This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Angie's List Reports Second Quarter 2014 Results

Stocks in this article: ANGI

  • 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%
2003-2007 35 5,129,500 32.08 100.02 1,580,604 1,542,153 10.7% 31%
2008-2010 103 316,235 16.70 39.86 216,490 648,226 11.1% 29%
Post 2010 105 34,387 12.31 27.91 62,623 114,068 6.6% 74%
Total 253         2,838,863    
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.

Second Quarter Results

Total revenue for the second quarter of 2014 was $78.9 million, an increase of 33 percent compared to the prior year period. Membership revenue in the second quarter of 2014 was $18.5 million, an increase of 16 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $60.4 million for the quarter, representing a 39 percent growth rate year over year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $52.6 million in the second quarter of 2014, an increase of 37 percent compared to the prior year period, and e-commerce revenue was $7.8 million, an increase of approximately 57 percent year over year.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs