Move, Inc. Reports First Quarter 2013 Financial Results

           Move, Inc. Reports First Quarter 2013 Financial Results

Q1 revenue $54.2 million — growth of 14% year-over-year, highest growth in six
years

Mobile app page views up over 100% year-over-year

Launches "Find-it First" marketing campaign

PR Newswire

SAN JOSE, Calif., May 2, 2013

SAN JOSE, Calif., May 2, 2013 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the
leader in online real estate, today reported financial results for the first
quarter ended March 31, 2013.

First Quarter 2013 Highlights

  oQ1 Revenue increased 14% to $54.2 million, the highest quarterly
    year-over-year growth in over six years
  oQ1 2013 represented the sixth consecutive quarter of sequential revenue
    growth
  oConsumer Advertising revenue increased 7% year-over-year to $42.1 million
  oSoftware and Services revenue increased 46% year-over-year to $12.1
    million
  oNon-GAAP Adjusted EBITDA of $5.9 million, grew by $0.5 million or 9%
    year-over-year
  oAverage monthly unique users of Move's web and mobile sites grew 10%
    year-over-year to more than 28 million in the first quarter
  oMobile app page views grew significantly, up over 100% year-over-year in
    Q1, while page views on the web also rose by 3% year-over-year. Mobile
    app user engagement is 7x higher than the still-strong engagement on
    Move's web-based offerings
  oRealtor.com delivered 30% more leads in Q1, driven by nearly 100% increase
    in leads from mobile applications year-over-year

"We are very pleased that our Q1 results reflect both increasing strength in
the real estate market and our team's efforts to position Move for growth,"
said Steve Berkowitz, chief executive officer of Move. "Move is the only
company in our space with products and services that satisfy the entire value
chain of this real estate business, from content to connection to close."

First Quarter 2013 Financial Results
Revenue for the quarter was $54.2 million, an increase of $6.5 million, or
14%, from $47.7 million in the first quarter of 2012. Revenue from Consumer
Advertising products increased 7% to $42.1 million in the first quarter of
2013 compared to the same period in 2012. Revenue from Software and Services
products increased 46% to $12.1 million compared to the first quarter of 2012.

Net loss applicable to common stockholders was $0.1 million, or $0.00 per
diluted share, compared to a net loss of $0.1 million, or $0.00 per diluted
share, in the first quarter of 2012. Non-GAAP Earnings Per Share ("Adjusted
Earnings Per Share") was $0.09 per diluted share in the first quarter of 2013,
compared to $0.07 per diluted share in the first quarter of 2012. Non-GAAP
Adjusted EBITDA ("Adjusted EBITDA") was $5.9 million, an increase of $0.5
million, or 9%, from $5.4 million in the first quarter of 2012. As a
percentage of revenue, Adjusted EBITDA was 11% of revenue in the first
quarters of 2013 and 2012. Move has reported Adjusted EBITDA because
management uses it to monitor and assess the Company's performance and
believes it is helpful to investors in understanding the Company's business.

Cash provided by operating activities was $3.5 million and $4.1 million for
the quarters ended March 31, 2013 and 2012, respectively.

Operating and Business Results

  oAverage monthly unique users grew 10% to more than 28 million in the first
    quarter of 2013, compared to 25.6 million for the same period in 2012.
    Mobile app users grew over 60% in Q1 and accounted for nearly 50% of all
    listing detail pages viewed in the quarter.
  oMove recently launched the first search by school functionality in the
    industry, enabling homebuyers to target listings based on school and
    district boundaries on the realtor.com^® mobile application. The app also
    boasts an array of updated capabilities, including new, intuitive
    navigation elements and an enhanced map experience.
  oIn Q1, realtor.com^® launched a new logo, tagline, and an entirely
    different look and feel across all the realtor.com^® platforms including
    its website and mobile devices.
  oTo support this brand refresh, realtor.com^® began its first comprehensive
    marketing campaign, "Find it First," highlighting the Company's commitment
    and dedication to helping consumers find the home of their dreams and
    facilitating authentic connections between consumers and REALTORS^®.
  oToday,Moveannounced the acquisition of certain assets of ABC Holdings,
    LLC, which previously operated Doorsteps. Doorsteps helps consumers
    navigate the home buying process very early in the journey. Doorsteps
    promotes deep collaboration between real estate consumers and
    professionals, enabling consumers to assemble a complete dossier of
    information they will need and use as they step through buying a home for
    the first time. 
  oIn September of 2012, Move acquired TigerLead, a premier lead generation
    and lead management system for real estate professionals. In the first
    quarter of 2013, TigerLead outperformed expectations by adding more new
    customers than in any prior quarter and achieved higher growth rates than
    planned. 

