Angie’s List stock sinks on quarterly loss, downgrades

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Shares in Angie's List Inc. sank 24 percent from Wednesday's closing price after the company reported a bigger-than-expected loss in the second quarter.

At least seven Wall Street analysts downgraded the stock Thursday.

The Indianapolis-based online consumer-reviews service suffered a loss of $18.4 million, or 31 cents a share, compared with a loss of $14.3 million, or 25 cents a share, a year ago.

Analysts had predicted a loss of only 24 cents per share.

Shares dropped $1.84 each, or 18.1 percent, to $8.33 each in after-market trading Wednesday following the earnings release. The stock continued to slide Thursday morning, falling as low as $7.77 before climbing to $8.22 in the early afternoon.

Revenue increased 33 percent, to $78.9 million, missing the company's expectation of $79.5 million to $80.5 million.

Angie's List said total paid memberships reached 2.8 million as of June 30, a rise of 31 percent over a year ago.

But the company spent more to attract  those members. Selling expenses jumped nearly 38 percent and  marketing expenses rose 28 percent.

The stock fell nearly 4 percent in regular trading earlier Wednesday and is down about 45 percent since the start of the year.

Angie's List said it expects revenue in the range of $80.5 million to $82.5 million in the third quarter, below analyst expectations of $86.6 million.

"We reported solid results for the second quarter while continuing to invest in our marketplace," Angie's List CEO Bill Oesterle said in a prepared statement. "We increased marketing spending during a seasonally strong period and had a record quarter in gross new member additions, which we believe reflects the continued resonance of our value proposition."

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