As of today, Homestore.com has a new name, Move.com (NASDAQ:MOVE), and a new ticker symbol. The change is more than cosmetic. The company aims to be the ultimate search engine for the real estate industry, using performance-based marketing like Google (NASDAQ:GOOG).
The rechristened company posted its first-quarter results Tuesday. Revenues increased 22% to $69 million, but the company posted a loss of $2 million, or $0.01 per share. That compares to a $395,000 loss, with break-even EPS, in the year-ago period. Excluding expenses for stock options, net income would have been $1.3 million in the first quarter; EBITDA was $3.9 million.
Since 1996, the company has been a leading portal for real estate consumers and professionals. Its competitive advantage lies in its exclusive relationship with the National Association of Realtors, giving Move.com a database of more than 2.5 million real estate listings.
Move.com's goal of expanding its market reach has largely fueled its name change. Roughly 18 million households move each year. Whether they're searching, buying, selling, renting, financing, moving, settling in, or nesting, they're the targets of more than $20 billion in annual advertising. With a reported 77% of homeowners online, Move.com wants to bring much more of those dollars to its site.
Move.com realizes that online users want comprehensive listings when they search for homes and rentals. It will now provide full access to its listings, making money from Realtors through a cost-per-click model.
This transition could provide a nice boost to Move.com's business, if similar efforts at other companies are any indication. During the last year, Bankrate (NASDAQ:RATE) revamped its website and adopted more performance-based marketing; since the changes, the company has posted strong profitability, and its stock price has risen to $49.45 from $12.45.
Of course, the online real estate market is highly competitive, and execution will be critical for Move.com. But the good news, at least, is that the company is moving in the right direction.
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Fool contributor Tom Taulli does not own shares mentioned in this article.
