Move Grows Q2 Revenue 7% DELIVERS GROWTH FOR NINE CONSECUTIVE QUARTERS

SAN JOSE, Calif., July 29, 2014 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the leader in providing consumers the most accurate U.S. residential listings online, today reports a 7% revenue increase year-over-year for the second quarter ended June 30, 2014, marking nine consecutive quarters of growth.

Second Quarter 2014 Highlights

  • Increased revenue 7% year-over-year to $61.3 million;
  • Increased Consumer Advertising revenue 6% year-over-year to $47.4 million;
  • Increased Software and Services revenue 8% year-over-year to $13.9 million;
  • Non-GAAP Adjusted EBITDA was $3.1 million compared to $7.0 million in the prior year; and
  • Average monthly unique users of realtor.com®'s web and mobile sites grew 18% year-over-year to 31.2 million in the second quarter.

"Once again, our team succeeded in significantly growing our business and strengthening our bonds with consumers and real estate professionals through creative campaigns and products," said Steve Berkowitz, Move's chief executive officer.  "There is enormous value to be created in this business.  We believe that because our platform is populated with better content from actual realtors, there is huge opportunity ahead of us."

Second Quarter 2014 Financial Results
Despite a dedicated denial of service attack ("DDoS") that disrupted our websites for several days, revenue for the quarter was $61.3 million, an increase of $3.8 million, or 7%, from $57.5 million in the second quarter of 2013.  Absent the impact of the DDoS attack, we estimate that revenue could have been closer to $62 million.   Revenue from Consumer Advertising products increased 6% to $47.4 million in the second quarter of 2014 compared to the same period in 2013.  Revenue from Software and Services products increased 8% to $13.9 million compared to the second quarter of 2013.

Non-GAAP Adjusted EBITDA ("Adjusted EBITDA") was $3.1 million in the second quarter of 2014 compared to $7.0 million in the second quarter of 2013.  We estimate that, without the DDoS attack, Adjusted EBITDA could have been closer to $4 million.  The decrease in Adjusted EBITDA was a direct result of the anticipated increased investment in our Accuracy Matters marketing campaign.  As a percentage of revenue, Adjusted EBITDA was 5% in the second quarter of 2014.  Non-GAAP Loss Per Share was $0.03 per diluted share in the second quarter of 2014 compared to Non-GAAP Earnings Per Share of $0.11 per diluted share in the second quarter of 2013.  Move has reported Adjusted EBITDA and Non-GAAP Earnings/(Loss) 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 $2.6 million and $6.7 million for the quarters ended June 30, 2014 and 2013, respectively.

Operating and Business Results

  • Successfully launched changes to the ConnectionSM for Co-Brokerage business model to optimize page yield, improve the consumer experience and sell homes faster;
  • Launched phase two of our brand advertising campaign on national television promoting Accuracy Matters;
  • Gained greater support from the National Association of REALTORS® through their new accuracy advertising campaign, which will double the reach and frequency for the realtor.com® brand;
  • Launched a mobile mortgage application, co-sponsored by BankrateTM, reflecting our effort to put the most important information at consumers' fingertips;
  • Added new home listings to our mobile applications allowing consumers to access nearly 60,000 new-home plans from approximately 7,500 new-home communities;
  • Grew ListHub™ MLS connections by more than 40 new MLSs since the beginning of the year for a total of more than 500 data sources, or 70% of residential listings in the country;
  • Created stronger industry bonds by placing talented veterans in lead positions, including the promotion of Luke Glass, executive vice president of industry platforms, and hiring our first Chief Economist Jonathan Smoke; and
  • Successful recovery from a distributed denial of service attack that intermittently interrupted our websites for several days.

Business Outlook
For the quarter ending September 30, 2014, Move expects revenue of approximately $65 million and expects to report Adjusted EBITDA of approximately $4.5 million.

For the year ending December 31, 2014, Move expects revenue of $252 million to $254 million, and expects to report Adjusted EBITDA of approximately $28 million.

