Move 8-K Move, Inc. Announces Fourth Quarter 2009 Financial Results

Exhibit 99.1

Move, Inc. Announces Fourth Quarter 2009 Financial Results

CAMPBELL, Calif.--(BUSINESS WIRE)--March 4, 2010--Move, Inc. (NASDAQ:MOVE) reported financial results for the fourth quarter and fiscal year ended December 31, 2009.

Revenue in the fourth quarter of 2009 was $49.6 million, compared to $57.5 million in the fourth quarter of 2008. Net loss applicable to common stockholders, including discontinued operations, was $4.5 million, or a loss of $0.03 per share, compared to a net loss of $3.2 million, or a loss of $0.02 per share in the fourth quarter of 2008. Non-GAAP Adjusted EBITDA (earnings from continuing operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) for the fourth quarter of 2009 was $5.0 million, or 10% of revenue, compared to $7.3 million, or 13% of revenue, for the fourth quarter of 2008. The Company has reported Adjusted EBITDA because management uses it to monitor and assess the Company's performance and believes it is helpful to investors in understanding the Company's business.

"The fourth quarter closed a year of tremendous change for Move, as we realigned our entire business to further extend our position as the leader in the online real estate market," said Steve Berkowitz, chief executive officer at Move, Inc. “In my first year leading the company, we have put in place the people, processes and operating plan to drive Move forward. Some of the changes we have implemented will have short term benefits, while others will take time before we fully realize the benefit of our efforts. However, I am confident that we have the focus and dedication to leverage our market leadership into long term success for our customers, our partners, and our consumers.”

2009 Highlights

In 2009, Move maintained its dominant market leadership, leading the industry in unique users and total engagement every month of the year. For the full year, Move averaged 8.9 million monthly unique users and 209 million monthly minutes. Among the top 8 companies in the online real estate market, consumers spent more time on Move’s sites than the next seven competitors combined. Other highlights from 2009 included:

• Steve Berkowitz was named CEO of Move in January, bringing 25 years of experience from companies including Microsoft, Ask.com and IDG Books.
• As CEO, Mr. Berkowitz built out a new management team, promoting Errol Samuelson to Chief Revenue Officer and hiring Rob Krolik (eBay, Shopping.com, DigitalThink) as Chief Financial Officer in July, followed by the September additions of David Story (Adobe, Intuit) as Chief Technology Officer and Scott Boecker (Ticketmaster, eToys) as Chief Product Officer.
• Launched new real estate professional products, including Search Assist, REALTOR Facebook widgets, Ask a Realtor, Realtor blogs, and in January 2010, the Realtor.com Real Estate Search iPhone app with 300,000 downloads in 50 days.
• Expanded marketing partnerships with leading real estate brokerage companies, including CENTURY 21 Real Estate and The Realty Alliance to increase listings exposure for tens of thousands of real estate professionals around the country.
• Launched Builders Design Experience, a joint venture with Builder Homesite, Inc. focused on helping new home builders reach buyers through the nation’s largest network of new home sites.
• Reduced annual expense run rate by more than $30 million to drive EBITDA and to free up capital for investment.

For the full year ended December 31, 2009, Move reported revenue of $212.0 million, compared to $242.1 million in the 2008 fiscal year. Net loss applicable to common stockholders in 2009 was $12.2 million, or a loss of $0.08 per share, compared to a net loss of $34.3 million, or a loss of $0.23 per share in 2008. Move's Adjusted EBITDA (earnings from continuing operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) on a non-GAAP basis for 2009 was $24.3 million, or 11% of revenue, compared to $22.2 million, or 9% of revenue, for 2008.

BUSINESS OUTLOOK

Move today provided guidance for the quarter ending March 31, 2010. For the quarter ending March 31, 2010, Move expects revenue to be approximately $48 million and expects to report Adjusted EBITDA margin of approximately 10%.

Move also provided guidance for the fiscal year ending December 31, 2010. The Company currently expects revenue to range between $186 million and $192 million, with an Adjusted EBITDA target of approximately 10%.

