HouseValues Inc. on Thursday raised its outlook for the first quarter of 2006 on better-than-expected progress in its mortgage business and continued strong demand for its real estate marketing services, the Kirkland, Wash.-based company said.
HouseValues now expects first-quarter revenue to be approximately $26.8 million, and adjusted EBITDA to exceed $4 million, up from its previous estimates of $25.5 million to $26 million in revenue and $3 million to $3.5 million in adjusted EBITDA. (“EBITDA” stands for Earnings Before Interest, Taxes, Depreciation and Amortization.)
“Our strong first-quarter revenue reflects progress in The Loan Page as well as the first quarter of revenue from HomePages,” Ian Morris, HouseValues CEO, said in a statement. “HouseValues’ first-quarter results demonstrate our progress with our investments in new products and towards achieving our 2006 goals.”
HouseValues also reiterated its expectation for all of 2006, expecting full-year revenue of between $105 million and $115 million and adjusted EBITDA of between $18 million and $20 million.
The company is scheduled to publish detailed first quarter results and host a conference call after market-close on May 9, 2006.
HouseValues stock, traded on the Nasdaq composite index under the ticker, “SOLD,” went up to $9.25 a share in after-hours trading Thursday after closing at $8.
In January, HouseValues recorded a 29 percent jump in its per-share price from $13.02 to $16.79, but gave back more than half of that gain with an 18.7 percent drop in February to close at $13.50.
HouseValues’ stock price deteriorated further when the company released its fourth-quarter 2005 earnings announcement after the markets closed Feb. 28. The company reported net income of $4 million, or 15 cents per share, which included a $1.2 million benefit from the favorable settlement of a state tax audit, compared with fourth-quarter 2004 net income of $1.85 million, or 8 cents per share.
HouseValues provides marketing and lead generation services to the real estate and mortgage industries.