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HomeAway, Inc. Reports First Quarter 2013 Financial Results

Stocks in this article: AWAY

Total revenue of $79.5 million, up 24.0% year-over-year and up 24.2% on an FX neutral basis, year-over-year

Adjusted EBITDA of $21.8 million, up 56.1% year-over-year

TTM Free Cash Flow generation of $90.4 million, up 21.3% year-over-year

AUSTIN, Texas, April 23, 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 first quarter ended March 31, 2013.

Management Commentary

"We're thrilled with our start to the year and our ability to continue delivering financial results ahead of our expectations," says Brian Sharples, chief executive officer of HomeAway. "For the first quarter, we delivered year-over-year growth of 24% in total revenue and 56% in adjusted EBITDA. Due to the subscription nature of our business model, we are afforded a high-degree of revenue visibility in addition to attractive profitability and free cash flow characteristics."

Mr. Sharples continues, "Year-after-year, we pride ourselves on being the leading destination for travelers seeking vacation rentals for family and group travel. For the quarter, traffic was up 22% over the prior year, with the total business attracting over 207 million visits, a new record for HomeAway. We continue to uphold our reputation as one of the most efficient marketing channels for individual owners and property managers alike. We look forward to building upon our category leadership through continued investment in product innovation and the initial launch of our pay-per-booking product to individual U.S. owners by the end of the third quarter of this year."

First Quarter 2013 Financial Highlights

  • Total revenue increased 24.0% to $79.5 million from $64.1 million in the first quarter of 2012. On an FX neutral basis, year-over-year revenue growth was 24.2%. Growth in total revenue primarily reflects an increase in new listings, an increase in average revenue per listing as a result of tiered pricing and bundled product offerings and the benefit of ancillary product and service revenue.
  • Listing revenue increased 23.8% to $66.8 million from $54.0 million in the first quarter of 2012. On an FX neutral basis, year-over-year listing revenue growth was 24.1%.
  • Other revenue, which is comprised of ancillary revenue from owners and travelers, advertising, software and other items, increased 24.6% to $12.6 million from $10.1 million in the first quarter of 2012. Growth in other revenue primarily reflects the introduction and enhanced distribution of value-added owner, manager and traveler products.
  • Adjusted EBITDA increased 56.1% to $21.8 million from $14.0 million in the first quarter of 2012.  As a percentage of revenue, adjusted EBITDA was 27.4%. 
  • Free cash flow increased 18.4% to $33.3 million from $28.2 million in the first quarter of 2012. 
  • Net income was $5.3 million, or $0.06 per diluted share, compared to net income of $2.4 million, or $0.03 per diluted share, in the first quarter of 2012.
  • Pro forma net income was $12.2 million, or $0.14 per diluted share, compared to pro forma net income of $7.4 million, or $0.09 per diluted share, in the first quarter of 2012. 
  • Cash, cash equivalents and short-term investments as of March 31, 2013 were $314.4 million, or approximately $3.63 per diluted share.

Key Business Metrics

  • Paid listings at the end of the first quarter were 742,299, a year-over-year increase of 6.2% from 699,088 at the end of the first quarter of 2012. 
  • Average revenue per listing during the first quarter was $368, a 14.3% increase from $322 during the first quarter of 2012. Excluding the impact of FX and pay-per-lead listings, average revenue per subscription listing increased 13.5% year-over-year.
  • Renewal rate was 73.6% at the end of the first quarter, compared to 77.0% at the end of the first quarter of 2012 and 73.8% at the end of the fourth quarter of 2012.
  • Visits were 207.1 million during the first quarter, a year-over-year increase of 29.7%. During the fourth quarter of 2012, 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 first quarter of 2013, and for future periods. Absent this change, HomeAway estimates:

  • Paid listings growth would have been approximately 9.5%;
  • Average revenue per listing would have been $359 and when excluding the impact of the same adjustments for consolidated listings and new bundled offerings, in addition to FX and pay-per-lead listings, average revenue per subscription listing would have been up 10.3%; and
  • Renewal rate would have been 74.9%, compared to 77.0% at the end of the first quarter of 2012 and 74.4% at the end of the fourth quarter of 2012.

Business Outlook

HomeAway management currently expects to achieve the following results for second quarter ending June 30, 2013 and the year ending December 31, 2013, as follows:

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