Angie’s List Loss Narrows
Indianapolis-based Angie's List Inc. (Nasdaq: ANGI) is reporting a third quarter loss of $5.2 million, compared to a $13.5 million loss in the same period last year. Chief Executive Officer Bill Oesterle says revenue increased 24 percent, but there is still has “opportunity for further improvement.” Last week, the company announced $40 million expansion plans that include adding 1,000 workers in Indianapolis. October 22, 2014
INDIANAPOLIS, Ind. – Angie's List, Inc. (Nasdaq:ANGI) announced today financial results for the quarter ended September 30, 2014.
“We continue to add new members and grow revenue while we transition our business to a marketplace model,” said Angie's List CEO Bill Oesterle. “Margins improved significantly as we reduced our marketing spend and improved operating efficiency. While we made strides executing on our marketplace, we see opportunity for further improvement.”
Market Cohort Analysis
“Penetration rates in each of our cohorts and total average revenue per member continue to grow, reflecting the strength and stability of the model,” continued Oesterle. “Combined with improved operating margins, these strong results provide the foundation for investment in new growth.”
Third Quarter Results
Total revenue for the third quarter of 2014 was $81.3 million, an increase of 24 percent compared to the prior year period. Membership revenue in the third quarter of 2014 was $18.3 million, an increase of 7 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $63.0 million for the quarter, representing a 30 percent growth rate year over year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $56.0 million in the third quarter of 2014, an increase of 33 percent compared to the prior year period, and e-commerce revenue was $7.0 million, an increase of approximately 9 percent year over year.
Marketing expense decreased 20 percent, or $5.7 million, compared to the prior year period. Net loss for the quarter was $5.2 million, with selling expense of $32.1 million and marketing expense of $22.5 million, compared to a net loss of $13.5 million, with selling expense of $24.0 million and marketing expense of $28.2 million, in the prior year period. Adjusted EBITDA loss, a non-GAAP financial measure, was $1.3 million for the period as compared to a loss of $11.3 million in the prior year period.
Cash used in operations for the third quarter was approximately $9.6 million. At September 30, 2014, the balance of cash, cash equivalents and investments was $79.1 million.
Conference Call Information
The Company will host a conference call on October 22, 2014 at approximately 8:30 AM (ET) / 5:30 AM (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 13194470 through October 28, 2014.
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 facilitate happy transactions between nearly 3.0 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.