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Angie's List Reports First Quarter 2013 Results

Angie's List Reports First Quarter 2013 Results

  *First quarter revenues increased to $52.2 million, up 68% over the prior
    year quarter
  *First quarter service provider revenue increased to $37.5 million, up 78%
    over the prior year quarter
  *Cost per acquisition ("CPA") in the first quarter was $72, a decrease of
    12% over the prior year period
  *Total paid memberships of 1,951,774 at March 31, 2013, up 60%
    year-over-year
  *First quarter cash provided by operations of $9.9 million

INDIANAPOLIS, April 24, 2013 (GLOBE NEWSWIRE) -- Angie's List, Inc.
(Nasdaq:ANGI) announced today first quarter 2013 financial results for the
quarter ended March 31, 2013.

"Our business grew very well in the first quarter, achieving new records for
membership, service provider revenue and total revenue, due to continued
strong and consistent operating metrics," said Angie's List CEO Bill Oesterle.
"We continue to gain operating leverage and produced cash flow from our
operations. Our first quarter performance demonstrates our ability to continue
to rapidly grow our business and produce cash flow, while simultaneously, and
significantly, increasing our investments in technology and products. These
results reinforce our confidence in our strategy and the long-term operating
and financial results we expect to produce."

Key Operating Metrics

Three months ended                                                 
                                              3/31/13    3/31/12    Change
Total paid memberships (end of period)         1,951,774 1,221,387 60%
Gross paid memberships added (in period)       274,896   215,341   28%
Marketing cost per paid membership acquisition $72      $82      (12%)
(in period)
First-year membership renewal rate (in period) 73%        73%        flat
Average membership renewal rate (in period)    75%        76%        (1.0) pts
Participating service providers (end of        39,265    27,100    45%
period)
Total service provider contract value (end of  $150,262 $87,335  72%
period, in thousands)

Market Cohort Analysis

"Our cohorts continued to perform very well in the first quarter," continued
Oesterle."Each cohort recorded significant membership growth with higher
penetration rates and increasing total revenue per average paid member." 

                                     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      $5,092,477 $42.49     $113.35    $1,272,990 381,785     9.1%        40%
2003
                                                                                  
2003 - 35      3,108,535   37.26       89.24       1,318,639  1,064,129   7.0%        62%
2007
                                                                                  
2008 - 103     154,654     16.38       27.09       186,423    454,629     7.2%        63%
2010
                                                                                  
Post   81      12,756      13.39       18.66       52,619     51,231      3.6%        **
2010
                                                                                  
      229                                                    1,951,774              60%
                                                                                  
Cohort table presents financial and operational data for the twelve months               
ended 3/31/2013
* Demographic information used in penetration rate calculations is based on a third party study we
commissioned in March, 2013.
According to the study, the number of U.S. households in our target                     
demographic was 31 million.
** Not                                                                              
meaningful

First Quarter Results

First quarter 2013 total revenue was $52.2 million, an increase of 68 percent
compared to $31.1 million in the prior year period. Membership revenue in the
first quarter of 2013 was $14.6 million, an increase of 47 percent compared to
the prior year period.Service provider revenue was the largest component of
total revenue at $37.5 million and the fastest growing with a 78 percent
growth rate year-over-year. Service provider revenue includes revenue from
advertising contracts and fees from e-commerce transactions.Advertising
revenue was $32.9 million in the first quarter of 2013, an increase of 89
percent compared to the prior year period and e-commerce revenue was $4.7
million, an increase of 24 percent year-over-year.

Marketing expense increased 12 percent, or $2.1 million, compared to the prior
year period. Net loss was $7.9 million, with selling expense of $19.6 million
and marketing expense of $19.7 million, compared to a net loss of $13.5
million with selling expense of $12.4 million and marketing expense of $17.6
million in the prior year period. Adjusted EBITDA loss, a non-GAAP financial
measure, was $5.8 million, compared to a loss of $11.8 million in the prior
year period.

"We remain focused on our unit economics and they continued to improve in the
first quarter," said Chuck Hundt, Interim Chief Financial Officer."We are
pleased with the continued leverage we have achieved as well as our cash
generated from operations during the period.We will continue to invest in
acquiring new members, adding advertising service providers and innovating
products to drive further scale and penetration, while maintaining secure
levels of liquidity."

Business Outlook

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

  *Total revenue in the range of $58.5 million to $59.5 million.
  *Marketing expense in the range of $27.8 million to $28.8 million.

