Move Investor Presentation
Q2 2014
© 2014 Move, Inc. All rights reserved. Do not copy or distribute.
Disclaimer
This presentation contains "forward-looking" statements that involve risks, uncertainties and assumptions. If the risks or uncertainties
ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forwardlooking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to,
financial targets and goals; any projections of financial information; any statements about historical results that may suggest trends for
our business; any statements of the plans, strategies, and objectives of management for future operations; any statements of
expectation or belief regarding future events, potential markets, market size or market growth, future offerings, our ability to leverage our
investments, technology developments; and any statements of assumptions underlying any of the items mentioned.
These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of
future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not
limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending;
(iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new
applications and marketing initiatives by our competitors; (iv) our ability to manage our growth effectively; (v) our limited operating
history, which makes it difficult to predict future results; (vi) the development of the market for enterprise cloud services; (vii) acceptance
of our applications and services by customers; (viii) breaches in our security measures or unauthorized access to our customers' data;
and (ix) changes in sales may not be immediately reflected in our results due to our subscription model; as well as other risks that are
set forth in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange
Commission (“SEC”), as well as any subsequent reports filed with or furnished to the SEC. These reports are available on our website at
www.move.com and the SEC's website at www.sec.gov. We assume no obligation to, and do not currently intend to, update any such
forward-looking statements.
This presentation includes certain Non-GAAP financial measures. The most directly comparable GAAP information and a reconciliation
between the Non-GAAP figures are provided on slide 39.
2
Move Overview
Who We Are: Leading real estate information marketplace for consumers and real estate professionals
What We Deliver: Smarter consumer, smarter connection, quicker to close
2013 Results: Revenue: $227.0 million; Adjusted EBITDA*: $28.6 million
Employees: 913 (Dec. 31, 2013)
Headquarters: San Jose, CA
REALTORS =
ACCURATE AND
COMPREHENSIVE CONTENT
*See appendix for reconciliation of Non-GAAP Adjusted EBITDA to the most directly comparable measures.
LARGE AUDIENCE WITH
HIGHEST QUALITY LEADS
3
Move Brands
Consumer Advertising
Accurate and comprehensive
real estate data for consumers
Software and Services
Leading SaaS CRM platform
for real estate professionals
4
Investment Highlights
• Large and growing addressable market as real estate transactions
shift online
• Alignment with real estate industry provides unique competitive
advantages
• Accurate and comprehensive content creates superior consumer
experience
• Engaged, transaction-ready consumer audience produces high ROI
leads for real estate professionals
• Fast-growing SaaS and data analytics platform for the real estate
industry drives further ROI on leads
• Revenue growth eight consecutive quarters, steady cash flow and
industry leading margins
5
Large Addressable Market for Online Real Estate
5.1m homes x $245k = $1.25 trillion
5% commission = $62.5 billion
10-15% on marketing = $6-10 billion
Less than $1 billion currently
spent online
Sources: National Association of Realtors (2013); Borrell Associates (2010)
6
Massive Real Estate Value Chain
Annual Value ($138 Billion)
Rentals
Property commissions / marketing
$5 billion
$60 billion
Moving
$17 billion
Mortgage
Origination
$56 billion
Sources: National Association of Realtors (2011); Mortgage Bankers Association Origination Estimates (2009); American Housing
Survey For The US: 2007 (HUD and US Census); American Moving & Storage Association
7
Housing Market Stabilizing
For Sale Listings Inventory
Median Age of Inventory
Median List Price
(MM): US Total
(Days on market)
($000’s): US Total
$198
2.3
110
1.8
Inventory tight
$186
95
Velocity Improving
Prices up
Source: Move Internal Metrics, Single-Family Homes, Condos, Townhomes and Co-ops
8
Move Delivers Value to Entire Real Estate
Marketplace
Consumers
• Exceptional user experience
Real Estate Professionals
• More engaged, transaction-ready
consumers
• Accurate and timely listings
• Applications wherever and whenever
you want
• Comprehensive content to address
consumer needs throughout lifecycle
• High ROI from leads that are more likely
to transact
• Relationship management tools to convert
leads and manage customer lifecycle
• Content distribution and data analytics
tools to control and analyze marketing
efforts
9
Move’s Value Chain
From Content to Connection to Close
10
Realtor.com® Preferred by both Consumers and
Real Estate Professionals
Consumers
Real Estate Professionals
Net Promoter Score (1)(3)
Net Promoter Score(1)(2)
19
20
Comp X
Comp Y
-21
-21
17
4
Comp X
Comp Y
Source: Move Brand Tracker Study (Feb 2013 Consumer study N=943; June 2013 Real Estate Industry study N=805); ResearchNow/eRewards invite-only online panel
Notes:
1. Net promoter score range is -100 (everyone is a detractor) to +100 (everyone is a promoter), based on polling users of each service. Net Promoter Score equals % of promoters (rank services
as 9-10 out of 10) minus % of detractors (rank service as 0-6 out of 10)
