Angie’s List Profit Falls, Membership Rises
The company is headquartered in Indianapolis.
Subscriber Benefit
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 second quarter net loss of $8.1 million, compared with net income of $4.7 million during the same period the previous year. Despite the drop, the company says it nearly doubled its membership base with nearly 6.4 million members.
Angie’s List says the membership numbers include 4.3 million free memberships and 2.1 million paid memberships. The company dropped the paywall for online reviews nationwide in July 2016 after a brief pilot period in select markets.
"Our top priorities continue to be engaging customers and improving operating efficiency," said Scott Durchslag, chief executive officer of Angie’s List. "We updated our member mobile app to deliver a new user experience, and we took action to reduce expenses, leading to a year over year decline in selling costs and operations and support expense. While these improvements were largely offset by higher marketing spend due to a shift in the timing of investment from last year, we have made significant progress aligning our cost structure with our freemium model. The lagging effect from last year’s technology platform migration as well as a reduction in sales headcount resulted in lower revenue compared to the year-ago quarter."
The earnings report comes amid the pending acquisition of Angie’s List by New York-based IAC (Nasdaq: IAC), the parent of HomeAdvisor. Angie’s List says the deal, which would combine the two companies into one publicly-traded entity, is expected to close in the fourth quarter.
Durchslag says the second quarter results are in line with projections provided to IAC earlier in the acquisition process. You can connect to the full earnings report by clicking here.