Online real estate portal Move, Inc. recently announced the acquisition of TigerLead Solutions, LLC for $22 million.
TigerLead Solutions provides a comprehensive online solution for generating and managing homebuyer and home seller leads.
Management expects the acquisition of TigerLead to broaden Move’s lead generation product tool and thereby empower Move to deliver a complete suite of end-to-end solutions. These solutions will enable real estate professionals connect with consumers and grow their businesses.
TigerLead has added to the already impressive product portfolio of Move, which already include REALTOR.com, ListHub, and Top Producer CRM. TigerLead will complement the leads generated by REALTOR.com.
In a separate development, Move increased its guidance for the third quarter and full year 2012. Move now expects revenues to come between $49 million and $49.5 million, up from the previous guidance of $48.5 million – $49 million. Adjusted EBITDA margin is projected at 14%, same as the previous outlook.
For full year 2012, management increased its revenue guidance to $197 million – $199 million, from the earlier estimate of $195 million – $197 million. Adjusted EBITDA margin is projected at 14%, same as the previous outlook.
Last month, Move reported results for the second quarter of 2012. Revenues in the second quarter of 2012 came in at $49.3 million, almost flat on a year-over-year basis.
Net income came in at 4 cents per share, beating the Zacks Consensus Estimate by a penny.
The weak economic environment continues to affect MOVE, which provides a wide range of real estate services through a family of websites. Nevertheless, management believes that a positive sign for its business and the industry as a whole is that even while the number of homes for sale has declined over the past several years, consumer engagement continues to increase.
We continue to maintain a Neutral recommendation on Move. Our recommendation is supported by a Zacks #3 Rank, which translates into a short-term rating of Hold.