Indianapolis-based Angie’s List Inc. (Nasdaq: ANGI) is reporting second quarter net income of $4.8 million, compared to a net loss of $8.3 million during the same period the previous year. The results comes just weeks after the company announced it has dropped the paywall for online reviews nationwide.
Chief Executive Officer Scott Durchslag says Angie’s List has seen an "extraordinary re-acceleration" in new member registrations since dropping the paywall. The company says new member signups have increased 411 percent compared to the same period last year.
"The launch results have been excellent and have exceeded the already strong results we had previously reported in the pilot freemium markets that we began testing in January," said Durchslag. "Since dropping the reviews paywall, we have added approximately 700,000 new members as of yesterday, fueling year on year growth in new member engagement and service provider profile views. That said, while we are confident that these increases will create incremental revenue, we have more work to do to drive revenue growth from these changes and are just beginning to realize the potential of our new business model."
Earlier this month, Durchslag said dropping the review paywall nationwide will make the platform "meaningful to a whole new generation of consumers." The earnings report continues the positive trend for the company, which reported its first full-year profit in February