HomeAway's Profits Increased 63% in Q3 As It Introduced New Business Model

HomeAway saw its net income rise 63% to $8.5 million in the third quarter as it officially launched its still-small pay per booking business model.

Its subscriptions-listings business model, though, will remain dominate for an extended period.

In the third quarter, listings revenue increased 23% to $75.5 million, or 83.8% of its $90.1 million in total revenue. Total revenue increased 23.3% in the quarter.

HomeAway's subscription renewal rate fell in the quarter to 71.7% in the third quarter, compared with 74.5% a year earlier. However, HomeAway stated the listings renewal rate was impacted by new plans to consolidate listings and to purchase bundles.

Without these changes, the third quarter renewal rate would have been 74.2%, which is basically flat with the year earlier period.

AWAY data by YCharts