Welcome!

Web 2.0 Authors: Rick Delgado, Liz McMillan, Yeshim Deniz, Pat Romanski, Carmen Gonzalez

News Feed Item

Market Leader(R) Grows Revenue 32%

Second Consecutive Year of 30%+ Growth; With Similar Growth Expected in 2013

KIRKLAND, WA -- (Marketwire) -- 02/27/13 -- Market Leader, Inc. (NASDAQ: LEDR) today announced continued growth, financial and operational progress for the fourth quarter and year ended December 31, 2012.

Revenue Growth Continues for 12th Consecutive Quarter

  • Revenue increased 32% to $45 million from $34 million in 2011; quarterly revenue increased 27% to $12 million compared with the fourth quarter of 2011

  • Net loss for the year decreased to $7.8 million from $14.2 million in 2011; quarterly net loss decreased to $1.2 million from $4.1 million compared with the fourth quarter of 2011

  • Adjusted EBITDA increased to a positive $1.7 million in 2012, up $9.0 million from an Adjusted EBITDA loss of $7.3 million in 2011; quarterly Adjusted EBITDA increased to a positive $0.9 million compared with an Adjusted EBITDA loss of $0.8 million in the fourth quarter of 2011

  • Cash, cash equivalents and short-term investments totaled $22.2 million at the end of 2012

"2012 marked a major milestone for Market Leader, as we achieved our second consecutive year of more than 30% revenue growth," said CEO Ian Morris. "We continue to be very bullish about the opportunity in front of us, and we expect to achieve similar growth in 2013."

Strong Results Driven by Differentiated Strategy and Software Leadership
Market Leader's revenue growth has been driven in part by the success that customers are seeing with its software as a service (SaaS) based products. During 2012, Market Leader extended its sizable leadership in real estate software by making numerous enhancements to its already comprehensive SaaS platform. These significant enhancements include the integration of the industry's leading email and print marketing suite with its software platform, providing real estate professionals with a single, fully integrated and comprehensive solution that includes everything they need to grow and manage their businesses.

Unmatched Access to Real Estate Professionals Provides Unique Competitive Advantage
Market Leader's software leadership serves as the cornerstone of its strategy focused on establishing deep, long-term relationships with real estate professionals. Over the past two years, Market Leader has increased its customer base from less than 20,000 agents, to nearly 125,000. This strong growth began with the signing and rollout of the company's first national enterprise partner in 2011 and the success from this partnership has attracted the attention of other national franchises.

During 2012, Market Leader signed two more enterprise-wide agreements with two of the nation's leading real estate franchise companies. These new enterprise partnerships are expected to extend Market Leader's already unmatched access to real estate professionals.

Together with the company's social media network -- the largest of its kind in real estate with more than 330,000 professional members -- these partnerships give Market Leader access to more than one out of every three real estate professionals in North America and a unique competitive advantage that creates a low cost distribution channel for the company's premium services.

Premium Upsell Opportunities Expected to Drive Strong and Predictable Growth
Market Leader is in the early stages of monetizing this unique advantage, and expects that increasing its share of the nearly $24 billion that is spent on real estate marketing and technology services each year will be a significant source of continued and predictable growth for years to come. Of this large market, Market Leader's current product offerings are focused on the $11 billion that is spent by residential real estate professionals.

Market Leader estimates that it currently captures only a small portion of what's spent on these services by the nearly 125,000 customers already using the company's software platform to run their businesses. Market Leader provides its customers with the opportunity to enhance their software by upgrading to its premium products and services with just one click, and the company's recent growth demonstrates that its share of these dollars is growing, and it fully expects this to be a continued source of growth.

Real Estate Professionals Are Bullish About Market Conditions
Market Leader is seeing strong sales of its software and marketing products due to both the effectiveness of these solutions as well as improving real estate market conditions. Market Leader recently conducted a survey of the 330,000 members of its social media network to get their perspective on local market conditions and found that 84% expect their local markets to improve in 2013, both in terms of transactions and in terms of home prices. In fact, according to REAL Trends, existing homes sales for 2013 are projected to be at the highest level since 2006.

This renewed optimism is motivating agents and brokers to invest more in the tools that will help them grow their businesses, a trend that Market Leader expects will help drive increased sales and penetration of its premium products.

Conference Call
The company will host a conference call and live Webcast to discuss fourth quarter and 2012 annual results on Wednesday, February 27, 2013 at 4:30 p.m. Eastern time. To listen to the live conference call, please dial (719) 457-2661. A live Webcast of the call will be available from the Investor Relations section of the company's Web site at www.investor.marketleader.com. An audio replay of the call will also be available to investors beginning on February 27 at 7:30 p.m. Eastern time and ending on March 4 at 7:30 p.m. Eastern time by dialing (719) 457-0820 and entering the passcode 7746789#.

