HOMS announced profitability last night.
I work for this company, and I'm happy here.
But look at the stock price over the last 10 days:
from 40 to 30 to 40 back to 30 and this morning I bought shares at 28! and that's AFTER last night's announcement.
BTW: Here is the announcement and a good description of us:
FOR IMMEDIATE RELEASE
Homestore.com, Inc. Reports Net Income Cash Profitability
Leading Online Home and Real Estate Network Joins Elite Group of Profitable Internet Companies and Announces Net Income Cash Profitability for the Third Quarter
THOUSAND OAKS, Calif. (Oct. 19, 2000) --- Homestore.com, Inc. (Nasdaq: HOMS) joined the ranks of the small group of cashflow-positive publicly traded dot-com companies in the third quarter, achieving net income cash profitability of $554,000 for the period. The company today reported financial results for the quarter ended September 30, 2000, with continued growth in revenues, professional subscribers and unique visitors to its online home and real estate network, and over $370 million in cash on its balance sheet.
“This quarter we joined an elite group of Internet companies that have achieved cash profitability,” said Stuart Wolff, Homestore.com’s chairman and chief executive officer, “and to accomplish this with such continued strong top-line growth, not only demonstrates the strength of our financial model, but also highlights the power of our strategic positioning and the continued execution of our management team.”
“The tremendous value of a central, online home and real estate marketplace is becoming apparent to more consumers and real estate professionals every quarter,” Wolff added. “Our network has aggregated the largest audience of consumers and home professionals on the Internet today which serves as a powerful platform to further extend our subscription, advertising and transaction services and products,” said Wolff.
The company said revenues for the third quarter increased to $62.2 million, a 201% increase over pro forma revenues of $20.7 million for the third quarter of 1999 and a 24% increase over revenues of $50.2 million for the second quarter of 2000. The company’s gross profit margin improved to 74.0% for the quarter as compared to 69.3%, on a pro forma basis, for the third quarter of 1999 and 73.5% for the second quarter of 2000. Pro forma net income for the quarter was $554,000, or $0.01 per share. That compares to a pro forma net loss of $16.8 million, or $0.25 per share, for the third quarter of 1999 and a pro forma net loss of $2.8 million, or $0.03 per share, for the second quarter of 2000.
Pro forma net income and loss exclude the effects of non-cash charges for (i) amortization of intangible assets, (ii) stock-based charges, (iii) in-process research and development and (iv) a litigation settlement. To enhance comparability, pro forma operating results assume that the acquisitions of SpringStreet.com™ and HomeFair.com™, as well as the reorganization of the company’s corporate structure, occurred on January 1, 1999.
On a GAAP basis, the company’s revenues for the quarter were $62.2 million, compared to $18.6 million for the third quarter of 1999 and $50.2 million for the second quarter of 2000. The net loss for the quarter was $27.1 million, or $0.33 per share, compared to a net loss of $34.2 million, or $0.65 per share, for the third quarter of 1999, and $24.7 million, or $0.31 per share, for the second quarter of 2000.
Increased revenue from both professional subscriptions and advertising drove overall revenue growth for the third quarter of 2000 over the second quarter of 2000. The growth in revenue from professional subscriptions was due to an increase in the number of professionals on the Homestore.com™ family of web sites, as well as an increase in the average price per subscription. Professional subscriptions rose to approximately 131,000 at September 30, 2000, representing increases of 54% and 7% compared to totals at September 30, 1999 and June 30, 2000, respectively. Renewals also contributed to the increase in professional subscriptions with the renewal rate remaining consistent at approximately 70%. Growth in advertising revenue was primarily driven by an expansion in sponsorships and strategic alliances during the quarter.
Site usage also grew substantially during the third quarter of 2000. For July and August 2000, the monthly average number of unique users visiting the Homestore.com network rose to approximately 4.1 million, a 54% increase over the third quarter of 1999 and a 13% increase over the second quarter of 2000.1 During July and August 2000, each unique user spent an average of 25.2 minutes per month on the network, which was consistent with the second quarter of 2000.1 Page views were 692 million for the quarter and 1.2 billion homes were viewed on the Homestore.com network during the quarter, bringing the cumulative number of homes viewed since the company’s inception to approximately 7.1 billion.
Third Quarter Operating Highlights
Vertical Portal Enhancements
Strategic Alliances & Site Development to Enhance Consumer Experience
Homestore.com Launches its Home-Related Content on America Online's (AOL) New House & Home Channel. The new AOL House and Home channel, featuring Homestore.com, provides AOL’s 27 million combined members with instant access to the most complete and robust home and real estate related content in the world, reflecting AOL’s commitment to offer consumers the “best of the best.” Through this latest move, Homestore.com becomes the exclusive national provider of professional home and moving services in home-related areas across the AOL, AOL.COM, CompuServe, Netscape Netcenter and Digital City brands. Homestore.com also becomes the exclusive national provider of aggregated apartment inventory and newly constructed homes inventory, and continues to be the exclusive national provider of aggregated residential real estate listings, across these AOL properties. The home-related channel is a highlight of the five-year multifaceted content, e-commerce and distribution alliance between AOL and Homestore.com announced last May and is the first new channel launched by AOL in over 3 years.
