Kirkland, Wash.-based HouseValues, an online marketing partner to real estate and mortgage professionals, Tuesday reported annual revenue and net income growth for 2005 of 82 percent and 101 percent, respectively.

HouseValues made $4 million, or 15 cents a share, for the quarter ended Dec. 31, up from $1.9 million, or 8 cents a share, for the same quarter last year. Revenue rose to $25.2 million from $14.4 million a year earlier.

A group of analysts polled by Thomson Financial had expected a profit of 11 cents a share on sales of $25.8 million, reported. Also, the company predicted future earnings that were less than expected, reports said.

The company’s shares were trading in the $10 range in after-hours trading, down more than $3 a share from Tuesday’s closing price of $13.75, a more than 20 percent drop.

“2005 was the sixth year of extraordinary growth at HouseValues,” said CEO Ian Morris. “2006 will be another year of growth and investment as we extend our leadership position and continue to build deeper relationships with consumers as well as our real estate and mortgage professional customers.”

The company said it plans to make significant investments this year in HomePages and The Loan Page, and these investments are reflected in its business outlook.

In November 2005, HouseValues announced that it had acquired San Francisco-based The Loan Page, an online mortgage lead acquisition company, to expand its mortgage offerings. The company in October 2005 announced the launch of HomePages, a national home buying and selling service combining aerial maps, in-depth neighborhood information, and nationwide home listings in one integrated Web site.

For the quarter ending next month, HouseValues expects to make 3 or 4 cents a share on revenue of $25.5 million to $26 million. Those earnings include 3 cents a share worth of stock-option costs. Analysts were looking for a 14-cent profit on sales of $29 million, reports said.

For the year ending in December, the company expects to make around 27 cents a share, after 12 cents worth of stock-option expense, on revenue of $110 million or so. Analysts were looking for 69 cents a share on revenue of $130 million, reports said.


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