Share Repurchase Program
Move also announced that its Board of Directors has authorized a two year, $20
million stock repurchase program. Under the stock repurchase program, Move
may purchase stock in the open market and privately negotiated transactions,
at times and in such amounts as management deems appropriate. Move is not
obligated to repurchase any specific number of shares under the program, which
may be limited or terminated at any time without prior notice.

Business Outlook
For the quarter ending June 30, 2013, Move expects revenue of approximately
$56.0–$56.5 million and expects to report Adjusted EBITDA of approximately
$6.5 million.

For the year ending December 31, 2013, Move expects improved revenue of
approximately $224.0-$226.0 million and expects to report Adjusted EBITDA
margin of approximately 14%.

Conference Call
As previously announced, Move will host a conference call, which will be
broadcast live over the Internet today, Thursday, May 2, 2013. To access the
call, please dial (877) 312-5848, or outside the U.S. (253) 237-1155, five
minutes prior to 2:00 p.m. Pacific Daylight Time. A live webcast of the call
will also be available at http://investor.move.com under the Events &
Presentations menu.

An audio replay will be available between 5:00 p.m. Pacific Daylight Time May
2, 2013, and 8:59 p.m. Pacific Daylight Time May 6, 2013, (855) 859-2056 or
(404) 537-3406, with Conference ID 33638883. A replay of the call will also
be available at http://investor.move.com.

Use of Non-GAAP Financial Measures—Adjusted EBITDA and Adjusted Earnings Per
Share
To supplement its consolidated financial statements presented in accordance
with generally accepted accounting principles in the United States ("GAAP"),
Move uses a non-GAAP measure of net income excluding net interest income,
income tax expense and certain other noncash and nonrecurring items,
principally depreciation, amortization and stock-based compensation and
charges, which is referred to as Adjusted EBITDA. Move also uses a non-GAAP
measure of net income applicable to common shareholders excluding convertible
preferred stock dividends and related accretion, amortization of intangible
assets and stock-based compensation and charges, on a per share basis, which
is referred to as Adjusted Earnings Per Share. Additionally, the Company has
presented a non-GAAP table of Financial Data for the three-month periods ended
March 31, 2013 and 2012 that extracts stock-based compensation and charges
under ASC Topic 718 "Compensation—Stock Compensation." A reconciliation of
these non-GAAP measures to GAAP is provided in the attached tables. These
non-GAAP adjustments are provided to enhance the user's overall understanding
of Move's current financial performance and its prospects for the future and
should not be considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP. These non-GAAP measures are the primary
basis management uses for planning and forecasting its future operations.
Move believes these non-GAAP results provide useful information to both
management and investors by excluding certain expenses that it believes are
not indicative of its core operating results and provide a more consistent
basis for comparison between quarters and should be carefully evaluated.
Move, Inc. has reported Adjusted EBITDA because management uses it to monitor
and assess the Company's performance and believes it is helpful to investors
in understanding the Company's business.

Unique Users
Move Inc. calculates total average monthly unique users across its network of
websites and mobile apps as follows: We count a unique user the first time an
individual accesses one of our mobile applications using a mobile device
during a calendar month and the first time an individual accesses one of our
websites using a web browser during a calendar month. If an individual
accesses our mobile applications using different mobile devices within a given
calendar month, the first instance of access by each such mobile device is
counted as a separate unique user. If an individual accesses our websites
using different web browsers within a calendar month, the first instance of
access by each such web browser is counted as a separate unique user. If an
individual accesses more than one of our websites from the same web browser in
a calendar month, the first instance of access to each website is counted as a
separate unique user. We measure unique users to our mobile apps using
Omniture. We primarily measure unique users to our network of websites using
Omniture. We use Google Analytics to measure unique users to certain websites
that amount to less than 5% of our total unique user metric. Before the date
of this press release, we reported unique users using comScore measurements,
rather than internal calculations.

