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Move, Inc. Reports Fourth Quarter 2013 Financial Results:

Companies mentioned in this article: Move, Inc.

SAN JOSE, Calif., Feb. 13, 2014 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the leader in online real estate, today reported financial results for the fourth quarter ended December 31, 2013.

Fourth Quarter 2013 Highlights

    --  Q4 Revenue increased 7% year-over-year to $56.5 million
    --  Consumer Advertising revenue increased 6% year-over-year to $43.5
        million
    --  Software and Services revenue increased 12% year-over-year to $12.9
        million
    --  Non-GAAP Adjusted EBITDA was $7.7 million
    --  Average monthly unique users of Move's web and mobile sites grew 13%
        year-over-year to 23.9 million in the fourth quarter

"Our achievements in 2013, including technology integrations, new content offerings and strategic acquisitions, have laid the foundation to make 2014 what we believe will be a groundbreaking year--for delivering outstanding performance and reaching new heights of innovation for our industry clients, buyers and sellers," said Steve Berkowitz, CEO of Move. "Leveraging our comprehensive consumer experience, deep industry ties and unparalleled quality of data content enables us to provide the most superior and trustworthy customer experience for REALTORS(®) and consumers alike."

Fourth Quarter 2013 Financial Results
Revenue for the quarter was $56.5 million, an increase of $3.7 million, or 7%, from $52.7 million in the fourth quarter of 2012. Revenue from Consumer Advertising products increased 6% to $43.5 million in the fourth quarter of 2013 compared to the same period in 2012. Revenue from Software and Services products increased 12% to $12.9 million compared to the fourth quarter of 2012.

Non-GAAP Adjusted EBITDA ("Adjusted EBITDA") was $7.7 million in the fourth quarter of 2013 compared to $7.8 million in the fourth quarter of 2012. As a percentage of revenue, Adjusted EBITDA was 14% in the fourth quarter of 2013. Non-GAAP Earnings Per Share was $0.11 per diluted share in the fourth quarter of 2013 compared to $0.13 per diluted share in the fourth quarter of 2012. Move has reported Adjusted EBITDA and Non-GAAP Earnings Per Share because management uses it to monitor and assess the Company's performance and believes it is helpful to investors in understanding the Company's business.

Cash provided by operating activities was $11.9 million and $10.3 million for the quarters ended December 31, 2013 and 2012, respectively.

Operating and Business Results

    --  Move started 2014 ringing the opening bell at NASDAQ after an exciting
        fourth quarter where it:
        --  Acquired FiveStreet, Inc., which provides a lead consolidation and
            response tool for agents, agent-teams and brokerages;
        --  Expanded its longstanding business relationship with Bankrate with a
            multi-year extension of their alliance and expansion of mortgage
            content across Move brands;
        --  Grew its technology efficiencies and outputs, as well as increased
            its media share of voice by over 10 times (as compared with last
            year); and
        --  Provided REALTORS(®) with webinars focused on optimizing and
            growing their businesses with Move solutions.
    --  In the fourth quarter of 2013, realtor.com(®) made great strides in for
        its brand, customers and consumers as it expanded content, as well as
        new features, on its website and mobile apps. Among its accomplishments,
        realtor.com(®):
        --  Enhanced its rentals app to offer location-based listing
            notifications and iOS 7 AirDrop sharing;
        --  Significantly grew the number of new homes and rentals listings
            available on realtor.com(®);
        --  Became an official and category exclusive sponsor of the San Jose
            Sharks for the 2013-14 NHL season;
        --  Expanded REALTOR(®) profiles through SocialBios(TM), the profile
            management platform that connects agents with consumers; and
        --  Realtor.com(®) international was honored with a Global Achievement
            Award from the National Association of REALTORS(®).
    --  In the last quarter of 2013, ListHub(TM) expanded its reach to Houston
        Association of REALTORS(®) and now provides services to their 26,000
        members; and
    --  Move grew average monthly unique users 13% year-over-year during the
        fourth quarter of 2013, to 23.9 million, up from 21.2 million in the
        fourth quarter of 2012.

