HomeAway Inc (NASDAQ:AWAY) Q4 2014 Earnings Conference Call - Final Transcript

Feb 24, 2015 • 04:30 pm ET


HomeAway Inc (NASDAQ:AWAY) Q4 2014 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Greetings and welcome to the HomeAway Inc. Fourth Quarter and Full Year 2014 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions)

I would now like to turn the conference over to your host Jen Ford, Director of Investor Relations. Please go ahead, ma'am.

Jen Ford

Thank you and welcome to HomeAway's fourth quarter and full year 2014 financial results conference call.

By now, everyone should have access to the earnings press release, which was distributed today at approximately 4:00 PM Eastern Time. This call is being webcast and is available for replay.

In our remarks today, we will include statements that are considered forward-looking within the meaning of securities laws. In addition, management may make additional forward-looking statements in response to your questions.

(Forward-looking Cautionary Statements)

We have provided reconciliations of non-GAAP to GAAP measures in our earnings press release distributed earlier today, which is also available on the Investor Relations tab of www.homeaway.com. Unless otherwise stated, all growth metrics provided are reported on a year-over-year basis.

With that, I will hand the call over to HomeAway's Chief Executive Officer and Chairman, Brian Sharples. Brian?

Brian Sharples

Thank you, Jen. Good afternoon and thank you for joining us today. February marks HomeAway's 10th anniversary and I'm incredibly proud of what our extraordinary team has accomplished over the past decade. During that period, HomeAway has experienced consistent and impressive growth in both revenue and free cash flow doing what we do best bringing friends and families together in whole houses all over the globe.

To kick-off the next 10 years, yesterday we introduced some elements of our new global integrated marketing campaign, which brings to life the joy and spirit of what makes the HomeAway product offering so unique and special.

At the center of the campaign is our new brand platform, the whole house, the whole family or whole vacation. These words embody the core benefits upon which HomeAway and the Vacation Rental category were built. And they were carefully chosen to differentiate and highlight what we do best at HomeAway. We're very excited about this milestone and I'll elaborate on our marketing efforts in more detail in just a few minutes.

But first, let me update you on our financial results for this year. Both revenue and adjusted EBITDA exceeded our expectations despite significant FX headwinds late in the year, revenue of $447 million grew 29% year-over-year and adjusted EBITDA of just over $119 million grew 23%.

We continue to generate strong free cash flow which totaled $117 million for the trailing 12 months up 26% over last year. As a result, we ended the year with a healthy balance sheet that included $813 million in cash and short-term investments.

Turning to our operating metrics for the fourth quarter. At year-end, we had approximately 1,043,000 listings in our family of websites, up 17% year-over-year. We intentionally slowed listing growth during the quarter to absorb the high volume of listings