Move, Inc. reported its financial results for the third quarter ended September 30, 2012. The company’s revenue for the quarter was $49.4 million, an increase of $3.0 million, or six percent, from $46.5 million in the third quarter of 2011. Net income applicable to common stockholders was $1.8 million, or $0.04 per diluted share, compared to $242,000, or $0.01 per diluted share, in the third quarter of 2011.
Non-GAAP Adjusted EBITDA was $6.9 million, an increase of $1.3 million, or 24 percent, from $5.5 million in the third quarter of 2011. As a percentage of revenue, Adjusted EBITDA improved to 14 percent of revenue in the third quarter of 2012 compared to 12 percent in the third quarter of 2011. 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.
Steve Berkowitz, chief executive officer of Move, Inc. said, “We continued to make solid progress across our key strategic initiatives, building strength in our core business while expanding our market opportunity through our recent acquisitions of TigerLead Solutions and Relocation.com. We are poised to exit the year in a stronger competitive position, with a broader and more stable product set that offers greater upside potential and with growing consumer engagement metrics that highlight our market leadership. Combined with continued indicators of a slow but steady path to recovery in the housing market, we expect to end the year on a positive note and set the stage for revenue acceleration in 2013.”
- Consumer Engagement — Web: Realtor.com continued to lead the industry in connecting real estate professionals with serious home buyers and sellers. Consumers viewed nearly 1.2 billion pages and spent more than 1.1 billion minutes on the Realtor.com website in the third quarter, with more than 95 percent of that usage occurring on properties for sale. Realtor.com continues to experience significant repeat usage with consumers visiting an average of approximately 4 times per month, nearly 50 percent more than the nearest competitor.
- Consumer Engagement — Mobile Apps: Mobile usage continues to grow dramatically. Page views and leads from mobile apps grew by more than 125 percent year-over-year, and nearly 45 percent of homes viewed across all platforms now occur on mobile apps. Additionally, mobile engagement as measured by pages viewed and leads delivered per user is 6-7x that of the website.
- Realtor.com Site Relaunch: Move recently debuted a site relaunch of Realtor.com that enhances the user experience, makes search more intuitive and increases functionality.
- Collaborative Search: Move’s recent launch of a free co-branded mobile application and collaborative search product for real-estate professionals, has generated extremely positive feedback from the agent community, and usage is climbing steadily.
- 800 Number Tracking System: Move has enhanced its lead tracking capabilities through the launch of a toll-free 800 Number, providing customers with an additional tool to assess the value they are generating from their marketing dollars.
- TigerLead Solutions: In September 2012, Move acquired TigerLead Solutions, a premier lead generation and lead management system for real estate professionals. The newest piece of the Move suite enables real estate professionals to generate, cultivate, and manage “Smarter Leads” and gain deep insights into consumer “DNA” with industry-leading analytics.
- Relocation.com: In October 2012, Move acquired Relocation.com, an online marketplace that connects home buyers and renters with moving and storage professionals. Combining the acquisition with Move’s existing Moving.com business, Move significantly strengthens its offering and creates the clear #1 player in moving services.
For the quarter ending December 31, 2012, Move expects revenue to range between approximately $51.5 million and $52.0 million and expects to report Adjusted EBITDA margin of approximately 15 percent.