•Total revenue of $61.1 million, up 36.9% year-over-year
•Adjusted EBITDA of $21.6 million, up 36.5% year-over-year
•TTM Free Cash Flow generation of $61.5 million, up 40.0% year-over-year
AUSTIN, Texas, Oct. 27, 2011 /PRNewswire/ -- HomeAway, Inc. (NASDAQ:AWAY - News), the world's largest online marketplace for vacation rentals, today reported its financial results for the third quarter ended September 30, 2011.
Management Commentary
"HomeAway's impressive third quarter results continue to confirm and support our market leading position in the highly fragmented and underpenetrated global vacation rentals marketplace," says Brian Sharples, Chief Executive Officer of HomeAway®. "We've continued to make meaningful strides in delivering against our financial, operational and strategic growth initiatives through ongoing investment in our core business and strong execution. During the third quarter, we attracted over 129 million visits to our network of sites and have delivered on our promise to further improve the monetization of the marketplace through the launch of tiered pricing and other ancillary services. Throughout the remainder of fiscal 2011 and beyond, we expect to continue to reap the benefits of our strong network effect by attracting new travelers to our platform and driving continued growth in paid listings."
Third Quarter 2011 Financial Highlights
•Total revenue increased 36.9% to $61.1 million from $44.6 million in the third quarter of 2010. Growth in total revenue was driven by continued strength in renewal rates and increased revenue per listing from the prior year.
•Listing revenue increased 29.2% to $52.5 million from $40.6 million in the third quarter of 2010.
•Adjusted EBITDA increased 36.5% to $21.6 million from $15.9 million in the third quarter of 2010. For the third quarter of 2011, Adjusted EBITDA, as a percentage of revenue, was 35.4%, consistent with that of the third quarter of 2010.
•Free cash flow increased 64.0% to $13.9 million from $8.5 million in the third quarter of 2010. On a trailing twelve month basis, free cash flow increased 40.0% to $61.5 million from $44.0 million in the comparable trailing twelve month period for the prior year.
•Net loss attributable to common stockholders was $4.1 million, or ($0.05) per diluted share compared to a net loss of ($0.11) per diluted share in the third quarter of 2010. This measure per diluted share includes the impact of cumulative preferred stock dividends and discount accretion of $6.8 million, or ($0.09) per share, in 2011 and $8.9 million, or ($0.23) per share, in 2010. As of September 30, 2011, the Company no longer has any preferred stock outstanding.
•Cash, cash equivalents and short-term investments as of September 30, 2011 were $172.1 million.
Third Quarter 2011 Business Highlights
•Launch of pay-for-performance pricing on HomeAway.com, enabling users to pay more to rank higher in search results. The tiered pricing model has already shown positive initial results and is anticipated to further increase average revenue per listing over time.
•Migration of HomeAway's French website, Abritel.fr, to the HomeAway network platform as part of the ongoing network consolidation efforts towards achieving a single technology platform.
•Initiation of bundled pricing in the United Kingdom, allowing property owners and managers to purchase listings simultaneously on HomeAway.co.uk, the home of Holiday-Rentals®, and OwnersDirect.co.uk for one bundled price.
•Completion of the first full quarter with the Reservation Manager product on two of HomeAway's leading websites, HomeAway.com and VRBO.com. Reservation Manager helps property owners and managers to streamline the inquiry and payments processes and to accept credit cards and eChecks through a secure and automated process, as well as permits travelers to pay online through a trusted site.
•Completion of the full rollout of the owner dashboard on VRBO.com, providing property owners and managers with improved efficiency and marketing opportunities.
Key Business Metrics
•Paid listings were 626,528, compared to 511,667 at the end of the third quarter of 2010 and 626,661 at the end of the second quarter of 2011. Paid listings increased 22.4% year-over-year and were consistent with the second quarter of 2011, reflecting the expected seasonality.
•Average revenue per listing was $335, compared to $314 during the third quarter of 2010 and $339 during the second quarter of 2011. The Australian business, which was acquired in the second quarter of 2011, generates a lower average revenue per listing.
•Renewal rate was 76.4%, compared to 75.4% at the end of the third quarter of 2010 and 76.2% at the end of the second quarter of 2011.
•Visits were 129.1 million, according to the Company's internal metrics, an increase of 23.2% year-over-year. According to ComScore, visits were 56.9 million, a decrease of 1.3% year-over-year.
Business Outlook
HomeAway management currently expects to achieve the following results for its fourth quarter ended December 31, 2011 and the year ended December 31, 2011, as follows:
Fourth Quarter 2011
•Total revenue is expected to be in the range of $57.2 to $57.7 million.
•Adjusted EBITDA is expected to be in the range of $15.2 to $15.7 million.
Full Year 2011
•Total revenue is expected to be in the range of $229.0 to $229.5 million.
•Adjusted EBITDA is expected to be in the range of $65.2 to $65.7 million.