Conference Call
Move will host a conference call broadcast  today, Tuesday, July 29, 2014 at 1:30 p.m. Pacific Daylight Time (4:30 p.m. Eastern Daylight Time).  To access the call, please dial (877) 870-4263, or outside the U.S. (412) 317-0790, five minutes prior to 1:30 p.m. Pacific Daylight Time.  A live webcast of the call also will be available at http://investor.move.com under the Events & Presentations menu.

An audio replay will be available between 6:30 p.m. Eastern Daylight Time July 29, 2014 and 11:59 p.m. Eastern Daylight Time August 7, 2014, by calling (877) 344-7529 or (412) 317-0088, with Conference ID 10048797.  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/(Loss) 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/(Loss) Per Share.  Additionally, the Company has presented a non-GAAP table of Financial Data for the three- and six-month periods ended June 30, 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/(Loss) 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.

Unique Users
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.  

Forward-Looking Statements
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™, homefairSM, SeniorHousingNetSM, and Relocation.com.  Move supports real estate agents and brokerages by providing many services to grow their businesses, including ListHub™, the nation's leading listing syndicator and centralized intelligence platform for the real estate industry; TigerLead®; Top Producer® Systems; 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.

Investor Relations Contact:
Jessica Thorsheim, CFA
Jessica.Thorsheim@move.com
408-558-7149

Media Contact:
Mary A. C. Fallon
Mary.Fallon@move.com
408-558-7191
408-499-4063 mobile

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)


























Three Months Ended June 30,


Six Months Ended June 30,


2014


2013


2014


2013


(unaudited)


(unaudited)













Revenue

$

61,319


$

57,490


$

119,332


$

111,728













Costs and operating expenses:












 Cost of revenue(1)(2)


12,732



11,790



24,844



22,653

Sales and marketing(1)(2)


30,047



22,980



55,440



44,648

Product and web site development(1)


10,342



9,583



21,469



19,429

General and administrative(1)


12,287



11,985



24,299



23,523

Amortization of intangible assets 


1,199



1,063



2,496



2,062

Total costs and operating expenses


66,607



57,401



128,548



112,315

(Loss) income from operations


(5,288)



89



(9,216)



(587)













Interest expense, net 


(1,647)



(13)



(3,214)



(27)

Earnings of unconsolidated joint venture


895



463



1,720



1,065

Other expense, net


(51)



(8)



(57)



(35)

(Loss) income before income taxes


(6,091)



531



(10,767)



416













   Income tax expense


202



65



708



50













Net (loss) income

$

(6,293)


$

466


$

(11,475)


$

366













Basic net (loss) income per share 

$

(0.16)


$

0.01


$

(0.29)


$

0.01













Diluted net (loss) income per share 

$

(0.16)


$

0.01


$

(0.29)


$

0.01













Shares used to calculate net (loss) income per share:












Basic


39,444



39,480



39,228



39,293

Diluted


39,444



41,428



39,228



40,950

























(1) Includes stock-based compensation and charges as follows:



















     Cost of revenue

$

111


$

85


$

223


$

187

     Sales and marketing


703



587



1,376



1,098

     Product and web site development


978



747



2,815



1,327

     General and administrative


1,190



1,457



2,294



2,887


$

2,982


$

2,876


$

6,708


$

5,499


(2)  Effective October 1, 2013, the Company elected to change the presentation of certain lead acquisition costs and to reclassify these costs from "Cost of revenue" to "Sales and marketing" within its Consolidated Statements of Operations in order to be more consistent with certain of its peers and to combine all traffic acquisition costs that are not considered directly related to the fulfillment of products into "Sales and marketing."  This had the effect of decreasing "Cost of revenue" and increasing "Sales and marketing" expense by $2.0 million and $3.8 million, or 4% and 3% of revenue, for the three and six months ended June 30, 2013, respectively.  

