Move Inc.’s third-quarter revenue growth drops to single digits amid market shift

Revenue at Realtor.com’s parent company, Move Inc, rose 5% year-over-year to $170 million in the fiscal third quarter. The decline in the number of referrals and leads was responsible for the slower growth.

Realtor.com parent company Move Inc. saw revenue increase in fiscal third quarter 5% year-over-year to $170 million on Thursdaymaking it the second consecutive quarter of single-digit gains in a changing real estate market.

Similar to the prior quarter, Realtor.com’s referral model and traditional lead generation products accounted for 85% of Move’s revenue (+7% YoY). The benchmark model, in particular, benefited from record average home values, as it generated 28% of Move’s total revenue in the third quarter of fiscal 2022, compared to 25% the previous year.

News Corp’s earnings are two quarters ahead of the rest of the industry as it operates on a fiscal calendar that runs from July 1 to June 30, the company said.

Robert Thompson

Despite slowing growth from the fourth quarter of fiscal 2021 and the first quarter of fiscal 2022, which saw revenue rise 68% and 30%, respectively, News Corp CEO Robert Thomson, said he is banking on Realtor.com’s ability to innovate and develop more products that serve consumer digital. real estate needs.

“The ebb and flow of market forces is not unusual, and we believe the opportunity for Realtor.com and News Corp has never been greater as the digitalization of the real estate market continues apace and current trends are likely to accelerate this development,” he said. said in a statement. “Our product innovation has accelerated, our scale has increased, and we are in the early days of venturing into relevant adjacencies with large addressable markets.”

Along with problems reviving its revenue near previous highs, in part due to a $3 million negative impact from Top Producer’s divestment, the portal has seen a decline in user activity.

According to internal data from Move, the average monthly number of Realtor.com unique users across its web and mobile sites decreased 3% year-over-year to 95 million. As a result, lead volume fell 22%, which Move says reflects “a still difficult comparison to the prior year, when lead volumes were up more than 40% year over year.” other “.

Moments after the earnings call, Realtor.com CEO David Doctorow published a long blog post focusing on how the portal helps consumers and real estate agents keep the “dream of home ownership alive” amid market headwinds.

“We’ve heard anecdotally from agents that their relationships with buying clients have changed dramatically in just a few years,” he said while mentioning that the site’s average number of monthly unique users had rebounded to 100. million in March. “Research that once took eight weeks can now take eight months or more.”

“Finding a home that’s right for you and your family can be an emotional journey at the best of times,” he added. “In today’s market, agents are becoming ad hoc personal advisors and even part of their clients’ extended family as they share what can be a roller coaster ride to home ownership.”

Doctorow said Realtor.com is focused on addressing affordability and inventory issues through several programs that help consumers access upfront payment assistance, financial coaching, and payment options. buying and selling alternatives through businesses through iBuyers and power buyers like Divvy Homes, which Realtor.com has a partnership with.

The portal also shared that it has partnered with the Homeownership Council of America’s Down Payment Assistance Fund to provide homeownership assistance to BIPOCs (Black, Native, and People of Color) and buyers. low to moderate income.

Realtor.com has already donated $100,000 and will match every donation to the fund through June 30, 2022, up to $100,000.

“In the face of these challenges, Realtor.com wants to help more people build wealth through homeownership, and we’re not alone,” Doctorow said. “Working with agents, brokers, lenders, builders and organizations committed to this cause, we will continue to innovate around solutions that bring people home.”

Overall, News Corp. for the quarter was $2.49 billion, a high for the third quarter of fiscal year and a 7% increase from the third quarter of fiscal 2021. The company’s EBITDA (profit before interest, taxes, depreciation and amortization) increased by 20% year-on-year. year to $358 million.

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