Business Outlook
For the quarter ending March 31, 2014, Move expects revenue of approximately $58 million and expects to report Adjusted EBITDA of approximately $5 million.

For the year ending December 31, 2014, Move expects revenue of $254-$258 million and expects to report Adjusted EBITDA of approximately $30 million.

Conference Call
As previously announced, Move will host a conference call, which will be broadcast live over the Internet today, Thursday, February 13, 2014 at 1:30 p.m. Pacific Standard Time (4:30 p.m. Eastern Standard Time). To access the call, please dial (877) 870-4263, or outside the U.S. (412) 317-0790, five minutes prior to 1:30 p.m. Pacific Standard Time. A live webcast of the call will also be available at http://investor.move.com under the Events & Presentations menu.

An audio replay will be available between 2:30 p.m. Pacific Standard Time February 13, 2014 and 6:00 a.m. Pacific Standard Time February 21, 2014, by calling (877) 344-7529 or (412) 317-0088, with Conference ID 10039382. An audio archive of the call will also be available at http://investor.move.com.

Use of Non-GAAP Financial Measures--Adjusted EBITDA and Non-GAAP Earnings Per Share
To supplement its consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Move uses a non-GAAP measure of net income excluding net interest expense, income tax expense and certain other noncash and nonrecurring items, principally depreciation, amortization and stock-based compensation and charges, which is referred to as Adjusted EBITDA. Move also uses a non-GAAP measure of net income applicable to common shareholders excluding convertible preferred stock dividends and related accretion, stock-based compensation and charges, amortization of intangible assets, and amortization of debt discount and issuance costs, on a per share basis, which is referred to as Non-GAAP Earnings Per Share. Additionally, the Company has presented a non-GAAP table of Financial Data for the three- and twelve-month periods ended December 31, 2013 and 2012 that extracts stock-based compensation and charges. A reconciliation of these non-GAAP measures to GAAP is provided in the attached tables. These non-GAAP adjustments are provided to enhance the user's overall understanding of Move's current financial performance and its prospects for the future and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP measures are the primary basis management uses for planning and forecasting its future operations. Move believes these non-GAAP results provide useful information to both management and investors by excluding certain expenses that it believes are not indicative of its core operating results and provide a more consistent basis for comparison between quarters and should be carefully evaluated. Move, Inc. has reported Adjusted EBITDA and Non-GAAP Earnings Per Share because management uses it to monitor and assess the Company's performance and believes it is helpful to investors in understanding the Company's business.

Unique Users
Move calculates total average monthly unique users across its network of websites and mobile apps as follows: We count a unique user the first time an individual accesses one of our mobile applications using a mobile device during a calendar month and the first time an individual accesses one of our websites using a web browser during a calendar month. If an individual accesses our mobile applications using different mobile devices within a given calendar month, the first instance of access by each such mobile device is counted as a separate unique user. If an individual accesses our websites using different web browsers within a calendar month, the first instance of access by each such web browser is counted as a separate unique user. If an individual accesses more than one of our websites from the same web browser in a calendar month, the first instance of access to each website is counted as a separate unique user. We measure unique users to our mobile apps using Omniture. We primarily measure unique users to our network of websites using Omniture. We use Google Analytics to measure unique users to certain websites that amount to less than 5% of our total unique user metric. Prior to the first quarter of 2013, we reported unique users using comScore measurements, rather than internal calculations.

Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of Move's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are 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 included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue 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.

