EX-99.1 2 d341312dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO                   www.angieslist.com

 

Angie’s List Reports First Quarter 2012 Results

 

   

First quarter revenues increased to $31.1 million, up 76% over the prior year period

 

   

Service provider revenue grew 99% over the prior year period to $21.1 million

 

   

Cost per acquisition (“CPA”) declined in the first quarter compared to the prior year period despite a marketing spend increase of $6.5 million

 

   

Total paid memberships of 1,221,387 at March 31, 2012, up 81% year-over-year

Indianapolis, Ind. – April 26, 2012 – Angie’s List (NASDAQ: ANGI) announced today first quarter 2012 financial results for the quarter ended March 31, 2012.

“The business continues to demonstrate scale and consistency,” said Angie’s List CEO Bill Oesterle. “We achieved record total revenue, total paid member base, and total advertising service providers. In addition we were able to grow efficiently as our marginal CPA declined this quarter compared to the first quarter of 2011.”

Key Operating Metrics

 

     03/31/12     03/31/11     Change  

Total paid memberships (end of period)

     1,221,387        674,490        81

Gross paid memberships added (in period)

     215,431        112,761        91

Marketing cost per paid membership acquisition (in period)

   $ 82      $ 98        -16

First-year membership renewal rate (in period)

     73     71     + 200 bps   

Average membership renewal rate (in period)

     76     75     + 100 bps   

Participating service providers (end of period)

     27,100        17,577        54

Total service provider contract value (end of period, in thousands)

   $ 87,335      $ 50,303        74

First quarter 2012 total revenue was $31.1 million, up 76% from $17.6 million in the prior year period. Service provider revenue was the largest component of total revenue at $21.1 million and the fastest growing with a 99% growth rate. Marketing spend was up 59%, or $6.5 million, over the prior year period, while there was a decrease in CPA from $98 to $82. Net loss was $13.5 million, with selling expense of $12.4 million and marketing expense of $17.6 million, compared to a net loss of $9.6 million with selling expense of $6.1 million and marketing expense of $11.1 million in the prior year period.


“As we continue to execute on our strategy,” commented Mr. Oesterle, “we plan to invest aggressively in our product, engineering, and sales infrastructure to capitalize on our market opportunity.”

“Unit economics are our focus and they continued to improve,” explained Angie’s List CFO Bob Millard. “In addition, this quarter our e-commerce initiatives, including The Big Deal and Storefront, have shown significant growth. We remain focused on the acquisition of members and advertising service providers and expect to continue to make technology investments as evidenced by the recent announcement of our new Palo Alto office.”

Business Outlook

The Company’s financial and operating expectations for the second quarter of 2012 are as follows:

 

   

Total revenue in the range of $34.5 million to $35.5 million.

 

   

Marketing expense in the range of $27.8 million to $28.3 million. Marketing expense and CPAs are likely to be the highest in the second quarter as a result of ramping spend to address seasonal trends.

Conference Call Information

The company will host a conference call at 5:00 PM (ET) / 2:00 PM (PT) to discuss the quarterly financial results with the investment community. A live webcast of the event will be available on the Angie’s List Investor Relations website at http://investor.angieslist.com/

A live domestic dial-in is available at (877) 380-5664 or (253) 237-1143 internationally. An audio replay will be available at (855) 859-2056 domestically or (404) 537-3406 internationally, using Conference ID 6699-1527 through May 2, 2012.

Live audio webcast of the presentations will be available on Angie’s List Investor Relations website at http://investor.angieslist.com/


About Angie’s List

Angie’s List collects consumer reviews on local service providers ranging from home improvement to healthcare in more than 550 service categories. More than one million paying households in the United States rely upon Angie’s List to help them make the best hiring decisions. Members get unlimited access to local ratings via Internet or phone, exclusive discounts, the Angie’s List Magazine and help from the Angie’s List complaint resolution service.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding expected revenue, future marketing expense and growth opportunities. These forward-looking statements are based on Angie’s List’s current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to accurately measure and predict revenue per paid membership, membership acquisition costs or costs associated with servicing our members; our ability to protect our brand and maintain our reputation among consumers and local service providers; our ability to attract and retain local service providers to advertise on our service; our ability to increase our pricing on memberships and service provider contracts as we increase our market penetration; our ability to replicate our business model in our less penetrated markets; our success in converting consumers and local service providers into paid memberships and participating service providers; competitive factors; our ability to stay abreast of modified or new laws and regulations applying to our business, including those regarding sales or transaction taxes and privacy regulation; our ability to adequately protect our intellectual property; our ability to manage our growth; and general economic conditions worldwide.

