ZipRealty Profit Rises Fivefold

Online real estate brokerage ZipRealty Inc. on Thursday reported a fivefold jump in fourth-quarter profit as it doubled the number of sales agents and closed more property transactions during the period.

The Emeryville, Calif., company reported net income of $888,000, or 1 cent a share, for the period ended Dec. 31, compared with $173,000, or zero cents a share, a year earlier.

Revenue nearly doubled, to $17.5 million.

ZipRealty had its initial public offering in November and raised $63.3 million.

As of Dec. 31, the company had about $83.5 million in cash and no debt.

Its stock has risen 36% since the IPO. Shares closed Thursday at $17.68, up 82 cents or 4.9%, on Nasdaq. The company reported results after the markets closed.

ZipRealty is a full-service realty that largely operates via the Internet. It operates in 12 U.S. markets, including Southern and Northern California.

In the fourth quarter, ZipRealty closed 58% more transactions, or 8,500, compared with a year earlier. The company more than doubled its agent force to 914 and Thursday announced plans to begin operations in Las Vegas in the spring.

ZipRealty said it expected first-quarter earnings per share to be break even at 2 cents, and forecast full-year earnings per share of 36 cents to 40 cents.