About Market Leader, Inc.
Market Leader, founded in 1999, provides innovative online technology and marketing solutions for real estate professionals across the United States and Canada. The company serves nearly 125,000 real estate agents, brokerages and franchisors, offering complete end-to-end solutions that enable them to grow and manage their businesses. Market Leader's subscription-based real estate marketing software -- including websites, contact management, a marketing center, and lead generation services -- helps customers generate a steady stream of prospects, and provides the systems and training they need to convert those prospects into clients. In addition, the company's national consumer real estate sites, including www.RealEstate.com, give its customers access to millions of future home buyers and sellers, while providing consumers with free access to the information they seek.

For more information on Market Leader visit www.MarketLeader.com.

Forward-Looking Statements
This release contains forward-looking statements relating to the company's anticipated plans, products, services, and financial performance. The words "believe," "expect," "anticipate," "intend" and similar expressions identify forward-looking statements, but their absence does not mean the statement is not forward-looking. These statements and, specifically, statements or predictions about the company's potential market, product development plans, and future financial performance, are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect the company's actual results include its ability to retain and increase its customer base, including enterprise customers and real estate professionals, to sell premium products to real estate professionals associated with enterprise customers, to continue to grow revenues, to respond to competitive threats and real estate market conditions, to develop new products, and to develop new revenue sources from its RealEstate.com assets. Please refer to the company's most recent Form 10-K filed with the Securities and Exchange Commission for a more detailed description of these and other risks that could materially affect actual results. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of today's date and the company assumes no obligation to update any such statements to reflect events or circumstances after the date hereof.

Non-GAAP Measure
Adjusted EBITDA is a non-GAAP financial measure provided as a complement to results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted EBITDA is not a substitute for measures determined in accordance with GAAP, and may not be comparable to Adjusted EBITDA as reported by other companies. Our use of the term "Adjusted EBITDA" refers to a financial measure defined as earnings or loss before net interest, income taxes, depreciation, amortization, net loss attributable to non-controlling interest, and stock-based compensation. We believe Adjusted EBITDA to be relevant and useful information to our investors as this measure is an integral part of our internal management reporting and planning process and is the primary measure used by our management to evaluate operating performance. Following is the reconciliation of net loss, the most comparable GAAP measure, to Adjusted EBITDA, for each of the periods presented (in thousands, unaudited):




                            Market Leader, Inc.
               NON-GAAP FINANCIAL MEASURE AND RECONCILIATION
                               (In thousands)
                                (unaudited)

                               Three months ended      Twelve months ended
                                  December 31,            December 31,
                             ----------------------  ----------------------
                                2012        2011        2012        2011
                             ----------  ----------  ----------  ----------

Net loss available to
 shareholders                $   (1,173) $   (4,094) $   (7,784) $  (14,245)
Adjustments:
  Stock-based compensation          540         412       3,249       1,499
  Depreciation and
   amortization of property
   and equipment                    735         625       2,901       2,537
  Amortization of intangible
   assets                           811         890       3,319       1,788
  Loss on asset disposition           -           -           -         174
  Contract termination
   charge                             -       1,450           -       1,450
  Other expense (income)              -         (37)         22         (87)
  Net loss attributable to
   noncontrolling interest            -         (17)          -        (398)
                             ----------  ----------  ----------  ----------
Adjusted EBITDA              $      913  $     (771) $    1,707  $   (7,282)
                             ==========  ==========  ==========  ==========



                            Market Leader, Inc.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share data)
                                (unaudited)

                               Three months ended      Twelve months ended
                                  December 31,            December 31,
                             ----------------------  ----------------------
                                2012        2011        2012        2011
                             ----------  ----------  ----------  ----------

Revenues                     $   12,037  $    9,484  $   44,988  $   34,025
Expenses:
  Sales and marketing (1)         7,263       6,638      28,989      27,757
  Technology and product
   development (1)                2,347       2,272       9,713       8,209
  General and administrative
   (1)                            2,054       1,757       7,828       6,840
  Depreciation and
   amortization of property
   and equipment                    735         625       2,901       2,537
  Amortization of intangible
   assets                           811         890       3,319       1,788
  Loss on asset disposition           -           -           -         174
  Contract termination
   charge                             -       1,450           -       1,450
                             ----------  ----------  ----------  ----------
    Total expenses               13,210      13,632      52,750      48,755
                             ==========  ==========  ==========  ==========
  Loss from operations           (1,173)     (4,148)     (7,762)    (14,730)
  Interest income, net                8           1          32          60
                             ----------  ----------  ----------  ----------
Loss before income tax
 expense                         (1,165)     (4,147)     (7,730)    (14,670)
  Income tax expense
   (benefit)                          8         (36)         54         (27)
                             ----------  ----------  ----------  ----------
Net loss before
 noncontrolling interest         (1,173)     (4,111)     (7,784)    (14,643)
  Net loss attributable to
   noncontrolling interest            -         (17)          -        (398)
                             ----------  ----------  ----------  ----------
Net loss available to Market
 Leader                      $   (1,173) $   (4,094) $   (7,784) $  (14,245)
                             ==========  ==========  ==========  ==========

Net loss per share - basic
 and diluted                 $    (0.04) $    (0.16) $    (0.30) $    (0.56)
                             ==========  ==========  ==========  ==========

