HomeAway reports second quarter 2015 financial results
AUSTIN, Texas, Aug. 4, 2015 (GLOBE NEWSWIRE) -- HomeAway, Inc. (NASDAQ:AWAY) today reported its financial results for the second quarter ended June 30, 2015.
"We've had another great quarter, delivering strong results at or above our expectations," says Brian Sharples, chief executive officer of HomeAway®. "We are especially encouraged by the uptake of our online bookable listings, which grew to 50% of our inventory in the quarter and marks a significant milestone toward our 2016 goal to make nearly all of our listings online bookable."
Mr. Sharples continued, "Another important accomplishment in the first half of the year was the launch of our integrated marketing campaign. Post-launch, we have experienced an acceleration in traffic growth and brand awareness. We have started building a solid foundation for our multi-year marketing effort and look forward to continuing to bring friends and families together in vacation rentals around the globe through our network of sites."
Second Quarter 2015 Financial Highlights
· Total revenue increased 10.1% to $125.8 million from $114.3 million in the second quarter of 2014. On an FX neutral basis, year-over-year revenue growth was 19.2%. Growth in total revenue primarily reflected an increase in average revenue per subscription listing as a result of tiered pricing and bundled product offerings, the benefit of ancillary product and services revenue, and an increase in listings.
· Listing revenue increased 5.6% to $99.8 million from $94.5 million in the second quarter of 2014. On an FX neutral basis, year-over-year listing revenue growth was 16.0%.
· Other revenue, which is comprised of ancillary revenue from owners, managers, and travelers, advertising, software and other items, increased 31.9% to $26.0 million from $19.7 million in the second quarter of 2014. Growth in other revenue primarily reflected increased adoption of value-added owner, manager and traveler products.
· Net loss attributable to HomeAway was $2.4 million, or a loss of $0.03 per diluted share, compared to net income attributable to HomeAway of $3.9 million, or $0.04 per diluted share, in the second quarter of 2014.
· Adjusted EBITDA decreased 27.0% (decreased 17.6% FX neutral) to $24.1 million from $33.0 million in the second quarter of 2014. As a percentage of revenue, adjusted EBITDA was 19.1% compared to 28.9% in the second quarter of 2014. This change reflects a significant increase in investment in our global integrated marketing campaign, which launched in the first quarter of 2015.
· Free cash flow decreased 3.6% to $33.8 million from $35.0 million in the second quarter of 2014. On a trailing twelve month basis, free cash flow increased 7.1% to $122.3 million from$114.2 million in the comparable trailing twelve month period for the prior year.
· Non-GAAP net income was $11.5 million, or $0.12 per diluted share, compared to non-GAAP net income of $14.3 million, or $0.15 per diluted share, in the second quarter of 2014.
Key Business Metrics
· Paid listings at the end of the second quarter of 2015 were approximately 1,185,000, an increase of 13.9% from approximately 1,041,000 at the end of the second quarter of 2014. At the end of the second quarter of 2015, 733,000 of the listings were subscription listings and 452,000 were performance-based listings.
· Average revenue per subscription listing during the second quarter of 2015 was $496, an FX neutral increase of 15.0% compared to the second quarter of 2014.
· Renewal rate was 71.3% at the end of the second quarter of 2015, compared to 72.8% at the end of the second quarter of 2014 and 71.6% at the end of the first quarter of 2015. Beginning in the second quarter of 2015, customers in Australia were directed to Stayz to list their property and are no longer able to renew HomeAway Australia listings. Excluding HomeAway Australia listings, the renewal rate for our subscription listings at the end of the second quarter for 2015 would have been 71.8%, 50 basis points higher than as reported. For comparability purposes, we estimate that renewal rate would have been approximately 50 basis points higher for each of the previous three quarters when excluding HomeAway Australia listings.
· When including in our renewal rate subscribers that have transitioned to our pay-per-booking product, overall subscriber retention at the end of the second quarter of 2015 would have increased by 130 basis points compared to 70 basis points at the end of the first quarter of 2015.
· Visits were 274.4 million during the second quarter of 2015, an increase of 19.6% compared to the second quarter of 2014.
Lynn Atchison, chief financial officer of HomeAway, says, "Our full year forecast for FX neutral revenue growth and EBITDA margins remain unchanged compared to the outlook provided in April. Our outlook reflects the near-term impact of the strengthening U.S. dollar, which we currently estimate will reduce full year revenue by approximately $37 million, or eight percentage points of growth, compared to the prior year. "
HomeAway management currently expects to achieve the following results for the third quarter ending September 30, 2015 and full year ending December 31, 2015:
Third Quarter 2015
· Total revenue is expected to be in the range of $128 to $131 million, representing year-over-year growth of approximately 9% to 12% (FX neutral growth of approximately 18% to 21%).
· Adjusted EBITDA is expected to be in the range of $36.5 to $38.0 million, or approximately 28.5% to 29.0% of revenue.
Full Year 2015
· Total revenue is expected to be in the range of $496 to $503 million, representing year-over-year growth of approximately 11% to 12.5% (FX neutral growth of approximately 19% to 21%).
· Adjusted EBITDA is expected to be in the range of $119.5 to $123.5 million, or approximately 24.1% to 24.6% of revenue.