Angie’s List Swings to Full-Year Loss
The company is headquartered in Indianapolis.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Angie’s List Inc. (Nasdaq: ANGI) is reporting a full-year net loss of $7.9 million in 2016, compared to net income of $10.2 million the previous year. Chief Executive Officer Scott Durchslag says, despite the drop, the company achieved a number of objectives in a "transformative" year.
The company is also reporting fourth quarter net income of $8.9 million, down from $14.2 million during the same period in 2015. Durchslag says efforts including removing the paywall for reviews, introducing freemium pricing tiers and migrating the company’s technology platform were successful in 2016.
"These accomplishments enabled us to end the year with momentum in new member growth as we added approximately 785,000 gross members in the fourth quarter and finished the year with 5.1 million members, an increase of 55% from a year ago," said Durchslag. "Importantly, we achieved these results while balancing investments for growth with significant reductions in our cost structure. While this is good progress, we continue to expect it will take time before we meaningfully improve trends in our financial results."
Durchslag says Angie’s List has three priorities in 2017. They include building products to increase member engagement, strengthening value to service providers and continue to improve the company’s cost structure.
The earnings report follows the company’s announcement in November that it was cutting an undisclosed number of jobs. The full-year report for 2016 is a stark contrast to the previous year, which was the first full-year profit for Angie’s List in the company’s history.