2. Based on question: “How likely are you to recommend the following real estate sites to a friend or colleague?”
3. Based on question: “How likely are you to recommend each of these real estate marketing and technology tools, or apps?”
11
Our Industry Alignment Creates Unique Competitive
Advantage
Differentiated and unique access to data on realtor.com®
• Content supplied directly by over 800 Multiple Listing Services
Unique intelligence into online real estate ecosystem
• Realtors trust ListHub to distribute and monitor their listings
Supported by real estate community
• Shared brand with over 1 million Realtors
Realtors will remain critical partners to home buyers / sellers
• Overwhelming majority use a Realtor
12
Online Real Estate Market Leadership
Revenue Segments
Consumer
Advertising
Software &
Services
77%
23%
Q1 2014 reported revenue by category
13
®
Realtor.com Enables Local 1-on-1 Relationships
at National Scale
14
Most Transaction-Ready Consumers
50 Million + Consumers
Broad Consumer Audience
Serious Homebuyers
Purchase
5 Million Home Transactions =
10 Million Buyers and Sellers
15
Best Content and Industry Alliance
MLS
Syndicators
Agent
Website
Virtual
Tours
REALTOR
LISTING
MLS
(800)
Broker
Feeds
Franchisors
Offline
Media
Publisher
All Others
Direct From the Source
90% Updated Every 15 Minutes
Sales History
Sold/Pending Data in Real Time
Source: Move Internal Metrics Q1’14
Multiple Sources
Slow to Add
Slow to Remove
Duplications and Inaccuracies
16
Highest Quality Content
Q: On which website did you find your home?
%
31
Zillow.com
23
Redfin.com
13
Trulia.com
7
RealtyTrac.com
7
0
5
10
Source: California Association of REALTORS 2013 Survey of California Home Buyers
15
20
25
30
17
Most Engaged and Valuable Audience
32.8x
24.0x
30.7x
$2.94
23.9x
$2.48
19.6x
15.9x
realtor.com®
Revenue per UV*
Minutes per UV
Pageviews per UV
Zillow
Trulia
realtor.com®
Zillow
Trulia
$1.75
realtor.com®
Zillow
Trulia
Source: Unique Visitors, Page Views and Minutes based on comScore Multi-Platform report including PC and mobile for Q1 2014
*Represents Q1 2014 reported revenue results.
18
Highest Lead Volume
Q: What is your #1 source of lead volume?
