Investors appear to be more than a little disappointed after hearing the financial numbers Angie's List released for the company's fourth quarter after the markets closed yesterday. Share prices have fallen more than 19% in after hours trading after the company reported fourth quarter earnings short of what had been anticipated. The Indianapolis-based company reported net income of just $2.8 million even as revenues increased 49% over the same period last year.
The company's financial numbers indicate that revenues derived from service providers are dwarfing the revenues it receives from consumers who purchase memberships from the website and rate those same service providers, a turnabout that has caused critics to question the reliability of the ratings the online consumer website gives to service providers. It received $51 million in revenues from service providers, an increase of 57% over the prior year's period, compared to $17.7 million it received from membership fees, which represented a 29% increase over the prior year's period. The company earned another $45 million in advertising revenues, a 72% increase year-over-year.
The small profits made in the last two quarters of last year weren't enough to stem the company's perfect record of losing money every year since its inception nearly two decades ago. Net losses for its 2013 fiscal year were $33 million, down from the $45.3 million it reported losing in 2012. The net loss came despite a 58% increase in its overall revenues of $245.6 million. Membership revenue of $65.3 million increased 37 percent year-over-year and service provider revenue of $180.3 million increased 67 percent compared to the prior year period.
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