 

 

 

MOVE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)















June 30,



December 31,



2014



2013



(unaudited)




ASSETS






Current assets:






Cash and cash equivalents

$

117,310


$

118,679

Accounts receivable, net


11,126



11,760

Other current assets


9,440



8,203

Total current assets


137,876



138,642







Property and equipment, net


27,094



23,960

Investment in unconsolidated joint venture


5,467



4,596

Goodwill, net


41,630



41,630

Intangible assets, net


21,917



24,403

Other assets 


3,460



3,558

Total assets 

$

237,444


$

236,789







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities: 






Accounts payable 

$

7,292


$

5,912

Accrued expenses 


26,524



26,929

Deferred revenue 


7,430



7,783

Total current liabilities 


41,246



40,624







Convertible senior notes


84,088



82,459

Other noncurrent liabilities


5,589



4,876

Total liabilities 


130,923



127,959







Stockholders' equity: 






Series A convertible preferred stock




Common stock 


40



39

Additional paid-in capital 


2,151,693



2,142,516

Accumulated other comprehensive income


126



138

Accumulated deficit


(2,045,338)



(2,033,863)

Total stockholders' equity


106,521



108,830

Total liabilities and stockholders' equity

$

237,444


$

236,789

 

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)














Six Months Ended June 30,


2014


2013


(unaudited)

Cash flows from operating activities:






Net (loss) income

$

(11,475)


$

366

Adjustments to reconcile net (loss) income to net cash provided by operating activities:






Depreciation and amortization of property and equipment


6,393



4,918

Amortization of intangible assets


2,496



2,062

Amortization of debt discount and issuance costs


1,927



Provision for doubtful accounts


242



271

Stock-based compensation and charges


6,708



5,499

Earnings of unconsolidated joint venture


(1,720)



(1,065)

Return on investment in unconsolidated joint venture


849



602

Other non-cash items


(52)



19

Changes in operating assets and liabilities:






Accounts receivable


392



(1,474)

Other assets


(1,274)



(1,284)

Accounts payable and accrued expenses


1,641



1,192

Deferred revenue 


(351)



(835)

Net cash provided by operating activities


5,776



10,271







Cash flows from investing activities:






Purchases of property and equipment


(9,487)



(6,394)

Acquisitions, net of cash acquired




(2,250)

Return of investment in unconsolidated joint venture




582

Other investing activities


(10)



Net cash used in investing activities


(9,497)



(8,062)







Cash flows from financing activities:






Principal payments on loan payable




(19)

Proceeds from exercise of stock options


4,080



4,343

Tax payments related to net share settlements of equity awards


(1,728)



(647)

Repurchase of common stock




(1,010)

Net cash provided by financing activities


2,352



2,667







Change in cash and cash equivalents


(1,369)



4,876







Cash and cash equivalents, beginning of period


118,679



27,122







Cash and cash equivalents, end of period

$

117,310


$

31,998







Supplemental disclosures of cash flow information:






Cash paid for interest

$

1,520


$

 

 

 

MOVE, INC.

REVENUE BY TYPE

(in thousands)














Three Months Ended June 30,


Six Months Ended June 30,


2014


2013


2014


2013


(unaudited)


(unaudited)













Revenue












  Consumer advertising

$

47,405


$

44,570


$

92,180


$

86,718

  Software and services


13,914



12,920



27,152



25,010

    Total revenue

$

61,319


$

57,490


$

119,332


$

111,728













Percentage of revenue












  Consumer advertising


77%



78%



77%



78%

  Software and services


23%



22%



23%



22%

    Total


100%



100%



100%



100%

 

 

 

MOVE, INC.

RECONCILIATION OF NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)


























Three Months Ended June 30,


Six Months Ended June 30,


2014


2013


2014


2013


(unaudited)


(unaudited)













Net (loss) income

$

(6,293)


$

466


$

(11,475)


$

366













Plus: 












Stock-based compensation and charges


2,982



2,876



6,708



5,499

Depreciation and amortization of property and equipment


3,349



2,519



6,393



4,918

Amortization of intangible assets


1,199



1,063



2,496



2,062

Interest expense, net


1,647



13



3,214



27

Income tax expense 


202



65



708



50

Non-GAAP Adjusted EBITDA

$

3,086


$

7,002


$

8,044


$

12,922





















































































MOVE, INC.

