Ziprealty (MM) (NASDAQ:ZIPR)
Historical Stock Chart
From Aug 2019 to Aug 2024
![Click Here for more Ziprealty (MM) Charts. Click Here for more Ziprealty (MM) Charts.](/p.php?pid=staticchart&s=N%5EZIPR&p=8&t=15)
ZipRealty, Inc. (Nasdaq: ZIPR) today announced financial results for its
second quarter ended June 30, 2007. For the quarter, net revenues were
$31.3 million, a 16% increase from the $26.9 million reported in the
second quarter of 2006. The Company’s net loss
for the period was $1.0 million, or $0.05 per basic and diluted share,
compared with a net loss of $0.2 million or $0.01 per basic and diluted
share in the year ago period. On a pro forma basis, second quarter net
income per diluted share was $0.01 versus net income of $0.07 per
diluted share for the same period a year ago.
Pat Lashinsky, President and CEO of ZipRealty, commented, “We
were pleased to post solid results for the quarter in the current
challenging residential real estate environment. We credit our value
proposition and ability to execute, particularly during a period of
investment in national expansion. To that point, hiring the right team
in the right markets is our top priority. In addition, we are working to
ensure that our agents and customers have the best tools available
during the decision making process. To date, those features continue to
drive record traffic and activity to our site, and combined with new
market investments this year, we are confident that ZipRealty is
uniquely positioned to continue to gain market share in a challenging
market and to better drive value when the market turns. With that goal,
I am pleased to announce that we will be entering the New York market by
the end of the year. Our initial expansion into the Long Island and
Westchester County markets will be the tenth and eleventh new markets
during 2007 and approaches the high end of our stated goal of opening
ten to twelve new markets this year.”
ZipRealty announced the following operating metrics for the second
quarter of 2007:
At June 30, 2007, there were 2,070 ZipAgents employed, up from 1,669
at the end of the second quarter of 2006.
The total value of real estate transactions closed increased to
approximately $1.41 billion in the second quarter of 2007 versus $1.26
billion for the same period in 2006.
The total number of transactions closed increased approximately 12.3%
to 3,988 from 3,552 during the same prior year period.
Average net revenue per transaction increased approximately 3.7% to
$7,649 from $7,375 in the second quarter of 2006.
Balance Sheet & Liquidity
As of June 30, 2007, the Company had approximately $86.7 million of
cash, cash equivalents and short-term investments, with no long-term
debt.
Use of Non-GAAP Financial Measures
To supplement its financial statements presented in accordance with
GAAP, ZipRealty uses a non-GAAP measure of net income (loss) it refers
to as “pro forma net income (loss)”
that excludes certain items including stock-based compensation, non-cash
income taxes and certain one-time items, if any. A reconciliation of
this non-GAAP measure to GAAP is provided in the attached tables. These
non-GAAP adjustments are provided to enhance the user's overall
understanding of ZipRealty’s current financial
performance and its prospects for the future. ZipRealty believes these
non-GAAP results provide useful information to both management and
investors by excluding certain items it believes are not indicative of
its core operating results and thus presents a more meaningful basis for
comparison between periods. Further, this non-GAAP method is the primary
basis management uses for planning and forecasting its future
operations. The presentation of this additional information should not
be considered in isolation or as a substitute for results prepared in
accordance with GAAP.
Financial Guidance
2007 is expected to be a year of significant investment, as the Company
plans to expand into ten to twelve new markets. Based on this plan and
management’s current outlook, the Company
reiterates the following guidance from May 2007:
Revenues are expected to range from $105 to $110 million.
Average agent productivity is expected to approximate 0.6 to 0.7
closed transactions per agent per month, with average net revenue per
transaction of approximately $6,500 to $7,000.
Agent count at the end of the year is expected to be between 2,200 and
2,400 agents.
The Company expects to report a full year GAAP net loss of between $10
and $13 million, or $0.45 to $0.60 per basic and diluted share, based
on 23 million shares outstanding. The range of the pro forma loss is
expected to be between $6 and $9 million, or $0.25 to $0.40 per basic
and diluted share.
