Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | Z | |
Entity Registrant Name | Zillow Group, Inc. | |
Entity Central Index Key | 1617640 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 52,486,754 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,217,447 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $307,852 | $125,765 |
Short-term investments | 320,581 | 246,829 |
Accounts receivable, net of allowance for doubtful accounts of $2,988 and $2,811 at March 31, 2015 and December 31, 2014, respectively | 31,267 | 18,684 |
Prepaid expenses and other current assets | 25,035 | 10,059 |
Total current assets | 684,735 | 401,337 |
Restricted cash | 6,800 | |
Long-term investments | 83,326 | |
Property and equipment, net | 72,936 | 41,600 |
Goodwill | 1,833,427 | 96,352 |
Intangible assets, net | 569,125 | 26,757 |
Other assets | 1,171 | 358 |
Total assets | 3,168,194 | 649,730 |
Current liabilities: | ||
Accounts payable | 13,661 | 9,358 |
Accrued expenses and other current liabilities | 52,468 | 16,883 |
Accrued compensation and benefits | 16,786 | 6,735 |
Accrued restructuring costs | 7,369 | |
Deferred revenue | 23,768 | 15,356 |
Deferred rent, current portion | 968 | 864 |
Total current liabilities | 115,020 | 49,196 |
Deferred rent, net of current portion | 11,774 | 11,755 |
Long-term debt | 230,000 | |
Deferred tax liabilities and other long-term liabilities | 143,430 | |
Commitments and contingencies (Note 14) | ||
Shareholders' equity: | ||
Preferred stock, $0.0001 par value; 30,000,000 shares authorized as of March 31, 2015 and December 31, 2014; no shares issued and outstanding as of March 31, 2015 and December 31, 2014 | ||
Additional paid-in capital | 2,853,941 | 716,506 |
Accumulated other comprehensive income | 138 | |
Accumulated deficit | -186,115 | -127,731 |
Total shareholders' equity | 2,667,970 | 588,779 |
Total liabilities and shareholders' equity | 3,168,194 | 649,730 |
Class A Common Stock | ||
Shareholders' equity: | ||
Common stock | 5 | 3 |
Class B Common Stock | ||
Shareholders' equity: | ||
Common stock | 1 | 1 |
Class C Common Stock | ||
Shareholders' equity: | ||
Common stock |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $2,988 | $2,811 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,245,000,000 | 600,000,000 |
Common stock, shares issued | 52,248,931 | 34,578,393 |
Common stock, shares outstanding | 52,248,931 | 34,578,393 |
Class B Common Stock | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 6,217,447 | 6,217,447 |
Common stock, shares outstanding | 6,217,447 | 6,217,447 |
Class C Common Stock | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 600,000,000 | 0 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Statement [Abstract] | ||||
Revenue | $127,273 | $66,243 | ||
Costs and expenses: | ||||
Cost of revenue (exclusive of amortization) | 13,019 | [1] | 6,164 | [1] |
Sales and marketing | 59,286 | 35,133 | ||
Technology and development | 37,325 | 16,735 | ||
General and administrative | 38,024 | 14,689 | ||
Acquisition-related costs | 12,477 | |||
Restructuring costs | 25,065 | |||
Total costs and expenses | 185,196 | 72,721 | ||
Loss from operations | -57,923 | -6,478 | ||
Other income | 269 | 219 | ||
Interest expense | -730 | |||
Net loss | ($58,384) | ($6,259) | ||
Net loss per share - basic and diluted | ($1.19) | ($0.16) | ||
Weighted-average shares outstanding - basic and diluted | 49,130 | 39,322 | ||
[1] | Amortization of website development costs and intangible assets included in technology and development $ 11,782 $ 6,784 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Amortization of website development costs and intangible assets included in technology and development | $11,782 | $6,784 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss | ($58,384) | ($6,259) |
Other comprehensive income: | ||
Unrealized gains on investments | 149 | |
Reclassification adjustment for net investment gains included in net loss | -10 | |
Net unrealized gains on investments | 139 | |
Total other comprehensive income | 139 | |
Comprehensive loss | ($58,245) | ($6,259) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net loss | ($58,384) | ($6,259) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 14,028 | 8,074 |
Share-based compensation expense | 23,007 | 7,132 |
Restructuring costs | 21,702 | |
Loss on disposal of property and equipment | 87 | 235 |
Bad debt expense | 805 | 635 |
Deferred rent | 381 | 697 |
Amortization of bond premium | 849 | 812 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -296 | -260 |
Prepaid expenses and other assets | 5,477 | -1,920 |
Accounts payable | -763 | 1,679 |
Accrued expenses and other current liabilities | -7,652 | 2,468 |
Accrued compensation and benefits | 1,727 | 1,070 |
Deferred revenue | 112 | -158 |
Other long-term liabilities | 375 | |
Net cash provided by operating activities | 1,455 | 14,205 |
Investing activities | ||
Proceeds from maturities of investments | 63,780 | 44,539 |
Purchases of investments | -59,896 | -103,094 |
Proceeds from sales of investments | 4,979 | |
Increase in restricted cash | 147 | |
Purchases of property and equipment | -10,321 | -7,872 |
Purchases of intangible assets | -284 | -1,147 |
Cash acquired in acquisition, net | 173,406 | |
Net cash provided by (used in) investing activities | 171,811 | -67,574 |
Financing activities | ||
Proceeds from exercise of Class A Common stock options | 9,124 | 5,263 |
Value of equity awards withheld for tax liability | -303 | |
Net cash provided by financing activities | 8,821 | 5,263 |
Net increase (decrease) in cash and cash equivalents during period | 182,087 | -48,106 |
Cash and cash equivalents at beginning of period | 125,765 | 201,760 |
Cash and cash equivalents at end of period | 307,852 | 153,654 |
Noncash transactions: | ||
Value of Class A common stock issued in connection with an acquisition | 1,883,728 | |
Capitalized share-based compensation | 2,424 | 1,586 |
Write-off of fully depreciated property and equipment | $11,759 | $1,498 |
Organization_and_Description_o
Organization and Description of Business | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Organization and Description of Business | Note 1. | Organization and Description of Business |
Zillow Group, Inc. operates the leading real estate and home-related information marketplaces on mobile and the Web, with a complementary portfolio of brands and products to help people find vital information about homes and connect with local professionals. Zillow Group’s brands focus on all stages of the home lifecycle: renting, buying, selling, financing and home improvement. The Zillow Group portfolio of consumer brands includes real estate and rental marketplaces Zillow, Trulia, StreetEasy and HotPads. In addition, Zillow Group works with tens of thousands of real estate agents, lenders and rental professionals, helping maximize business opportunities and connect to millions of consumers. We also own and operate a number of brands for real estate, rental and mortgage professionals, including Postlets, Mortech, Diverse Solutions, Market Leader and Retsly. | ||
Acquisition of Trulia, Inc. | ||
Effective February 17, 2015, pursuant to the Agreement and Plan of Merger dated as of July 28, 2014 (the “Merger Agreement”) by and among Zillow, Inc. (“Zillow”), Zillow Group, and Trulia, Inc. (“Trulia”), following the consummation of the mergers contemplated by the Merger Agreement (the “Mergers”), each of Zillow and Trulia became wholly owned subsidiaries of Zillow Group. Upon completion of the Mergers, each share of Class A common stock of Zillow (other than shares held by Zillow as treasury stock or by Zillow Group, Trulia, or any direct or indirect wholly owned subsidiary of Zillow or Trulia) was converted into the right to receive one share of fully paid and nonassessable Class A common stock of Zillow Group, each share of Class B common stock of Zillow (other than shares held by Zillow as treasury stock or by Zillow Group, Trulia, or any direct or indirect wholly owned subsidiary of Zillow or Trulia) was converted into the right to receive one share of fully paid and nonassessable Class B common stock of Zillow Group, and each share of Trulia common stock (other than shares held by Trulia as treasury stock or by Zillow Group, Zillow, or any direct or indirect wholly owned subsidiary of Zillow or Trulia) was converted into the right to receive 0.444 of a share of fully paid and nonassessable Class A Common Stock of Zillow Group. | ||
In addition, subject to certain exceptions, each Trulia stock option, restricted stock unit and stock appreciation right outstanding upon the consummation of the Mergers, whether or not vested and exercisable, was assumed by Zillow Group and converted into a corresponding equity award to purchase, acquire shares of, or participate in the appreciation in price of Zillow Group Class A Common Stock. The terms of each assumed equity award are the same except that the number of shares subject to each equity award and the per share exercise price, if any, were adjusted based on the exchange ratio of 0.444 per a formula set forth in the Merger Agreement. Generally, each Zillow stock option and restricted stock unit outstanding upon the consummation of the Mergers, whether or not vested or exercisable, was assumed by Zillow Group and converted into a corresponding equity award to purchase or acquire shares of Zillow Group Class A common stock. The terms of each assumed equity award are the same. Any unvested shares of Zillow Class A common stock subject to a repurchase option, risk of forfeiture or other condition as of the consummation of the Mergers were exchanged for shares of Zillow Group Class A common stock that are also unvested and subject to the same repurchase option, risk of forfeiture or other condition. Each Zillow restricted unit outstanding as of the consummation of the Mergers was assumed by Zillow Group and converted into the right to receive Zillow Group Class A common stock, subject to the same terms as the original restricted unit. | ||
The total purchase price of Trulia was approximately $2.0 billion. During the three months ended March 31, 2015, Zillow Group incurred a total of $12.5 million in acquisition-related costs related to the transaction, which includes $9.1 million of investment banking fees. We have included Trulia’s results of operations prospectively after February 17, 2015, the date of acquisition. Further details on the acquisition of Trulia are presented in Note 6 of these condensed consolidated financial statements. | ||
On February 17, 2015, in connection with the Mergers, Zillow Group undertook a restructuring plan that will result in a total workforce reduction of nearly 350 employees, primarily to eliminate overlapping positions in the sales and marketing functions related to Trulia’s workforce at its Bellevue, Denver, New York and San Francisco locations. The restructuring plan is a result of the integration of Trulia’s business and operations with and into Zillow Group’s business. Employees directly affected by the restructuring plan have been or will be provided with severance payments, stock vesting acceleration and outplacement assistance. Zillow Group expects to complete the restructuring by the end of 2015. As a result of the restructuring plan, Zillow Group recorded a restructuring charge of approximately $25.1 million during the three months ended March 31, 2015 for severance and other personnel related expenses, contract termination costs associated with certain operating leases, and non-cash expenses relating to stock vesting acceleration. Further details on the restructuring are presented in Note 15 of these condensed consolidated financial statements. | ||
Certain Significant Risks and Uncertainties | ||
We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments, including our February 2015 acquisition of Trulia; rates of revenue growth; engagement and usage of our products; scaling and adaptation of existing technology and network infrastructure; competition in our market; management of our growth; qualified employees and key personnel; protection of our brand and intellectual property; changes in government regulation affecting our business; intellectual property infringement and other claims; protection of customers’ information and privacy concerns; and security measures related to our mobile applications and websites, among other things. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Accounting Policies [Abstract] | ||||
Summary of Significant Accounting Policies | Note 2. | Summary of Significant Accounting Policies | ||
Basis of Presentation | ||||
The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes as of and for the year ended December 31, 2014 included in Zillow, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on February 17, 2015. The condensed consolidated balance sheet as of December 31, 2014, included herein, was derived from the audited financial statements of Zillow, Inc. as of that date. | ||||
For financial reporting and accounting purposes, Zillow was the acquirer of Trulia. The results presented in the Condensed Consolidated Financial Statements and the Notes to Condensed Consolidated Financial Statements reflect those of Zillow prior to the completion of the acquisition of Trulia on February 17, 2015, and Trulia’s results of operations have been included prospectively after February 17, 2015. | ||||
The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2015, our results of operations and our cash flows for the three month periods ended March 31, 2015 and 2014. The results of the three month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ended December 31, 2015 or for any interim period or for any other future year. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, website development costs, recoverability of long-lived assets and intangible assets with definite lives, share-based compensation, income tax uncertainties, including a valuation allowance for deferred tax assets, business combinations, goodwill, and restructuring, among others. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. | ||||
Reclassifications | ||||
Certain immaterial reclassifications have been made in the condensed consolidated statements of operations and statements of cash flows to conform data for prior periods to the current format. | ||||
Concentrations of Credit Risk | ||||
Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents, investments and accounts receivable. We place cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit exposure of our investments. | ||||
Credit risk with respect to accounts receivable is dispersed due to the large number of customers. Further, our credit risk on accounts receivable is mitigated by the relatively short payment terms that we offer. Collateral is not required for accounts receivable. We maintain an allowance for doubtful accounts such that receivables are stated at net realizable value. | ||||
Cash and Cash Equivalents | ||||
Cash includes currency on hand as well as demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Our cash equivalents include only investments with original maturities of three months or less. We regularly maintain cash in excess of federally insured limits at financial institutions. | ||||
Restricted Cash | ||||
Restricted cash consists of certificates of deposit held as collateral in our name at a financial institution related to certain of our operating leases. | ||||
Investments | ||||
Our investments consist of fixed income securities, which include U.S. and foreign government agency securities, corporate notes and bonds, municipal securities, commercial paper and certificates of deposit, and are classified as available-for-sale securities beginning on January 1, 2015. As the investments are available to support current operations, our available-for-sale securities are classified as short-term investments. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive loss in shareholders’ equity, while realized gains and losses and other-than-temporary impairments are reported as a component of net loss based on specific identification. An impairment charge is recorded in the condensed consolidated statements of operations for declines in fair value below the cost of an individual investment that are deemed to be other than temporary. We assess whether a decline in value is temporary based on the length of time that the fair market value has been below cost, the severity of the decline and the intent and ability to hold or sell the investment. We did not identify any investments as other-than-temporarily impaired as of March 31, 2015 or December 31, 2014. | ||||
Prior to January 1, 2015 our investments were classified as held-to-maturity and were recorded at amortized cost (see Note 4). | ||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||
Accounts receivable are generally due within 30 days and are recorded net of the allowance for doubtful accounts. We consider accounts outstanding longer than the contractual terms past due. We review accounts receivable on a regular basis and estimate an amount of losses for uncollectible accounts based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. We record changes in our estimate to the allowance for doubtful accounts through bad debt expense and relieve the allowance when accounts are ultimately determined to be uncollectible. Bad debt expense is included in general and administrative expenses. | ||||
Property and Equipment | ||||
Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows: | ||||
Computer equipment | 3 years | |||
Purchased software | 3 years | |||
Office equipment, furniture and fixtures | 5 to 7 years | |||
Leasehold improvements | Shorter of expected useful life or lease term | |||
Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the differences between the proceeds received and the net book value of the disposed asset. | ||||
Website and Software Development Costs | ||||
The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful lives. Amortization expense related to capitalized website and software development costs is included in technology and development expense. | ||||
Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at one year. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. | ||||
Goodwill | ||||
Goodwill represents the excess of the cost of an acquired business over the fair value of the assets acquired at the date of acquisition. We assess the impairment of goodwill on an annual basis, in our fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. | ||||
We assess goodwill for possible impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we determine that it is not more likely than not that the fair value of our reporting unit is less than its carrying amount, then the first and second steps of the goodwill impairment test are unnecessary. If we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we perform the two-step goodwill impairment test. The first step of the goodwill impairment test identifies if there is potential goodwill impairment. If step one indicates that an impairment may exist, a second step is performed to measure the amount of the goodwill impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. If impairment exists, the carrying value of the goodwill is reduced to fair value through an impairment charge recorded in our statements of operations. | ||||
Intangible Assets | ||||
We purchase and license data content from multiple data providers. This data content consists of U.S. county data about home details (e.g., the number of bedrooms, bathrooms, square footage) and other information relating to the purchase price of homes, both current and historical, as well as imagery, mapping and parcel data that is displayed on our mobile applications and websites. Our home details data not only provides information about a home and its related transactions which is displayed on our mobile applications and websites, but is also used in our proprietary valuation algorithms to produce Zestimates, Trulia Estimates, Rent Zestimates and Zillow Home Value Indexes. License agreement terms vary by vendor. In some instances, we retain perpetual rights to this information after the contract ends; in other instances, the information and data are licensed only during the fixed term of the agreement. Additionally, certain data license agreements provide for uneven payment amounts throughout the life of the contract term. | ||||
We capitalize payments made to third parties for data licenses that we expect to provide future economic benefit through the recovery of the costs of these arrangements via the generation of our revenue and margins. For data license contracts that include uneven payment amounts, we capitalize the payments as they are made as an intangible asset and amortize the total contract value over the estimated useful life. For contracts in which we have perpetual rights to the data, the total contract value is amortized on a straight-line basis over the life of the contract plus two years, which is equivalent to the estimated useful life of the asset. For contracts in which we do not have access to the data beyond the contractual term, the total contract value is amortized on a straight line basis over the term of the contract. We evaluate data content contracts for potential capitalization at the inception of the arrangement as well as each time periodic payments to third parties are made. | ||||
The amortization period for the capitalized purchased content is based on our best estimate of the useful life of the asset, which ranges from two to nine years. The determination of the useful life includes consideration of a variety of factors including, but not limited to, our assessment of the expected use of the asset and contractual provisions that may limit the useful life, as well as an assessment of when the data is expected to become obsolete based on our estimates of the diminishing value of the data over time. We evaluate the useful life of the capitalized purchased data content each reporting period to determine whether events and circumstances warrant a revision to the remaining useful life. If we determine the estimate of the asset’s useful life requires modification, the carrying amount of the asset is amortized prospectively over the revised useful life. The capitalized purchased data content is amortized on a straight-line basis as the pattern of delivery of the economic benefits of the data cannot reliably be determined because we do not have the ability to reliably predict future traffic to our websites and mobile applications. | ||||
Under certain other data agreements, the underlying data is obtained on a subscription basis with consistent monthly recurring payment terms over the contractual period. Upon the expiration of such arrangements, we no longer have the right to access the related data, and therefore, the costs incurred under such contracts are not capitalized and are expensed as payments are made. We would immediately lose rights to data under these arrangements if we were to cancel the subscription and/or cease making payments under the subscription arrangements. | ||||
We also have intangible assets for developed technology, customer relationships, trade names and trademarks, advertising relationships and MLS home data feeds which we recorded in connection with acquisitions. Purchased intangible assets with a determinable economic life are carried at cost, less accumulated amortization. These intangible assets are amortized over the estimated useful life of the asset on a straight-line basis. | ||||
Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets | ||||
We evaluate intangible assets and other long-lived assets for impairment whenever events or circumstances indicate that they may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset group to future undiscounted net cash flows expected to be generated. We group assets for purposes of such review at the lowest level for which identifiable cash flows of the asset group are largely independent of the cash flows of the other groups of assets and liabilities. If this comparison indicates impairment, the amount of impairment to be recognized is calculated as the difference between the carrying value and the fair value of the asset group. | ||||
Deferred Revenue | ||||
Deferred revenue consists of prepaid advertising fees received or billed in advance of the delivery or completion of the services, prepaid but unrecognized subscription revenue, and for amounts received in instances when revenue recognition criteria have not been met. Deferred revenue is recognized when the services are provided and all revenue recognition criteria have been met. | ||||
Deferred Rent | ||||
For our operating leases, we recognize rent expense on a straight-line basis over the terms of the leases and, accordingly, we record the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. Landlord-funded leasehold improvements are also recorded as deferred rent liabilities and are amortized as a reduction of rent expense over the non-cancelable term of the related operating lease. | ||||
Restructuring | ||||
The main components of our restructuring plan related to the February 2015 acquisition of Trulia relate to workforce reduction and contract termination costs. Workforce reduction charges are accrued when it is probable that the employees are entitled to the severance payments and the amounts can be reasonably estimated. One-time involuntary termination benefits are accrued when the plan of termination has been communicated to the employees and certain other criteria are met. Share-based compensation expense related to acceleration of share-based awards assumed in connection with the acquisition of Trulia is recognized over the remaining requisite service period. Contract termination costs are recognized as a liability when a contract is terminated in accordance with its terms or at the cease-use date. The cumulative effect of a change resulting from a revision to either the timing or the amount of estimated cash flows is recognized as an adjustment to the liability in the period of the change. If the amounts and timing of cash flows from restructuring activities are significantly different from what we have estimated, the actual amount of restructuring and other related charges could be materially different than those we have recorded. Further details on the restructuring are presented in Note 15 of these condensed consolidated financial statements. | ||||
Business Combinations | ||||
We recognize identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions for the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that we identify adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our condensed consolidated statements of operations. Further details on the February 2015 acquisition of Trulia are presented in Note 6 of these condensed consolidated financial statements. | ||||
