SAN JOSE, Calif., May 6, 2014 /PRNewswire/ -- Move, Inc. (NASDAQ:
MOVE), the leader in providing consumers the most accurate U.S.
residential listings online, today reported a 7% revenue increase
year-over-year for the first quarter ended March 31, 2014, marking eight consecutive
quarters of growth.
First Quarter 2014 Highlights
- Revenue increased 7% year-over-year to $58.0 million.
- Consumer Advertising revenue increased 6% year-over-year to
$44.8 million.
- Software and Services revenue increased 10% year-over-year to
$13.2 million.
- Non-GAAP Adjusted EBITDA was $5.0
million compared to $5.9
million in the prior year.
- March represented the greatest monthly realtor.com®
traffic in our company's 20-year history with nearly 33 million
unique users.
"Move's laser focus on providing consumers and real
estate professionals with accurate housing information and
high-quality experiences is paying off with improved growth and
greater public awareness of our value," said Steve Berkowitz, Move's chief executive officer.
"We have assembled a unique set of assets delivering a virtuous
ecosystem to all constituencies in the marketplace. Our momentum
continues to build."
First Quarter 2014 Financial Results
Revenue for the quarter was $58.0
million, an increase of $3.8
million, or 7%, from $54.2
million in the first quarter of 2013. Revenue from
Consumer Advertising products increased 6% to $44.8 million in the first quarter of 2014
compared to the same period in 2013. Revenue from Software
and Services products increased 10% to $13.2
million compared to the first quarter of 2013.
Non-GAAP Adjusted EBITDA ("Adjusted EBITDA") was $5.0 million in the first quarter of 2014
compared to $5.9 million in the first
quarter of 2013. As a percentage of revenue, Adjusted EBITDA
was 9% in the first quarter of 2014. Non-GAAP Earnings Per
Share was $0.02 per diluted share in
the first quarter of 2014 compared to $0.09 per diluted share in the first quarter of
2013. Move has reported Adjusted EBITDA and Non-GAAP Earnings
Per Share because management uses them to monitor and assess Move's
performance and believes they are helpful to investors in
understanding Move's business.
Cash provided by operating activities was $3.2 million and $3.5
million for the quarters ended March
31, 2014 and 2013, respectively.
Operating and Business Results
In the first quarter of 2014, realtor.com®, which
empowers consumers to make smart home buying, selling and renting
decisions by leveraging its direct, real-time connections with more
than 800 multiple listing services (MLS) via all types of
computers, tablets and smart telephones, continued its
innovation with a fresh approach to consumer marketing and new
neighborhood content. Significant changes are:
- Launched first national television campaign featuring our
leadership in data accuracy and the realtor.com®
brand.
- Drove significant increases in traffic to
realtor.com® with our brand campaign. In March, we
attracted nearly 33 million unique users, up 21% year-over-year and
23% month-over-month.
- Implemented new features to the realtor.com® site to
improve user experience, including larger photos and new map
functionality.
- Launched Doorsteps' SwipeTM, an easy-to-use and
entertaining way for first-time home buyers to search for a home.
The new application was featured in the App Store, and was rated
number one in the lifestyle category. Consumers have viewed more
than two million homes with consumers swiping on average 20 times
per session.
- Entered into an approved supplier agreement with RE/MAX, which
is designed to maximize lead generation and lead conversion for
RE/MAX agents, teams and brokers and has the goal of quadrupling an
agent's book of business.
- Launched the Porch Home and Neighborhood Report, a free,
innovative resource that helps realtor.com® users
understand the remodeling and project history of a specific home
and its neighborhood.
Subsequent to quarter end, realtor.com®, and its
partner, the National Association of REALTORS®, are
joining forces to increase consumer awareness with a new and
combined marketing campaign.
Additionally, Move's central intelligence and listing
syndication platform, ListHubTM, continues to expand its
reach by distributing content from more than 500 sources to
more than 130 publishers. Contributing to its growth momentum
are two key alliances introduced in Q1:
- ListHubTM expanded its reach to new locations in
Asia, Russia, Western
Europe and South America
through arrangements with SouFun Holdings Limited, the leading real
estate portal in China, and
ListGlobally, which recently announced a merger with Eden Home creating the largest network of
international property portals. The partnership with ListGlobally
now provides ListHubTM customers a network of 91
publishers in 41 countries.
- ListHubTM also launched a software integration
agreement with Showing Suite, Inc., which integrates data with
online marketing analytics available in ListHubTM
marketing reports, to deliver extensive business insights to real
estate brokers and agents.
