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  "documentTitle": "Zillow Group, Inc. (Z)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-03-05 00:00:00",
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  "notes": "The slide uses a red box to highlight the significant increase in stock-based compensation from 2017 to 2023.",
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      "text": "We estimate that Zillow's Adj. EBITDA growth since 2017 is comprised entirely of stock-based compensation. Zillow adds back stock-based compensation to Adj. EBITDA as a non-cash cost but uses cash to repurchase stock from dilution.",
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      "text": "Stock-Based Compensation % of Adj. EBITDA: 115%",
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      "text": "We estimate that Zillow's Adj. EBITDA growth since 2017 is comprised entirely of stock-based compensation. Zillow adds back stock-based compensation to Adj. EBITDA as a non-cash cost but uses cash to repurchase stock from dilution. Therefore, we do not believe that Adj. EBITDA is a fair representation of economic earnings power or potential.",
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      "text": "Source: Zillow Financials and Spruce Point Analysis",
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      "text": "Stock Compensation Effect On EBITDA table",
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      "text": "Zillow's EBITDA Growth Is Driven By Shifting Costs Into Stock-Based Comp.",
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