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Trulia Reports Fourth Quarter And Full Year 2012 Results

Use of Non-GAAP Financial Measures: Adjusted EBITDA and Pro Forma Net Loss

Trulia’s stated results include certain non-GAAP financial measures, including Adjusted EBITDA and pro forma net loss. We define Adjusted EBITDA as net loss adjusted to exclude interest income, interest expense, depreciation and amortization, change in fair value of warrant liability, and stock-based compensation. We define pro forma net loss as net loss adjusted to exclude stock-based compensation. Adjusted EBITDA and pro forma net loss exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. Trulia believes these adjustments provide useful comparative information to investors.

Trulia also considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company and are used by the Company’s management for that purpose. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding the Company’s operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non- GAAP measures used by other companies.

For future periods, Trulia is unable to provide a reconciliation of Adjusted EBITDA to net loss as a result of the uncertainty regarding, and the potential variability of, the amounts of interest income, interest expense, depreciation and amortization, change in fair value of warrant liability, and stock-based compensation that is expected to be incurred in the future.

TRULIA, INC.Condensed Statements of Operations (In thousands, except share and per share data) (Unaudited)
     
Years Ended December 31,

Three Months Ended December 31,

2012 2011 2012 2011
 
Revenues $ 68,085 $ 38,518 $ 20,554 $ 11,737
Costs and expenses:

Cost of revenues (exclusive of amortization of product development cost)

9,999 5,795 2,692 1,794
Technology and development 20,199 14,650 5,059 4,373
Sales and marketing 33,747 17,717 10,109 5,429
General and administrative   13,659       6,123     4,003       1,932  
Total costs and expenses 77,604 44,285 21,863 13,528
Loss from operations (9,519 ) (5,767 ) (1,309 ) (1,791 )
Interest income 50 17 26 7
Other expense (1,083 ) (389 ) (309 ) (254 )
Change in fair value of warrant liability   (369 )     (16 )   -       (16 )
Loss before provision for income taxes (10,921 ) (6,155 ) (1,592 ) (2,054 )
Provision for income taxes   -       -     -       -  
Net loss attributable to common stockholders $ (10,921 ) $ (6,155 ) $ (1,592 ) $ (2,054 )
Net loss per share attributable to common stockholders, basic and diluted $ (0.87 ) $ (0.92 ) $ (0.06 ) $ (0.30 )
Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted 12,538,769 6,657,045 27,328,415 6,772,664
 
Reconciliation of pro forma net loss per share attributable to common stockholders, basic and diluted, to net loss:
 
Net loss attributable to common stockholders (10,921 ) (6,155 ) (1,592 ) (2,054 )
Stock-based compensation (Note A)   2,570       1,484     761       343  
 
Pro forma net loss per share attributable to common stockholders, basic and diluted $ (8,351 ) $ (4,671 ) $ (831 ) $ (1,711 )
 
Pro forma net loss per share attributable to common stockholders, basic and diluted (0.67 ) (0.70 ) (0.03 ) (0.25 )
 
 
Reconciliation of Adjusted EBITDA to net loss:
 
Net loss attributable to common stockholders $ (10,921 ) $ (6,155 ) $ (1,592 ) $ (2,054 )
Non-GAAP adjustments:
Interest income (50 ) (17 ) (26 ) (7 )
Other expense 1,083 389 309 254
Depreciation and amortization 3,585 2,496 1,112 775
Change in fair value of warrant liability 369 16 - 16
Stock-based compensation (Note A)   2,570       1,484     761       343  
Adjusted EBITDA $ (3,364 ) $ (1,787 ) $ 564 $ (673 )
 
 
Note (A)
Stock -based compensation was allocated as follows:
 
Year Ended December 31,

Three Months Ended December 31,

  2012       2011     2012       2011  
Cost of revenues $ 32 $ 11 $ 12 $ 4
Technology and development 930 482 301 163
Sales and marketing 398 183 122 47
General and administrative   1,210       808     326       129  
Total stock-based compensation $ 2,570     $ 1,484   $ 761     $ 343  
 
