Move, Inc. Announces Fourth Quarter 2011 Financial Results

Published on Thursday, 09 February 2012 16:27 Written by TradersHuddle Staff

CAMPBELL, Calif., Feb. 9, 2012 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the leader in online real estate, today reported financial results for the fourth quarter and fiscal year ended December 31, 2011.

(Logo:  http://photos.prnewswire.com/prnh/20080213/MOVEINCLOGO)

Revenue in the fourth quarter of 2011 was $47.3 million compared to $48.9 million in the fourth quarter of 2010.  Net income applicable to common stockholders was $3.4 million, or $0.09 per share, compared to net income of $409,000, or $0.01 per share, in the fourth quarter of 2010. The company generated $8.6 million of cash from operating activities in the fourth quarter of 2011.  Non-GAAP Adjusted EBITDA (earnings from operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) for the fourth quarter of 2011 was $8.6 million, or 18 percent of revenue, compared to $6.3 million, or 13 percent of revenue, for the fourth quarter of 2010.  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.

"Move closed 2011 with strength by rolling out several new revenue-generating products developed to connect customers and consumers, stabilizing our core Realtor.com revenue stream, and laying the groundwork to grow revenue in 2012," said Steve Berkowitz, chief executive officer at Move, Inc. "Our industry is still experiencing considerable change, as marketing dollars continue shifting online and consumers embrace new technologies that are transforming real estate search.  In 2012, Move intends to use our core assets and market leadership to drive the successful delivery of revenue generating solutions that surround the entire move-cycle."

2011 Highlights:

• Market leadership:   Realtor.com maintained its leading market position in 2011 as the most trusted name in online real estate.  In 2011, Realtor.com users spent more than 2.8 billion minutes on our network and viewed approximately 6.0 billion total pages, more than 2.5 times the nearest competitor(1).
• Mobile Highlights:  Through its iPad, iPhone, Android and Windows Mobile apps, Realtor.com's consumers viewed hundreds of millions of property pages and the Company delivered a 400% increase year over year in the number of leads delivered to real estate professionals in 2011.
• Co-Broke Connection:  In 2011, Realtor.com began displaying non-branded buyer inquiry forms next to active listings to connect home shoppers with a buyer's agent who is committed to providing a timely response. Now potential buyers have another touch point on Realtor.com to connect with a real estate expert on listings of interest and real estate professionals have more opportunities to connect with active home shoppers.
• Rentals on Realtor.com:  In October, rental apartment communities were integrated onto Realtor.com, providing consumers with a more complete view of their housing options while offering real estate professionals the opportunity to connect with tomorrow's buyers.
• International: In November, Realtor.com went global, becoming the first US real estate site to provide multiple languages and conversions for currencies and measurements as well as search capabilities outside the U.S. Listings are now provided for over 13 countries including Spain, France and Italy. International buyers can also search for U.S. real estate in 11 languages and 20 currencies.
• Syndication: Through its ListHub business, Move grew its listings syndication business, now providing listings to more than 100 publisher partners.  In August, AOL launched a new real estate search experience powered by Move.  Through Realtor.com and the ListHub publishing partners, Move accounts for an estimated 60% of all homes viewed on the web through third party property listing sites.
• PreQual Plus:  In the fall of 2011, Move, Inc. relaunched its proprietary decision and pricing engine PreQual Plus, providing consumers with the ability to prequalify for a mortgage while searching for real estate on Realtor.com, AOL real estate, MSN real estate and many ListHub publishing partners.
• Top Producer:  In November, Move, Inc. launched real estate's first HTML5 CRM web-app solution so real estate professionals can stay on top of their business regardless of where they are or what they're doing. This newest Top Producer product is compatible with any web-based device, and offers contextual coaching, a business-intelligence lead management system, and features that turn the app into an agent's 'virtual assistant.
• Recognition:  In 2011, Move's industry innovations were honored with several industry recognitions, including: the Most Innovative Mobile App of 2011 by Inman News and the Best Socialized Business award in the SAMMY competition, an award honoring the most innovative and forward thinking company with 500+ employees for their use of social media to build company culture and brand.
• Social: The Company launched several initiatives in the social arena.  Move's Facebook App for Realtors lets agents share real-time market data about their local communities, highlight active inventory, create conversations and generate inquiries with multiple lead capture points throughout the platform. It is free to use and scalable to fit a variety of business and marketing solutions. In July, Move acquired SocialBios, the award-winning social search platform, demonstrating Move's commitment to social media and its integration into the real estate search experience.

For the full year ended December 31, 2011, Move reported revenue of $191.7 million, compared to $197.5 million in the 2010 fiscal year.  Net income applicable to common stockholders in 2011 was $3.2 million, or $0.08 per share, compared to a net loss of $20.9 million, or a loss of $0.54 per share in 2010.  Move's Adjusted EBITDA (earnings from operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) on a non-GAAP basis for 2011 was $25.7 million, or 13 percent of revenue, compared to $23.1 million, or 12 percent of revenue, for 2010.

Business Outlook

Move today provided guidance for the quarter ending March 31, 2012.  For the quarter ending March 31, 2012, Move expects revenue of approximately $47.5 million and expects to report Adjusted EBITDA margin of approximately 11-12 percent.

Move today provided guidance for the year ending December 31, 2012.  For the year ending December 31, 2012, Move expects revenue to range between $195 million and $200 million and expects to report Adjusted EBITDA margin of approximately 14 percent.

Conference Call

As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet, February, 9, 2012, at 1:30 PM Pacific Time (4:30 PM Eastern Time).  In order to participate in the call, please dial (877) 312-5848, or if outside the U.S., (253) 237-1155, at least five minutes prior to the 1:30 PM PT start time.  A live webcast and replay of the call will also be available at http://investor.move.com under the Events & Presentations menu.  An audio replay will be available between 7:30 PM ET, February 9, 2012, and 11:59 PM ET, February 23, 2012, by calling (855) 859-2056, or (404) 537-3406, or (800) 585-8367 with passcode 38957318.

For additional information regarding the Company's results, please go to the "SEC Filings" section at http://investor.move.com to view our annual report as filed on February 18, 2011 with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2010.  Move's Form 10-K for the year ended December 31, 2011 is expected to be filed with the Securities and Exchange Commission on, or before, February 24, 2012.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Move also presents references to Adjusted EBITDA.  We have provided GAAP to non-GAAP reconciliations within this earnings release, including net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA.  The Company has also presented a non-GAAP table of Financial Data for the three and twelve month periods ended December 31, 2011 and 2010 that extracts stock-based compensation 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 a more consistent basis for comparison between quarters and should be carefully evaluated.

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), is the leader in online real estate and operator of Move.com, a leading destination for information on new homes and rental listings, moving, home and garden and home finance; REALTOR.com®, the official website of the National Association of REALTORS®; Moving.com; SeniorHousingNet; ListHub; SocialBios, and TOP PRODUCER Systems. Move, Inc. is based in Campbell, California.

(1)  comScore Media Metrix, Key Measures Report, December 2011

SOURCE Move, Inc.