Move Investor Presentation - PDF Free Download

Safe Harbor Statements made in this presentation or orally accompanying its delivery (whether in narrative, bullet, numerical, graphical or other form, and whether or not accompanied by linguistic cues such as believe, will, might, intend, expect, plan, anticipate, project, target, outlook or the like) that are not historical fact are forward-looking statements within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Such statements may include, among others, remarks about management s views of Move s expectations, plans or prospects, or about Move products, sales, earnings, expenditures, debt, assets, cash flow, technology, operations, business strategies or initiatives. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Move (including its subsidiaries, divisions and affiliates) to be materially different than those expressed or implied in, or inferred from, such statements, or that could cause other forward-looking statements to prove incorrect. These factors include the condition of the real estate, mortgage and financial markets, sales that decrease, fail to grow or remain flat, failures or delays in Move s ability to innovate or deliver new products, product launches that do not gain sufficient acceptance by our customers and other risk factors included from time to time in documents Move files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move s future results. The forward-looking statements made in this presentation are made only as of the date hereof, and those made orally, accompanying delivery of the presentation, are made only as of the date such statements are spoken. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue or uncorroborated reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances. We will be discussing non-gaap financial measures in talking about the Company s performance. Reconciliations of those measures to GAAP measures can be found on the Company s Investor Relations website. 2

Investment Thesis: Our business, and this industry, are at an inflection point 1. Economy is recovering and it favors Move 2. Untapped addressable market is huge 3. Real Estate finally shifting dollars from offline to online 4. Mobile is fueling and accelerating growth 5. Best content; a Competitive Advantage 6. Most valuable consumer audience and a plan for growth 7. Customer Focus with a product portfolio that spans the full value chain 8. Attractive Financials and future growth 3

Economy is Recovering For Sale Listings Inventory (000's): US Total Median List Price ($ 000's): US Total Median Age of Inventory (days) 2.3 $190 111 78 1.5 $180 Source: Move Internal Metrics, Single-Family Homes, Condos, Townhomes and Co-ops. 4

List Prices: 2013 vs. 2012 Price decrease 0 15% increase > 15% increase Source: Realtor.com Jan 2013 vs. Jan 2012 5

2. Huge Addressable Market Annual Value ($128 Billion) Rentals $5 billion Moving $17 billion Property commissions / marketing $50 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 6

Audience Size - Opportunity Owner 76 million Buyer 10 15 million Lending 5+ million Seller 5 million Movers 10 15 million Renter 25 million 7

3. Shift from print to online 46.6 Print/online ad spend Real Estate print/online ad spend 12.6 31.7 +88% 7.6 8.0 16.9 20.7-56% 3.9 2006 2007 2008 2009 2010 2011 2009 2010 2011 2012(P) 2013(F) Newspaper (Print) spend ($B) Internet ad spend ($B) Newspapers ($B) Online ($B) Internet Advertising includes online newspaper advertising. Source: Print newspaper ad spending per Newspaper Association of America (NAA); Internet ad spending per Interactive Advertising Bureau (IAB) Real Estate ad spend from Borrell & Associates 2012 8

Mobile is Fueling and Accelerating Growth realtor.com: Mobile app is now 50% of all Listing Page Views realtor.com: Mobile app users 7x as engaged* Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 "WWW" "Mobile App" Source: Move Internal Metrics. www.realtor.com and all realtor.com mobile apps WWW Mobile *Measured by Listing Page Views per UU from Mobile users as compared to Web users 9

5. Best Content: A Competitive Advantage REALTOR LISTING MLS (800) MARKETING $ 10

Third-Party Study: Listing Accuracy Zillow and Trulia missing 21% and 19% of active listings, respectively Broker sites get new listings 7 to 9 days sooner than Zillow / Trulia About 36% of for sale listings on portal sites are actually sold WAV Group, October 2012 11

