Angie’s List Reports Profit
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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 fourth quarter net income of $15.3 million, compared to $2.8 million during the same quarter the previous year. Chief Executive Officer Bill Oesterle says the online service review company boosted revenue and improved margins.
The company is also reporting a full-year loss of $12.1 million, compared to a $33 million loss in 2013.
February 18, 2015
News Release
INDIANAPOLIS, Inc. – Angie's List, Inc. (Nasdaq:ANGI) announced today financial results for the quarter and year ended December 31, 2014.
“We grew revenue, improved margins and, for the first year in company history, generated positive adjusted EBITDA, all while investing to build our marketplace,” said Angie's List CEO Bill Oesterle. “In the fourth quarter, we continued to execute on our strategic objectives, including growing our member base and investing in our products. While we made progress transitioning to our marketplace model, we see continued opportunities to propel it forward by improving transaction outcomes for both consumers and service providers.”
Market Cohort Analysis
“We surpassed three million members in the fourth quarter, marking a major milestone and underscoring the value of our services to consumers,” continued Oesterle. “Membership continued to grow meaningfully across every cohort.”
Fourth Quarter Results
Total revenue for the fourth quarter of 2014 was $82.2 million, an increase of 19 percent compared to the prior year period. Membership revenue in the fourth quarter of 2014 was $18.0 million, an increase of 2 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $64.1 million for the quarter, representing a 26 percent growth rate year over year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $58.1 million in the fourth quarter of 2014, an increase of 29 percent compared to the year-ago period, and e-commerce revenue was $6.1 million, an increase of approximately 1 percent year over year.
Marketing expense decreased 53 percent, or $6.1 million, compared to the year-ago period. Net income for the fourth quarter was $15.3 million, with selling expense of $28.7 million and marketing expense of $5.5 million, compared to net income of $2.8 million, with selling expense of $24.6 million and marketing expense of $11.6 million, in the year-ago period. Adjusted EBITDA, a non-GAAP financial measure, was $20.9 million for the fourth quarter as compared to $9.9 million for the same period in the year-ago period. Adjusted EBITDA in the fourth quarter of 2014 includes an adjustment for a one-time, non-cash long-lived asset impairment charge of $1.8 million related to the abandonment of certain capitalized website and software development assets.
Full Year 2014 Results
Full year 2014 revenue was $315.0 million, an increase of $69.4 million, or 28 percent, from $245.6 million in the prior year. Membership revenue for the full year was $73.1 million, representing a year over year increase of 12 percent, while service provider revenue increased $61.6 million, or 34 percent, to $241.9 million for the current year as compared to $180.3 million in 2013.
Marketing expense was approximately $87.4 million in both 2013 and 2014, while total gross paid memberships added increased to 1,242,485 in 2014 from 1,218,258 in 2013, resulting in a decrease in cost per acquisition to $70 for 2014 from $72 in 2013.
Net loss was $12.1 million for the full year 2014, with selling expense of $117.2 million and marketing expense of $87.4 million, compared to a net loss of $33.0 million, with selling expense of $90.1 million and marketing expense of $87.5 million, in the prior year.
Adjusted EBITDA, a non-GAAP financial measure, was $4.2 million for the full year 2014, compared to an adjusted EBITDA loss of $18.9 million in 2013.
At December 31, 2014, the balance of cash, cash equivalents and short-term investments was $64.3 million.
Business Outlook
The Company's financial and operating expectations for the full year 2015 are as follows:
Revenue of $357 million to $363 million
Adjusted EBITDA of $28 million to $30 million
About Angie's List
Angie's List helps facilitate happy transactions between more than three million consumers nationwide and its collection of highly-rated service providers in 720 categories of service, ranging from home improvement to health care. Built on a foundation of authentic reviews of local service, Angie's List connects consumers directly to its online marketplace of services from member-reviewed providers, and offers unique tools and support designed to improve the local service experience for both consumers and service professionals.
Source: Angie's List Inc.