Angie's List trimmed its net loss in the third quarter to $13.5 million from $18.5 million in the year-earlier period on a 56% rise in revenue to $65.5 million, the company reported today.
The latest red-ink report means the Indianapolis-based pro-referral service has recorded nearly $179 million in net losses since 2009. As usual, the company's announcement focused instead on its 44% year-over-year increase in total paid memberships (to 2.4 million), the 9% rise in memberships added in the July-to-September period (a total of 371,318), and the fact that 78% of its members renewed (no change).
"Our third-quarter growth was driven by solid results across our key operating metrics," CEO Bill Oesterle said. "We added a record number of new members while making significant investments in the business."
Membership accounted for just 26% of Angie's List revenue in the quarter, or $17.1 million. Service providers—mainly professional remodelers, tradesmen, and others whose activities are the subject of member reviews and recommendations—contributed the other $48.4 million in revenue. Of that, $42 million came from advertising that the pros bought, an increase of 65% from 2012's third quarter. E-commerce transactions, meanwhile, rose 70% year over year to reach $6.4 million.
For the fourth quarter, Angie's List forecast even more revenue—around $68 million to $69 million. It didn't forecast earnings. —Craig Webb is editor-in-chief of REMODELING. On Twitter, follow him at @craiglwebb and REMODELING at @remodelingmag.