Forward-Looking Statements
This press release may contain forward-looking statements, including
information about management's view of Move's future expectations, plans and
prospects, within the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown
risks, uncertainties and other factors which may cause the results of Move,
its subsidiaries, divisions and concepts to be materially different than those
expressed or implied in such statements. These risk factors and others are
included from time to time in documents Move files with the Securities and
Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs
and Form 8-Ks. Other unknown or unpredictable factors also could have
material adverse effects on Move's future results. The forward-looking
statements included in this press release are made only as of the date hereof.
Move cannot guarantee future results, levels of activity, performance or
achievements. Accordingly, you should not place undue reliance on these
forward-looking statements. Finally, Move expressly disclaims any intent or
obligation to update any forward-looking statements to reflect subsequent
events or circumstances.

ABOUT MOVE, INC.
Move, Inc. (NASDAQ:MOVE), the leader in online real estate, operates:
realtor.com^®, the official website of the National Association of REALTORS^®;
Move.com, a leading destination for new homes and rental listings, moving,
home and garden, and home finance; ListHub™, the leading syndicator of real
estate listings; Moving.com™; SeniorHousingNet; SocialBios; TigerLead^®; and
TOP PRODUCER^® Systems. Move, Inc. is based in San Jose, California.



MOVE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                                                  Three Months Ended March 31,
                                                      2013            2012
                                                      (unaudited)
Revenue                                           $   54,238      $   47,741
Cost of revenue^(1)                                   12,688          9,645
Gross profit                                         41,550          38,096
Operating expenses:
Sales and marketing^(1)                               19,843          17,412
Product and web site development^(1)                  9,846           8,714
General and administrative^(1)                        11,538          10,888
Amortization of intangible assets                    999             397
Total operating expenses                              42,226          37,411
Operating (loss) income                               (676)           685
Interest (expense) income, net                       (14)            1
Earnings of unconsolidated joint venture              602             199
Other expense, net                                    (27)            (52)
(Loss) income before income taxes                     (115)           833
Income tax (benefit) expense                          (15)            25
Net (loss) income                                     (100)           808
Convertible preferred stock dividend and related      —               (918)
accretion
Net loss applicable to common stockholders        $   (100)       $   (110)
Basic and diluted net loss per share applicable   $   (0.00)      $   (0.00)
to common stockholders
Shares used to calculate net loss per share
applicable
 to common stockholders:
Basic and diluted                                     39,104          38,488
(1) Includes stock-based compensation and charges as follows:
 Cost of revenue                              $   102         $   54
 Sales and marketing                              511             289
 Product and web site development                 580             359
 General and administrative                       1,430           761
                                                  $   2,623       $   1,463





MOVE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
                                             March 31,      December 31,
                                             2013           2012
                                             (unaudited)
ASSETS
Current assets:
Cash                                       $ 30,221       $ 27,122
Accounts receivable, net                     12,427         11,759
Other current assets                         8,439          7,215
Total current assets                         51,087         46,096
Property and equipment, net                  22,413         21,975
Investment in unconsolidated joint venture   4,342          4,924
Goodwill, net                                38,560         38,560
Intangible assets, net                       23,445         24,444
Other assets                                861            870
Total assets                              $ 140,708      $ 136,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                          $ 6,351        $ 4,741
Accrued expenses                            18,828         20,512
Deferred revenue                            7,829          8,520
Total current liabilities                   33,008         33,773
Other noncurrent liabilities                 5,094          5,086
Total liabilities                           38,102         38,859
Stockholders' equity:
Series A convertible preferred stock         —              —
Common stock                                40             39
Additional paid-in capital                  2,136,909      2,132,189
Accumulated other comprehensive income       194            219
Accumulated deficit                          (2,034,537)    (2,034,437)
Total stockholders' equity                   102,606        98,010
Total liabilities and stockholders' equity $ 140,708      $ 136,869





MOVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                  Three Months Ended March 31,
                                                      2013            2012
                                                  (unaudited)
Cash flows from operating activities:
Net (loss) income                                 $   (100)        $  808
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation                                          2,399           2,524
Amortization of intangible assets                     999             397
Provision for doubtful accounts                       99              395
Stock-based compensation and charges                  2,623           1,463
Earnings of unconsolidated joint venture              (602)           (199)
Return on investment in unconsolidated joint          602             —
venture
Other noncash items                                   6               (36)
Changes in operating assets and liabilities:
Accounts receivable                                   (767)           492
Other assets                                          (988)           (253)
Accounts payable and accrued expenses                 (38)            (1,204)
Deferred revenue                                     (700)           (291)
Net cash provided by operating activities             3,533           4,096
Cash flows from investing activities:
Purchases of property and equipment                   (2,868)         (1,888)
Return of investment in unconsolidated joint          582             —
venture
Net cash used in investing activities                 (2,286)         (1,888)
Cash flows from financing activities:
Principal payments on loan payable                    (19)            (27)
Payment of dividends on convertible preferred         —               (429)
stock
Proceeds from exercise of stock options               2,259           2,323
Tax payments related to net share settlements of      (388)           (211)
equity awards
Repurchases of common stock                           —               (69)
Net cash provided by financing activities             1,852           1,587
Change in cash and cash equivalents                   3,099           3,795
Cash and cash equivalents, beginning of period        27,122          87,579
Cash and cash equivalents, end of period          $   30,221       $  91,374





