IBJNews

Angie’s List posts larger loss, but higher revenue

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

  • 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?

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. A couple of issues need some clarification especially since my name was on the list. I am not sure how this information was obtained and from where. For me, the amount was incorrect to begin with and the money does not come to me personally. I am guessing that the names listed are the Principal Investigators (individual responsible for the conduct of the trail) for the different pharmaceutical trials and not the entity which receives the checks. In my case, I participate in Phase II and Phase III trials which are required for new drug development. Your article should differentiate the amount of money received for consulting, for speaking fees, and for conduct of a clinical trial for new drug development. The lumping of all of these categories may give the reader a false impression of physicians just trying to get rich. The Sunshine Law may help to differentiate these categories in the future. The public should be aware that the Clinical Trial Industry could be a real economic driver for Indiana since these revenues supports jobs and new job creation. Nationally, this account for 10-20 billion which our State is missing out on to a large degree. Yes, new drug and technology development has gotten most of the attention (e.g. CTSI, BioCrossroads, etc.) However, serious money is being left on the table by not participating in the clinical trials to get those new drugs and medical devices on the market!!!! I guess that this is not sexy enough for academia.

  2. The address given for the Goldfish Swim Club is the Ace Hardware, is it closing?

  3. Out of state management and ownership. If Kite controlled it, everything would be leased. Of course, due to the roundabout, there is limited access to the south side of 116th now also. Just have to go down to the light.

  4. Hey smudge, You're opposed to arresting people for minor crimes? Sounds great! We should only focus on murders and such, right? Let's stand around and wait until someone shoots someone before we act. Whatever we do, we should never question anyone, frisk anyone, or arrest anyone unless they are actively engaged in shooting or stabbing. Very sound!

  5. You guys are being really rude to gays in the comments. (Not all of you, I presume). You need to stop it. Gays have just as much of a right to marry as straight people do. It's not fair how you guys are denying them equal rights. They're acting more human than you'll ever be. We obviously haven't matured since the bible was last updated. Hate the sin, not the sinner. You've all committed a sin at least once in your life. You've lied, you've stolen, etc. (Those are just possibilities). We should have a planet for people that support gay rights and a planet for people that don't. Then, gay people could get married without you bigots interfering with their love life. How would you feel if straights couldn't get married? How would you feel if teenagers were afraid to come out to their parents as straight? If straight people got hate everywhere they went? If straight people were afraid to go out in public, because they feared being judged? It's never going to happen at the rate society is going. You haven't seen the side of me where I act obscene. You're glad my inner demon hasn't been released. I would, but oh no, my comment would be removed because of my very strong emotions about this subject. I love gays, and love how they show their affection for each other. I just ADORE how a state is going to give same-sex couples a marriage license, then changes their mind. (I was obviously being sarcastic there). I just LOVE how society thinks gays are an abomination to our society. You're caring about marriage between two men or two women. That's a small thing. Just grow up, and let them marry. Let them live their lives. You can't make them change their sexuality. You can't make them change their lifestyle. In my opinion, gays are more than welcome to marry. Please, grow up and realize that people should be allowed to marry, even if it's same-sex marriage. You guys are saying that "the bible said gay marriage is wrong." Well, guess what else is wrong? Read Matthew:7 and you'll find out. (I am in no way breaking that. I am saying a fact). I'm stating that gays have just as much of a right to marry as straights do. (:

ADVERTISEMENT