Move, Inc. (NASDAQ: MOVE), the leader in online real estate, today reported financial results for the third quarter ended September 30, 2011.
Revenue in the third quarter of 2011 was $46.5 million, compared to $50.3 million in the third quarter of 2010. Net income applicable to common stockholders was $242,000, or break even per share, compared to net income of $375,000, or break even per share, 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 2011 was $5.5 million, or 12 percent of revenue, compared to $6.0 million, or 12 percent of revenue, for the third quarter of 2010. 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 at Move, Inc. said, “Against the backdrop of today’s challenging real estate market, our industry is making an important transition as it embraces new technologies. The real estate industry is increasingly becoming a multi-channel experience for consumers, with connections and interactions that occur in person, on the phone, on the web and especially on mobile devices. Move continues to take solid steps towards the future. We are in the process of rolling out the most aggressive product release schedule in our history, designed to leverage our market leadership. While we remain focused on achieving our near term financial goals, Move is continuing to focus on creating great consumer experiences and new revenue opportunities for growth in 2012 and beyond.”
Financial Highlights: Move continues its financial leadership in the online real estate market place with revenue of $46.5 million and Adjusted EBITDA of $5.5 million in the third quarter of 2011. Move repurchased 5.9 million shares of common stock, using $9.6 million of cash during the third quarter. The Company filed paperwork to initiate the 1-for-4 reverse stock split, which had been previously authorized by the Board of Directors and the Company’s shareholders.
Business Highlights: Move continues its audience and engagement leadership in the month of September by attracting more than 20 million consumers who visited our sites 77 million times, viewed 619 million pages and spent 290 million minutes on the Realtor.com Real Estate Network. Move continues to provide the most comprehensive, current and accurate information available in the industry, on both web and mobile devices, by updating 82% of all for-sale listings on Realtor.com every 15-minutes. The remainder is updated every one to 24 hours directly from our MLS partners across the country. Move continues its leadership in the mobile category with our award winning line of mobile applications, with mobile leads up 350% year-over-year. In August, Move and AOL launched the new search experience on AOL Real Estate, powered by Move. Move recently launched the Connection for Co-Brokerage product line, which allows consumers to connect with real estate professionals on all Realtor.com listings in an industry-friendly manner. The Company is rolling out upgraded reporting and analytics tools for real estate professionals, providing better insight to the industry on how effectively they are spending their marketing dollars. Move re-launched its mortgage prequalification decision engine, PreQualPlus, in partnership with MetLife Home Loans. Unlike any other online mortgage offering, PreQualPlus allows consumers to prequalify for a mortgage entirely online and ultimately close a mortgage loan with MetLife. Move launched Realtor.com International, delivering all for-sale property listings displayed on Realtor.com and residential properties provided by foreign content providers. The site will offer translation tools for 11 languages and conversion tools for currency. Top Producer released an Open Beta version of our new HTML 5 Customer Relationship Management product. This new HTML 5 CRM web-app will better serve our customers by delivering a more relevant product that enables cross-platform functionalities and supports the fast-paced mobile work style of our Top Producer customers, and real estate professionals in general.
Move today provided guidance for the quarter and year ending December 31, 2011. For the quarter ending December 31, 2011, Move expects revenue of approximately $47 million and expects to report Adjusted EBITDA margin of approximately 16%.
For the year ending December 31, 2011, Move expects revenue of approximately $192 million and expects to report Adjusted EBITDA margin of approximately 13%.
As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Thursday, November 3, 2011. To access the call, please dial (877) 312-5848 , or outside the U.S. (253) 237-1155 , five minutes prior to 1:30 p.m. Pacific Daylight Time. A live webcast of the call will also be available at http://investor.move.comunder the Events & Presentations menu.
An audio replay will be available between 4:30 p.m. Pacific Daylight Time November 3, 2011, and 11:59 p.m. Pacific Daylight Time November 17, 2011, by calling (855) 859-2056 or (404) 537-3406 , with Conference ID 12314530. A replay of the call will also be available at http://investor.move.com.
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 net income (loss) excluding interest income, net, income tax expense, impairment of auction rate securities 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, 2011 and 2010 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 over 20.3 million visitors  to its online network of websites within the Realtor.com Real Estate Network. 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®, the official website of the National Association of REALTORS®; MortgageMatch.com, Moving.com; SeniorHousingNet; ListHub; and TOP PRODUCER Systems. Move, Inc. is based in Campbell, California.