INDIANAPOLIS (AP) -- Angie's List trimmed its loss in the first quarter, as increased spending on advertising helped boost paid memberships to its online business ratings and reviews, boosting revenue by 68 percent.
The latest results beat Wall Street estimates, driving the company's shares upward by nearly 7 percent in after-market trading on Wednesday.
Angie's List reported a loss of $7.9 million, or 14 cents per share, for the three months ended March 31. That compares with a loss of $13.5 million, or 24 cents per share, in the same period last year.
Revenue vaulted to $52.2 million from $31.1 million a year earlier.
Analysts polled by FactSet had expected, on average, a loss of 17 cents per share on $51.6 million in revenue.
Angie's List has been funneling more of its cash into advertising to woo new paying customers to its website. Those customers have access to consumer ratings on everything from local plastic surgeons to sewer cleaners.
The company's marketing expenses grew 12 percent to $19.7 million.
Still, the investment is paying off in more subscribers and increased revenue.
All told, membership revenue climbed 47 percent to $14.6 million, while service provider revenue grew 78 percent to $37.5 million.
At the end of the quarter, the company's had nearly 2 million paid members, an increase of 60 percent from the first three months of last year.
Angie's List said it expects revenue for the second quarter to range from $58.5 million to $59.5 million. Analysts were anticipating $57.2 million.
Shares in Angie's List gained $1.39, or 6.9 percent, to $21.50 in after-hours trading after the release of the earnings report. The ended regular trading down 32 cents, or 1.6 percent, at $20.11. The stock is up about 68 percent this year.
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