Shares of real estate portal website Trulia (TRLA) surged last week, after the company reported a per share loss that was better than analyst projections. For its second quarter, Trulia reported a loss of $0.07 per share, up from the loss of $0.49 it reported in the prior year quarter. Adjusting for one-time items and stock-based pay, Trulia earned 5 cents per share, a penny ahead of analyst estimates on the same basis. Revenue surged 77% year-on-year to $29.7 million. This positive news sent the stock up 25% to a new 52-week high after it reported earnings on August 1.
Trulia’s total monthly unique visitors rose 49% to 23.5 million, while total subscribers using its paid service rose 49% to 32,123. Trulia’s average revenue per subscriber also rose 31% to $194. These positive figures also caused shares of its closest competitor, Zillow (Z), to surge 15%.
Both Trulia and Zillow operate websites and mobile apps that allow users to list homes for rent or sale. They both generate revenue by helping real estate agents promote their listings. The housing market, which continues to rebound despite warnings of a new bubble forming, has significantly increased revenue at real estate search sites. Looking forward, Trulia expects fairly rose revenue growth for the rest of the year, between $30.5 million to $31.5 million. Analysts had expected $29 million in full year revenue.
Trulia has nearly 400,000 real estate professionals active on its website. The San Francisco-based company originally only offered California properties but expanded across the country and went public last July. The stock has since risen 159% from its IPO price of $17, despite bearish sentiment that claimed that Trulia and Zillow were overvalued stocks that were doomed to pop.
During the quarter, Trulia enhanced its website search functions, adding localized neighborhood crime, education, commuter and property value data to its interactive maps. Trulia’s maps now also visualize historical earthquake and flood data to assess the risk of natural disasters on a block-by-block level. Median property values and ratings are also directly displayed on the map overlay, rather than a separate search menu. The company refers to these interactive maps as the “core part” of its mobile experience because it is directly connected to location-based services on smartphones. Trulia also revamped its iPad app with new navigation menus and clearer, color-coded map markers.
Even though Trulia has has risen 86% over the past twelve months, the stock is still a highly speculative one. It trades at 63 times forward earnings with a 5-year PEG ratio of 3.04, which indicates that the stock is not only expensive compared to its industry peers, but also faces sluggish growth ahead according to analysts’ 5-year projections.
Other News About TRLA
All Boats Rising on Tide of Trulia Results
Trulia lifts up its real estate portal peers.
Trulia Posts $2.4 Million Net Loss in Second Quarter
Trulia reports a quarterly loss, but hopes remain high.
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