The net loss at Angie's List deepened to $8.1 million in the second quarter, the company revealed today in an earnings report that trumpeted its growth in non-paying members heading into its takeover by HomeAdvisor.

That $8.1 million loss compares with the $4.7 million net loss it incurred in the April-to-June 2016 period. Revenue from service providers dropped 7% to $62.6 million. Revenue from members sank roughly a third, to $10.2 million, as the company continued its switch to a "freemium" model in which consumers now can sign up for basic services from Angie's List for free and don't begin paying until they decide to take certain additional services.

IAC's Home Advisor and Angie's List announced a deal May 1 that will create a new publicly traded business called ANGI Homeservices Inc. and that will maintain both companies' brands. Once the deal closes--which Angie's List reaffirmed today is likely to take place in the fourth quarter--IAC will own between 87% and 90% of the combined company and 98% of the voting shares.

Scott Durchslag, president and CEO of Angie's List, stressed the bright side in the company's earnings announcement. "We achieved several key milestones this quarter," he said. "We surpassed 6 million members, nearly doubling our base from a year ago. We also had the highest number of visits to our site in the history of Angie's List. This progress speaks to the strength of our brand and the appeal of our freemium offer."

Growing and engaging the membership base matters because the marriage with HomeAdvisor is founded on the notion that Angie's List will bring customers while HomeAdvisor will deliver service providers. The goal is to create a system in which consumers and service providers can find and engage each other in an efficient, web-supported manner.