Angie's List Loss Narrows

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Indianapolis-based Angie's List Inc. (Nasdaq: ANGI) is reporting a second quarter net loss of $14.3 million, compared to a $23.4 million loss during the same period the previous year. Despite the loss, Chief Executive Officer Bill Oesterle says the company achieved record levels in revenue and new memberships.

July 24, 2013

News Release

Indianapolis, Ind. -- Angie's List, Inc. (Nasdaq:ANGI) announced today second quarter 2013 financial results for the quarter ended June 30, 2013.

"We are reporting record levels for memberships added, service provider revenue and total revenue, as well as continued efficiencies in our cost per member acquired," said Angie's List CEO Bill Oesterle. "We achieved these results while simultaneously improving our operating leverage and producing cash flow."

Market Cohort Analysis

"We recorded very good performance from each of our cohorts in the second quarter," continued Oesterle. "Each cohort recorded strong membership growth, higher penetration rates, and increasing average revenue per market and contribution."

Second Quarter Results

Second quarter 2013 total revenue was $59.2 million, an increase of 62 percent compared to $36.5 million in the prior year period. Membership revenue in the second quarter of 2013 was $15.9 million, an increase of 41 percent compared to the prior year period. Service provider revenue was the largest component of total revenue at $43.3 million and the fastest growing with a 72 percent growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $38.3 million in the second quarter of 2013, an increase of 76 percent compared to the prior year period and e-commerce revenue was $5.0 million, an increase of 44 percent year-over-year.

Marketing expense increased 1 percent, or $0.3 million, compared to the prior year period. Net loss was $14.3 million, with selling expense of $22.0 million and marketing expense of $28.0 million, compared to a net loss of $23.4 million with selling expense of $14.3 million and marketing expense of $27.6 million in the prior year period. Adjusted EBITDA loss, a non-GAAP financial measure, was $11.7 million, compared to a loss of $21.5 million in the prior year period.

"We achieved record results in our financial and operating metrics, highlighted by a 40 percent improvement in our operating leverage and continued cash generation," said Chuck Hundt, Interim Chief Financial Officer. "Our second quarter financial results, along with our strong operating metrics, demonstrate that our strategy continues to deliver growth and gives us confidence as we continue to invest in acquiring new members and advertising service providers and develop innovative products."

Business Outlook

The Company's financial and operating expectations for the third quarter of 2013 are as follows:

• Total revenue in the range of $65.5 million to $66.5 million.

• Marketing expense in the range of $28.1 million to $29.1 million.

Conference Call Information

The company will host a conference call on July 24, 2013 at approximately 5:00 PM (ET) / 2:00 PM (PT) to discuss the quarterly financial results with the investment community. A live webcast of the event will be available on the Angie's List Investor Relations website at http://investor.angieslist.com/

A live domestic dial-in is available at (877) 380-5664 or (253) 237-1143 internationally. An audio replay will be available at (855) 859-2056 domestically or (404) 537-3406 internationally, using Conference ID 12308006 through July 30, 2013.

Live audio webcast of the presentation will be available on the Angie's List Investor Relations website at http://investor.angieslist.com/

About Angie's List

Angie's List helps consumers have happy transactions with local service professionals in more than 720 categories of service, ranging from home improvement to health care. More than 2 million subscribers across the U.S. share their consumer experiences and use Angie's List to gain unlimited access to local ratings, exclusive discounts, the Angie's List magazine, the Angie's List complaint resolution service and information about how to make the most of their home improvement projects.

Source: Angie's List Inc.