HomeAway, Inc. Reports Fourth Quarter and Full Year 2013 Financial Results

HomeAway, Inc. Reports Fourth Quarter and Full Year 2013 Financial Results

       − 2013 Total revenue of $346.5 million, up 23.6% year-over-year
       − 2013 Adjusted EBITDA of $96.7 million, up 20.4% year-over-year
− 2013 ending paid listings of approximately 890,000, up 25.0% year-over-year;
                             or 29.5% as adjusted
      − Q4 2013 Adjusted Renewal Rate of 75.3%, up from 74.4% in Q4 2012
 − Completed acquisition of Stayz, Australia's leading vacation rental group

AUSTIN, Texas, Feb. 19, 2014 (GLOBE NEWSWIRE) -- HomeAway, Inc. (Nasdaq:AWAY),
the world's leading online marketplace for the vacation rental industry, today
reported its financial results for the fourth quarter and full year ended
December 31, 2013.

Management Commentary

"As we look back on 2013, we're thrilled with HomeAway's accomplishments, all
of which advanced our mission to make every vacation rental in the world
available to every traveler in the world through our online marketplace," says
Brian Sharples, chief executive officer of HomeAway. "In addition to achieving
our financial objectives, we delivered against our goal to reignite listings
growth, delivering nearly 30% adjusted growth in total listings, up
significantly from 13% in the prior quarter. While this growth is largely
fueled by robust and pent up demand for our new pay-per-booking offering as
well as acquisitions, the health of our subscription business also remains
strong, with our renewal rate improving one percentage point sequentially to
75%, as adjusted."

Mr. Sharples continued, "The fourth quarter also marked the advancement of
several strategic initiatives including the roll-out of pay-per-booking, the
ongoing advancement of our e-commerce platform, and the acquisition of Stayz,
which solidifies our strong position in Asia Pacific. We're excited about our
prospects in 2014, particularly as we begin to realize the impact from the
progress made in 2013. Our approach to growth will remain measured, ensuring
we make the necessary investments to support the ongoing expansion of our
global marketplace."

Fourth Quarter 2013 Financial Highlights

  *Total revenue increased 26.1% to $90.3 million from $71.6 million in the
    fourth quarter of 2012. On an FX neutral basis, year-over-year revenue
    growth was 24.9%. Growth in total revenue primarily reflected an increase
    in average revenue per listing as a result of tiered pricing and bundled
    product offerings, an increase in new listings and the benefit of
    ancillary product and service revenue.
  *Listing revenue increased 25.5% to $78.4 million from $62.5 million in the
    fourth quarter of 2012. On an FX neutral basis, year-over-year listing
    revenue growth was 24.1%.
  *Other revenue, which is comprised of ancillary revenue from owners and
    travelers, advertising, software and other items, increased 30.8% to $11.9
    million from $9.1 million in the fourth quarter of 2012. Growth in other
    revenue primarily reflected the increased adoption of value-added owner,
    manager and traveler products.
  *Adjusted EBITDA decreased 1.4% to $21.0 million from $21.3 million in the
    fourth quarter of 2012. As a percentage of revenue, adjusted EBITDA was
    23.3% compared to 29.8% in the fourth quarter of 2012. Impacting
    year-over-year comparability of Adjusted EBITDA was approximately $3.8
    million in one-time expenses related to the acquisition of Stayz in the
    fourth quarter of 2013. Excluding these one-time acquisition-related
    expenses, Adjusted EBITDA would have increased 16.4% year-over-year.
  *Free cash flow increased 6.8% to $23.4 million from $21.9 million in the
    fourth quarter of 2012.
  *Net loss attributable to HomeAway was $1.6 million, or a loss of $0.02 per
    diluted share, compared to net income attributable to HomeAway of $4.5
    million, or $0.05 per diluted share, in the fourth quarter of 2012. Net
    loss attributable to HomeAway for the fourth quarter of 2013 is inclusive
    of one-time expenses related to the acquisition of Stayz.
  *Non-GAAP net income was $6.9 million, or $0.08 per diluted share, compared
    to non-GAAP net income of $11.6 million, or $0.14 per diluted share, in
    the fourth quarter of 2012. Non-GAAP net income for the fourth quarter of
    2013 is inclusive of one-time expenses related to the acquisition of
    Stayz.