Within the new AOL House & Home Channel, Homestore.com also serves as the premier content provider in the Home Decorating, Home Security, Hardware, and Lawn & Garden areas, and is a prominent content provider in the Commercial Real Estate, Home Finance, Home Technology, Home Office, Senior Housing and Home Appliances areas. Altogether, the channel provides a convenient and content-rich online area for users to access and utilize data, tools and services related to every aspect of residential life.
AOL and CompuServe have more than 27 million combined members worldwide and AOL’s Web-based brands receive tens of millions of additional visitors.
Creative Homeowner Joins Family of Homestore.com Content Providers. A leading publisher of home repair, remodeling and gardening books and project plans, Creative Homeowner will license 300 home improvement “how to” projects and household "smart tips" to Homestore.com for the network's "Home Improvement" tab, while benefiting from the promotion of its books on indoor and outdoor renovation on the Homestore.com network of websites.
Homestore.com Acquires Senior Alternatives for Living. Acquiring the website establishes Homestore.com as the leading online provider of housing information for home buyers over 55 years of age, and for seniors and their decision-making children seeking a comprehensive directory of senior housing and related care options. The Senior Alternatives for Living Web site has been a leading online senior housing directory since 1996. Its client base includes industry leaders such as Marriott Senior Living Services, Sunrise Assisted Living, The Fountains, Aegis Assisted Living, ManorHouse Retirement Communities, National Guest Homes, Regent Assisted Living and ACTS Senior communities.
Homestore.com Signs Strategic Alliance with OnlineChoice. In a recent alliance with Online Choice, the fast-growing company that uses the Internet to pool consumers nationwide to maximize their buying power for vital household services, Homestore.com visitors will have the added convenience and opportunity for getting lower cost utilities and other types of household services. As part of the alliance, OnlineChoice will market and advertise its growing list of services to Homestore.com’s current monthly network audience of about 4.1 million unique users, offering relocating consumers the opportunity to lower the cost of utilities and other types of household services.
Vertical ASP - The Professional Solution
Homestore.com extends its position as the leading ASP for the home and real estate industry by expanding its business solutions to a broader base of home service professionals.
Homestore.com to become an ASP for the Nation’s Top Van Lines through the creation of iMove.com™. iMove.com, Inc. brings together the nation’s most widely recognized names in van lines - Allied, Bekins, Mayflower, North American and United Van Lines - in a joint venture with Homestore.com designed to redefine the online moving process. iMove.com’s five moving company participants will benefit from the arrangement with access to Homestore.com’s Internet technology, e-business expertise and market reach. The new joint venture is expected to lower the five participants’ average cost of sales, increase their transaction volume, and enhance their ability to optimize capacity utilization. For the first time, consumers will have a single unified source of information covering the nation's major moving companies, as well as a basis for comparing price quotes and making purchasing decisions online. In addition, they’ll find valuable editorial content and moving advice at iMove.com covering everything from packing to paying.
REFormsNet Gains Additional Partners. Seven new state Realtor® associations have signed three-year licensing agreements to use REFormsNet's electronic forms software for real estate transactions. Arizona, Michigan, South Carolina, Texas, Virginia, Missouri and Wisconsin all have agreed to use the new ZipForm Version 5 electronic forms software, the official forms software of the National Association of Realtors® (NAR). Pennsylvania has also indicated its intent to license its forms through REFormsNet. REFormsNet will now be available in 31 states and provinces through 110 associations and brokers. REFormsNet is a joint venture of the National Association of Realtors®; Homestore.com, Inc.; and Real Estate Business Services Inc. (REBS), a subsidiary of the California Association of Realtors.
As previously announced, REFormsNet, along with GMAC Real Estate and GMAC Mortgage; WyldFyre Technologies, Inc.; VeriSign; Prudential Real Estate Network and RE/MAX have announced their support of the Realtors® Electronic Transaction Platform, an online real estate transaction platform designed to facilitate and streamline the process of closing a home purchase or sale.
Homestore.com Acquires the Leading Provider of Relocation Transaction Software. With more than 1,500 clients, the Hessel Group leads the real estate industry in providing technology-driven relocation and transaction software solutions. Its proprietary programs track corporate moving expenses, calculate taxes, and manage corporate productivity during relocation. The company also offers domestic personal income tax preparation specifically designed for corporate transferees, and an Internet-based third party administration and property management platform.