%
9.8
Homes.com
1.4
Trulia.com
3.4
Zillow.com
Source: PAA Research
3.6
0
5
10
19
We Have the Best Data for Consumers
Data Accuracy
Integrated Maps
•
Move gets data directly from
over 800 MLSs
•
Best-of-breed search
experience
•
Zillow and Trulia missing 21%
and 19% of active listings,
respectively
•
Focus on local browsing and
content
•
Solutions integrate mobile and
online platforms
•
Move has nearly 100% of all
existing homes listed for sale
•
90% updated every 15
minutes, the rest daily
Source: WAV Group, October 2012, Move Internal Metrics Q1’14
Sales History
•
Enhances pricing
transparency
20
Mobile Technology Driving Consumer Engagement
Across Devices
 Mobile App users are 7-8x
more engaged than website
users
 Mobile listing detail page
views grew 12% year over
year in Q1 2014
 Accounts for over 55% of all
homes viewed
Source: Move Internal Metrics Q1’14
21
Consumer Advertising Products Monetization
Showcase Listings:
For selling agents
Enhanced home listings sold on a
subscription basis
Co-Broke Connection:
For buyers’ agents
Leads of potential home buyers
sold on subscription basis
•
Featured Products:
Featured Home carousel
placement and Agent/Broker
display ads priced on subscription
•
Display Ads:
General display ads sold on CPM
basis
•
Adjacencies:
Mortgage, rentals, moving, senior
housing
•
•
22
Online Real Estate Market Leadership
Revenue Segments
Consumer
Advertising
Software &
Services
77%
23%
Q1 2014 reported revenue by category
23
Software and Services Products Overview
Relationship Management
Content Distribution
and Data Analytics
[Screenshot]
CRM and marketing SaaS platform for Real Estate Professionals
24
TigerLead Helps Close Sales Quickly
TigerLead makes leads smarter by helping
real estate professionals understand the
DNA of consumers’ needs.
Views 152 Mt.
Pleasant St. for
the 3rd time
Live-in ready
basement
Returned to
search site four
times this week
3 to 4 bedrooms
$325,000 to
$400,000
25
Top Producer is a Lifetime Relationship Manager
26
ListHub Syndicates Listing Distribution and
Provides Insights from Data
Syndicated Listings to 120 Publishers
Cross-Network Broker and Agent Reporting
27
Growth Drivers
• Grow Consumer Audience
• Brand Marketing (“Accuracy Matters”)
• New Content and Features to continue to
lead engagement and connections
• Increase Productivity of Real • Integrated lead, listing, relationship
management hub
Estate Professional
• Leverage data; provide unparalleled
insights
• Expand Into Adjacent
Opportunities
• Beyond the buyer and seller: Rentals,
senior housing, moving, lending, media
• Improving Housing Market
• More listings, higher median price spurs
growth in total transaction $s
• More NAR members = more subscribers
• Investment strategy
• Platform, data, audience
• Strategic and disciplined acquisitions
28
Financial Overview
Rachel Glaser, CFO
© 2014 Move, Inc. All rights reserved. Do not copy or distribute.
Accelerating Annual Growth Rate
Revenue
($M)
Revenue
Adj. EBITDA
($M)
Adjusted EBITDA
$50
+13%
$260
$45
$240
+14%
$40
$220
+4%
$35
$200
$30
$180
$25
$160
$140
$20
$120
$15
$100
$10
2012
Adjusted
EBITDA Margin*
13.5%
2013
12.6%
2014 (E)
12%
*See appendix for reconciliation of Non-GAAP Adjusted EBITDA to the most directly comparable measures. Percentages above revenue
bars represent year-over-year growth rate.