Full Year 2013 Financial Highlights

  *Total revenue increased 23.6% to $346.5 million from $280.4 million in
    2012. On an FX neutral basis, year-over-year revenue growth was 23.0%.
  *Listing revenue increased 23.6% to $294.7 million from $238.4 million in
    2012. On an FX neutral basis, year-over-year listing revenue growth was
    22.9%.
  *Other revenue increased 23.4% to $51.8 million from $42.0 million in 2012.
  *Adjusted EBITDA increased 20.4% to $96.7 million from $80.3 million in
    2012. As a percentage of revenue, adjusted EBITDA was 27.9% compared to
    28.7% in 2012. Excluding one-time expenses related to the acquisition of
    Stayz in the fourth quarter of 2013, Adjusted EBITDA would have increased
    25.1% year-over-year.
  *Free cash flow increased 9.0% to $93.0 million from $85.3 million in 2012.
  *Net income attributable to HomeAway was $17.7 million, or $0.20 per
    diluted share, compared to net income attributable to HomeAway of $15.0
    million, or $0.18 per diluted share, in 2012.
  *Non-GAAP net income was $49.8 million, or $0.56 per diluted share,
    compared to non-GAAP net income of $40.6 million, or $0.48 per diluted
    share, in 2012.
  *Cash, cash equivalents and short-term investments as of December 31, 2013
    were $391.4 million, or approximately $4.43 per diluted share.

Key Business Metrics

  *Paid listings at the end of the fourth quarter were 889,875, a
    year-over-year increase of 25.0% from 711,631 at the end of the fourth
    quarter of 2012.
  *Average revenue per listing during the fourth quarter was $377, an 8.0%
    increase from $349 during the fourth quarter of 2012. Excluding the impact
    of FX and performance-based listings, average revenue per subscription
    listing increased 13.2% year-over-year.
  *Renewal rate was 72.5% at the end of the fourth quarter, compared to 73.8%
    at the end of the fourth quarter of 2012 and 71.7% at the end of the third
    quarter of 2013.
  *Visits were 145.8 million during the fourth quarter, a year-over-year
    increase of 17.6%. During the fourth quarter of 2012, HomeAway began using
    a different tool for the measurement of visits for certain of its
    websites. On a comparable basis, HomeAway estimates that visits would have
    increased by 15.6% year-over-year.

Note: The recent ability of customers to consolidate listings and to purchase
network product bundles impacts comparability of HomeAway's previously
reported metrics for the fourth quarter of 2013, and for future periods.
Absent this change, HomeAway estimates for the fourth quarter of 2013:

  *Year-over-year paid listings growth would have been approximately 29.5%;
  *Average revenue per listing would have been $357 and when excluding the
    impact of the same adjustments for consolidated listings and new bundled
    offerings, in addition to FX and performance-based listings, average
    revenue per subscription listing would have been up 7.8% year-over-year;
    and
  *Renewal rate would have been 75.3%, compared to 74.4% at the end of the
    fourth quarter of 2012 and 74.2% at the end of the third quarter of 2013.

Corporate Developments

On December 4, 2013, HomeAway announced the acquisition of Stayz Group, the
publisher of Stayz.com.au and the leading online vacation rental marketplace
in Australia with approximately 40,000 listings. The Stayz Group, which also
includes Rentahome.com.au, TakeABreak.com.au, and YesBookIt, was purchased
from Fairfax Digital, a division of Fairfax Media Limited (ASX:FXJ), for
approximately US$197 million in an all-cash transaction.