ABOUT MOVE, INC.
Move, Inc. (NASDAQ: MOVE), the leader in online real estate, operates: realtor.com(®), the official website of the National Association of REALTORS(®); Move.com, a leading destination for new homes and rental listings, moving, home and garden, and home finance; ListHub(TM), the leading syndicator of real estate listings; Moving.com(TM); SeniorHousingNet(TM); SocialBios(TM); Doorsteps(®); TigerLead(®); Top Producer(®) Systems and FiveStreet(TM). Move, Inc. is based in San Jose, California.



                                                                MOVE, INC.

                                                  CONSOLIDATED STATEMENTS OF OPERATIONS

                                                 (in thousands, except per share amounts)



                                                                     Three Months Ended December          Twelve Months Ended December
                                                                                  31,                                    31,
                                                                    ----------------------------          -----------------------------

                                                                    2013                    2012           2013                    2012
                                                                    ----                    ----           ----                    ----

                                                                               (unaudited)


    Revenue                                                                    $56,480           $52,737             $227,033           $199,233


    Costs and operating
     expenses:

       Cost of
        revenue(1)(2)                                                           11,465            10,432               45,868             37,421

    Sales and
     marketing(1)(2)                                                            22,393            19,564               90,012             75,089

    Product and web site
     development(1)                                                              9,566             9,738               38,889             37,341

    General and
     administrative(1)                                                          11,550            10,846               47,282             42,360

    Amortization of
     intangible assets                                                           1,249               981                4,421              2,275

    Total costs and
     operating expenses                                                         56,223            51,561              226,472            194,486
                                                                                ------            ------              -------            -------

    Operating income                                                               257             1,176                  561              4,747


    Interest expense,
     net                                                                        (1,615)               (6)              (2,559)                (6)

    Earnings of
     unconsolidated
     joint venture                                                                 705               482                2,355              1,192

    Other income, net                                                              197               158                  116                 89
                                                                                   ---               ---                  ---                ---

    (Loss) income before
     income taxes                                                                 (456)            1,810                  473              6,022


    Income tax (benefit)
     expense                                                                      (526)              222                 (101)               397
                                                                                  ----               ---                 ----                ---


    Net income                                                                      70             1,588                  574              5,625


    Convertible
     preferred stock
     dividend and
     related accretion                                                 -                       -              -                   (942)

    Net income
     applicable to
     common
     stockholders                                                                  $70            $1,588                 $574             $4,683




    Basic net
     income per
     share
     applicable to
     common
     stockholders                                                                $0.00             $0.04                $0.01              $0.12



    Diluted net
     income per
     share
     applicable to
     common
     stockholders                                                                $0.00             $0.04                $0.01              $0.12



    Shares used to
     calculate net
     income per share
     applicable to
     common
     stockholders:

    Basic                                                                       38,714            38,834               39,089             38,705
                                                                                ======            ======               ======             ======


    Diluted                                                                     41,741            39,800               41,236             39,721
                                                                                ======            ======               ======             ======


    (1) Includes stock-based compensation and charges as follows:


         Cost of revenue                                                           $79               $75                 $340               $268

         Sales and marketing                                                       633               408                2,379              1,962

         Product and web site
          development                                                              669               526                2,719              1,938

         General and
          administrative                                                         1,066             1,407                5,250              4,104
                                                                                 -----             -----                -----              -----

                                                                                $2,447            $2,416              $10,688             $8,272

    (2)  Effective October 1,
     2013, the Company elected
     to change the presentation
     of certain lead
     acquisition costs and to
     reclassify these costs
     from "Cost of revenue" to
     "Sales and marketing"
     within its Consolidated
     Statements of Operations
     in order to be more
     consistent with certain of
     its peers and to combine
     all traffic acquisition
     costs that are not
     considered directly
     related to the fulfillment
     of products into "Sales
     and marketing."  This had
     the effect of decreasing
     "Cost of revenue" and
     increasing "Sales and
     marketing" expense by $4.0
     million, or 2% of revenue,
     for the year ended
     December 31, 2012.  For
     the quarter ended December
     31, 2012, the amount
     reclassified was $1.5
     million, or 3% of revenue.


