Welcome!

Agile Computing Authors: Kevin Benedict, Harry Trott, Pat Romanski, Mamoon Yunus, Liz McMillan

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
                                                 ============  ============

Investor Contact:
Mark Lamb
Director of Investor Relations
Market Leader, Inc.
425.952.5801
[email protected]

Investor Relations Firm:
PondelWilkinson Inc.
Roger Pondel/Laurie Berman
310.279.5980
[email protected]

Press Contact:
Matt Heinz
Heinz Marketing for Market Leader, Inc.
877.291.0006
[email protected]

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
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. 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 devic...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).