Conference Call

As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Thursday, March 4, 2010, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). In order to participate in the call, please dial (888) 396-2386, or if outside the U.S., (617) 847-8712 with passcode 99111855, at least five minutes prior to the 2:00 p.m. PT start time. A live webcast and replay of the call will also be available at http://investor.move.com under the Event Calendar menu. An audio replay will be available between 8:00 p.m. ET, March 4, 2010, and 11:59 p.m. ET, March 18, 2010, by calling (888) 286-8010, or (617) 801-6888, with passcode 33878336.

For additional information regarding the Company's results, please go to the "SEC Filings" section at http://investor.move.com to view annual reports as filed with the Securities and Exchange Commission on Form 10-K. Move’s Form 10-K for the year ended December 31, 2009 is expected to be filed with the Securities and Exchange Commission on, or before March 8, 2010.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Move uses a non-GAAP measure of income (loss) from continuing operations excluding restructuring, impairment of long-lived assets, litigation settlement charges and certain other non-cash and non-recurring items, principally depreciation, amortization and stock-based compensation and other charges, which is referred to as Adjusted EBITDA. The Company has also presented a non-GAAP table of Financial Data for the three and twelve month periods ended December 31, 2009 and 2008 that extracts stock-based compensation under SFAS 123R "Share Based Payment". A reconciliation of these non-GAAP measures to GAAP is provided in the attached tables. These non-GAAP adjustments are provided to enhance the user's overall understanding of Move's current financial performance and its prospects for the future and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP measures are the primary basis management uses for planning and forecasting its future operations. Move believes these non-GAAP results provide useful information to both management and investors by excluding certain expenses that it believes are not indicative of its core operating results and a more consistent basis for comparison between quarters and should be carefully evaluated.

This press release may contain forward-looking statements, including information about management's view of Move's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move's future results. The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

ABOUT MOVE, INC.

Move, Inc. (NASDAQ:MOVE) is the leader in online real estate with 8.9 million [1] monthly visitors to its online network of websites. Move, Inc. operates: Move.com, a leading destination for information on new homes and rental listings, moving, home and garden and home finance; REALTOR.com®, the official Web site of the National Association of REALTORS®; Moving.com; SeniorHousingNet; and TOP PRODUCER Systems. Move, Inc. is based in Campbell, California. For more information: www.move.com.

[1] comScore Media Metrics, January 2010

MOVE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2009			2008			2009			2008
	(unaudited)
Revenue	$	49,638		$	57,450		$	212,009		$	242,069
Cost of revenue (1)		11,033			11,588			48,498			46,041
Gross profit		38,605			45,862			163,511			196,028
Operating expenses: (1)
Sales and marketing		17,126			22,263			78,062			93,531
Product and web site development		7,374			5,832			27,832			26,342
General and administrative		13,717			15,808			64,944			77,571
Amortization of intangible assets		107			174			473			756
Restructuring charges		—			398			(1,192	)		4,412
Litigation settlements		3,888			—			4,863			—
Impairment of long-lived assets		—			1,670			—			1,670
Total operating expenses		42,212			46,145			174,982			204,282
Operating loss from continuing operations		(3,607	)		(283	)		(11,471	)		(8,254	)
Interest income, net		119			848			847			5,687
Other income (expense), net		157			(48	)		1,898			1,091
Income (loss) from continuing operations before income taxes		(3,331	)		517			(8,726	)		(1,476	)
Provision for income taxes		(190	)		236			37			549
Income (loss) from continuing operations		(3,141	)		281			(8,763	)		(2,025	)
Loss from discontinued operations		(41	)		(2,181	)		(486	)		(27,165	)
Gain on disposition of discontinued operations		—			—			2,303			—
Net loss		(3,182	)		(1,900	)		(6,946	)		(29,190	)
Convertible preferred stock dividends and related accretion		(1,324	)		(1,289	)		(5,244	)		(5,108	)
Net loss applicable to common stockholders	$	(4,506	)	$	(3,189	)	$	(12,190	)	$	(34,298	)
Basic and diluted net income (loss) per share applicable to common stockholders:
Continuing operations	$	(0.03	)	$	(0.01	)	$	(0.09	)	$	(0.05	)
Discontinued operations		(0.00	)		(0.01	)		0.01			(0.18	)
Basic and diluted net income (loss) per share applicable to common stockholders:	$	(0.03	)	$	(0.02	)	$	(0.08	)	$	(0.23	)
Shares used in calculation of net loss per share applicable to common stockholders:
Basic and diluted		154,053			152,844			153,369			151,952
(1) Includes stock-based compensation as follows:
Cost of revenue	$	44		$	34		$	181		$	144
Sales and marketing		387			388			1,736			758
Product and web site development		194			147			687			566
General and administrative		1,299			1,813			14,590			10,531
	$	1,924		$	2,382		$	17,194		$	11,999

