LoopNet Inc. (LOOP)
Q1 2010 Earnings Call
April 28, 2010 04:30 pm ET
Derek Brown - VP of IR and Corporate Planning
Rich Boyle - Chairman and CEO
Brent Stumme - CFO
Ian Corydon - B. Riley & Company
Steve Weinstein - Pacific Crest
Brett Huff - Stephens
Previous Statements by LOOP
» LoopNet Inc. Q4 2009 Earnings Call Transcript
» LoopNet Inc. Q3 2009 Earnings Call Transcript
» LoopNet Inc. Q2 2009 Earnings Call Transcript
Welcome to LoopNet Inc. earnings conference call for the first quarter of 2010. The date of this call is April 28, 2010. This call is the property of LoopNet Inc., and any recording, reproduction or transmission of this conference call without the expressed prior written consent of LoopNet is strictly prohibited. This call is being recorded.
You may listen to a web cast replay of this call by going to the Investor Relations section of LoopNet’s website. The web cast will be available on the company’s website until April 30th, 2010. I will now turn the call over to Derek Brown, Vice President, Investor Relations and Corporate Planning.
Good afternoon. Thank you for joining us to discuss LoopNet Inc.’s financial and operating results for the first quarter of 2010. With me today are Rich Boyle, Chief Executive Officer and Chairman; and Brent Stumme, Chief Financial Officer. Today Rich will begin with an overview of the business and overall corporate strategy continued by a summary of the company’s first quarter performance and review of the marketplace. Brent will review the first quarter’s financial results and provide second quarter 2010 guidance.
In May 2010, LoopNet will be meeting with institutional investors around the country. On May 10th, we will participate in the JMP Securities Research Conference in San Francisco California. On May 25th, we will present the B. Riley’s 11th Annual Investor Conference in Santa Monica and on May 26th, we will be in Manhattan for the Steven Spring Investment Conference. We hope to see you at these events but we’ll also make web casts 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 is 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 their 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.
Thank you Derek. I’d like to welcome all of you to the LoopNet first quarter 2010 earnings call. On our call today we will discuss our performance during the first quarter and share with you our perspective on current conditions in the commercial real estate industry and discuss all those conditions that are impacting our business. Additionally we will provide you with updates on a number of other ongoing initiatives of the company. Following my prepared remarks and those of Brent Stumme our Chief Financial Officer, we will be opening the line for your questions.
The first quarter of 2010 marked an inflection point for LoopNet and we are very pleased with the overall performance of our company. Among the many achievements in this past quarter we highlight the following: comfortably exceeding the financial targets we set three months ago, increasing revenue sequentially for the first time since the third quarter of 2008, increasing our base of premium members sequentially for the first time since the third quarter of 2007.
Advancing our efforts to organically expand the scale of our marketplace and the scope of our services closing two acquisitions BizQuest and Reaction Web and the investment in auction point that add to our footprint and expand our solutions set for our customers. Needless to say it was a busy first quarter, we are particularly excited about the progress we are making on products and initiatives we expect will deliver value to our customers and create value for our shareholders as we bring them to market overtime. And finally all of this was achieved despite dynamics in deal volume in the commercial real estate industry that continued to be very challenging by any normal historical standard.
Revenue in Q1 of 2010 was $18.8 million compared to our guidance of $18.1 million to $18.3 million and adjusted EBITDA was $6.9 million or $0.16 per share compared to our guidance of $6.3 million to $6.5 million. Our adjusted EBITDA margin for the quarter was 36.4% toward the higher end of our stated target range for 2010 of low to mid-30s on a percent basis.
In our view these better than expected results highlight the health of our underlying business model reflects favorably on our consistent financial discipline and the ability of our team to execute and indicate a modest improvement in broader commercial real estate industry conditions.