On December 17, 2013, HomeAway announced the completion of an underwritten
public offering of 6,921,424 shares of its common stock by the company and the
selling stockholders at a price of $37.00 per share. The aggregate amount
includes 902,794 shares sold pursuant to the full exercise by the underwriters
of their option to purchase additional shares from the selling stockholders.
HomeAway received net proceeds of approximately $195.3 million, after
deducting underwriting discounts and commissions and estimated offering
expenses.

Business Outlook

HomeAway management currently expects to achieve the following results for
first quarter ending March 31, 2014 and full year ending December 31, 2014:

First Quarter 2014

  *Total revenue is expected to be in the range of $102.1 to $103.3 million.
  *Adjusted EBITDA is expected to be in the range of $23.9 to $24.6 million.

Full Year 2014

  *Total revenue is expected to be in the range of $429.0 to $436.0 million.
  *Adjusted EBITDA is expected to be in the range of $119.0 to $125.0
    million.

The above statements are based on current expectations and actual results may
differ materially as explained in the "Cautionary Statement Regarding
Forward-looking Statements" below. Information about HomeAway's use of
non-GAAP financial measures and key business metrics is provided below under
the captions "Use of Non-GAAP Financial Measures" and "Use of Key Business
Metrics."

Conference Call & Webcast Information

HomeAway will host a conference call to review and discuss its fourth quarter
and full year 2013 results today at 4:30 p.m. Eastern Time / 3:30 p.m. Central
Time. To participate in the conference call, investors should join ten minutes
prior to the scheduled start time. Callers in the United States and Canada
should join by dialing (877) 407-0784, passcode 13574609. Callers outside the
United States and Canada should join by dialing (201) 689-8560, passcode
13574609. In addition, a live webcast of the call will be accessible through
the Investor Relations section of HomeAway's website at
http://investors.homeaway.com and will be archived online for 60 days upon
completion of the conference call.

For those unable to participate during the live broadcast, a telephonic replay
of the call will also be available from 7:30 p.m. Eastern Time / 6:30 p.m.
Central Time on February 19, 2014 until 11:59 p.m. Eastern Time / 10:59 p.m.
Central Time on March 5, 2014 by dialing (877) 870-5176, passcode 13574609, in
the United States and Canada or (858) 384-5517 outside the United States and
Canada, passcode 13574609.

About HomeAway

HomeAway, Inc. based in Austin, Texas, the world's leading online marketplace
for the vacation rental industry, with sites representing approximately
890,000 paid listings of vacation rental homes in 190 countries. Through
HomeAway, owners and property managers offer an extensive selection of
vacation homes that provide travelers with memorable experiences and benefits,
including more room to relax and added privacy, for less than the cost of
traditional hotel accommodations. The company also makes it easy for vacation
rental owners and property managers to advertise their properties and manage
bookings online. The HomeAway portfolio includes the leading vacation rental
websites HomeAway.com, VRBO.com and VacationRentals.com in the United States;
HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in
Germany; Abritel.fr and Homelidays.com in France; HomeAway.es and Toprural.es
in Spain; AlugueTemporada.com.br in Brazil; HomeAway.com.au and Stayz.com.au
in Australia; and Bookabach.co.nz in New Zealand. Asia Pacific short-term
rental site, travelmob.com, is also owned by HomeAway.

HomeAway also operates BedandBreakfast.com, the most comprehensive global site
for finding bed-and-breakfast properties, providing travelers with another
source for unique lodging alternatives to chain hotels. For more information
about HomeAway, please visit www.HomeAway.com.

Cautionary Statement Regarding Forward-looking Statements

This press release contains "forward-looking" statements, subject to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995,
which are based on HomeAway management's beliefs and assumptions and on
information currently available to management. Forward-looking statements
include information concerning HomeAway's expected, possible or assumed future
results of operations, growth and business outlook; ability to realize in 2014
the impact from progress in 2013; future growth; and expansion of HomeAway's
global marketplace.