Further information on these factors and other risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, particularly under the heading “Risk Factors.”

These documents are or will be available online from the SEC or on the SEC Filings section of the Investor Relations section of our website at http://investor.angieslist.com. Information on our website is not part of this release. All forward-looking statements in this press release are based


on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

CONTACT:

Investor Relations at Angie’s List

888-619-2655

investorrelations@angieslist.com

Or

Brinlea Johnson

The Blueshirt Group for Angie’s List

212-331-8424

brinlea@blueshirtgroup.com


Angie’s List, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

     March 31,
2012
    December 31,
2011
 
     (Unaudited)        

Assets

    

Cash

   $ 84,570      $ 88,607   

Restricted cash

     50        300   

Accounts receivable, net

     5,230        3,937   

Prepaid expenses and other current assets

     15,589        11,835   
  

 

 

   

 

 

 

Total current assets

     105,439        104,679   

Property and equipment, net

     4,915        3,883   

Goodwill

     415        415   

Amortizable intangible assets, net

     2,027        1,555   

Deferred financing fees, net

     813        866   
  

 

 

   

 

 

 

Total assets

   $ 113,609      $ 111,398   
  

 

 

   

 

 

 

Liabilities and shareholders’ equity

    

Accounts payable

   $ 2,804      $ 5,266   

Accrued liabilities

     23,848        10,532   

Deferred membership revenue

     18,293        17,153   

Deferred advertising revenue

     16,401        13,643   
  

 

 

   

 

 

 

Total current liabilities

     61,346        46,594   

Long-term debt, including accrued interest

     14,832        14,820   

Deferred membership revenue, noncurrent

     3,919        3,751   

Deferred advertising revenue, noncurrent

     272        239   

Deferred income taxes

     158        158   
  

 

 

   

 

 

 

Total liabilities

     80,527        65,562   

Shareholders’ equity:

    

Common stock

     66        65   

Additional paid-in-capital

     236,645        235,950   

Treasury stock

     (23,719     (23,719

Accumulated deficit

     (179,910     (166,460
  

 

 

   

 

 

 

Total shareholders’ equity

     33,082        45,836   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 113,609      $ 111,398   
  

 

 

   

 

 

 


Angie’s List, Inc.

Condensed Consolidated Statements of Operations

(in thousands except per share data)

     Three months ended  
     March 31,
2012
    March 31,
2011
 
     (unaudited)  

Revenue

    

Membership

   $ 9,975      $ 7,033   

Service provider

     21,119        10,595   
  

 

 

   

 

 

 

Total revenue

     31,094        17,628   

Operating expenses

    

Operations and support

     5,775        3,399   

Selling

     12,409        6,084   

Marketing

     17,606        11,099   

Technology

     3,127        1,843   

General and administrative

     5,171        3,904   
  

 

 

   

 

 

 

Operating loss

     (12,994     (8,701

Interest expense

     456        935   

Loss before income taxes

     (13,450     (9,636

Income tax expense

     —          —     
  

 

 

   

 

 

 

Net loss

   $ (13,450   $ (9,636
  

 

 

   

 

 

 

Net loss per common share—basic and diluted

   $ (0.24   $ (0.34

Weighted average number of common shares outstanding—basic and diluted

     56,964        28,346   

Non-cash stock-based compensation

    

Technology

   $ 146      $ 238   

General and administrative

     534        355   
  

 

 

   

 

 

 

Total non-cash stock-based compensation

   $ 680      $ 593   
  

 

 

   

 

 

 
  

 

 

   

 

 

 

Depreciation and amortization

   $ 529      $ 370