Redfin and Zillow are close neighbors in Seattle, but they’ve not always gotten along.
The two companies have vastly different cultures, management teams and business models, though both share a similar mission of wanting to transform the age-old real estate business. And now they hold something else in common: They are both publicly traded on Nasdaq.
The fact that Redfin and Zillow grew up in Seattle is more of a coincidence, but it’s been fascinating to watch them emerge as powerful forces in real estate.
Ironically, as Redfin now begins trading on Wall Street — shares priced last night at $15 per share and opened on Nasdaq Friday morning at $19.56 — it will look to draw deeper comparisons to companies like Zillow, in order to command a higher valuation. That appears to have occurred in early trading, with Redfin commanding a $1.2 billion valuation after pricing shares above the anticipated range.
Here’s a look at Redfin and Zillow at the time of their IPOs. Which real estate company would you want to own shares of?
IPO date: July 27, 2017
Shares offered: 9,231,000
Offering price: $15
Opening price: $19.56
First day closing price: TBD
Valuation: $1.2 billion (At time of pricing IPO)
Cash raised in IPO: $138 million
Employees at time of IPO filing: 2,193
Monthly unique visitors at time of IPO: 20 million
Q1 2017 revenue: $59.8 million
Q1 2017 net loss: $28 million
First paragraph from S-1 IPO filing: Redfin is a technology-powered residential real estate brokerage. We represent people buying and selling homes in over 80 markets throughout the United States. Our mission is to redefine real estate in the consumer’s favor.
IPO date: July 19, 2011
Shares offered: 3,462,000
Offering price: $20 per share
Opening price: $60 per share
First day closing price: $35.77, up 79 percent
Valuation: $962 million (at close following IPO)
Cash raised in IPO: $69 million
Employees at time of IPO filing: 275
Monthly unique visitors at time of IPO: 22 million
Q1 2011 revenue: $11.2 million
Q1 2011 net loss: $826,000
First paragraph from S-1 IPO filing: Zillow is the leading real estate information marketplace. We provide vital information about homes, real estate listings and mortgages through our website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. We are transforming the way people make home-related decisions. Zillow provides consumers and real estate professionals an “edge in real estate.”
Here’s a comparison of the two companies’ financials as compiled by Seattle Bubble: