Zillow Dives After Disclosing SEC Inquiry
Oct 2nd 2012 4:31PM
Real estate web site Zillow Inc. (NASDAQ: Z) revealed today that it received a letter from the SEC asking the company to answer questions on the way it reported revenue. In particular, the SEC wants to know why Zillow did not report its percentage increase in the average price paid for its Premier Agent subscription service in the company's most recent financial report.
Bloomberg reports that the company responded by saying it would revise its disclosures in it next quarterly report. None of the issues raised by the SEC will force Zillow to restate earnings.
Another issue the SEC raised is why total marketplace revenue growth appears to be declining while Premier Agent subscriptions appear to be on the rise. Zillow responded that it would disclose the average monthly Premier Agent revenue per subscriber in its next financial report.
Zillow was also asked to provide to the SEC the number of unique visitors to its different web site by domain name.
Zillow shares were down 4.2% today, and closed at $39.11 in a 52-week range of $21.22 to $46.86. The shares are inactive in after-hours trading today.
Filed under: 24/7 Wall St. Wire, Housing, Internet, Regulation Tagged: Z