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HomeAway, Inc. Reports Fourth Quarter And Full Year 2012 Financial Results

2012 Total revenue of $280.4 million, up 21.8% year-over-year and up 24.6% on an FX neutral basis, year-over-year

2012 Adjusted EBITDA of $80.3 million, up 20.4% year-over-year

TTM Free Cash Flow generation of $85.3 million, up 32.2% year-over-year

AUSTIN, Texas, Feb. 20, 2013 (GLOBE NEWSWIRE) -- HomeAway, Inc. (Nasdaq:AWAY), the world's leading online marketplace for the vacation rental industry, today reported its financial results for the fourth quarter and full year ended December 31, 2012.

Management Commentary

"2012 was a year of significant accomplishment for HomeAway," says Brian Sharples, chief executive officer of HomeAway. "For the year, we delivered 22% revenue growth and a 32% increase in free cash flow. We were especially pleased to deliver throughout 2012 financial performance consistently in-line to ahead of our expectations, while making significant strides against our long-term strategy and broader mission."

Mr. Sharples continued, "Perhaps one of the most significant accomplishments of 2012 was the migration of VRBO.com to our common network. Post-migration, we achieved critical mass, with 75% of total listings now accessible on our global platform. This undertaking paved the way for the introduction of a more robust tiered pricing system with new bundled product offerings, the advancement of e-commerce and an overall improved user experience for property owners, managers and travelers."

"Of primary focus in 2013 is the continued rollout of our e-commerce capabilities and in particular, the introduction of our pay-per-booking pricing model and continued distribution of value-added services. To address the e-commerce opportunity, we have a very focused product development roadmap, which we feel confident our team will continue to deliver against," added Mr. Sharples.

Fourth Quarter 2012 Financial Highlights

  • Total revenue increased 22.4% to $71.6 million from $58.5 million in the fourth quarter of 2011. On an FX neutral basis, year-over-year revenue growth was 23.4%. Growth in total revenue primarily reflects an increase in new listings and the benefit of ancillary product and service revenue.
  • Listing revenue increased 22.8% to $62.4 million from $50.8 million in the fourth quarter of 2011, and 23.9% on an FX neutral basis, year-over-year.
  • Other revenue, which is comprised of ancillary revenue from owners and travelers, advertising, software and other items, increased 19.8% to $9.2 million from $7.7 million in the fourth quarter of 2011. Growth in other revenue primarily reflects the introduction and enhanced distribution of value-added owner, manager and traveler products.
  • Adjusted EBITDA increased 27.6% to $21.3 million from $16.7 million in the fourth quarter of 2011. As a percentage of revenue, adjusted EBITDA was 29.8%.
  • Free cash flow increased 47.1% to $21.9 million from $14.9 million in the fourth quarter of 2011.
  • Net income attributable to common stockholders was $4.5 million, or $0.05 per diluted share, compared to a net loss attributable to common stockholders of $256 thousand, or break-even per diluted share, in the fourth quarter of 2011.
  • Pro forma net income was $11.6 million, or $0.14 per diluted share compared to pro forma net income of $5.9 million, or $0.07 per diluted share in the fourth quarter of 2011.

Full Year 2012 Financial Highlights

  • Total revenue increased 21.8% to $280.4 million from $230.2 million in 2011. On an FX neutral basis, year-over-year revenue growth was 24.6%.
  • Listing revenue increased 19.3% to $238.0 million from $199.5 million in 2011, and 22.5% on an FX neutral basis, year-over-year.
  • Other revenue increased 37.9% to $42.4 million from $30.8 million in 2011.
  • Adjusted EBITDA increased 20.4% to $80.3 million from $66.8 million in 2011. As a percentage of revenue, adjusted EBITDA was 28.7%.
  • On a trailing twelve month basis, free cash flow increased 32.2% to $85.3 million from $64.5 million in the comparable trailing twelve month period for the prior year.
  • Net income attributable to common stockholders was $15.0 million, or $0.18 per diluted share, compared to a net loss attributable to common stockholders of $18.5 million or $0.31 per diluted share in 2011. The measures of net loss attributable to common stockholders and of net loss attributable to common stockholders per diluted share for 2011 include the negative impact of cumulative preferred stock dividends and discount accretion, which represented $24.7 million, or $0.41 per diluted share. Following the completion of HomeAway's initial public offering in June 2011, there has been no preferred stock outstanding subsequent to the third quarter of 2011. As such, there is no such similar impact on these measures for the comparable period in 2012.
  • Pro forma net income was $40.6 million, or $0.48 per diluted share compared to pro forma net income of $29.2 million, or $0.49 per diluted share in 2011.
  • Cash, cash equivalents and short-term investments as of December 31, 2012 were $269.8 million, or approximately $3.18 per diluted share.

Key Business Metrics

  • Paid listings at the end of the fourth quarter were 711,631, a year-over-year increase of 11.0% from 640,925 at the end of the fourth quarter of 2011.
  • Average revenue per listing during the fourth quarter was $349, an 8.7% increase from $321 during the fourth quarter of 2011. Excluding the impact of FX and pay-per-lead listings, average revenue per subscription listing would have been up 11.0%.
  • Renewal rate was 73.8% at the end of the fourth quarter, compared to 76.8% at the end of the fourth quarter of 2011.
  • Visits were 124.0 million during the fourth quarter, a year-over-year increase of 27.2%. During the fourth quarter, HomeAway began using a different tool for the measurement of visits for certain of its websites. On a comparable basis, HomeAway estimates that visits would have increased by 22.1% year-over-year.

Note: The recent ability of customers to consolidate listings and to purchase network product bundles impacts comparability of HomeAway's previously reported metrics for the fourth quarter of 2012, and for future periods. Absent this change, HomeAway estimates:

  • Paid listings growth would have been as high as 13%;
  • Average revenue per listing would have been $345 and excluding the impact of FX and pay-per-lead listings, average revenue per subscription listing would have been up 9.6%; and
  • Renewal rate would have been 74.4%.

Business Outlook

HomeAway management currently expects to achieve the following results for first quarter ending March 31, 2013 and the year ending December 31, 2013, as follows:

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