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Actionable news in ANGI: Angie's List, Inc.,

Angie's: Service Provider Revenue/Paid Member

September 2014

, respectively. According to these studies, the number of U.S. households in our target demographic was

27 million

for the period ended

28 million

September 30, 2014

Third Quarter


Total revenue for the

quarter of

$87.0 million


7 percent

compared to the prior year period, driven by higher service provider revenue, which increased

11 percent

$69.8 million

, offset by a decline in membership revenue of

6 percent

$17.2 million

from a year ago.

The growth in service provider revenue, which includes both advertising and e-commerce revenue, quarter over quarter was largely the result of a

12 percent

in service provider revenue per participating service provider as well as a

15 percent

in service provider contract value. These gains were partially offset by lower average e-commerce take rates on higher unit sales compared to the year ago period.

The decline in membership revenue quarter over quarter is primarily the result of a

14 percent


in membership revenue per paid member attributable to tiered pricing, which has reduced average membership fees across all markets, as well as a

in gross paid memberships added, partially offset by a

9 percent

in the total number of paid memberships over the same time period.

Operating Expenses

Operations and support expense was

$14.0 million

, representing a

$0.1 million

decrease from the same period in the prior year, attributable to reductions in outsourced services expenditures and personnel costs, offset by increases in publication costs and credit card processing fees.

Selling expense was

$29.0 million

, a decline of

$3.0 million

quarter over quarter, due to lower headcount and increased efficiency. Total sales personnel declined 17 percent year over year, resulting in reduced selling compensation and personnel-related costs for commissions, wages and other employee benefits.

Marketing expense was

$23.5 million

, an increase of

$0.9 million

period over period, attributable to the planned timing and trajectory of our marketing spend in the current year.

Product and technology expense was

$9.0 million

$0.3 million

from the year ago period, due to an increase in technology-related outsourced services associated with the maintenance and support of our legacy technology infrastructure.

General and administrative expense was

$10.7 million

, representing an increase of

$2.1 million

quarter over quarter, driven by personnel headcount growth as well as costs incurred related to the search, identification and hiring of our new President and Chief Executive Officer.

Adjusted EBITDA

Adjusted EBITDA, a non-GAAP financial measure, was

$3.2 million

for the period as compared to an adjusted EBITDA loss of

$1.3 million

in the year-ago period, an improvement of $4.5 million.

operations for the

quarter was approximately

$1.8 million

, the balance of cash, cash equivalents and investments was

$58.2 million

Business Outlook

For 2015, Angie's List has updated its full year guidance for revenue and adjusted EBITDA. The Company now expects full year revenue for 2015 of $344 million to $348 million, an adjustment from our previous revenue guidance range of $357 million to $363 million.

The Company expects adjusted EBITDA to be in the range of $27 million to $30 million for full year 2015, an adjustment from prior guidance of $30 million to $32 million resulting from lower expected revenue, one-time expenses associated with the search, identification and hiring of the Company's new President and Chief Executive Officer as well as professional services fees related to activist activity in the Company's stock.

Angie’s List, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

December 31,



Cash and cash equivalents



Short-term investments



Accounts receivable, net



Prepaid expenses and other current assets



Total current assets



Property, equipment and software, net




Amortizable intangible assets, net

Other assets, noncurrent

Total assets



Liabilities and stockholders’ deficit