Angie’s List Inc (NASDAQ:ANGI) reported earnings and showed strong growth fueled by strong subscriber growth. The online consumer opinion site grew revenues to $82.15 million, beating the same-period number from a year ago handily. Per share earnings rose to 26 cents which were almost 5 times the number from the same period a year ago. Analysts had expected revenue to come in at $81.2 million and the EPS at 22 cents.
Strong Subscriber Growth
Paid subscriptions for the consumer website were very strong for the quarter growing 22% to 3.04 million. Angie’s List Inc (NASDAQ:ANGI)’s model is heavily reliant on paid members for revenue. Internal costs were also lowered helping with the strong net income numbers. Marketing costs associated with attaining new members were reduced 48% to $27 and the amount of service providers subscribing to the site grew 28% to 51,614.
The numbers were a pleasant surprise and bolstered Angie’s List Inc (NASDAQ:ANGI)’s reputation as a valuable service to consumers and also a revenue generating model. Over the past three months the stock has lost 15%. The recent earnings should help to reinstall investor confidence in the issue.
ANGI recently boasted that its paid membership had passed the 100kmark in the Boston area. The region is the fifth largest for the company and the announcement implies there is even more room to grow.
The company is also celebrating 20 years of being the liaison between consumers, businesses and also providing a rating system to allow consumers to make recommendations based on the quality of service they have experienced. Angie’s List Inc (NASDAQ:ANGI)’s website is E-commerce enabled and along with the ratings system provides a valuable service to both the business and the consumer.
The stock has lost about 15% of its value over the past three months but finally looks like it is consolidating. A small cup and handle formation is developing on the chart but the stock needs to push through $5.24 before that is confirmed. If it can take that leap the next resistance is at $6.96.