MOVE, INC.
REVENUE BY TYPE
(in thousands)
                        Three Months Ended March 31,
                            2013            2012
                        (unaudited)
Revenue
 Consumer advertising  $   42,148      $   39,445
 Software and services     12,090          8,296
 Total revenue       $   54,238      $   47,741
Percentage of revenue
 Consumer advertising      78%             83%
 Software and services     22%             17%
 Total                   100%            100%





MOVE, INC.
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA
(in thousands)
                                                  Three Months Ended March 31,
                                                      2013            2012
                                                  (unaudited)
Net (loss) income                                 $   (100)       $   808
Plus:
Stock-based compensation and charges                  2,623           1,463
Depreciation                                          2,399           2,524
Amortization of intangible assets, including          999             594
unconsolidated joint venture
Interest expense (income), net                        14              (1)
Income tax (benefit) expense                          (15)            25
Non-GAAP Adjusted EBITDA                          $   5,920       $   5,413
MOVE, INC.
RECONCILIATION OF EARNINGS PER SHARE TO NON-GAAP ADJUSTED EARNINGS PER SHARE
(in thousands)
                                                  Three Months Ended March 31,
                                                      2013            2012
                                                  (unaudited)
Net loss applicable to common stockholders        $   (100)       $   (110)
Plus:
 Convertible preferred stock dividend and        —               918
related accretion
Stock-based compensation and charges                  2,623           1,463
Amortization of intangible assets, including          999             594
unconsolidated joint venture
Non-GAAP Adjusted net income applicable to common $   3,522       $   2,865
stockholders
Basic and diluted earnings per share              $   (0.00)      $   (0.00)
Non-GAAP Adjusted basic earnings per share        $   0.09        $   0.07
Non-GAAP Adjusted diluted earnings per share      $   0.09        $   0.07
Shares used to calculate earnings per share:
Basic and diluted                                     39,104          38,488
Shares used to calculate Non-GAAP adjusted
earnings per share:
Basic                                                 39,104          38,488
Diluted                                               40,590          39,425





MOVE, INC.
OPERATING RESULTS NET OF STOCK-BASED COMPENSATION AND CHARGES
(in thousands)
                 Three Months Ended                        Three Months Ended
                 March 31, 2013                            March 31, 2012
                 (unaudited)                               (unaudited)
                            Stock-based    Excluding                  Stock-based    Excluding
                 As         Compensation   Stock-based     As         Compensation   Stock-based
                 Reported   and Charges    Compensation    Reported   and Charges    Compensation
                                           and Charges                               and Charges
Revenue        $ 54,238   $ —            $ 54,238        $ 47,741   $ —            $ 47,741
Cost of          12,688     (102)          12,586          9,645      (54)           9,591
revenue
Gross profit     41,550     102            41,652          38,096     54             38,150
Sales and        19,843     (511)          19,332          17,412     (289)          17,123
marketing
Product and
web site         9,846      (580)          9,266           8,714      (359)          8,355
development
General and      11,538     (1,430)        10,108          10,888     (761)          10,127
administrative
Amortization     999        —              999             397        —              397
of intangibles
Total
operating        42,226     (2,521)        39,705          37,411     (1,409)        36,002
expenses
Operating      $ (676)    $ 2,623        $ 1,947         $ 685      $ 1,463        $ 2,148
(loss) income





MOVE, INC.
AVERAGE MONTHLY UNIQUE USERS
(in thousands)
             Three Months Ended March 31,
             2013              2012        % Change
             (unaudited)
Unique users 28,080            25,591      10%



SOURCE Move, Inc.

Website: http://www.move.com
Contact: Investor Relations, Marta Nichols, Marta.Nichols@move.com,
408-558-7149 or Media, Alison Schwartz, Alison.Schwartz@move.com, 408-558-7209
 
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