For the comparable six-month period in 2008, the company saw consolidated revenues of $27.7 million. Most of the difference came from a 70% drop in residential sales, "which business we are in the process of exiting," the release states.
The bulk of the company's revenues this year have come from subscriptions to its information services. The overall renewal rate was 84% for the trailing 12 months ended June 30, compared to 87% for the trailing 12 months ended March 31 and 88% for the year ended Dec. 31, 2008.
"Declines in the renewal rates and the net effect of price increases and decreases upon renewals have negatively impacted revenue," according to the release. "During the past 12 months, contract price increases on renewals were constrained due to usage reductions at certain customers as well as budgetary pressures at our customers, predominantly in the banking industry, but also impacting other of our customers."
Lloyd Lynford, CEO of Reis, says in the release that it's "gratifying" to see that the performance and profitability of the subscription services have remained strong "at this comparatively late date in the cycle of US economic contraction." He adds, "We believe we have come through the worst and learned important lessons about our market, our products and what will be required to reinvigorate growth in 2010 and beyond. Our new product development pipeline is robust and geared towards both the market information and analytical needs of this multi-trillion dollar asset class. Reis management looks forward to facing off against the opportunity and potential competitors."
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
