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Angie's List posts smaller loss on soaring revenue

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Angie's List took a smaller loss in the first quarter than a year ago, as increased spending on advertising helped boost paid memberships to its online business ratings, boosting revenue by 68 percent.

The latest results beat Wall Street estimates, driving the Indianapolis-based company's shares upward by nearly 7 percent in after-market trading on Wednesday.

Angie's List reported a loss of $7.9 million, or 14 cents per share, for the three months ended March 31. That compares with a loss of $13.5 million, or 24 cents per share, in the same period last year.

Revenue vaulted to $52.2 million, up from $31.1 million a year earlier.

Analysts polled by FactSet had expected, on average, a loss of 17 cents per share on $51.6 million in revenue.

Angie's List has been funneling more of its cash into advertising to woo new paying customers to its website. Those customers have access to consumer ratings on everything from local plastic surgeons to sewer cleaners.

The company's marketing expenses grew 12 percent, to $19.7 million.

Still, the investment is paying off in more subscribers and increased revenue.

All told, membership revenue climbed 47 percent, to $14.6 million, while service provider revenue grew 78 percent, to $37.5 million.

At the end of the quarter, the company's had nearly 2 million paid members, an increase of 60 percent from the first three months of last year.

Angie's List said it expects revenue for the second quarter to range from $58.5 million to $59.5 million. Analysts were anticipating $57.2 million.

Shares in Angie's List gained $1.39, or 6.9 percent, to $21.50 each, in after-hours trading after the release of the earnings report. They ended regular trading down 32 cents, or 1.6 percent, at $20.11. The stock is up about 68 percent this year.
 

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  • Angie's List - where are the jobs?
    All Angie's List is concerned about is its "image" and its ability to make you think it is successful. The truth is, they kick good people to the curb all the time. A good investigative reporter should look into just how many jobs have been LOST through time and answer the question about the company's alleged worth to Indianapolis.
  • Come on, IBJ
    This is supposed to be a business paper, yet it's nothing more than a hometown cheerleader. Angie's business plan is to get bought out by somebody willing to pay 20-50 times what the company is truly worth. Assuming there's somebody dumb enough to do it, Angie will be absorbed into the parent company in Mountain View or Zurich, local tech geniuses will go back to working at Jack in the Box, and there will be a for rent sign on East Washington. IBJ, please get it through your thick heads...there is no tech community in Indy. All we have our dopey companies peddling 20 year old ideas. Nobody outside of Idiotana believes in this nonsense.
  • How is this company in business?
    I'm not sure how this company has stayed alive so long. All they do is lose money, and they brag about losing slightly less money than anticipated. Nobody actually pays to read reviews.

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