Move Inc. revenue declining

Realtor.com operator Move Inc. said in a regulatory filing Thursday that third-quarter revenue fell 15.7 percent from a year ago, and warned of further declines in the final three months of the year.

Revenue totaled $52.9 million for the third quarter, down from $61.2 million a year ago, and is projected to total between $47 million and $48 million in the final three months of the year -- a level Move executives expect to stay, on average, next year.

Move's management team blamed the decline in revenue on discontinued operations that formerly generated about $10 million a year in revenue, and a 15 percent decline in the number of for-sale listings on Realtor.com in the last year.

Move publishes basic listings on Realtor.com, the most popular real estate portal on the Internet, for free. But fewer listings means less revenue for Move because agents and brokerages who purchase "showcase listing enhancements" are charged subscription fees that are based on the size of their market and the number of listings they had in the last 12 months.

Enhanced listings, which include more photos, virtual tours, video and personal branding, accounted for 39 percent of Realtor.com's revenue last year, according to the company's most recent annual report. "Featured home" display ads, which put listings on top of some search results on the site, accounted for another 11 percent of revenue.

Move's chief exeuctive officer, Steve Berkowitz, said the listings picture could turn around if a "shadow inventory" of bank-owned properties and homes whose owners are waiting for markets to stabilize goes on the market.

Many homeowners, especially in the mid to upper price tiers, aren't putting their homes on the market because they don't think they will sell, and because they can't get a mortgage to trade up to a better home, Berkowitz said.

"We believe there is a pent-up demand ... that will come back into the market once people are comfortable prices have bottomed out in the real estate market," Berkowitz said in a conference call with investment analysts. ...CONTINUED

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.