Business Outlook
For the quarter ending June 30, 2014,
Move expects revenue of $61.5 million to $62
million and expects to report Adjusted EBITDA of
approximately $3 million.
For the year ending December 31,
2014, Move expects revenue of $254
million to $258 million, and expects to report Adjusted
EBITDA of approximately $30
million.
Conference Call
Move will host a conference call broadcast today,
Tuesday, May 6, 2014 at 1:30 p.m. Pacific Daylight Time (4:30 p.m. Eastern Daylight Time). To access
the call, please dial (877) 870-4263, or outside the U.S. (412)
317-0790, five minutes prior to 1:30 p.m.
Pacific Daylight Time. A live webcast of the call also
will be available at http://investor.move.com under the events and
presentations menu.
An audio replay will be available between 6:30 p.m. Eastern Daylight Time May 6, 2014 and 11:59 p.m.
Eastern Daylight Time May 14,
2014, by calling (877) 344-7529 or (412) 317-0088, with
Conference ID 10044296. An audio archive of the call will
also be available at http://investor.move.com.
Use of Non-GAAP Financial Measures—Adjusted EBITDA and
Non-GAAP 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 expense, income tax expense and
certain other non-cash and non-recurring 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 excluding stock-based
compensation and charges, amortization of intangible assets, and
amortization of debt discount and issuance costs, on a per share
basis, which is referred to as Non-GAAP Earnings Per Share.
Additionally, the Company has presented a non-GAAP table of
Financial Data for the three-month periods ended March 31, 2014 and 2013 that extracts stock-based
compensation and charges. 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 and Non-GAAP Earnings Per Share 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 calculates total average monthly unique users across its
network of websites and mobile applications 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 applications 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.
Forward-Looking Statements
This news 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), a leading provider of online real estate
services, operates realtor.com®, which connects people
to the essential, accurate information needed to identify their
perfect home and to the REALTORS®, whose
expertise guides consumers through buying and selling. As the
official website for the National Association of
REALTORS®, realtor.com® empowers consumers to
make smart home buying, selling and renting decisions by leveraging
its direct, real-time connections with more than 800 multiple
listing services (MLS) via all types of computers, tablets and
smart telephones. Realtor.com® is where home
happens. Move's network of websites provides consumers a
wealth of innovative tools and accurate information including
Doorsteps®, HomeInsightSM,
SocialBiosSM, Moving.com™, SeniorHousingNetSM,
homefairSM and Relocation.com. Move
supports real estate agents and brokerages by providing many
services to grow their businesses—including ListHub™, the
nation's leading syndicator of real estate listings,
TigerLead®, Top Producer®
and FiveStreetSM, as well as many free
services. Move is based in the heart of the Silicon
Valley—San Jose, CA.
REALTOR® and REALTOR.COM® are trademarks
of the National Association of REALTORS® and are
used with its permission. These and all other trademarks used
in this work are the property of their respective owners.
Investor Relations Contact:
Jessica Thorsheim, CFA
Jessica.Thorsheim@move.com
408-558-7149
Media Contact:
Mary A. C. Fallon
Mary.Fallon@move.com
408-558-7191
MOVE,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
$
|
58,013
|
|
$
|
54,238
|
|
|
|
|
|
|
Costs and operating
expenses:
|
|
|
|
|
|
Cost of
revenue(1)(2)
|
|
12,112
|
|
|
10,863
|
Sales and
marketing(1)(2)
|
|
25,393
|
|
|
21,668
|
Product and web site
development(1)
|
|
11,127
|
|
|
9,846
|
General and
administrative(1)
|
|
12,012
|
|
|
11,538
|
Amortization of
intangible assets
|
|
1,297
|
|
|
999
|
Total costs and
operating expenses
|
|
61,941
|
|
|
54,914
|
Loss from
operations
|
|
(3,928)
|
|
|
(676)
|
|
|
|
|
|
|
Interest expense,
net
|
|
(1,567)
|
|
|
(14)
|
Earnings of
unconsolidated joint venture
|
|
825
|
|
|
602
|
Other expense,
net
|
|
(6)
|
|
|
(27)
|
Loss before income
taxes
|
|
(4,676)
|
|
|
(115)
|
|
|
|
|
|
|
Income
tax expense (benefit)
|
|
506
|
|
|
(15)
|
|
|
|
|
|
|
Net loss
|
$
|
(5,182)
|
|
$
|
(100)
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
|
(0.13)
|
|
$
|
(0.00)
|
|
|
|
|
|
|
Shares used to
calculate net loss per share:
|
|
|
|
|
|
Basic and
diluted
|
|
39,011
|
|
|
39,104
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation and charges as follows:
|
|
|
|
|
|
|
Cost of revenue
|
$
|
112
|
|
$
|
102
|
Sales and
marketing
|
|
673
|
|
|
511
|
Product and web site
development
|
|
1,837
|
|
|
580
|
General and
administrative
|
|
1,104
|
|
|
1,430
|
|
$
|
3,726
|
|
$
|
2,623
|
|
|
|
|
|
|
(2) Effective
October 1, 2013, the Company elected to change the presentation of
certain lead acquisition costs and to reclassify these costs from
"Cost of revenue" to "Sales and marketing" within its Consolidated
Statements of Operations in order to be more consistent with
certain of its peers and to combine all traffic acquisition costs
that are not considered directly related to the fulfillment of
products into "Sales and marketing." This had the effect of
decreasing "Cost of revenue" and increasing "Sales and marketing"
expense by $1.8 million, or 3% of revenue, for the three
months ended March 31, 2013.