Revenue Recognition | ||||
In general, we recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered to the customer, (iii) the fee is fixed or determinable, and (iv) collectability is reasonably assured. We consider a signed agreement, a binding insertion order or other similar documentation reflecting the terms and conditions under which products or services will be provided to be persuasive evidence of an arrangement. Collectability is assessed based on a number of factors, including payment history and the creditworthiness of a customer. If it is determined that collection is not reasonably assured, revenue is not recognized until collection becomes reasonably assured, which is generally upon receipt of cash. | ||||
We generate revenue from the sale of advertising services and our suite of tools to businesses and professionals primarily associated with the real estate and mortgage industries. These professionals include local real estate professionals, mortgage professionals and brand advertisers. Our two revenue categories are marketplace revenue and display revenue. Incremental direct costs incurred related to the acquisition or origination of a customer contract in a transaction that results in the deferral of revenue are expensed as incurred. | ||||
Marketplace Revenue. Marketplace revenue consists of real estate, mortgages, and Market Leader revenue. | ||||
Real estate revenue primarily includes revenue from advertising and a suite of tools sold to real estate professionals, as well as revenue generated by Zillow Rentals, which includes our rentals marketplace and suite of tools for rental professionals. | ||||
Our Zillow Premier Agent program, which is included in real estate revenue, offers a suite of marketing and business technology solutions to help real estate agents grow their businesses and personal brands. The Premier Agent program allows agents to select products and services that they can tailor to meet their business and advertising needs. The program has three tiers of participation including Premier Platinum, our flagship product, as well as Premier Gold and Premier Silver, to meet different marketing and business needs of a broad range of agents. All tiers of Premier Agents receive access to a dashboard portal on our website that provides individualized program performance analytics, as well as our personalized website service, and our free customer relationship management, or CRM, tool that captures detailed information about each contact made with a Premier Agent through our mobile and web platforms. Our Premier Gold product also includes featured listings whereby the agent’s listings will appear at the top of search results on our mobile and web platforms. Our Premier Platinum product includes the dashboard portal on our website, our personalized website service, our CRM tool, featured listings, and inclusion on our buyer’s agent list, whereby the agent appears as the agent to contact for listings in the purchased zip code. We charge for our Platinum Premier Agent product based on the number of impressions delivered on our buyer’s agent list in zip codes purchased and a contracted maximum cost per impression. Our Platinum Premier Agent product includes multiple deliverables which are accounted for as a single unit of accounting, as the delivery or performance of the undelivered elements is based on traffic to our mobile applications and websites. We recognize revenue related to our impression-based Platinum Premier Agent product based on the lesser of (i) the actual number of impressions delivered on our buyer’s agent list during the period multiplied by the contracted maximum cost per impression, or (ii) the contractual maximum spend on a straight-line basis during the contractual period over which the services are delivered, typically over a period of six months or twelve months and then month-to-month thereafter. We charge a fixed subscription fee for Zillow’s Premier Gold and Premier Silver subscription products. Subscription advertising revenue for our Premier Gold and Premier Silver subscription products is recognized on a straight-line basis during the contractual period over which the services are delivered, typically over a period of six months and then month-to-month thereafter. | ||||
Our Trulia real estate products included in real estate revenue are primarily sold on a fixed fee subscription basis, and include Trulia Local Ads, Trulia Mobile Ads, Trulia Pro with featured listings, and Trulia Seller Ads. Trulia Local Ads and Trulia Mobile Ads enable real estate professionals to promote themselves on Trulia’s search results pages and property details pages for a local market area. Real estate professionals purchase subscriptions to these products based upon their specified market share for a city or zip code, at a fixed monthly price, for periods ranging from one month to one year, with pricing depending on demand, location, and the percentage of market share purchased. Trulia’s featured listings product allows real estate professionals to receive prominent placement of their listings in Trulia’s search results. Real estate professionals sign up for new subscriptions to this product at a fixed monthly price for periods that generally range from six months to 12 months. Trulia Seller Ads enable real estate professionals to generate leads from consumers interested in selling their homes. | ||||
Rentals revenue, which is included in real estate revenue, primarily includes advertising sold to property managers and other rental professionals on a cost per lead and cost per lease basis. We recognize revenue as leads are delivered to rental professionals or as qualified leases are confirmed. | ||||
Mortgages revenue primarily includes advertising sold to mortgage lenders on a cost-per-click (“CPC”) basis, related to Zillow Mortgages, as well as revenue generated by Mortech, which provides subscription-based mortgage software solutions, including a product and pricing engine and lead management platform, for which we recognize revenue on a straight-line basis during the contractual period over which the services are delivered. In Zillow Mortgages, participating qualified mortgage lenders make a prepayment to gain access to consumers interested in connecting with mortgage professionals. Consumers who request rates for mortgage loans in Zillow Mortgages are presented with personalized lender quotes from participating lenders. We only charge mortgage lenders a fee when users click for more information regarding a mortgage loan quote. Mortgage lenders who exhaust their initial prepayment can then prepay additional funds to continue to participate in the marketplace. We recognize revenue when a user clicks on a mortgage advertisement or to obtain additional information about a mortgage loan quote. | ||||
Market Leader revenue primarily includes a comprehensive premium software-as-a-service based marketing product typically sold to real estate professionals as a bundle of products under a fixed fee subscription. We also sell a base version of these products to strategic franchise networks for specified contractual amounts over a number of years and partner with them to drive adoption of our premium solution across their network. | ||||
Display Revenue. Display revenue primarily consists of graphical mobile and web advertising sold on a cost per thousand impressions (“CPM”) or CPC basis to advertisers promoting their brands on our mobile applications and websites and our partner websites, primarily in the real estate industry, including real estate brokerages, home builders, mortgage lenders and home services providers. Our advertising customers also include telecommunications, automotive, insurance and consumer products companies. Impressions are the number of times an advertisement is loaded on a web page and clicks are the number of times users click on an advertisement. Pricing is primarily based on advertisement size and position on our mobile applications and websites, and fees are generally billed monthly. We recognize display revenue as clicks occur or as impressions are delivered to users interacting with our mobile applications or websites. | ||||
There were no customers that generated 10% or more of our total revenue during the three months ended March 31, 2015 or 2014. | ||||
Multiple-Element Arrangements. We enter into arrangements with customers that include combinations of CPC media placements, CPM media placements and subscription products. | ||||
We allocate arrangement consideration in multiple-element revenue arrangements at the inception of an arrangement to all deliverables or those packages in which all components of the package are delivered at the same time based on the relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor-specific objective evidence (“VSOE”) if available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. | ||||
VSOE - We determine VSOE based on our historical pricing and discounting practices for the specific product when sold separately. In determining VSOE, we require that a substantial majority of the standalone selling prices for these products fall within a reasonably narrow pricing range. For certain subscription products, we have been able to establish VSOE. | ||||
TPE - When VSOE cannot be established for deliverables in multiple-element arrangements, we apply judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, our go-to-market strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of the products cannot be obtained. Furthermore, we are unable to reliably determine what similar competitor selling prices are on a standalone basis. As a result, we have not been able to establish selling price based on TPE. | ||||
BESP - When we are unable to establish selling price using VSOE or TPE, we use BESP in our allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the service was sold regularly on a standalone basis. As we have not been able to establish VSOE or TPE for CPM display placements, CPC display placements and certain subscription products, we determine BESP for these deliverables based on the following: | ||||
• | The list price represents a component of the go-to-market strategy established by senior management. Our list prices are based on the features of the products offered. These features, which consist of the size and placement of the advertisements on our mobile applications and websites, impact the list prices which vary depending on the specifications of the features. In addition, the list prices are impacted by market conditions, including the conditions of the real estate market and economy in general, and our competitive landscape; and | |||
• | Analysis of our current and historical selling prices for these deliverables. | |||
We limit the amount of allocable arrangement consideration to amounts that are fixed or determinable and that are not contingent on future performance or future deliverables. We regularly review our BESP. Changes in assumptions or judgments or changes to the elements in the arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period. | ||||
We recognize the relative fair value of the products as they are delivered assuming all other revenue recognition criteria are met. | ||||
Cost of Revenue | ||||
Our cost of revenue consists of expenses related to operating our mobile applications and websites, including associated headcount expenses, such as salaries and benefits and share-based compensation expense and bonuses, as well as credit card fees, ad serving costs paid to third parties, revenue-sharing costs related to our commercial business relationships, costs to generate leads for customers, multiple listing services fees and costs associated with the operation of our data center and customer websites. | ||||
Technology and Development | ||||
Research and development costs are expensed as incurred and are recorded in technology and development expenses. These costs consist primarily of technology and development headcount related expenses including salaries, bonuses, benefits and share-based compensation expense primarily associated with developing new technologies. Technology and development expenses also include amortization of intangible assets, including acquired intangible assets, purchased content and capitalized website development costs, and other data content expense. | ||||
Share-Based Compensation | ||||
We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest. | ||||
We use the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, we make assumptions about risk-free interest rates, dividend yields, volatility, and weighted-average expected lives, including estimated forfeiture rates. Risk-free interest rates are derived from U.S. Treasury securities as of the option award grant date. Expected dividend yield is based on our historical dividend payments, which have been zero to date. The expected volatility for our Class A common stock is estimated using a combination of our historical volatility and the published historical volatilities of industry peers in the online publishing market representing the verticals in which we operate. We estimate the weighted-average expected life of the option awards as the average of the option vesting schedule and the term of the award, since we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time share-based awards have been exercisable. The term of the award is estimated using the simplified method, as awards are plain vanilla option awards. Forfeiture rates are estimated using historical actual forfeiture trends as well as our judgment of future forfeitures. These rates are evaluated at least quarterly and any change in compensation expense is recognized in the period of the change. The estimation of option awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period the estimates are revised. We consider many factors when estimating expected forfeitures, including employee class and historical experience. Actual results, and future changes in estimates, may differ substantially from management’s current estimates. | ||||
For issuances of restricted stock awards, restricted stock units and restricted units, we determine the fair value of the award based on the market value of our Class A common stock at the date of grant. | ||||
Advertising Costs | ||||
Advertising costs are expensed as incurred. Advertising costs are recorded in sales and marketing expenses. | ||||
Income Taxes | ||||
We use the asset and liability approach for accounting and reporting income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. A valuation allowance against deferred tax assets would be established if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some or all of the deferred tax assets are not expected to be realized. | ||||
We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. Interest and penalties related to unrecognized tax benefits are recorded as income tax expense. | ||||
Recently Issued Accounting Standards | ||||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on the disclosure of uncertainties about an entity’s ability to continue as a going concern. This standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual reporting periods ending after December 15, 2016, and early adoption is permitted. We expect to adopt this guidance on January 1, 2017. We do not expect the adoption of this guidance to have any impact on our financial position, results of operations or cash flows. | ||||
In May 2014, the FASB issued guidance on revenue recognition. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, early adoption is not permitted, and must be applied retrospectively or modified retrospectively. We expect to adopt this guidance on January 1, 2017. We have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations or cash flows, if any, or our approach to adoption. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurements | Note 3. | Fair Value Measurements | |||||||||||
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | |||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
• | Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. | ||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require. | ||||||||||||
We applied the following methods and assumptions in estimating our fair value measurements: | |||||||||||||
Cash equivalents — Cash equivalents are comprised of highly liquid investments, including money market funds, foreign government securities and certificates of deposit, with original maturities of less than three months. The fair value measurement of these assets is based on quoted market prices in active markets and these assets are recorded at fair value. | |||||||||||||
Investments — Our investments consist of fixed income securities, which include U.S. and foreign government agency securities, corporate notes and bonds, municipal securities, commercial paper and certificates of deposit. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||||||||
Restricted cash — Our restricted cash consists of certificates of deposit held as collateral in our name at a financial institution related to certain of our operating leases. The fair value measurement of these assets is based on observable market-based inputs. | |||||||||||||
The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of March 31, 2015 (in thousands): | |||||||||||||
March 31, 2015 | |||||||||||||
Total | Level 1 | Level 2 | |||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 111,557 | $ | 111,557 | $ | — | |||||||
Certificates of deposit | 450 | — | 450 | ||||||||||
Short-term investments: | |||||||||||||
U.S government agency securities | 164,929 | 164,929 | — | ||||||||||
Corporate notes and bonds | 82,010 | — | 82,010 | ||||||||||
Municipal securities | 43,782 | — | 43,782 | ||||||||||
Certificates of deposit | 15,858 | — | 15,858 | ||||||||||
Commercial paper | 7,993 | — | 7,993 | ||||||||||
Foreign government securities | 6,009 | — | 6,009 | ||||||||||
Restricted cash | 6,800 | — | 6,800 | ||||||||||
Total | $ | 439,388 | $ | 276,486 | $ | 162,902 | |||||||
The following table presents the fair value, by level within the fair value hierarchy, of our cash equivalents and investments as of December 31, 2014 (in thousands): | |||||||||||||
December 31, 2014 | |||||||||||||
Total | Level 1 | Level 2 | |||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 98,645 | $ | 98,645 | $ | — | |||||||
Foreign government securities | 9,035 | — | 9,035 | ||||||||||
Certificates of deposit | 2,975 | — | 2,975 | ||||||||||
Short-term investments: | |||||||||||||
U.S government agency securities | 118,342 | 118,342 | — | ||||||||||
Corporate notes and bonds | 78,746 | — | 78,746 | ||||||||||
Municipal securities | 26,256 | — | 26,256 | ||||||||||
Foreign government securities | 8,570 | — | 8,570 | ||||||||||
Commercial paper | 7,987 | — | 7,987 | ||||||||||
Certificates of deposit | 6,928 | — | 6,928 | ||||||||||
Long-term investments: | |||||||||||||
U.S government agency securities | 63,515 | 63,515 | — | ||||||||||
Municipal securities | 12,917 | — | 12,917 | ||||||||||
Corporate notes and bonds | 6,694 | — | 6,694 | ||||||||||
Certificates of deposit | 200 | — | 200 | ||||||||||
Total | $ | 440,810 | $ | 280,502 | $ | 160,308 | |||||||
As of December 31, 2014, the amortized cost of cash equivalents and held-to-maturity investments approximated their fair value. | |||||||||||||
See Note 9 for the carrying amount and estimated fair value of the Company’s convertible senior notes. |
Cash_Cash_Equivalents_Investme
Cash, Cash Equivalents, Investments and Restricted Cash | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Cash, Cash Equivalents, Investments and Restricted Cash | Note 4. | Cash, Cash Equivalents, Investments and Restricted Cash | |||||||||||||||
On January 1, 2015 we transferred our cash equivalent and investment portfolio of approximately $440.8 million from held-to-maturity to available-for-sale, which resulted in the recognition of an insignificant loss of $0.1 million. The transfer of the investment portfolio to available-for-sale was made to provide increased flexibility in the use of our investments to support current operations. | |||||||||||||||||
The following table presents the amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash and cash equivalents, available-for-sale investments and restricted cash as of March 31, 2015 (in thousands): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
Cash | $ | 195,845 | $ | — | $ | — | $ | 195,845 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | 111,557 | — | — | 111,557 | |||||||||||||
Certificates of deposit | 450 | — | — | 450 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S government agency securities | 164,872 | 78 | (21 | ) | 164,929 | ||||||||||||
Corporate notes and bonds | 82,041 | 15 | (46 | ) | 82,010 | ||||||||||||
Municipal securities | 43,765 | 26 | (9 | ) | 43,782 | ||||||||||||
Certificates of deposit | 15,856 | 3 | (1 | ) | 15,858 | ||||||||||||
Commercial paper | 7,993 | — | — | 7,993 | |||||||||||||
Foreign government securities | 6,009 | — | — | 6,009 | |||||||||||||
Restricted cash | 6,800 | — | — | 6,800 | |||||||||||||
Total | $ | 635,188 | $ | 122 | $ | (77 | ) | $ | 635,233 | ||||||||
The following table presents available-for-sale investments by contractual maturity date as of March 31, 2015 (in thousands): | |||||||||||||||||
Amortized | Estimated Fair | ||||||||||||||||
Cost | Market Value | ||||||||||||||||
Due in one year or less | $ | 248,719 | $ | 248,752 | |||||||||||||
Due after one year through two years | 71,817 | 71,829 | |||||||||||||||
Total | $ | 320,536 | $ | 320,581 | |||||||||||||
Property_and_Equipment_net
Property and Equipment, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment, net | Note 5. | Property and Equipment, net | |||||||
The following table presents the detail of property and equipment as of the dates presented (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Website development costs | $ | 59,618 | $ | 65,224 | |||||
Computer equipment | 17,450 | 13,243 | |||||||
Leasehold improvements | 30,085 | 10,617 | |||||||
Software | 5,875 | 3,431 | |||||||
Construction-in-progress | 11,444 | 9,307 | |||||||
Office equipment, furniture and fixtures | 10,218 | 6,482 | |||||||
Property and equipment | 134,690 | 108,304 | |||||||
Less: accumulated amortization and depreciation | (61,754 | ) | (66,704 | ) | |||||
Property and equipment, net | $ | 72,936 | $ | 41,600 | |||||
We recorded depreciation expense related to property and equipment (other than website development costs) of $2.2 million and $1.3 million, respectively, during the three months ended March 31, 2015 and 2014. | |||||||||
We capitalized $10.0 million and $5.6 million, respectively, in website development costs during the three months ended March 31, 2015 and 2014. Amortization expense for website development costs included in technology and development expenses was $4.9 million and $4.2 million, respectively, during the three months ended March 31, 2015 and 2014. | |||||||||
Construction-in-progress primarily consists of website development costs that are capitalizable, but for which the associated applications had not been placed in service. |
Acquisition_of_Trulia
Acquisition of Trulia | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisition of Trulia | Note 6. | Acquisition of Trulia | |||||||
Effective February 17, 2015, pursuant to the Merger Agreement dated as of July 28, 2014 by and among Zillow, Zillow Group and Trulia, following the consummation of the Mergers contemplated by the Merger Agreement, each of Zillow and Trulia became wholly owned subsidiaries of Zillow Group. Prior to the closing, Zillow Group formed two wholly owned subsidiaries, Zebra Merger Sub, Inc. and Tiger 1 Merger Sub, Inc. Pursuant to the Merger Agreement, Zebra Merger Sub, Inc. merged with and into Zillow (the “Zillow Merger”), Zebra Merger Sub, Inc. ceased to exist, and Zillow is the surviving corporation, and Tiger 1 Merger Sub, Inc. merged with and into Trulia (the “Trulia Merger”), Tiger 1 Merger Sub, Inc. ceased to exist, and Trulia is the surviving corporation. The acquisition of Trulia aligns with our growth strategies, including focusing on consumers and deepening, strengthening, and expanding our marketplaces. With the addition of Trulia, we expanded our audience and added another consumer brand that offers buyers, sellers, homeowners and renters access to information about homes and real estate for free, and provides advertising and software solutions that help real estate professionals grow their business. | |||||||||
At the effective time of the Zillow Merger, each share of Zillow Class A common stock, other than Zillow excluded shares (as defined below), was converted into the right to receive one share of fully paid and nonassessable Zillow Group Class A common stock, and each share of Zillow Class B common stock, other than Zillow excluded shares, was converted into the right to receive one share of fully paid and nonassessable Zillow Group Class B common stock. Shares of Zillow common stock held by Zillow as treasury stock or by Zillow Group, Trulia, or any direct or indirect wholly owned subsidiary of Zillow or Trulia (“Zillow excluded shares”) were canceled and did not receive the Zillow merger consideration. Generally, each Zillow stock option and restricted stock unit outstanding (whether or not vested or exercisable) as of the effective time of the Zillow Merger was assumed by Zillow Group and converted into a corresponding equity award to purchase or acquire shares of Zillow Group Class A common stock and remains subject to the same terms, conditions and restrictions as the original option or award. Any unvested shares of Zillow Class A common stock subject to a repurchase option, risk of forfeiture or other condition as of the effective time of the Zillow Merger were exchanged for shares of Zillow Group Class A common stock that are also unvested and subject to the same repurchase option, risk of forfeiture or other condition. Each Zillow restricted unit outstanding as of the effective time of the Zillow Merger was assumed by Zillow Group and converted into the right to receive Zillow Group Class A common stock, subject to the same terms, conditions and restrictions as the original restricted unit. | |||||||||
