Angie's List Cuts Forecast
October 21 2015 - 08:20AM
Dow Jones News
Angie's List Inc. on Wednesday cut its guidance for the year,
even as the services marketplace and consumer-review site eked out
a rare quarterly profit.
The company said it now expects revenue of $344 million to $348
million, down from its previous guidance of $357 million to $363
million in revenue.
The company also lowered its forecast for earnings before
interest, taxes, depreciation and amortization to $27 million to
$30 million from its prior guidance of $30 million to $32
million.
The company cited one-time expenses associated with the hiring
of new chief executive Scott Durchslag, the former Best Buy Co.
executive who took over in September.
Despite seeing revenue growth, Angie's List has posted mostly
losses since going public in 2011, as expansion efforts have
ratcheted up costs.
Mr. Durchslag said in a news release Wednesday that the company
is focused on improving revenue growth and cash flow. He said the
company has identified millions in cost cuts to be implemented next
year.
In the most recent quarter, Angie's List booked a profit of
$82,000, compared with a loss of $5.21 million in the prior year
period. Angie's List said it was its first profitable third quarter
in the company's history.
On a per-share basis, earnings were flat, compared with a loss
of 9 cents a share a year earlier. Revenue grew 7% to $87
million.
Analysts polled by Thomson Reuters had expected the company to
post a loss of 5 cents on $89.7 million in revenue.
Profit was helped by stabilizing operating expenses, which
ticked up slightly to $86.2 million from $86 million in the
prior-year period despite the revenue growth.
As of Sept. 30, total paid membership was 3.25 million, up 9%
from the prior year. But the company added 298,922 gross paid
members during the quarter, down 15% from a year earlier
Membership revenue slid 6% to $17.2 million.
Average renewal rates were flat at 77%.
The amount Angie's List spent on marketing per paid membership
acquisition jumped 22% to $78.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 21, 2015 08:05 ET (12:05 GMT)
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