AUSTIN, Texas, July 25, 2012 (GLOBE NEWSWIRE) -- HomeAway, Inc. (Nasdaq:AWAY), the world's largest online marketplace for vacation rentals, today reported its financial results for the second quarter ended June 30, 2012.
− Total revenue of $71.6 million, up 22.0% year-over-year; or up 26.3% on an FX neutral basis
− Adjusted EBITDA of $20.8 million, up 14.5% year-over-year
− TTM Free Cash Flow generation of $75.7 million, up 34.1% year-over-year
Management Commentary
"The second quarter marked a continuation of HomeAway's strong financial results, with 26% revenue growth year-over-year on an FX neutral basis," said Brian Sharples, Chief Executive Officer of HomeAway®. "Contributing to the strength of our performance is the ongoing expansion of our global marketplace that reached nearly 736,000 paid listings at quarter-end. At the same time, we continue to drive the monetization of our paid listings through the introduction of value-added products and services. We also continue to see strong performance of our tiered pricing model on HomeAway.com in the U.S. with overall adoption rates continuing to accelerate. We look forward to the transition of VRBO.com to our common platform later this summer and the benefits created from achieving critical mass in paid listings and visits. A common platform will enable us to create a range of products and services to benefit owners, managers and travelers, alike."
Second Quarter 2012 Financial Highlights
• Total revenue increased 22.0% to $71.6 million from $58.7 million in the second quarter of 2011. On an FX neutral basis, year-over-year revenue growth would have been 4.3% higher, or 26.3%. Growth in total revenue primarily reflects an increase in new listings and the benefit of ancillary product and service revenue, partially offset by a slight decline in average revenue per listing.
• Listing revenue increased 18.1% to $60.2 million from $51.0 million in the second quarter of 2011, and 22.8% on an FX neutral basis.
• Adjusted EBITDA increased 14.5% to $20.8 million from $18.2 million in the second quarter of 2011. As a percentage of revenue, Adjusted EBITDA was 29.1%.
• Free cash flow increased 6.4% to $18.0 million from $17.0 million in the second quarter of 2011. On a trailing twelve month basis, free cash flow increased 34.1% to $75.7 million from $56.4 million in the comparable trailing twelve month period for the prior year.
• Net income attributable to common stockholders was $2.9 million, or $0.03 per diluted share, compared to a net loss attributable to common stockholders of $6.7 million or $0.17 per diluted share in the second quarter of 2011. The measures of net loss attributable to common stockholders and of net loss attributable to common stockholders per diluted share for 2011 include the negative impact of cumulative preferred stock dividends and discount accretion, which represented $8.8 million, or $0.22 per diluted share. Following the completion of HomeAway's initial public offering last year, there has been no preferred stock outstanding subsequent to the third quarter of 2011. As such, there is no such similar impact on these measures for the comparable period in 2012.
• Pro forma net income was $9.5 million, or $0.11 per diluted share compared to pro forma net income of $8.3 million, or $0.21 per diluted share in the second quarter of 2011.
• Cash, cash equivalents and short-term investments as of June 30, 2012 were $221.3 million, or approximately $2.61 per diluted share.
Key Business Metrics
• Paid listings were 735,921, a year-over-year increase of 17.4% from 626,661 at the end of the second quarter of 2011.
• Average revenue per listing during the second quarter was $336, a 0.9% decline from $339 during the second quarter of 2011. Excluding the impact of FX and pay-per-lead listings, average revenue per listing would have been up 6.1%.
• Renewal rate was 75.3% at the end of the second quarter, compared to 76.2% at the end of the second quarter of 2011. Continued improvements in the user experience combined with increased adoption in auto-renew, particularly in Europe, are expected to result in long-term improvements to renewal rates.
• Visits were 159.2 million during the second quarter, according to the Company's internal metrics, an increase of 20.3% year-over-year.
Corporate Developments
In May 2012, HomeAway announced the acquisition of Top Rural S.L. (dba Toprural®), the leading site for independently owned rural accommodations in Southern Europe, in an all cash transaction valued at $19.3 million. The acquisition of Toprural further broadens HomeAway's reach within the European market and solidifies its market leadership in Spain.
Business Outlook
HomeAway management currently expects to achieve the following results for its third quarter ending September 30, 2012, as follows:
Third Quarter 2012
• Total revenue is expected to be in the range of $72.8 to $73.6 million.
• Adjusted EBITDA is expected to be in the range of $22.6 to $22.9 million.
For the year ending December 31, 2012, HomeAway management is adjusting its outlook due to FX as follows:
Full Year 2012
• Total revenue is expected to be in the range of $278.6 to $280.6 million.
• Adjusted EBITDA is expected to be in the range of $79.4 to $80.4 million.
