Angie's List Reports Fourth Quarter and Fiscal Year 2012 Results

Angie's List Reports Fourth Quarter and Fiscal Year 2012 Results

  *Fourth quarter revenues increased to $46.2 million, up 68% over the prior
    year quarter
  *Fourth quarter service provider revenue increased to $32.5 million, up 83%
    over the prior year quarter
  *Cost per acquisition ("CPA") in the fourth quarter was $39, a decrease of
    24% over the prior year period
  *Fiscal year 2012 revenues increased to $155.8 million, up 73% compared to
    fiscal year 2011
  *Total paid memberships of 1,787,394 at December 31, 2012, up 66%
    year-over-year

INDIANAPOLIS, Feb. 13, 2013 (GLOBE NEWSWIRE) -- Angie's List, Inc.
(Nasdaq:ANGI) announced today fourth quarter and fiscal year 2012 financial
results for the year ended December 31, 2012.

"We had a great fourth quarter concluding an exceptional year," said Angie's
List CEO Bill Oesterle. "Entering 2012, we set specific operational
objectives, and we exceeded them. We made significant investments in our
business during the year and achieved meaningful strides in our ability to
monetize our membership base."

Three months ended 12/31/2012                                         
                                                 12/31/12   12/31/11   Change
Total paid memberships (end of period)            1,787,394 1,074,757 66%
Gross paid memberships added (in period)          230,921   159,289   45%
Marketing cost per paid membership acquisition    $39      $51      (24%)
(in period)
First-year membership renewal rate (in period)    71%        71%        flat
Average membership renewal rate (in period)       75%        75%        flat
Participating service providers (end of period)   35,952    24,095    49%
Total service provider contract value (end of     $132,646 $73,609  80%
period, in thousands)
                                                                     
Twelve months ended 12/31/2012                                        
                                                 12/31/12   12/31/11   Change
Gross paid memberships added (in period)          1,092,935 716,350   53%
Marketing cost per paid membership acquisition    $73      $78      (6%)
(in period)
First-year membership renewal rate (in period)    75%        75%        flat
Average membership renewal rate (in period)       78%        78%        flat

Market Cohort Analysis

"We saw continued improvement in each of our cohorts marked by strong
membership growth, higher penetration rates and increasing average revenue per
market," continued Oesterle."Our penetration rate within the markets in our
oldest cohort increased nearly 40 percent during 2012 with continued
membership growth and high contribution.The operating characteristics of our
oldest cohort continue to demonstrate the potential for the entire
business." 

                                     Service      Avg.                              
                         Membership   Provider     Marketing              Estimated   Annual
      # of   Avg.         Revenue/Paid Revenue/Paid Expense/    Total Paid  Penetration Membership
               Revenue/
Cohort Markets Market       Membership   Membership   Market      Memberships Rate *      Growth
                                                                                          Rate
Pre    10      $4,689,796 $43.08     $111.48    $1,247,670 358,180     8.5%        44%
2003
2003 - 35      2,716,037   37.59       85.12       1,292,726  973,101     6.3%        69%
2007
2008 - 103     125,483     15.86       23.66       182,286    414,710     6.5%        73%
2010
Post   71      10,606      12.92       16.05       52,555     41,403      3.3%        **
2010
      219                                                    1,787,394              
                                                                                  
Cohort table presents financial and operational data for the twelve months               
ended 12/31/2012
* Demographic information used in penetration rate calculations is based on a third party study we
commissioned in January, 2013.
According to the study, the number of households in our target demographic increased to 31 million
from 29 million in 2012.
** Not                                                                              
meaningful

Fourth Quarter Results

Fourth quarter 2012 total revenue was $46.2 million, an increase of 68% from
$27.4 million in the prior year period. Service provider revenue was the
largest component of total revenue at $32.5 million and the fastest growing
with an 83% growth rate. Marketing expense was up 10%, or $0.8 million, over
the prior year period. Net income was $2.4 million, with selling expense of
$15.6 million and marketing expense of $8.9 million, compared to a net loss of
$5.9 million with selling expense of $11.4 million and marketing expense of
$8.1 million in the prior year period. Adjusted EBITDA, a non-GAAP financial
measure, was $4.4 million, compared to a loss of $2.9 million in the prior
year period.

