Indianapolis-based Angie's List Inc. (Nasdaq: ANGI) is reporting a full-year loss of $32.9 million, compared to a loss of $52.9 million in 2012. For the fourth quarter, the online consumer review company is tallying a profit of $2.8 million, compared to more than $2.4 million for the same period a year earlier. Angie's List says quarterly revenue increased 49 percent. February 13, 2014
INDIANAPOLIS, Ind. – Angie's List, Inc. (Nasdaq:ANGI) announced today fourth quarter and fiscal year 2013 financial results for the year ended December 31, 2013.
“We are reporting a solid fourth quarter capping a year that included many significant milestones,” said Angie's List CEO Bill Oesterle. “We executed well on our strategic objectives in 2013, including making meaningful investments in our products and technology, strengthening our ability to monetize our membership through our marketplace initiatives and delivering excellent improvements in operating leverage.”
Market Cohort Analysis
“We recorded very good performance from each of our cohorts in 2013,”
continued Oesterle. “Each one demonstrated growing membership, deepening penetration rates and increasing contribution.”
Fourth Quarter Results
Fourth quarter 2013 total revenue was $68.8 million, an increase of 49 percent compared to $46.2 million in the prior year period. Membership revenue in the fourth quarter of 2013 was $17.7 million, an increase of 29 percent compared to the prior year period. Service provider revenue was the largest component of total revenue at $51.0 million, and the fastest growing with a 57 percent growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $45.0 million in the fourth quarter of 2013, an increase of 55 percent compared to the prior year period and e-commerce revenue was $6.0 million, an increase of 72 percent year-over-year.
Marketing expense increased 30 percent, or $2.7 million, compared to the prior year period. General and Administrative expense in the fourth quarter of 2013 includes a $4.0 million accrual for the pending settlement of certain litigation. Angie's List and Plaintiff have agreed in principle to settlement terms, which remain subject to court approval. Including the pending settlement accrual, net income was $2.8 million, with selling expense of $24.6 million and marketing expense of $11.6 million, compared to a net income of $2.4 million with selling expense of $15.6 million and marketing expense of $8.9 million in the prior year period. Adjusted EBITDA, a non-GAAP financial measure, was $9.9 million, compared to $4.4 million in the prior year period.
Fiscal Year 2013 Results
Fiscal year 2013 revenue was $245.6 million, an increase of 58 percent from $155.8 million in the prior year period. Membership revenue of $65.3 million increased 37 percent year-over-year and service provider revenue of $180.3 million increased 67 percent compared to the prior year period. Marketing expense increased 9 percent, or $7.3 million, over the prior year period while CPA decreased to $72 from $73. Total new gross paid memberships added in 2013 were 1,218,258 compared to adding 1,092,935 in 2012.
Net loss was $33.0 million for fiscal year 2013, with selling expense of $90.1 million and marketing expense of $87.5 million, compared to a net loss of $52.9 million with selling expense of $58.6 million and marketing expense of $80.2 million in the prior year period.
Adjusted EBITDA, a non-GAAP financial measure, was a loss of $18.9 million, compared to a loss of $45.3 million in the prior year period.
The cash and investments balance at December 31, 2013 was $55.9 million. In addition, we have $15.0 million of unused capacity on our line of credit.
“We made investments across the business in 2013 to grow our membership and service provider base and develop innovative products and tools to ease the challenges our members face in fulfilling their local service needs,” said Tom Fox, Angie's List CFO. “We are very pleased with our continued operating leverage progress and the significant improvement in our cash generation. Looking ahead, we will continue to invest to drive growth in the business with a keen focus on products that enhance the experience for both members and service providers.”
The Company's financial and operating expectations for the first quarter of 2014 are as follows:
— Total revenue of $71.5 million to $72.5 million.
— Marketing expense of $22.5 million to $23.5 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.