Homestore Reports 252% Growth In Second Quarter Revenue
Homestore.com, Inc. (Nasdaq: HOMS) today reported increased revenue, operating results, and professional subscribers and visitors to the company's web-based home and real estate network for its second quarter ended June 30, 2000. Revenues for the quarter increased 252% to $50.2 million over pro forma revenues of $14.2 million for the second quarter of 1999 and 30% over revenues of $38.6 million for the first quarter of 2000. The company's gross profit margin improved to 74% for the quarter, up from 63%, on a pro forma basis, for the second quarter of 1999 and from 73% for the first quarter of 2000. Pro forma net loss for the quarter was $2.8 million, or $0.03 per share. That compares to a pro forma net loss of $20.9 million, or $0.36 per share, for the second quarter of 1999 and $10.0 million, or $0.14 per share, for the first quarter of 2000. Pro forma net losses exclude the effects of non-cash charges for: (i) stock-based charges and (ii) amortization of intangible assets. To enhance comparability, pro forma operating results assume that the acquisitions of SpringStreet.com(tm) and HomeFair.com(tm), 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 $50.2 million, compared to $11.0 million for the second quarter of 1999 and $38.6 million for the first quarter of 2000. Net loss for the quarter was $24.7 million, or $0.31 per share, compared to $18.3 million, or $0.75 per share, for the second quarter of 1999, and $29.2 million, or $0.39 per share, for the first quarter of 2000. Icreased revenue from both professional subscriptions and advertising drove overall revenue growth in the second quarter. Revenue growth from professional subscriptions was primarily due to an increase in the number of professionals on the Homestore.com(tm) family of web sites. Professional subscriptions rose to almost 122,000 at June 30, 2000, representing increases of 64% and 14%, compared to totals at June 30, 1999 and March 31, 2000, respectively. The increase in professional subscriptions included the Realty Executives International, Inc. corporate sponsorship agreement signed in May. 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 second quarter. For April and May 2000, the monthly average number of unique users visiting the Homestore.com network rose to 3.6 million, a 51% increase over the second quarter of 1999 and a 25% increase over the first quarter of 2000.1 During April and May 2000, each unique user spent an average of 26.1 minutes per month on the network, a 17% increase over the second quarter of 1999 and consistent with the first quarter of 2000.1 Page views were 626 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 5.9 billion. "Another excellent quarter of execution by our team," said Stuart Wolff, the company's chairman and chief executive officer. "We are furthering our leadership position to both consumers and professionals as we build out the online home and real estate marketplace." Wolff added, "Based on the strength of our financial performance, we expect the company to reach cash profitability by the fourth quarter of this year, which will place Homestore.com in an elite group of Internet companies." |
