The online real estate brokerage firm ZipRealty Inc., has announced its results for the third quarter, reducing operating losses to less than $1 million despite its revenue falling by 18% since last year.
The results prove that the firm is on track to achieving its target of cutting operating losses altogether by the end of the year, according to a report in Inman News.
ZipRealty Inc., which is based in Emeryville, California, reported in its third quarter results a net revenue of $23.3 million, which is 27% less than what was reported one year ago. However, operating costs were recorded at $24.2 million, resulting in a net loss of $845,000 for the third quarter. On the bright side though, the company’s average revenue per transaction grew by almost 12%, averaging $5,943.
The company closed 12 out of its 35 offices in the US at the beginning of the year, stating that it intended to eliminate a $20 million deficit in operating costs by 2012. As part of this drive, they also expanded their Powered by Zip referral program while consigning buyer rebates to the scrapheap.
ZipRealty Inc., also slashed the number of agents on its staff by over 1,000, from 3,305 last year to just 2,043 now. This decision has helped to slash third quarter operating costs by 28% from the same period last year, to just $24.2 million.
CEO Lanny Baker released the following statement:
"Our primary operating objective for 2011 has been to move ZipRealty to a cash flow-positive position while beginning to amplify the company's central strengths in marketing and technology. Adjusted EBITDA for the third quarter is a clear indication of our progress toward near-term financial goals, and a series of important product and marketing launches in the third quarter demonstrate our commitment to extending ZipRealty's core advantages."