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.
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