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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Angie's List (NASDAQ:ANGI) runs a website which allows paid members to find, hire, and rate local service providers. Members on the site pay a fee to find qualified professionals such as plumbers, automotive mechanics, and doctors. Angie's List focuses on purchases which can result in a high cost if incorrectly done. As a result, customers are willing to pay a membership fee to Angie's List in order to gain access to member-reviewed professionals. In addition to the membership fees, Angie's List makes money by allowing businesses which are well reviewed to advertise on their site.[1]
Business Overview
For the full year 2010, Angie's List reported a total revenue of $59M. For the first 9 months of 2011, the company reported a total revenue of $62.6M. Despite this improvement, the company recorded a net loss for the first 9 months of 2011 of $43.2M. This was largely due to a substantial marketing expense of $48M. [2]
New Updates
The company's initial public offering of stock on the NASDAQ occurred on November 16, 2011. The company offered 8.8M shares each for $13. This was at the top of the $11-$13 price range. The deal raised a total of $114M. The lead manger of the deal was BofA Merrill Lynch.[3]
Trends & Forces
Substantial marketing expenses
Angie's List has historically recorded a net loss mostly because of a very large marketing expense. Angie's List believes that this marketing expense is necessary in order to build the initial user base necessary to create a base of reviews. As a result, the company believes that this expense will no longer need to be as large in the future. However, if such a substantial marketing expense is necessary simply to grow the user base at a fixed rate, then the company may not be able to become profitable. [4]
- ↑ SNGI S-1/A 2011 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA" p. 9
- ↑ SNGI S-1/A 2011 PROSPECTUS SUMMARY "Our Company" p. 1
- ↑ Renaissance Capital - IPO Home "Angie's List prices IPO at $13.00, high end of the range" 16 Nov 2011
- ↑ Seeking Alpha "Angie's List IPO: Party Like It's 1999? No Thanks" 20 Nov 2011
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