Move: First Quarter 2014 Financial Results


The following excerpt is from the company's SEC filing.

Revenue for the quarter was $58.0 million, an increase of $3.8 million, or 7%, from $54.2 million in the first quarter of 2013.  Revenue from Consumer Advertising products increased 6% to $44.8 million in the first quarter of 2014 compared to the same period in 2013.  Revenue from Software and Services products increased 10% to $13.2 million compared to the first quarter of 2013.

Non-GAAP Adjusted EBITDA (“Adjusted EBITDA”) was $5.0 million in the first quarter of 2014 compared to $5.9 million in the first quarter of 2013.  As a percentage of revenue, Adjusted EBITDA was 9% in the first quarter of 2014.  No n-GAAP Earnings Per Share was $0.02 per diluted share in the first quarter of 2014 compared to $0.09 per diluted share in the first quarter of 2013.  Move has reported Adjusted EBITDA and Non-GAAP Earnings 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.

  MOVE, INC. REPORTS FIRST QUARTER 2014 RESULTS   Cash provided by operating activities was $3.2 million and $3.5 million for the quarters ended March 31, 2014 and 2013, respectively.   Operating and Business Results   In the first quarter of 2014, realtor.com®, which 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, continued its innovation with a fresh approach to consumer marketing and new neighborhood content.  Significant changes are:   ·                  Launched first national television campaign featuring our leadership in data accuracy and the realtor.com® brand.   ·                  Drove significant increases in traffic to realtor.com® with our brand campaign.  In March, we attracted nearly 33 million unique users, up 21% year-over-year and 23% month-over-month.   ·                  Implemented new features to the realtor.com® site to improve user experience, including larger photos and new map functionality.   ·                  Launched Doorsteps’ SwipeTM, an easy-to-use and entertaining way for first-time home buyers to search for a home.  The new application was featured in the App Store, and was rated number one in the lifestyle category.  Consumers have viewed more than two million homes with consumers swiping on average 20 times per session.   ·                  Entered into an approved supplier agreement with RE/MAX, which is designed to maximize lead generation and lead conversion for RE/MAX agents, teams and brokers and has the goal of quadrupling an agent’s book of business.   ·                  Launched the Porch Home and Neighborhood Report, a free, innovative resource that helps realtor.com® users understand the remodeling and project history of a specific home and its neighborhood.   Subsequent to quarter end, realtor.com®, and its partner, the National Association of REALTORS®, are joining forces to increase consumer awareness with a new and combined marketing campaign.   Additionally, Move’s central intelligence and listing syndication platform, ListHubTM, continues to expand its reach by distributing content from more than 500 sources to more than 130 publishers.  Contributing to its growth momentum are two key alliances introduced in Q1:   ·                  ListHubTM expanded its reach to new locations in Asia, Russia, Western Europe and South America through arrangements with SouFun Holdings Limited, the leading real estate portal in China, and ListGlobally, which recently announced a merger with Eden Home creating the largest network of international property portals. The partnership with ListGlobally now provides ListHubTM customers a network of 91 publishers in 41 countries.   2

  ·                  ListHubTM also launched a software integration agreement with Showing Suite, Inc., which integrates data with online marketing analytics available in ListHubTM marketing reports, to deliver extensive business insights to real estate brokers and agents.   Business Outlook   For the quarter ending June 30, 2014, Move expects revenue of $61.5 million to $62 million and expects to report Adjusted EBITDA of approximately $3 million.   For the year ending December 31, 2014, Move expects revenue of $254 million to $258 million, and expects to report Adjusted EBITDA of approximately $30 million.   Conference Call   Move will host a conference call broadcast  today, Tuesday, May 6, 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 and presentations menu.   An audio replay will be available between 6:30 p.m. Eastern Daylight Time May 6, 2014 and 11:59 p.m. Eastern Daylight Time May 14, 2014, by calling (877) 344-7529 or (412) 317-0088, with Conference ID 10044296.  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 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 Per Share.  Additionally, the Company has presented a non-GAAP table of Financial Data for the three-month periods ended March 31, 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,   3

Inc. has reported Adjusted EBITDA and Non-GAAP 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.

