Move, Inc. Reports First Quarter 2013 Financial Results Q1 revenue $54.2 million — growth of 14% year-over-year, highest growth in six years

Mobile app page views up over 100% year-over-year

Launches "Find-it First" marketing campaign

SAN JOSE, Calif., May 2, 2013 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the leader in online real estate, today reported financial results for the first quarter ended March 31, 2013.

First Quarter 2013 Highlights

  • Q1 Revenue increased 14% to $54.2 million, the highest quarterly year-over-year growth in over six years
  • Q1 2013 represented the sixth consecutive quarter of sequential revenue growth
  • Consumer Advertising revenue increased 7% year-over-year to $42.1 million
  • Software and Services revenue increased 46% year-over-year to $12.1 million
  • Non-GAAP Adjusted EBITDA of $5.9 million, grew by $0.5 million or 9% year-over-year
  • Average monthly unique users of Move's web and mobile sites grew 10% year-over-year to more than 28 million in the first quarter
  • Mobile app page views grew significantly, up over 100% year-over-year in Q1, while page views on the web also rose by 3% year-over-year.  Mobile app user engagement is 7x higher than the still-strong engagement on Move's web-based offerings 
  • Realtor.com delivered 30% more leads in Q1, driven by nearly 100% increase in leads from mobile applications year-over-year

"We are very pleased that our Q1 results reflect both increasing strength in the real estate market and our team's efforts to position Move for growth," said Steve Berkowitz, chief executive officer of Move. "Move is the only company in our space with products and services that satisfy the entire value chain of this real estate business, from content to connection to close."

First Quarter 2013 Financial Results
Revenue for the quarter was $54.2 million, an increase of $6.5 million, or 14%, from $47.7 million in the first quarter of 2012.  Revenue from Consumer Advertising products increased 7% to $42.1 million in the first quarter of 2013 compared to the same period in 2012.  Revenue from Software and Services products increased 46% to $12.1 million compared to the first quarter of 2012.

Net loss applicable to common stockholders was $0.1 million, or $0.00 per diluted share, compared to a net loss of $0.1 million, or $0.00 per diluted share, in the first quarter of 2012.  Non-GAAP Earnings Per Share ("Adjusted Earnings Per Share") was $0.09 per diluted share in the first quarter of 2013, compared to $0.07 per diluted share in the first quarter of 2012.  Non-GAAP Adjusted EBITDA ("Adjusted EBITDA") was $5.9 million, an increase of $0.5 million, or 9%, from $5.4 million in the first quarter of 2012.  As a percentage of revenue, Adjusted EBITDA was 11% of revenue in the first quarters of 2013 and 2012.  Move 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.

Cash provided by operating activities was $3.5 million and $4.1 million for the quarters ended March 31, 2013 and 2012, respectively.

Operating and Business Results

  • Average monthly unique users grew 10% to more than 28 million in the first quarter of 2013, compared to 25.6 million for the same period in 2012.  Mobile app users grew over 60% in Q1 and accounted for nearly 50% of all listing detail pages viewed in the quarter.
  • Move recently launched the first search by school functionality in the industry, enabling homebuyers to target listings based on school and district boundaries on the realtor.com® mobile application.  The app also boasts an array of updated capabilities, including new, intuitive navigation elements and an enhanced map experience.
  • In Q1, realtor.com® launched a new logo, tagline, and an entirely different look and feel across all the realtor.com® platforms including its website and mobile devices.
  • To support this brand refresh, realtor.com® began its first comprehensive marketing campaign, "Find it First," highlighting the Company's commitment and dedication to helping consumers find the home of their dreams and facilitating authentic connections between consumers and REALTORS®.
  • Today, Move announced the acquisition of certain assets of ABC Holdings, LLC, which previously operated Doorsteps. Doorsteps helps consumers navigate the home buying process very early in the journey.  Doorsteps promotes deep collaboration between real estate consumers and professionals, enabling consumers to assemble a complete dossier of information they will need and use as they step through buying a home for the first time.   
  • In September of 2012, Move acquired TigerLead, a premier lead generation and lead management system for real estate professionals. In the first quarter of 2013, TigerLead outperformed expectations by adding more new customers than in any prior quarter and achieved higher growth rates than planned.  

Share Repurchase Program
Move also announced that its Board of Directors has authorized a two year, $20 million stock repurchase program.  Under the stock repurchase program, Move may purchase stock in the open market and privately negotiated transactions, at times and in such amounts as management deems appropriate.  Move is not obligated to repurchase any specific number of shares under the program, which may be limited or terminated at any time without prior notice.

