ZipRealty : ZipRealty Enters 2013 With Healthy Momentum
Company expects a strong fourth quarter performance and positive Adjusted
EBITDA for full year 2012
EMERYVILLE, Calif., Jan. 7, 2013 - ZipRealty, Inc. (http://www.ziprealty.com)
(NASDAQ: ZIPR),the most prominent online technology-enabled residential real
estatebrokerage company, today announced that, based upon preliminary
information, it expects to achieve positive Adjusted EBITDA for the full year
2012, marking a financial turning point for the company.
"We expect to fulfill our commitment to generate positive Adjusted EBITDA in
2012, while strengthening ZipRealty's core assets and positioning the company
for strong growth in the years to come," said Lanny Baker, Chief Executive
Officer and President. "Our redesigned website and mobile apps are winning
rave reviews, and major upgrades to our agent platform are generating similar
amounts of excitement. As this new phase of product innovation starts to
differentiate ZipRealty, we are extremely pleased to have achieved year to
year growth in net transaction revenue in the fourth quarter on a same market
basis, reversing negative comparisons in prior quarters."
Summary of Preliminary 2012 Financial Results (Unaudited):
*Full year net revenues are expected to be in the range of $73 million to
*Full year Adjusted EBITDA is expected to be positive.
*Fourth quarter net transaction revenue is expected to be approximately 2%
greater than the prior year's quarter on a same market basis.
"Looking forward, ZipRealty's objective is to empower a growing movement of
real estate agents who seek to serve today's home buyers and sellers
differently," added Mr. Baker. "This new service formula starts with accurate
and comprehensive information, wrapped in effective and easy-to-use
technology, and connects the consumer and their agent like never before. We
know from experience that these are the critical elements for everyone in the
real estate industry, and we are making important investments to improve upon
our own considerable strengths in these areas."
"First, we are proud of the accuracy and comprehensiveness of ZipRealty's real
estate information, and we've started to expand our coverage footprint to
serve consumers in more cities and new neighborhoods. We are also adding new
depth to our site, with a particular focus on relevant and authoritative
information that will assist home sellers," said Mr. Baker.
"ZipRealty also continues to enhance its industry-leading technology, website
and apps. The next version of our proprietary, intelligent customer service
platform, ZAP, went live in December. This version, which was developed and
tested in collaboration with ZipRealty agents over an 18-month period and the
most significant upgrade in five years, improves on the user interface, client
management features, and client-matching algorithm that define this technology
platform," Mr. Baker added.
"Finally, the ZipRealty team continues to grow as we attract more of the
highest-caliber talent," he noted. "Real estate industry veteran and
recruiting expert, Adam Lerman, has joined the company as National Recruiting
Director and will lead recruiting strategy and a staff of 23 local recruiters.
ZipRealty's local agents currently garner the highest consumer satisfaction
ratings in the company's history, and we are excited to begin expanding our
team. Additionally, we have made a number of important recent hires in product
management, data engineering, and public relations, and we are in the process
of building out the Powered by Zip team to support our partners and continue
the expansion of that business line."
2013 Citi Internet, Media and Telecommunications Conference
Mr. Baker and ZipRealty's Chief Financial Officer Eric Mersch will participate
as speakers in the 2013 Citi Internet, Media and Telecommunications Conference
on Jan. 8 in Las Vegas. The conference will be held at the Bellagio Hotel and
marks the 23^rd annual conference hosted by Citi Equities, Citigroup's
Institutional Client Group. ZipRealty's presentation is scheduled to begin at
3:45 p.m. PST. The live presentation will be audio-webcast, with accompanying
slides, during the conference. This webcast will be available through April 9.
Please use the following link to access the presentation:
ZipRealty expects to announce in late January the date and details of the
company's Conference Call to discuss its fourth quarter and full year 2012
results in detail.
About ZipRealty, Inc.
ZipRealty is a leading national real estate brokerage and provider of
proprietary technology and comprehensive online marketing tools for the
residential real estate brokerage industry. For home buyers and sellers who
increasingly want control, choice and a seamless, customized service,
ZipRealty offers Internet-enabled, state-of-the-art technology and complete
access to accurate, timely information via their website and mobile
applications, which real estate professionals can combine with their own local
knowledge and personal expertise to offer an exceptional start-to-finish
client experience. For real estate professionals who seek more productive ways
to conduct business, ZipRealty provides technology and online marketing tools
to enhance their online sales channel, including lead generation, conversion
and service of their clients. ZipRealty's technology and online marketing
products serve its full-service, owned-and-operated residential real estate
brokerage business in 19 markets nationwide, as well as its Powered by Zip
network of leading third-party local brokerages in 12 markets.
Note on Financial Presentation
The financial figures for the full year and fourth quarter 2012 presented and
referred to in this announcement are preliminary as the company has not
completed the full year 2012 financial close. Further, all financial results
will be subject to audit prior to filing with the Securities and Exchange
Commission and, therefore, may change significantly from those presented in
This release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the federal securities laws, including, without
limitation, statements regarding the company's achievement of positive
Adjusted EBITDA in 2012, the information for full year and fourth quarter 2012
under "Summary of Preliminary 2012 Financial Results (Unaudited)," and the
company's positioning for strong growth and improvement on its strengths in
future years. The forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected, including but not limited to potential adjustments to the full year
and fourth quarter 2012 financial information as the company completes the
full year 2012 financial close and its results are audited, volatility in the
real estate market, macroeconomic factors such as unemployment, tight credit,
inventory levels, foreclosure processing delays and the impact of government
programs, recent changes to the company's business model and operations that
may not realize intended results, and other risk factors set forth in the
company's Form 10-K for the year ended December 31, 2011.The forward-looking
statements included in this release are made as of today's date and, except as
otherwise required by law, ZipRealty does not intend to update these
forward-looking statements to reflect events or circumstances after the date
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: ZipRealty via Thomson Reuters ONE
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