Angie’s List hit as results, outlook disappoint

Online professional-services company’s sales fail to meet expectations

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By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) — Angie’s List Inc. shares tumbled more than 13% in after-hours trading Wednesday on disappointment over the professional-services recommendation company’s quarterly results and revenue forecast.

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Following the close of trading, Angie’s List /quotes/zigman/7312483/quotes/nls/angi ANGI -0.68% said that for its third quarter it lost $13.5 million, or 23 cents a share, on revenue of $65.5 million, compared to a loss of $18.5 million, or 32 cents a share, on $42 million in sales in the same period a year ago.
Analysts surveyed by FactSet had forecast Angie’s List to lose 20 cents a share on $66.1 million in revenue.
Angie’s List also said its marketing expenses rose by $2.1 million from a year ago, to $28.2 million.
After the results came out, Angie’s List’s shares fell more than 13%, and the stock is down by more than 31% this month. Angie’s List has been on the slide since earlier this month, when the company said it cut its subscription prices is some markets by as much as 75% in what the company called a “reduced price test.” Also, Angie’s List said chief technology officer Manu Thepar left the company.
For its fourth quarter, it expects to report revenue of $68 million to $69 million, while analysts had forecast sales of $70.4 million.

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