Conference Call Details
A conference call to discuss second quarter results and the Company’s
outlook for 2007 will be webcast live on Tuesday, August 7, 2007 at 5:00
p.m. Eastern Time on the investor relations section of ZipRealty’s
website, www.ziprealty.com.
Listeners may also access the call by dialing 800-817-2743. A replay of
the conference call will be available through August 14, 2007 by dialing
888-203-1112, password 8879004.
About ZipRealty, Inc.
ZipRealty is a full-service residential real estate brokerage firm. The
Company uses the Internet, proprietary technology and efficient business
processes to provide home buyers and sellers with high-quality service
and value. Founded in 1999, the Company operates in 28 major markets in
17 states and the District of Columbia. The Company’s
client-centric business strategy utilizes a sophisticated web site,
which enables homebuyers and sellers to access comprehensive local
Multiple Listing Services home listings data and other relevant
information. The Company also utilizes a proprietary business management
technology platform, which reduces costs and allows the Company to pass
on significant financial savings to consumers. This Internet-enabled,
technology-driven, employee-based model provides the Company with a
distinct competitive advantage, allowing ZipRealty to consistently
deliver outstanding service to clients. For more information on
ZipRealty, visit www.ziprealty.com
or call 1-800-CALL-ZIP.
Cautionary Language
This release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the federal securities laws, including,
without limitation, statements regarding the residential real estate
market conditions for the remainder of 2007, the advantages of the
Company’s platform in creating a unified
infrastructure, culture and focus on customer service, growth of the
Company’s brand, the Company’s
future financial performance, and statements under “Financial
Guidance” concerning expected investment and
plans to open new markets, revenues, agent productivity, average net
revenue per transaction, agent headcount, net loss and loss per share
and shares outstanding for the year ending December 31, 2007. The
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those projected.
The risks and uncertainties include but are not limited to a continuing
decline in the residential real estate market, including a decline in
the number and/or sales prices of homes, the Company’s
limited operating history and limited profitability, the Company’s
access to MLS listings and leads from third parties that it does not
control, economic events or trends in housing prices, interest rates,
the newness and scalability of the Company’s
business model, the Company’s ability to
hire, retain and train qualified agents and key personnel, the Company’s
ability to manage growth in terms of personnel, expansion into new
markets, information and control systems and legal restrictions, the
Company’s ability to comply with often
complex federal and state laws and regulations concerning real estate
brokerage, other core services such as mortgage and insurance, internet
content, privacy and other matters as well as rules of real estate
industry organizations, competition, seasonality, geographic
concentration, use by Internet service providers and personal computer
users of more restrictive email filters, and other risk factors set
forth in the Company's filings with the SEC, including but not limited
to its Quarterly Report on Form 10-Q for the fiscal quarter ended March
31, 2007. The forward-looking statements included in this release are
made as of today’s date and, except as
otherwise required by law, ZipRealty does not intend to update these
forward-looking statements to reflect events or circumstances after the
date hereof.
ZipRealty, Inc.
