Angie's List Inc. saw revenue soar 74 percent in the second quarter, but the Indianapolis-based contractor-ratings service continued to see growing losses as the result of higher marketing expenses.
The company's stock fell 10.2 percent, or $1.48, in Thursday trading, to close at $13.07 per share.
The company lost $23.4 million in the quarter ended June 30, compared with a loss of $16.2 million in the same period a year ago, it said Wednesday afternoon.
Quarterly revenue rose from $21 million last year to $36.5 million this year. Revenue from service providers rose 94 percent, to $25 million.
On a per-share basis, the loss dropped to 41 cents, from 60 cents, as the number of shares outstanding grew. Analysts were expecting a loss of 39 cents a share.
The provider of consumer reviews on businesses has not turned a profit since it was founded 17 years ago, but some analysts project the company could turn a profit in one to two years as its market presence in key cities matures and the cost of marketing to gain new members decreases.
Marketing expenses in the latest quarter, however, rose 52 percent over the prior-year period, to $27.6 million.
Total paid memberships were up 74 percent on a year-over-year basis, to $1.43 million.
"Looking ahead, we will continue to invest in acquiring new members, adding advertising service providers and improving our technology to drive further scale and penetration," Angie's List Chief Financial Officer Bob Millard said in a prepared statement.
Angie's List's earnings announcement came after markets closed Wednesday. The company's stock rose 3.6 percent Wednesday, or 51 cents, to close at $14.55 per share.