                             MOVE, INC.

                     CONSOLIDATED BALANCE SHEETS

                           (in thousands)



                                                    December 31,
                                                    ------------

                                                       2013              2012
                                                       ----              ----


    ASSETS

    Current assets:

    Cash and cash equivalents                      $118,679           $27,122

    Accounts receivable, net                         11,760            11,759

    Other current assets                              8,203             7,215

    Total current assets                            138,642            46,096


    Property and equipment, net                      23,960            21,975

    Investment in unconsolidated joint
     venture                                          4,596             4,924

    Goodwill, net                                    41,630            38,560

    Intangible assets, net                           24,403            24,444

    Other assets                                      3,558               870
                                                      -----               ---

    Total assets                                   $236,789          $136,869



    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

    Accounts payable                                 $5,912            $4,741

    Accrued expenses                                 26,929            20,512

    Deferred revenue                                  7,783             8,520

    Total current liabilities                        40,624            33,773


    Convertible senior notes                         82,459                 -

    Other noncurrent liabilities                      4,876             5,086

    Total liabilities                               127,959            38,859


    Stockholders' equity:

    Series A convertible preferred stock    -                    -

    Common stock                                         39                39

    Additional paid-in capital                    2,142,516         2,132,189

    Accumulated other comprehensive income              138               219

    Accumulated deficit                          (2,033,863)       (2,034,437)
                                                  ---------         ---------

    Total stockholders' equity                      108,830            98,010
                                                    -------            ------

    Total liabilities and stockholders'
     equity                                        $236,789          $136,869


                             MOVE, INC.

                CONSOLIDATED STATEMENTS OF CASH FLOWS

                           (in thousands)



                                      Twelve Months Ended December
                                                     31,
                                       -----------------------------

                                     2013                       2012
                                     ----                       ----


    Cash flows from operating
     activities:

    Net income                                     $574                $5,625

    Adjustments to reconcile net
     income to net cash provided by
     operating activities:

    Depreciation and amortization of
     property and equipment                      10,505                 9,551

    Amortization of intangible assets             4,421                 2,275

    Amortization of debt discount and
     issuance costs                               1,491                     -

    Provision for doubtful accounts                 619                   528

    Stock-based compensation and
     charges                                     10,688                 8,272

    Loss on sales and disposals of
     assets                             -                         61

    Earnings of unconsolidated joint
     venture                                     (2,355)               (1,192)

    Return on investment in
     unconsolidated joint venture                 2,102                 1,192

    Other noncash items                              21                   (74)

    Changes in operating assets and
     liabilities:

    Accounts receivable                            (606)                 (422)

    Other assets                                   (833)                 (328)

    Accounts payable and accrued
     expenses                                     6,669                 5,047

    Deferred revenue                               (614)               (1,435)
                                                   ----                ------

    Net cash provided by operating
     activities                                  32,682                29,100
                                                 ------                ------


    Cash flows from investing
     activities:

    Purchases of property and
     equipment                                  (12,586)              (11,025)

    Acquisitions, net of cash acquired           (5,930)              (31,725)

    Return of investment in
     unconsolidated joint venture                   582                   787

    Other investing activities                     (250)                    9

    Net cash used in investing
     activities                                 (18,184)              (41,954)
                                                -------               -------


    Cash flows from financing
     activities:

    Principal payments on loan payable           (1,019)                 (111)

    Proceeds from borrowings on
     convertible senior notes, net of
     issuance costs                              96,606                     -

    Redemption of convertible
     preferred stock                    -                   (49,044)

    Payment of dividends on
     convertible preferred stock        -                       (882)

    Proceeds from exercise of stock
     options                                     10,056                 3,108

    Tax payments related to net share
     settlements of equity awards                (2,574)                 (605)

    Repurchases of common stock                 (26,010)                  (69)

    Net cash provided by (used in)
     financing activities                        77,059               (47,603)
                                                 ------               -------


    Change in cash and cash
     equivalents                                 91,557               (60,457)


    Cash and cash equivalents,
     beginning of period                         27,122                87,579
                                                 ------                ------


    Cash and cash equivalents, end
     of period                                 $118,679               $27,122


                                    MOVE, INC.

