Zillow Group, Inc. announced that on August 27, 2019, the compensation committee of its Board of Directors granted equity awards to purchase an aggregate of 535,011 shares of its Class C stock to compensate 286 new employees under the company’s 2019 Equity Inducement Plan.
Shares authorized by the compensation committee under Zillow Group’s 2019 Equity Inducement Plan may only be granted to newly hired employees (or employees following a bona period of non-employment) as an inducement material to such employees entering into employment with Zillow Group, pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules.
The inducement awards consist of restricted stock units, or RSUs, for an aggregate of 377,916 shares of Class C stock to 251 new employees and stock options to purchase an aggregate of 157,095 shares of Class C stock to 108 new employees. The strike price of the stock options is $32.78, which was the closing stock price on August 27, 2019.
Subject to continued employment with Zillow Group, the RSUs and stock options will vest over a four-year period, with 25% vesting on the first anniversary of the vesting commencement date, which was the employee’s first day of employment, and the remainder vesting in equal quarterly installments over the three years thereafter. The options have a ten-year term.
Earlier this summer, the company reported 84 percent year-over-year growth in total consolidated quarterly revenue, driven by demand for Zillow Offers as the company continues to accelerate growth into new markets.
“Our second quarter results reflect the momentum we are seeing across our businesses,” said Rich Barton, co-founder and CEO of Zillow Group, Inc.
“The demand signal for Zillow Offers is incredibly impressive as seen in the annualized revenue run rate going from zero to $1 billion in just a year1. Our Premier Agent business is performing well, and our partnerships with the highest performing and most client-focused agents position us well to deliver a truly seamless transaction experience for home buyers and sellers.
“We’re in the early stages of a bold expansion of our company that opens up exciting opportunities for our customers, partners, shareholders and employees. We are uniquely advantaged by our brand awareness, audience size, technology, data science, industry partnerships, and operational know-how and are well on our way to rewire real estate.”
Total Q2 consolidated revenue grew 84 percent year over year to $599.6 million, driven primarily by significant growth in the Homes segment.
More than 69,000 homeowners requested an offer from Zillow to purchase their home during Q2, up 94 percent sequentially from Q1.
The company added seven Zillow Offers markets since the end of Q1: Dallas-Fort Worth; Minneapolis; Orlando; Portland, Ore.; Nashville, Tenn.; and Colorado Springs and Fort Collins, Colo.
Zillow also expanded testing of the Flex monetization model, which allows Premier Agents to pay a success fee only when they close a transaction with a consumer lead, in lieu of paying for advertising up front.
Traffic to Zillow Group’s mobile apps and websites accelerated with more than 194 million average monthly unique users in Q2, an increase of four percent year over year, while visits reached a new high of nearly 2.2 billion, up 14 percent year over year.