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TheStreet Open House

Angie's List Reports Fourth Quarter And Fiscal Year 2012 Results

Stocks in this article: ANGI

  • Fourth quarter revenues increased to $46.2 million, up 68% over the prior year quarter
  • Fourth quarter service provider revenue increased to $32.5 million, up 83% over the prior year quarter
  • Cost per acquisition ("CPA") in the fourth quarter was $39, a decrease of 24% over the prior year period
  • Fiscal year 2012 revenues increased to $155.8 million, up 73% compared to fiscal year 2011
  • Total paid memberships of 1,787,394 at December 31, 2012, up 66% year-over-year

INDIANAPOLIS, Feb. 13, 2013 (GLOBE NEWSWIRE) -- Angie's List, Inc. (Nasdaq:ANGI) announced today fourth quarter and fiscal year 2012 financial results for the year ended December 31, 2012.

"We had a great fourth quarter concluding an exceptional year," said Angie's List CEO Bill Oesterle. "Entering 2012, we set specific operational objectives, and we exceeded them. We made significant investments in our business during the year and achieved meaningful strides in our ability to monetize our membership base."

Three months ended 12/31/2012      
  12/31/12 12/31/11 Change
Total paid memberships (end of period)  1,787,394  1,074,757 66%
Gross paid memberships added (in period)  230,921  159,289 45%
Marketing cost per paid membership acquisition (in period)  $ 39  $ 51 (24%)
First-year membership renewal rate (in period) 71% 71% flat
Average membership renewal rate (in period) 75% 75% flat
Participating service providers (end of period)  35,952  24,095 49%
Total service provider contract value (end of period, in thousands)  $ 132,646  $ 73,609 80%
       
Twelve months ended 12/31/2012      
  12/31/12 12/31/11 Change
Gross paid memberships added (in period)  1,092,935  716,350 53%
Marketing cost per paid membership acquisition (in period)  $ 73  $ 78 (6%)
First-year membership renewal rate (in period) 75% 75% flat
Average membership renewal rate (in period) 78% 78% flat

Market Cohort Analysis

"We saw continued improvement in each of our cohorts marked by strong membership growth, higher penetration rates and increasing average revenue per market," continued Oesterle. "Our penetration rate within the markets in our oldest cohort increased nearly 40 percent during 2012 with continued membership growth and high contribution. The operating characteristics of our oldest cohort continue to demonstrate the potential for the entire business."      

        Service Avg.      
      Membership Provider Marketing   Estimated Annual
  # of  Avg. Revenue/ Revenue/Paid Revenue/Paid Expense/ Total Paid Penetration Membership
Cohort Markets Market Membership Membership Market Memberships Rate * Growth Rate
Pre 2003 10  $ 4,689,796  $ 43.08  $ 111.48  $1,247,670 358,180 8.5% 44%
2003 - 2007 35  2,716,037  37.59  85.12  1,292,726 973,101 6.3% 69%
2008 - 2010 103  125,483  15.86  23.66  182,286 414,710 6.5% 73%
Post 2010 71  10,606  12.92  16.05  52,555 41,403 3.3% **
  219         1,787,394    
                 
Cohort table presents financial and operational data for the twelve months ended 12/31/2012    
* Demographic information used in penetration rate calculations is based on a third party study we commissioned in January, 2013. 
According to the study, the number of households in our target demographic increased to 31 million from 29 million in 2012.
** Not meaningful              

Fourth Quarter Results

Fourth quarter 2012 total revenue was $46.2 million, an increase of 68% from $27.4 million in the prior year period. Service provider revenue was the largest component of total revenue at $32.5 million and the fastest growing with an 83% growth rate. Marketing expense was up 10%, or $0.8 million, over the prior year period. Net income was $2.4 million, with selling expense of $15.6 million and marketing expense of $8.9 million, compared to a net loss of $5.9 million with selling expense of $11.4 million and marketing expense of $8.1 million in the prior year period. Adjusted EBITDA, a non-GAAP financial measure, was $4.4 million, compared to a loss of $2.9 million in the prior year period.

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