Zillow Trading Ad Spending for Profitability: CEO

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Nov. 11 (Bloomberg) -- Spencer Rascoff, CEO at Zillow discusses why internet companies are unlike the bubble of 1999 and offers insight into his company’s growth plan. He speaks on Bloomberg Television’s’ “Bloomberg Surveillance.”

Effervescence out there.

Is it like 1999? forget about twitter.

Is there anything else out there that is frothy?

Wax the late stays -- late stage venture capital market is frothy on the west coast, but another thing that is different is the size of the internet.

A lot of these business models that seemed crazy 10 years or 13 years ago, now they can actually work.

I know you recently came out with earnings.

Interesting parallels, right?

You are in what you call in investment mode, but investors are in love with it.

Reminds me of a recently announced ipo.

How about a moment of silence and honor?

You brought money down to the net income line.

How charming.

Quaint, isn't it?

We and other companies like twitter see a very large market size in front of us and therefore choose to invest.

In the court -- in the case of zillow what is depressing profitability is being spent on advertising.

And it is working, growing the audi instrument of the, we are separating from competitors, one of the biggest real estate sites in the u.s.. we are happy to make that trade- off.

But you are cash flow positive, right?

We are.

Where does the revenue come from?

Advertising or the aging business?

We have almost 50,000 real estate agents that spend $50,000 per year advertising with us in local markets.

It we are the largest real estate site in every city in the country and local real estate agents flock to advertise.

Text related companies are not so great.

It can be good on the first day of trading and outperform those that make money, but one year or three years down the line, according to research, things are not looking so good.

What is on your agenda for the next two years?

Driving the business right now is mobile.

60% or 70% of usage is on a mobile device.

That is where the growth is coming from.

To be clear, very quickly, you are not extrapolating onto 2016 even stay.

Thank you.

-- 2016? you can stay.

Thank you.

Wax here is a number for you,

This text has been automatically generated. It may not be 100% accurate.

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