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.
"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.
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.
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.
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.
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.