While the housing market is going through its share of changes, the first three months of 2022 proved to be a boon for realtor.com® parent company, Move Inc., which saw its revenue climb amid a wave of momentum coming off of 2021.
According to its latest earnings report, The News Corp subsidiary reeled in $170 million during its fiscal third quarter—up slightly from the $162 million the company earned in the same period in 2021. The uptick in annual revenue was primarily attributed to an increase in the company’s referral and lead businesses amid the shifting housing market conditions.
“Affordability and supply, which are obviously related, remain issues for first-time buyers who also face an escalation in mortgage rates though, by historical standards, rates remain relatively low,” said News Corp CEO Robert Thomson in a recent earnings call, where the company also posted significant earnings increases during its fiscal third quarter.
News Corp’s earnings are two quarters ahead of the rest of the industry since they operate on a fiscal calendar from July 1 through June 30, the company explained.
“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 digitization of the property market continues at pace, and current trends are likely to expedite that evolution,” Thomson added.
News Corp earned $2.49 billion during the quarter—up 7% compared to the same period last year. Overall, its Digital Real Estate Services segment—which includes Move and realtor.com®—tallied a 19% revenue increase, while the segment’s EBITDA also expanded 17%.
Move’s referral business generated 28% of the company’s total revenue for the quarter and benefited from the surge in home values despite declining transaction volume.
“Despite the shifting market conditions, Move posted revenue growth in the third quarter, and our aim to be the digital marketplace for consumers and the industries is clearly paying dividends,” Thomson said, adding that the company’s average monthly unique users exceeded 100 million in March.
According to reports, revenue growth was partially offset by a $3 million negative impact from the divestiture of Top Producer.
Move also saw a 22% drop in lead volume, which the company attributed to “a continued tough comparison to the prior year when lead volumes increased over 40% year-over-year.”