Fiscal Year 2012 Results

Our total 2012 revenue was $155.8 million, an increase of 73% from $90.0
million in the prior year period. Membership revenue of $47.7 million
increased 41% year-over-year and service provider revenue of $108.1 million
increased 92% compared to the prior year period.We increased our marketing
expense 43%, or $24.1 million, over the prior year period while decreasing our
CPA to $73 from $78.We added a total of 1,092,935 new gross paid memberships
in 2012, compared to adding 716,350 in 2011.

Net loss was $52.9 million for fiscal year 2012, with selling expense of $58.6
million and marketing expense of $80.2 million, compared to a net loss of
$49.0 million with selling expense of $33.8 million and marketing expense of
$56.1 million in the prior year period.

Adjusted EBITDA, a non-GAAP financial measure, was a loss of $45.3 million,
compared to a loss of $38.7 million in the prior year period.The cash and
investments balance at December 31, 2012 was $53.1 million.In addition, we
have $15.0 million of unused capacity on our line of credit.

"In 2012 we made broad investments across the company that resulted in strong
membership and service provider growth, greater efficiency in cost per member
acquisition and additional tools to further enhance our member and service
provider experiences," stated Bob Millard, Angie's List CFO."We look forward
to building upon those investments with a keen focus on managing the business
to deliver strong unit economics."

Business Outlook

The Company's financial and operating expectations for the first quarter of
2013 are as follows:

  *Total revenue in the range of $51.0 million to $52.0 million for the first
    quarter of 2013.
  *Marketing expense in the range of $19.0 million to $20.0 million for the
    first quarter of 2013.

Conference Call Information

The company will host a conference call at5:00 PM (ET)/2:00 PM (PT)to
discuss the quarterly financial results with the investment community. A live
webcast of the event will be available on the Angie's List Investor Relations
website athttp://investor.angieslist.com/.

A live domestic dial-in is available at (877) 380-5664 or (253) 237-1143
internationally. An audio replay will be available at (855) 859-2056
domestically or (404) 537-3406 internationally, using Conference ID 91566587
through February 20, 2013.

Live audio webcast of the presentation will be available on the Angie's List
Investor Relations website at http://investor.angieslist.com/.

About Angie's List

Angie's List helps consumers have happy transactions with local service
professionals in more than 550 categories of service, ranging from home
improvement to health care. More than 1.7 million subscribers across the U.S.
share their consumer experiences and use Angie's List to gain unlimited access
to local ratings, exclusive discounts, the Angie's List magazine, the Angie's
List complaint resolution service and information about how to make the most
of their home improvement projects.

Non-GAAP Financial Measures

In addition to providing financial measurements based on generally accepted
accounting principles in the United States (GAAP), Angie's List has disclosed
in this press release financial information that has not been prepared in
accordance with GAAP. This information includes non-GAAP Adjusted EBITDA,
which Angie's List defines as earnings before interest, income taxes,
depreciation, amortization, loss on debt extinguishment, and non-cash
stock-based compensation.Angie's List uses Adjusted EBITDA internally in
analyzing its financial results and has determined to disclose this measure to
investors because it believes it will be useful to them, as a supplement to
GAAP measures, in evaluating Angie's List's operating performance relative to
its industry sector and competitors. Angie's List believes that the use of
Adjusted EBITDA provides additional insight for investors to use in evaluation
of ongoing operating results and trends. However, non-GAAP financial measures
such as Adjusted EBITDA should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with GAAP.
Angie's List has significant uses of cash flows, including capital
expenditures and other contractual commitments, interest payments and income
taxes that are not reflected in adjusted EBITDA. Adjusted EBITDA does not
consider the potentially dilutive impact of issuing non-cash stock-based
compensation to Angie's List's management and other employees.It should also
be noted that other companies, including companies in the same industry, may
calculate Adjusted EBITDA in a different manner than Angie's List.Angie's
List has provided a reconciliation of Adjusted EBITDA measure to the most
directly comparable GAAP financial measure.

