Bloomberg News

HomeAway Reports Sales That Top Estimates as Listings Gain

October 27, 2011

(Updates with forecasts in final paragraph.)

Oct. 27 (Bloomberg) -- HomeAway Inc., the online vacation- rental service, reported third-quarter sales that topped analysts’ estimates as it expanded abroad and consumers used property rentals to make money amid economic weakness.

Revenue rose 37 percent to $61.1 million, from $44.6 million a year earlier, the Austin, Texas-based company said today in a statement. Analysts had projected revenue of $57.8 million according to a Bloomberg survey. The company reported a net loss of $4.1 million after paying preferred stock dividends.

Paid listings increased 22 percent to 626,528 from a year earlier as owners of homes and apartments took to the Web to find renters. HomeAway, which operates sites including HomeAway.com, VRBO.com and vacationrentals.com, first sold shares to the public in June after six years as a private company.

“Our business continued to perform well in the third quarter despite the continued weakening of the European and U.S. economies,” Chief Executive Officer Brian Sharples said on a conference call with investors. “Property owners still desire to and frankly need to rent out their properties in difficult times.”

HomeAway rose 94 cents to $37.32 at 4 p.m. New York time. It has jumped 38 percent since the company’s IPO on June 28.

HomeAway operates in more than 145 countries. In April, the company bought Australian vacation rental site Realholidays.com.au for $2.1 million. The following month, HomeAway acquired Second Porch Inc. for $3 million, giving owners of vacation homes a way to market their properties on social networks.

The Australian business generates less revenue per listing, bringing the company’s average revenue per listing to $335 from $339 a year earlier, HomeAway said.

HomeAway forecast revenue for the fourth quarter of $57.2 million to $57.7 million. Analysts estimated sales of $57.8 million, according to a Bloomberg survey.

The company may see “pockets” of weakness next year, Sharples said on the conference call.

--Editors: Tom Giles, Marcus Chan

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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