Welcome!

@CloudExpo Authors: Yeshim Deniz, Elizabeth White, Pat Romanski, Liz McMillan, Maria C. Horton

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.

@CloudExpo Stories
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
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...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present several current, end-user environments that are using object storage at scale for cloud deployments including private cloud and cloud providers. Details on the top considerations of features and functions for selecting object storage will be included. Brad will also touch on recent developments in tiering technologies that deliver single solution and an end-user view of data across files and objects...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, discussed how AI can simplify cloud operations. He covered the following topics: why cloud mana...
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching o...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!