At the effective time of the Trulia Merger, each share of Trulia common stock, other than Trulia excluded shares (as defined below), was converted into the right to receive 0.444 of a share of fully paid and nonassessable Zillow Group Class A common stock. Shares of Trulia common stock held by Trulia as treasury stock or by Zillow Group, Zillow, or any direct or indirect wholly owned subsidiary of Zillow or Trulia (“Trulia excluded shares”) were canceled and did not receive the Trulia merger consideration. Generally, each Trulia stock option, restricted stock unit, and stock appreciation right outstanding (whether or not vested or exercisable) as of the effective time of the Trulia Merger was assumed by Zillow Group and converted into a corresponding equity award to purchase, acquire shares of, or participate in the appreciation in price of Zillow Group Class A common stock and remains subject to the same terms, conditions and restrictions as the original option or award, subject to specified adjustments to reflect the effect of the Trulia exchange ratio. Each outstanding unvested Trulia stock option and restricted stock unit held by a member of the Trulia board of directors immediately prior to the effective time of the Trulia Merger who was not an employee of Trulia or any subsidiary of Trulia became fully vested immediately prior to the effective time of the Trulia Merger in accordance with the terms of the applicable award agreements. | |||||||||
Our acquisition of Trulia has been accounted for as a business combination, and assets acquired and liabilities assumed were recorded at their estimated fair values as of February 17, 2015. Goodwill, which represents the expected synergies from combining the acquired assets and the operations of the acquirer, as well as intangible assets that do not qualify for separate recognition, is measured as of the acquisition date as the excess of consideration transferred, which is also measured at fair value, and the net of the fair values of the assets acquired and the liabilities assumed as of the acquisition date. | |||||||||
In all cases in which Zillow Group’s closing stock price is a determining factor in arriving at the amount of merger consideration, the stock price assumed is the closing price of Zillow Class A common stock on NASDAQ on February 17, 2015 ($109.14 per share). The purchase price to effect the acquisition of Trulia of approximately $2.0 billion is summarized in the following table (in thousands): | |||||||||
Value of Class A Common stock issued | $ | 1,883,728 | |||||||
Substituted stock options and stock appreciation rights attributable to pre-combination service | 54,853 | ||||||||
Substituted restricted stock units attributable to pre-combination service | 27,798 | ||||||||
Cash paid in lieu of fractional outstanding shares | 41 | ||||||||
Total purchase price | $ | 1,966,420 | |||||||
A total of 17,259,704 shares of Zillow Group Class A common stock were issued in connection with the acquisition of Trulia. Trulia stockholders did not receive any fractional shares of Zillow Group common stock in connection with the Mergers. Instead of receiving any fractional shares, each holder of Trulia common stock was paid an amount in cash (without interest) equal to such fractional amount multiplied by the last reported sale price of Zillow Class A common stock on NASDAQ on the last complete trading day prior to the date of the effective time of the Trulia Merger. | |||||||||
A portion of the purchase price has been attributed to the substitution of Trulia’s stock options, restricted stock units and stock appreciation rights outstanding as of February 17, 2015, for corresponding stock options, restricted stock units and stock appreciation rights to purchase, vest in or participate in the appreciation in price of shares of Zillow Group Class A common stock, all at an exchange ratio of 0.444. The fair value of Trulia’s share-based awards assumed in connection with the acquisition, including stock options, restricted stock units and stock appreciation rights, which relate to post-combination service will be recorded by Zillow Group as share-based compensation expense ratably over the remaining related vesting period of the respective award. The share-based compensation expense related to stock options and stock appreciation rights assumed is estimated at the acquisition date using the Black-Scholes-Merton option-pricing model, assuming no dividends, expected volatility of 53%, a risk-free interest rate of 1.10%, and an expected life of three years. For restricted stock units assumed, Zillow Group uses the market value of Zillow’s Class A common stock on the date of acquisition to determine the fair value of the award. | |||||||||
The total purchase price has been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition date. Based upon the fair values determined by us, in which we considered or relied in part upon a valuation report of a third-party expert, the total purchase price was allocated as follows (in thousands): | |||||||||
Cash and cash equivalents | $ | 173,447 | |||||||
Accounts receivable | 13,093 | ||||||||
Prepaid expenses and other current assets | 20,833 | ||||||||
Restricted cash | 6,946 | ||||||||
Property and equipment | 30,189 | ||||||||
Other assets | 434 | ||||||||
Identifiable intangible assets | 549,000 | ||||||||
Goodwill | 1,737,075 | ||||||||
Accounts payable, accrued expenses and other current liabilities | (51,063 | ) | |||||||
Accrued compensation and benefits | (8,324 | ) | |||||||
Deferred revenue | (8,300 | ) | |||||||
Long-term debt | (230,000 | ) | |||||||
Debt premium recorded in additional paid-in capital | (126,386 | ) | |||||||
Deferred tax liabilities and other long-term liabilities | (140,524 | ) | |||||||
Total preliminary estimated purchase price | $ | 1,966,420 | |||||||
The preliminary estimated fair value of identifiable intangible assets acquired consisted of the following (in thousands): | |||||||||
Preliminary | Estimated | ||||||||
Estimated | Useful Life | ||||||||
Fair Value | (in years) | ||||||||
Trulia trade names and trademarks | $ | 351,000 | Indefinite | ||||||
Market Leader trade names and trademarks | 2,000 | 2 | |||||||
Customer relationships | 92,000 | 7-Mar | |||||||
Developed technology | 91,000 | 7-Mar | |||||||
Advertising relationships | 9,000 | 3 | |||||||
MLS home data feeds | 4,000 | 3 | |||||||
Total | $ | 549,000 | |||||||
The preliminary estimated fair value of the intangible assets acquired was determined by Zillow Group, and Zillow Group considered or relied in part upon a valuation report of a third-party expert. Zillow Group used an income approach to measure the fair value of the trade names and trademarks and the developed technology based on the relief-from-royalty method. Zillow Group used an income approach to measure the fair value of the customer relationships based on the excess earnings method, whereby the fair value is estimated based upon the present value of cash flows that the applicable asset is expected to generate. Zillow Group used an income approach to measure the fair value of the advertising relationships based on a with and without analysis, whereby the fair value is estimated based on the present value of cash flows the combined business is expected to generate with and without the advertising relationships. Zillow Group used a cost approach to measure the fair value of the MLS home data feeds based on the estimated cost to replace the data feed library. These fair value measurements were based on Level 3 measurements under the fair value hierarchy. | |||||||||
A portion of the total purchase price was allocated to Trulia’s 2020 Notes (see Note 9). In accordance with the accounting guidance related to business combinations, the 2020 Notes are recognized at fair value as of the effective date of the Mergers. The preliminary estimated fair value of the 2020 Notes is approximately $356.4 million. The preliminary estimated fair value of the 2020 Notes was determined by Zillow Group, and Zillow Group considered or relied in part upon a valuation report of a third-party expert. The preliminary estimated fair value of the 2020 Notes was determined through combination of the use of a binomial lattice valuation model and consideration of quoted market prices. The fair value is classified as Level 3 due to the use of significant unobservable inputs such as implied volatility of Zillow Group’s Class A common stock, discount spread and the limited trading activity for the 2020 Notes. Given the preliminary fair value of the 2020 Notes of $356.4 million is at a substantial premium to the principal amount of $230.0 million, the premium amount of $126.4 million has been recorded as additional paid-in capital in the condensed consolidated balance sheet as of the effective date of the Mergers. Accordingly, Zillow Group has recognized the liability component of the 2020 Notes at the stated par amount in the condensed consolidated balance sheet as of the effective date of the Mergers. The conversion feature included in the 2020 Notes is not required to be bifurcated and separately accounted for as it meets the equity scope exception given the conversion feature (i) is indexed to Zillow Group’s Class A common stock and (ii) would be classified in shareholder’s equity. Further, the 2020 Notes do not permit or require Zillow Group to settle the debt in cash (in whole or in part) upon conversion. | |||||||||
A portion of the total purchase price was allocated to deferred tax liabilities primarily related to an indefinite-lived intangible asset generated in connection with the Mergers. Due to the recognition of a $351.0 million indefinite-lived Trulia trade name and trademark intangible asset as of the effective date of the Mergers, a deferred tax liability of $140.4 million is recognized which cannot be offset by the recognized deferred tax assets. | |||||||||
Our estimates and assumptions related to the purchase price allocation are preliminary and subject to change during the measurement period (up to one year from the acquisition date) as we finalize the amount of intangible assets, goodwill, accrued expenses and deferred taxes recorded in connection with the acquisition. | |||||||||
Acquisition-related costs incurred, which primarily included investment banker fees, legal, accounting, tax, regulatory filing and printing fees, were expensed as incurred. Acquisition-related costs of $12.5 million for the three months ended March 31, 2015 are included as a separate line item in our condensed consolidated statement of operations. | |||||||||
The results of operations related to the acquisition of Trulia have been included in our financial statements since the date of acquisition of February 17, 2015. However, disclosure of the amounts of revenue and earnings of the acquiree since the acquisition date is impracticable because discrete financial information is not available as we have one operating segment. | |||||||||
Unaudited Pro Forma Financial Information | |||||||||
The following unaudited pro forma condensed combined financial information gives effect to the acquisition of Trulia as if it were consummated on January 1, 2014 (the beginning of the comparable prior reporting period), and includes pro forma adjustments primarily related to the amortization of acquired intangible assets, share-based compensation expense attributable to substituted stock options, restricted stock units and stock appreciation rights, direct and incremental acquisition-related costs reflected in the historical financial statements, and the elimination of Trulia’s historical amortization of capitalized website development costs. The unaudited pro forma condensed combined financial information is presented for informational purposes only. The unaudited pro forma condensed combined financial information is not intended to represent or be indicative of the results of operations that would have been reported had the acquisition occurred on January 1, 2014 and should not be taken as representative of future results of operations of the combined company. | |||||||||
The following table presents the unaudited pro forma condensed combined financial information (in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue | $ | 162,531 | $ | 120,732 | |||||
Net loss | $ | (17,854 | ) | $ | (23,806 | ) | |||
Net loss per share – basic and diluted | $ | (0.31 | ) | $ | (0.42 | ) | |||
Goodwill
Goodwill | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | Note 7. | Goodwill | |||
The following table presents the change in goodwill from December 31, 2014 through March 31, 2015 (in thousands): | |||||
Balance as of December 31, 2014 | $ | 96,352 | |||
Goodwill recorded in connection with the acquisition of Trulia | 1,737,075 | ||||
Balance as of March 31, 2015 | $ | 1,833,427 | |||
The goodwill recorded in connection with the February 2015 acquisition of Trulia, which is not deductible for tax purposes, includes intangible assets that do not qualify for separate recognition, such as the assembled workforce and anticipated synergies from complementary products, and largely non-overlapping customer bases. |
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Intangible Assets | Note 8. | Intangible Assets | |||||||||||
The following tables present the detail of intangible assets subject to amortization as of the dates presented (in thousands): | |||||||||||||
March 31, 2015 | |||||||||||||
Cost | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
Purchased content | $ | 24,899 | $ | (15,568 | ) | $ | 9,331 | ||||||
Customer relationships | 101,225 | (5,554 | ) | 95,671 | |||||||||
Developed technology | 104,595 | (7,612 | ) | 96,983 | |||||||||
Trade names and trademarks | 5,261 | (1,618 | ) | 3,643 | |||||||||
Advertising relationships | 9,000 | (348 | ) | 8,652 | |||||||||
MLS home data feeds | 4,000 | (155 | ) | 3,845 | |||||||||
Total | $ | 248,980 | $ | (30,855 | ) | $ | 218,125 | ||||||
December 31, 2014 | |||||||||||||
Cost | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
Purchased content | $ | 24,615 | $ | (13,904 | ) | $ | 10,711 | ||||||
Developed technology | 13,595 | (5,322 | ) | 8,274 | |||||||||
Customer relationships | 9,225 | (3,386 | ) | 5,838 | |||||||||
Trade names and trademarks | 3,261 | (1,327 | ) | 1,934 | |||||||||
Total | $ | 50,696 | $ | (23,939 | ) | $ | 26,757 | ||||||
Amortization expense recorded for intangible assets for the three months ended March 31, 2015 and 2014 was $6.9 million and $2.6 million, respectively. These amounts are included in technology and development expenses. The remaining weighted-average amortization period for all intangible assets as of March 31, 2015 is approximately 6.3 years. | |||||||||||||
Estimated future amortization expense for intangible assets, including amortization related to future commitments (see Note 14), as of March 31, 2015 is as follows (in thousands): | |||||||||||||
Remainder of 2015 | $ | 34,540 | |||||||||||
2016 | 47,995 | ||||||||||||
2017 | 44,092 | ||||||||||||
2018 | 33,888 | ||||||||||||
2019 | 30,872 | ||||||||||||
All future years | 75,222 | ||||||||||||
Total future amortization expense | $ | 266,609 | |||||||||||
As of March 31, 2015, we have an indefinite-lived intangible asset for $351.0 million that we recorded in connection with our February 2015 acquisition of Trulia for Trulia’s trade names and trademarks that is not subject to amortization. See Note 6 for further details related to the acquisition. |
Convertible_Senior_Notes
Convertible Senior Notes | 3 Months Ended | ||
Mar. 31, 2015 | |||
Debt Disclosure [Abstract] | |||
Convertible Senior Notes | Note 9. | Convertible Senior Notes | |
In connection with the February 2015 acquisition of Trulia (see Note 6), a portion of the total purchase price was allocated to Trulia’s Convertible Senior Notes due in 2020 (the “2020 Notes”), which are unsecured senior obligations. Pursuant to and in accordance with the Merger Agreement, Zillow Group entered into a supplemental indenture in respect of the 2020 Notes in the aggregate principal amount of $230.0 million, which supplemental indenture provides, among other things, that, at the effective time of the Trulia Merger, (i) each outstanding 2020 Note is no longer convertible into shares of Trulia common stock and is convertible solely into shares of Zillow Group Class A common stock, pursuant to, and in accordance with, the terms of the indenture governing the 2020 Notes, and (ii) Zillow Group guaranteed all of the obligations of Trulia under the 2020 Notes and related indenture. The aggregate principal amount of the 2020 Notes is due on December 15, 2020 if not earlier converted or redeemed. Interest is payable on the 2020 Notes at the rate of 2.75% semi-annually on June 15 and December 15 of each year. | |||
Holders of the 2020 Notes may convert all or any portion of their notes, in multiples of $1,000 principal amount, at their option at any time prior to the close of business on the business day immediately preceding the maturity date. In connection with the supplemental indenture in respect of the 2020 Notes, the conversion ratio immediately prior to the effective time of the Trulia Merger of 27.8303 shares of Trulia common stock per $1,000 principal amount of notes has been adjusted to 12.3567 shares of our Class A common stock per $1,000 principal amount of notes based on the exchange ratio of 0.444 per the Merger Agreement. This is equivalent to an initial conversion price of approximately $80.93 per share of our Class A common stock. The conversion rate will be adjusted for certain dilutive events and will be increased in the case of corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the indenture governing the notes). The conversion option of the 2020 Notes has no cash settlement provisions. The conversion option does not meet the criteria for separate accounting as a derivative as it is indexed to our own stock. | |||
The holders of the 2020 Notes will have the ability to require us to repurchase the notes in whole or in part upon the occurrence of an event that constitutes a “Fundamental Change” (as defined in the indenture governing the notes, including such events as a “change in control” or “termination of trading”, subject to certain exceptions). In such case, the repurchase price would be 100% of the principal amount of the 2020 Notes plus accrued and unpaid interest, if any, to, but excluding, the Fundamental Change repurchase date. Certain events are also considered “Events of Default,” which may result in the acceleration of the maturity of the 2020 Notes, as described in the indenture governing the notes. There are no financial covenants associated with the 2020 Notes. | |||
We may not redeem the 2020 Notes prior to December 20, 2018. We may redeem the 2020 Notes, at our option, in whole or in part on or after December 20, 2018, if the last reported sale price per share of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period. | |||
Interest expense related to the 2020 Notes for the period from February 17, 2015 through March 31, 2015 was $0.7 million. Accrued interest related to the 2020 Notes as of March 31, 2015 is $1.8 million, and is recorded in accrued expenses and other current liabilities in our condensed consolidated balance sheet. | |||
The estimated fair value and carrying value of the 2020 Notes were $356.4 million and $230.0 million, respectively, as of March 31, 2015. The preliminary estimated fair value of the 2020 Notes was determined through combination of the use of a binomial lattice valuation model and consideration of quoted market prices. The fair value is classified as Level 3 due to the use of significant unobservable inputs such as implied volatility of Zillow Group’s Class A common stock, discount spread and the limited trading activity for the 2020 Notes. We determined the fair value of the 2020 Notes as of March 31, 2015 using the following assumptions: | |||
Stock price | $109.14 | ||
Time to maturity | 5.83 years | ||
Volatility | 35% | ||
Risk-free rate | 1.78% | ||
Discount spread | 6.0% - 7.0% |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||
Income Taxes | Note 10. | Income Taxes |
We are subject to federal and state income taxes in the United States and in Canada. During the three months ended March 31, 2015 and 2014, we did not have a material amount of reportable taxable income, and we are not projecting a material amount of reportable taxable income for the year ending December 31, 2015. We have provided a full valuation allowance against our net deferred tax assets as of March 31, 2015 and December 31, 2014 because, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some or all of the deferred tax assets will not be realized. Therefore, no current tax liability or expense has been recorded in the financial statements. We have accumulated federal tax losses of approximately $358.6 million as of December 31, 2014, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $7.2 million (tax effected) as of December 31, 2014. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |
Mar. 31, 2015 | ||
Equity [Abstract] | ||
Shareholders' Equity | Note 11. | Shareholders’ Equity |
Our board of directors has the authority to fix and determine and to amend the number of shares of any series of preferred stock that is wholly unissued or to be established and to fix and determine and to amend the designation, preferences, voting powers and limitations, and the relative, participating, optional or other rights, of any series of shares of preferred stock that is wholly unissued or to be established, subject in each case to certain approval rights of holders of our outstanding Class B common stock. There was no preferred stock issued and outstanding as of March 31, 2015 or December 31, 2014. | ||
Our Class A common stock has no preferences or privileges and is not redeemable. Holders of Class A common stock are entitled to one vote for each share. | ||
Our Class B common stock has no preferences or privileges and is not redeemable. At any time after the date of issuance, each share of Class B common stock, at the option of the holder, may be converted into one share of Class A common stock, or automatically converted upon the affirmative vote by or written consent of holders of a majority of the shares of the Class B common stock. During the three months ended March 31, 2015, no shares of Class B common stock were converted into Class A common stock at the option of the holders. During the year ended December 31, 2014, 251,445 shares of Class B common stock were converted into Class A common stock at the option of the holders. Holders of Class B common stock are entitled to 10 votes for each share. | ||
Our Class C capital stock has no preferences or privileges, is not redeemable and, except in limited circumstances, is non-voting. There was no Class C capital stock issued and outstanding as of March 31, 2015 or December 31, 2014. |
ShareBased_Awards
Share-Based Awards | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Share-Based Awards | Note 12. | Share-Based Awards | |||||||||||||||
In connection with our February 2015 acquisition of Trulia, we assumed the obligations of Zillow, Trulia and Market Leader outstanding under pre-existing stock plans. In addition, we assumed the Zillow 2011 Incentive Plan, as amended and/or restated, and the Trulia 2012 Equity Incentive Plan, as amended and restated, for purposes of future grants, with the number and type of shares issuable thereunder appropriately adjusted to reflect the Mergers, in accordance with applicable NASDAQ exchange listing requirements. | |||||||||||||||||
Zillow 2011 Incentive Plan | |||||||||||||||||
On July 19, 2011, Zillow’s 2011 Incentive Plan (as amended and/or restated from time to time, the “2011 Plan”) became effective and serves as the successor to Zillow’s 2005 Equity Incentive Plan (the “2005 Plan”). Under the 2011 Plan 3,800,000 shares of Class A common stock are reserved for issuance. The number of shares of Class A common stock available for issuance under the 2011 Plan automatically increases on the first day of each of our fiscal years beginning in 2013 by a number of shares equal to the least of (a) 3.5% of our outstanding Class A common stock and Class B common stock on a fully diluted basis as of the end of our immediately preceding fiscal year, (b) 3,500,000 shares, and (c) a lesser amount determined by our board of directors; provided, however, that any shares from any increases in previous years that are not actually issued will continue to be available for issuance under the 2011 Plan. In addition, shares previously available for grant under the 2005 Plan, but not issued or subject to outstanding awards under the 2005 Plan as of July 19, 2011, and shares subject to outstanding awards under the 2005 Plan that subsequently cease to be subject to such awards (other than by reason of exercise of the awards) are available for grant under the 2011 Plan. The 2011 Plan is administered by the compensation committee of the board of directors. Under the terms of the 2011 Plan, the compensation committee may grant equity awards, including incentive stock options, nonqualified stock options, restricted stock, restricted stock units or restricted units to employees, officers, directors, consultants, agents, advisors and independent contractors. The compensation committee has also authorized certain senior executive officers to grant equity awards under the 2011 Plan, within limits prescribed by the compensation committee. | |||||||||||||||||
Options under the 2011 Plan are granted with an exercise price per share not less than 100% of the fair market value of our Class A common stock on the date of grant, with the exception of substituted option awards granted in connection with acquisitions, and are exercisable at such times and under such conditions as determined by the compensation committee. Under the 2011 Plan, the maximum term of an option is ten years from the date of grant. Any portion of an option that is not vested and exercisable on the date of a participant’s termination of service expires on such date. Employees generally forfeit their rights to exercise vested options after 3 months following their termination of employment or 12 months in the event of termination by reason of death, disability or retirement. Options granted under the 2011 Plan are typically granted with seven-year terms and typically vest 25% after 12 months and ratably thereafter over the next 36 months, though certain options have been granted with longer terms and vesting schedules. | |||||||||||||||||
Trulia 2005 Stock Plan | |||||||||||||||||
Trulia granted options under the 2005 Stock Incentive Plan (as amended, “the 2005 Plan”) until September 2012 when the 2005 Plan was terminated. Stock options issued prior to the plan termination continue to be outstanding in accordance with their terms. Under the terms of the 2005 Plan, Trulia had the ability to grant incentive and nonqualified stock options, stock appreciation rights, restricted stock awards and restricted stock units. Options granted under the 2005 Plan generally vest at a rate of 25% after 12 months and ratably thereafter over the next 36 months and expire 10 years from the grant date. Certain options vest monthly over two to four years. | |||||||||||||||||
Trulia 2012 Equity Incentive Plan, as Amended and Restated | |||||||||||||||||
On September 19, 2012, Trulia’s 2012 Equity Incentive Plan (the “2012 Plan”) became effective. The 2012 Plan provides for the grant of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to employees, directors and consultants. Upon adoption of the 2012 Plan, a total of 2,370,000 shares of common stock were reserved for issuance (subsequently increased in 2013 by 2,000,000 shares) plus up to 1,000,000 shares from the expiration or termination of awards under the 2005 Plan. The shares available are increased at the beginning of each fiscal year beginning in 2014 by the least of (i) 2,100,000 shares, (ii) 4% of outstanding Trulia common stock on the last day of the immediately preceding fiscal year, or (iii) such number determined by Trulia’s board of directors. Under the 2012 Plan, stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying stock at the grant date. The plan administrator determines the vesting period for each option award on the grant date, and the options generally expire 10 years from the grant date or such shorter term as may be determined for the options. | |||||||||||||||||
Market Leader Amended and Restated 2004 Equity Incentive Plan | |||||||||||||||||
In connection with Trulia’s acquisition of Market Leader in 2013, Trulia assumed Market Leader’s 2004 Equity Incentive Plan (the “2004 Plan”), including all outstanding shares of restricted stock, all outstanding stock appreciation rights, all outstanding options, and all shares available for future issuance under the 2004 Plan. Trulia granted equity awards, to the extent permissible by applicable law and New York Stock Exchange rules, under the 2004 Plan until it expired on December 9, 2014. The equity awards issued prior to the 2004 Plan’s expiration continue to be outstanding in accordance with their terms. | |||||||||||||||||
Option Awards and Stock Appreciation Rights | |||||||||||||||||
The following table summarizes option award and stock appreciation rights activity for the year ended December 31, 2014 and the three months ended March 31, 2015: | |||||||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||||||
of Shares | Average | Average | Intrinsic | ||||||||||||||
Subject to | Exercise | Remaining | Value (in | ||||||||||||||
Existing | Price Per | Contractual | thousands) | ||||||||||||||
Options and | Share | Life (Years) | |||||||||||||||
Stock | |||||||||||||||||
Appreciation | |||||||||||||||||
Rights | |||||||||||||||||
Outstanding at January 1, 2014 | 5,156,706 | $ | 27.09 | 5.43 | $ | 283,009 | |||||||||||
Granted | 2,219,458 | 97.06 | |||||||||||||||
Exercised | (1,323,509 | ) | 18.08 | ||||||||||||||
Forfeited or cancelled | (252,891 | ) | 62.76 | ||||||||||||||
Outstanding at December 31, 2014 | 5,799,764 | 54.37 | 5.32 | 311,040 | |||||||||||||
Assumed in connection with February 2015 acquisition of Trulia | 1,053,255 | 41.37 | |||||||||||||||
Granted | 2,625,352 | 102.48 | |||||||||||||||
Exercised | (391,466 | ) | 23.38 | ||||||||||||||
Forfeited or cancelled | (74,846 | ) | 68.4 | ||||||||||||||
Outstanding at March 31, 2015 | 9,012,059 | 68.1 | 6.14 | 312,889 | |||||||||||||
Vested and exercisable at March 31, 2015 | 2,621,756 | 30.99 | 3.84 | 182,024 | |||||||||||||
The fair value of options granted, excluding options granted under the Stock Option Grant Program for Nonemployee Directors (“Nonemployee Director Awards”) and certain options granted to the Company’s executives during the three months ended March 31, 2015 (“Executive Awards”), is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends and with the following assumptions for the periods presented: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected volatility | 56% | 53% | |||||||||||||||
Expected dividend yields | — | — | |||||||||||||||
Risk-free interest rate | 1.24% | 1.37% | |||||||||||||||
Weighted-average expected life | 4.58 years | 4.58 years | |||||||||||||||
Weighted-average fair value of options granted | $47.57 | $36.93 | |||||||||||||||
During the three months ended March 31, 2015, option awards for a total of 1,150,000 shares of our Class A common stock were granted to certain of the Company’s executive officers as Executive Awards. The fair value of the option awards is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends, expected volatility of 52%, a risk-free interest rate of 1.76% and a weighted-average expected life of 6.8 years. The grant date fair value of the option awards is approximately $62.8 million. One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the first anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable four years from the vesting commencement date. One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the two-year anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable five years from the vesting commencement date. One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the three-year anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable six years from the vesting commencement date. One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the four-year anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable seven years from the vesting commencement date. The option awards have a ten-year term. A total of 650,000 shares subject to the Executive Awards are subject to shareholder approval of a share increase under the 2011 Plan at the 2015 annual meeting of our shareholders, and no portion of these option awards are exercisable until such shareholder approval has been obtained. However, for purposes of determining the grant date for financial accounting purposes, shareholder approval is deemed to be a formality or perfunctory because Zillow Group’s co-founders control enough votes to ensure shareholder approval. | |||||||||||||||||
In the three months ended March 31, 2015, option awards for an aggregate of 15,725 shares of our Class A common stock were granted as Nonemployee Director Awards, which are fully vested and exercisable on the date of grant. The fair value of options granted for the Nonemployee Director Awards, $47.70 per share, is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends, expected volatility of 57%, a risk-free interest rate of 1.01%, and a weighted-average expected life of 3.5 years. During the three months ended March 31, 2015 and 2014, share-based compensation expense recognized in our statement of operations related to Nonemployee Director Awards was $0.8 million, and is included in general and administrative expenses. | |||||||||||||||||
As of March 31, 2015, there was a total of $216.0 million in unrecognized compensation cost related to unvested stock options and stock appreciation rights. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
The following table summarizes restricted stock award activity for the year ended December 31, 2014 and the three months ended March 31, 2015: | |||||||||||||||||
Shares of | Weighted- | ||||||||||||||||
Restricted Stock | Average Grant- | ||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Unvested outstanding at January 1, 2014 | 230,127 | $ | 30.43 | ||||||||||||||
Granted | 3,255 | 80.91 | |||||||||||||||
Vested | (146,547 | ) | 30.48 | ||||||||||||||
Forfeited or cancelled | — | — | |||||||||||||||
Unvested outstanding at December 31, 2014 | 86,835 | 32.25 | |||||||||||||||
Granted | 1,391 | 121.35 | |||||||||||||||
Vested | (10,910 | ) | 44.39 | ||||||||||||||
Forfeited or cancelled | — | — | |||||||||||||||
Unvested outstanding at March 31, 2015 | 77,316 | 32.14 | |||||||||||||||
The fair value of the outstanding shares of restricted stock awards will be recorded as share-based compensation expense over the vesting period. As of March 31, 2015, there was $1.9 million of total unrecognized compensation cost related to restricted stock awards. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The following table summarizes activity for restricted stock units for the year ended December 31, 2014 and the three months ended March 31, 2015: | |||||||||||||||||
Restricted Stock | Weighted- | ||||||||||||||||
Units | Average Grant- | ||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Unvested outstanding at January 1, 2014 | 121,123 | $ | 64.07 | ||||||||||||||
Granted | 102,264 | 102.95 | |||||||||||||||
Vested | (64,935 | ) | 76.28 | ||||||||||||||
Forfeited or cancelled | (32,850 | ) | 72.4 | ||||||||||||||
Unvested outstanding at December 31, 2014 | 125,602 | 85.67 | |||||||||||||||
Assumed in connection with February 2015 acquisition of Trulia | 1,266,319 | 109.14 | |||||||||||||||
Granted | 34,799 | 108.57 | |||||||||||||||
Vested | (24,345 | ) | 80.06 | ||||||||||||||
Forfeited or cancelled | (30,253 | ) | 95.48 | ||||||||||||||
Unvested outstanding at March 31, 2015 | 1,372,122 | 107.77 | |||||||||||||||
In February 2015, pursuant to the terms of a Restricted Stock Unit Award Notice and Restricted Stock Unit Award Agreement entered into between Zillow Group and an employee, Zillow Group granted to the employee restricted stock units for a total of 27,359 shares of our Class A common stock. For 16,734 of the restricted stock units, 25% of such restricted stock unit award will vest on February 17, 2016, and the remainder will vest in substantially equal installments each three-month period thereafter for three years, subject to the recipient’s continued full-time employment or service to Zillow Group. For 10,625 of the restricted stock units, one-eighth of such restricted stock unit award will vest on August 17, 2015, and the remainder will vest in substantially equal installments each three-month period thereafter for three and a half years, subject to the recipient’s continued full-time employment or service to Zillow Group. In the event of termination of service or employment by Zillow Group without cause or upon the resignation by such employee for good reason, the employee will receive an additional 12 months’ accelerated vesting of the then outstanding restricted stock units, except that in the event of such a termination in connection with a change in control, the employee will receive an additional 50% accelerated vesting of the then outstanding restricted stock units. The employee will be entitled to receive one share of Zillow Group’s Class A common stock for each then outstanding restricted stock unit that becomes vested. The grant date fair value of the restricted stock units is approximately $3.0 million. | |||||||||||||||||
The fair value of the outstanding restricted stock units will be recorded as share-based compensation expense over the vesting period. As of March 31, 2015, there was $107.7 million of total unrecognized compensation cost related to restricted stock units. | |||||||||||||||||
Share-Based Compensation Expense | |||||||||||||||||
The following table presents the effects of share-based compensation in our statements of operations during the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cost of revenue | $ | 952 | $ | 373 | |||||||||||||
Sales and marketing | 4,209 | 1,303 | |||||||||||||||
Technology and development | 5,766 | 2,025 | |||||||||||||||
General and administrative | 12,080 | 3,431 | |||||||||||||||
Restructuring costs | 10,420 | — | |||||||||||||||
Total | $ | 33,427 | $ | 7,132 | |||||||||||||
For the three months ended March 31, 2015, approximately $0.7 million, $0.6 million, and $5.0 million, respectively, of share-based compensation expense is included in sales and marketing expenses, technology and development expenses, and general and administrative expenses related to change in control equity acceleration for certain executives of Trulia pursuant to Zillow Group’s February 2015 restructuring plan (see Note 15). Certain executives of Trulia are entitled to partial and/or full “double trigger” equity acceleration upon a termination without “cause” or a resignation for “good reason,” each within twelve months of the mergers, pursuant to pre-existing offer letters and/or equity award agreements entered into with Trulia. |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss Per Share | Note 13. | Net Loss Per Share | |||||||
Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares (including Class A common stock and Class B common stock) outstanding during the period. In the calculation of basic net loss per share, undistributed earnings are allocated assuming all earnings during the period were distributed. | |||||||||
Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares (including Class A common stock and Class B common stock) outstanding during the period and potentially dilutive Class A common stock equivalents, except in cases where the effect of the Class A common stock equivalent would be antidilutive. Potential Class A common stock equivalents consist of Class A common stock issuable upon exercise of stock options and Class A common stock underlying unvested restricted stock awards and unvested restricted stock units using the treasury stock method. | |||||||||
For the periods presented, the following Class A common stock equivalents were excluded from the calculations of diluted net loss per share because their effect would have been antidilutive (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Class A common stock issuable upon the exercise of option awards and stock appreciation rights | 2,746 | 2,959 | |||||||
Class A common stock underlying unvested restricted stock awards and restricted stock units | 383 | 97 | |||||||
Class A common stock issuable upon conversion of the 2020 Notes | 2,843 | — | |||||||
Total Class A common stock equivalents | 5,972 | 3,056 | |||||||
In the event of liquidation, dissolution, distribution of assets or winding-up of the Company, the holders of all classes of common stock have equal rights to receive all the assets of the Company after the rights of the holders of preferred stock have been satisfied. We have not presented net income (loss) per share under the two-class method for our Class A common stock and Class B common stock because it would be the same for each class due to equal dividend and liquidation rights for each class. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Note 14. | Commitments and Contingencies | |||
Lease Commitments | |||||
We have various operating leases for office space and equipment. | |||||
Seattle, Washington | |||||
In March 2011, we entered into a lease agreement for office space that houses our corporate headquarters in Seattle (as amended from time to time, the “Seattle Lease”). Pursuant to the terms of the Seattle Lease, we lease a total of approximately 201,000 square feet, and we are obligated to make escalating monthly lease payments that began in December 2012 and continue through December 2024. In November 2014, we entered into a lease amendment under which we will lease approximately an additional 68,000 square feet of office space, which we begin to take possession of in 2017 under the same terms and conditions. | |||||
San Francisco, California | |||||
In connection with our February 2015 acquisition of Trulia, we assumed a lease agreement for office space in San Francisco (as amended from time to time, the “San Francisco Lease”), which houses Trulia’s corporate headquarters and beginning in March 2015, also houses Zillow’s personnel located in San Francisco. Pursuant to the terms of the San Francisco Lease, we lease a total of approximately 79,000 square feet, and we are obligated to make escalating monthly lease payments that began in November 2014 and continue through September 2023. In July 2014, Trulia entered into a lease amendment under which we will lease an additional 26,620 square feet of office space commencing in October 2015 under the same terms and conditions. | |||||
In November 2012, we entered into an operating lease in San Francisco, California for 18,353 square feet under which we are obligated to make escalating monthly lease payments which began in December 2012 and continue through November 2018. In March 2015, we ceased use of this space in connection with our February 2015 acquisition of Trulia and recorded an estimated restructuring charge of approximately $0.3 million in the three months ended March 31, 2015 (see Note 15). | |||||
New York, New York | |||||
In February 2014, we entered into an operating lease in New York (as amended from time to time, the “New York Lease”). Pursuant to the terms of the New York Lease, we lease a total of approximately 39,900 square feet, and we are obligated to make escalating monthly lease payments that began in August 2014 and continue through November 2024. | |||||
Denver, Colorado | |||||
In connection with our February 2015 acquisition of Trulia, we assumed a lease agreement for office space in Denver. Pursuant to the terms of the lease, we lease a total of approximately 65,000 square feet, and we are obligated to make escalating monthly lease payments that began in November 2014 and continue through October 2021. | |||||
Bellevue, Washington | |||||
In connection with our February 2015 acquisition of Trulia, we assumed a lease agreement for office space in Bellevue. Pursuant to the terms of the lease, we lease a total of approximately 72,000 square feet, and we are obligated to make escalating monthly lease payments that began in October 2014 and continue through September 2021. We currently utilize approximately half of the total square feet available in Bellevue and expect to secure a sublease on the remaining half of the total square feet in 2015 (see Note 15). | |||||
Irvine, California | |||||
In April 2012, we entered into a lease agreement for office space in Irvine (as amended from time to time, the “Irvine Lease”). Pursuant to the terms of the Irvine Lease, we lease a total of approximately 60,000 square feet under which we are obligated to make escalating monthly lease payments which began in August 2012 and continue through July 2022. | |||||
We lease additional office space in Chicago, Illinois, Lincoln, Nebraska, New York, New York and Vancouver, British Columbia. We believe our facilities are sufficient for our current needs. | |||||
Future minimum payments for all operating leases as of March 31, 2015 are as follows (in thousands): | |||||
Remainder of 2015 | $ | 13,046 | |||
2016 | 20,056 | ||||
2017 | 24,033 | ||||
2018 | 27,206 | ||||
2019 | 23,734 | ||||
All future years | 103,393 | ||||
Total future minimum lease payments | $ | 211,468 | |||
Rent expense for the three months ended March 31, 2015 and 2014 was $3.4 million and $1.5 million, respectively. | |||||
Purchase Commitments | |||||
As of March 31, 2015, we had non-cancelable purchase commitments for content related to our mobile applications and websites totaling $117.5 million. The amounts due for this content as of March 31, 2015 are as follows (in thousands): | |||||
Remainder of 2015 | $ | 23,728 | |||
2016 | 28,570 | ||||
2017 | 34,701 | ||||
2018 | 14,000 | ||||
2019 | 6,000 | ||||
All future years | 10,500 | ||||
Total future purchase commitments | $ | 117,499 | |||
Letters of Credit | |||||
As of March 31, 2015, we have outstanding letters of credit of approximately $3.8 million, $1.8 million, $1.5 million, $1.1 million and $1.1 million, respectively, which secure our lease obligations in connection with the operating leases of our San Francisco, Seattle, Bellevue, New York and Denver office spaces. Certain of the letters of credit are unsecured obligations, and certain of the letters of credit are secured by certificates of deposit held as collateral in our name at a financial institution. The secured letters of credit are classified as restricted cash in our condensed consolidated balance sheet. | |||||
Surety Bonds | |||||
In the course of business, we are required to provide financial commitments in the form of surety bonds to third parties as a guarantee of our performance on and our compliance with certain obligations. If we were to fail to perform or comply with these obligations, any draws upon surety bonds issued on our behalf would then trigger our payment obligation to the surety bond issuer. We have outstanding surety bonds issued for our benefit of approximately $2.0 million as of March 31, 2015. There were no surety bonds outstanding as of December 31, 2014. | |||||
Legal Proceedings | |||||
In March 2010, Smarter Agent, LLC (“Smarter Agent”) filed a complaint against us and multiple other defendants, including HotPads, Inc. (“HotPads”), for patent infringement in the U.S. District Court for the District of Delaware. The complaint alleges, among other things, that our mobile technology infringes three patents held by Smarter Agent purporting to cover: a “Global positioning-based real estate database access device and method,” a “Position-based information access device and method” and a “Position-based information access device and method of searching,” and seeks an injunction against the alleged infringing activities and an unspecified award for damages. In November 2010, the U.S. Patent and Trademark Office granted our petition for re-examination of the three patents-in-suit, and, to date, all claims of all three patents remain rejected in the re-examination proceedings, including through appeals to the Patent Trial and Appeal Board. In March 2011, the court granted a stay of the litigation pending the completion of the re-examination proceedings. In addition, in October 2011, Smarter Agent filed a substantially similar complaint against Diverse Solutions, Inc. (“Diverse Solutions”), StreetEasy, and other defendants, for patent infringement in the U.S. District Court for the District of Delaware. On October 31, 2011, we acquired substantially all of the operating assets and certain liabilities of Diverse Solutions, including the Smarter Agent complaint against Diverse Solutions. On December 14, 2012, we acquired HotPads, and took responsibility for the Smarter Agent complaint against HotPads. On August 26, 2013, we acquired StreetEasy, and took responsibility for the Smarter Agent complaint against StreetEasy. We have not recorded an accrual related to these complaints as of March 31, 2015 or December 31, 2014, as we do not believe a loss is probable or reasonably estimable. | |||||
In September 2010, LendingTree, LLC (“LendingTree”) filed a complaint against us for patent infringement in the U.S. District Court for the Western District of North Carolina. The complaint alleged, among other things, that our website technology infringes two patents purporting to cover a “Method and computer network for coordinating a loan over the internet.” The complaint sought, among other things, a judgment that we infringed certain patents held by LendingTree, an injunction against the alleged infringing activities and an award for damages. We denied the allegations and asserted defenses and counterclaims seeking declarations that we are not infringing the patents and that the patents are invalid. In March 2014, a federal jury found that Zillow does not infringe the patents and that the patents asserted by LendingTree are invalid. In April, 2014, LendingTree filed two motions for judgment as a matter of law and for a new trial, all of which we opposed. In October 2014, the Court issued an order upholding the jury verdict and denying LendingTree’s motions. In November 2014, LendingTree filed a notice of appeal. We have not recorded an accrual related to this complaint as of March 31, 2015 or December 31, 2014, as we do not believe a loss is probable or reasonably estimable. | |||||
In November 2012, a securities class action lawsuit was filed in the U.S. District Court for the Western District of Washington at Seattle against us and certain of our executive officers seeking unspecified damages. A consolidated amended complaint was filed in June 2013. The complaint purports to state claims for violations of federal securities laws on behalf of a class of those who purchased our common stock between February 15, 2012 and November 6, 2012. The complaint generally alleges, among other things, that during the period between February 15, 2012 and November 6, 2012, we issued materially false and misleading statements regarding our business practices and financial results. In August 2013, we moved to dismiss the lawsuit. On October 20, 2014, the Court issued an order granting our motion to dismiss the consolidated amended complaint with prejudice. Also on October 20, 2014, the Court entered a judgment dismissing the complaint with prejudice. On November 19, 2014, plaintiffs filed a notice of appeal of the October 20, 2014 judgment of dismissal with prejudice. Pursuant to stipulation of the parties, the appeal was dismissed with prejudice on March 24, 2015. We have not recorded an accrual related to this lawsuit as of March 31, 2015 or December 31, 2014, as we do not believe a loss is probable or reasonably estimable. | |||||
In March 2014, Move, Inc., the National Association of Realtors and three related entities, filed a complaint against us and Errol Samuelson, our Chief Industry Development Officer, in the Superior Court of the State of Washington in King County, alleging, among other things, that Zillow and Mr. Samuelson misappropriated plaintiffs’ trade secrets in connection with Mr. Samuelson joining Zillow in March 2014. The complaint seeks, among other things, an injunction against the alleged misappropriations and Mr. Samuelson working for us, as well as unspecified damages. In April 2014, the court denied the plaintiffs’ motion for a preliminary injunction prohibiting Mr. Samuelson from working for us. Plaintiffs renewed their motion for a preliminary injunction and on September 30, 2014, the court granted that request and entered a preliminary injunction. Zillow filed a motion requesting that the court reconsider that decision, which the court denied. On September 22, 2014, Zillow filed a notice for discretionary review by the Washington Court of Appeals, followed by a motion for discretionary review on October 7, 2014. Samuelson also filed a motion for discretionary review. Zillow’s and Samuelson’s motions for discretionary review were granted on November 19, 2014. On January 26, 2015, the plaintiffs filed a contempt motion for alleged violation of the preliminary injunction, which Zillow and Samuelson opposed. On February 3, 2015, the parties entered into a stipulation, later adopted by order of the court that Zillow and Samuelson shall withdraw the appeal and the last of the terms of the preliminary injunction will expire on March 22, 2015. The trial date was also extended to October 26, 2015. On February 11, 2015, the Superior Court issued an Order to Show Cause regarding plaintiffs’ contempt motion and set a schedule for discovery, briefing and a hearing. In February 2015, plaintiffs filed an amended complaint that, among other things, added Curt Beardsley, our Vice President of MLS Partnerships, as a defendant in the matter. On March 27, 2015, the parties entered into a stipulation, later adopted by order of the court, that plaintiffs shall withdraw their request that the Superior Court find Zillow and Mr. Samuelson in contempt of the preliminary injunction. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit. We have not recorded an accrual related to these complaints as of March 31, 2015 or December 31, 2014, as we do not believe a material loss is probable. It is a reasonable possibility that a loss may be incurred; however, the possible loss or range of loss is not estimable. | |||||
