Angie's List posts smaller 4Q loss, higher costs
Consumer reviews website operator Angie's List Inc. on Wednesday posted a smaller loss in the fourth quarter as its membership and revenue grew.
The company said it lost $5.9 million, or 14 cents per share, compared with a loss of $8.2 million, or 30 cents per share, a year ago. Revenue rose 70 percent, to $27.4 million from $16.1 million.
Analysts expected Angie's List to report a loss of 11 cents per share on $25.4 million in revenue, according to FactSet.
The company, based in Indianapolis, provides reviews on the Internet and by phone of dentists, doctors, veterinarians, gardeners, plumbers and other businesses. It completed its initial public offering in November, selling 8.8 million shares for $13 each. That was at the high end of the company's expectations, and its shares rose 25 percent in the first day of trading. The stock has declined around 11 percent since then.
Revenue from service providers nearly doubled in the fourth quarter to $17.7 million from $9.4 million a year ago. Membership revenue rose to $9.7 million from $6.7 million. Paid memberships rose 78 percent to 1.1 million, and Angie's List reported a 78 percent average membership renewal rate during the quarter.
Selling costs nearly tripled to $11.4 million. Marketing costs increased.59 percent, to $8.1 million
In all of 2011 Angie's List lost $49 million, or $1.60 per share. It reported a loss of $27.2 million, or 99 cents per share, in 2010. Revenue rose 53 percent, to $90 million from $59 million.
The company expects revenue of $29 million to $30 million in the first quarter, slightly above analysts' estimates of $28.4 million. It also expects marketing expenses to increase to around $18 million.
Shares of Angie's List fell 47 cents, or 3.2 percent, to close at $14.46.