Move, Inc. Reports Second Quarter 2013 Financial Results

SAN JOSE, Calif., Aug. 1, 2013 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the leader in online real estate, today reported financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

• Q2 Revenue increased 17% to $57.5 million
• Q2 2013 represented the seventh consecutive quarter of sequential revenue growth
• Consumer Advertising revenue increased 8% year-over-year to $44.6 million
• Software and Services revenue increased 57% year-over-year to $12.9 million
• Non-GAAP Adjusted EBITDA was $7.0 million
• Average monthly unique users of Move's web and mobile sites grew 18% year-over-year to nearly 29 million in the second quarter

"The second quarter was a strong quarter for Move, with both consumer advertising revenue and software and services revenue growing well, resulting in our seventh straight quarter of sequential revenue growth," said Steve Berkowitz, CEO of Move.  "We are very excited about our continued growth and believe we are in a great position to capitalize on the healthy market opportunity in front of us."

Second Quarter 2013 Financial Results
Revenue for the quarter was $57.5 million, an increase of $8.2 million, or 17%, from $49.3 million in the second quarter of 2012.  Revenue from Consumer Advertising products increased 8% to $44.6 million in the second quarter of 2013 compared to the same period in 2012.  Revenue from Software and Services products increased 57% to $12.9 million compared to the second quarter of 2012.

Non-GAAP Adjusted EBITDA ("Adjusted EBITDA") was $7.0 million in the second quarter of 2012.  As a percentage of revenue, Adjusted EBITDA was 12% in the second quarter of 2013.  Non-GAAP Earnings Per Share ("Adjusted Earnings Per Share") was $0.11 per diluted share in the second quarters of 2013 and 2012.  Move has reported Adjusted EBITDA and Adjusted Earnings 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.

Cash provided by operating activities was $6.7 million and $4.6 million for the quarters ended June 30, 2013 and 2012, respectively.

Operating and Business Results

• Last week, the National Association of Realtors voted to modify the operating agreement to allow realtor.com^® to further expand and enrich its content, allowing realtor.com^® to compete more aggressively. The vote reaffirmed the NAR's commitment to making realtor.com^® the first and best online destination for real estate with the goal of connecting home buyers and sellers with Realtors.
• Move grew unique users 18% year-over-year, to nearly 29 million, up from a 10% increase last quarter.
• California Association of Realtors cited realtor.com^® as the number one most useful internet site for Realtors. Of those surveyed, 31% of all buyers found their home on realtor.com^®.
• Launched new Advice and News blogs on realtor.com^® to offer users expert tips on buying, selling, renting, financing and moving, expanding its focus on producing high-quality editorial content to answer consumers' most pressing questions and growing its library of high-quality content for Realtors.
• Renewed seven-year collaboration with top news website MSN to continue providing the most up-to-date and accurate real estate listings to MSN users.
• Launched the realtor.com^® rentals app for iOS and Android smartphones, giving consumers an elegant, photo-rich, and easy-to-use tool to search nearby rental apartments, homes, condos and townhomes on mobile devices, with approximately 90 percent of rentals listings data updated every 15 minutes.
• Signed new FIND search appliance agreements with MLSs in San Francisco and Boston. Additionally, FIND service was rolled out in Chicago.
• ListHub launched ListHub Global, giving ListHub's 48,000 brokerage subscribers the opportunity to advertise listings internationally. A new agreement with Switzerland-based EdenHome represents ListHub's first global offering, bringing ListHub customers exposure to a network of 23 portals in 19 countries.
• Continued Top Producer Systems subscriber growth; Announced new agreement with Brampton Real Estate Board (BREB), providing BREB members with Top Producer^® CRM lead management software.
• Announced strategic agreement with Xceligent, Inc., a leading provider of proactively researched commercial real estate information and marketing, to launch enhanced commercial search functionality on realtor.com^®.

Business Outlook
For the quarter ending September 30, 2013, Move expects revenue of approximately $58 million and expects to report Adjusted EBITDA margins of approximately 11-12%.

For the year ending December 31, 2013, Move expects improved revenue of approximately $227-228 million and expects to report Adjusted EBITDA margin of approximately 12-13%.

Conference Call
As previously announced, Move will host a conference call, which will be broadcast live over the Internet today, Thursday, August 1, 2013.  To access the call, please dial (866) 652-5200, or outside the U.S. (412) 317-6060, 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 3:00 p.m. Pacific Daylight TimeAugust 1, 2013, and 6:00 a.m. Pacific Daylight TimeAugust 8, 2013, by calling (877) 344-7529 or (412) 317-0088, with Conference ID 10031550.  An audio archive 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- and six-month periods ended June 30, 2013 and 2012 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 Adjusted Earnings 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 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.  Prior to the first quarter of 2013, 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; Doorsteps; TigerLead^®; and TOP PRODUCER^® Systems.  Move, Inc. is based in San Jose, California.

SOURCE Move, Inc.