Market Leader, Inc. announced results for the first quarter ended March 31, 2012.
The company demonstrated continued financial progress throughout 1Q, including:
- Revenue growth for the ninth consecutive quarter to $10.2 million — a 41% increase compared to the first quarter of last year
- Net loss reduced to $2.5 million from $4.3 million a year ago
- Adjusted EBITDA loss cut nearly in half from the previous quarter to $400,000, and reduced from a loss of $3.3 million a year ago
New Strategic Partnerships Expected to Drive Continued Growth
In the first quarter, Market Leader announced new strategic partnerships with two real estate franchise networks. Century 21 Real Estate LLC, franchisor of the world’s largest real estate sales organization, chose Market Leader to provide its network of sales professionals with a new, state-of-the art marketing and CRM platform. Additionally, Better Homes and Gardens Real Estate LLC chose Market Leader to provide customized and best-of-breed technology to their network of 7,000 brokers and agents across the United States.
Market Leader Customer Success Driving Industry Demand for Enterprise-Wide Technology Platforms
These new partnerships build upon Market Leader’s proven expertise in deploying enterprise-wide software platforms to leading franchise networks and brokerage companies. These enterprise customers are seeing the benefits that Market Leader’s comprehensive, integrated solutions can provide in helping them recruit and retain top sales professionals.
Market Leader’s success with leading franchisors and brokerages is changing the nature of competition for companies providing technology services to the real estate industry. While most providers sell and deliver point solutions directly to individual agents and brokers, Market Leader is now partnering with leading brokerages to drive broad adoption of its unparalleled software platform network-wide. This innovative approach has positioned Market Leader at the forefront of the trend towards enterprise-level deployment while reducing the need for individual associates to deploy their own technology solutions. At the same time, Market Leader’s success with this approach is enabling the company to market additional value-added services to these sales professionals without incurring the traditional costs of new customer acquisition.
“Technology is emerging as the currency of choice for industry leading firms looking to recruit and retain sales professionals, and to help them become more productive. Increasingly, leading franchise networks and brokerage companies are attracted to our award-winning platform, as well as our proven ability to drive broad, franchise-wide adoption and improved productivity,” said CEO Ian Morris.
Enterprise Partnerships Extend Unmatched Access to Real Estate Professionals
These new strategic partnerships will further extend Market Leader’s already unmatched access to real estate professionals. Market Leader’s software is currently used by more than 100,000 customers, a five-fold increase in just over a year. This growing customer base, together with our ActiveRain community — the largest social network for real estate professionals with more than 200,000 members — gives Market Leader access to nearly a third of all real estate professionals in North America. This broad reach provides Market Leader with opportunities to market premium software and value-added marketing solutions to these real estate professionals.
Adjusted EBITDA Profit Expected for 2012
The company’s strong first quarter operating results reinforce previously stated expectations that Market Leader will achieve positive Adjusted EBITDA by the end of the first half of 2012 and for the full year. The company’s new strategic partnerships, as well as its RealEstate.com product, are expected to drive further revenue growth in the second half of 2012, and serve as catalysts for continued revenue and EBITDA growth in 2013 and beyond.
The company will host a conference call and live Webcast to discuss first quarter results on Tuesday, May 1, 2012 at 4:30 p.m. Eastern time. To listen to the live conference call, please dial (719) 457-2657. A live Webcast of the call will be available on the Investor Relations section of the company’s Web site at www.investor.marketleader.com. An audio replay of the call will also be available to investors beginning on May 1 at 7:30 p.m. Eastern time and ending on May 6 at 7:30 p.m. Eastern time by dialing (719) 457-0820 and entering the passcode 8512994#.
About Market Leader, Inc.
Market Leader, founded in 1999, provides innovative online technology and marketing solutions for real estate professionals across the United States and Canada. The company serves more than 100,000 real estate agents, brokerages and franchisors, offering complete end-to-end solutions that enable them to grow and manage their businesses. Market Leader’s subscription-based real estate marketing software — including websites, contact management, a marketing center, and lead generation services — helps customers generate a steady stream of prospects, plus provides the systems and training they need to convert those prospects into clients. In addition, the company’s national consumer real estate sites, including www.RealEstate.com, give its customers access to millions of future home buyers and sellers, while providing consumers with free access to the information they seek.
For more information on Market Leader visit www.MarketLeader.com.
This release contains forward-looking statements relating to the company’s anticipated plans, products, services, and financial performance. The words “believe,” “expect,” “anticipate,” “intend” and similar expressions identify forward-looking statements, but their absence does not mean the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect the company’s actual results include its ability to retain and increase its customer base, to continue to grow revenues, to respond to competitive threats and real estate market conditions, to develop new products, and to develop new revenue sources from its RealEstate.com assets. Please refer to the company’s most recent Form 10-K filed with the Securities and Exchange Commission for a more detailed description of these and other risks that could materially affect actual results. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of today’s date and the company assumes no obligation to update any such statements to reflect events or circumstances after the date hereof.
Adjusted EBITDA is a non-GAAP financial measure provided as a complement to results in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA is not a substitute for measures determined in accordance with GAAP, and may not be comparable to Adjusted EBITDA as reported by other companies. Our use of the term “Adjusted EBITDA” refers to a financial measure defined as earnings or loss before net interest, income taxes, depreciation, amortization, net loss attributable to non-controlling interest, contract termination charge and stock-based compensation. We believe Adjusted EBITDA to be relevant and useful information to our investors as this measure is an integral part of our internal management reporting and planning process and is the primary measure used by our management to evaluate operating performance. Following is the reconciliation of net loss, the most comparable GAAP measure, to Adjusted EBITDA, for each of the periods presented (in thousands, unaudited):
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