Exhibit 99.1
Exhibit 99.1
HomeAway Investor Presentation
August 2012
Safe Harbor Statement
This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management as well as illustrations or examples that appear to show predictions of future results. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth and sales opportunities, potential market opportunities, the effects of competition and the effects of tiered pricing.
Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. You should reach our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 29, 2012, our Proxy Statement filed with the SEC on April 27, 2012 and our latest Quarterly Report on Form 10-Q filed with the SEC on August 3, 2012 completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
© Copyright 2012 HomeAway, Inc. 2
Our Mission
To make every vacation rental in the world available to every traveler in the world through our online marketplace
Vacation Rental Owners/Managers
To be their most effective marketing partner and #1 source of bookings
Travelers
To make finding, selecting and renting a vacation home as easy as booking a hotel
© Copyright 2012 HomeAway, Inc. 3
The World’s Largest Vacation Rental Marketplace
Key Facts
Headquartered in Austin, TX 168 countries, 16 languages 1,116 employees1 ~735,000 listings2
Revenues Revenues
($MM)
230
168
120
82
54
18
2006 2007 2008 2009 2010 2011
Simple Business Model
Owners/managers pay ~$300 to list properties Free for travelers ~90% annual subscription revenues
Free Cash Flow
($MM) 64
51
34 32
24
(1)
2006 2007 2008 20093 2010 2011
1 As of 6/30/2012
2 Paid vacation rental listings as of 6/30/12
3 Includes Headquarter CapEx of $4.9MM
© Copyright 2012 HomeAway, Inc. 4
Why Invest in HomeAway?
Large, highly fragmented vacation rental industry presents huge opportunity
Clear market leader with powerful global footprint
Compelling value proposition for vacation rental owners/managers and travelers
Strong network effects and significant competitive advantages
Rapidly growing, highly predictable and profitable subscription-based business model
Industry disruption provides numerous growth opportunities
© Copyright 2012 HomeAway, Inc. 5
Transforming an $85Bn, Highly Fragmented Industry
19.6MM Vacation Homes
US and Europe
Rented
6.1MM
Not HomeAway
Rented Listings
13.5MM (735K)1
Number of Properties
US and Europe
6.1 Million
0.2 Million
Vacation Hotels
Rentals
1 Global paid vacation rental listings as of 6/30/2012
2 According to November 2010 Radius Global Market Research survey titled “Market Sizing Study”
6.1MM Properties x 16 Average Weeks Rented per Year x $882 Average Rental Rate
~$85 Billion2
Highly Fragmented Supplier Base Ideal for Market Maker
© Copyright 2012 HomeAway, Inc. 6
Platform Player With Significant Addressable Market
Key Players in Value Chain
Vacation Rentals
Hotels
Supply
Services
Demand
Take Rate
HomeAway Addressable Market
~15%
<3%
$85 Billion Industry x 10% Take Rate
$8.5 Billion
© Copyright 2012 HomeAway, Inc. 7
Outstanding Value Proposition for Owners/Managers
Outstanding Value Creation
~40x: ~$13,000
Estimated ROI for
Owners/Managers
~$3361
Annual Listing Fee Estimated Annual
Rental Income
Strong Growth in Listings2
(000’s) 640
517
433
338
2008 2009 2010 2011
1 As of 6/30/2012
2 Paid vacation rental listings as of 12/31 each year
© Copyright 2012 HomeAway, Inc. 8
Compelling Value Proposition for Travelers
“A greatly increased use of apartments and vacation homes in place of standard hotels is the most pronounced trend in travel…” Arthur Frommer, December 13, 2010
Example: Vacation Rental Hotel
Family Trip
to Disney
4 bedroom house in Orlando Hyatt Regency, Orlando
3,000 sq.ft. plus private pool 400 sq.ft., 2 beds, 1 bath
$214/night or $1,500/week $300/night or $2,100/week
Wider Selection
Lower Total Cost
Additional Space
Increased Privacy
Multiple Bedrooms
Multiple Bathrooms
Personal Kitchen
Common Living Areas
Private Swimming Pools
© Copyright 2012 HomeAway, Inc. 9
Global Vision and Platform
Travel is a Global Experience for Consumers
168 countries with vacation rentals 19 countries with dedicated 8 countries with
listed on HomeAway websites HomeAway websites HomeAway offices
Market Leader
U.S. ?Germany ?Spain ?France ?U.K. ?Italy ?Brazil
International HomeAway Websites
United Kingdom Canada Spain Argentina Brazil
Sweden Austria Finland France Australia
Portugal India Italy Norway Columbia
Denmark Germany Mexico The Netherlands
© Copyright 2012 HomeAway, Inc. 10
Proprietary, Trusted Platform
Commitment to Trust & Security
3381 customer service personnel
Proprietary mix of cutting-edge technology and business processes
1 |
| As of 6/30/2012 |
© Copyright 2012 HomeAway, Inc. 11
Network Effect is the Greatest Competitive Advantage
Global Presence
Trust and Security
Product and Technology Innovation
Marketing
© Copyright 2012 HomeAway, Inc. 12
Multiple Growth Drivers
Increase Number of Listings
Through…
Best User Experience Awareness Marketing Property Manager Channel New Geographies New Market Segments
x
Increase Revenue Per Listing
Reflected in…
Average Revenue Other per Listing Revenue
??Base Price ??Online Payments
??Market-Based / ??Online Bookings Tiered Pricing ??Traveler Products
??Cross-selling / add-ons
??Geographic Bundles
© Copyright 2012 HomeAway, Inc. 13
Tiered Pricing Illustration
GAAP time lag
Current position
Current position
All Other
AB, HR, FEWO
VRBO
GAAP time lag
© Copyright 2012 HomeAway, Inc. 14
A Closer Look at Tiered Pricing….
