REIS, INC (REIS, Financial) filed Quarterly Report for the period ended 2010-09-30.
Reis, Inc has a market cap of $75.5 million; its shares were traded at around $7 with and P/S ratio of 2.4. REIS is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Analyzing deferred revenue can provide additional insight into Reis Services s financial performance. Deferred revenue, as reported on the consolidated balance sheet, represents revenue from annual or longer term contracts for which we have billed and/or received payments from our customers related to services we will provide in the future. It does not include future revenue under non-cancellable contracts for which we do not yet have the contractual right to bill. Deferred revenue is recognized as revenue ratably over the life of a contract. Because a greater percentage of renewals occur in the fourth quarter of each year, deferred revenue at September 30, 2010 is better compared to deferred revenue at September 30, 2009 rather than to the balance at December 31, 2009. Deferred revenue was approximately $10,275,000 and $9,912,000 at September 30, 2010 and 2009, respectively, an improvement in deferred revenue of $363,000. Deferred revenue plus currently non-billable amounts, as described above, aggregated approximately $21,956,000 and $19,106,000 at September 30, 2010 and 2009, respectively, an improvement of $2,850,000. These increases are the result of an improved sale environment for renewals, increased new business and the signing of more multiyear contracts.
EBITDA decreased $146,000 and $1,246,000 from the three and nine months ended September 30, 2009 to September 30, 2010 as a result of (1) cost increases, primarily in sales and marketing expenses for increases in commissions in 2010 over 2009, (2) salary and benefit increases in 2010 from hiring for product development and enhancement initiatives, (3) wage increases for existing employees, (4) a modest increase in the bad debt reserve in 2010, (5) increased marketing expenses related to our ReisReports offering and (6) the continuing increase in the cost of employee benefits, primarily for medical insurance. EBITDA for the third quarter of 2010 improved $110,000 on a sequential quarterly basis. This increase was the result of expense declines in the third quarter as compared to the second quarter of 2010, primarily from a lower bad debt expense in the third quarter.
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Reis, Inc has a market cap of $75.5 million; its shares were traded at around $7 with and P/S ratio of 2.4. REIS is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Reis s data is available to customers in five primary ways: (1) annual and multi-year subscriptions to Reis SE; (2) capped subscriptions allowing customers to download a limited number of reports; (3) online single report credit card purchases; (4) custom data requests; and (5) monthly subscriptions to ReisReports, charged to a credit card. Annual subscription fees for Reis SE range from $1,000 to over $600,000, depending on the combination of markets, property types and reports subscribed to, for which the customer is typically allowed to download an unlimited number of reports over a 12-month period. Capped subscriptions generally range from $1,000 to $25,000 and allow clients to download a fixed retail value of reports over a 12-month period. Individual report sales typically range from $150 to $695 per report and are available to anyone who visits Reis s retail web site or contacts Reis via telephone, fax or email. However, certain reports are only available by a subscription or capped subscription account. Custom data deliverables range in price from $1,000 for a specific data element to hundreds of thousands of dollars for custom portfolio valuation and credit analysis. Renewals are negotiated in advance of the expiration of an existing contract. Important factors in determining contract renewal rates include a subscriber s historical and projected report consumption. The monthly fee for ReisReports is $75 or $125 depending on the package chosen by the subscriber.Analyzing deferred revenue can provide additional insight into Reis Services s financial performance. Deferred revenue, as reported on the consolidated balance sheet, represents revenue from annual or longer term contracts for which we have billed and/or received payments from our customers related to services we will provide in the future. It does not include future revenue under non-cancellable contracts for which we do not yet have the contractual right to bill. Deferred revenue is recognized as revenue ratably over the life of a contract. Because a greater percentage of renewals occur in the fourth quarter of each year, deferred revenue at September 30, 2010 is better compared to deferred revenue at September 30, 2009 rather than to the balance at December 31, 2009. Deferred revenue was approximately $10,275,000 and $9,912,000 at September 30, 2010 and 2009, respectively, an improvement in deferred revenue of $363,000. Deferred revenue plus currently non-billable amounts, as described above, aggregated approximately $21,956,000 and $19,106,000 at September 30, 2010 and 2009, respectively, an improvement of $2,850,000. These increases are the result of an improved sale environment for renewals, increased new business and the signing of more multiyear contracts.
EBITDA decreased $146,000 and $1,246,000 from the three and nine months ended September 30, 2009 to September 30, 2010 as a result of (1) cost increases, primarily in sales and marketing expenses for increases in commissions in 2010 over 2009, (2) salary and benefit increases in 2010 from hiring for product development and enhancement initiatives, (3) wage increases for existing employees, (4) a modest increase in the bad debt reserve in 2010, (5) increased marketing expenses related to our ReisReports offering and (6) the continuing increase in the cost of employee benefits, primarily for medical insurance. EBITDA for the third quarter of 2010 improved $110,000 on a sequential quarterly basis. This increase was the result of expense declines in the third quarter as compared to the second quarter of 2010, primarily from a lower bad debt expense in the third quarter.
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