Move, Inc. reported its financial results for the fourth quarter and fiscal year ended December 31, 2012.
Revenue for the quarter was $52.7 million, an increase of $5.5 million, or 12 percent, from $47.3 million in the fourth quarter of 2011. Net income applicable to common stockholders was $1.6 million, or $0.04 per diluted share, compared to $3.4 million, or $0.09 per diluted share, in the fourth quarter of 2011. Net income applicable to common stockholders was reduced by $.02 per diluted share as a result of incremental amortization related to two acquisitions the company made during the year. Non-GAAP Adjusted EBITDA was $7.8 million, a decrease of $0.8 million, or 10 percent, from $8.6 million in the fourth quarter of 2011. As a percentage of revenue, Adjusted EBITDA improved to 15 percent of revenue in the fourth quarter of 2012 compared to 14 percent in the third quarter of 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.
Steve Berkowitz, chief executive officer of Move said, "Move finished the year strongly, setting the stage for double-digit revenue growth in 2013. We executed very well across our core strategic initiatives in 2012 by improving the content and experience for consumers, enhancing our product offerings to customers, strengthening our role as a key partner to the real estate industry, and innovating to capitalize on the rapid consumer migration to mobile. Leveraging our expanding assets for consumers and customers, Move has laid the foundation to accelerate growth and expand profitably in 2013 and beyond. Through our consumer advertising and proprietary software and services products, we are uniquely poised to provide an end-to-end solution for the industry based on our ability to serve the entire supply chain."
For the quarter ending March 31, 2013, Move expects revenue of approximately $53.5-54.0 million and expects to report Adjusted EBITDA margin of approximately 11-12 percent.
For the year ending December 31, 2013, Move expects revenue to range between $222 million and $226 million and expects to report Adjusted EBITDA margin of approximately 15 percent.
Analyst & Investor Day Information
Move will host an Analyst and Investor Day on March 12, 2013 at the Eventi Hotel in New York City. Key members of the senior management team will host a series of presentations beginning at 1:30 p.m. Eastern Daylight Time, providing insight into the business and strategic initiatives for 2013 and beyond. Financial analysts and investors may register to attend by contacting Marta Nichols by email at [email protected]. Space is limited and pre-registration is required for admittance to the event.
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 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 other charges, which is referred to as Adjusted EBITDA. The Company has also presented a non-GAAP table of Financial Data for the three- and twelve-month periods ended December 31, 2012 and 2011 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 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.