ZipRealty, Inc. (Nasdaq: ZIPR) today announced financial results for its first quarter ended March 31, 2010. For the first quarter, net revenues were $25.8 million, an 18.8% increase from the $21.7 million reported in the first quarter last year. The Company’s net loss for the period was $6.2 million, or $0.31 per share, compared to a net loss of $7.5 million, or $0.38 per share, in the year-ago period. Adjusted EBITDA for the first quarter was a $5.0 million loss versus a loss of $6.2 million in the first quarter last year.
Pat Lashinsky, President and CEO of ZipRealty commented, “We were pleased with first quarter results which saw an 18.8% revenue gain driven by strong volume and stable home prices. Improved gross margins and controlled expense growth helped narrow our operating loss versus the prior period. In terms of our strategic initiatives, listing close volumes increased 73% year to year, non-transaction revenue doubled, and we outpaced the industry to gain market share again in the first quarter.”
Lashinsky continued, “Innovation remains a high priority, and we continue to develop features designed to improve the ZipRealty experience for buyers and sellers. In 2010, we launched our application for Android phones, released a ground-breaking second generation iPhone application bringing augmented reality to real estate, and we then made it all available for Apple's iPad as well. These, and other advancements over the years, have helped build our brand into a differentiated platform with the industry’s most trafficked website, and in April, we were gratified to have completed our 100,000th real estate transaction since our start in 1999.”
The Company announced the following operating metrics for the first quarter of 2010:
Balance Sheet & Liquidity
- The total value of real estate transactions closed increased to $1.1 billion in the first quarter of 2010 versus $909 million in the same period last year.
- The total number of transactions closed was 4,903, compared to 4,171 in the same period last year.
- Average net transaction revenue per close decreased approximately 1.0% to $5,067 from $5,119 in the same period last year.
- At March 31, 2010, there were 3,017 ZipAgents employed, up from 2,989 agents at the end of the first quarter of 2009 and down from 3,085 agents at December 31, 2009.
As of March 31, 2010, the Company had approximately $38.1 million of cash, cash equivalents and short-term investments, with no long-term debt. Relative to December 31, 2009 ZipRealty’s cash, cash equivalents and short-term investments decreased by approximately $6.0 million reflecting the use of cash during the Company’s seasonally smallest quarter.