MOVE, INC. CONSOLIDATED BALANCE SHEETS (in thousands)
	December 31, 2009			December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	106,847		$	108,935
Accounts receivable, net		10,782			12,833
Other current assets		12,101			11,399
Total current assets		129,730			133,167
Property and equipment, net		21,139			21,934
Long-term investments		111,800			111,800
Investment in unconsolidated joint venture		6,649			—
Goodwill, net		16,969			16,969
Intangible assets, net		3,460			3,933
Restricted cash		—			3,209
Other assets		1,548			995
Total assets	$	291,295		$	292,007
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,545		$	4,051
Accrued expenses		18,335			22,747
Obligation under capital leases		—			339
Deferred revenue		15,951			23,991
Line of credit		64,630			64,700
Total current liabilities		104,461			115,828
Other non-current liabilities		1,096			2,043
Total liabilities		105,557			117,871
Series B convertible preferred stock		111,541			106,297
Stockholders’ equity:
Series A convertible preferred stock		—			—
Common stock		156			153
Additional paid-in capital		2,112,613			2,094,135
Accumulated other comprehensive income		(17,116	)		(17,183	)
Accumulated deficit		(2,021,456	)		(2,009,266	)
Total stockholders’ equity		74,197			67,839
Total liabilities and stockholders’ equity	$	291,295		$	292,007

MOVE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
	Twelve Months Ended December 31,
	2009			2008
Cash flows from continuing operating activities:
Loss from continuing operations	$	(8,763	)	$	(2,025	)
Adjustments to reconcile loss from continuing operations to net cash provided by continuing operating activities:
Depreciation		10,494			11,246
Amortization of intangible assets		473			756
Provision for doubtful accounts		1,298			823
Gain on sale of assets		(1,185	)		(687	)
Stock-based compensation and charges		17,602			12,325
Impairment of long-lived assets		—			1,670
Earnings of unconsolidated joint venture		(149	)		—
Change in market value of embedded derivative liability		(600	)		(411	)
Other non-cash items		(171	)		651
Changes in operating assets and liabilities:
Accounts receivable		702			1,965
Other assets		26			(557	)
Accounts payable and accrued expenses		(2,016	)		(6,067	)
Deferred revenue		(8,059	)		(10,834	)
Net cash provided by continuing operating activities		9,652			8,855
Net cash used in discontinued operating activities		(1,894	)		(7,334	)
Net cash provided by operating activities		7,758			1,521
Cash flows from investing activities:
Purchases of property and equipment		(9,608	)		(5,935	)
Investment in joint venture		(6,500	)		—
Proceeds from sale of marketable equity securities		—			27
Purchases of short-term investments		—			(96,418	)
Maturities of short-term investments		—			96,918
Proceeds from sale of assets		1,370			206
Net cash used in investing activities of continuing operations		(14,738	)		(5,202	)
Net cash provided by investing activities of discontinued operations		1,739			813
Net cash used in investing activities		(12,999	)		(4,389	)
Cash flows from financing activities:
Proceeds from exercise of stock options		1,879			3,058
Proceeds from line of credit		—			64,700
Tax payment related to net share settlements of restricted stock awards		(1,064	)		—
Restricted cash		2,747			160
Principal repayments on line of credit		(70	)		—
Payments on capital lease obligations		(339	)		(1,828	)
Net cash provided by financing activities		3,153			66,090
Change in cash and cash equivalents		(2,088	)		63,222
Cash and cash equivalents, beginning of period		108,935			45,713
Cash and cash equivalents, end of period	$	106,847		$	108,935

