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Angie's List Reports Second Quarter 2013 Results

Stocks in this article: ANGI

  • Second quarter revenues increased to $59.2 million, up 62% over the prior year quarter
  • Second quarter cash provided by operations of $4.3 million; cash provided by operations for the six months ended June 30, 2013 of $14.2 million
  • Cost per acquisition ("CPA") in the second quarter was $80, a decrease of 12% compared to the prior year period

INDIANAPOLIS, July 24, 2013 (GLOBE NEWSWIRE) -- Angie's List, Inc. (Nasdaq:ANGI) announced today second quarter 2013 financial results for the quarter ended June 30, 2013.

"We are reporting record levels for memberships added, service provider revenue and total revenue, as well as continued efficiencies in our cost per member acquired," said Angie's List CEO Bill Oesterle. "We achieved these results while simultaneously improving our operating leverage and producing cash flow."

Key Operating Metrics

Three months ended      
  6/30/13 6/30/12 Change
Total paid memberships (end of period)  2,162,601  1,431,073 51%
Gross paid memberships added (in period)  347,342  305,151 14%
Marketing cost per paid membership acquisition (in period)  $ 80  $ 91 (12%)
First-year membership renewal rate (in period) 75% 75% flat
Average membership renewal rate (in period) 78% 77% 1.0 pts
Participating service providers (end of period)  42,452  29,930 42%
Total service provider contract value (end of period, in thousands)  $ 165,566  $ 101,719 63%
Six months ended       
  6/30/13 6/30/12 Change
Gross paid memberships added (in period)  622,238  520,492 20%
Marketing cost per paid membership acquisition (in period)  $ 77  $ 87 (11%)
First-year membership renewal rate (in period) 75% 75% flat
Average membership renewal rate (in period) 77% 78% (1.0) pts

Market Cohort Analysis

"We recorded very good performance from each of our cohorts in the second quarter," continued Oesterle. "Each cohort recorded strong membership growth, higher penetration rates, and increasing average revenue per market and contribution."      

        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  $ 5,529,609  $ 40.70  $ 112.26  $1,257,910 417,775 10.0% 37%
2003 - 2007 35  3,529,063  35.82  90.95  1,303,562 1,175,867 7.7% 52%
2008 - 2010 103  186,011  16.39  29.65  185,475 503,519 7.9% 53%
Post 2010 96  15,842  12.60  21.35  55,992 65,440 3.7% **
  244         2,162,601    
Cohort table presents financial and operational data for the twelve months ended 6/30/2013    
* Demographic information used in penetration rate calculations is based on a third party study we commissioned in June, 2013. 
  According to the study, the number of U.S. households in our target demographic was 31 million.    
** Not meaningful              

Second Quarter Results

Second quarter 2013 total revenue was $59.2 million, an increase of 62 percent compared to $36.5 million in the prior year period. Membership revenue in the second quarter of 2013 was $15.9 million, an increase of 41 percent compared to the prior year period. Service provider revenue was the largest component of total revenue at $43.3 million and the fastest growing with a 72 percent growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $38.3 million in the second quarter of 2013, an increase of 76 percent compared to the prior year period and e-commerce revenue was $5.0 million, an increase of 44 percent year-over-year.

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