{ "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": 73, "pageCount": 103, "prevPage": 72, "nextPage": 74, "slideType": "ceo_quote", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 6, "notes": "The slide uses yellow highlighting to draw attention to specific claims, likely to facilitate later critique or contradiction.", "elementsJson": [ "headline_text", "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-74af5c9e9edb/73", "deckHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb#slide-73", "components": [ { "bbox": null, "kind": "callout", "text": "Either way, we're charging a small fraction of the serious ridiculously high 30% to 40% of commissions being charged by Zillow and Realtor.com to agents.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f42-76f3-adcb-d7d291be4482", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.085, "w": 0.98, "x": 0.01, "y": 0.585 }, "kind": "paragraph", "text": "We sold more than 827 memberships so far with approximately 90% of the agents selecting 12-month memberships with the rest choosing a 6-month subscription. We've seen agents with larger portfolios signing up at price points in the thousands of dollars a month so far topping out at 7,400 a month. We have proposals out at much higher price points.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f489788-a0f6-4a0e-ba55-4792ffa5d5e1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.085, "w": 0.98, "x": 0.01, "y": 0.485 }, "kind": "paragraph", "text": "In addition to leveraging the strength of our entire CoStar Group sales team, we are rapidly building a sales force dedicated to selling only Homes.com. We have accrued a vice president, sales managers and 100 sellers to date and intend to have over 300 account sales representatives in place by the end of the year.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5e231432-b4b6-419a-9c40-0aa8988460bb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.98, "x": 0.01, "y": 0.845 }, "kind": "paragraph", "text": "Overall, I'm very proud of what the team has worked so hard to accomplish with Homes.com in only 3 years and believe it will be the most successful product launch in CoStar Group history.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6865a325-1b71-4d94-9f60-e52beaf87e0c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.085, "w": 0.98, "x": 0.01, "y": 0.235 }, "kind": "paragraph", "text": "On Monday, February 12, adapts the Super Bowl, we were ready to begin monetizing Homes.com selling memberships to agents a quarter earlier than we had previously communicated to you. As we did when we launched the new LoopNet, the new Apartments.com, we deployed the entire CoStar Group sales force to sell Homes.com.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9a32d68c-f69b-4645-af8f-d33afac7ef1f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.145, "w": 0.98, "x": 0.01, "y": 0.685 }, "kind": "paragraph", "text": "We also have agents with just a listing or so signing up at price points of only $100 to $200 a month. It doesn't matter if you're an agent with a large portfolio or a small portfolio. Either way, we're charging a small fraction of the serious ridiculously high 30% to 40% of commissions being charged by Zillow and Realtor.com to agents. We have only demoed 0.02% of the agents out there at this point. If we maintain this pace, we could sell around $200 million in annual reoccurring revenue in our first 12 months of selling.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dacd3ad4-ddb5-4b55-b1c1-47fd69ad465c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.125, "w": 0.98, "x": 0.01, "y": 0.345 }, "kind": "paragraph", "text": "Our 1,000-plus person sales force gives us instant national reach with experienced salespeople that live in many of the very same neighborhoods as the 1.5 million residential property agents that we intend to reach. We trained the full sales team in January and rolled out very attractive incentive structures that reward our sellers to sell both homes and their primary brands like CoStar or apartments with -- along with homes. The more they sell of both brands combined the more money they make.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f096d791-a5d8-4614-93dc-91c875e3768e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Either way, we're charging a small fraction of the serious ridiculously high 30% to 40% of commissions being charged by Zillow and Realtor.com to agents.\" — CoStar Group CEO", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f42-76f3-adcb-da969275c8fd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.01, "y": 0.97 }, "kind": "source-note", "text": "Source: CoStar Q4'23 earnings call transcript.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "80dfb0f4-a9b9-461e-8e27-f04d1a50bf6b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.635, "x": 0.337, "y": 0.055 }, "kind": "title", "text": "Additional Q4'23 Earnings Call Comments", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "928760a3-f84c-473d-8b95-dc1df1e72adc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.98, "x": 0.01, "y": 0.185 }, "kind": "title", "text": "CEO Comments From CoStar's Q4'23 Earnings Call (February 20, 2024)", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aeadefa0-7938-498c-a524-a290edc85cf7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "60ce22b2-2f3c-4efc-afb6-15e762d100b2", "evidence": "The activist highlights specific claims in yellow to set up a future contradiction.", "confidence": 0.8 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }