Housevalues lost $1.3 million in the 2nd quarter of 2008, the company reported in a press release last week. John Cook also reported that they lost over 400 customers in the same period.
But don’t shed a tear for HV – they’re still sitting on $62.7 million in cash. And that’s a bucket of cash that they’ve been willing to swing around a bit recently.
The press release highlighted RealtyGenerator, a company HouseValues acquired in November of last year. RealtyGenerator is a pretty slick product that functions as a lead generation and CRM tool for brokers and agents.
Personally, I was more curious in seeing what HouseValues had to say about its other investment – the $2.75 million they plunked down in January into ActiveRain.
Took a while for me to find any mention, but I did manage to dig this out of their Letter to Shareholders from the 2007 Annual Report (PDF link).
While the acquisition of Realty Generator will go a long way toward enhancing our products, we believe our investment in ActiveRain will help us broaden our sales reach. ActiveRain is a leading community and social networking platform for real estate professionals. The company has attained a high level of user engagement and has rapidly grown to more than 80,000 members. While ActiveRain will continue to operate as a completely independent business, our strategic relationship creates the potential for a new and rapidly growing channel.
Clearly Housevalues is excited about their new properties. I’m not sure investors were similarly moved however, as the stock price (SOLD) has remained relatively static.
