The company reported a net loss, caused in part by a large lawsuit settlement with a rival in the real-estate website business.
Seattle-based Zillow Group on Tuesday said it expects to surpass $1 billion in annual revenue for the first time in 2017 but still isn’t close to turning a profit.
The real-estate information company, whose websites also include Trulia, HotPads and Naked Apartments, reported a record $227.6 million in revenue in the fourth quarter of 2016, up 34 percent from a year prior and slightly above analysts’ expectations. It finished the year with $846.6 million in revenue, driven largely by its premier agent program.
Still, Zillow reported a net loss of $220.4 million, including a $130 million settlement in June over a lawsuit alleging that two executives it hired from rival Move stole trade secrets. That’s up from a $148.9 million loss in 2015.
In after-hours trading Zillow shares dipped 6 percent in the hour following the earnings announcement, from $36.85 to $34.65.
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The company said traffic to Zillow Group sites topped 140 million average monthly unique users in the most recent quarter, up 13 percent from a year prior but down from the peak of 171 million in May, when home buying is most prevalent.