In August 2014, four purported class action lawsuits were filed by plaintiffs against Trulia and its directors, Zillow, and Zebra Holdco, Inc. in connection with Zillow’s proposed acquisition of Trulia. One of those purported class actions, captioned Collier et al. v. Trulia, Inc., et al., was brought in the Superior Court of the State of California for the County of San Francisco, however on October 7, 2014, plaintiff in the Collier action filed a new complaint in the Delaware Court of Chancery alleging substantially the same claims and seeking substantially the same relief as the original complaint filed in California. On October 8, 2014, plaintiff in the Collier action filed a request for dismissal of the California case without prejudice. The other three of the purported class action lawsuits, captioned Shue et al. v. Trulia, Inc., et al., Sciabacucci et al. v. Trulia, Inc., et al., and Steinberg et al. v. Trulia, Inc. et al., were brought in the Delaware Court of Chancery. All four lawsuits allege that Trulia’s directors breached their fiduciary duties to Trulia stockholders, and that the other defendants aided and abetted such breaches, by seeking to sell Trulia through an allegedly unfair process and for an unfair price and on unfair terms. All lawsuits seek, among other things, equitable relief that would enjoin the consummation of Zillow’s proposed acquisition of Trulia and attorneys’ fees and costs. The Delaware actions also seek rescission of the Merger Agreement (to the extent it has already been implemented) or rescissory damages and orders directing the defendants to account for alleged damages suffered by the plaintiffs and the purported class as a result of the defendants’ alleged wrongdoing. On September 24, 2014, plaintiff in the Sciabacucci action filed (1) a motion for expedited proceedings, (2) a motion for a preliminary injunction, (3) a request for production of documents from defendants, and (4) notice of depositions. On October 13, 2014, the Delaware Court of Chancery issued an order consolidating all of the Delaware actions into one matter captioned In re Trulia, Inc. Stockholder Litigation. On October 13 and 14, 2014, the above-referenced motions were refiled under the consolidated case number. On November 14, 2014, plaintiffs again refiled their motion for a preliminary injunction challenging the proposed acquisition. On November 19, 2014, the parties entered into a Memorandum of Understanding, documenting the agreement-in-principle for the settlement of the consolidated litigation, pursuant to which Trulia agreed to make certain supplemental disclosures in a Form 8-K. The Memorandum of Understanding was filed with the Chancery Court that same day. The parties have concluded confirmatory discovery and are negotiating a stipulation of settlement. We have not recorded an accrual related to these lawsuits as of March 31, 2015 or December 31, 2014, as we do not believe a loss is probable or reasonably estimable. | |||||
In addition to the matters discussed above, from time to time, we are involved in litigation and claims that arise in the ordinary course of business. Although we cannot be certain of the outcome of any litigation and claims, nor the amount of damages and exposure that we could incur, we currently believe that the final disposition of such matters will not have a material effect on our financial position, results of operations or cash flow. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. | |||||
Indemnifications | |||||
In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements and out of intellectual property infringement claims made by third parties. In addition, we have agreements that indemnify certain issuers of surety bonds against losses that they may incur as a result of executing surety bonds on our behalf. For our indemnification arrangements, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, our obligations under these agreements may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments. In addition, we have indemnification agreements with certain of our directors and executive officers that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations may vary. |
Restructuring
Restructuring | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Restructuring | Note 15. | Restructuring | |||||||||||||||
On February 17, 2015, in connection with the February 2015 acquisition of Trulia, Zillow Group undertook a restructuring plan that will result in a total workforce reduction of nearly 350 employees, primarily to eliminate overlapping positions in the sales and marketing functions related to Trulia’s workforce at its Bellevue, Denver, New York and San Francisco locations. The restructuring plan is a result of the integration of Trulia’s business and operations with and into Zillow Group’s business. Employees directly affected by the restructuring plan have been or will be provided with severance payments, stock vesting acceleration and outplacement assistance. Zillow Group expects to complete the restructuring by the end of 2015. As a result of the restructuring plan, Zillow Group recorded a restructuring charge of approximately $25.1 million during the three months ended March 31, 2015, including approximately $9.1 million for severance and other personnel related expenses, approximately $5.5 million for contract termination costs associated with certain operating leases, and approximately $10.4 million of non-cash expenses relating to stock vesting acceleration or a reduced remaining requisite service period, for which share-based compensation expense is recognized over the remaining requisite service period, which in some cases may result in immediate expense recognition if no substantive future service is required. Zillow Group recognized certain contract termination costs primarily associated with Trulia’s Bellevue operating lease, as well as Zillow’s San Francisco operating lease, as Zillow’s employees in San Francisco were relocated into Trulia’s San Francisco office space. The restructuring costs for contract termination costs include approximately $4.0 million primarily related to the write-off of certain leasehold improvements. | |||||||||||||||||
In connection with our February 2015 acquisition of Trulia, we also assumed certain restructuring reserves due to Trulia’s restructuring that commenced in June 2014 as an ongoing effort to fully integrate Market leader’s operations. The Market Leader restructuring resulted in a reduction of headcount of approximately 80 employees in 2014, as well as the recognition of certain contract termination costs associated with Trulia’s Bellevue and Denver operating leases. | |||||||||||||||||
A summary of accrued restructuring costs as of and for the three months ended March 31, 2015 is shown in the table below (in thousands): | |||||||||||||||||
One -Time | Contract | Other | Total | ||||||||||||||
Termination | Termination | Associated | |||||||||||||||
Benefits | Costs | Costs | |||||||||||||||
Restructuring reserves assumed in connection with | |||||||||||||||||
February 2015 acquisition of Trulia | $ | 81 | $ | 2,544 | $ | 136 | $ | 2,761 | |||||||||
Restructuring costs | 9,015 | 1,319 | 110 | 10,444 | |||||||||||||
Cash payments | (2,612 | ) | (387 | ) | (375 | ) | (3,374 | ) | |||||||||
Change in estimate | (67 | ) | — | 137 | 70 | ||||||||||||
Accrued restructuring costs as of March 31, 2015 | $ | 6,417 | $ | 3,476 | $ | 8 | $ | 9,901 | |||||||||
The restructuring reserves, which total $9.9 million as of March 31, 2015, are recorded as part of accrued restructuring costs and deferred tax liabilities and other long-term liabilities in our condensed consolidated balance sheet. | |||||||||||||||||
We expect to record an additional $5.0 million to $6.5 million of restructuring costs, most of which we expect to incur by the end of 2015. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |
Mar. 31, 2015 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | Note 16. | Related Party Transactions |
In February 2015, we paid approximately $0.3 million in filing fees directly to the Federal Trade Commission (the “FTC”), on behalf of and in connection with filings made by Mr. Richard Barton, our Executive Chairman, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”), which filings were required due to Mr. Barton’s ownership of Zillow, Inc.’s common stock. Also, in February 2015, we paid approximately $0.1 million in filing fees directly to the FTC, on behalf of and in connection with a filing made by Mr. Lloyd Frink, our Vice Chairman and President, under the HSR Act, which filing was required due to Mr. Frink’s ownership of Zillow, Inc.’s common stock. |
SelfInsurance
Self-Insurance | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Self-Insurance | Note 17. | Self-Insurance |
We are self-insured for a portion of our medical and dental coverage for certain employees of Trulia. The medical plan carries a stop-loss policy, which will protect from individual claims during the plan year exceeding $100,000 or when cumulative medical claims exceed 125% of expected claims for the plan year. We record estimates of the total costs of claims incurred based on an analysis of historical data and independent estimates. Our liability for self-insured medical and dental claims is included within accrued compensation and benefits in our condensed consolidated balance sheet and was $0.7 million as of March 31, 2015. We did not have any self-insurance prior to our February 2015 acquisition of Trulia. |
Employee_Benefit_Plan
Employee Benefit Plan | 3 Months Ended | |
Mar. 31, 2015 | ||
Postemployment Benefits [Abstract] | ||
Employee Benefit Plan | Note 18. | Employee Benefit Plan |
Effective January 1, 2015, Zillow Group established a defined contribution 401(k) retirement plan covering employees who have met certain eligibility requirements (“the Zillow Group 401(k) Plan”). In addition, in connection with our February 2015 acquisition of Trulia, we adopted a defined contribution 401(k) retirement plan that covers Trulia and Market Leader employees who have met certain eligibility requirements (“the Trulia 401(k) Plan”). Eligible employees under each of the plans may contribute pretax compensation up to a maximum amount allowable under the Internal Revenue Service limitations. Employee contributions and earnings thereon vest immediately. We currently match up to 1.5% of employee contributions under the Zillow Group 401(k) Plan and up to 4% of employee contributions under the Trulia 401(k) Plan. The total expense related to defined contribution 401(k) retirement plans was $0.8 million for the three months ended March 31, 2015. We did not have any expense related to defined contribution 401(k) retirement plans for the three months ended March 31, 2014. |
Segment_Information_and_Revenu
Segment Information and Revenue | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information and Revenue | Note 19. | Segment Information and Revenue | |||||||
We have one reportable segment. Our reportable segment has been identified based on how our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information on an entity-wide basis. We have one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components. Accordingly, we have determined that we have a single reporting segment and operating unit structure. | |||||||||
The chief executive officer reviews information about revenue categories, including marketplace revenue and display revenue. The following table presents our revenue categories during the periods presented (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Marketplace revenue: | |||||||||
Real estate | $ | 93,312 | $ | 46,595 | |||||
Mortgages | 9,558 | 7,129 | |||||||
Market Leader | 6,057 | — | |||||||
Total Marketplace revenue | 108,927 | 53,724 | |||||||
Display revenue | 18,346 | 12,519 | |||||||
Total revenue | $ | 127,273 | $ | 66,243 | |||||
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 31, 2015 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | Note 20. | Subsequent Events |
In April 2015, Zillow Group granted to certain employees of Trulia retention restricted stock units for a total of 105,358 shares of our Class A common stock, of which 12.5% of the retention restricted stock units vest approximately 6 months after the vesting commencement date of February 18, 2015, and the remaining retention restricted stock units vest quarterly thereafter for approximately 3.5 years, subject to the recipient’s continued full-time employment or service to Zillow Group. The total grant date fair value of the retention restricted stock units is approximately $10.2 million. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Accounting Policies [Abstract] | ||||
Basis of Presentation | Basis of Presentation | |||
The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes as of and for the year ended December 31, 2014 included in Zillow, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on February 17, 2015. The condensed consolidated balance sheet as of December 31, 2014, included herein, was derived from the audited financial statements of Zillow, Inc. as of that date. | ||||
For financial reporting and accounting purposes, Zillow was the acquirer of Trulia. The results presented in the Condensed Consolidated Financial Statements and the Notes to Condensed Consolidated Financial Statements reflect those of Zillow prior to the completion of the acquisition of Trulia on February 17, 2015, and Trulia’s results of operations have been included prospectively after February 17, 2015. | ||||
The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2015, our results of operations and our cash flows for the three month periods ended March 31, 2015 and 2014. The results of the three month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ended December 31, 2015 or for any interim period or for any other future year. | ||||
Use of Estimates | Use of Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, website development costs, recoverability of long-lived assets and intangible assets with definite lives, share-based compensation, income tax uncertainties, including a valuation allowance for deferred tax assets, business combinations, goodwill, and restructuring, among others. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. | ||||
Reclassifications | Reclassifications | |||
Certain immaterial reclassifications have been made in the condensed consolidated statements of operations and statements of cash flows to conform data for prior periods to the current format. | ||||
Concentrations of Credit Risk | Concentrations of Credit Risk | |||
Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents, investments and accounts receivable. We place cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit exposure of our investments. | ||||
Credit risk with respect to accounts receivable is dispersed due to the large number of customers. Further, our credit risk on accounts receivable is mitigated by the relatively short payment terms that we offer. Collateral is not required for accounts receivable. We maintain an allowance for doubtful accounts such that receivables are stated at net realizable value. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
Cash includes currency on hand as well as demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Our cash equivalents include only investments with original maturities of three months or less. We regularly maintain cash in excess of federally insured limits at financial institutions. | ||||
Restricted Cash | Restricted Cash | |||
Restricted cash consists of certificates of deposit held as collateral in our name at a financial institution related to certain of our operating leases. | ||||
Investments | Investments | |||
Our investments consist of fixed income securities, which include U.S. and foreign government agency securities, corporate notes and bonds, municipal securities, commercial paper and certificates of deposit, and are classified as available-for-sale securities beginning on January 1, 2015. As the investments are available to support current operations, our available-for-sale securities are classified as short-term investments. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive loss in shareholders’ equity, while realized gains and losses and other-than-temporary impairments are reported as a component of net loss based on specific identification. An impairment charge is recorded in the condensed consolidated statements of operations for declines in fair value below the cost of an individual investment that are deemed to be other than temporary. We assess whether a decline in value is temporary based on the length of time that the fair market value has been below cost, the severity of the decline and the intent and ability to hold or sell the investment. We did not identify any investments as other-than-temporarily impaired as of March 31, 2015 or December 31, 2014. | ||||
Prior to January 1, 2015 our investments were classified as held-to-maturity and were recorded at amortized cost (see Note 4). | ||||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts | |||
Accounts receivable are generally due within 30 days and are recorded net of the allowance for doubtful accounts. We consider accounts outstanding longer than the contractual terms past due. We review accounts receivable on a regular basis and estimate an amount of losses for uncollectible accounts based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. We record changes in our estimate to the allowance for doubtful accounts through bad debt expense and relieve the allowance when accounts are ultimately determined to be uncollectible. Bad debt expense is included in general and administrative expenses. | ||||
Property and Equipment | Property and Equipment | |||
Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows: | ||||
Computer equipment | 3 years | |||
Purchased software | 3 years | |||
Office equipment, furniture and fixtures | 5 to 7 years | |||
Leasehold improvements | Shorter of expected useful life or lease term | |||
Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the differences between the proceeds received and the net book value of the disposed asset. | ||||
Website and Software Development Costs | Website and Software Development Costs | |||
The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful lives. Amortization expense related to capitalized website and software development costs is included in technology and development expense. | ||||
Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at one year. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. | ||||
Goodwill | Goodwill | |||
Goodwill represents the excess of the cost of an acquired business over the fair value of the assets acquired at the date of acquisition. We assess the impairment of goodwill on an annual basis, in our fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. | ||||
We assess goodwill for possible impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we determine that it is not more likely than not that the fair value of our reporting unit is less than its carrying amount, then the first and second steps of the goodwill impairment test are unnecessary. If we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we perform the two-step goodwill impairment test. The first step of the goodwill impairment test identifies if there is potential goodwill impairment. If step one indicates that an impairment may exist, a second step is performed to measure the amount of the goodwill impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. If impairment exists, the carrying value of the goodwill is reduced to fair value through an impairment charge recorded in our statements of operations. | ||||
Intangible Assets | Intangible Assets | |||
We purchase and license data content from multiple data providers. This data content consists of U.S. county data about home details (e.g., the number of bedrooms, bathrooms, square footage) and other information relating to the purchase price of homes, both current and historical, as well as imagery, mapping and parcel data that is displayed on our mobile applications and websites. Our home details data not only provides information about a home and its related transactions which is displayed on our mobile applications and websites, but is also used in our proprietary valuation algorithms to produce Zestimates, Trulia Estimates, Rent Zestimates and Zillow Home Value Indexes. License agreement terms vary by vendor. In some instances, we retain perpetual rights to this information after the contract ends; in other instances, the information and data are licensed only during the fixed term of the agreement. Additionally, certain data license agreements provide for uneven payment amounts throughout the life of the contract term. | ||||
We capitalize payments made to third parties for data licenses that we expect to provide future economic benefit through the recovery of the costs of these arrangements via the generation of our revenue and margins. For data license contracts that include uneven payment amounts, we capitalize the payments as they are made as an intangible asset and amortize the total contract value over the estimated useful life. For contracts in which we have perpetual rights to the data, the total contract value is amortized on a straight-line basis over the life of the contract plus two years, which is equivalent to the estimated useful life of the asset. For contracts in which we do not have access to the data beyond the contractual term, the total contract value is amortized on a straight line basis over the term of the contract. We evaluate data content contracts for potential capitalization at the inception of the arrangement as well as each time periodic payments to third parties are made. | ||||
The amortization period for the capitalized purchased content is based on our best estimate of the useful life of the asset, which ranges from two to nine years. The determination of the useful life includes consideration of a variety of factors including, but not limited to, our assessment of the expected use of the asset and contractual provisions that may limit the useful life, as well as an assessment of when the data is expected to become obsolete based on our estimates of the diminishing value of the data over time. We evaluate the useful life of the capitalized purchased data content each reporting period to determine whether events and circumstances warrant a revision to the remaining useful life. If we determine the estimate of the asset’s useful life requires modification, the carrying amount of the asset is amortized prospectively over the revised useful life. The capitalized purchased data content is amortized on a straight-line basis as the pattern of delivery of the economic benefits of the data cannot reliably be determined because we do not have the ability to reliably predict future traffic to our websites and mobile applications. | ||||
Under certain other data agreements, the underlying data is obtained on a subscription basis with consistent monthly recurring payment terms over the contractual period. Upon the expiration of such arrangements, we no longer have the right to access the related data, and therefore, the costs incurred under such contracts are not capitalized and are expensed as payments are made. We would immediately lose rights to data under these arrangements if we were to cancel the subscription and/or cease making payments under the subscription arrangements. | ||||
We also have intangible assets for developed technology, customer relationships, trade names and trademarks, advertising relationships and MLS home data feeds which we recorded in connection with acquisitions. Purchased intangible assets with a determinable economic life are carried at cost, less accumulated amortization. These intangible assets are amortized over the estimated useful life of the asset on a straight-line basis. | ||||
Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets | ||||
We evaluate intangible assets and other long-lived assets for impairment whenever events or circumstances indicate that they may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset group to future undiscounted net cash flows expected to be generated. We group assets for purposes of such review at the lowest level for which identifiable cash flows of the asset group are largely independent of the cash flows of the other groups of assets and liabilities. If this comparison indicates impairment, the amount of impairment to be recognized is calculated as the difference between the carrying value and the fair value of the asset group. | ||||
Deferred Revenue | Deferred Revenue | |||
Deferred revenue consists of prepaid advertising fees received or billed in advance of the delivery or completion of the services, prepaid but unrecognized subscription revenue, and for amounts received in instances when revenue recognition criteria have not been met. Deferred revenue is recognized when the services are provided and all revenue recognition criteria have been met. | ||||
Deferred Rent | Deferred Rent | |||
For our operating leases, we recognize rent expense on a straight-line basis over the terms of the leases and, accordingly, we record the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. Landlord-funded leasehold improvements are also recorded as deferred rent liabilities and are amortized as a reduction of rent expense over the non-cancelable term of the related operating lease. | ||||
Restructuring | Restructuring | |||
The main components of our restructuring plan related to the February 2015 acquisition of Trulia relate to workforce reduction and contract termination costs. Workforce reduction charges are accrued when it is probable that the employees are entitled to the severance payments and the amounts can be reasonably estimated. One-time involuntary termination benefits are accrued when the plan of termination has been communicated to the employees and certain other criteria are met. Share-based compensation expense related to acceleration of share-based awards assumed in connection with the acquisition of Trulia is recognized over the remaining requisite service period. Contract termination costs are recognized as a liability when a contract is terminated in accordance with its terms or at the cease-use date. The cumulative effect of a change resulting from a revision to either the timing or the amount of estimated cash flows is recognized as an adjustment to the liability in the period of the change. If the amounts and timing of cash flows from restructuring activities are significantly different from what we have estimated, the actual amount of restructuring and other related charges could be materially different than those we have recorded. Further details on the restructuring are presented in Note 15 of these condensed consolidated financial statements. | ||||
