Angie’s List Quarterly Income Shifts In Right Direction

With a new interim CEO under its wings, the local services marketplace Angie’s List may be on the mend. But it’s not out of hot water yet.

The company posted a second-quarter revenue of roughly $87.3 million, which was an 11 percent growth from the same quarter the year prior. Angie’s List posted a net loss of roughly $8.3 million, and despite still being in the red was significantly improved from the year prior. In fact, that loss was a 55 percent improvement from 2014’s Q4 that saw a loss of roughly $18.4 million.

“We continued to execute on our strategy to grow revenue, increase margins and invest for growth,” said Angie’s List Interim CEO Mark Howell. “Our efforts manifested in the proliferation of eCommerce, operating efficiency and the continued development of our technology platform and product roadmap.”

During his remarks on the earnings call with analysts, Howell shared more about the company’s vision of how the company can grow revenue, increase margins and invest for growth. This includes investing in the company’s products and technology. He also spoke about the company’s eCommerce focus.

“ECommerce is a strategic incremental and rapidly expanding addition to our portfolio. We are focused on growing these revenue streams through three unique but related products: Search, Shop and SnapFix. Search is the foundation on which Angie’s List was built, creating the best possible match for members and service providers,” Howell said.

In terms of specific eCommerce figures, Howell said Angie’s List increased inventory 143 percent and grew unit volume by 22 percent to 205,000 units. It also increased GMV by 37 percent in the quarter, compared to the same quarter in 2014.

“We are also continuing to see a growing percent of members that have purchased eCommerce,” he said. “With a marketplace foundation now in place, we are shifting from building to execution. Our increased focus on attracting consumers and members to our Shop and SnapFix products contributed to the highest level of eCommerce engagement ever.”

Howell also spoke about additional opportunities for monetization, which includes testing more subscription options and studying how traffic and searches on the site relate to conversion rates. From there, Angie’s List plans to monetize that increased traffic with more investments to spur more transactions.

“We realized significant recent success in both growth and engagement in our eCommerce marketplace. We are creating more relevant service cues, redesigning the shop experience, and building our merchandising and conversion capabilities, while testing ways to more effectively monetize our rapid growth in eCommerce,” Howell said.

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