Consolidated Statements of Operations (unaudited)
(in thousands, except per share amounts and operating data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2007
2006
2007
2006
Net transaction revenues
$
30,506
$
26,195
$
53,181
$
44,843
Referral and other revenues
775
714
1,482
1,283
Net revenues
31,281
26,909
54,663
46,126
Operating expenses
Cost of revenues
17,312
14,590
30,387
25,330
Product development
1,813
1,351
3,494
2,752
Sales and marketing
9,829
7,596
18,676
14,679
General and administrative
4,457
3,030
8,425
6,329
Total operating expenses
33,411
26,567
60,982
49,090
Income (loss) from operations
(2,130
)
342
(6,319
)
(2,964
)
Other income (expense):
Interest income
1,094
896
2,182
1,696
Other income (expense), net
4
-
-
-
Total other income (expense), net
1,098
896
2,182
1,696
Income (loss) before income taxes
(1,032
)
1,238
(4,137
)
(1,268
)
Provision for (benefit from) income taxes
-
1,458
-
(260
)
Net income (loss)
$
(1,032
)
$
(220
)
$
(4,137
)
$
(1,008
)
Net income (loss) per share:
Basic
$
(0.05
)
$
(0.01
)
$
(0.19
)
$
(0.05
)
Diluted
$
(0.05
)
$
(0.01
)
$
(0.19
)
$
(0.05
)
Weighted average common shares outstanding:
Basic
22,501
20,366
22,255
20,329
Diluted
22,501
20,366
22,255
20,329
Supplemental operating data (unaudited)
Number of ZipAgents at beginning of period
1,875
1,481
1,794
1,366
Number of ZipAgents at end of period
2,070
1,669
2,070
1,669
Total value of real estate transactions closed during period (in
billions)
$
1.41
$
1.26
$
2.45
$
2.16
Number of transactions closed during period (1)
3,988
3,552
7,098
6,190
Average net revenue per transaction during period (2)
$
7,649
$
7,375
$
7,492
$
7,244
(1) The term "transaction" refers to each representation of a buyer
or seller in a real estate purchase or sale.
(2) Average net revenue per transaction equals net transaction
revenues divided by number of transactions with respect to each
period.
Pro forma earnings (loss) and pro forma earnings (loss) per
share
Pro forma net (loss) and pro forma earnings net (loss) per share
have been computed to give effect to excluding stock-based
compensation expense and non-cash income taxes. Management believes
that pro forma net (loss) for the three and six months ended June
30, 2007 and 2006 provides useful information to investors because
it excludes the impact of items it believes are not indicative of
its core operating results and thus presents a more consistent basis
for comparison between periods.
Three Months Ended
Six Months Ended
June 30,
June 30,
2007
2006
2007
2006
GAAP net income (loss) as reported
$
(1,032
)
$
(220
)
$
(4,137
)
$
(1,008
)
Stock-based compensation
1,172
613
1,995
1,169
Non-cash income taxes
-
1,289
-
(280
)
Pro forma net income (loss)
$
140
$
1,682
$
(2,142
)
$
(119
)
Pro forma net income (loss) per share:
Basic
$
0.01
$
0.08
$
(0.10
)
$
(0.01
)
Diluted
$
0.01
$
0.07
$
(0.10
)
$
(0.01
)
Pro forma weighted average common shares outstanding:
Basic
22,501
20,366
22,255
20,329
Diluted
24,130
24,145
22,255
20,329
ZipRealty, Inc.
Consolidated Balance Sheets (unaudited)
(in thousands)
June 30,
December 31,
2007
2006
Assets
Current assets:
Cash and cash equivalents
$
6,712
$
8,575
Short-term investments
80,005
80,233
Accounts receivable, net of allowance
3,100
1,781
Prepaid expenses and other current assets
3,214
3,151
Current and deferred income taxes
32
29
Total current assets
93,063
93,769
Restricted cash
90
90
Property and equipment, net
4,633
4,114
Investment in non-consolidated companies
13
17
Other assets
309
367
Total assets
$
98,108
$
98,357
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
2,696
$
2,184
Accrued expenses
8,624
7,791
Total current liabilities
11,320
9,975
Other long-term liabilities
501
513
Total liabilities
11,821
10,488
Stockholders' equity:
Common stock: 22,526 and 21,627 shares issued and outstanding at
June 30, 2007 and December 31, 2006, respectively
23
22
Additional paid-in capital
139,518
134,813
Common stock warrants
3,305
5,519
Deferred stock-based compensation
(27
)
(71
)
Accumulated other comprehensive loss
(138
)
(157
)
Accumulated deficit
(56,394
)
(52,257
)
Total stockholders' equity
86,287
87,869
Total liabilities and stockholders' equity
$
98,108
$
98,357