasing the referral fee on Flex is the only way to drive growth at the bottom of the funnel.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5f49b08d-5814-4549-9c46-c04acf98803f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "The former senior executive shed some valuable insights on Zillow’s funnel. Based on his commentary, the only area that Zillow can meaningfully improve upon is the mid funnel, or generating more leads per visitor, and increasing the conversion rate of those leads in the Flex model.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f42-76f3-adc7-8f714fa449db",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.48,
        "w": 0.46,
        "x": 0.02,
        "y": 0.27
      },
      "kind": "diagram",
      "text": "Unique Visitors, Listing Page Views, Submits/Leads, Lead Conversion, Closed Sales/Commission, Take Rate (35-40%)",
      "attrs": null,
      "subkind": "pyramid",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f1858685-a3d5-47e1-928b-38cb3e3d8457",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.48,
        "w": 0.49,
        "x": 0.49,
        "y": 0.27
      },
      "kind": "list",
      "text": "Former Senior Executive Comments: If you're trying to grow the Premier Agent business... Mid funnel is where ShowingTime can really help... And then at the bottom of the funnel, driving take rate is very difficult...",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7c2aa1a1-971a-4b8b-b493-4bcc9749a6be",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "take rate: 35-40%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f42-76f3-adc7-96e4d1cda422",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "The former senior executive shed some valuable insights on Zillow’s funnel. Based on his commentary, the only area that Zillow can meaningfully improve upon is the mid funnel, or generating more leads per visitor, and increasing the conversion rate of those leads in the Flex model.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e169a621-bf87-46b6-9d51-ca48a751b015",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"If you're trying to grow the Premier Agent business, there are only really three levers to pull. There's one at the very top of the funnel trying to drive more traffic, more people looking at these listings that is very, very hard to move. It's a mature category, Zillow has category leadership, that's going to grow pretty slowly if at all.\" — Former Senior Executive. \"About half the business goes to MBP where the agents are bidding against each other for the leads on the zip code basis. And about half the business goes towards Flex. Half the leads go to Flex. By the way, I think it's about half. Nobody really knows the sell side research kind of estimates. And the auction is already super efficient. So it's hard to increase take rate on the auction because it is been whatever, five or more years and the kind of auction dynamics has sort of settled where they are. And then trying to increase the take rate by increasing the referral fee on Flex is the only way to drive growth at the bottom of the funnel.\" — Former Senior Executive.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f42-76f3-adc7-914dfe87dc33",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.35,
        "x": 0.02,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: Spruce Point interview with former Senior Executive",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5b839434-4c6c-4d8e-af81-b6d1b3a01396",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.5,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Zillow Management Often Talks About Its Funnel",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "92b6ff36-f0e9-474a-9e8f-3329c9485290",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "pyramid",
      "slug": null,
      "matchId": "73bce2ed-eca1-4890-917f-7c852be4d005",
      "evidence": "Funnel diagram used to visualize business stages",
      "confidence": 0.009
    }
  ],
  "arcBeats": [
    {
      "to": 50,
      "from": 21,
      "beatId": "2825f36d-3055-4526-b439-677abc0e48a8",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Evidence",
      "beatSlug": "evidence",
      "evidence": "The document presents evidence to support Spruce Point's claims, including data on Zillow's declining site traffic and revenue per visit.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}