Forward-looking statements include all statements that are not historical
facts and may be identified by terms such as "continues," "plans," "believes,"
"expects," "anticipates," "could," "look forward to," or similar expressions
and the negatives of those terms. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause HomeAway's
actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by the
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to the following: (a) HomeAway's
inability to continue to attract and maintain a critical mass of property
listings and travelers, (b) a decrease in renewal of listings, (c) HomeAway's
inability to effectively manage its growth, (d) HomeAway's inability to
increase sales to existing property owners and managers and attract new ones,
(e) the impact of pay-per-booking or other changes in HomeAway's pricing
policies or those of its competitors, (f) HomeAway's inability to execute its
product and services development roadmap, including e-commerce initiatives,
(g) the impact of general economic conditions, (h) fluctuations in foreign
exchange rates, (i) HomeAway's inability to introduce successful new products
and services; (j) the inability to integrate and grow recent acquisitions, and
(k) such other risks and uncertainties described more fully in documents filed
with or furnished to the Securities and Exchange Commission (the "SEC"),
including HomeAway's most recent 10-Q, filed on November 7, 2013. All
information provided in this press release is as of the date hereof and,
except as required by law, HomeAway assumes no obligation to update this
information, even if new information becomes available in the future.

Use of Non-GAAP Financial Measures

This press release contains non-GAAP financial measures: Adjusted EBITDA, free
cash flow and non-GAAP net income. Adjusted EBITDA, free cash flow and
non-GAAP net income are financial measures that are not calculated in
accordance with accounting principles generally accepted in the United States,
or GAAP. HomeAway defines Adjusted EBITDA as its net income (loss)
attributable to HomeAway, Inc. plus depreciation, amortization of intangible
assets, interest expense, net, income tax expense (benefit), stock-based
compensation expense, net income (loss) attributable to noncontrolling
interests, all net of any foreign exchange income or expense. HomeAway defines
free cash flow as its cash provided by operating activities, adjusted for cash
interest expense and excess tax benefit (shortfall) from stock-based
compensation, and subtracting capital expenditures. For the purpose of
calculating free cash flow, HomeAway considers purchases of property,
equipment, tenant improvements for its offices, and software licenses
(including costs associated with internally developed software) as capital
expenditures. HomeAway defines non-GAAP net income as its net income (loss)
attributable to HomeAway, Inc. plus the after-tax effect of stock-based
compensation expense, amortization of intangible assets and the impact on
noncontrolling interests of these items, utilizing a tax rate of 35%. The
income tax effect of adjustments to non-GAAP net income assists investors in
understanding the tax provision related to those adjustments and a tax rate of
35% related to ongoing operations.

HomeAway management believes that the use of Adjusted EBITDA, free cash flow
and non-GAAP net income are useful to investors in evaluating its operating
performance for the following reasons:

  *HomeAway management uses Adjusted EBITDA, free cash flow and non-GAAP net
    income in conjunction with GAAP financial measures as part of its
    assessment of its business and in communications with its board of
    directors concerning its financial performance;
  *Adjusted EBITDA, free cash flow and non-GAAP net income provide
    consistency and comparability with HomeAway's past financial performance,
    facilitate period-to-period comparisons of operations, and also facilitate
    comparisons with other peer companies, many of which use similar non-GAAP
    financial measures to supplement their GAAP results;
  *Securities analysts use Adjusted EBITDA, free cash flow and non-GAAP net
    income as supplemental measures to evaluate the overall operating
    performance of companies, and HomeAway management anticipates that its
    investor and analyst presentations will include Adjusted EBITDA, free cash
    flow and non-GAAP net income; and
  *Adjusted EBITDA and non-GAAP net income excludes non-cash charges, such as
    depreciation, amortization and stock-based compensation, because such
    non-cash expenses in any specific period may not directly correlate to the
    underlying performance of HomeAway's business operations and can vary
    significantly between periods.

