Angie's List Q1 Earnings Top Views, Shares Surge

Shares of Angie's List Inc ANGI jumped over 5.5 percent in pre-market trading after the company reported upbeat earnings for the first quarter. The Indianapolis, Indiana-based company posted quarterly earnings of $4.4 million, or $0.07 per share, versus a year-ago loss of $3.8 million, or $0.06 per share. Its revenue climbed to $83.5 million from $72.7 million. However, analysts were expecting earnings of $0.00 per share on revenue of $84.7 million. Total paid memberships rose 18 percent to $3.1 million, while average membership renewal rate declined 1 percentage point to 75 percent. Adjusted EBITDA came in at $8.6 million for the quarter, versus a year-ago loss of $0.6 million. At March 31, 2015, the company had $77.5 million in cash, cash equivalents and investments. The average estimate among 18 Estimize users was for earnings of $0.00 per share and revenue of $84.50 million. "We had a positive start to the year," said Angie's List CEO Bill Oesterle. "We strengthened the foundation of our marketplace by adding inventory and growing gross merchandise value. Further, we improved our efficiency with respect to membership acquisition, enhanced service provider sales efficiency and delivered leverage in key expense line items." Angie's List expects 2015 revenue of $357 million to $363 million, versus analysts' estimates of $360 million. Angie's List shares gained 5.69 percent to $6.50 in pre-market trading.