Number of shares used in per
 share calculations              26,487      25,380      25,944      25,222
                             ==========  ==========  ==========  ==========

(1) Stock-based compensation is included in the expense line items above in
 the following amounts:

                             ----------  ----------  ----------  ----------
                                 2012        2011        2012        2011
                             ----------  ----------  ----------  ----------

  Sales and marketing        $      172  $      209  $    1,639  $      680
  Technology and product
   development                       96          40         345         180
  General and administrative        272         163       1,265         639
                             ----------  ----------  ----------  ----------
                             $      540  $      412  $    3,249  $    1,499
                             ==========  ==========  ==========  ==========



                            Market Leader, Inc.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                     (In thousands, except share data)
                                (unaudited)
                                                 December 31,  December 31,
                                                 ------------  ------------
                                                     2012          2011
                                                 ------------  ------------
Assets
Current assets:
  Cash and cash equivalents                      $     11,165  $      7,958
  Short-term investments                               11,034        15,141
  Accounts receivable, net of allowance of $14
   and $36, respectively                                  854           729
  Prepaid expenses and other current assets               999         1,733
                                                 ------------  ------------
  Total current assets                                 24,052        25,561
Property and equipment, net of accumulated
 depreciation of $15,941 and $19,187,
 respectively                                           5,486         4,507
Intangible assets, net of accumulated
 amortization of $13,306 and $9,988,
 respectively                                           7,672        10,762
Goodwill                                                1,861         1,861
                                                 ------------  ------------
    Total assets                                 $     39,071  $     42,691
                                                 ============  ============

Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable                               $        978  $      1,120
  Accrued compensation and benefits                     3,194         2,599
  Accrued expenses and other current liabilities        1,195         2,224
  Deferred rent, current portion                          177           230
  Deferred revenue                                      1,126         1,056
                                                 ------------  ------------
    Total current liabilities                           6,670         7,229
Deferred rent, less current portion                         -           249
Other noncurrent liabilities                            1,100            95
                                                 ------------  ------------
    Total liabilities                                   7,770         7,573
Shareholders' equity:
  Preferred stock, par value $0.001 per share,
   stated at amounts paid in; authorized
   30,000,000 shares; none issued and
   outstanding
                                                            -             -
  Common stock, par value $0.001 per share,
   stated at amounts paid in; authorized
   120,000,000 shares; issued and outstanding
   26,634,447 and 25,397,448 shares at December
   31, 2012 and December 31, 2011, respectively

                                                       78,040        74,073
Accumulated deficit                                   (46,739)      (38,955)
                                                 ------------  ------------
    Total shareholders' equity                         31,301        35,118
                                                 ------------  ------------
      Total liabilities and shareholders' equity $     39,071  $     42,691
                                                 ============  ============



                            Market Leader, Inc.
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (unaudited)
                                                     Twelve months ended
                                                        December 31,
                                                 --------------------------
                                                     2012          2011
                                                 ------------  ------------

Cash flows from operating activities:
  Net loss                                       $     (7,784) $    (14,643)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
    Depreciation and amortization of property
     and equipment                                      2,901         2,537
    Amortization of intangible assets                   3,319         1,788
    Stock-based compensation                            3,249         1,499
    Loss on asset disposition                               -           174
    Changes in certain assets and liabilities,
     net of assets acquired and liabilities
     assumed
      Accounts receivable, net of allowance              (125)         (563)
      Prepaid expenses and other current assets           681          (106)
      Accounts payable                                    100          (378)
      Accrued compensation and benefits                   594           720
      Accrued expenses and other current
       liabilities                                     (1,023)          907
      Deferred rent                                      (302)         (262)
      Deferred revenue                                     70           539
                                                 ------------  ------------
        Net cash provided by (used in) operating
         activities                                     1,680        (7,788)
                                                 ------------  ------------

Cash flows from investing activities:
  Purchases of short-term investments                 (18,102)      (20,329)
  Sales of short-term investments                      21,958        33,647
  Purchases of property and equipment                  (3,900)       (2,857)
  Cash paid for acquisition of RealEstate.com               -        (8,250)
  Cash paid for acquisition of SharperAgent, net
   of cash acquired                                         -        (1,656)
  Cash paid for acquisition of kwkly                        -          (750)
                                                 ------------  ------------
        Net cash used in investing activities             (44)         (195)
                                                 ------------  ------------

Cash flows from financing activities:
  Value of equity awards withheld for tax
   liability and award exercises                         (554)         (260)
  Proceeds from exercises of stock options              2,125            20
  Acquisition of noncontrolling interest in
   ActiveRain                                               -          (446)
  Principal payment on note payable                         -           (60)
                                                 ------------  ------------
        Net cash provided by (used in) financing
         activities                                     1,571          (746)
                                                 ------------  ------------

        Net increase (decrease) in cash and cash
         equivalents                                    3,207        (8,729)

Cash and cash equivalents at beginning of period        7,958        16,687

                                                 ------------  ------------
Cash and cash equivalents at end of period       $     11,165  $      7,958
                                                 ============  ============

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.