Angie's List announced today its net profit rose 15.3% in 2013's fourth quarter from the year-earlier period to reach $2.8 million. Revenues climbed to $68.8 million, a 48.9% gain that drew three-quarters of its propulsion from increased payments by the contractors, tradespeople, medical workers, and other "service providers" who pay to get identified on the popular online review site.
Despite the fourth-quarter gains, for all 2013 Angie's List recorded a net loss of $33 million. That's an improvement from 2012's net loss of $52.9 million, but it also means that the service has racked up at least seven consecutive years of net losses, with total losses of over $210 million.
As usual, the company's earnings announcement focused on its 39% rise in total paid memberships, to 2.5 million and its 39% rise in service providers, to 46,329. It now operates in 105 markets nationwide.
"We are reporting a solid fourth quarter capping a year that included many significant milestones," CEO Bill Oesterle said in a statement. "We executed well on our strategic objectives in 2013, including making meaningful investments in our products and technology, strengthening our ability to monetize our membership through our marketplace initiatives and delivering excellent improvements in operating leverage."
Membership revenue rose 29.4% to $17.7 million while money taken in from service providers jumped 57% to $51 million.
On the expense side, Angie's List noted its General and Administrative line includes a $4 million accrual "for the pending settlement of
certain litigation. Angie's List and Plaintiff have agreed in principle to
settlement terms, which remain subject to court approval." Its $2.8 million fourth-quarter net includes the pending