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.

  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™, SeniorHousingNetSM, homefairSM and Relocation.com.  Move supports real estate agents and brokerages by providing many services to grow their businesses—including ListHub™, the nation’s leading syndicator of real estate listings, TigerLead®, Top Producer®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.  These and all other trademarks used in this work are the property of their respective owners.   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   5

Exhibit 99.1   Press release announcing Move, Inc.’s financial results for the quarter ended March 31, 2014.   MOVE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)       Three Months Ended March 31,       2014   2013       (unaudited)               Revenue   $ 58,013   $ 54,238               Costs and operating expenses:           Cost of revenue(1)(2)   12,112   10,863   Sales and marketing(1)(2)   25,393   21,668   Product and web site development(1)   11,127   9,846   General and administrative(1)   12,012   11,538   Amortization of intangible assets   1,297   999   Total costs and operating expenses   61,941   54,914   Loss from operations   (3,928 ) (676 )             Interest expense, net   (1,567 ) (14 ) Earnings of unconsolidated joint venture   825   602   Other expense, net   (6 ) (27 ) Loss before income taxes   (4,676 ) (115 )             Income tax expense (benefit)   506   (15 )             Net loss   $ (5,182 ) $ (100 )             Basic and diluted net loss per share   $ (0.13 ) $ (0.00 )             Shares used to calculate net loss per share:           Basic and diluted   39,011   39,104     (1) Includes stock-based compensation and charges as follows:                           Cost of revenue   $ 112   $ 102   Sales and marketing   673   511   Product and web site development   1,837   580   General and administrative   1,104   1,430       $ 3,726   $ 2,623     (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 $1.8 million, or 3% of revenue, for the three months ended March 31, 2013.  

  MOVE, INC. CONSOLIDATED BALANCE SHEETS (in thousands)       March 31,   December 31,       2014   2013       (unaudited)       ASSETS           Current assets:           Cash and cash equivalents   $ 115,651   $ 118,679   Accounts receivable, net   12,002   11,760   Other current assets   8,830   8,203   Total current assets   136,483   138,642               Property and equipment, net   26,600   23,960   Investment in unconsolidated joint venture   4,572   4,596   Goodwill, net   41,630   41,630   Intangible assets, net   23,106   24,403   Other assets   3,490   3,558   Total assets   $ 235,881   $ 236,789               LIABILITIES AND STOCKHOLDERS’ EQUITY           Current liabilities:           Accounts payable   $ 7,654   $ 5,912   Accrued expenses   25,338   26,929   Deferred revenue   7,593   7,783   Total current liabilities   40,585   40,624               Convertible senior notes   83,271   82,459   Other noncurrent liabilities   5,171   4,876   Total liabilities   129,027   127,959               Stockholders’ equity:           Series A convertible preferred stock   —   —   Common stock   40   39   Additional paid-in capital   2,145,784   2,142,516   Accumulated other comprehensive income   75   138   Accumulated deficit   (2,039,045 ) (2,033,863 ) Total stockholders’ equity   106,854   108,830   Total liabilities and stockholders’ equity   $ 235,881   $ 236,789    

  MOVE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)       Three Months Ended March 31,       2014   2013       (unaudited)   Cash flows from operating activities:           Net loss   $ (5,182 ) $ (100 ) Adjustments to reconcile net loss to net cash provided by operating activities:           Depreciation and amortization of property and equipment   3,044   2,399   Amortization of intangible assets   1,297   999   Amortization of debt discount and issuance costs   961   —   Provision for doubtful accounts   132   99   Stock-based compensation and charges   3,726   2,623   Earnings of unconsolidated joint venture   (825 ) (602 ) Return on investment in unconsolidated joint venture   849   602   Other non-cash items   (17 ) 6   Changes in operating assets and liabilities:           Accounts receivable   (374 ) (767 ) Other assets   (675 ) (988 ) Accounts payable and accrued expenses   413   (38 ) Deferred revenue   (180 ) (700 ) Net cash provided by operating activities   3,169   3,533               Cash flows from investing activities:           Purchases of property and equipment   (5,731 ) (2,868 ) Return of investment in unconsolidated joint venture   —   582   Net cash used in investing activities   (5,731 ) (2,286 )             Cash flows from financing activities:           Principal payments on loan payable   —   (19 ) Proceeds from exercise of stock options   835   2,259   Tax payments related to net share settlements of equity awards   (1,301 ) (388 ) Net cash (used in) provided by financing activities   (466 ) 1,852               Change in cash and cash equivalents   (3,028 ) 3,099               Cash and cash equivalents, beginning of period   118,679   27,122               Cash and cash equivalents, end of period   $ 115,651   $ 30,221               Supplemental disclosures of cash flow information:           Cash paid for interest   $ 1,520   $ —    