Reduction in discounts is part of the Q2 story, but Tiered Pricing continues to be the main growth driver
Q2 2012 Growth Waterfall
Q2 201118% 3% 5% 20% Q2 2012
TP Other Add-ons Discounts
The impact of Tiered Pricing alone in Q2 was 18%, an update from the 21%figure discussed on our Q2 ‘12 earnings call. Based on the revised calculation, ASP growth of ~20% was positively impacted by a decline in discounts in Q2 ‘12 due to lapping last year’s anniversary campaign.
We expect overall ASP to continue to increase given: • low current penetration of Tiered Pricing;
more full-year sales as we lap a complete year; and
upcoming base & tier price increases.
These factors will continue to offset lower adoption of other add-on products Discounts are more variable as we use them to drive new and renewal listings.
© Copyright 2012 HomeAway, Inc. 15
Payments and Ancillary Products Illustration
© Copyright 2012 HomeAway, Inc. 16
Delivering Against Long-Term Strategy
Phase I = ‘05-’10 Consolidation
Phase II = ‘07-’11 Professionalization
World-Class Capabilities Operations
General management
SEO
Marketing
Sales
M&A
Customer service
Product
Agile development
Global teams
Secure IT
Stable Profit Model
Non-cyclical
Disciplined approach to adding cost
Phase III = Now Optimization
Single Network
World-Class User Experience
e-Commerce
Phase IV = Future Going Mainstream
The catalyst for the travel industry’s #1 consumer trend
Marketing Leadership: viral/social, broad reach, and nontraditional
Supply Leadership: migrating offline renters online
Future Monetization Opportunities
Price-to-value
Regional/global distribution packages
Payments and online booking
Traveler products such as insurance
OTA distribution
© Copyright 2012 HomeAway, Inc. 17
World-Class Management Team and Investors
Highly Experienced Management Team Previous Experience
Brian Sharples Co-founder, President &
Chief Executive Officer
Carl Shepherd Co-founder,
Chief Strategy Officer
Lynn Atchison Chief Financial Officer
Brent Bellm Chief Operating Officer
Tom Hale Chief Product Officer
Ross Buhrdorf Chief Technology Officer
Blue-Chip Investors
© Copyright 2012 HomeAway, Inc. 18
Predictable, Profitable, Cash-Rich Business Model
Predictable Profitable Free Cash Flow
Subscription-Based Revenue Model High Renewal Rates (75%+)
Leveraged Cost Structure
High Degree of Control over Margins
Annual Up-front Cash (~90%) Low Capital Expenditures
© Copyright 2012 HomeAway, Inc. 19
Strong and Consistent Revenue Growth
Revenue
($MM)
80
70
60
50
40
30
20
10
0
2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 3Q’11 4Q’11 1Q’12 2Q’12
© Copyright 2012 HomeAway, Inc. 20
Recurring and Diversified Revenue Streams
Subscription-Driven 1 Strong Renewal Globally Diversified 1 2
76% 77% Rest of World
Other 74% 73% 2%
16% Europe
38%
60%
84%
Listings 2008 2009 2010 2011 United States
1 As of 6/30/2012
2 Based on revenues from our current portfolio of websites in 19 countries
3 Includes Brazil and Australia
© Copyright 2012 HomeAway, Inc. 21
Highly Efficient Operating Model with Strong Cash Flows
Adjusted EBITDA
($MM)
? High EBITDA margins
? Operating leverage from scale
? Efficient operating expenses
66.8
43.2
34.8
24.8 30.6 28.4
2008 2009 2010 2011 6 MOS. 6 MOS.
2011 2012
Margin: 32% 30% 25% 29% 26% 26%
1 |
| 2009 CapEx includes Leasehold Improvement Additions (Headquarter CapEx) of $4.9MM |
Free Cash Flow
($MM)
? Seasonality
? Best financial indicator
? Low capital expenditures
64.0
51.5
46.2
33.9 32.3 35.0
2008 2009 2010 2011 6 MOS. 6 MOS.
2011 2012
CapEx: $4.5 $12.61 $10.4 $13.0 $5.8 $11.3
© Copyright 2012 HomeAway, Inc. 22
Average Revenue per Listing Trend
Influenced by…
Pricing changes
Entry into new markets
Short season products
Revenue recognition policy
FX
© Copyright 2012 HomeAway, Inc. 23
Why Invest in HomeAway?
Large, highly fragmented vacation rental industry presents huge opportunity
Clear market leader with powerful global footprint
Compelling value proposition for vacation rental owners/managers and travelers
Strong network effects and significant competitive advantages
Rapidly growing, highly predictable and profitable subscription-based business model
Industry disruption provides numerous growth opportunities
© Copyright 2012 HomeAway, Inc. 24