AUSTIN, Texas, Feb. 19, 2014 (GLOBE NEWSWIRE) -- HomeAway, Inc. (Nasdaq:AWAY), the world's leading online marketplace for the vacation rental industry, today reported its financial results for the fourth quarter and full year ended December 31, 2013.
Management Commentary
"As we look back on 2013, we're thrilled with HomeAway's accomplishments, all of which advanced our mission to make every vacation rental in the world available to every traveler in the world through our online marketplace," says Brian Sharples, chief executive officer of HomeAway. "In addition to achieving our financial objectives, we delivered against our goal to reignite listings growth, delivering nearly 30% adjusted growth in total listings, up significantly from 13% in the prior quarter. While this growth is largely fueled by robust and pent up demand for our new pay-per-booking offering as well as acquisitions, the health of our subscription business also remains strong, with our renewal rate improving one percentage point sequentially to 75%, as adjusted."
Mr. Sharples continued, "The fourth quarter also marked the advancement of several strategic initiatives including the roll-out of pay-per-booking, the ongoing advancement of our e-commerce platform, and the acquisition of Stayz, which solidifies our strong position in Asia Pacific. We're excited about our prospects in 2014, particularly as we begin to realize the impact from the progress made in 2013. Our approach to growth will remain measured, ensuring we make the necessary investments to support the ongoing expansion of our global marketplace."
Fourth Quarter 2013 Financial Highlights
Total revenue increased 26.1% to $90.3 million from $71.6 million in the fourth quarter of 2012. On an FX neutral basis, year-over-year revenue growth was 24.9%. Growth in total revenue primarily reflected an increase in average revenue per listing as a result of tiered pricing and bundled product offerings, an increase in new listings and the benefit of ancillary product and service revenue.
Listing revenue increased 25.5% to $78.4 million from $62.5 million in the fourth quarter of 2012. On an FX neutral basis, year-over-year listing revenue growth was 24.1%.
Other revenue, which is comprised of ancillary revenue from owners and travelers, advertising, software and other items, increased 30.8% to $11.9 million from $9.1 million in the fourth quarter of 2012. Growth in other revenue primarily reflected the increased adoption of value-added owner, manager and traveler products.
Adjusted EBITDA decreased 1.4% to $21.0 million from $21.3 million in the fourth quarter of 2012. As a percentage of revenue, adjusted EBITDA was 23.3% compared to 29.8% in the fourth quarter of 2012. Impacting year-over-year comparability of Adjusted EBITDA was approximately $3.8 million in one-time expenses related to the acquisition of Stayz in the fourth quarter of 2013. Excluding these one-time acquisition-related expenses, Adjusted EBITDA would have increased 16.4% year-over-year.
Free cash flow increased 6.8% to $23.4 million from $21.9 million in the fourth quarter of 2012.
Net loss attributable to HomeAway was $1.6 million, or a loss of $0.02 per diluted share, compared to net income attributable to HomeAway of $4.5 million, or $0.05 per diluted share, in the fourth quarter of 2012. Net loss attributable to HomeAway for the fourth quarter of 2013 is inclusive of one-time expenses related to the acquisition of Stayz.
Non-GAAP net income was $6.9 million, or $0.08 per diluted share, compared to non-GAAP net income of $11.6 million, or $0.14 per diluted share, in the fourth quarter of 2012. Non-GAAP net income for the fourth quarter of 2013 is inclusive of one-time expenses related to the acquisition of Stayz.
Full Year 2013 Financial Highlights
Total revenue increased 23.6% to $346.5 million from $280.4 million in 2012. On an FX neutral basis, year-over-year revenue growth was 23.0%.
Listing revenue increased 23.6% to $294.7 million from $238.4 million in 2012. On an FX neutral basis, year-over-year listing revenue growth was 22.9%.
Other revenue increased 23.4% to $51.8 million from $42.0 million in 2012.
Adjusted EBITDA increased 20.4% to $96.7 million from $80.3 million in 2012. As a percentage of revenue, adjusted EBITDA was 27.9% compared to 28.7% in 2012. Excluding one-time expenses related to the acquisition of Stayz in the fourth quarter of 2013, Adjusted EBITDA would have increased 25.1% year-over-year.
Free cash flow increased 9.0% to $93.0 million from $85.3 million in 2012.
Net income attributable to HomeAway was $17.7 million, or $0.20 per diluted share, compared to net income attributable to HomeAwayof $15.0 million, or $0.18 per diluted share, in 2012.
Non-GAAP net income was $49.8 million, or $0.56 per diluted share, compared to non-GAAP net income of $40.6 million, or $0.48 per diluted share, in 2012.
Cash, cash equivalents and short-term investments as of December 31, 2013 were $391.4 million, or approximately $4.43 per diluted share.
Key Business Metrics
Paid listings at the end of the fourth quarter were 889,875, a year-over-year increase of 25.0% from 711,631 at the end of the fourth quarter of 2012.
Average revenue per listing during the fourth quarter was $377, an 8.0% increase from $349 during the fourth quarter of 2012. Excluding the impact of FX and performance-based listings, average revenue per subscription listing increased 13.2% year-over-year.
Renewal rate was 72.5% at the end of the fourth quarter, compared to 73.8% at the end of the fourth quarter of 2012 and 71.7% at the end of the third quarter of 2013.
Visits were 145.8 million during the fourth quarter, a year-over-year increase of 17.6%. During the fourth quarter of 2012, HomeAway began using a different tool for the measurement of visits for certain of its websites. On a comparable basis, HomeAway estimates that visits would have increased by 15.6% year-over-year.
Business Outlook
HomeAway management currently expects to achieve the following results for first quarter ending March 31, 2014 and full year ending December 31, 2014:
First Quarter 2014
Total revenue is expected to be in the range of $102.1 to $103.3 million.
Full Year 2014
Total revenue is expected to be in the range of $429.0 to $436.0 million.
Adjusted EBITDA is expected to be in the range of $119.0 to $125.0 million.
