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WIKI ANALYSIS
Loopnet, Inc. owns and operates LoopNet.com, an online marketplace for commercial real estate. The LoopNet marketplace has about 750,000 listings and about 900,000 unique users visit the site each month.[1]
Business Overview
LOOP's business model relies on subscription fees to drive revenue growth.
Business & Financial Metrics[2]
In 2009, LOOP generated a net income of $11.5 million on $76.5 million in total revenues. This represents a 37.0% drop in net income on a 11.1% decrease in total revenues from 2008, when the company earned $18.3 million on $86.1 million in revenues.
Business Segments[3]
LOOP operates through a single business segment that runs its online marketplace for commercial real estate. Essentially all of LOOP's business occurs within the United States and the company has no assets in foreign countries.
Key Trends & Forces
CoStar Lawsuit[4]
In 2009, LoopNet won a lawsuit against competitor CoStar. CoStar had been hiring employees to run thousands of searches on LoopNet's website for the purpose of data mining and mapping LoopNet's listings so that CoStar could replicate them on its own site. Because LoopNet's Terms of Use agreement prohibit the use of its data by competitive services, the court refused to grant CoStar the right to use LoopNet's data.
Competition[5]
LOOP's primary competition comes from traditional real estate brokerages that rely on printed information. The company also competes with CoStar Group (CSGP), which provides information, research, and marketing for the commercial real estate market.
References
- ↑ LOOP 2009 10-K pg. 4
- ↑ LOOP 2009 10-K pg. 28
- ↑ LOOP 2009 10-K pg. 60
- ↑ LoopNet Announces Significant Legal Victory in Lawsuit Against CoStar Group. Business Wire (July 23, 2009).
- ↑ LOOP 2009 10-K pg. 12
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