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New York

Zillow just slashed its revenue outlook

Shares of StreetEasy parent down as much as 9% in early trading

Spencer Rascoff (credit: CBS)
Spencer Rascoff (credit: CBS)

Zillow is getting crushed.

Shares of the online real estate database company opened down as much as 9 percent in early trading after it lowered its revenue guidance for the year on a call with investors. Near 10:10 am ET, shares had recovered much of its losses and were down about 3 percent. Trading in shares was halted during the company’s update call. CEO Spencer Rascoff said the company expects revenue in 2015 to total $690 million, below the $750 million analysts had been expecting according to Yahoo Finance.

The company also said the lowered earnings guidance relates to its $3.5 billion acquisition of Trulia.

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“The work we are doing this year lays the foundation for an incredibly bright 2016 and 2017,” Rascoff said. “However, 2015 is a transition year and we’re trending a couple quarters behind where we’d like to be, due to the protracted FTC approval process which only ended two months ago … These pro forma revenue and EBITDA estimates assume the acquisition of Trulia would have closed at the beginning of 2015.”

The company expects EBITDA in 2015 to come in at around $80-$85 million.

Shares are over 12 percent lower year-to-date.

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