Homestore.com announced its first profit, with a net income of $554,000 for the third quarter, ended Sept. 30. Bolstered by continued growth in revenue, professional subscribers and unique visitors to its online home and real estate network, the company said revenue for the third quarter increased to $62.2 million, a 201% increase over pro forma revenue of $20.7 million for the third quarter of 1999. Net income for the third quarter was $554,000, compared to a net loss of $16.8 million for the third quarter of 1999 and a net loss of $2.8 million for the second quarter of 2000. "This quarter we joined an elite group of Internet companies that have achieved cash profitability,'' said Stuart Wolff, Homestore.com's chairman-CEO, in a statement. Growth in advertising revenue was primarily driven by an expansion in sponsorships and strategic alliances during the quarter, the company said. In January, Homestore
broke a $30 million campaign directed by Joe Pytka under the theme, "There's no place like home.'' The TV, print and radio effort, handled by TBWA/Chiat/Day
, Playa del Rey, Calif., ran in top national markets, including the West Coast and New York. While that spot still runs in selected markets, Homestore.com has shifted its marketing emphasis, concentrating instead on a multimillion-dollar strategic alliance with America Online, which opened the door to the launch of Homestore.com's content on AOL's House & Home Channel in early October.
Copyright October 2000, Crain Communications Inc.