HomeAway, Inc. Reports Third Quarter 2012 Financial Results
HomeAway, Inc. (Nasdaq:AWAY), the world's largest online marketplace for vacation rentals, reported its financial results for the third quarter ended September 30, 2012.
− Total revenue of $73.1 million, up 19.6% year-over-year and up 23.9% on an FX neutral basis, year-over-year
− Adjusted EBITDA of $24.2 million, up 12.0% year-over-year
− TTM Free Cash Flow generation of $78.2 million, up 25.1% year-over-year
AUSTIN, Texas, Nov. 1, 2012 (GLOBE NEWSWIRE) -- HomeAway, Inc. (Nasdaq:AWAY), the world's largest online marketplace for vacation rentals, today reported its financial results for the third quarter ended September 30, 2012.
"The third quarter marked a significant milestone for HomeAway®—the successful transition of VRBO to our common platform." says Brian Sharples, chief executive officer of HomeAway. "The addition of VRBO to our existing global network has allowed us to launch new bundled products, introduce a new form of tiered pricing on VRBO, and will create more choice for travelers with nearly 75% of our global inventory now available to our sites that utilize our core platform. Early results from the transition have been extremely positive and position HomeAway well for future growth."
Mr. Sharples continued, "We also continued to make significant progress in our efforts to enable e-commerce on HomeAway sites with addition of online booking in the U.S., and the pending rollout of similar services in Europe planned for the fourth quarter."
"In the next year, we'll have both subscription-based and commission-based products to enable us to fully capitalize on our leadership position in the vacation rental industry." Mr. Sharples concluded.
Third Quarter 2012 Financial Highlights
• Total revenue increased 19.6% to $73.1 million from $61.1 million in the third quarter of 2011. On an FX neutral basis, year-over-year revenue growth was 23.9%. Growth in total revenue primarily reflects an increase in new listings and the benefit of ancillary product and service revenue.
• Listing revenue increased 16.9% to $61.4 million from $52.5 million in the third quarter of 2011, and 21.7% on an FX neutral basis, year-over-year.
• Other revenue, which is comprised of ancillary revenue from owners and travelers, advertising, software and other items, increased 36.1% to $11.7 million from $8.6 million in the third quarter of 2011. Growth in other revenue primarily reflects the introduction and enhanced distribution of new value-added owner, manager and traveler products.
• Adjusted EBITDA increased 12.0% to $24.2 million from $21.6 million in the third quarter of 2011. As a percentage of revenue, adjusted EBITDA was 33.1%.
l Free cash flow increased 17.6% to $17.2 million from $14.6 million in the third quarter of 2011. On a trailing twelve month basis, free cash flow increased 25.1% to $78.2 million from $62.6 million in the comparable trailing twelve month period for the prior year.
• Net income attributable to common stockholders was $5.2 million, or $0.06 per diluted share, compared to a net loss attributable to common stockholders of $4.1 million or $0.05 per diluted share in the third 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 $6.8 million, or $0.09 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 $12.1 million, or $0.14 per diluted share compared to pro forma net income of $8.6 million, or $0.11 per diluted share in the third quarter of 2011.
• Cash, cash equivalents and short-term investments as of September 30, 2012 were $244.2 million, or approximately $2.87 per diluted share.
Key Business Metrics
• Paid listings at the end of the third quarter were 720,031, a year-over-year increase of 14.9% from 626,528 at the end of the third quarter of 2011.
• Average revenue per listing during the third quarter was $337, a 0.6% increase from $335 during the third quarter of 2011. Excluding the impact of FX and pay-per-lead listings, average revenue per listing would have been up 7.6%.
• Renewal rate was 74.5% at the end of the third quarter, compared to 76.4% at the end of the third quarter of 2011. The decrease is primarily due to the inclusion of Australia this year and a decline from the European brands similar to last quarter. Continued product improvements, demand generation for owners and property managers and the resulting increases in customer satisfaction are expected to result in long-term improvements to renewal rates.
• Visits were 155.8 million during the third quarter, a year-over-year increase of 20.7%.
HomeAway management currently expects to achieve the following results for fourth quarter ending December 31, 2012 and the year ending December 31, 2012, as follows:
Fourth Quarter 2012
• Total revenue is expected to be in the range of $70.2 to $71.2 million.
• Adjusted EBITDA is expected to be in the range of $20.4 to $21.4 million.
Full Year 2012
• Total revenue is expected to be in the range of $279.0 to $280.0 million.
• Adjusted EBITDA is expected to be in the range of $79.4 to $80.4 million.