Business Outlook
For the quarter ending June 30, 2013, Move expects revenue of approximately $56.0–$56.5 million and expects to report Adjusted EBITDA of approximately $6.5 million.

For the year ending December 31, 2013, Move expects improved revenue of approximately $224.0-$226.0 million and expects to report Adjusted EBITDA margin of approximately 14%.

Conference Call
As previously announced, Move will host a conference call, which will be broadcast live over the Internet today, Thursday, May 2, 2013.  To access the call, please dial (877) 312-5848, or outside the U.S. (253) 237-1155, five minutes prior to 2:00 p.m. Pacific Daylight Time.  A live webcast of the call will also be available at http://investor.move.com under the Events & Presentations menu.

An audio replay will be available between 5:00 p.m. Pacific Daylight Time May 2, 2013, and 8:59 p.m. Pacific Daylight Time May 6, 2013, (855) 859-2056 or (404) 537-3406, with Conference ID 33638883.  A replay of the call will also be available at http://investor.move.com.

Use of Non-GAAP Financial Measures—Adjusted EBITDA and Adjusted 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 income, income tax expense and certain other noncash and nonrecurring 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 applicable to common shareholders excluding convertible preferred stock dividends and related accretion, amortization of intangible assets and stock-based compensation and charges, on a per share basis, which is referred to as Adjusted Earnings Per Share.  Additionally, the Company has presented a non-GAAP table of Financial Data for the three-month periods ended March 31, 2013 and 2012 that extracts stock-based compensation and charges 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 provide a more consistent basis for comparison between quarters and should be carefully evaluated.  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.

Unique Users
Move Inc. calculates total average monthly unique users across its network of websites and mobile apps 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 apps 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.  Before the date of this press release, we reported unique users using comScore measurements, rather than internal calculations.

Forward-Looking Statements
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), the leader in online real estate, operates:  realtor.com®, the official website of the National Association of REALTORS®; Move.com, a leading destination for new homes and rental listings, moving, home and garden, and home finance; ListHub, the leading syndicator of real estate listings; Moving.com; SeniorHousingNet; SocialBios; TigerLead®; and TOP PRODUCER® Systems.  Move, Inc. is based in San Jose, California.

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)














Three Months Ended March 31,



2013



2012



(unaudited)







Revenue

$

54,238


$

47,741

Cost of revenue(1)


12,688



9,645

Gross profit 


41,550



38,096







Operating expenses:






Sales and marketing(1)


19,843



17,412

Product and web site development(1)


9,846



8,714

General and administrative(1)


11,538



10,888

Amortization of intangible assets 


999



397

Total operating expenses


42,226



37,411

Operating (loss) income


(676)



685







Interest (expense) income, net 


(14)



1

Earnings of unconsolidated joint venture


602



199

Other expense, net


(27)



(52)

(Loss) income before income taxes


(115)



833







Income tax (benefit) expense


(15)



25







Net (loss) income


(100)



808







Convertible preferred stock dividend and related accretion




(918)

Net loss applicable to common stockholders

$

(100)


$

(110)













Basic and diluted net loss per share applicable to common stockholders

$

(0.00)


$

(0.00)







Shares used to calculate net loss per share applicable  
   to common stockholders:






Basic and diluted


39,104



38,488













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







     Cost of revenue

$

102


$

54

     Sales and marketing


511



289

     Product and web site development


580



359

     General and administrative


1,430



761


$

2,623


$

1,463







 

 

MOVE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)















March 31,
2013



December 31,
2012



(unaudited)




ASSETS






Current assets:






Cash

$

30,221


$

27,122

Accounts receivable, net


12,427



11,759

Other current assets


8,439



7,215

Total current assets


51,087



46,096







Property and equipment, net


22,413



21,975

Investment in unconsolidated joint venture


4,342



4,924

Goodwill, net


38,560



38,560

Intangible assets, net


23,445



24,444

Other assets 


861



870

Total assets 

$

140,708


$

136,869







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities: 






Accounts payable 

$

6,351


$

4,741

Accrued expenses 


18,828



20,512

Deferred revenue 


7,829



8,520

Total current liabilities 


33,008



33,773







Other noncurrent liabilities


5,094



5,086

Total liabilities 


38,102



38,859







Stockholders' equity: 






Series A convertible preferred stock




Common stock 


40



39

Additional paid-in capital 


2,136,909



2,132,189

Accumulated other comprehensive income


194



219

Accumulated deficit


(2,034,537)



(2,034,437)

Total stockholders' equity


102,606



98,010

Total liabilities and stockholders' equity

$

140,708


$

136,869







 

