Industry News

HouseValues boosts annual revenue by 82%

Stock drops in wake of disappointed expectations

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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 leade...