RECONCILIATION OF (LOSS) EARNINGS PER SHARE TO NON-GAAP (LOSS) EARNINGS PER SHARE

(in thousands)














Three Months Ended June 30,


Six Months Ended June 30,


2014


2013


2014


2013


(unaudited)


(unaudited)













Net (loss) income

$

(6,293)


$

466


$

(11,475)


$

366













Plus: 












Stock-based compensation and charges


2,982



2,876



6,708



5,499

Amortization of intangible assets


1,199



1,063



2,496



2,062

Amortization of debt discount and issuance costs


966





1,927



Non-GAAP net (loss) income 

$

(1,146)


$

4,405


$

(344)


$

7,927

























Basic and diluted (loss) income per share

$

(0.16)


$

0.01


$

(0.29)


$

0.01













Non-GAAP basic (loss) earnings per share

$

(0.03)


$

0.11


$

(0.01)


$

0.20













Non-GAAP diluted (loss) earnings per share

$

(0.03)


$

0.11


$

(0.01)


$

0.19













Shares used to calculate (loss) income per share:












Basic


39,444



39,480



39,228



39,293













Diluted


39,444



41,428



39,228



40,950

 

 

 

MOVE, INC.

OPERATING RESULTS NET OF STOCK-BASED COMPENSATION AND CHARGES

(in thousands)































Three Months Ended



Three Months Ended



June 30, 2014



June 30, 2013



(unaudited)



(unaudited)



As Reported


Stock-based Compensation and Charges


Excluding Stock-based Compensation and Charges



As Reported


Stock-based Compensation and Charges


Excluding Stock-based Compensation and Charges

Revenue

$

61,319

$

$

61,319


$

57,490

$

$

57,490















Costs and operating expenses:














Cost of revenue


12,732


(111)


12,621



11,790


(85)


11,705

Sales and marketing


30,047


(703)


29,344



22,980


(587)


22,393

Product and web site development


10,342


(978)


9,364



9,583


(747)


8,836

General and administrative


12,287


(1,190)


11,097



11,985


(1,457)


10,528

Amortization of intangible assets


1,199



1,199



1,063



1,063

Total costs and operating expenses


66,607


(2,982)


63,625



57,401


(2,876)


54,525















Operating (loss) income

$

(5,288)

$

2,982

$

(2,306)


$

89

$

2,876

$

2,965































Six Months Ended



Six Months Ended



June 30, 2014



June 30, 2013



(unaudited)



(unaudited)



As Reported


Stock-based

Compensation

and Charges


Excluding

Stock-based

 Compensation

 and Charges



As Reported


Stock-based Compensation and Charges


Excluding Stock-based Compensation and Charges

Revenue

$

119,332

$

$

119,332


$

111,728

$

$

111,728















Costs and operating expenses:














Cost of revenue


24,844


(223)


24,621



22,653


(187)


22,466

Sales and marketing


55,440


(1,376)


54,064



44,648


(1,098)


43,550

Product and web site development


21,469


(2,815)


18,654



19,429


(1,327)


18,102

General and administrative


24,299


(2,294)


22,005



23,523


(2,887)


20,636

Amortization of intangible assets


2,496



2,496



2,062



2,062

Total costs and operating expenses


128,548


(6,708)


121,840



112,315


(5,499)


106,816















Operating (loss) income

$

(9,216)

$

6,708

$

(2,508)


$

(587)

$

5,499

$

4,912

 

 

 

MOVE, INC.

AVERAGE MONTHLY UNIQUE USERS

(in thousands)
















Three Months Ended June 30,


Six Months Ended June 30,



2014


2013


% Change


2014


2013


% Change



(unaudited)




(unaudited)
















Unique users—network


33,056


28,782


15%


31,725


28,431


12%














Unique users—realtor.com®


31,182


26,443


18%


29,865


25,980


15%

SOURCE Move, Inc.



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