MOVE, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURE OPERATING LOSS FROM CONTINUING OPERATIONS EXCLUDING STOCK-BASED COMPENSATION AND CHARGES, DEPRECIATION, AMORTIZATION, LITIGATION SETTLEMENT, RESTRUCTURING CHARGES, NON-RECURRING SEVERANCE COSTS AND IMPAIRMENT OF LONG LIVED ASSETS (EBITDA) (in thousands)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2009			2008			2009			2008
	(unaudited)						(unaudited)
Operating loss from continuing operations	$	(3,607	)	$	(283	)	$	(11,471	)	$	(8,254	)
Plus:
Stock-based compensation		1,924			2,382			17,194			11,999
Stock-based charges		31			109			408			326
Depreciation		2,641			2,811			10,494			11,246
Amortization of intangible assets		107			174			473			756
Litigation settlements		3,888			—			4,863			—
Restructuring charges		—			398			(1,192	)		4,412
Non-recurring severance costs		—			—			3,490			—
Impairment of long-lived assets		—			1,670			—			1,670
Adjusted EBITDA	$	4,984		$	7,261		$	24,259		$	22,155

MOVE, INC. OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE (in thousands)
	Three months ended
	December 31, 2009
	(unaudited)
	As Reported			Stock-based Compensation			Excluding Stock-Based Compensation
Revenue	$	49,638		$	—		$	49,638
Cost of revenue		11,033			(44	)		10,989
Gross profit		38,605			44			38,649
Sales and marketing		17,126			(387	)		16,739
Product and web site development		7,374			(194	)		7,180
General and administrative		13,717			(1,299	)		12,418
Amortization of intangibles		107			—			107
Litigation settlements		3,888			—			3,888
Total operating expenses		42,212			(1,880	)		40,332
Operating income (loss) from continuing operations	$	(3,607	)	$	1,924		$	(1,683	)
	Three months ended
	December 31, 2008
	(unaudited)
	As Reported			Stock-based Compensation			Excluding Stock-Based Compensation
Revenue	$	57,450		$	—		$	57,450
Cost of revenue		11,588			(34	)		11,554
Gross profit		45,862			34			45,896
Sales and marketing		22,263			(388	)		21,875
Product and web site development		5,832			(147	)		5,685
General and administrative		15,808			(1,813	)		13,995
Amortization of intangibles		174			—			174
Restructuring charges		398			—			398
Impairment of long-lived assets		1,670			—			1,670
Total operating expenses		46,145			(2,348	)		43,797
Operating income (loss) from continuing operations	$	(283	)	$	2,382		$	2,099

MOVE, INC. OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE (in thousands)
	Twelve months ended
	December 31, 2009
	(unaudited)
	As Reported			Stock-based Compensation			Excluding Stock-Based Compensation
Revenue	$	212,009		$	—		$	212,009
Cost of revenue		48,498			(181	)		48,317
Gross profit		163,511			181			163,692
Sales and marketing		78,062			(1,736	)		76,326
Product and web site development		27,832			(687	)		27,145
General and administrative		64,944			(14,590	)		50,354
Amortization of intangibles		473			—			473
Restructuring charges		(1,192	)		—			(1,192	)
Litigation settlements		4,863			—			4,863
Total operating expenses		174,982			(17,013	)		157,969
Operating income (loss) from continuing operations	$	(11,471	)	$	17,194		$	5,723
	Twelve months ended
	December 31, 2008
	(unaudited)
	As Reported			Stock-based Compensation			Excluding Stock-Based Compensation
Revenue	$	242,069		$	—		$	242,069
Cost of revenue		46,041			(144	)		45,897
Gross profit		196,028			144			196,172
Sales and marketing		93,531			(758	)		92,773
Product and web site development		26,342			(566	)		25,776
General and administrative		77,571			(10,531	)		67,040
Amortization of intangibles		756			—			756
Restructuring charges		4,412			—			4,412
Impairment of long-lived assets		1,670			—			1,670
Total operating expenses		204,282			(11,855	)		192,427
Operating income (loss) from continuing operations	$	(8,254	)	$	11,999		$	3,745

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