Investor Presentaiton
Note RE: Operating Metrics
Use of Operating Metrics
Zillow Group reviews a number of operating metrics to evaluate its business, measure performance, identify trends, formulate business plans, and make strategic decisions. This
presentation includes gross Premier Agent Monthly Recurring Revenue ("MRR") and Zillow Group daily visits average YoY growth rate, on an actual, preliminary and forecasted basis.
Zillow Group is temporarily using these operating metrics to evaluate and provide investors with insight into the current and forecasted health and performance of Zillow Group's
Premier Agent business and related consumer traffic trends prior to and during the COVID-19 pandemic.
MRR
Zillow Group calculates MRR by assessing the gross contractual monthly budgeted spend of each relevant Premier Agent and Premier Broker advertiser account, as of the date of
determination, to determine the revenue we expect to generate in the next monthly period for such account. Our MRR calculation includes all Premier Agent and Premier Broker revenue
generating products and services (except for Flex) and assumes that there will not be changes to pricing or purchase or cancellation of any products or services that may be applicable to
that account. Discounts do not impact MRR, as they do not change the contractual budgeted spend. Unless otherwise indicated in the presentation, actual MRR is determined as of the
end of each applicable period and preliminary and forecasted MRR is calculated based on the mid-point of our outlook as of May 7, 2020. MRR is not determined by reference to
historical revenue, deferred revenue, or any other GAAP financial measure over any period. It is forward-looking and contractually derived as of the date of determination.
Zillow Group Visits
We define a visit as a group of interactions by users with the Zillow, Trulia and StreetEasy mobile applications and websites. A single visit can contain multiple page views and actions, and
a single user can open multiple visits across domains, web browsers, desktop or mobile devices. Visits can occur on the same day, or over several days, weeks or months. Zillow and
StreetEasy measure visits with Google Analytics, and Trulia measures visits with Adobe Analytics. Visits to Trulia end after thirty minutes of user inactivity. Visits to Zillow and StreetEasy
end either: (i) after thirty minutes of user inactivity or at midnight; or (ii) through a campaign change. A visit ends through a campaign change if a visitor arrives via one campaign or
source (for example, via a search engine or referring link on a third-party website), leaves the mobile application or website, and then returns via another campaign or source.
For purposes of this presentation and in order to provide investors with greater insight into consumer traffic to Zillow, Trulia and StreetEasy prior to and during the COVID-19 pandemic
as compared with the same period in 2019, Zillow Group calculates the daily visits average year-over-year growth rate by (i) calculating the percentage change in visits on each date
during the applicable period compared to the visits for the same date in the prior year ("Daily Visits YoY Growth Rate") and (ii) averaging the Daily Visits YoY Growth Rate using a 7-day
trailing average for each day during the applicable period.
ZILLOW GROUP
27
27View entire presentation