Move, Inc. has reported financial results for the fourth quarter ended December 31, 2013. The report revealed that, Move's Fourth Quarter Revenue increased 7% year-over-year to $56.5 million, and Consumer Advertising revenue increased 6% year-over-year to $43.5 million.
"Our achievements in 2013, including technology integrations, new content offerings and strategic acquisitions, have laid the foundation to make 2014 what we believe will be a groundbreaking year—for delivering outstanding performance and reaching new heights of innovation for our industry clients, buyers and sellers," said Steve Berkowitz, CEO of Move. "Leveraging our comprehensive consumer experience, deep industry ties and unparalleled quality of data content enables us to provide the most superior and trustworthy customer experience for REALTORS® and consumers alike."
Fourth Quarter 2013 Financial Results
Revenue for the quarter was $56.5 million, an increase of $3.7 million, or 7%, from $52.7 million in the fourth quarter of 2012. Revenue from Consumer Advertising products increased 6% to $43.5 million in the fourth quarter of 2013 compared to the same period in 2012. Revenue from Software and Services products increased 12% to $12.9 million compared to the fourth quarter of 2012.
Non-GAAP Adjusted EBITDA ("Adjusted EBITDA") was $7.7 million in the fourth quarter of 2013 compared to $7.8 million in the fourth quarter of 2012. As a percentage of revenue, Adjusted EBITDA was 14% in the fourth quarter of 2013. Non-GAAP Earnings Per Share was $0.11 per diluted share in the fourth quarter of 2013 compared to $0.13 per diluted share in the fourth quarter of 2012. Move 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.
Cash provided by operating activities was $11.9 million and $10.3 million for the quarters ended December 31, 2013 and 2012, respectively.
Operating and Business Results
For the quarter ending March 31, 2014, Move expects revenue of approximately $58 million and expects to report Adjusted EBITDA of approximately $5 million.
For the year ending December 31, 2014, Move expects revenue of $254–$258 million and expects to report Adjusted EBITDA of approximately $30 million.
An audio replay will be available between 2:30 p.m. Pacific Standard Time February 13, 2014 and 6:00 a.m. Pacific Standard Time February 21, 2014, by calling (877) 344-7529 or (412) 317-0088, with Conference ID 10039382. 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 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, 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- and twelve-month periods ended December 31, 2013 and 2012 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.
Move 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. Prior to the first quarter of 2013, we reported unique users using comScore measurements, rather than internal calculations.
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™; Doorsteps®; TigerLead®; Top Producer® Systems and FiveStreet™. Move, Inc. is based in San Jose, California.
For the complete 4Q 2013 report, click here.
Source: Move, Inc.
Edited by Gordana Davila