LOOP is down sharply in after hours trading. For the fourth quarter of 2007, they reported revenues of $19.6 million, up from the analyst's consensus estimate of $19.14 million. Fully diluted earnings came in at $.14 per share, comfortably ahead of the consensus estimate of $.12 per share.
The after hours decline is probably related to their forward-looking estimates for 2008. They are looking for revenues in the $84-$86 million range and earnings in the range of $.45 to $.48 per share. Previously, the analysts were looking for $90.2 million in revenues and per share earnings of $.62.
LoopNet, Inc. Announces Fourth Quarter and Fiscal Year 2007 Financial Results
Tuesday February 5, 4:01 pm ET
Annual Revenue Growth of 46% - Adjusted EBITDA Growth of 46%
LoopNet, Inc. Also Announces Stock Repurchase Program
SAN FRANCISCO--(BUSINESS WIRE)--LoopNet, Inc. (NASDAQ:LOOP - News), today announced financial results for the fourth quarter and year ended December 31, 2007.
Revenue for the fourth quarter of 2007 was $19.6 million, an increase of 41% from $13.8 million in the fourth quarter of 2006. Net income for the fourth quarter of 2007 was $5.7 million or $0.14 per diluted share, compared to $5.3 million or $0.13 per diluted share in the fourth quarter of 2006. The effective tax rate for the fourth quarter of 2007 was 38.1% compared to 25.8% in the fourth quarter of 2006.
LoopNet’s Adjusted EBITDA (earnings before interest, tax, depreciation, amortization and stock-based compensation) for the fourth quarter of 2007 was $9.4 million, an increase of 40% from $6.7 million in the fourth quarter of 2006. The Company has reported Adjusted EBITDA because management uses it to monitor and assess the Company’s performance and believes it is helpful to investors in understanding the Company’s business.
For the full year, total revenue was $70.7 million, an increase of 46% from $48.4 million in 2006. Net income for the full year of 2007 was $21.1 million or $0.52 per diluted share, compared to $15.5 million or $0.40 per diluted share in 2006. Adjusted EBITDA for the full year of 2007 was $34.0 million, an increase of 46% from $23.2 million in 2006.
"During the fourth quarter, we made excellent progress in building our business, by enhancing our services, building our organization and servicing our customers,“ said Richard Boyle, Chairman and CEO of LoopNet. "We are continuing to focus on our strategy of aggregating the marketing and searching activity of the commercial real estate industry in the online world, and providing to those customers a better, more efficient and more cost effective solution for their marketing and searching needs.”
The number of LoopNet registered members, which includes both basic and premium members, grew to 2,567,729 during the fourth quarter of 2007, a 45% increase over the fourth quarter of 2006. The number of LoopNet premium members as of the end of the fourth quarter of 2007 was 88,340, a 12% increase over the fourth quarter of 2006. The average monthly price of premium membership increased to $56.00, an 18% increase over the fourth quarter of 2006. There were 560,000 total commercial real estate listings active on the LoopNet marketplace as of the end of the fourth quarter, a 22% increase over the fourth quarter of 2006. In addition, there were 35 million profile views of listings on the LoopNet marketplace during the quarter, a 2% increase over the fourth quarter of 2006. Average monthly unique visitors during the fourth quarter of 2007, as reported by comScore Media Metrix, were approximately 900,000, a 12% increase over the fourth quarter of 2006.
Balance Sheet and Liquidity
As of December 31, 2007, LoopNet had $107.9 million of cash, cash equivalents and short-term investments and no debt.
2008 Outlook
Based on current visibility, the Company expects revenue for the quarter ending March 31, 2008 to be in the range of $20.1 to $20.3 million, Adjusted EBITDA to be in the range of $8.9 to $9.1 million and net income to be in the range of $0.11 to $0.12 per diluted share, assuming stock-based compensation of approximately $0.02 per share (net of tax benefit) and an effective tax rate of approximately 41%. The Company expects revenue for the full year of 2008 to be in the range of $84 to $86 million, Adjusted EBITDA to be in the range of $37 to $39 million and net income to be in the range of $0.45 to $0.48 per diluted share, assuming stock-based compensation of approximately $0.10 per share (net of tax benefit) and an effective tax rate of approximately 41%.
Stock Repurchase Program
LoopNet, Inc. also announced today that the Company’s Board of Directors has approved the repurchase of up to an aggregate of $50 million of the Company’s common stock. The Company may repurchase LoopNet, Inc. common stock in the open market at prevailing market prices or in privately negotiated transactions from time to time based upon market and business conditions. Repurchases may also be made under a rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The stock repurchase program may be suspended or discontinued at any time, and will be funded using the Company’s available cash.
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The financial statements can be found here:
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