Trulia Inc (NYSE:TRLA)’s truly amazing performance

Posted by George Brook August 2, 2013 0 Comment 1399 views

The U.S housing market started drowning in 2009 and the best of real estate companies were dragged underwater with it. Trulia Inc (NYSE:TRLA) is different in that it is one of the numerous upstart real-estate sites that have mushroomed and flourished since the big housing bust.

The company is playing to the gallery so to say. It is taking complete advantage of the increase in internet business. It connects real estate agents with home buyers via its marketplace websites and business has been on the upward swing. Its marketplace revenue is made up of premium subscriptions for various real-estate agents. In the Q1, 70% of TRLA’s revenue came from these sources. In addition, in the most recent quarter, y-o-y revenue was up 100%.

How do agents benefit?

Agents are able to register on the website for free. They can create a profile and also contribute content. If they choose to get a charged premium-subscription, they have the functionality to promote all their listings in Trulia Inc (NYSE:TRLA)’s search results. They are also able to target mobile users. All of this results in better and a higher number of leads.

The rest of the company’s revenue comes from ads which are traffic-driven. In the Q1, there was a 91% rise in ad sales. There was a 51% boost in users and the company had 31.4M unique monthly-users. One major feature that sets TRLA apart from the rest of the pack like Redfin and Zillow is its user generated content. At the moment, the company has the largest database of user generated content that is related to real-estate.

This is very helpful in attracting a larger number of “buy-ready” customers and also generates higher traffic. Irrespective of the reason, the fact is that the company is booming. Though it is small in comparison to conventional real-estate players, it definitely has potential.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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