  MOVE, INC. REVENUE BY TYPE (in thousands)       Three Months Ended March 31,       2014   2013       (unaudited)               Revenue           Consumer advertising   $ 44,775   $ 42,148   Software and services   13,238   12,090   Total revenue   $ 58,013   $ 54,238               Percentage of revenue           Consumer advertising   77 % 78 % Software and services   23 % 22 % Total   100 % 100 %  

  MOVE, INC. RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA (in thousands)       Three Months Ended March 31,       2014   2013       (unaudited)               Net loss   $ (5,182 ) $ (100 )             Plus:           Stock-based compensation and charges   3,726   2,623   Depreciation and amortization of property and equipment   3,044   2,399   Amortization of intangible assets   1,297   999   Interest expense, net   1,567   14   Income tax expense (benefit)   506   (15 ) Non-GAAP Adjusted EBITDA   $ 4,958   $ 5,920     MOVE, INC. RECONCILIATION OF EARNINGS PER SHARE TO NON-GAAP EARNINGS PER SHARE (in thousands)       Three Months Ended March 31,       2014   2013       (unaudited)               Net loss   $ (5,182 ) $ (100 )             Plus:           Stock-based compensation and charges   3,726   2,623   Amortization of intangible assets   1,297   999   Amortization of debt discount and issuance costs   961   —   Non-GAAP net income   $ 802   $ 3,522               Basic and diluted loss per share   $ (0.13 ) $ (0.00 )             Shares used to calculate loss per share:           Basic and diluted   39,011   39,104               Non-GAAP basic earnings per share   $ 0.02   $ 0.09               Non-GAAP diluted earnings per share   $ 0.02   $ 0.09               Shares used to calculate Non-GAAP earnings per share:           Basic   39,011   39,104               Diluted   40,995   40,590    

  MOVE, INC. OPERATING RESULTS NET OF STOCK-BASED COMPENSATION AND CHARGES (in thousands)       Three Months Ended   Three Months Ended       March 31, 2014   March 31, 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   $ 58,013   $ —   $ 58,013   $ 54,238   $ —   $ 54,238                               Costs and operating expenses:                           Cost of revenue   12,112   (112 ) 12,000   10,863   (102 ) 10,761   Sales and marketing   25,393   (673 ) 24,720   21,668   (511 ) 21,157   Product and web site development   11,127   (1,837 ) 9,290   9,846   (580 ) 9,266   General and administrative   12,012   (1,104 ) 10,908   11,538   (1,430 ) 10,108   Amortization of intangible assets   1,297   —   1,297   999   —   999   Total costs and operating expenses   61,941   (3,726 ) 58,215   54,914   (2,623 ) 52,291                               Operating (loss) income   $ (3,928 ) $ 3,726   $ (202 ) $ (676 ) $ 2,623   $ 1,947    

  MOVE, INC. AVERAGE MONTHLY UNIQUE USERS (in thousands)       Three Months Ended March 31,   One Month Ended March 31,       2014   2013   % Change   2014   2013   % Change       (unaudited)       (unaudited)                                   Unique users—network   30,792   28,080   10 % 34,555   29,729   16 %                             Unique users—realtor.com®   28,900   25,517   13 % 32,522   26,923   21 %  

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. Move next reports earnings on May 06, 2014.

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Other recent filings from the company include the following:

Move's CEO just cashed-in 20,000 options - Aug. 29, 2014
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