{ "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": 56, "pageCount": 103, "prevPage": 55, "nextPage": 57, "slideType": "quote_slide", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a quote to highlight a structural bottleneck in Zillow's business model.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-74af5c9e9edb/56", "deckHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb#slide-56", "components": [ { "bbox": null, "kind": "callout", "text": "And the problem in this model is those agents that are good, that 10% they are referring to in every market, they can't handle more leads because they don't have enough good agents underneath them on their teams to support the leads that are coming in to be able to help convert.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f42-76f3-adca-d8abe3582781", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "paragraph", "text": "In 2022, Zillow introduced the concept of the “Enhanced Markets” which is a market that has been converted into a Flex-only market, eliminating all MBP business. The aim is to combine the strength of the broker partnership model under Flex to help push the cross-sell of services offered under the “Super App”.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "33a4f70c-24e5-4cc0-8c12-81f8a91e963f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.83, "x": 0.15, "y": 0.4 }, "kind": "quote", "text": "90% of leads are closed by 10% of agents in a market... they can't handle more leads because they don't have enough good agents underneath them... Zillow has leads coming in that are unsupported... they're either going to go to a crap agent... or the good partners are saying, help us find good agents.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "53b7cc90-bede-466d-b59e-5d27c9a6a8cc", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"90% of leads are closed by 10% of agents in a market. You're looking at this massive hole of leads that need to get worked. And the problem in this model is those agents that are good, that 10% they are referring to in every market, they can't handle more leads because they don't have enough good agents underneath them on their teams to support the leads that are coming in to be able to help convert. So it's actually a double-edged sword. You give this a year or two, you identify the good agents, you're like, okay, here's the people that we're going to send the leads to, they're converting, we want to send more leads to them. Now they're telling us we don't have agents on our team to support it. Pause, we can't handle the leads. And what does Zillow do now? They have leads coming in that are unsupported and they're either going to go to a crap agent who doesn't know how to convert them or respond to them, or the good partners are saying, help us find good agents.\" — Former Senior Zillow Employee", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f42-76f3-adca-dd398ebb2145", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.15, "x": 0.02, "y": 0.97 }, "kind": "source-note", "text": "Source: Spruce Point Interview", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "defe36a1-657e-4a11-be85-b161e2b71074", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.96, "x": 0.02, "y": 0.28 }, "kind": "table", "text": "Research Interview", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "21221368-9f07-4f38-af88-028a82612fc0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.55, "x": 0.31, "y": 0.04 }, "kind": "title", "text": "Can Flex 2.0 Or Enhanced Markets Scale?", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "435fa20f-e21b-49ee-9eaf-bf534bfe14b0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "40700c1c-0979-4094-863e-7607c734728c", "evidence": "Uses an expert interview to contradict the scalability of the company's stated strategy.", "confidence": 0.9 } ], "arcBeats": [ { "to": 70, "from": 51, "beatId": "125707a2-c049-4259-b582-975f875ab5a3", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Monster", "beatSlug": null, "evidence": "The document presents the 'monster' of Zillow's flawed business model and poor management practices.", "position": 3, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }