HomeAway Incorporated has some good news for investors and fans as the company has just announced third quarter sales that topped analysts’ estimates as the company expanded to other countries and consumers used property rentals to make money, despite the current economic slump.
HomeAway’s revenue increased 37% to a total of $61.1 million, up from last year’s third quarter mark of $44.6 million. Analysts projected the company’s revenue to be $57.8 million according to a Bloomberg survey. HomeAway did report a net loss of $4.1 million after paying preferred stock dividends, however.
In addition to revenues, paid listings also increased by 22% to 626,528 from the previous year as owners of both homes and apartments relied on the internet to find renters. HomeAway helped here by selling shares to the public after six years as a private company.
According to Chief Executive Officer for HomeAway Incorporated Brian Sharples in a conference call with investors, “Our business continued to perform well in the third quarter despite the continued weakening of the European and U.S. economies. Property owners still desire to and frankly need to rent out their properties in difficult times.”
Stocks for HomeAway increased by $0.94 to a total of $37.32 and has jumped 38% since the company’s IPO on June 28. The company currently operates in over 145 countries and purchased Australian vacation rental site Realholidays.com.au back in April for a total of $2.1 million. In May the company also acquired Second Porch Incorporated for a total of $3 million, giving owners of vacation homes another way to market their properties on social networks.
HomeAway’s Australian business generates less revenue per listing and brings the company’s average revenue per listing to $335, down from the $339 per listing seen a year ago according to the Bloomberg survey. HomeAway forecasts revenue for the fourth quarter to be between $57.2 million and $57.7 million while analysts estimate sales of $57.8 million, according to the same survey.
Source: Business Week – HomeAway Reports Sales That Top Estimates as Listings Gain