Trulia disappointed Wall Street today as it heads toward a tie-up with Zillow, its closest competitor in the real estate search space.
The company announced that it brought in $67.1 million in revenue, up 67 percent from what it made in the year-ago quarter. That growth missed expectations set by Wall Street analysts who expected that the company would bring in almost $70 million in revenue.
Trulia CFO Sean Aggarwal said on a conference call with analysts that the lower-than-expected revenue stemmed from a slowdown in the company’s mortgage business. Mortgage companies that typically advertise on Trulia haven’t been spending as much as they expected because of uncertainty in that market, he said.
Trulia also reported a quarterly loss of 8 cents per share, which was in line with what analysts expected.
The company saw a total of 55 million average monthly unique visitors to all of its properties, including Market Leader. Of those visitors, 30 million accessed Trulia’s properties using mobile devices, which is the first time in the company’s history that mobile unique visitors were a majority of its user base.
All of these financial results come as the company is in the process of merging with Zillow. The Seattle-based home search titan announced in July that it plans to pay $3.5 billion to acquire Trulia, which is one of its major rivals. Right now, the acquisition is being reviewed by regulators, and is pending investor approval. The deal is expected to close in 2015.
Trulia’s stock price has dropped more than 7 percent in after hours trading as of this report. The company’s financial results are embedded below.