                                 REVENUE BY TYPE

                                  (in thousands)


                    Three Months Ended December            Twelve Months Ended December
                                 31,                                     31,
                   ----------------------------           -----------------------------

                   2013                    2012             2013                   2012
                   ----                    ----             ----                   ----

                              (unaudited)                           (unaudited)


    Revenue

       Consumer
       advertising            $43,542            $41,156              $175,890          $161,817

       Software
       and
       services                12,938             11,581                51,143            37,416

         Total
         revenue              $56,480            $52,737              $227,033          $199,233



     Percentage
     of
     revenue

       Consumer
       advertising                 77%                78%                   77%               81%

       Software
       and
       services                    23%                22%                   23%               19%

        Total                     100%               100%                  100%              100%
                                  ===                ===                   ===               ===


                                                     MOVE, INC.

                              RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA

                                                   (in thousands)



                                      Three Months Ended December                    Twelve Months Ended December
                                                   31,                                            31,
                                     ----------------------------                   -----------------------------

                                     2013                    2012                    2013                    2012
                                     ----                    ----                    ----                    ----

                                                (unaudited)                                  (unaudited)


    Net income                                      $70                  $1,588                    $574            $5,625


    Plus:

    Stock-based
     compensation and
     charges                                      2,447                   2,416                  10,688             8,272

    Depreciation and
     amortization of
     property and
     equipment                                    2,825                   2,356                  10,505             9,551

    Amortization of
     intangible assets,
     including
     unconsolidated
     joint venture                                1,249                   1,178                   4,421             3,064

    Interest expense,
     net                                          1,615                       6                   2,559                 6

    Income tax (benefit)
     expense                                       (526)                    222                    (101)              397

    Non-GAAP
     Adjusted
     EBITDA                                      $7,680                  $7,766                 $28,646           $26,915









                                                 MOVE, INC.

                     RECONCILIATION OF EARNINGS PER SHARE TO NON-GAAP EARNINGS PER SHARE

                                               (in thousands)


                                     Three Months Ended December                 Twelve Months Ended December
                                                   31,                                            31,
                                     ----------------------------                   -----------------------------

                                     2013                    2012                    2013                    2012
                                     ----                    ----                    ----                    ----

                                                (unaudited)                                  (unaudited)


    Net income
     applicable to
     common
     stockholders                                   $70                  $1,588                    $574            $4,683


    Plus:

          Convertible
           preferred stock
           dividend and
           related accretion            -                       -                       -                     942

       Stock-based
        compensation and
        charges                                   2,447                   2,416                  10,688             8,272

       Amortization of
        intangible assets,
        including
        unconsolidated
        joint venture                             1,249                   1,178                   4,421             3,064

       Amortization of debt
        discount and
        issuance costs                975                       -                   1,491                       -

    Non-GAAP net
     income
     applicable to
     common
     stockholders                                $4,741                  $5,182                 $17,174           $16,961



    Basic earnings
     per share                                    $0.00                   $0.04                   $0.01             $0.12



    Diluted
     earnings per
     share                                        $0.00                   $0.04                   $0.01             $0.12



    Non-GAAP basic
     earnings per
     share                                        $0.12                   $0.13                   $0.44             $0.44



    Non-GAAP
     diluted
     earnings per
     share                                        $0.11                   $0.13                   $0.42             $0.43



    Shares used to
     calculate earnings
     per share:

    Basic                                        38,714                  38,834                  39,089            38,705
                                                 ======                  ======                  ======            ======


    Diluted                                      41,741                  39,800                  41,236            39,721
                                                 ======                  ======                  ======            ======


                                                                                             MOVE, INC.