Accuracy Matters X X 12

What about realtor.com? Since realtor.com has the direct connections to over 800 MLSs, updates most of their data within a 15 minute or less timeframe, and does not include listings from sources known for poor data hygiene, it is nearly impossible for anyone else to beat them on a national level Victor Lund, CEO WAV Group 13

SYNDICATORS MLS AGENT WEBSITE PUBLISHER VIRTUAL TOURS BROKER FEEDS FRANCHISORS OFFLINE MEDIA 14

Listhub: Helps Brokers Manage Their Data 15

Best Content; A Competitive Advantage $725m 1999-2013* Data/Infrastructure Development 14+ years investment in platform and data rights infrastructure Over 800 data feeds from 800+ MLSs, 85% updated every 15 minutes 25% 30% 26% 19% Operations Back Office Source: Move Internal Financial Estimates of Technology-related spend over 14-year period. Includes depreciation; excludes capex. 16

6. Most valuable Consumer Audience and a Plan for Growth I. Grow audience Brand Marketing and PR Content Off-market content Timelines Vitality New homes Increase editorial and user-generated content 17

The Consumer Brand Realtor.com mdot Mobile App Realtor.com International 18

Realtor.com Brand Attributes Aligned with Realtors REALTOR Human Personal Supportive Accurate Credible Relevant Up-to-date Human Personal Supportive Accurate Credible Relevant Up-to-date 19

Realtor.com Meets Top Consumer Needs Top Consumer Needs: Fresh up-to-date data 74% Comprehensive & accurate data 73% Ease of use 59% High quality photos & videos of properties 58% Precise search and filtering 54% Q: How important are the following attributes for choosing the Internet Real Estate Service you use most often? Source: Realtor.com Brand Tracking Executive Overview Wave 1 Final Report Feb 2013 20

Realtor.com brand promoted by 1.0m Realtors 21

The Consumer Brand Marketing Campaign March 2013 FIND IT FIRST Goal: Emotionally bring the new positioning and tagline to life while driving traffic to our site and mobile solutions 22

Most valuable Consumer Audience and a Plan for Growth I. Grow audience II. Build best-of-breed experiences Focus on personalization, collaboration Improve search experience Improve map search Focus on local browsing and content Sketch a search 23

Improving Accuracy: Pending and Off Market Data Pending / Off-Market 24

Doorsteps - Acquired May 2013 Collaboration between Consumer and Professionals 25

Most valuable Consumer Audience and a Plan for Growth I. Grow audience II. Build best-of-breed experiences III. Deliver offerings that perform as audience grows Continue to drive performance Drive attribution Report value Sellers / Listing agent products Area experts branding Connection SM for Co-Brokerage 26

Most valuable Consumer Audience and a Plan for Growth I. Grow audience II. Build best-of-breed experiences III. Deliver offerings that perform as audience grows IV. Grow the opportunities Rentals Senior Housing Moving Lending Media 27

Commercial Listings on Realtor.com NEW! Commercial Search 650k listings vs. LoopNet 500k REALTOR Benefits partner Live in Q3 28

School Search Launched April 2013 30

Realtor.com brand Mobile Experience for Rentals NEW! 31

7. Customer Focus with a Product Portfolio Spans the Full Value Chain Content Consumer Ad Products Technology (IDX, Websites) Productivity Tools Consumer Advertising Software and Services Rentals 32

2013 Customer Focus I. ListHub Create a great data engine Increase coverage MLSs Hire and grow Provide insight from data 33

2013 Customer Focus I. ListHub II. Top Producer Keep focusing on mobile Grow subscribers Simplify Expand product offering 34

2013 Customer Focus I. ListHub II. Top Producer III. TigerLead Go mobile Leverage Move sales and support Integrate realtor.com lead volume to create inventory Leverage technology on realtor.com 35

A Virtuous Ecosystem Connection Lead Cultivation Content and Engagement HUB Agent and Broker Collaboration Consumer Visitation Data, Reporting, Insights Realtor.com / B-to-C: Leads Branding Reports / Insights SaaS / B-to-B: Free Tools Software Data / Reporting 36

