Angie's List posted a $3.8 million net loss in the first quarter, less than half its loss in the year-earlier quarter, as overall revenues jumped 39% while the number of participating service providers climbed 26%, the company announced today.
As usual, advertising from remodelers, other service providers, and health professionals provided the bulk of the Indianapolis-based company's cash flow. Advertising revenue rose 46% from 2013's first quarter to reach $48.1 million, while e-commerce revenue in the same January-to-March period gained 34% to hit $6.3 million. Membership revenue, meanwhile, climbed 25% to total $18.3 million.
The net losses continued because operating expenses increased 27% to total nearly $76 million. Marketing expenses increased 19% to $23.5 million while expenses related to the sales of Angie's List products grew 33% to $26.1 million.
"We are pleased with our performance during the first quarter with respect to member and revenue growth, as well as our generation of cash from operations," chief financial officer Tom Fox said in a statement. "The results demonstrate our ability to drive scale in the business while delivering margin improvement and maintaining secure levels of liquidity."
Today's reported first-quarter losses follow a 2013 in which Angie's List had a net loss of $33 million and a 2012 in which the red ink was $52.9 million deep. With the new report, the company has had total losses of nearly $215 million over at least the past seven years.
The earlier reports prompted a discussion on this site regarding whether remodelers should try to starve Angie's List of revenue by boycotting it. More than 200 people offered comments, 60% of them supporting the idea.