30
Total Revenue
Annual Revenue & YoY Growth
$256
($M)
Quarterly Revenue & YoY Growth
($M)
$61.75
$227
$199
$57.5
2012
YoY Growth
2013
2014 (E)
+14%
+13%
2014 Estimates based on mid-point of guidance
Q2 2013
Q2 2014 (E)
+7%
31
Revenue by Segment
Annual Revenue & YoY Growth
Quarterly Revenue & YoY Growth
($M)
($M)
$48
$45
$197
$176
$162
$51
$14
$13
$59
$37
2012
2013
2014 (E)
YoY Growth
Q2 2013
Q2 2014 (E)
YoY Growth
Consumer
Advertising
+9%
+12%
Consumer
Advertising
+7%
Software &
Services
+37%
+15%
Software &
Services
+8%
Consumer Advertising
2014 Estimates based on mid-point of guidance
Software & Services
32
Successful Record of M&A
ListHub Publisher Growth
TigerLead Rev Growth
Since September 2010
Since September 2012
Moving.com +
Relocation.com*
October 2012
All Other
MovingGuru
10%
6%
27%
Moving.com
12%
Movers.com
Q4'12
ListHub publishers up over 90%
since Sept 2010 acquisition
Q1'13
Q2'13
Q3'13
Q4'13
27%
123Movers.com
Relocation.com
Q1'14
TigerLead Revenue up over 18%
Y/Y in Q1 2014
*Moving Category estimated percent of total lead aggregator revenue generated annually.
18%
With the Oct 2012 Relocation.com
acquisition, Move now owns 54% of
the moving lead aggregator
marketplace
33
Strong Balance Sheet
As of Mar 31, 2014
Assets
Cash & Equivalents
Liabilities
$ 115.7
Deferred Revenue
$ 7.6
Other Current Assets
20.8
Other Current Liabilities
33.0
Property and Equipment, Net
26.6
Non-current Liabilities
5.2
4.6
Convertible Debt(1)
83.3
68.2
Stockholder’s Equity
106.8
$ 235.9
Total Liabilities and
Stockholder’s Equity
$ 235.9
Investment in Unconsolidated JV
Other Long Term Assets
Total Assets
$100M Convertible Debt Secured Aug 2013. Approximately $83M on Balance Sheet with remaining $17M included in additional
Paid-in-Capital.
(1)
34
Investment Highlights
• Large and growing addressable market as real estate transactions
shift online
• Alignment with real estate industry provides unique competitive
advantages
• Accurate and comprehensive content creates superior consumer
experience
• Engaged, transaction-ready consumer audience produces high ROI
leads for real estate professionals
• Fast-growing SaaS and data analytics platform for the real estate
industry
• Revenue growth eight consecutive quarters, steady cash flow and
industry leading margins
35
Appendix
© 2014 Move, Inc. All rights reserved. Do not copy or distribute.
GAAP to Non-GAAP Reconciliations
$ in Thousands
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
FY'11
FY'12
$808
$1,444
$1,785
$1,588
($100)
$466
$138
Interest expense / (income)
(1)
-
1
6
14
13
Income tax (benefit) / expense
25
47
103
222
(15)
Stock-based compensation and charges
1,463
2,397
1,996
2,416
Depreciation
2,524
2,389
2,282
-
-
594
$5,413
FY'13
$70
($5,182)
$7,260
$5,625
$574
917
1,615
1,567
(51)
6
2,559
65
375
(526)
506
273
397
(101)
2,623
2,876
2,742
2,447
3,726
5,907
8,272
10,688
2,356
2,399
2,519
2,762
2,825
3,044
9,393
9,551
10,505
-
-
-
-
-
-
-
619
-
-
595
697
1,178
999
1,063
1,110
1,249
1,297
2,294
3,064
4,421
$6,872
$6,864
$7,766
$5,920
$7,002
$8,044
$7,680
$4,958
$25,695
$26,915
$28,646
Reconciliation of Adjusted EBITDA
Net income (GAAP)
Plus:
Termination costs from dissolution of JV
Amort. of intangibles, incl. unconsolidated JV
Adjusted EBITDA (Non-GAAP)
Note:
In this presentation we sometimes refer to Non-GAAP measures that we and securities analysts use in measuring our performance. We believe that these
measures assist investors and management in analyzing trends in the Company’s business. Investors should not consider these Non-GAAP measures as
substitutes, but rather as additions, to financial reporting measures prepared in accordance with GAAP. It should be noted that these measures, as
defined, may not be comparable to similarly titled measures used by other companies. Figures may not sum due to rounding.
37