Angie's List Falls 6% Following Worse-Than-Expected Q1 Results

Shares of Angie's List Inc ANGI were trading lower by more than 6 percent Wednesday morning after the company reported its first quarter results. Angie's List said that it lost $0.01 per share in the quarter on revenue of $83.86 million. Wall Street analysts were expecting the company to earn $0.06 per share on revenue of $86.27 million. Net loss for the quarter totaled $4.0 million compared to a net income of $4.4 million in the same quarter a year ago. Total paid memberships at the end of the quarter rose 7 percent to 3.309 million but gross paid memberships additions in the quarter fell 18 percent year-over-year to 188,242. Angie's List also noted it saw year-over-year growth in participating service providers, total contract value, traffic and first-year membership renewal rates. "We made good progress preparing for the strategic and operational shift in our business," said Scott Durchslag, President and Chief Executive Officer of Angie's List. "The rollout of our technology platform, AL 4.0, is on schedule, and we are on track to remove the reviews paywall by this summer." "Our freemium offering, which is being piloted in some top markets, continues to perform robustly, with logins, searches, contract value and reviews each up compared with our control markets," Durchslag continued. "These encouraging results give us confidence that our upcoming nationwide freemium rollout will drive a re-acceleration of our business." "We are also focused on stabilizing our core business during this time of change," continued Durchslag. "Our overall first quarter revenue was flat year over year as we continued to face headwinds on member and advertising revenue. Adjusted EBITDA1 declined from a year ago due largely to non-recurring expenses and investments in our initiatives to reignite revenue growth. On a more positive note, we sequentially grew our total number of service providers and our backlog of contract value, and our total site traffic increased approximately 25% in the first quarter of 2016 from the year-ago quarter."