Boston, MA 02/14/2014 (wallstreetpr) – Real estate search Engine mogul Trulia Inc. (NYSE:TRLA) posted mixed financial results for its fourth quarter that did not beat consensus estimates but provided a positive outlook for 2014 fiscal year. The results did not go well with analysts at Wall Street as the company’s stock plummeted immediately after the announcement dropping down by 15% to lows of $31 a share. Trulia competitor Zillow Inc. (NASADQ:Z) had earlier reported earnings that beat analyst’s expectation thus the reason why Trulia stock plummeted in the active trading session.
Trulia Inc. (NYSE:TRLA) cited the drop in quarterly profits to a jump in marketing expenses that affected its cash balances but later reiterated it was at the peak of the matter to instigate campaigns aimed at attracting more customers especially those using mobile devices. Chief financial officer Sean Aggarwal was quoted on the conference call as saying “We anticipate the campaign to commence in late first quarter and to be in approximately $45 million investment over the course of the year”. Trulia Inc. (NYSE:TRLA) intends to boost marketing strategies in all its major fields as tries to improve its numbers in terms of customer to boost its profit margins.
Trulia financial outlook
It was not the best of quarters financially, as the company recorded net losses amounting to $11.1 million or $0.3 a share up from losses of $1.6 million that was recorded in 2012 same quarter. The company revenue for the quarter was a heavy hitter as it doubled from lows of $20.6 million recorded in 2012 same quarter to highs of $49.7 million.
Trulia Inc. (NYSE:TRLA) was heavily hit by the increase in its expenditure which tripled to clock highs of $60.3 million in the quarter alone with its sales and marketing also doubling to reach highs of $25.6 million. Trulia unique visitors for the quarter soared by 49% for the quarter to reach highs of 35.3 million.
Trulia Q1 guidance
Trulia Inc. (NYSE:TRLA) through its guidance expects to record first quarter revenues of the range $53.1-$53.5 million at the back of full year revenue of between $245 and $248 million. This is positive news considering it is in line with consensus estimates of $ $53.3 million for the first quarter and $246.3 million revenue for the full year. The company’s revenue growth for the full year implies a 72% growth at the midpoint with an estimated EBITDA growth of $18 -$22million.
