ZipRealty Enters 2013 With Healthy Momentum
2013-01-08 01:58:35 -
Company expects a strong fourth quarter performance and positive Adjusted EBITDA
for full year 2012
EMERYVILLE, Calif., Jan. 7, 2013 - ZipRealty, Inc. ( www.ziprealty.com)
(NASDAQ: ZIPR), the most prominent online technology-enabled residential real
estate brokerage company, today announced that, based upon preliminary
information, it expects to achieve positive Adjusted EBITDA for the full year
2012, marking a financial turning point for the company.
"We expect to fulfill our commitment to generate positive Adjusted EBITDA in
2012, while strengthening ZipRealty's core assets and positioning the company
for strong growth in the years to come," said Lanny Baker, Chief Executive
Officer and President. "Our redesigned website and mobile apps are winning rave
reviews, and major upgrades to our agent platform are generating similar amounts
of excitement. As this new phase of product innovation starts to differentiate
ZipRealty, we are extremely pleased to have achieved year to year growth in net
transaction revenue in the fourth quarter on a same market basis, reversing
negative comparisons in prior quarters."
Summary of Preliminary 2012 Financial Results (Unaudited):
* Full year net revenues are expected to be in the range of $73 million to $74
* Full year Adjusted EBITDA is expected to be positive.
* Fourth quarter net transaction revenue is expected to be approximately 2%
greater than the prior year's quarter on a same market basis.
"Looking forward, ZipRealty's objective is to empower a growing movement of real
estate agents who seek to serve today's home buyers and sellers differently,"
added Mr. Baker. "This new service formula starts with accurate and
comprehensive information, wrapped in effective and easy-to-use technology, and
connects the consumer and their agent like never before. We know from experience
that these are the critical elements for everyone in the real estate industry,
and we are making important investments to improve upon our own considerable
strengths in these areas."
"First, we are proud of the accuracy and comprehensiveness of ZipRealty's real
estate information, and we've started to expand our coverage footprint to serve
consumers in more cities and new neighborhoods. We are also adding new depth to
our site, with a particular focus on relevant and authoritative information that
will assist home sellers," said Mr. Baker.
"ZipRealty also continues to enhance its industry-leading technology, website
and apps. The next version of our proprietary, intelligent customer service
platform, ZAP, went live in December. This version, which was developed and
tested in collaboration with ZipRealty agents over an 18-month period and the
most significant upgrade in five years, improves on the user interface, client
management features, and client-matching algorithm that define this technology
platform," Mr. Baker added.
"Finally, the ZipRealty team continues to grow as we attract more of the
highest-caliber talent," he noted. "Real estate industry veteran and recruiting
expert, Adam Lerman, has joined the company as National Recruiting Director and
will lead recruiting strategy and a staff of 23 local recruiters. ZipRealty's
local agents currently garner the highest consumer satisfaction ratings in the
company's history, and we are excited to begin expanding our team. Additionally,
we have made a number of important recent hires in product management, data
engineering, and public relations, and we are in the process of building out the
Powered by Zip team to support our partners and continue the expansion of that
2013 Citi Internet, Media and Telecommunications Conference
Mr. Baker and ZipRealty's Chief Financial Officer Eric Mersch will participate
as speakers in the 2013 Citi Internet, Media and Telecommunications Conference
on Jan. 8 in Las Vegas. The conference will be held at the Bellagio Hotel and
marks the 23(rd) annual conference hosted by Citi Equities, Citigroup's
Institutional Client Group. ZipRealty's presentation is scheduled to begin at
3:45 p.m. PST. The live presentation will be audio-webcast, with accompanying
slides, during the conference. This webcast will be available through April 9.
Please use the following link to access the presentation:
ZipRealty expects to announce in late January the date and details of the
company's Conference Call to discuss its fourth quarter and full year 2012
results in detail.
About ZipRealty, Inc.
ZipRealty is a leading national real estate brokerage and provider of
proprietary technology and comprehensive online marketing tools for the
residential real estate brokerage industry. For home buyers and sellers who
increasingly want control, choice and a seamless, customized service, ZipRealty
offers Internet-enabled, state-of-the-art technology and complete access to
accurate, timely information via their website and mobile applications, which
real estate professionals can combine with their own local knowledge and
personal expertise to offer an exceptional start-to-finish client experience.
For real estate professionals who seek more productive ways to conduct business,
ZipRealty provides technology and online marketing tools to enhance their online
sales channel, including lead generation, conversion and service of their
clients. ZipRealty's technology and online marketing products serve its full-
service, owned-and-operated residential real estate brokerage business in 19
markets nationwide, as well as its Powered by Zip network of leading third-party
local brokerages in 12 markets.
Note on Financial Presentation
The financial figures for the full year and fourth quarter 2012 presented and
referred to in this announcement are preliminary as the company has not
completed the full year 2012 financial close. Further, all financial results
will be subject to audit prior to filing with the Securities and Exchange
Commission and, therefore, may change significantly from those presented in this
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 company's achievement of positive Adjusted
EBITDA in 2012, the information for full year and fourth quarter 2012 under
"Summary of Preliminary 2012 Financial Results (Unaudited)," and the company's
positioning for strong growth and improvement on its strengths in future years.
The forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from those projected, including but
not limited to potential adjustments to the full year and fourth quarter 2012
financial information as the company completes the full year 2012 financial
close and its results are audited, volatility in the real estate market,
macroeconomic factors such as unemployment, tight credit, inventory levels,
foreclosure processing delays and the impact of government programs, recent
changes to the company's business model and operations that may not realize
intended results, and other risk factors set forth in the company's Form 10-K
for the year ended December 31, 2011.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.
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ZipRealty via Thomson Reuters ONE