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)














Three Months Ended March 31,



2013



2012


(unaudited)

Cash flows from operating activities:






Net (loss) income

$

(100)


$

808

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






Depreciation


2,399



2,524

Amortization of intangible assets


999



397

Provision for doubtful accounts


99



395

Stock-based compensation and charges


2,623



1,463

Earnings of unconsolidated joint venture


(602)



(199)

Return on investment in unconsolidated joint venture


602



Other noncash items


6



(36)

Changes in operating assets and liabilities:






Accounts receivable


(767)



492

Other assets


(988)



(253)

Accounts payable and accrued expenses


(38)



(1,204)

Deferred revenue 


(700)



(291)

Net cash provided by operating activities


3,533



4,096







Cash flows from investing activities:






Purchases of property and equipment


(2,868)



(1,888)

Return of investment in unconsolidated joint venture


582



Net cash used in investing activities


(2,286)



(1,888)







Cash flows from financing activities:






Principal payments on loan payable


(19)



(27)

Payment of dividends on convertible preferred stock




(429)

Proceeds from exercise of stock options


2,259



2,323

Tax payments related to net share settlements of equity awards


(388)



(211)

Repurchases of common stock




(69)

Net cash provided by financing activities


1,852



1,587







Change in cash and cash equivalents


3,099



3,795







Cash and cash equivalents, beginning of period


27,122



87,579







Cash and cash equivalents, end of period

$

30,221


$

91,374

 

 

MOVE, INC.

REVENUE BY TYPE

(in thousands)




Three Months Ended March 31,



2013



2012


(unaudited)







Revenue






  Consumer advertising

$

42,148


$

39,445

  Software and services


12,090



8,296

    Total revenue

$

54,238


$

47,741







Percentage of revenue






  Consumer advertising


78%



83%

  Software and services


22%



17%

    Total


100%



100%

 

 

MOVE, INC.

RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)














Three Months Ended March 31,



2013



2012


(unaudited)







Net (loss) income

$

(100)


$

808







Plus: 






Stock-based compensation and charges


2,623



1,463

Depreciation


2,399



2,524

Amortization of intangible assets, including unconsolidated joint venture


999



594

Interest expense (income), net


14



(1)

Income tax (benefit) expense


(15)



25

Non-GAAP Adjusted EBITDA

$

5,920


$

5,413











































MOVE, INC.

RECONCILIATION OF EARNINGS PER SHARE TO NON-GAAP ADJUSTED EARNINGS PER SHARE

(in thousands)








Three Months Ended March 31,



2013



2012


(unaudited)







Net loss applicable to common stockholders

$

(100)


$

(110)







Plus: 






      Convertible preferred stock dividend and related accretion




918

Stock-based compensation and charges


2,623



1,463

Amortization of intangible assets, including unconsolidated joint venture


999



594

Non-GAAP Adjusted net income applicable to common stockholders

$

3,522


$

2,865







Basic and diluted earnings per share

$

(0.00)


$

(0.00)







Non-GAAP Adjusted basic earnings per share

$

0.09


$

0.07







Non-GAAP Adjusted diluted earnings per share

$

0.09


$

0.07







Shares used to calculate earnings per share:






Basic and diluted


39,104



38,488







Shares used to calculate Non-GAAP adjusted earnings per share:






Basic


39,104



38,488







Diluted


40,590



39,425







 

 

MOVE, INC.

OPERATING RESULTS NET OF STOCK-BASED COMPENSATION AND CHARGES

(in thousands)































Three Months Ended



Three Months Ended



March 31, 2013



March 31, 2012



(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

$

54,238

$

$

54,238


$

47,741

$

$

47,741

Cost of revenue


12,688


(102)


12,586



9,645


(54)


9,591

Gross profit


41,550


102


41,652



38,096


54


38,150















Sales and marketing


19,843


(511)


19,332



17,412


(289)


17,123

Product and web site development


9,846


(580)


9,266



8,714


(359)


8,355

General and administrative


11,538


(1,430)


10,108



10,888


(761)


10,127

Amortization of intangibles


999



999



397



397

Total operating expenses


42,226


(2,521)


39,705



37,411


(1,409)


36,002















Operating (loss) income

$

(676)

$

2,623

$

1,947


$

685

$

1,463

$

2,148

 

 

MOVE, INC.

AVERAGE MONTHLY UNIQUE USERS

(in thousands)








Three Months Ended March 31,




2013


2012


% Change


(unaudited)









Unique users

28,080


25,591


10%

 

SOURCE Move, Inc.



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