LoopNet, Inc. (
Q3 2010 Earnings Conference Call
October 27, 2010 4:30 PM ET
Derek Brown – VP, IR & Corporate Planning
Rich Boyle – CEO and Chairman
Brent Stumme – CFO and SVP, Finance & Administration
John Blackledge – Credit Suisse
Ian Corydon – B. Riley & Company
Brett Huff – Stephens
Jim Wilson – JMP Securities
Steve Weinstein – Pacific Crest
Previous Statements by LOOP
» LoopNet, Inc. Q2 2010 Earnings Call Transcript
» LoopNet Inc. Q1 2010 Earnings Call Transcript
» LoopNet Inc. Q4 2009 Earnings Call Transcript
» LoopNet Inc. Q3 2009 Earnings Call Transcript
Welcome to LoopNet Incorporated’s Earnings Conference Call for the third quarter of 2010. The date of this call is October 27, 2010. This call is the property of LoopNet Incorporated and any recording, reproduction or transmission of this conference call without the expressed prior written consent of LoopNet Incorporated is strictly prohibited. This call is being recorded.
You may listen to a webcast replay of this call by going to the Investor Relations section of LoopNet’s website. The webcast will be available on the company’s website until October 30, 2010.
I will now turn the call over to Derek Brown, Vice President of Investor Relations and Corporate Planning. Please proceed, Mr. Brown.
Good afternoon. Thank you for joining us to discuss LoopNet Inc.’s financial and operating results for the third quarter of 2010. With me today are Rich Boyle, Chief Executive Officer and Chairman; and Brent Stumme, Chief Financial Officer. In addition to discussing our performance in Q3 2010 during this call, we plan to share our perspective on current conditions in the commercial real estate industry and discuss how these conditions are impacting our business. We will also provide you with updates on new investments we are making to expand the breadth and depth of the services we provide to our customers.
First, Rich Boyle will provide some context for quantitative result and offer some color on our business and plans for the future. Then Brent Stumme will walk through our third quarter financial results and guidance for Q4 2010. Following these prepared remarks, we will open the lines for your questions.
In Q4 2010, LoopNet has plans to meet with institutional investors in Boston and New York among other locations and we will be participating in SunTrust Robinson Humphrey’s (inaudible) conference next week followed by Credit Suisse’s Annual Technology Conference from November 29 through December 2. We hope to see you at these events but we will also make webcast of our presentations available on the Investor Relations section of LoopNet’s website.
I would now like to bring the following to your attention. On the call today, you may hear forward-looking statements about events and circumstances that have not yet occurred. Actual outcomes and results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties. Please refer to the Company’s recent SEC filings at the SEC’s website at www.sec.gov for detailed discussions of the relevant risk and uncertainties. The company does not intend to update the forward-looking statements in this conference call, which are based on information available to us as of the date of this call.
The press release distributed today that announced the company’s results is available on the company’s website at www. LoopNet.com in the Investor Relations section, under Financial Press Releases. The current report on Form 8-K furnished with respect to our press release is available on the company’s website in the Investor Relations section under SEC Filings and on the SEC’s website.
You will also hear discussion of non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most comparable GAAP financial measures are contained in the press release distributed today and available on the Investor Relations section of the company’s website.
Now, I will turn the call over to Rich Boyle, Chief Executive Officer and Chairman.
We are very pleased to report that LoopNet delivered strong financial results in the third quarter and made significant progress on a number of important initiatives intended to increase our utility to customers and drive growth in our business in the quarters and years ahead. Overall, we think these better than expected results speak to the strength of our underlying business model, our financial discipline and team’s ability to execute stabilizing industry conditions and the effective recent acquisitions among other factors. We are particularly excited to see revenue growth accelerate further and are optimistic that this trend will continue in coming quarters driven by three key factors.
First, our ongoing efforts to aggregate marketing and searching activity in our commercial real estate business for sale and land for sale marketplaces. Second, expanding the array of products and services we deliver to our customers particularly some of our new information services. And third, stabilization and in some areas improvements in the market conditions in the commercial real estate and business for sale industry. We made progress and saw positive signs in all three of these areas of the business in the third quarter and on today’s call we plan to take you through each and give you a better sense of what we are saying.
So let’s begin with a quick review of current conditions in the commercial real estate market to provide some context for the discussion about our business initiatives and results. In short, the industry continues to grind slow along the bottom with overall transaction activity remaining at a historically low level as we had anticipated. While signs of stabilization and modest improvement continue to emerge across many dimensions, the fact remains that most segments of the industry especially those targeting the long tail of small transactions remain extremely weak by any normalized historical standard. The volume of for-sale transactions has continued to raise throughout the year but at a fairly gradual pace.