Conference Call Information

The company will host a conference call on April 24, 2013 atapproximately
5:00 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 30283709
through April 30, 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 2 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, 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)
                                                    March 31, December 31,
                                                    2013      2012
                                                    (Unaudited)
Assets                                                        
Cash and cash equivalents                            $42,613   $42,638
Restricted cash                                      50        50
Short term investments                               20,313    10,460
Accounts receivable, net                             9,733     7,787
Prepaid expenses and other current assets            19,284    19,810
Total current assets                                 91,993    80,745
                                                             
Property and equipment, net                          13,092    12,079
Goodwill                                             415       415
Amortizable intangible assets, net                   2,189     2,356
Deferred financing fees, net                         575       634
Total assets                                         $108,264  $96,229
                                                             
Liabilities and stockholders' equity (deficit)                
Accounts payable                                     $6,697    $6,489
Accrued liabilities                                  25,432    14,058
Deferred membership revenue                          28,587    27,627
Deferred advertising revenue                         27,959    23,160
Total current liabilities                            88,675    71,334
                                                             
Long-term debt, including accrued interest           14,881    14,869
Deferred membership revenue, noncurrent              4,347     4,330
Deferred advertising revenue, noncurrent             298       214
Deferred income taxes                                163       163
Total liabilities                                    108,364   90,910
                                                             
Stockholders' equity (deficit):                               
Common stock                                         67        66
Additional paid-in-capital                           250,853   248,326
Treasury stock                                       (23,719)  (23,719)
Accumulated deficit                                  (227,301) (219,354)
Total stockholders' equity (deficit)                 (100)     5,319
Total liabilities and stockholders' equity (deficit) $108,264  $96,229


Angie's List, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
                                                              
                                                 Three Months Ended March 31,
                                                              
                                                 2013          2012
                                                 (Unaudited)
Revenue                                                        
Membership                                      $14,637       $9,975
Service provider                                37,534        21,119
                                                              
Total revenue                                    52,171        31,094
                                                              
Operating expenses                                             
Operations and support                          8,298         5,775
Selling                                         19,645        12,409
Marketing                                       19,722        17,606
Technology                                      5,595         3,127
General and administrative                      6,380         5,171
Total Operating Expenses                         59,640        44,088
Operating loss                                   (7,469)      (12,994)
                                                              
Interest expense, net                           463           456
                                                              
Loss before income taxes                         (7,932)      (13,450)
Income tax expense                               15          ----
                                                              
Net loss                                         $(7,947)    $(13,450)
                                                              
Net loss per common share – basic and diluted     $(0.14)     $(0.24)
                                                              
Weighted average common shares outstanding –      57,949        56,964
basic and diluted
                                                              
Non-cash stock-based compensation                              
Operations and support                           $16           $----
Selling                                          25            ----
Technology                                       215           146
General and administrative                       566           534
Total non-cash stock-based compensation           $822          $680
                                                              
Reconciliation of adjusted EBITDA (loss) to net                
loss (Unaudited):
Net loss:                                         $(7,947)    $(13,450)
Income tax                                       15            ----
Interest expense, net                            463           456
Depreciation and amortization                    842           529
Non-cash stock-based compensation                822           680
Adjusted EBITDA (loss)                            $(5,805)    $(11,785)


Angie's List, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
                                                              
                                                 Three Months Ended March 31,
                                                 2013          2012
                                                 (Unaudited)
Operating activities                                           
Net loss                                          $(7,947)    $(13,450)
Adjustments to reconcile net loss to net cash                  
provided by (used in) operating activities:
Depreciation and amortization                     842           529
Amortization of debt discount, deferred financing 162           65
fees andbond premiums
Noncash compensation expense                      822           680
                                                              
Changes in certain assets:                                     
Accounts receivable                               (1,946)       (1,293)
Prepaid expenses and other current assets         526           (3,754)
Changes in certain liabilities:                                
Accounts payable                                  208           (2,462)
Accrued liabilities                               11,374        13,316
Deferred advertising revenue                      4,883         2,791
Deferred membership revenue                       977           1,308
Net cash provided by (used in) operating          9,901         (2,270)
activities
                                                              
Investing activities                                           
Restricted cash                                   ----          250
Purchase of short-term investments                (9,944)       ----
Property and equipment                            (1,514)       (1,318)
Data acquisition costs                            (174)         (715)
Net cash used in investing activities             (11,632)      (1,783)
                                                              
Financing activities                                           
Proceeds from common stock issuances under        1,706         16
employee stock option plans
Net cash provided by financing activities         1,706         16
                                                              
Net decrease in cash and cash equivalents         (25)          (4,037)
Cash and cash equivalents at beginning of period  42,638        88,607
Cash and cash equivalents at end of period        $42,613     $84,570

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