                                                                    OPERATING RESULTS NET OF STOCK-BASED COMPENSATION AND CHARGES

                                                                                           (in thousands)



                                        Three Months Ended                                                                         Three Months Ended

                                         December 31, 2013                                                                          December 31, 2012
                                         -----------------                                                                          -----------------

                                            (unaudited)                                                                                (unaudited)

                    As Reported            Stock-based Compensation                         Excluding                          As Reported             Stock-based Compensation
                                                  and Charges                                                                                                 and Charges                       Excluding
                                                                                     Stock-based Compensation                                                                            Stock-based Compensation
                                                                                            and Charges                                                                                         and Charges
                                                                                    -------------------------                                                                           -------------------------

    Revenue                      $56,480                          $              -                                 $56,480                   $52,737                          $      -                             $52,737


    Costs and
     operating
     expenses:

    Cost of revenue               11,465                                       (79)                                 11,386                    10,432                               (75)                             10,357

    Sales and
     marketing                    22,393                                      (633)                                 21,760                    19,564                              (408)                             19,156

    Product and web
     site
     development                   9,566                                      (669)                                  8,897                     9,738                              (526)                              9,212

    General and
     administrative               11,550                                    (1,066)                                 10,484                    10,846                            (1,407)                              9,439

    Amortization of
     intangible
     assets                        1,249                                         -                                   1,249                       981                                 -                                 981

    Total costs and
     operating
     expenses                     56,223                                    (2,447)                                 53,776                    51,561                            (2,416)                             49,145
                                  ------                                    ------                                  ------                    ------                            ------                              ------


    Operating
     income                         $257                                    $2,447                                  $2,704                    $1,176                            $2,416                              $3,592





                                        Twelve Months Ended                                                                        Twelve Months Ended

                                         December 31, 2013                                                                          December 31, 2012
                                         -----------------                                                                          -----------------

                                            (unaudited)                                                                                (unaudited)

                    As Reported            Stock-based Compensation                         Excluding                          As Reported             Stock-based Compensation
                                                  and Charges                                                                                                 and Charges                       Excluding
                                                                                     Stock-based Compensation                                                                            Stock-based Compensation
                                                                                            and Charges                                                                                         and Charges
                                                                                    -------------------------                                                                           -------------------------

    Revenue                     $227,033                          $              -                                $227,033                  $199,233                          $      -                            $199,233


    Costs and
     operating
     expenses:

    Cost of revenue               45,868                                      (340)                                 45,528                    37,421                              (268)                             37,153

    Sales and
     marketing                    90,012                                    (2,379)                                 87,633                    75,089                            (1,962)                             73,127

    Product and web
     site
     development                  38,889                                    (2,719)                                 36,170                    37,341                            (1,938)                             35,403

    General and
     administrative               47,282                                    (5,250)                                 42,032                    42,360                            (4,104)                             38,256

    Amortization of
     intangible
     assets                        4,421                                         -                                   4,421                     2,275                                 -                               2,275
                                   -----

    Total costs and
     operating
     expenses                    226,472                                   (10,688)                                215,784                   194,486                            (8,272)                            186,214
                                 -------                                   -------                                 -------                   -------                            ------                             -------


    Operating
     income                         $561                                   $10,688                                 $11,249                    $4,747                            $8,272                             $13,019


                                MOVE, INC.

                       AVERAGE MONTHLY UNIQUE USERS

                              (in thousands)


                     Three Months                       Twelve Months
                    Ended December                      Ended December
                            31,                                    31,
                     ---------------                         --------------

                   2013       2012         % Change        2013       2012  % Change
                   ----       ----         --------        ----       ----  --------

                   (unaudited)                           (unaudited)


    Unique users 23,942     21,249                  13%  27,110     23,604           15%

SOURCE Move, Inc.