HomeAway, Inc., is an online marketplace for the vacation rental industry. Vacation rentals are fully furnished, privately owned residential properties, including homes, condominiums, villas and cabins etc.
$10B is the new $1B: P-E firm TPG will reportedly lead a funding round (potential size of $400M-$500M) in home/apartment rental platform Airbnb that will give it a valuation bigger than that of many of the world's largest hotel operators.
Airbnb's site and apps offer 600K+ rental listings spread out over 34K+ cities in 192 countries. The company, which receives a cut on enabled rentals, has been tight-lipped about revenue.
The report is the latest proof of soaring valuations for late-stage private tech companies. This year has already seen Facebook pay $19B for WhatsApp, and Dropbox raise funding at a $10B valuation. Analytics software vendor Palantir raised funding last fall at a reported $9B valuation.
HomeAway (AWAY - $3.9B market cap) competes a bit with Airbnb, but CEO Brian Sharples insists the overlap between the companies is limited for now. "Almost all their inventory is primary homes and rooms in metro areas, and we’re all second homes in vacation markets ... Could the two business models collide over the long-term? I think they could."
Airbnb recently ended its first national ad campaign after HomeAway sued the company for misappropriating HomeAway's birdhouse trademark in its ads.
Glad offers two solutions: GladOwners, a basic offering that historically goes for $100/year, and GladProfessional, a high-end offering that provides more scale and a handful of extra features, including push notifications and guest analytics.
HomeAway is offering GladOwners for free to customers. GladProfessional, currently used by 300+ property management companies, won't see its pricing change.
The purchase comes on the heels of HomeAway's $198M acquisition of Australian vacation rental marketplace Stayz.
HomeAway (AWAY) expects Q1 revenue of $102.1M-$103.3M, above a $99.5M consensus, and adjusted EBITDA of $23.9M-$24.6M. Full-year guidance is for revenue of $429M-$436M, in-line with a $435.6M consensus, and adjusted EBITDA of $119M-$125M, up from a 2013 level of $96.7M.
Q4 adjusted EBITDA totaled $21M, down by $300K Y/Y and below guidance of $22.6M-$23.1M. Free cash flow was $23.4M, +6.8% Y/Y.
Listing revenue +25.5% to $78.4M, all other revenue +30.8% to $11.9M. Paid listings +25% to 890K, average revenue/listing +8% to $377, renewal rate -130 bps to 72.5%.
Sales/marketing spend +32% Y/Y to $29.2M, R&D +34% to$16.2M, G&A +65% to $23.5M.
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Qihoo (QIHU +4.3%) has been upgraded to Buy by Stifel, and started at Buy by UBS. Shares fell last Thursday following a report questioning the size of the company's search share gains, and rose the day before thanks to an Alibaba investment rumor.
The $198M cash purchase of Oz's Stayz Group will boost HomeAway's (AWAY) Asia-Pacific presence, and provide momentum to the company's new pay-per-booking business as it's a model Stayz has long-employed (A$25.4M in revenue in last fiscal year).
HomeAway (AWAY) inks a distribution partnership with European vacation rental provider Interhome, adding new listings of the latter on HomeAway's network through its new pay-per-booking product. The pricing structure has received positive remarks from industry members and analysts alike.
Given Interhome's size, the partnership is expected to add "tens of thousands" of rentals to HomeAway's platform. It represents the largest pay-per-booking deal HomeAway has scored since rolling out the new system earlier this month.