Adjusted EBITDA, free cash flow and non-GAAP net income should not be reviewed
in isolation. Investors should consider them in addition to, and not as
substitutes for, measures of HomeAway's financial performance reported in
accordance with GAAP. HomeAway's Adjusted EBITDA, free cash flow or non-GAAP
net income may not be comparable to similarly titled measures of other
companies because other companies may not calculate such measures in the same
manner as HomeAway does. Adjusted EBITDA, free cash flow and non-GAAP net
income have limitations as analytical tools. As an example, although
depreciation and amortization are non-cash charges, the assets being
depreciated or amortized will often need to be replaced in the future, and
Adjusted EBITDA, free cash flow and non-GAAP net income do not reflect any
cash requirements for these replacements. In addition, none of these measures
reflect future requirements for contractual obligations.

Further limitations of Adjusted EBITDA include:

  *this measure does not reflect changes in working capital;
  *this measure does not reflect interest income or interest expense; and
  *this measure does not reflect cash requirements for income taxes.

Reconciliation tables of the most comparable GAAP financial measures to the
non-GAAP measures used in this press release are included at the end of this
release.

Use of Key Business Metrics

A paid listing is defined by HomeAway as a fee to list a property
advertisement on one or more websites in its marketplace. A paid listing
allows a property owner or manager to include a description of the property,
along with location, pricing, availability, a specified number of photos and
contact information. Most listings are sold on a subscription basis, and some
listing packages may include listings on more than one of HomeAway's websites.
When purchased at the same time in one bundle, HomeAway counts this as one
paid listing. Listings are also sold on a pay-for-performance basis to
property managers.

Average revenue per listing is computed by HomeAway as listing revenue for the
period divided by the average of paid listings at the beginning and end of the
period and then annualizing the result. The price of listings varies by
website and can include various additional fees associated with listing
enhancements. The average revenue per listing may fluctuate based on the
timing and nature of acquisitions, impacting the number of average paid
listings for a given period; changes in HomeAway's base pricing; uptake of
listing enhancements; changes in the pricing of enhancements; changes in brand
and listing type mix; and the impact of foreign exchange rates on HomeAway's
listing revenue outside of the United States.

The renewal rate for HomeAway's subscription listings at the end of any period
is defined as the percentage of those paid listings that were active at the
end of the period ended twelve months prior that are still active as of the
end of the reported period. Unique property subscription listings that are
removed from property managers' accounts and subsequently replaced with new
subscription listings within the same property manager's account listings are
not considered as renewals in our renewal rate calculation. HomeAway includes
most brands in its calculation of renewal rate. Subscriptions to
BedandBreakfast.com and Toprural.es remain excluded until HomeAway can further
develop its database system.

Visits to websites are measured by HomeAway through the use of a variety of
tools, including solutions from third parties such as Omniture and Google
Analytics.

HomeAway, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
                                                                
                            Three Months Ended December Twelve Months Ended
                             31,                         December 31,
                            2013           2012         2013       2012
Revenue:                                                         
Listing                      $78,357      $62,452    $294,661 $238,413
Other                        11,912        9,105       51,828    41,991
Total revenue                90,269        71,557      346,489   280,404
Costs and expenses:                                              
Cost of revenue (exclusive
of amortization shown        14,190        12,237      54,638    45,342
separately below)
Product development          16,193        12,092      58,226    43,152
Sales and marketing          29,172        22,066      112,967   93,366
General and administrative   23,526        14,275      75,169    56,311
Amortization expense         2,763         3,410       11,668    12,438
Total costs and expenses     85,844        64,080      312,668   250,609
Operating income             4,425         7,477       33,821    29,795
Other income (expense):                                          
Interest income              363           244         1,211     928
Other expense:               (4,034)       (386)       (6,017)   (2,587)
Total other income (expense) (3,671)       (142)       (4,806)   (1,659)
Income before income taxes   754           7,335       29,015    28,136
Income tax expense           (2,581)       (2,786)     (11,724)  (13,175)
Net income                   (1,827)       4,549       17,291    14,961
Net loss attributable to     (270)         --          (395)     --
noncontrolling interests
Net income (loss)
attributable to HomeAway,    $(1,557)     $4,549     $17,686  $14,961
Inc.
Net income (loss) per share
attributable to HomeAway,                                        
Inc.:
Basic                        $(0.02)      $0.05      $0.21    $0.18
Diluted                      $(0.02)      $0.05      $0.20    $0.18
Weighted average number of                                       
shares outstanding:
Basic                        87,111        83,200      85,378    82,382
Diluted                      90,144        85,410      88,259    84,942


