Homestore.com Revenue Surges in 4th Quarter

Homestore.com Inc. in Thousand Oaks reported a sharp rise in revenue for the second quarter ended June 30, and while it reported a loss for the period, officials said they expect the firm’s Web-based home and real estate network to reach profitability by the fourth quarter.

Revenue for the quarter increased 252% to $50.2 million, compared with $14.2 million for the second quarter of 1999. There was a 30% jump over revenue of $38.6 million reported for the first quarter of 2000.

The company reported a net loss of $2.8 million or 3 cents per share, but that excluded certain nonrecurring charges. When those charges were included, the loss was $24.7 million or 31 cents per share. That compares with a net loss of $20.9 million or 36 cents per share for the second quarter of 1999, and $10 million or 14 cents per share for the first quarter of 2000.

Increased revenue from both professional subscriptions and advertising drove overall revenue growth in the quarter. Officials said site usage also grew substantially during the three months.

“Based on the strength of our financial performance, we expect the company to reach cash profitability in the fourth quarter of this year, which will place Homestore.com in an elite group of Internet companies,” Chief Executive Stuart Wolff said.