Zillow Group has reported an 18% increase in revenue, reaching $708 million, amid a stagnant housing market. The company's CEO, Jeremy Wacksman, highlighted the impact of artificial intelligence on operational efficiency, stating that engineers are now producing 40% more code on average, expediting feature launches.
In its first-quarter shareholder letter, Zillow revealed advancements in its AI capabilities, including a newly launched AI-powered search mode that is being tested with approximately 5% of its user base, which could enhance engagement metrics. The company also announced improvements to its CRM tool, Follow Up Boss, which has seen a more than 70% increase in monthly active users since its acquisition.
Additionally, Zillow introduced an AI leasing assistant, known as AI Assist, designed to streamline leasing processes for property managers. Despite competition from broader AI platforms, Wacksman asserted that Zillow’s proprietary data and comprehensive tools provide a competitive edge. The company has made job cuts in the past, including around 200 positions in January, attributing these decisions to performance issues rather than AI-related changes.