Calgary’s Zaio (TSXV:ZAO) yesterday announced it generated record revenue last month, stoking hope in the company’s faithful that it can put a dent in the business of its much larger American competitor, Zillow.
Shares of the Zaio yesterday responded with an uptick on heavier-than-usual volume.
For the month of February, Zaio generated (U.S.) $3.5-million in pro forma, or unaudited, revenue. The company says its Valuation Vision and Axis products are winning business because they are more detailed and customized than competitive offerings.
“Record February pro forma revenues represent continued growth on top of our strong performance in January,” said CEO David King. “We saw clients across all of our target market sectors remain active, demand from mortgage origination and capital market valuations indicate continued solid market activity.”
Zaio’s clients include banks, investors and appraisers such as Black Rock, US Bank, Fannie Mae and Quicken. The Company sells appraisal forms at prices ranging from $30 to $800. It processes about 650 pro forma reports everyday.
At a conference in Toronto last October, King said the real estate valuation market, which the company estimates to be worth $6-billion, isn’t being served properly by its current incumbent.
“The problems with services like Zillow is they just don’t work,” he said. “As humans we know that there is a good side of the street and a bad side, but computer models don’t”.
Zillow is an online real estate database that was founded in 2005. The website draws more than 86-million unique visitors each month. In February, the company reported record fourth quarter revenue of (U.S.) $92.3 million, up 58% the previous year’s Q4.
At press time, shares of Zaio were even at $0.27.