Angies List 3Q loss narrows but still disappoints

Angies List 3Q loss narrows as membership grows, but Wall Street expected better; shares drop

Associated Press

INDIANAPOLIS (AP) -- NEWS: Angie's List Inc. on Wednesday said it narrowed its loss in the third quarter, but the online business rating service's results and outlook fell short of Wall Street expectations. Shares fell after hours.

DETAILS: Total paid memberships rose 44 percent to 2.4 million. Paying customers have access to the website's consumer ratings on everything from local plastic surgeons to sewer cleaners. But operating costs also rose 31 percent to $78.5 million on higher expenses.

NUMBERS: The loss in the July-September period came to $13.5 million, or 23 cents per share, compared with a loss of $18.5 million, or 32 cents per share, in the same months in 2012. Revenue climbed 56 percent to $65.6 million.

Analysts polled by FactSet had predicted a loss of 20 cents per share on sales of $66.1 million.

FUTURE: For the current quarter, Angie's List expects revenue of $68 million to $69 million. Analysts were looking for higher revenue of $70.4 million.

STOCK: Shares of the Indianapolis-based company fell 72 cents, or 4.7 percent, to $14.73 in aftermarket trading after closing at $15.45 Wednesday. The stock has gained 29 percent this year, but is off 42 percent in the past three months.

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