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Indianapolis-based Angie's List Inc. (Nasdaq: ANGI) Chief Executive Officer Bill Oesterle says the online service review company has notched the best net income for any quarter in its 20-year history. Angie's List is also reporting its second consecutive quarterly profit. During an investor conference call this morning, Oesterle added the company is still "evaluating alternatives" to a proposed $40 million headquarters expansion. Angie's List put the project on hold last month in response to the signing of the Religious Freedom Restoration Act. April 22, 2015
INDIANAPOLIS, Ind. - Angie's List, Inc. (NASDAQ: ANGI) announced today financial results for the quarter ended March 31, 2015.
"We had a positive start to the year," said Angie's List CEO Bill Oesterle. "We strengthened the foundation of our marketplace by adding inventory and growing gross merchandise value. Further, we improved our efficiency with respect to membership acquisition, enhanced service provider sales efficiency and delivered leverage in key expense line items."
Market Cohort Analysis
"The strength of our business model lies in our ability to increase profitability as markets mature," continued Oesterle. "That is playing out as expected and contributes to our outlook for continued margin growth over time."
First Quarter Results
Total revenue for the first quarter of 2015 was $83.5 million, an increase of 15 percent compared to the prior year period. Membership revenue in the first quarter of 2015 was $17.3 million, a decrease of 5 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $66.2 million for the quarter, representing a 22 percent growth rate year over year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions.
Marketing expense decreased 31 percent, or $7.2 million, compared to the year-ago period. Net income for the first quarter was $4.4 million, with selling expense of $28.6 million and marketing expense of $16.3 million, compared to a net loss of $3.8 million, with selling expense of $26.1 million and marketing expense of $23.5 million, in the year-ago period. Adjusted EBITDA, a non-GAAP financial measure, was $8.6 million for the period as compared to a loss of $0.6 million in the year-ago period.
Cash provided by operations for the first quarter was approximately $21.2 million. At March 31, 2015, the balance of cash, cash equivalents and investments was $77.5 million.
The Company's expectations with respect to revenue and adjusted EBITDA for the full year 2015 are as follows:
Revenue of $357 million to $363 million
Adjusted EBITDA of $30 million to $32 million
These expectations represent a confirmation of the previously announced 2015 revenue and adjusted EBITDA guidance.
Conference Call Information
An audio replay will be available at (855) 859-2056 domestically or (404) 537-3406 internationally, using Conference ID 16956922 through April 28, 2015.
About Angie's List
Angie's List helps facilitate happy transactions between more than three million consumers nationwide and its collection of highly-rated service providers in 720 categories of service, ranging from home improvement to health care. Built on a foundation of authentic reviews of local service, Angie's List connects consumers directly to its online marketplace of services from member-reviewed providers, and offers unique tools and support designed to improve the local service experience for both consumers and service professionals.
Source: Angie's List Inc.