|
|
MOVE,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
115,651
|
|
$
|
118,679
|
Accounts receivable,
net
|
|
12,002
|
|
|
11,760
|
Other current
assets
|
|
8,830
|
|
|
8,203
|
Total current
assets
|
|
136,483
|
|
|
138,642
|
|
|
|
|
|
|
Property and
equipment, net
|
|
26,600
|
|
|
23,960
|
Investment in
unconsolidated joint venture
|
|
4,572
|
|
|
4,596
|
Goodwill,
net
|
|
41,630
|
|
|
41,630
|
Intangible assets,
net
|
|
23,106
|
|
|
24,403
|
Other
assets
|
|
3,490
|
|
|
3,558
|
Total
assets
|
$
|
235,881
|
|
$
|
236,789
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
7,654
|
|
$
|
5,912
|
Accrued
expenses
|
|
25,338
|
|
|
26,929
|
Deferred
revenue
|
|
7,593
|
|
|
7,783
|
Total current
liabilities
|
|
40,585
|
|
|
40,624
|
|
|
|
|
|
|
Convertible senior
notes
|
|
83,271
|
|
|
82,459
|
Other noncurrent
liabilities
|
|
5,171
|
|
|
4,876
|
Total
liabilities
|
|
129,027
|
|
|
127,959
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Series A convertible
preferred stock
|
|
—
|
|
|
—
|
Common
stock
|
|
40
|
|
|
39
|
Additional paid-in
capital
|
|
2,145,784
|
|
|
2,142,516
|
Accumulated other
comprehensive income
|
|
75
|
|
|
138
|
Accumulated
deficit
|
|
(2,039,045)
|
|
|
(2,033,863)
|
Total stockholders'
equity
|
|
106,854
|
|
|
108,830
|
Total liabilities and
stockholders' equity
|
$
|
235,881
|
|
$
|
236,789
|
|
MOVE,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
$
|
(5,182)
|
|
$
|
(100)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization of property and equipment
|
|
3,044
|
|
|
2,399
|
Amortization of
intangible assets
|
|
1,297
|
|
|
999
|
Amortization of debt
discount and issuance costs
|
|
961
|
|
|
—
|
Provision for
doubtful accounts
|
|
132
|
|
|
99
|
Stock-based
compensation and charges
|
|
3,726
|
|
|
2,623
|
Earnings of
unconsolidated joint venture
|
|
(825)
|
|
|
(602)
|
Return on investment
in unconsolidated joint venture
|
|
849
|
|
|
602
|
Other non-cash
items
|
|
(17)
|
|
|
6
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(374)
|
|
|
(767)
|
Other
assets
|
|
(675)
|
|
|
(988)
|
Accounts payable and
accrued expenses
|
|
413
|
|
|
(38)
|
Deferred
revenue
|
|
(180)
|
|
|
(700)
|
Net cash provided by
operating activities
|
|
3,169
|
|
|
3,533
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(5,731)
|
|
|
(2,868)
|
Return of investment
in unconsolidated joint venture
|
|
—
|
|
|
582
|
Net cash used in
investing activities
|
|
(5,731)
|
|
|
(2,286)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Principal payments on
loan payable
|
|
—
|
|
|
(19)
|
Proceeds from
exercise of stock options
|
|
835
|
|
|
2,259
|
Tax payments related
to net share settlements of equity awards
|
|
(1,301)
|
|
|
(388)
|
Net cash (used in)
provided by financing activities
|
|
(466)
|
|
|
1,852
|
|
|
|
|
|
|
Change in cash and
cash equivalents
|
|
(3,028)
|
|
|
3,099
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
118,679
|
|
|
27,122
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
115,651
|
|
$
|
30,221
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
Cash paid for
interest
|
$
|
1,520
|
|
$
|
—
|
|
MOVE,
INC.