Business Combinations | Business Combinations | |||
We recognize identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions for the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that we identify adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our condensed consolidated statements of operations. Further details on the February 2015 acquisition of Trulia are presented in Note 6 of these condensed consolidated financial statements. | ||||
Revenue Recognition | Revenue Recognition | |||
In general, we recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered to the customer, (iii) the fee is fixed or determinable, and (iv) collectability is reasonably assured. We consider a signed agreement, a binding insertion order or other similar documentation reflecting the terms and conditions under which products or services will be provided to be persuasive evidence of an arrangement. Collectability is assessed based on a number of factors, including payment history and the creditworthiness of a customer. If it is determined that collection is not reasonably assured, revenue is not recognized until collection becomes reasonably assured, which is generally upon receipt of cash. | ||||
We generate revenue from the sale of advertising services and our suite of tools to businesses and professionals primarily associated with the real estate and mortgage industries. These professionals include local real estate professionals, mortgage professionals and brand advertisers. Our two revenue categories are marketplace revenue and display revenue. Incremental direct costs incurred related to the acquisition or origination of a customer contract in a transaction that results in the deferral of revenue are expensed as incurred. | ||||
Marketplace Revenue. Marketplace revenue consists of real estate, mortgages, and Market Leader revenue. | ||||
Real estate revenue primarily includes revenue from advertising and a suite of tools sold to real estate professionals, as well as revenue generated by Zillow Rentals, which includes our rentals marketplace and suite of tools for rental professionals. | ||||
Our Zillow Premier Agent program, which is included in real estate revenue, offers a suite of marketing and business technology solutions to help real estate agents grow their businesses and personal brands. The Premier Agent program allows agents to select products and services that they can tailor to meet their business and advertising needs. The program has three tiers of participation including Premier Platinum, our flagship product, as well as Premier Gold and Premier Silver, to meet different marketing and business needs of a broad range of agents. All tiers of Premier Agents receive access to a dashboard portal on our website that provides individualized program performance analytics, as well as our personalized website service, and our free customer relationship management, or CRM, tool that captures detailed information about each contact made with a Premier Agent through our mobile and web platforms. Our Premier Gold product also includes featured listings whereby the agent’s listings will appear at the top of search results on our mobile and web platforms. Our Premier Platinum product includes the dashboard portal on our website, our personalized website service, our CRM tool, featured listings, and inclusion on our buyer’s agent list, whereby the agent appears as the agent to contact for listings in the purchased zip code. We charge for our Platinum Premier Agent product based on the number of impressions delivered on our buyer’s agent list in zip codes purchased and a contracted maximum cost per impression. Our Platinum Premier Agent product includes multiple deliverables which are accounted for as a single unit of accounting, as the delivery or performance of the undelivered elements is based on traffic to our mobile applications and websites. We recognize revenue related to our impression-based Platinum Premier Agent product based on the lesser of (i) the actual number of impressions delivered on our buyer’s agent list during the period multiplied by the contracted maximum cost per impression, or (ii) the contractual maximum spend on a straight-line basis during the contractual period over which the services are delivered, typically over a period of six months or twelve months and then month-to-month thereafter. We charge a fixed subscription fee for Zillow’s Premier Gold and Premier Silver subscription products. Subscription advertising revenue for our Premier Gold and Premier Silver subscription products is recognized on a straight-line basis during the contractual period over which the services are delivered, typically over a period of six months and then month-to-month thereafter. | ||||
Our Trulia real estate products included in real estate revenue are primarily sold on a fixed fee subscription basis, and include Trulia Local Ads, Trulia Mobile Ads, Trulia Pro with featured listings, and Trulia Seller Ads. Trulia Local Ads and Trulia Mobile Ads enable real estate professionals to promote themselves on Trulia’s search results pages and property details pages for a local market area. Real estate professionals purchase subscriptions to these products based upon their specified market share for a city or zip code, at a fixed monthly price, for periods ranging from one month to one year, with pricing depending on demand, location, and the percentage of market share purchased. Trulia’s featured listings product allows real estate professionals to receive prominent placement of their listings in Trulia’s search results. Real estate professionals sign up for new subscriptions to this product at a fixed monthly price for periods that generally range from six months to 12 months. Trulia Seller Ads enable real estate professionals to generate leads from consumers interested in selling their homes. | ||||
Rentals revenue, which is included in real estate revenue, primarily includes advertising sold to property managers and other rental professionals on a cost per lead and cost per lease basis. We recognize revenue as leads are delivered to rental professionals or as qualified leases are confirmed. | ||||
Mortgages revenue primarily includes advertising sold to mortgage lenders on a cost-per-click (“CPC”) basis, related to Zillow Mortgages, as well as revenue generated by Mortech, which provides subscription-based mortgage software solutions, including a product and pricing engine and lead management platform, for which we recognize revenue on a straight-line basis during the contractual period over which the services are delivered. In Zillow Mortgages, participating qualified mortgage lenders make a prepayment to gain access to consumers interested in connecting with mortgage professionals. Consumers who request rates for mortgage loans in Zillow Mortgages are presented with personalized lender quotes from participating lenders. We only charge mortgage lenders a fee when users click for more information regarding a mortgage loan quote. Mortgage lenders who exhaust their initial prepayment can then prepay additional funds to continue to participate in the marketplace. We recognize revenue when a user clicks on a mortgage advertisement or to obtain additional information about a mortgage loan quote. | ||||
Market Leader revenue primarily includes a comprehensive premium software-as-a-service based marketing product typically sold to real estate professionals as a bundle of products under a fixed fee subscription. We also sell a base version of these products to strategic franchise networks for specified contractual amounts over a number of years and partner with them to drive adoption of our premium solution across their network. | ||||
Display Revenue. Display revenue primarily consists of graphical mobile and web advertising sold on a cost per thousand impressions (“CPM”) or CPC basis to advertisers promoting their brands on our mobile applications and websites and our partner websites, primarily in the real estate industry, including real estate brokerages, home builders, mortgage lenders and home services providers. Our advertising customers also include telecommunications, automotive, insurance and consumer products companies. Impressions are the number of times an advertisement is loaded on a web page and clicks are the number of times users click on an advertisement. Pricing is primarily based on advertisement size and position on our mobile applications and websites, and fees are generally billed monthly. We recognize display revenue as clicks occur or as impressions are delivered to users interacting with our mobile applications or websites. | ||||
There were no customers that generated 10% or more of our total revenue during the three months ended March 31, 2015 or 2014. | ||||
Multiple-Element Arrangements | Multiple-Element Arrangements. We enter into arrangements with customers that include combinations of CPC media placements, CPM media placements and subscription products. | |||
We allocate arrangement consideration in multiple-element revenue arrangements at the inception of an arrangement to all deliverables or those packages in which all components of the package are delivered at the same time based on the relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor-specific objective evidence (“VSOE”) if available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. | ||||
VSOE - We determine VSOE based on our historical pricing and discounting practices for the specific product when sold separately. In determining VSOE, we require that a substantial majority of the standalone selling prices for these products fall within a reasonably narrow pricing range. For certain subscription products, we have been able to establish VSOE. | ||||
TPE - When VSOE cannot be established for deliverables in multiple-element arrangements, we apply judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, our go-to-market strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of the products cannot be obtained. Furthermore, we are unable to reliably determine what similar competitor selling prices are on a standalone basis. As a result, we have not been able to establish selling price based on TPE. | ||||
BESP - When we are unable to establish selling price using VSOE or TPE, we use BESP in our allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the service was sold regularly on a standalone basis. As we have not been able to establish VSOE or TPE for CPM display placements, CPC display placements and certain subscription products, we determine BESP for these deliverables based on the following: | ||||
• | The list price represents a component of the go-to-market strategy established by senior management. Our list prices are based on the features of the products offered. These features, which consist of the size and placement of the advertisements on our mobile applications and websites, impact the list prices which vary depending on the specifications of the features. In addition, the list prices are impacted by market conditions, including the conditions of the real estate market and economy in general, and our competitive landscape; and | |||
• | Analysis of our current and historical selling prices for these deliverables. | |||
We limit the amount of allocable arrangement consideration to amounts that are fixed or determinable and that are not contingent on future performance or future deliverables. We regularly review our BESP. Changes in assumptions or judgments or changes to the elements in the arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period. | ||||
We recognize the relative fair value of the products as they are delivered assuming all other revenue recognition criteria are met. | ||||
Cost of Revenue | Cost of Revenue | |||
Our cost of revenue consists of expenses related to operating our mobile applications and websites, including associated headcount expenses, such as salaries and benefits and share-based compensation expense and bonuses, as well as credit card fees, ad serving costs paid to third parties, revenue-sharing costs related to our commercial business relationships, costs to generate leads for customers, multiple listing services fees and costs associated with the operation of our data center and customer websites. | ||||
Technology and Development | Technology and Development | |||
Research and development costs are expensed as incurred and are recorded in technology and development expenses. These costs consist primarily of technology and development headcount related expenses including salaries, bonuses, benefits and share-based compensation expense primarily associated with developing new technologies. Technology and development expenses also include amortization of intangible assets, including acquired intangible assets, purchased content and capitalized website development costs, and other data content expense. | ||||
Share-Based Compensation | Share-Based Compensation | |||
We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest. | ||||
We use the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, we make assumptions about risk-free interest rates, dividend yields, volatility, and weighted-average expected lives, including estimated forfeiture rates. Risk-free interest rates are derived from U.S. Treasury securities as of the option award grant date. Expected dividend yield is based on our historical dividend payments, which have been zero to date. The expected volatility for our Class A common stock is estimated using a combination of our historical volatility and the published historical volatilities of industry peers in the online publishing market representing the verticals in which we operate. We estimate the weighted-average expected life of the option awards as the average of the option vesting schedule and the term of the award, since we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time share-based awards have been exercisable. The term of the award is estimated using the simplified method, as awards are plain vanilla option awards. Forfeiture rates are estimated using historical actual forfeiture trends as well as our judgment of future forfeitures. These rates are evaluated at least quarterly and any change in compensation expense is recognized in the period of the change. The estimation of option awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period the estimates are revised. We consider many factors when estimating expected forfeitures, including employee class and historical experience. Actual results, and future changes in estimates, may differ substantially from management’s current estimates. | ||||
For issuances of restricted stock awards, restricted stock units and restricted units, we determine the fair value of the award based on the market value of our Class A common stock at the date of grant. | ||||
Advertising Costs | Advertising Costs | |||
Advertising costs are expensed as incurred. Advertising costs are recorded in sales and marketing expenses. | ||||
Income Taxes | Income Taxes | |||
We use the asset and liability approach for accounting and reporting income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. A valuation allowance against deferred tax assets would be established if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some or all of the deferred tax assets are not expected to be realized. | ||||
We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. Interest and penalties related to unrecognized tax benefits are recorded as income tax expense. | ||||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | |||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on the disclosure of uncertainties about an entity’s ability to continue as a going concern. This standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual reporting periods ending after December 15, 2016, and early adoption is permitted. We expect to adopt this guidance on January 1, 2017. We do not expect the adoption of this guidance to have any impact on our financial position, results of operations or cash flows. | ||||
In May 2014, the FASB issued guidance on revenue recognition. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, early adoption is not permitted, and must be applied retrospectively or modified retrospectively. We expect to adopt this guidance on January 1, 2017. We have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations or cash flows, if any, or our approach to adoption. | ||||
Fair Value | Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | |||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||
• | Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. | |||
• | Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require. | |||
We applied the following methods and assumptions in estimating our fair value measurements: | ||||
Cash equivalents — Cash equivalents are comprised of highly liquid investments, including money market funds, foreign government securities and certificates of deposit, with original maturities of less than three months. The fair value measurement of these assets is based on quoted market prices in active markets and these assets are recorded at fair value. | ||||
Investments — Our investments consist of fixed income securities, which include U.S. and foreign government agency securities, corporate notes and bonds, municipal securities, commercial paper and certificates of deposit. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||
Restricted cash — Our restricted cash consists of certificates of deposit held as collateral in our name at a financial institution related to certain of our operating leases. The fair value measurement of these assets is based on observable market-based inputs. | ||||
Net Loss Per Share | Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares (including Class A common stock and Class B common stock) outstanding during the period. In the calculation of basic net loss per share, undistributed earnings are allocated assuming all earnings during the period were distributed. | |||
Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares (including Class A common stock and Class B common stock) outstanding during the period and potentially dilutive Class A common stock equivalents, except in cases where the effect of the Class A common stock equivalent would be antidilutive. Potential Class A common stock equivalents consist of Class A common stock issuable upon exercise of stock options and Class A common stock underlying unvested restricted stock awards and unvested restricted stock units using the treasury stock method. | ||||
Segment Information and Revenue | We have one reportable segment. Our reportable segment has been identified based on how our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information on an entity-wide basis. We have one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components. Accordingly, we have determined that we have a single reporting segment and operating unit structure. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Policies [Abstract] | |||
Useful Lives | The useful lives are as follows: | ||
Computer equipment | 3 years | ||
Purchased software | 3 years | ||
Office equipment, furniture and fixtures | 5 to 7 years | ||
Leasehold improvements | Shorter of expected useful life or lease term |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Summary of Balances of Cash Equivalents and Investments | The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of March 31, 2015 (in thousands): | ||||||||||||
March 31, 2015 | |||||||||||||
Total | Level 1 | Level 2 | |||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 111,557 | $ | 111,557 | $ | — | |||||||
Certificates of deposit | 450 | — | 450 | ||||||||||
Short-term investments: | |||||||||||||
U.S government agency securities | 164,929 | 164,929 | — | ||||||||||
Corporate notes and bonds | 82,010 | — | 82,010 | ||||||||||
Municipal securities | 43,782 | — | 43,782 | ||||||||||
Certificates of deposit | 15,858 | — | 15,858 | ||||||||||
Commercial paper | 7,993 | — | 7,993 | ||||||||||
Foreign government securities | 6,009 | — | 6,009 | ||||||||||
Restricted cash | 6,800 | — | 6,800 | ||||||||||
Total | $ | 439,388 | $ | 276,486 | $ | 162,902 | |||||||
The following table presents the fair value, by level within the fair value hierarchy, of our cash equivalents and investments as of December 31, 2014 (in thousands): | |||||||||||||
December 31, 2014 | |||||||||||||
Total | Level 1 | Level 2 | |||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 98,645 | $ | 98,645 | $ | — | |||||||
Foreign government securities | 9,035 | — | 9,035 | ||||||||||
Certificates of deposit | 2,975 | — | 2,975 | ||||||||||
Short-term investments: | |||||||||||||
U.S government agency securities | 118,342 | 118,342 | — | ||||||||||
Corporate notes and bonds | 78,746 | — | 78,746 | ||||||||||
Municipal securities | 26,256 | — | 26,256 | ||||||||||
Foreign government securities | 8,570 | — | 8,570 | ||||||||||
Commercial paper | 7,987 | — | 7,987 | ||||||||||
Certificates of deposit | 6,928 | — | 6,928 | ||||||||||
Long-term investments: | |||||||||||||
U.S government agency securities | 63,515 | 63,515 | — | ||||||||||
Municipal securities | 12,917 | — | 12,917 | ||||||||||
Corporate notes and bonds | 6,694 | — | 6,694 | ||||||||||
Certificates of deposit | 200 | — | 200 | ||||||||||
Total | $ | 440,810 | $ | 280,502 | $ | 160,308 | |||||||
Cash_Cash_Equivalents_Investme1
Cash, Cash Equivalents, Investments and Restricted Cash (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents, Available-for-Sale Investments and Restricted Cash | The following table presents the amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash and cash equivalents, available-for-sale investments and restricted cash as of March 31, 2015 (in thousands): | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
Cash | $ | 195,845 | $ | — | $ | — | $ | 195,845 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | 111,557 | — | — | 111,557 | |||||||||||||
Certificates of deposit | 450 | — | — | 450 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S government agency securities | 164,872 | 78 | (21 | ) | 164,929 | ||||||||||||
Corporate notes and bonds | 82,041 | 15 | (46 | ) | 82,010 | ||||||||||||
Municipal securities | 43,765 | 26 | (9 | ) | 43,782 | ||||||||||||
Certificates of deposit | 15,856 | 3 | (1 | ) | 15,858 | ||||||||||||
Commercial paper | 7,993 | — | — | 7,993 | |||||||||||||
Foreign government securities | 6,009 | — | — | 6,009 | |||||||||||||
Restricted cash | 6,800 | — | — | 6,800 | |||||||||||||
Total | $ | 635,188 | $ | 122 | $ | (77 | ) | $ | 635,233 | ||||||||
Available-for-Sale Investments by Contractual Maturity | The following table presents available-for-sale investments by contractual maturity date as of March 31, 2015 (in thousands): | ||||||||||||||||
Amortized | Estimated Fair | ||||||||||||||||
Cost | Market Value | ||||||||||||||||
Due in one year or less | $ | 248,719 | $ | 248,752 | |||||||||||||
Due after one year through two years | 71,817 | 71,829 | |||||||||||||||
Total | $ | 320,536 | $ | 320,581 | |||||||||||||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Detail of Property and Equipment | The following table presents the detail of property and equipment as of the dates presented (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Website development costs | $ | 59,618 | $ | 65,224 | |||||
Computer equipment | 17,450 | 13,243 | |||||||
Leasehold improvements | 30,085 | 10,617 | |||||||
Software | 5,875 | 3,431 | |||||||
Construction-in-progress | 11,444 | 9,307 | |||||||
Office equipment, furniture and fixtures | 10,218 | 6,482 | |||||||
Property and equipment | 134,690 | 108,304 | |||||||
Less: accumulated amortization and depreciation | (61,754 | ) | (66,704 | ) | |||||
Property and equipment, net | $ | 72,936 | $ | 41,600 | |||||
Acquisition_of_Trulia_Tables
Acquisition of Trulia (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Summary of Purchase Price | The purchase price to effect the acquisition of Trulia of approximately $2.0 billion is summarized in the following table (in thousands): | ||||||||
Value of Class A Common stock issued | $ | 1,883,728 | |||||||
Substituted stock options and stock appreciation rights attributable to pre-combination service | 54,853 | ||||||||
Substituted restricted stock units attributable to pre-combination service | 27,798 | ||||||||
Cash paid in lieu of fractional outstanding shares | 41 | ||||||||
Total purchase price | $ | 1,966,420 | |||||||
Purchase Price Allocation | Based upon the fair values determined by us, in which we considered or relied in part upon a valuation report of a third-party expert, the total purchase price was allocated as follows (in thousands): | ||||||||
Cash and cash equivalents | $ | 173,447 | |||||||
Accounts receivable | 13,093 | ||||||||
Prepaid expenses and other current assets | 20,833 | ||||||||
Restricted cash | 6,946 | ||||||||
Property and equipment | 30,189 | ||||||||
Other assets | 434 | ||||||||
Identifiable intangible assets | 549,000 | ||||||||
Goodwill | 1,737,075 | ||||||||
Accounts payable, accrued expenses and other current liabilities | (51,063 | ) | |||||||
Accrued compensation and benefits | (8,324 | ) | |||||||
Deferred revenue | (8,300 | ) | |||||||
Long-term debt | (230,000 | ) | |||||||
Debt premium recorded in additional paid-in capital | (126,386 | ) | |||||||
Deferred tax liabilities and other long-term liabilities | (140,524 | ) | |||||||
Total preliminary estimated purchase price | $ | 1,966,420 | |||||||
Preliminary Estimated Fair Value of Identifiable Intangible Assets Acquired | The preliminary estimated fair value of identifiable intangible assets acquired consisted of the following (in thousands): | ||||||||
Preliminary | Estimated | ||||||||
Estimated | Useful Life | ||||||||
Fair Value | (in years) | ||||||||
Trulia trade names and trademarks | $ | 351,000 | Indefinite | ||||||
Market Leader trade names and trademarks | 2,000 | 2 | |||||||
Customer relationships | 92,000 | 7-Mar | |||||||
Developed technology | 91,000 | 7-Mar | |||||||
Advertising relationships | 9,000 | 3 | |||||||
MLS home data feeds | 4,000 | 3 | |||||||
Total | $ | 549,000 | |||||||
Pro Forma Condensed Combined Financial Information | The following table presents the unaudited pro forma condensed combined financial information (in thousands, except per share amounts): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue | $ | 162,531 | $ | 120,732 | |||||
