Why Choose Trulia
Trulia will undoubtedly be a volatile stock going forward, with a P/S ratio currently nearing 16. However, the company is guided by Spencer Rascoff, a young and innovative leader, who oversees one of the top company cultures in the country. Trulia's focus on building a service that attracts a wider consumer audience has proven to be an effective strategy, and the company has done a great job translating ever-expanding customer visits into consistent sales growth and cash flow production.
As Rascoff explained in the fourth quarter conference call:
55% of new sales bookings in the fourth quarter went to existing agents buying more impressions across mobile and Web, which is higher than recent trends and signifies strong underlying demand.
In other words, Trulia's strategy is working. This isn't to say that Zillow or other players cannot succeed as well, but Trulia hasn't been able to prove it can actually make money or generate cash with its strategy. Trulia has a proven strategy that is already leading to solid financial performance, which gives me confidence that the company can continue to outpace the market.