Agents and Brokers Metrics that Matter #1 Total Real Estate Professionals Licensed Real Estate Agents realtor.com: Broker Direct (other agents) 120k Agent Counts (Mar 2013) Software & Services 47k realtor.com: Agent Direct 37k Commission Producing Agents Agents responsible for 90% of Transactions 0 500 1,000 1,500 2,000 Non-Customers Move Customers* realtor.com: Broker Direct (commission producing agents) 220k Source: Move Internal Metrics *Represents all Agents purchasing product from Move, whether direct or thru their Broker or Franchise 37

5-8x ROI Listing Price High Mid Low Leads per Year 120 120 120 Conversion to Transaction 2% 2% 2% Average Home Price $750,000 $500,000 $250,000 Commission Rate (1-side) 2% 2% 2% Commission Income $36,000 $24,000 $12,000 Annual Cost $4,000 $3,000 $2,000 ROI 8.0x 7.0x 5.0x Source: Move Internal Metrics 38

Attractive Financials: Revenue & Margins growing Y/Y $58 $55 $53 Q2 2013* $56.3 $10.0 $9.0 $225 $215 FY 2013* $225 $40 $38 $35 $50 $48 $45 $43 $48.9 $49.3 $8.0 $7.0 $6.0 $205 $195 $185 $192 $199 $33 $30 $28 $25 $40 $5.0 $175 Q2'11 Q2'12 Q2'13 (E) * ($ 000 s) ($ 000 s) 2011 2012 2013(E) * $23 Revenue Adjusted EBITDA 1 Revenue Adjusted EBITDA 1 1 Adjusted EBITDA is earnings from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation and related charges, and other non-recurring charges *Q2 13 (E) and 2013 (E) based on mid-point of guidance 39

Six Sequential Quarters of Revenue Growth 1 Excludes all stock-based and non-recurring charges 2 Adjusted EBITDA is earnings from continuing operations before interest, taxes, stock-based compensation and related charges, depreciation, amortization and other non-recurring charges *Q2 13 based on mid-point of guidance 40

Strong Balance Sheet As of March 31, 2013 ($ in millions) 41

Pro Forma EPS Adj. EBITDA Multiple Adj. EBITDA Rev Multiple Revenue Market Cap Financials & Key Comparison Metrics Move Zillow* Trulia LEDR Move Zillow* Trulia LEDR $200 $100 $1,500 $750 $0 $225.5 $182.3 $111.0 $57.8 $0 $416 $1,840 $890 $291 $30 10.0 $15 5.0 $0 $31.4 $5.5 $12.6 $6.1 0.0 1.8x 10.1x 8.0x 5.0x $0.40 $0.20 $0.00 300.0 150.0 -$0.20 $0.49 ($0.02) $0.16 ($0.16) 0.0 13.3x 333.7x 70.5x 47.7x Source: 2013 Analyst Consensus Estimates, Pageviews from comscore Mar 2013, Market Cap and Rev/Adj. EBITDA multiples as of 5/10/13 *Adj. EBITDA adjusted to normalize for capitalized website development expenses 42

Listings/Revenue 8,000 7,000 6,000 7.2M 7.5M 6.6M $66 $62 6.3M 6.2M $70.00 $60.00 $50.00 5,000 4,000 3,000 3.5M 3.6M $26 $28 $40.00 $30.00 2,000 3.0M 2.6M 2.6M $20.00 1,000 $10.00-2009 2010 2011 2012 2013 E $0.00 Historical Listing Count Active Listings Revenue per Historical Listing Revenue per Active Listing Source: Move Internal Metrics. 43

Goal: $100 per listing Growth will come from: Mobile leads directly monetized on performance products Extending content and monetization to adjacent consumer segments Leadership in consumer engagement Virtuous ecosystem between Consumer and Software & Services businesses ListHub Increasing growth in impressions drives CPM media revenue Housing market improvement will increase listing count 44