By Leena Rao
Newly public home rental service HomeAway (NASDAQ:AWAY) is reporting second quarter earnings today, posting a 40.9 percent revenue growth, to $58.7 million in the second quarter, compared to $41.6 million in the second quarter of 2010. The company said growth was buoyed by renewal rates, coupled with increases in new listings and revenue per listing.
Net income for the quarter was $2.2 million compared to net income of $14.9 million for the second quarter of 2010 (the company said that income for Q2 2010 was positively impacted by the release of a deferred tax asset valuation allowance, resulting in a one-time benefit of $13.4 million).
HomeAway, which debuted on the Nasdaq on June 29, saw cash flow increase 23.1 percent to $16.9 million from $13.7 million in the second quarter of 2010. Adjusted EBITDA increased 45.5% to $18.2 million from $12.5 million in the second quarter of 2010.
While the company saw net income fall, other metrics show that revenue and engagement continue to show steady growth at HomeAway. Listing revenue increased 33.9 percent to $51.0 million from $38.1 million in the second quarter of 2010. Paid listings were up to 626,661, compared to 525,187 at the end of the second quarter of 2010 and 575,166 at the end of the first quarter of 2011. Paid listings increased 19.3 percent year-over-year, and average revenue per listing was $339, compared to $298 during the second quarter of 2010 and $328 during the first quarter of 2011. Renewal rate was 76.2 percent, compared to 75.1 percent at the end of the second quarter of 2010 and 76.1 percent at the end of the first quarter of 2011.
HomeAway’s share value has been pretty steady over the past month, hitting a low of $34.92 and a high of $43.98 per share in the period since the offering. HomeAway’s shares closed at $42.77 at market close, giving the company a $3.41 billion valuation.