|
REVENUE BY
TYPE
|
(in
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Consumer
advertising
|
$
|
44,775
|
|
$
|
42,148
|
Software and
services
|
|
13,238
|
|
|
12,090
|
Total revenue
|
$
|
58,013
|
|
$
|
54,238
|
|
|
|
|
|
|
Percentage of
revenue
|
|
|
|
|
|
Consumer
advertising
|
|
77%
|
|
|
78%
|
Software and
services
|
|
23%
|
|
|
22%
|
Total
|
|
100%
|
|
|
100%
|
|
MOVE,
INC.
|
RECONCILIATION OF
NET INCOME TO NON-GAAP ADJUSTED EBITDA
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
|
|
|
|
Net loss
|
$
|
(5,182)
|
|
$
|
(100)
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
Stock-based
compensation and charges
|
|
3,726
|
|
|
2,623
|
Depreciation and
amortization of property and equipment
|
|
3,044
|
|
|
2,399
|
Amortization of
intangible assets
|
|
1,297
|
|
|
999
|
Interest expense,
net
|
|
1,567
|
|
|
14
|
Income tax expense
(benefit)
|
|
506
|
|
|
(15)
|
Non-GAAP Adjusted
EBITDA
|
$
|
4,958
|
|
$
|
5,920
|
MOVE,
INC.
|
RECONCILIATION OF
EARNINGS PER SHARE TO NON-GAAP EARNINGS PER SHARE
|
(in
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
|
|
|
|
Net
loss
|
$
|
(5,182)
|
|
$
|
(100)
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
Stock-based
compensation and charges
|
|
3,726
|
|
|
2,623
|
Amortization of
intangible assets
|
|
1,297
|
|
|
999
|
Amortization of debt
discount and issuance costs
|
|
961
|
|
|
—
|
Non-GAAP net
income
|
$
|
802
|
|
$
|
3,522
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
|
(0.13)
|
|
$
|
(0.00)
|
|
|
|
|
|
|
Shares used to
calculate loss per share:
|
|
|
|
|
|
Basic and
diluted
|
|
39,011
|
|
|
39,104
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
$
|
0.02
|
|
$
|
0.09
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share
|
$
|
0.02
|
|
$
|
0.09
|
|
|
|
|
|
|
Shares used to
calculate Non-GAAP earnings per share:
|
|
|
|
|
|
Basic
|
|
39,011
|
|
|
39,104
|
|
|
|
|
|
|
Diluted
|
|
40,995
|
|
|
40,590
|
|
MOVE,
INC.
|
OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION AND CHARGES
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
March 31,
2014
|
|
|
March 31,
2013
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
As
Reported
|
|
Stock-based
Compensation and Charges
|
|
Excluding Stock-based
Compensation and Charges
|
|
|
As
Reported
|
|
Stock-based
Compensation and Charges
|
|
Excluding Stock-based
Compensation and Charges
|
Revenue
|
$
|
58,013
|
$
|
—
|
$
|
58,013
|
|
$
|
54,238
|
$
|
—
|
$
|
54,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
12,112
|
|
(112)
|
|
12,000
|
|
|
10,863
|
|
(102)
|
|
10,761
|
Sales and
marketing
|
|
25,393
|
|
(673)
|
|
24,720
|
|
|
21,668
|
|
(511)
|
|
21,157
|
Product and web site
development
|
|
11,127
|
|
(1,837)
|
|
9,290
|
|
|
9,846
|
|
(580)
|
|
9,266
|
General and
administrative
|
|
12,012
|
|
(1,104)
|
|
10,908
|
|
|
11,538
|
|
(1,430)
|
|
10,108
|
Amortization of
intangible assets
|
|
1,297
|
|
—
|
|
1,297
|
|
|
999
|
|
—
|
|
999
|
Total costs and
operating expenses
|
|
61,941
|
|
(3,726)
|
|
58,215
|
|
|
54,914
|
|
(2,623)
|
|
52,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
$
|
(3,928)
|
$
|
3,726
|
$
|
(202)
|
|
$
|
(676)
|
$
|
2,623
|
$
|
1,947
|
|
MOVE,
INC.
|
AVERAGE MONTHLY
UNIQUE USERS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
One Month Ended March
31,
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unique
users—network
|
30,792
|
|
28,080
|
|
10%
|
|
34,555
|
|
29,729
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
Unique
users—realtor.com®
|
28,900
|
|
25,517
|
|
13%
|
|
32,522
|
|
26,923
|
|
21%
|
SOURCE Move, Inc.