Management Additions
Eric H. Geis Appointed President and Chief Executive Officer of FIRETAP Communications, Incorporated. This newly formed Homestore.com company provides enhanced telecommunications access to all professionals associated with the home and real estate industry. Geis brings 20 years of telecom industry experience to this new position, including his roles as president and chief executive officer of Quintessential Solutions, a data network communications software company, and chairman, president, and chief executive officer of Telequest, Inc., a public corporation specializing in proprietary telecommunications products. Geis, an MBA graduate of the University of Colorado, also has long-standing relationships with key technology companies including Cisco Systems, Microsoft, MCI WorldCom, Qwest and Excite@Home. Just prior to joining FIRETAP™, Geis was instrumental in establishing Rhythms NetConnections, Inc., an Internet communications company, as one of the leading pioneers in digital communications. Geis was responsible for implementing the company’s strategies in providing innovative and affordable DSL (digital subscriber lines) to most major metropolitan areas.
Conference Call
The Homestore.com conference call to discuss third quarter financial results and the company’s outlook and prospects will be broadcast live over the Internet on Thursday, October 19, 2000 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Log on to www.homestore.com, click on "Investor Relations," then "Conference Call," and then “Live Webcast.” RealPlayer software is required and is obtainable at no cost. Please connect to the above site 10 minutes prior to the call to load any necessary audio software. If you are unable to participate during the live webcast, a replay of the call will also be available in the same section of the company’s web site. A telephone replay will be available from 4:30 p.m. Pacific Time on Thursday, October 19, 2000 until midnight on Thursday, October 26, 2000 by dialing 719/457-0820 and giving the conference code of 701395.
About Homestore.com, Inc.
Homestore.com, Inc.'s family of web sites includes the Homestore.com™, Realtor.com®, HomeBuilder.com™, SpringStreet.com™ and HomeFair.com™ web sites. Consumers can view over 1.4 million new and existing homes for sale and find broker and agent services on Realtor.com®, the official Internet site of the National Association of Realtors®. Consumers searching for new homes can find more than 130,000 models, new homes and built to suit plans on HomeBuilder.com™, the official new homes site of the National Association of Home Builders. Consumers interested in renting an apartment will find listing information from more than 45,000 properties in more than 6,000 cities on SpringStreet.com™. Comprehensive moving and relocation information on the Internet is available from HomeFair.com™ and The Hessel Group (“THG”). In addition, Homestore.com's remodeling area covers home improvement needs for both consumers and remodeling professionals. In late spring and early summer of 2000, Homestore.com acquired WyldFyre Technologies, Inc., a leading developer of technology solutions for real estate professionals to access multiple listing services, Top Producer Systems, Inc., North America’s number one-selling provider of real estate software, and THG, the industry leader in providing technology leadership in relocation and tax management. THG will be integrated into a new unit called, Homestore Mobility Technologies, Inc. The Company also has content distribution relationships with America Online; Excite @Home; Netscape and Go Network/Infoseek.
1Unique users and user minutes are based on Media Metrix, 2+.
This press release contains forward-looking statements that are subject to material risks and uncertainties. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Actual results may differ materially and reported results should not be considered as an indicator of future performance. Risks and uncertainties that may affect our future results include, but are not limited to, the following: our ability to maintain and manage favorable agreements and relationships with the National Association of Realtors, the National Association of Home Builders, other individuals and entities in the real estate professional community, and Internet portals; our ability to continue to obtain a large percentage of available real property listings; our ability to obtain such listings on an exclusive basis; acceptance by consumers and real estate professionals of our business model; our ability to manage rapid growth, both internally and through acquisitions; the success of strategic alliances and joint ventures that we enter into; changes in the real estate markets; seasonality and other fluctuations in the company’s financial results; our ability to maintain high reliability for our server-based web services; and uncertainty as to the timing and amount of future Internet-related revenue and profits. The matters discussed in this press release also involve risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission (SEC). In particular, see “Risk Factors” in the final prospectus included in our registration statement declared effective by the SEC on January 26, 2000, our Annual Report on Form 10-K for the year ended December 31, 1999 and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2000 and June 30, 2000 filed with the SEC, and for the three and nine month periods ended September 30, 2000 which will be filed with the SEC in the future. We assume no duty to update the information in this press release if any forward-looking statement later turns out to be inaccurate.
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(FINANCIAL STATEMENT TABLES FOLLOW)
Basis of Presentation of Financial Information. Prior to February 4, 1999, the company operated under a complex legal and operating structure in which Homestore.com, Inc. was a holding company whose sole business was managing its investment in the operating entity. Accordingly, through February 4, 1999, this investment was accounted for under the equity method which means Homestore.com, Inc. did not record the results of operations related to the operating entity. In addition, the company completed its acquisitions of SpringStreet.com and HomeFair.com on June 30, 1999 and October 31, 1999, respectively.
Pro forma financial information includes a comparison of the results of operations of Homestore.com, Inc. as if the reorganization of the company’s holding company structure on February 4, 1999 and the SpringStreet.com and HomeFair.com acquisitions occurred January 1, 1999. This pro forma information has been presented to assist investors in evaluating our historical performance compared with current results. |
