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
Move, Inc. Reports First Quarter 2013 Financial Results
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