Real estate brokerage company ZipRealty Inc. (NASDAQ: ZIPR) today announced a net loss of $1 million for the second quarter ended June 30, compared with a net loss of $200,000 in second-quarter 2006.
The quarterly results amount to a 5 cent loss per basic and diluted share, compared with a loss of 1 cent per basic and diluted share in the same quarter last year.
Despite its losses, the company is moving ahead with expansion plans and will enter the New York market by year-end, company President and CEO Pat Lashinsky said in a statement. “We were pleased to post solid results for the quarter in the current challenging residential real estate environment,” Lashinsky stated. He also stated that there is “record traffic and activity” at the company’s Web site.
The company plans to enter the Long Island and Westchester County markets in New York this year — the 10th and 11th new market areas for the company this year.
ZipRealty had net revenues of $31.3 million for the quarter, up 16 percent compared to net revenues for second-quarter 2006.
Company officials discussed the results during a 5 p.m. Eastern Time conference call on Tuesday. The company’s stock price per share closed at $6.01 on Tuesday, down 7 cents compared to the closing share price on Monday.
The company employed 2,070 agents as of June 30, up 24 percent compared to its agent count at the close of second-quarter 2006. ZipRealty’s value of real estate transactions closed climbed to $1.41 billion in second-quarter 2007, up 10.6 percent compared to second-quarter 2006.
Its number of transactions closed increased about 12.3 percent to 3,988 and average net revenue per transaction grew 3.7 percent to $7,649 compared to second-quarter 2006.
The company offered some financial guidance for the full year in the latest earnings announcement. The company expects a full-year net loss of $10 million to $13 million, and revenues are expected to range from $105 million to $110 million.
Average agent productivity is expected to be approximately 0.6 to 0.7 transactions per agent per month, with average net revenue per transaction of about $6,500 to $7,000.
A replay of the company’s earnings conference call is available through Aug. 14 by calling (888) 203-1112, password 8879004.
ZipRealty operates in 28 major markets in 17 states and the District of Columbia.
