By Leena Rao
Newly public home rental service HomeAway (NASDAQ:AWAY) is reporting third quarter earnings today, posting a 37 percent increase in revenue to $61.1 millon from $44.6 million in the third quarter of 2010. The company said revenue increase was attributed to a strength in renewal rates and increased revenue per listing from the prior year.
Unfortunately, the company posted a loss this quarter of $4.1 million, or ($0.05) per diluted share compared to a net loss of ($0.11) per diluted share in the third quarter of 2010. HomeAway says this was the impact of cumulative preferred stock dividends and discount accretion of $6.8 million, or ($0.09) per share. As of September 30, 2011, the Company no longer has any preferred stock outstanding.
Listing revenue increased 29.2% to $52.5 million from $40.6 million in the third quarter of 2010. Paid listings were 626,528, compared to 511,667 at the end of the third quarter of 2010 and 626,661 at the end of the second quarter of 2011. Paid listings increased 22.4% year-over-year and were consistent with the second quarter of 2011, reflecting seasonality. Average revenue per listing was up to $335, compared to $314 during the third quarter of 2010 and $339 during the second quarter of 2011.
Renewal rate was 76.4%, compared to 75.4% at the end of the third quarter of 2010 and 76.2% at the end of the second quarter of 2011. The company says web visits were 129.1 million for the quarter, an increase of 23.2% year-over-year.
HomeAway definitely had a better Q2 than Q3 this year. Some of that could be attributed to seasonality—more consumers are renting vacation homes during the summer.
Shares of HomeAway closed at $37.32 in today’s trading.