2. Safe Harbor: This p g g
presentation contains forward-looking statements relating to our
anticipated plans, products, services and financial performance. These statements
are not guarantees of future performance and it is important to remember that our
actual results may differ – and may differ in a material way – from these forward-
looking statements. In addition to the factors that we mention today, additional factors
g y,
that could affect our actual results can be found in our 2008 Annual Report on Form
10-K and our most recent Form 10-Q filed with the Securities and Exchange
Commission. The forward-looking statements are made as of today’s date and we
assume no obligation to update any such statements to reflect events or
g p y
circumstances after today’s date.
Reg G: This presentation includes Adjusted EBITDA, which is a “non-GAAP” financial
measure. You can find a reconciliation of net income, the most comparable GAAP
p
measure to Adjusted EBITDA, in our Forms 8-K relating to our recent earnings
releases which have been furnished to the Securities and Exchange Commission and
are available under the investor relations section of our website, located at
www.MarketLeader.com.
2

3. Market Leader provides leading real estate
MkLd id l di l
professionals with innovative marketing and
technology solutions that enable them to grow
and manage their business.
and manage their business
3

4. • Ten year old company ‐ founded by 2nd generation Realtor
T ld f d db 2 ti R lt
• Pioneer of lead generation and cultivation
• Disciplined, results driven marketing solutions
• Historical focus on agent customer
Historical focus on agent customer
• Acquired RealtyGenerator to expand focus to brokerages
• A leading marketing partner to the real estate industry with
thousands of real estate professional customers
4

5. • HouseValues
– Pioneered real estate lead generation in 1999
– Guaranteed, exclusive seller leads via www.housevalues.com
• JustListed
– Launched in 2004
– Guaranteed, exclusive buyer leads via www.justlisted.com
• Comprehensive business systems for agents
Cost effective TV and Internet advertising for agents
–
Combine leads with tools & training to convert them into clients
–
Disciplined, results driven approach to marketing
Disciplined, results‐driven approach to marketing
–
Leading lead generation products in real estate
– 5

6. 6

7. • Response‐Generating Website
– Optimized to generate new prospects
• Powerful Contact Management Solution
Powerful Contact Management Solution
– Unprecedented insight into consumer behavior
– Cultivate prospects into clients
• Competitive Edge Through Advertising
– N ti
National buying power
lb i
– Real estate advertising leadership
7

8. 8

9. houses for sale in bellevue washington
9

10. 10

11. 11

12. 12

13. 13

14. Contact
Information
Email
Email
History
Prospect
Reminders
Realtor
Comments
14

15. 15

16. 16

17. 17

18. 18

19. 19
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20. 20

21. 21

22. 22
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23. 23

24. 24

25. For Consumers
•
– Instant gratification with the real time information
Instant gratification with the real‐time information
– Consistent and ongoing follow‐up
For Professional Customers
•
Advertising spend builds personal brand and generates prospects
–
Engaged prospects on personally branded website
–
Integrated CRM provides unprecedented consumer visibility
–
Customizable offerings with pricing flexibility
–
For Market Leader
•
Serving 3 distinct customer segments with single product platform
Serving 3 distinct customer segments with single product platform
–
Combines SaaS and agency business models
–
Enhanced CRM drives retention and lifetime value
–
Aligns value proposition with value added
Aligns value proposition with value added
–
Back‐office enables operational efficiencies & innovation
– 25

27. 2009 Q1 2008 2007 2006
Seasonally Adjusted Annualized
4.6 4.9 5.7 6.5
Existing Home Sales (M) (ending)
Existing Home Sales (M)
Revenue ($M) $6.5 $38.4 $59.8 $85.8
(Continuing Operations)
Average Headcount
Average Headcount 157 193 384 525
(Beginning + Ending / 2)
Revenue per Employee $166K $199K $156K $164K
(Annualized)
Net (Loss) Income ($M)
( ) ($ ) ($2.9) ($13.1) ($12.6) $3.3
(Continuing Operations)
Adjusted EBITDA ($M) ($0.9) $1.1 $2.6 $10.5
(Continuing Operations)
27

28. gg
Balance Sheet Highlights
Mar Dec Dec
2009 2008 2007
($ in Millions)
Cash and investments $57.1 $58.6 $62.9
Net Intangibles $3.7 $4.2 $10.2
Total Assets $66.5 $69.4 $85.0
Total Liabilities
T t l Li biliti $3.8
$3 8 $4.6
$4 6 $8.5
$8 5
Shareholders’ Equity $62.7 $64.8 $76.4
28

29. • Disciplined expense management
Disciplined expense management
• $57 million in the bank
• Opportunistic corporate development
• Broadened market opportunity
market opportunity
• Next generation product offerings
• Enhanced business model
• Repositioned as Market Leader
Repositioned as Market Leader
29