Forward-Looking and Cautionary Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
regarding expected revenue, future marketing expense and growth opportunities.
These forward-looking statements are based on Angie's List's current
assumptions, expectations and beliefs and involve substantial risks and
uncertainties that may cause results, performance or achievement to materially
differ from those expressed or implied by these forward-looking
statements.Factors that could cause or contribute to such differences
include, but are not limited to: our ability to accurately measure and predict
revenue per paid membership, membership acquisition costs or costs associated
with servicing our members; our ability to protect our brand and maintain our
reputation among consumers and local service providers; our ability to attract
and retain local service providers to advertise on our service; our ability to
increase our pricing on memberships and service provider contracts as we
increase our market penetration; our ability to replicate our business model
in our less penetrated markets; our success in converting consumers and local
service providers into paid memberships and participating service providers;
competitive factors; our ability to stay abreast of modified or new laws and
regulations applying to our business, including those regarding sales or
transaction taxes and privacy regulation; our ability to adequately protect
our intellectual property; our ability to manage our growth; and general
economic conditions worldwide.

Further information on these factors and other risks that may affect our
business is included in filings we make with the Securities and Exchange
Commission from time to time, including Angie's List's Annual Report on Form
10-K and its subsequent Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K.

These documents are or will be available online from the SEC or on the SEC
Filings section of the Investor Relations section of our website at
http://investor.angieslist.com. Information on our website is not part of this
release.All forward-looking statements in this press release are based on
information currently available to us, and we assume no obligation to update
these forward-looking statements in light of new information or future events.

Angie's List, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
                                          December 31, December 31,
                                          2012         2011
                                          (Unaudited) 
Assets                                                 
Cash and cash equivalents                  $42,638      $88,607
Investments                                10,460       -
Restricted cash                            50           300
Accounts receivable, net                   7,787        3,937
Prepaid expenses and other current assets  19,810       11,835
Total current assets                       80,745       104,679
                                                      
Property and equipment, net                12,079       3,883
Goodwill                                   415          415
Amortizable intangible assets, net         2,356        1,555
Deferred financing fees, net               634          866
Total assets                               $96,229      $111,398
                                                      
Liabilities and stockholders' equity                   
Accounts payable                           $6,489       $5,266
Accrued liabilities                        14,058       10,532
Deferred membership revenue                27,627       17,153
Deferred advertising revenue               23,160       13,643
Total current liabilities                  71,334       46,594
                                                      
Long-term debt, including accrued interest 14,869       14,820
Deferred membership revenue, noncurrent    4,330        3,751
Deferred advertising revenue, noncurrent   214          239
Deferred income taxes                      163          158
Total liabilities                          90,910       65,562
                                                      
Stockholders' equity:                                  
Common stock                               66           65
Additional paid-in-capital                 248,326      235,950
Treasury stock                             (23,719)     (23,719)
Accumulated deficit                        (219,354)    (166,460)
Total stockholders' equity                 5,319        45,836
Total liabilities and stockholders' equity $96,229      $111,398