Net loss | $ | (17,854 | ) | $ | (23,806 | ) | |||
Net loss per share – basic and diluted | $ | (0.31 | ) | $ | (0.42 | ) |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Change in Goodwill | The following table presents the change in goodwill from December 31, 2014 through March 31, 2015 (in thousands): | ||||
Balance as of December 31, 2014 | $ | 96,352 | |||
Goodwill recorded in connection with the acquisition of Trulia | 1,737,075 | ||||
Balance as of March 31, 2015 | $ | 1,833,427 | |||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Intangible Assets | The following tables present the detail of intangible assets subject to amortization as of the dates presented (in thousands): | ||||||||||||
March 31, 2015 | |||||||||||||
Cost | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
Purchased content | $ | 24,899 | $ | (15,568 | ) | $ | 9,331 | ||||||
Customer relationships | 101,225 | (5,554 | ) | 95,671 | |||||||||
Developed technology | 104,595 | (7,612 | ) | 96,983 | |||||||||
Trade names and trademarks | 5,261 | (1,618 | ) | 3,643 | |||||||||
Advertising relationships | 9,000 | (348 | ) | 8,652 | |||||||||
MLS home data feeds | 4,000 | (155 | ) | 3,845 | |||||||||
Total | $ | 248,980 | $ | (30,855 | ) | $ | 218,125 | ||||||
December 31, 2014 | |||||||||||||
Cost | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
Purchased content | $ | 24,615 | $ | (13,904 | ) | $ | 10,711 | ||||||
Developed technology | 13,595 | (5,322 | ) | 8,274 | |||||||||
Customer relationships | 9,225 | (3,386 | ) | 5,838 | |||||||||
Trade names and trademarks | 3,261 | (1,327 | ) | 1,934 | |||||||||
Total | $ | 50,696 | $ | (23,939 | ) | $ | 26,757 | ||||||
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets, including amortization related to future commitments (see Note 14), as of March 31, 2015 is as follows (in thousands): | ||||||||||||
Remainder of 2015 | $ | 34,540 | |||||||||||
2016 | 47,995 | ||||||||||||
2017 | 44,092 | ||||||||||||
2018 | 33,888 | ||||||||||||
2019 | 30,872 | ||||||||||||
All future years | 75,222 | ||||||||||||
Total future amortization expense | $ | 266,609 | |||||||||||
Convertible_Senior_Notes_Table
Convertible Senior Notes (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Debt Disclosure [Abstract] | |||
Schedule of Significant Unobservable Inputs Used in Fair Value Classified as Level 3 | The fair value is classified as Level 3 due to the use of significant unobservable inputs such as implied volatility of Zillow Group’s Class A common stock, discount spread and the limited trading activity for the 2020 Notes. We determined the fair value of the 2020 Notes as of March 31, 2015 using the following assumptions: | ||
Stock price | $109.14 | ||
Time to maturity | 5.83 years | ||
Volatility | 35% | ||
Risk-free rate | 1.78% | ||
Discount spread | 6.0% - 7.0% |
ShareBased_Awards_Tables
Share-Based Awards (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Summary of Option Award and Stock Appreciation Rights Activity | The following table summarizes option award and stock appreciation rights activity for the year ended December 31, 2014 and the three months ended March 31, 2015: | ||||||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||||||
of Shares | Average | Average | Intrinsic | ||||||||||||||
Subject to | Exercise | Remaining | Value (in | ||||||||||||||
Existing | Price Per | Contractual | thousands) | ||||||||||||||
Options and | Share | Life (Years) | |||||||||||||||
Stock | |||||||||||||||||
Appreciation | |||||||||||||||||
Rights | |||||||||||||||||
Outstanding at January 1, 2014 | 5,156,706 | $ | 27.09 | 5.43 | $ | 283,009 | |||||||||||
Granted | 2,219,458 | 97.06 | |||||||||||||||
Exercised | (1,323,509 | ) | 18.08 | ||||||||||||||
Forfeited or cancelled | (252,891 | ) | 62.76 | ||||||||||||||
Outstanding at December 31, 2014 | 5,799,764 | 54.37 | 5.32 | 311,040 | |||||||||||||
Assumed in connection with February 2015 acquisition of Trulia | 1,053,255 | 41.37 | |||||||||||||||
Granted | 2,625,352 | 102.48 | |||||||||||||||
Exercised | (391,466 | ) | 23.38 | ||||||||||||||
Forfeited or cancelled | (74,846 | ) | 68.4 | ||||||||||||||
Outstanding at March 31, 2015 | 9,012,059 | 68.1 | 6.14 | 312,889 | |||||||||||||
Vested and exercisable at March 31, 2015 | 2,621,756 | 30.99 | 3.84 | 182,024 | |||||||||||||
Fair Value of Options Granted, Excluding Non Employee Director Awards and Executive Awards, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model | The fair value of options granted, excluding options granted under the Stock Option Grant Program for Nonemployee Directors (“Nonemployee Director Awards”) and certain options granted to the Company’s executives during the three months ended March 31, 2015 (“Executive Awards”), is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends and with the following assumptions for the periods presented: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected volatility | 56% | 53% | |||||||||||||||
Expected dividend yields | — | — | |||||||||||||||
Risk-free interest rate | 1.24% | 1.37% | |||||||||||||||
Weighted-average expected life | 4.58 years | 4.58 years | |||||||||||||||
Weighted-average fair value of options granted | $47.57 | $36.93 | |||||||||||||||
Summary of Restricted Stock Award Activity | The following table summarizes restricted stock award activity for the year ended December 31, 2014 and the three months ended March 31, 2015: | ||||||||||||||||
Shares of | Weighted- | ||||||||||||||||
Restricted Stock | Average Grant- | ||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Unvested outstanding at January 1, 2014 | 230,127 | $ | 30.43 | ||||||||||||||
Granted | 3,255 | 80.91 | |||||||||||||||
Vested | (146,547 | ) | 30.48 | ||||||||||||||
Forfeited or cancelled | — | — | |||||||||||||||
Unvested outstanding at December 31, 2014 | 86,835 | 32.25 | |||||||||||||||
Granted | 1,391 | 121.35 | |||||||||||||||
Vested | (10,910 | ) | 44.39 | ||||||||||||||
Forfeited or cancelled | — | — | |||||||||||||||
Unvested outstanding at March 31, 2015 | 77,316 | 32.14 | |||||||||||||||
Summary of Restricted Stock Units Activity | The following table summarizes activity for restricted stock units for the year ended December 31, 2014 and the three months ended March 31, 2015: | ||||||||||||||||
Restricted Stock | Weighted- | ||||||||||||||||
Units | Average Grant- | ||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Unvested outstanding at January 1, 2014 | 121,123 | $ | 64.07 | ||||||||||||||
Granted | 102,264 | 102.95 | |||||||||||||||
Vested | (64,935 | ) | 76.28 | ||||||||||||||
Forfeited or cancelled | (32,850 | ) | 72.4 | ||||||||||||||
Unvested outstanding at December 31, 2014 | 125,602 | 85.67 | |||||||||||||||
Assumed in connection with February 2015 acquisition of Trulia | 1,266,319 | 109.14 | |||||||||||||||
Granted | 34,799 | 108.57 | |||||||||||||||
Vested | (24,345 | ) | 80.06 | ||||||||||||||
Forfeited or cancelled | (30,253 | ) | 95.48 | ||||||||||||||
Unvested outstanding at March 31, 2015 | 1,372,122 | 107.77 | |||||||||||||||
Effects of Share Based Compensation in Statements of Operations | The following table presents the effects of share-based compensation in our statements of operations during the periods presented (in thousands): | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cost of revenue | $ | 952 | $ | 373 | |||||||||||||
Sales and marketing | 4,209 | 1,303 | |||||||||||||||
Technology and development | 5,766 | 2,025 | |||||||||||||||
General and administrative | 12,080 | 3,431 | |||||||||||||||
Restructuring costs | 10,420 | — | |||||||||||||||
Total | $ | 33,427 | $ | 7,132 | |||||||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | For the periods presented, the following Class A common stock equivalents were excluded from the calculations of diluted net loss per share because their effect would have been antidilutive (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Class A common stock issuable upon the exercise of option awards and stock appreciation rights | 2,746 | 2,959 | |||||||
Class A common stock underlying unvested restricted stock awards and restricted stock units | 383 | 97 | |||||||
Class A common stock issuable upon conversion of the 2020 Notes | 2,843 | — | |||||||
Total Class A common stock equivalents | 5,972 | 3,056 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Payments for All Operating Leases | Future minimum payments for all operating leases as of March 31, 2015 are as follows (in thousands): | ||||
Remainder of 2015 | $ | 13,046 | |||
2016 | 20,056 | ||||
2017 | 24,033 | ||||
2018 | 27,206 | ||||
2019 | 23,734 | ||||
All future years | 103,393 | ||||
Total future minimum lease payments | $ | 211,468 | |||
Purchase Commitments for Content Related to Mobile Applications and Websites | The amounts due for this content as of March 31, 2015 are as follows (in thousands): | ||||
Remainder of 2015 | $ | 23,728 | |||
2016 | 28,570 | ||||
2017 | 34,701 | ||||
2018 | 14,000 | ||||
2019 | 6,000 | ||||
All future years | 10,500 | ||||
Total future purchase commitments | $ | 117,499 | |||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Summary of Accrued Restructuring Costs | A summary of accrued restructuring costs as of and for the three months ended March 31, 2015 is shown in the table below (in thousands): | ||||||||||||||||
One -Time | Contract | Other | Total | ||||||||||||||
Termination | Termination | Associated | |||||||||||||||
Benefits | Costs | Costs | |||||||||||||||
Restructuring reserves assumed in connection with | |||||||||||||||||
February 2015 acquisition of Trulia | $ | 81 | $ | 2,544 | $ | 136 | $ | 2,761 | |||||||||
Restructuring costs | 9,015 | 1,319 | 110 | 10,444 | |||||||||||||
Cash payments | (2,612 | ) | (387 | ) | (375 | ) | (3,374 | ) | |||||||||
Change in estimate | (67 | ) | — | 137 | 70 | ||||||||||||
Accrued restructuring costs as of March 31, 2015 | $ | 6,417 | $ | 3,476 | $ | 8 | $ | 9,901 | |||||||||
Segment_Information_and_Revenu1
Segment Information and Revenue (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Revenue Categories | The following table presents our revenue categories during the periods presented (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Marketplace revenue: | |||||||||
Real estate | $ | 93,312 | $ | 46,595 | |||||
Mortgages | 9,558 | 7,129 | |||||||
Market Leader | 6,057 | — | |||||||
Total Marketplace revenue | 108,927 | 53,724 | |||||||
Display revenue | 18,346 | 12,519 | |||||||
Total revenue | $ | 127,273 | $ | 66,243 | |||||
Organization_and_Description_o1
Organization and Description of Business - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended |
Feb. 17, 2015 | Mar. 31, 2015 | Jul. 28, 2014 | |
Employee | |||
Organization And Description Of Business [Line Items] | |||
Agreement date | 28-Jul-14 | ||
Business acquisition, effective date | 17-Feb-15 | ||
Total purchase price | $2,000,000,000 | ||
Acquisition-related costs | 12,477,000 | ||
Investment banking fees | 9,100,000 | ||
Total workforce reduction | 350 | ||
Restructuring charges | $25,065,000 | ||
Trulia | |||
Organization And Description Of Business [Line Items] | |||
Business acquisition, effective date | 17-Feb-15 | ||
Total workforce reduction | 350 | ||
Trulia | Plan | Class A Common Stock | |||
Organization And Description Of Business [Line Items] | |||
Convertible common stock | 0.444 | ||
Zillow Merger | Plan | Class A Common Stock | |||
Organization And Description Of Business [Line Items] | |||
Convertible common stock | 1 | ||
Zillow Merger | Plan | Class B Common Stock | |||
Organization And Description Of Business [Line Items] | |||
Convertible common stock | 1 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Customer | Customer | |
Categories | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Business acquisition, effective date | 17-Feb-15 | |
Other than temporary impairment loss | $0 | $0 |
Amortization period, spread on perpetual rights contracts | 2 years | |
Number of revenue categories | 2 | |
Sale of product for fixed subscription, description | Trulia real estate products included in real estate revenue are primarily sold on a fixed fee subscription basis, and include Trulia Local Ads, Trulia Mobile Ads, Trulia Pro with featured listings, and Trulia Seller Ads. Trulia Local Ads and Trulia Mobile Ads enable real estate professionals to promote themselves on Truliabs search results pages and property details pages for a local market area. Real estate professionals purchase subscriptions to these products based upon their specified market share for a city or zip code, at a fixed monthly price, for periods ranging from one month to one year, with pricing depending on demand, location, and the percentage of market share purchased. Truliabs featured listings product allows real estate professionals to receive prominent placement of their listings in Truliabs search results. Real estate professionals sign up for new subscriptions to this product at a fixed monthly price for periods that generally range from six months to 12 months. Trulia Seller Ads enable real estate professionals to generate leads from consumers interested in selling their homes. | |
Number of customers generating more than 10% of total revenue | 0 | 0 |
Trulia | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Business acquisition, effective date | 17-Feb-15 | |
Minimum | Customer Concentration Risk | Sales Revenue, Net | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Percentage of revenue | 10.00% | 10.00% |
First Set Of Product[Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Purchase subscriptions to the products, Maximum period | 1 year | |
Purchase subscriptions to the products, minimum period | 1 month | |
Second Set Of Product [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Purchase subscriptions to the products, Maximum period | 12 months | |
Purchase subscriptions to the products, minimum period | 6 months | |
Software Development | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Amortization period | 1 year | |
Purchased Content | Minimum | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Amortization period | 2 years | |
Purchased Content | Maximum | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Amortization period | 9 years |
Useful_Lives_Detail
Useful Lives (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment | 3 years |
Purchased software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment | 3 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment | Shorter of expected useful life or lease term |
Minimum | Office equipment, furniture, and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment | 5 years |
Maximum | Office equipment, furniture, and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment | 7 years |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Original maturities date of money market funds | Less than three months |
Fair_Value_of_Cash_Equivalents
Fair Value of Cash Equivalents and Investments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | $6,800 | |
Short-term investments | 320,581 | 246,829 |
Total | 439,388 | 440,810 |
Long-term investments | 83,326 | |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 111,557 | 98,645 |
Foreign Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,035 | |
Short-term investments | 6,009 | 8,570 |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 450 | 2,975 |
Short-term investments | 15,858 | 6,928 |
Long-term investments | 200 | |
US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 164,929 | 118,342 |
Long-term investments | 63,515 | |
Corporate Notes and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 82,010 | 78,746 |
Long-term investments | 6,694 | |
Municipal Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 43,782 | 26,256 |
Long-term investments | 12,917 | |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 7,993 | 7,987 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 276,486 | 280,502 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 111,557 | 98,645 |
Fair Value, Inputs, Level 1 | US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 164,929 | 118,342 |
Long-term investments | 63,515 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | 6,800 | |
Total | 162,902 | 160,308 |
Fair Value, Inputs, Level 2 | Foreign Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,035 | |
Short-term investments | 6,009 | 8,570 |
Fair Value, Inputs, Level 2 | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 450 | 2,975 |
Short-term investments | 15,858 | 6,928 |
Long-term investments | 200 | |
Fair Value, Inputs, Level 2 | Corporate Notes and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 82,010 | 78,746 |
Long-term investments | 6,694 | |
Fair Value, Inputs, Level 2 | Municipal Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 43,782 | 26,256 |
Long-term investments | 12,917 | |
Fair Value, Inputs, Level 2 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $7,993 | $7,987 |
Cash_Cash_Equivalents_Investme2
Cash, Cash Equivalents, Investments and Restricted Cash - Additional Information (Detail) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jan. 01, 2015 | Jan. 01, 2015 |
Cash and Cash Equivalents [Abstract] | ||
Held to maturity transferred to available-for-sale security, unrealized loss | $0.10 | |
Amount transferred from held-to-maturity to available-for-sale | $440.80 |
Amortized_Cost_Gross_Unrealize
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents, Available-for-Sale Investments and Restricted Cash (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | $635,188 |
Unrealized Gains | 122 |
Unrealized Losses | -77 |
Fair Market Value | 635,233 |
Cash | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 195,845 |
Fair Market Value | 195,845 |
Restricted Cash | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 6,800 |
Fair Market Value | 6,800 |
Cash Equivalents | Money Market Funds | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 111,557 |
Fair Market Value | 111,557 |
Cash Equivalents | Certificates of Deposit | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 450 |
Fair Market Value | 450 |
Short-term Investments | Certificates of Deposit | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 15,856 |
Unrealized Gains | 3 |
Unrealized Losses | -1 |
Fair Market Value | 15,858 |
Short-term Investments | US Government Agencies Debt Securities | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 164,872 |
Unrealized Gains | 78 |
Unrealized Losses | -21 |
Fair Market Value | 164,929 |
Short-term Investments | Corporate Notes and Bonds | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 82,041 |
Unrealized Gains | 15 |
Unrealized Losses | -46 |
Fair Market Value | 82,010 |
Short-term Investments | Municipal Securities | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 43,765 |
Unrealized Gains | 26 |
Unrealized Losses | -9 |
Fair Market Value | 43,782 |
Short-term Investments | Commercial Paper | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 7,993 |
Fair Market Value | 7,993 |
Short-term Investments | Foreign Government Securities | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 6,009 |
Fair Market Value | $6,009 |
AvailableforSale_Investments_b
Available-for-Sale Investments by Contractual Maturity (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Cash and Cash Equivalents [Abstract] | |
Amortized Cost, Due in one year or less | $248,719 |
Amortized Cost, Due after one year through two years | 71,817 |
Total | 320,536 |
Estimated Fair Value, Due in one year or less | 248,752 |
Estimated Fair Value, Due after one year through two years | 71,829 |
Total | $320,581 |
Detail_of_Property_and_Equipme
Detail of Property and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $134,690 | $108,304 |
Less: accumulated amortization and depreciation | -61,754 | -66,704 |
Property and equipment, net | 72,936 | 41,600 |
Software Development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 59,618 | 65,224 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 17,450 | 13,243 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 30,085 | 10,617 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 5,875 | 3,431 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 11,444 | 9,307 |
Office equipment, furniture, and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $10,218 | $6,482 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Amortization and depreciation expense related to property and equipment other than website development costs | $2,200,000 | $1,300,000 |
Capitalization of website development costs | 10,000,000 | 5,600,000 |
Amortization of website development costs and intangible assets included in technology and development | 11,782,000 | 6,784,000 |
Technology and Development | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of website development costs and intangible assets included in technology and development | 6,900,000 | 2,600,000 |
Technology and Development | Software Development | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of website development costs and intangible assets included in technology and development | $4,900,000 | $4,200,000 |
Acquisition_of_Trulia_Addition
Acquisition of Trulia - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
Feb. 17, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 17, 2015 | |
Segment | ||||
Business Acquisition [Line Items] | ||||
Converted share of fully paid | At the effective time of the Trulia Merger, each share of Trulia common stock, other than Trulia excluded shares (as defined below), was converted into the right to receive 0.444 of a share of fully paid and nonassessable Zillow Group Class A common stock. | |||
Common stock conversion ratio | 0.444 | |||
Closing price of stock on date of acquisition | $109.14 | $109.14 | ||
Stock option and stock appreciation rights assumed of grant using the Black-Scholes-Merton option-pricing model, expected volatility | 53.00% | 56.00% | 53.00% | |
Stock option and stock appreciation rights assumed of grant using the Black-Scholes-Merton option-pricing model, dividends | 0.00% | 0.00% | 0.00% | |
Stock option and stock appreciation rights assumed of grant using the Black-Scholes-Merton option-pricing model, risk-free interest rate | 1.10% | 1.24% | 1.37% | |
Stock option and stock appreciation rights assumed of grant using the Black-Scholes-Merton option-pricing model, expected life | 3 years | 4 years 6 months 29 days | 4 years 6 months 29 days | |
Preliminary fair value of Notes | $356,400,000 | |||
Debt instrument, aggregate principal amount | 230,000,000 | 230,000,000 | 230,000,000 | |
Debt premium recorded in additional paid-in capital | 126,400,000 | |||
Indefinite-lived intangible asset | 549,000,000 | 549,000,000 | ||
Acquisition-related costs | 12,500,000 | |||
Number of operating segments | 1 | |||
Class A Common Stock | ||||
Business Acquisition [Line Items] | ||||
Stock issued for acquisition | 17,259,704 | |||
Trulia | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 2,000,000,000 | 2,000,000,000 | ||
Deferred tax liability | 140,400,000 | |||
Trulia | Trade Names and Trademarks | ||||
Business Acquisition [Line Items] | ||||
Indefinite-lived intangible asset | $351,000,000 | $351,000,000 | $351,000,000 |
Summary_of_Purchase_Price_Deta
Summary of Purchase Price (Detail) (Trulia, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Feb. 17, 2015 |
Business Acquisition [Line Items] | |
Value of Class A Common stock issued | $1,883,728 |
Cash paid in lieu of fractional outstanding shares | 41 |
Total purchase price | 1,966,420 |
Stock Option and Stock Appreciation Rights | |
Business Acquisition [Line Items] | |
Substituted share awards attributable to pre-combination service | 54,853 |
Restricted Stock Units | |
Business Acquisition [Line Items] | |
Substituted share awards attributable to pre-combination service | $27,798 |
Purchase_Price_Allocation_Deta
Purchase Price Allocation (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 17, 2015 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $1,833,427 | $96,352 | |
Trulia | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 173,447 | ||
Accounts receivable | 13,093 | ||
Prepaid expenses and other current assets | 20,833 | ||
Restricted cash | 6,946 | ||
Property and equipment | 30,189 | ||
Other assets | 434 | ||
Identifiable intangible assets | 549,000 | ||
Goodwill | 1,737,075 | ||
Accounts payable, accrued expenses and other current liabilities | -51,063 | ||
Accrued compensation and benefits | -8,324 | ||
Deferred revenue | -8,300 | ||
Long-term debt | -230,000 | ||
Debt premium recorded in additional paid-in capital | -126,386 | ||
Deferred tax liabilities and other long-term liabilities | -140,524 | ||
Total preliminary estimated purchase price | $1,966,420 |
Preliminary_Estimated_Fair_Val
Preliminary Estimated Fair Value of Identifiable Intangible Assets Acquired (Detail) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 17, 2015 | Mar. 31, 2015 | Feb. 17, 2015 |
Business Acquisition [Line Items] | |||
Total Preliminary Estimated Fair Value | $549,000 | $549,000 | |
Market Leader Trade Names and Trademarks | |||
Business Acquisition [Line Items] | |||
Total Preliminary Estimated Fair Value | 2,000 | 2,000 | |
Estimated Useful Life (in years) | 2 years | ||
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Total Preliminary Estimated Fair Value | 92,000 | 92,000 | |
Developed Technology | |||
Business Acquisition [Line Items] | |||
Total Preliminary Estimated Fair Value | 91,000 | 91,000 | |
Advertising Relationships | |||
Business Acquisition [Line Items] | |||
Total Preliminary Estimated Fair Value | 9,000 | 9,000 | |
Estimated Useful Life (in years) | 3 years | ||
MLS Home Data Feeds | |||
Business Acquisition [Line Items] | |||
Total Preliminary Estimated Fair Value | 4,000 | 4,000 | |
Estimated Useful Life (in years) | 3 years | ||
Trulia | Trade Names and Trademarks | |||
Business Acquisition [Line Items] | |||
Total Preliminary Estimated Fair Value | $351,000 | $351,000 | $351,000 |
Estimated Useful Life (in years) | Indefinite | ||
Minimum | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 3 years | ||
Minimum | Developed Technology | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 3 years | ||
Maximum | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 7 years | ||
Maximum | Developed Technology | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 7 years |
Pro_Forma_Condensed_Combined_F
Pro Forma Condensed Combined Financial Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenue | $162,531 | $120,732 |
Net loss | ($17,854) | ($23,806) |
Net loss per share - basic and diluted | ($0.31) | ($0.42) |
Change_in_Goodwill_Detail
Change in Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance as of December 31, 2014 | $96,352 |
Goodwill recorded in connection with the acquisition of Trulia | 1,737,075 |
Balance as of March 31, 2015 | $1,833,427 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $248,980 | $50,696 |
