Loss Narrows as Sales Triple at Homestore.com
Homestore.com Inc. in Thousand Oaks, which controls more than 90% of home-sale listings on the Internet, said revenue more than tripled in the third quarter because of more subscriptions and advertising.
The company, which recently began offering its content to America Online customers, said revenue rose to $62.2 million from $20.7 million in the third quarter of 1999. Revenue rose 24% over the second quarter.
The company’s loss narrowed to $27.1 million or 33 cents a share, from $34.2 million or 65 cents a year earlier. It had a loss of $24.7 million or 31 cents a share in the second quarter.
The company said if it excludes non-cash charges for amortization, stock-based charges, research and development and a litigation settlement, it achieved net income for the quarter of $554,000 or 1 cent per share.
At the end of last year the company projected it would be profitable in the fourth quarter of 2001. Last quarter it moved the estimate to the fourth quarter this year.
The U.S. government is investigating Homestore.com for possible antitrust violations, focusing on its exclusive contracts with other property-listing companies and real estate brokers. Investigators are looking into whether Homestore.com’s contracts damage home sellers or prevent rivals from making their own national online lists.
Several analysts said they didn’t expect much to come of the probe.
Homestore.com is backed by the National Assn. of Realtors, National Assn. of Home Builders, Fannie Mae Inc., and venture capital firm Kleiner Perkins Caufield & Byers.