Angie's List, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
                                                               
                                  Three Months Ended Year Ended December 31,
                                   December 31,
                                  2012    2011       2012         2011
                                  (Unaudited)        (Unaudited)
Revenue                                                         
Membership                       $13,681 $9,733     $47,717      $33,815
Service provider                 32,498  17,716     108,082      56,228
Total revenue                     46,179  27,449     155,799      90,043
Operating expenses                                              
Operations and support           7,450   4,123      27,081       16,417
Selling                          15,622  11,423     58,596       33,815
Marketing                        8,914   8,131      80,230       56,122
Technology                       4,647   3,106      16,870       9,109
General and administrative       6,635   6,010      24,055       18,740
Operating income (loss)           2,911   (5,344)    (51,033)     (44,160)
Interest expense, net            476     485        1,856        3,004
Loss on debt extinguishment       —     —        —          1,830
Income (loss) before income taxes 2,435   (5,829)    (52,889)     (48,994)
Income tax expense                5       43       5            43
Net income (loss)                 $2,430  $(5,872) $(52,894)  $(49,037)
                                                               
Net income (loss) per common                                    
share
Basic                             $0.04   $(0.14)  $(0.92)    $(1.60)
Diluted                           $0.04   $(0.14)  $(0.92)    $(1.60)
                                                               
Weighted average common shares                                  
outstanding
Basic                            57,831  41,131     57,486       30,656
Diluted                           57,889  41,131     57,486       30,656
                                                               
                                                               
Non-cash stock-based compensation                               
Technology                        $199    $424       $762         $786
General and administrative        531     1,574      2,181        3,056
Total non-cash stock-based         $730    $1,998     $2,943       $3,842
compensation
                                                               
                                                               
Reconciliation of adjusted EBITDA
(loss) to net income (loss)                                     
(Unaudited):
Net income (loss):                 $2,430  $(5,872) $(52,894)  $(49,037)
Income tax                        5       43       5          43
Interest expense, net             476     485        1,856        3,004
Depreciation and amortization     793     465        2,753        1,660
Loss on debt extinguishment       —     —         —          1,830
Non-cash stock-based compensation 730     1,998      2,943        3,842
Adjusted EBITDA (loss)             $4,434  $(2,881) $(45,337)  $(38,658)


Angie's List, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
                                                     Year Ended   Year Ended
                                                     2012         2011
                                                     (Unaudited) 
Operating activities                                              
Net loss                                              $(52,894)  $(49,037)
Adjustments to reconcile net loss to net cash used in             
operating activities:
Depreciation and amortization                         2,753        1,660
Deferred income taxes                                 5            4
Accrued interest due on debt maturity date            —            625
Amortization of debt discount and deferred financing  312          596
fees
Non-cash stock-based compensation expense             2,943        3,842
Non-cash loss on debt extinguishment                  —            1,075
Changes in certain assets:                                        
Accounts receivable, prepaid expenses and other       (11,825)     (7,343)
current
Changes in certain liabilities:                                   
Accounts payable and accrued liabilities              4,764        3,918
Deferred advertising revenue                          9,492        5,433
Deferred membership revenue                           11,053       6,092
Net cash used in operating activities                 (33,397)     (33,135)
                                                                 
Investing activities                                              
Purchase of short-term investments                    (10,491)     —
Restricted cash                                       250          —
Property and equipment                                (9,730)      (3,085)
Data acquisition costs                                (2,035)      (1,191)
Net cash used in investing activities                 (22,006)     (4,276)
                                                                 
Financing activities                                              
Principal payments on long-term debt, net             —            (6,797)
Sale of common stock, net of costs                    8,627        88,565
Proceeds from exercise of stock options               807          —
Cash paid for financing costs and capital lease       —            (985)
obligation
Purchase of treasury shares                           —            (21,897)
Sales of preferred stock, net of costs                —           57,923
Net cash provided by financing activities             9,434        116,809
                                                                 
Net increase (decrease) in cash                       (45,969)     79,398
Cash and cash equivalents, beginning of period        88,607       9,209
Cash and cash equivalents, end of period              $42,638      $88,607

CONTACT: Investor Relations at Angie's List
         888-619-2655
         investorrelations@angieslist.com
        
         Tom Ward
         Investor Relations
         317-808-4527
         tomw@angieslist.com
        
         Cheryl Reed
         Public Relations
         317-396-9134
         cherylr@angieslist.com
 
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