HomeAway, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
                                                                
                                                    December 31, December 31,
                                                    2013         2012
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                            $324,608   $189,478
Short-term investments                               66,798      80,330
Accounts receivable, net of allowance for doubtful
accounts of $1,038 and $633 as of December 31, 2013  20,375      16,343
and December 31, 2012, respectively
Income tax receivable                                3,340       775
Prepaid expenses and other current assets            7,702       7,312
Restricted cash                                      1,607       284
Deferred tax assets                                  8,146       5,425
Total current assets                                 432,576     299,947
Property and equipment, net                          39,807      32,901
Goodwill                                             507,611     312,412
Intangible assets, net                               80,665      59,727
Restricted cash                                      573         230
Deferred tax assets                                  1,120       1,807
Other non-current assets                             18,320      15,651
Total assets                                         $1,080,672 $722,675
Liabilitiesand stockholders' equity                             
Current liabilities:                                             
Accounts payable                                     $3,539     $6,613
Income tax payable                                   1,992       11,137
Accrued expenses                                     54,625      33,856
Deferred revenue                                     151,991     126,351
Total current liabilities                            212,147     177,957
Deferred revenue, less current portion               2,983       2,879
Deferred tax liabilities                             24,046      17,615
Other non-current liabilities                        7,557       7,191
Total liabilities                                    246,733     205,642
Redeemable noncontrolling interests                  10,584      --
Commitments and contingencies                                    
Stockholders' equity                                             
Common stock                                         9           8
Additional paid-in capital                           908,632     618,700
Accumulated other comprehensive loss                 (6,747)     (5,450)
Accumulated deficit                                  (78,539)    (96,225)
Total stockholders' equity                           823,355     517,033
Total liabilities and stockholders' equity           $1,080,672 $722,675
                                                                

HomeAway, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
                                                                  
                                                        TwelveMonths
                                                        Ended December 31,
                                                        2013       2012
Cash flows from operating activities                               
Net income                                               $17,291  $14,961
Adjustments to reconcile net income to net cash provided           
by operating activities:
Depreciation                                             13,399    11,051
Amortization of intangible assets                        11,668    12,438
Amortization of premiums on securities and other         4,030     2,409
Stock-based compensation                                 37,887    27,033
Excess tax benefit from stock-based compensation         (8,226)   (7,122)
Deferred income taxes                                    (1,455)   (3,119)
Net realized/unrealized foreign exchange loss            2,450     817
Realized loss on foreign currency forwards               2,926     1,910
Changes in operating assets and liabilities, net of                
assets and liabilities assumed in business combinations:
Accounts receivable                                      (1,790)   251
Income tax receivable                                    (2,506)   (672)
Prepaid expenses and other assets                        878       (6,987)
Accounts payable                                         (3,348)   3,376
Accrued expenses                                         11,081    4,457
Income tax payable                                       (1,006)   11,486
Deferred revenue                                         21,219    22,401
Other non-current liabilities                            (136)     713
Net cash provided by operating activities                104,362   95,403
Cash flows from investing activities                               
Acquisition of businesses, net of cash acquired          (205,470) (16,207)
Change in restricted cash                                (492)     773
Purchases of intangibles and other assets                (625)     (251)
Purchases of non-marketable equity investment            (3,667)   (6,446)
Purchases of short-term investments                      (129,782) (57,080)
Proceeds from maturities of marketable securities        46,679    40,406
Proceeds from sales of marketable securities             92,527    --
Net settlement of foreign currency forwards              (2,926)   (1,910)
Purchases of property and equipment                      (19,616)  (17,260)
Net cash used in investing activities                    (223,372) (57,975)
Cash flows from financing activities                               
Proceeds from exercises of options to purchase common    48,473    25,878
stock
Proceeds from follow-on offering, net of offering costs  195,348   --
Excess tax benefit from stock-based compensation         8,226     7,122
Net cash provided by financing activities                252,047   33,000
Effect of exchange rate changes on cash                  2,093     842
Net increase in cash and cash equivalents                135,130   71,270
Cash and cash equivalents at beginning of period         189,478   118,208
Cash and cash equivalents at end of period               $324,608 $189,478


