- Gross member additions of approximately 399,000 at an average cost per acquisition of $90
- Revenue of $78.9 million, representing a 33% increase over the prior year quarter
- Cash provided by operations of $2.6 million and $17.5 million, respectively, for the three and six month periods ended June 30, 2014
INDIANAPOLIS, July 23, 2014 (GLOBE NEWSWIRE) -- Angie's List, Inc. (Nasdaq:ANGI) announced today second quarter 2014 financial results for the quarter ended June 30, 2014.
"We reported solid results for the second quarter while continuing to invest in our marketplace," said Angie's List CEO Bill Oesterle. "We increased marketing spend during a seasonally strong period and had a record quarter in gross new member additions, which we believe reflects the continued resonance of our value proposition. While revenue growth in e-commerce was lower than expected, we continued to make progress against our strategy of enabling service providers and populating their stores with offers. We expect significant improvement in margin in the second half of the year and continue to see compelling opportunities for growth."
|Key Operating Metrics|
|Three months ended||6/30/14||6/30/13||Change|
|Total paid memberships (end of period)||2,838,863||2,162,601||31%|
|Gross paid memberships added (in period)||398,812||347,342||15%|
|Marketing cost per paid membership acquisition (in period)||$ 90||$ 80||13%|
|First-year membership renewal rate (in period)||74%||75%||(1.0) pts|
|Average membership renewal rate (in period)||77%||78%||(1.0) pts|
|Participating service providers (end of period)||51,076||42,452||20%|
|Total service provider contract value (end of period, in thousands)||$ 224,171||$ 165,566||35%|
|Six months ended||6/30/14||6/30/13||Change|
|Gross paid memberships added (in period)||685,438||622,238||10%|
|Marketing cost per paid membership acquisition (in period)||$ 87||$ 77||13%|
|First-year membership renewal rate (in period)||73%||75%||(2.0) pts|
|Average membership renewal rate (in period)||77%||77%||flat|
Market Cohort Analysis"Our performance by cohort highlights the continued strength of our business model," continued Oesterle. "Membership growth rates remain strong, even in our oldest cohorts, and we grew penetration in every cohort during the second quarter."
|Cohort||# of Markets||Average Revenue/ Market||Membership Revenue/Paid Membership||Service Provider Revenue/Paid Membership||Average Marketing Expense/ Market||Total Paid Memberships||Estimated Penetration Rate*||Annual Membership Growth Rate|
|Pre-2003||10||$ 6,990,903||$ 36.23||$ 110.60||$ 1,500,899||534,416||13.6%||28%|
|Cohort table presents financial and operational data for the twelve months ended June 30, 2014.|
|* Demographic information used in penetration rate calculations is based on a third-party study we commissioned in June 2014. According to the study, the number of U.S. households in our target demographic was 29 million.|