TRULIA, INC.Condensed Balance Sheets (In thousands) (Unaudited)
   
December 31, 2012   December 31, 2011
 
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 100,017 $ 7,041
Short-term investments - 4,300
Accounts receivable, net of allowance for doubtful accounts of $142 and $80 as of December 31, 2012 and December 31, 2011 6,095 3,715
Prepaid expenses and other current assets   1,413       524  
Total current assets 107,525 15,580
Restricted cash 385 -
Property and equipment, net 7,069 5,548
Goodwill 2,155 2,155
Other assets   1,830       912  
TOTAL ASSETS $ 118,964 $ 24,195
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 525 $ 1,335
Accrued liabilities 2,916 1,505
Accrued compensation and benefits 4,500 2,042
Deferred revenue 13,296 4,827
Deferred rent, current portion 444 387
Capital lease liability, current portion 217 292
Long-term debt, current portion 2,665 730
Preferred stock warrant liability - 297
Other current liabilities   330       -  
Total current liabilities 24,893 11,415
Deferred rent, net of current portion 407 638
Capital lease liability, net of current portion 16 156
Long-term debt, net of current portion 7,094 8,862
Other long-term liabilities   20       85  
Total liabilities 32,430 21,156
Commitments and contingencies
STOCKHOLDERS' EQUITY
Convertible preferred stock - -
Common stock - -
Additional paid-in capital 133,659 39,243
Accumulated deficit   (47,125 )     (36,204 )
Total stockholders' equity   86,534       3,039  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 118,964 $ 24,195
 
TRULIA, INC.Statements of Cash Flows (In thousands) (Unaudited)
 
  Years Ended December 31,
2012   2011
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net loss $ (10,921 ) $ (6,155 )
 
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 3,585 2,496
Stock-based compensation 2,570 1,484
Provision for doubtful accounts 95 176
Issuance of common stock warrants in exchange for services - 93
Change in fair value of warrant liability 369 16
Amortization of debt discount 167 38
Amortization of debt issue cost 30 10
Changes in operating assets and liabilities:
Accounts receivable (2,475 ) (1,427 )
Prepaid expenses and other current assets (889 ) (286 )
Other assets (722 ) (168 )
Accounts payable (864 ) 336
Accrued liabilities 1,811 100
Accrued compensation and benefits 2,458 666
Deferred rent (174 ) 651

Other current liabilities

330 -
Deferred revenue 8,469 3,017
Other long-term liabilities   (65 )   85  
Net cash provided by operating activities   3,774     1,132  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in restricted cash (385 ) (2,200 )
Decrease in restricted cash - 4,645
Reclass from restricted cash to short-term investments - (4,300 )
Maturities of short-term investments 4,300 -
Purchases of property and equipment   (5,506 )   (4,783 )
Net cash used in investing activities   (1,591 )   (6,638 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from initial public offering, net of underwriting discounts 93,279 -
Payments of costs related to initial public offering (3,832 ) -
Proceeds from long-term debt - 12,035
Repayment of notes payable - (110 )
Repayments on long-term debt - (4,045 )
Repayments on capital lease liability (334 ) (181 )
Proceeds from exercise of stock options 1,680 408
Proceeds from exercise of common stock warrants   -     45  
Net cash provided by financing activities   90,793     8,152  
NET INCREASE IN CASH AND CASH EQUIVALENTS 92,976 2,646
CASH AND CASH EQUIVALENTS — Beginning of period   7,041     4,395  
CASH AND CASH EQUIVALENTS — End of period $ 100,017 $ 7,041
 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest $ 791   $ 263  
Cash paid for income taxes $ 4   $ 10  
 
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of preferred stock warrants in connection with debt financing $ -   $ 281  
Stock-based compensation capitalized in product development costs $ 66   $ 22  
Purchase of equipment under capital leases $ 119   $ 439  
Net change related to purchase of equipment in accounts payable and accrued liabilities $ 54   $ (584 )
Conversion of preferred stock warrants to common stock warrants $ 666   $ -  




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