HomeAway, Inc.
Schedule of Non-GAAP Reconciliations
(Unaudited, in thousands)
                                                                 
                                    ThreeMonths         TwelveMonths
                                    Ended December 31,   Ended December 31,
                                    2013       2012      2013       2012
Net income attributable to HomeAway, $(1,557) $4,549  $17,686  $14,961
Inc.
Add:                                                              
Depreciation and amortization        6,327     6,424    25,067    23,489
Stock-based compensation             10,298    7,477    37,887    27,033
Interest income                      (363)     (244)    (1,211)   (928)
Foreign exchange expense             4,014     333      5,964     2,618
Income tax expense                   2,581     2,786    11,724    13,175
Net loss attributable to             (270)     --       (395)     --
noncontrolling interests
Adjusted EBITDA                      $21,030  $21,325 $96,722  $80,348
                                                                 
                                    ThreeMonths         TwelveMonths
                                    Ended December 31,   Ended December 31,
                                    2013       2012      2013       2012
Cash provided by operating           $26,366  $24,752 $104,362 $95,403
activities
Excess tax benefit from stock-based  1,989     (222)    8,226     7,122
compensation
Capital expenditures                 (4,955)   (2,619)  (19,616)  (17,260)
Free cash flow                       $23,400  $21,911 $92,972  $85,265
                                                                 
                                    ThreeMonths         TwelveMonths
                                    Ended December 31,   Ended December 31,
                                    2013       2012      2013       2012
Net income attributable to HomeAway, $(1,557) $4,549  $17,686  $14,961
Inc.
Add:                                                              
Stock-based compensation             10,298    7,477    37,887    27,033
Amortization expense                 2,763     3,410    11,668    12,438
Related tax effect                   (4,571)   (3,810)  (17,343)  (13,815)
Impact on noncontrolling interests   (67)      --       (78)      --
of non-GAAP adjustments
Non-GAAP net income                  $6,866   $11,626 $49,820  $40,617


HomeAway, Inc.
Supplemental Financial Information
(Unaudited, in thousands)
                                                     
                           ThreeMonths       TwelveMonths
                           Ended December 31, Ended December 31,
                           2013      2012     2013      2012
                                                     
Stock-based compensation:                             
Cost of revenue             $672    $933   $3,064  $2,675
Product development        2,772    1,669   9,515    5,642
Sales and marketing        2,253    1,666   8,488    6,629
General and administrative 4,601    3,209   16,820   12,087
Total                       $10,298 $7,477 $37,887 $27,033
                                                     
                           ThreeMonths       TwelveMonths
                           Ended December 31, Ended December 31,
                           2013      2012     2013      2012
                                                     
Depreciation:                                         
Cost of revenue             $1,061  $997   $4,268  $3,682
Product development        850      696     3,092    2,470
Sales and marketing        1,160    928     4,248    3,438
General and administrative 493      393     1,791    1,461
Total                       $3,564  $3,014 $13,399 $11,051

CONTACT: Investor Contact:
         Jen Ford
         Director, Investor Relations, HomeAway, Inc.
         (512) 505-1751
         investors@homeaway.com
        
         Media Contact:
         Victor Wang
         Public Relations Manager, HomeAway, Inc.
         (512) 505-1504
         vwang@homeaway.com
 
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