Angie's List Post Quarterly LossPosted: Updated:
Indianapolis-based Angie's List Inc. (Nasdaq: ANGI) is reporting a third quarter loss of $13.5 million, compared to a loss of $18.5 million for the same period a year earlier. The company says revenue increased 56 percent. October 23, 2013
INDIANAPOLIS, Oct. 23, 2013 -- Angie's List, Inc. (Nasdaq:ANGI) announced today third quarter 2013 financial results for the quarter ended September 30, 2013.
"Our third quarter growth was driven by solid results across our key operating metrics," said Angie's List CEO Bill Oesterle. "We added a record number of new members while making significant investments in the business."
Third Quarter Results
Third quarter 2013 total revenue was $65.5 million, an increase of 56 percent compared to $42.0 million in the prior year period. Membership revenue in the third quarter of 2013 was $17.1 million, an increase of 34 percent compared to the prior year period. Service provider revenue was the largest component of total revenue at $48.4 million and the fastest growing with a 66 percent growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $42.0 million in the third quarter of 2013, an increase of 65 percent compared to the prior year period and e-commerce revenue was $6.4 million, an increase of 70 percent year-over-year.
Marketing expense increased 8 percent, or $2.1 million, compared to the prior year period. Net loss was $13.5 million, with selling expense of $24.0 million and marketing expense of $28.2 million, compared to a net loss of $18.5 million with selling expense of $16.2 million and marketing expense of $26.1 million in the prior year period. Adjusted EBITDA loss, a non-GAAP financial measure, was $11.3 million, compared to a loss of $16.5 million in the prior year period.
"We remain focused on producing strong unit economics and are pleased with our continued leverage improvement and solid cash position," said Tom Fox, Angie's List CFO. "In addition, we are quite encouraged by the growth we recorded from our e-commerce offerings during the third quarter."
The Company's financial and operating expectations for the fourth quarter of 2013 are as follows:
• Total revenue in the range of $68.0 million to $69.0 million.
• Marketing expense in the range of $10.7 million to $11.7 million.
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.