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Angie’s List posts larger loss, but higher revenue

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Indianapolis-based Angie’s List Inc. reported its second quarterly results as a public company late Thursday afternoon, disclosing that it lost nearly $13.5 million in the first three months of 2012 on revenue of $31.1 million.

The per-share loss in the first quarter was 24 cents. In the same quarter a year earlier, the company lost $9.6 million, or 34 cents per share.

Analysts surveyed by Thomson Reuters had expected the provider of online consumer reviews to lose 25 cents per share.

Quarterly revenue increased 76 percent from a year earlier and paid members rose 81 percent, to 1.2 million.

The company reported marketing expenses in the latest quarter of $17.6 million, up from $11.1 million a year earlier.

Angie’s List is available in 175 U.S. markets. It entered 135 of those within the past three years, drving up expenses.

"As we continue to execute on our strategy, we plan to invest aggressively in our product, engineering and sales infrastructure to capitalize on our market opportunity," CEO Bill Oesterle said in a prepared statement.

The company, which provides reviews of plumbers, electricians and other service providers, hasn’t turned an annual profit since its founding 17 years ago.

Angie’s List staged its initial public offering in mid-November, raising $114 million. The company sold 8.8 million shares for $13 apiece. They stock traded as high as $18.75 on the opening day.

Shares closed Thursday at $13.88 each, down 8 cents on the day.
 

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  • Who cares...
    ... where they get all their money? As long as they, and market analysts, can tell you with a straight face that they'll be profitable someday soon, why wouldn't anyone want to buy this stock? What? Are we supposed to concern ourselves with government corruption, or be concerned that future administrations could tell them to buy their own office space?
  • P Stands for Pump
    Nice try at pumping the stock there, P. "Once they get established"?!?!?! Going on 19 years in business and nothing but losses to show for it. How much longer until "they get established"?

    I do, however, agree with you on one thing, they are getting a boatload of tax dollars to keep their sinking ship afloat. Ask Mitch if that has anything to do with his former campaign finance chairman being a founding member / major shaeholder.
  • Here's the deal.
    Don't you guys get it? Sure, they are losing money now. But once they get established in all these markets, they will slash their expenses (mostly marketing) in half and put the whole thing on cruise control. Then, they will rake in the profits. On the downside, that might leave some empty office space at their campus, but on the upside for AL & its investors, the taxpayers are paying for their current expansions. Could there be a better time to buy this stock?
  • Model
    So if both revenue and losses are up, I guess they are using the tried and true business model of "we lose money on every unit, but we can make up for it with volume." Brilliant!!!
  • Business Model Broken
    Its called spending more than you make. This business will fail in time.
  • Games People Play
    Any relationship between Angie's List executives or board and the marketing company that is taking all thier IPO money?

    What about real estate leases and services agreements?

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