HouseValues today reported net income of $3.7 million, or 14 cents per diluted share, for the second quarter of 2005, capping off its 17th profitable quarter, company officials said.
The real estate marketing and lead generation company reported revenue of $20.6 million for the quarter, up 85 percent from the same period a year ago. Net income was up from $2.3 million, or 11 cents a share, the previous year.
The company continued to invest in new services for real estate professionals during the quarter with the launch of a service aimed at helping mortgage professionals capture more business and build stronger relationships with consumers and real estate agents.
The service, launched in June, offers lenders an exclusive look at prospective home purchase clients through HouseValues’ JustListed.com lead service. The service includes exclusive home buyer leads, a mortgage customer relationship management system, and training and account management support.
HouseValues said that more than 500 mortgage companies are already using the new mortgage marketing service.
Research firm Borrell Associates expects online mortgage advertising to grow from $2 billion last year to more than $4.3 million in 2009 – more money than will be spent on direct mail, newspapers or television.
As real estate and mortgage professionals look for online alternatives to print-based advertising, the company expects to continue to grow. HouseValues’ anticipated third-quarter revenue is in the $22.5 million to $23.5 million range, and EBITDA (earnings before interest, taxes, depreciation and amortization) between $5.5 million and $6 million. GAAP diluted earnings per share are expected to be 11 cents to 13 cents.
For the full year, HouseValues anticipates revenue in the range of $85 million to $88 million. The company expects full-year EBITDA in the range of $22 million to $23 million, and GAAP earnings per share of 46 cents to 50 cents.
HouseValues generates home buyer and seller leads via two consumer-facing Web sites: HouseValues.com, which targets home sellers, and JustListed.com, which targets home buyers. The company’s clients serve about 55,000 neighborhoods in North America.
HouseValues has relationships with nearly 14,000 real estate and mortgage professionals.
HouseValues’ stock (NASDAQ:SOLD) closed at $17.38 a share Thursday.
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