Move, Inc. Announces Third Quarter 2010 Financial Results

CAMPBELL, Calif., Nov. 4, 2010 /PRNewswire-FirstCall/ -- Move, Inc. (Nasdaq: MOVE), the leader in online real estate, today reported financial results for the third quarter ended September 30, 2010.

Revenue in the third quarter of 2010 was $50.3 million, compared to $52.9 million in the third quarter of 2009.  Net income applicable to common stockholders, including discontinued operations, was $375,000, or breakeven per share, in the third quarter of 2010 compared to a net loss applicable to common stockholders of $758,000, in the third quarter of 2009. The company generated $8.4 million of cash from operating activities in the third quarter of 2010. Non-GAAP Adjusted EBITDA (earnings from continuing operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) for the third quarter of 2010 was $6.0 million, or 12 percent of revenue, as compared to $6.8 million, or 13 percent of revenue, for the third quarter of 2009.  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.

"In the past year, Move has made significant investments throughout the company to overhaul our technology, streamline our operations, develop an integrated product vision, and foster more solid relationships with our key real estate industry partners.  As we head into the final quarter of 2010, I am pleased to say our business has turned a corner from stabilization to growth," said Steve Berkowitz, chief executive officer at Move, Inc. "In the past few months, we have updated our agreement with the National Association of Realtors and acquired Threewide Corporation, operator of listing syndication leader ListHub.  Recent strategic product releases include the launch of FIND, a new proprietary data base for real estate professionals and Multiple Listing Services, delivery of the newly redesigned Realtor.com, and the launch of our nationally acclaimed iPhone and Android apps.  Move is focused on improving the connection between real estate professionals and consumers and our third quarter results demonstrate our relentless commitment to executing against that objective."

Third Quarter 2010 Highlights:

• Market leadership: Move maintained its leading market position, leading the industry in unique users and total engagement.  In September, the Move Network attracted 13.4 million unique users(1) who spent more than 240 million minutes on our network(1).  Visitors to the Move Network viewed more than 400 million pages, more than the next four competitors combined.  
• Updated operating agreement with National Association of Realtors (NAR): Move and NAR updated their 14-year-old operating agreement to drive more competitive and rapid innovations to Realtor.com.  The updated operating agreement now provides provisions intended to streamline the development and delivery process for improvements to site features and functionalities, as well as clarifies certain areas of content now requiring NAR approval.  
• Acquisition of ListHub: Move acquired Threewide Corp., operator of ListHub, the nation's largest online real estate listing syndicator and provider of advanced performance reporting solutions for brokers, real estate franchises, multiple listing services (MLSs) and real estate web sites. ListHub products and services include syndication of 2.4 million property listings from 270+ MLSs and 38,000 brokers to more than 70 real estate marketing web sites, as well as streamlined data management and reporting analysis used to monitor online listing performance.
• iPhone and Android highlight: Move launched the Realtor.com Real Estate Search Android application this week, building on the success of Move's Realtor.com iPhone app launched in January of this year.  In the past 10 months, the Realtor.com iPhone app has been downloaded 2.5 million times with users viewing approximately 8 million Listing Detail Pages.  
• Launch of FIND: FIND is a sophisticated search engine designed to help MLSs provide their subscribers with fast, flexible and easy access to their data and Move's real estate content. Designed as a research tool for real estate professionals, FIND delivers robust, comprehensive and continually refreshed data in a manner designed to become a value-added search and data research solution for real estate professionals that's customized to fit each subscriber's local marketing needs. In addition, FIND subscribers have access to all active listings nationwide, and additional status information including sold, off market, and pending sales from other MLSs using the FIND application -- all accessed through an intuitive and natural-language search experience.
• Full release of Realtor.com: Move launched a redesigned Realtor.com web site backed by new technology that combines multiple search capabilities into an integrated and seamless search experience to help consumers find their next property faster while connecting with greater ease to local real estate experts matching their needs. Powered by a new platform built with proprietary technology and a new property database, the #1 homes for sale web site is now easier to navigate, and property listings and information important to the home buying process are easier to find while remaining fresh, accurate and reliable.
• Renewed MSN content agreement: With the recently renewed agreement, MSN visitors interested in searching for real estate can continue to access millions of property listings and relevant information from the Move Network by going to the Money tab located on the MSN homepage, and selecting Real Estate & Rentals. All combined, the Move Network and MSN Real Estate reach more than 19.6 million consumers per month who are searching online real estate sites.

Business Outlook

Move today provided guidance for the fourth quarter ending December 31, 2010.  For the quarter ending December 31, 2010, Move expects revenue to range between $49.0 - $50.0 million and expects to report Adjusted EBITDA margin of approximately 12 percent. For the fiscal year ending December 31, 2010, this equates to revenue guidance of approximately $198 million, with an Adjusted EBITDA target of approximately 11 percent.

Conference Call

As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Thursday, November 4, 2010, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).  In order to participate in the call, please dial (877) 312-5848, or if outside the U.S., (253) 237-1155, at least five minutes prior to the 1:30 p.m. PT start time.  A live webcast and replay of the call will also be available at http://investor.move.com under the Events & Presentations menu.  An audio replay will be available between 7:30 p.m. ET, November 4, 2010, and 11:59 p.m. ET, November 18, 2010, by calling (800) 642-1687, or (706) 645-9291, with passcode 16022455.

For additional information regarding the Company's results, please go to the "SEC Filings" section at http://investor.move.com to view our annual report as filed on March 5, 2010 with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2009.  Move's Form 10-Q for the quarter ended September 30, 2010 is expected to be filed with the Securities and Exchange Commission on, or before, November 8, 2010.

Use of Non-GAAP Financial Measures

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 income (loss) from continuing operations excluding interest income, net, provision for income taxes, impairment of auction rate securities and litigation settlement charges and certain other non-cash and non-recurring items, principally depreciation, amortization and stock-based compensation and other charges, which is referred to as Adjusted EBITDA. The Company has also presented a non-GAAP table of Financial Data for the three and nine month periods ended September 30, 2010 and 2009 that extracts stock-based compensation under ASC Topic 718 "Compensation – Stock Compensation."  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 a more consistent basis for comparison between quarters and should be carefully evaluated.

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) is the leader in online real estate with 13.4(1) million monthly visitors to its online network of web sites. Move, Inc. operates: Move.com, a leading destination for information on new homes and rental listings, moving, home and garden and home finance; Realtor.com(R), the official web site of the National Association of Realtors(R); Moving.com; SeniorHousingNet; Top Producer Systems, and ListHub. Move, Inc. is based in Campbell, California.  

(1) comScore Media Metrics, September 2010

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SOURCE Move, Inc.