Accumulated Amortization | -30,855 | -23,939 |
Net | 218,125 | 26,757 |
Purchased Content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 24,899 | 24,615 |
Accumulated Amortization | -15,568 | -13,904 |
Net | 9,331 | 10,711 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 104,595 | 13,595 |
Accumulated Amortization | -7,612 | -5,322 |
Net | 96,983 | 8,274 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 101,225 | 9,225 |
Accumulated Amortization | -5,554 | -3,386 |
Net | 95,671 | 5,838 |
Trade Names and Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,261 | 3,261 |
Accumulated Amortization | -1,618 | -1,327 |
Net | 3,643 | 1,934 |
Advertising Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 9,000 | |
Accumulated Amortization | -348 | |
Net | 8,652 | |
MLS Home Data Feeds | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,000 | |
Accumulated Amortization | -155 | |
Net | $3,845 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of website development costs and intangible assets included in technology and development | $11,782,000 | $6,784,000 | |
Remaining weighted-average amortization period | 6 years 3 months 18 days | ||
Trulia | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible asset | 351,000,000 | ||
Technology and Development | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of website development costs and intangible assets included in technology and development | $6,900,000 | $2,600,000 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense for Intangible Assets (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2015 | $34,540 |
2016 | 47,995 |
2017 | 44,092 |
2018 | 33,888 |
2019 | 30,872 |
All future years | 75,222 |
Total future amortization expense | $266,609 |
Convertible_Senior_Notes_Addit
Convertible Senior Notes - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2015 | Feb. 17, 2015 | |
Financial_Covenants | Financial_Covenants | ||
Debt Instrument [Line Items] | |||
Debt instrument, aggregate principal amount | $230,000,000 | $230,000,000 | $230,000,000 |
Debt instrument, interest rate stated percentage | 2.75% | ||
2.75% Convertible Senior Notes Due 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, due date | 15-Dec-20 | ||
Debt instrument, frequency of period payment | Semi-annually on June 15 and December 15 | ||
Debt instrument, conversion rate principal amount | 1,000 | 1,000 | |
Debt instrument, conversion rate shares | 27.8303 | ||
Repurchase price percentage of principal amount | 100.00% | ||
Number of financial covenants | 0 | 0 | |
Debt instrument, redemption period start date | 20-Dec-18 | ||
Interest expense | 700,000 | ||
Accrued interest | 1,800,000 | 1,800,000 | |
Fair value of convertible notes | 356,400,000 | 356,400,000 | |
Debt instrument carrying value | $230,000,000 | $230,000,000 | |
2.75% Convertible Senior Notes Due 2020 | Class A Common Stock | |||
Debt Instrument [Line Items] | |||
Debt instrument, conversion rate shares | 12.3567 | ||
Common stock exchange ratio | 0.444 | ||
Initial conversion price | $80.93 | $80.93 | |
Debt instrument, convertible threshold percentage | 130.00% | ||
Debt instrument, convertible threshold trading days | 20 | ||
Debt instrument, convertible threshold consecutive trading days | 30 years |
Schedule_of_Significant_Unobse
Schedule of Significant Unobservable Inputs Used in Fair Value Classified as Level 3 (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Instrument [Line Items] | |
Stock price | $109.14 |
Time to maturity | 5 years 9 months 29 days |
Volatility | 35.00% |
Risk-free rate | 1.78% |
Minimum | |
Debt Instrument [Line Items] | |
Discount spread | 6.00% |
Maximum | |
Debt Instrument [Line Items] | |
Discount spread | 7.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Income Tax [Line Items] | ||
Current income tax liability | $0 | |
Minimum estimated percentage of deferred tax unrealized | 50.00% | |
Federal | ||
Schedule Of Income Tax [Line Items] | ||
Net operating loss carryforwards | 358,600,000 | |
State | ||
Schedule Of Income Tax [Line Items] | ||
Net operating loss carryforwards | $7,200,000 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 17, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Number of common stock converted | 0.444 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock holders voting right | $1 | ||
Conversion of common stock conversion ratio | 1 | ||
Number of common stock issued | 0 | ||
Common stock, shares issued | 52,248,931 | 34,578,393 | |
Common stock, shares outstanding | 52,248,931 | 34,578,393 | |
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock holders voting right | $10 | ||
Number of common stock converted | 0 | 251,445 | |
Common stock, shares issued | 6,217,447 | 6,217,447 | |
Common stock, shares outstanding | 6,217,447 | 6,217,447 | |
Class C Common Stock | |||
Class of Stock [Line Items] | |||
Common stock holders voting right | $0 | ||
Common stock, shares issued | 0 | 0 | |
Common stock, shares outstanding | 0 | 0 |
ShareBased_Awards_Additional_I
Share-Based Awards - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
Feb. 17, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | Dec. 31, 2014 | Sep. 19, 2012 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected volatility | 53.00% | 56.00% | 53.00% | ||||
Risk-free interest rate | 1.10% | 1.24% | 1.37% | ||||
Weighted-average expected life | 3 years | 4 years 6 months 29 days | 4 years 6 months 29 days | ||||
Fair value of options granted | $47.57 | $36.93 | |||||
Recognized compensation cost | $23,007,000 | $7,132,000 | |||||
Sales and Marketing | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Recognized compensation cost | 4,209,000 | 1,303,000 | |||||
Technology and Development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Recognized compensation cost | 5,766,000 | 2,025,000 | |||||
General and Administrative | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Recognized compensation cost | 12,080,000 | 3,431,000 | |||||
February 2015 Restructuring Plan | Sales and Marketing | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Recognized compensation cost | 700,000 | ||||||
February 2015 Restructuring Plan | Technology and Development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Recognized compensation cost | 600,000 | ||||||
February 2015 Restructuring Plan | General and Administrative | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Recognized compensation cost | 5,000,000 | ||||||
Non Employee Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option awards of Class A common stock granted | 15,725 | ||||||
Expected volatility | 57.00% | ||||||
Risk-free interest rate | 1.01% | ||||||
Weighted-average expected life | 3 years 6 months | ||||||
Fair value of options granted | $47.70 | ||||||
Recognized compensation cost | 800,000 | 800,000 | |||||
Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Options vesting rights | One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the first anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable four years from the vesting commencement date. One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the two-year anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable five years from the vesting commencement date. One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the three-year anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable six years from the vesting commencement date. One-sixteenth of the total number of shares subject to the option awards will vest and become exercisable on the four-year anniversary of the vesting commencement date. An additional 1/192nd of the total number of shares subject to the option awards will vest and become exercisable monthly thereafter over the next three years so that this portion of the award will be vested and exercisable seven years from the vesting commencement date. | ||||||
Option awards of Class A common stock granted | 1,150,000 | ||||||
Fair value of option awards granted | 62,800,000 | ||||||
Expected dividend | 0 | ||||||
Expected volatility | 52.00% | ||||||
Risk-free interest rate | 1.76% | ||||||
Weighted-average expected life | 6 years 9 months 18 days | ||||||
Stock option of Class A common stock exercisable | 0 | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Total unrecognized compensation cost | 107,700,000 | ||||||
Restricted stock units of Class A common stock granted | 34,799 | 27,359 | 102,264 | ||||
Accelerated vesting period received by employee | 12 months | ||||||
Terms of restricted stock unit award | In the event of termination of service or employment by Zillow Group without cause or upon the resignation by such employee for good reason, the employee will receive an additional 12 monthsb accelerated vesting of the then outstanding restricted stock units, except that in the event of such a termination in connection with a change in control, the employee will receive an additional 50% accelerated vesting of the then outstanding restricted stock units. The employee will be entitled to receive one share of Zillow Groupbs Class A common stock for each then outstanding restricted stock unit that becomes vested. The grant date fair value of the restricted stock units | ||||||
Fair value of restricted shares issued | 3,000,000 | ||||||
Restricted Stock Units | Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Restricted stock unit, award vesting period | 3 years | ||||||
Restricted stock units of Class A common stock granted | 16,734 | ||||||
Vesting commencement date of restricted shares | 17-Feb-16 | ||||||
Restricted Stock Units | Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 12.50% | ||||||
Restricted stock unit, award vesting period | 3 years 6 months | ||||||
Restricted stock units of Class A common stock granted | 10,625 | ||||||
Vesting commencement date of restricted shares | 17-Aug-15 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost | 1,900,000 | ||||||
Restricted stock units of Class A common stock granted | 1,391 | 3,255 | |||||
Option Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost | 216,000,000 | ||||||
Stock Appreciation Rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost | $216,000,000 | ||||||
Trulia 2005 Stock Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Options vesting rights | Certain options vest monthly over two to four years | ||||||
Vesting percentage | 25.00% | ||||||
Trulia 2005 Stock Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock unit, award vesting period | 36 months | ||||||
Trulia 2005 Stock Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock unit, award vesting period | 12 months | ||||||
Trulia 2012 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Increase in number of shares of common stock available for issuance percentage | 4.00% | ||||||
Increase in number of shares of common stock available for issuance | 2,100,000 | ||||||
Exercise price per share fixed | 100.00% | ||||||
Expiration period | 10 years | ||||||
Common stock reserved for future issuance | 2,370,000 | ||||||
Increase in shares | 2,000,000 | ||||||
Additional number of shares reserved for future issuance | 1,000,000 | ||||||
2011 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Increase in number of shares of common stock available for issuance percentage | 3.50% | ||||||
Increase in number of shares of common stock available for issuance | 3,500,000 | ||||||
Total number of shares available for issuance under awards | 3,800,000 | ||||||
Exercise price per share fixed | 100.00% | ||||||
2011 Plan | Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option awards of Class A common stock granted | 650,000 | ||||||
2011 Plan | Option Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 7 years | ||||||
Share based compensation arrangement by share based payment, award minimum exercisable period | 3 months | ||||||
Share based compensation arrangement by share based payment, award maximum exercisable period | 12 months | ||||||
Options vesting rights | Options granted under the 2011 Plan are typically granted with seven-year terms and typically vest 25% after 12 months and ratably thereafter over the next 36 months, though certain options have been granted with longer terms and vesting schedules. | ||||||
Vesting percentage | 25.00% | ||||||
2011 Plan | Option Awards | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Restricted stock unit, award vesting period | 36 months | ||||||
2011 Plan | Option Awards | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock unit, award vesting period | 12 months |
Summary_of_Option_Award_and_St
Summary of Option Award and Stock Appreciation Rights Activity (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of Shares Subject to Existing Option Awards and Stock Appreciation Rights, Beginning Balance | 5,799,764 | 5,156,706 | |
Number of Shares Subject to Existing Option Awards and Stock Appreciation Rights, Assumed in connection with February 2015 acquisition of Trulia | 1,053,255 | ||
Weighted-Average Exercise Price Per Share, Assumed in connection with February 2015 acquisition of Trulia | $41.37 | ||
Number of Shares Subject to Existing Option Awards and Stock Appreciation Rights, Granted | 2,625,352 | 2,219,458 | |
Number of Shares Subject to Existing Option Awards and Stock Appreciation Rights, Exercised | -391,466 | -1,323,509 | |
Number of Shares Subject to Existing Option Awards and Stock Appreciation Rights, Forfeited or cancelled | -74,846 | -252,891 | |
Number of Shares Subject to Existing Option Awards and Stock Appreciation Rights, Ending Balance | 9,012,059 | 5,799,764 | 5,156,706 |
Weighted-Average Exercise Price Per Share, Beginning Balance | $54.37 | $27.09 | |
Number of Shares Subject to Existing Option Awards and Stock Appreciation Rights, Vested and exercisable, Ending balance | 2,621,756 | ||
Weighted-Average Exercise Price Per Share, Granted | $102.48 | $97.06 | |
Weighted-Average Exercise Price Per Share, Exercised | $23.38 | $18.08 | |
Weighted-Average Exercise Price Per Share, Forfeited or cancelled | $68.40 | $62.76 | |
Weighted-Average Exercise Price Per Share, Ending Balance | $68.10 | $54.37 | $27.09 |
Weighted-Average Exercise Price Per Share, Vested and exercisable | $30.99 | ||
Weighted-Average Remaining Contractual Life (Years) | 6 years 1 month 21 days | 5 years 3 months 26 days | 5 years 5 months 5 days |
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable | 3 years 10 months 2 days | ||
Aggregate Intrinsic Value | $312,889 | $311,040 | $283,009 |
Aggregate Intrinsic Value Vested, and exercisable | $182,024 |
Fair_Value_of_Option_Awards_Gr
Fair Value of Option Awards Granted, Excluding Non Employee Director Awards, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 17, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility | 53.00% | 56.00% | 53.00% |
Expected dividend yields | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.10% | 1.24% | 1.37% |
Weighted-average expected life | 3 years | 4 years 6 months 29 days | 4 years 6 months 29 days |
Weighted-average fair value of options granted | $47.57 | $36.93 |
Summary_of_Restricted_Stock_Aw
Summary of Restricted Stock Award Activity (Detail) (Restricted Stock, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock | ||
Shares of Restricted Stock | ||
Unvested outstanding, beginning balance | 86,835 | 230,127 |
Granted | 1,391 | 3,255 |
Vested | -10,910 | -146,547 |
Forfeited or cancelled | 0 | 0 |
Unvested outstanding, ending balance | 77,316 | 86,835 |
Weighted-Average Grant-Date Fair Value | ||
Unvested outstanding, beginning balance | $32.25 | $30.43 |
Granted | $121.35 | $80.91 |
Vested | $44.39 | $30.48 |
Forfeited or cancelled | $0 | $0 |
Unvested outstanding, ending balance | $32.14 | $32.25 |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units, USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 28, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units | |||
Restricted Stock Units | |||
Unvested outstanding, beginning balance | 125,602 | 121,123 | |
Assumed in connection with February 2015 acquisition of Trulia | 1,266,319 | ||
Granted | 27,359 | 34,799 | 102,264 |
Vested | -24,345 | -64,935 | |
Forfeited or cancelled | -30,253 | -32,850 | |
Unvested outstanding, ending balance | 1,372,122 | 125,602 | |
Weighted-Average Grant-Date Fair Value | |||
Unvested outstanding, beginning balance | $85.67 | $64.07 | |
Assumed in connection with February 2015 acquisition of Trulia | $109.14 | ||
Granted | $108.57 | $102.95 | |
Vested | $80.06 | $76.28 | |
Forfeited or cancelled | $95.48 | $72.40 | |
Unvested outstanding, ending balance | $107.77 | $85.67 |
Effects_of_Share_Based_Compens
Effects of Share Based Compensation in Statements of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | $23,007 | $7,132 |
Cost of Revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | 952 | 373 |
Sales and Marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | 4,209 | 1,303 |
Technology and Development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | 5,766 | 2,025 |
General and Administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | 12,080 | 3,431 |
Restructuring Costs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | $10,420 |
Antidilutive_Securities_Exclud
Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) (Class A Common Stock) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Class A common stock equivalents excluded from calculations of diluted net loss per share | 5,972 | 3,056 |
2.75% Convertible Senior Notes Due 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Class A common stock equivalents excluded from calculations of diluted net loss per share | 2,843 | |
Option Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Class A common stock equivalents excluded from calculations of diluted net loss per share | 2,746 | 2,959 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Class A common stock equivalents excluded from calculations of diluted net loss per share | 383 | 97 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Nov. 30, 2012 | Nov. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2010 | Dec. 31, 2014 | Nov. 30, 2014 | Mar. 01, 2011 | Jul. 31, 2014 | Feb. 28, 2014 | Apr. 30, 2014 | |
Patent | Patent | Patent | sqft | sqft | sqft | sqft | sqft | |||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Estimated restructuring charge | $25,065,000 | |||||||||||
Rent expense | 3,400,000 | 1,500,000 | ||||||||||
Non-cancelable purchase commitments | 117,499,000 | |||||||||||
Outstanding surety bonds | 2,000,000 | 0 | ||||||||||
Acquisition date | 17-Feb-15 | |||||||||||
Trulia | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Acquisition date | 17-Feb-15 | |||||||||||
Seattle, Washington | Operating Lease | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Rentable area of the premises | 68,000 | 201,000 | ||||||||||
Lease agreement term | 145 months | |||||||||||
San Francisco, California | Operating Lease | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Rentable area of the premises | 79,000 | 18,353 | 26,620 | |||||||||
Lease agreement term | 107 months | 72 months | ||||||||||
Estimated restructuring charge | 300,000 | |||||||||||
New York | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Outstanding letters of credit | 1,100,000 | |||||||||||
New York | Operating Lease | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Rentable area of the premises | 39,900 | |||||||||||
Lease agreement term | 124 months | |||||||||||
Denver, Colorado | Operating Lease | Trulia | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Rentable area of the premises | 65,000 | |||||||||||
Lease agreement term | 84 months | |||||||||||
Bellevue, Washington | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Outstanding letters of credit | 1,500,000 | |||||||||||
Bellevue, Washington | Operating Lease | Trulia | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Rentable area of the premises | 72,000 | |||||||||||
Lease agreement term | 84 months | |||||||||||
Irvine, California | Operating Lease | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Rentable area of the premises | 60,000 | |||||||||||
Lease agreement term | 120 months | |||||||||||
San Francisco [Member] | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Outstanding letters of credit | 3,800,000 | |||||||||||
Seattle | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Outstanding letters of credit | 1,800,000 | |||||||||||
Denver | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Outstanding letters of credit | $1,100,000 | |||||||||||
Smarter Agent | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Number of patents infringed | 3 | |||||||||||
Number of patents-in-suit | 3 | |||||||||||
Smarter Agent | Diverse Solutions | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Acquisition date | 31-Oct-11 | |||||||||||
Smarter Agent | StreetEasy, Inc. | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Acquisition date | 26-Aug-13 | |||||||||||
Smarter Agent | HotPads, Inc. | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Acquisition date | 14-Dec-12 | |||||||||||
Lending Tree | ||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||||||||
Number of patents infringed | 2 | |||||||||||
Allegations and asserted defenses | In March 2014, a federal jury found that Zillow does not infringe the patents and that the patents asserted by LendingTree are invalid. |
Future_Minimum_Payments_for_Al
Future Minimum Payments for All Operating Leases (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2015 | $13,046 |
2016 | 20,056 |
2017 | 24,033 |
2018 | 27,206 |
2019 | 23,734 |
All future years | 103,393 |
Total future minimum lease payments | $211,468 |
Purchase_Commitments_for_Conte
Purchase Commitments for Content Related to Mobile Applications and Websites (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2015 | $23,728 |
2016 | 28,570 |
2017 | 34,701 |
2018 | 14,000 |
2019 | 6,000 |
All future years | 10,500 |
Total future purchase commitments | $117,499 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 17, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Employee | Employee | ||
Restructuring Cost and Reserve [Line Items] | |||
Workforce reduction of employees | 350 | ||
Restructuring charge | $25,100,000 | ||
Reduction of market leader head count | 80 | ||
Restructuring reserves | 9,901,000 | 2,761,000 | |
Contract Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 5,500,000 | ||
Restructuring reserves | 3,476,000 | 2,544,000 | |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 9,100,000 | ||
Noncash Expenses Relating To Employee Benefit | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 10,400,000 | ||
Leasehold improvements | Contract Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs for contract termination costs | 4,000,000 | ||
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional restructuring costs | 5,000,000 | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional restructuring costs | $6,500,000 |
Summary_of_Accrued_Restructuri
Summary of Accrued Restructuring Costs (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserves assumed in connection with February 2015 acquisition of Trulia | $2,761 |
Restructuring costs | 25,065 |
Cash payments | -3,374 |
Change in estimate | 70 |
Accrued restructuring costs as of March 31, 2015 | 9,901 |
One-Time Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserves assumed in connection with February 2015 acquisition of Trulia | 81 |
Restructuring costs | 9,015 |
Cash payments | -2,612 |
Change in estimate | -67 |
Accrued restructuring costs as of March 31, 2015 | 6,417 |
Contract Termination Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserves assumed in connection with February 2015 acquisition of Trulia | 2,544 |
Restructuring costs | 1,319 |
Cash payments | -387 |
Accrued restructuring costs as of March 31, 2015 | 3,476 |
Other Associated Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserves assumed in connection with February 2015 acquisition of Trulia | 136 |
Restructuring costs | 110 |
Cash payments | -375 |
Change in estimate | 137 |
Accrued restructuring costs as of March 31, 2015 | $8 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2015 |
Executive Officer | |
Related Party Transaction [Line Items] | |
Filing fees | $0.30 |
Executive Vice President [Member] | |
Related Party Transaction [Line Items] | |
Filing fees | $0.10 |
SelfInsurance_Additional_Infor
Self-Insurance - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Insurance [Abstract] | |
Maximum amount of individual claim under self insurance plan | $100,000 |
Percentage of cumulative medical claim under self insurance plan | 125.00% |
Liability for self-insured claims included in accrued compensation and benefits | $700,000 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||
Company's contribution based on employee contribution | 1.50% | |
Company's expense related to its defined contribution 401(k) retirement plans | $800,000 | $0 |
Trulia | ||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||
Company's contribution based on employee contribution | 4.00% |
Segment_Information_and_Revenu2
Segment Information and Revenue - Additional Information (Detail) | 3 Months Ended |
Mar. 24, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Revenue_Categories_Detail
Revenue Categories (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Total Marketplace revenue | $108,927 | $53,724 |
Display revenue | 18,346 | 12,519 |
Total revenue | 127,273 | 66,243 |
Real Estate Revenue | ||
Revenues: | ||
Total Marketplace revenue | 93,312 | 46,595 |
Mortgages Revenue | ||
Revenues: | ||
Total Marketplace revenue | 9,558 | 7,129 |
Market Leader Revenue | ||
Revenues: | ||
Total Marketplace revenue | $6,057 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Restricted Stock Units, USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 |
Subsequent Event [Line Items] | ||||
Granted | 27,359 | 34,799 | 102,264 | |
Vesting percentage | 50.00% | |||
Trulia | Retention Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Options vesting rights | 12.5% of the retention restricted stock units vest approximately 6 months after the vesting commencement date of February 18, 2015, and the remaining retention restricted stock units vest quarterly thereafter for approximately 3.5 years, subject to the recipient's continued full-time employment or service to Zillow Group. | |||
Vesting commencement date of restricted shares | 18-Feb-15 | |||
Subsequent Events | Trulia | Retention Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Granted | 105,358 | |||
Vesting percentage | 12.50% | |||
Total grant date fair value | $10.20 | |||
Subsequent Events | Trulia | Retention Plan [Member] | Minimum | ||||
Subsequent Event [Line Items] | ||||
Vesting period | 6 months | |||
Subsequent Events | Trulia | Retention Plan [Member] | Maximum | ||||
Subsequent Event [Line Items] | ||||
Vesting period | 3 years 6 months |