Another high revenue grower with no profits to be seen.... which on Wall Street is a win win!
- Angie's List priced its offering of nearly 8.8 million shares at $13 each, the top of its range, late Wednesday.
- The company was founded in 1995. Angie's List runs reviews of dentists, doctors, veterinarians, gardeners, plumbers and other businesses offering local services. At the ripe age of 16, it's much older than its fellow Internet companies that have recently gone public, including Groupon, LinkedIn and Pandora. But like most of its younger IPO-ing peers, Angie's List is not profitable. In 2010, the company reported a $27.2 million net loss on sales of $59 million.
- For the first nine months of 2011, Angie's List pulled down almost $62.6 million --- up from $42.9 million for the same period last year. But the company logged a $43.2 million loss at the same time, which is far steeper than its $19 million lost in the first nine months of 2010.
- Angie's List has two revenue streams. When the site launches in a new area, it offers free memberships to attract new users and reviews. After about two years, the new market is converted to paid memberships, where readers have to pay to access reviews. An Angie's List representative said rates vary by market, but subscriptions cost an average of $6 per month.
- The site is now in 175 paid membership markets in the U.S., and in October it passed the 1 million mark for paying members.
- Angie's List also lets service providers who are highly rated by its members advertise discounts and other promotions on the site. As of September 30, more than 210,000 of the 815,000 service providers reviewed on Angie's List were eligible to advertise.
- Only 10% of the eligible service providers were advertising as of September 30, but that business makes up most of Angie's List's revenue. In 2010, service providers paid $33.9 million and members paid $25.1 million in fees.