Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  Angie's List Inc    ANGI

Delayed Quote. Delayed  - 07/29 07:34:59 pm
8.34 USD   -1.77%
07/27 ANGIE LIST : tops 2Q profit forecasts
07/27 ANGIE LIST : Reports Second Quarter 2016 Results
07/26 ANGIE LIST : Tech Veteran Named to Prestigious Group
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

Angie List : LIST, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/28/2016 | 11:02pm CEST
This Quarterly Report on Form 10-Q (this "Form 10-Q") contains statements that
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, each as amended.
All statements other than statements of historical fact, including statements
regarding market and industry prospects and future results of operations or
financial position, made in this Form 10-Q are forward-looking. In many cases,
you can identify forward-looking statements by terminology, such as "may",
"should", "will", "expects", "intends", "plans", "anticipates", "believes",
"estimates", "predicts", "potential" or "continue" or the negative of such terms
and other comparable terminology. The forward-looking information may include,
among other information, statements concerning our estimated and projected
earnings, revenues, costs, expenditures, cash flows, growth rates, financial
results, our plans and objectives for future operations, changes to our business
model, growth initiatives or strategies (including, but not limited to, merger
and acquisition activity), profitability plans or the expected outcome or impact
of pending or threatened litigation. There may also be other statements of
expectations, beliefs, future plans and strategies, anticipated events or trends
and similar expressions concerning matters that are not historical facts. Risks
and uncertainties may affect the accuracy of forward-looking statements,
including, without limitation, those set forth in Item 1A. of Part I of the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2015, in Item 1A. of Part II of the Company's Quarterly Report on Form 10-Q for
the quarter ended March 31, 2016 and in Item 1A. of Part II of this Form 10-Q,
as well as in other reports we file with the Securities and Exchange Commission
("SEC").

The forward-looking statements included in this report are made only as of the
date hereof. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.

Overview


We operate a national local services consumer review service and marketplace
where members can research, shop for and purchase local services for critical
needs, such as home, health and automotive services, as well as rate and review
the providers of these services across the United States. Our ratings and
reviews, which are now available to members free-of-charge, assist members in
identifying and hiring a highly-rated provider for their local service needs,
and our dynamic tools and products provide members with multiple ways to get
work done while reducing the time and effort required to hire a service
provider.

Our long-term profitable growth plan, which we announced earlier this year,
features a redefined product and service experience for members and service
providers alike, transforming our legacy business model by dropping the ratings
and reviews paywall. In addition to free memberships, our new model provides
consumers with revamped tiered membership options offering an array of premium
services at varying price points. Ultimately, service providers will also be
able to take advantage of a host of new services and tools under our new model
based on the nature and extent of the service provider's relationship with us.

Our long-term profitable growth plan entails three phases to be implemented over several years:

• Strengthen and Reposition the Core Business - includes redefining the

           paywall and launching premium consumer services, improving our member
           experience by scaling our new platform and optimizing the service
           provider sales organization to better monetize consumer traffic;


• Leverage the Home Services Platform - includes expanding value-added

           services provided on our platforms and improving our customer and
           service provider relationships with personalized offerings; and



•          Expand to Adjacencies - includes expanding our member and service
           provider bases and developing partnerships to provide additional
           value-added services.



Our new model is designed to identify and leverage more ways to attract, engage
and ultimately monetize consumer and service provider traffic on our platforms.
During the second quarter of 2016, we achieved three key milestones integral to
the implementation of our long-term profitable growth plan: (1) completed the
migration to our new technology platform, (2) dropped our ratings and reviews
paywall and launched our new tiered membership model and (3) optimized marketing
and operations. Once fully implemented, we believe our long-term profitable
growth plan will enhance the value of our service and generate accelerated
growth, retention and engagement across our platforms, which we, in turn,
believe will drive increased market penetration and meaningful revenue growth.

                                       16

--------------------------------------------------------------------------------

Table of Contents


We generate revenue from both service providers and members. We derive service
provider revenue principally from term-based sales of advertising, including on
our website and mobile applications, in our publication and through our call
center, to service providers meeting certain eligibility criteria. Our
e-commerce solutions, which are available through postings on our website and
mobile applications as well as via email promotions, offer members the
opportunity to purchase services through us from highly-rated service providers
and provide us with additional service provider monetization opportunities.
Service provider revenue as a percentage of total revenue has continued to
increase as we evolve and enhance the value proposition we offer service
providers and leverage new service provider monetization strategies, and we
expect this trend to continue following the recent removal of our ratings and
reviews paywall. Our primary source of membership revenue is subscription fees,
which are typically charged in advance and are now generated via our premium
membership tiers. Membership revenue as a percentage of total revenue has
continued to decline in recent periods due to the downward pressure on our
membership revenue attributable to our former tiered membership pricing model,
and we expect this trend to continue as we are now offering a free membership
tier for consumers.

Market Cohort Analysis

We compile certain financial and operating data for our markets, grouped by the
years in which the markets transitioned to paid membership status. Since our
business has recently evolved, particularly with respect to the composition of
our free and paid membership bases, we will no longer be including the market
cohort analysis in future filings as we do not believe it will continue to
provide a meaningful evaluation of our business. However, given that our prior
paid membership model remained in place through early June 2016, we continued to
utilize the market cohort analysis to understand and evaluate our performance
and underlying trends in our business for the majority of the three and six
month periods ended June 30, 2016 and determined it was appropriate to include
in this Form 10-Q filing as a result.

The table below summarizes this data for the twelve month periods ended June 30,
2016 and June 30, 2015 by each respective cohort. The pre-2003 cohort includes
our ten most established markets where we initially built out our business
model. The markets in this cohort include several mid-sized urban markets in the
Midwest as well as Chicago and Boston. The 2003-2007 cohort is comprised of the
first major subset of markets, including many of our largest potential markets,
that we targeted in our national expansion strategy. The post-2007 cohort
primarily consists of smaller markets that we entered to fill out our national
presence.
                                      Pre-2003                    2003-2007                 Post-2007                    Total
                                      June 30,                    June 30,                   June 30,                   June 30,
                                 2016          2015          2016         

2015 2016 2015 2016 2015 Number of Markets

                     10            10            35            35         208          208           253            253
Average Revenue/Market(1)    $ 7,884,705   $ 7,856,862   $ 6,136,688   $ 6,003,238   $ 223,299    $ 218,547   $ 1,344,179    $ 1,320,711
Average Marketing            $ 1,056,367   $ 1,214,640   $ 1,111,474   $ 1,276,797   $  97,676    $ 112,474   $   275,817    $   317,110
Expense/Market(2)

Membership Revenue/Paid      $     24.12   $     28.38   $     22.52   $     25.83   $   14.68    $   15.09   $     20.80    $     23.47
Member(3)
Service Provider                  105.30        108.97        101.47       

102.40 42.08 42.10 86.83 87.70 Revenue/Paid Member(4) Total Revenue/Paid Member $ 129.42 $ 137.35 $ 123.99 $ 128.23 $ 56.76 $ 57.19 $ 107.63 $ 111.17


Total Paid Memberships(5)        608,818       609,644     1,729,448     1,735,024     809,300      827,398     3,147,566      3,172,066
Estimated Penetration                 16 %          17 %          13 %          13 %        11  %        12 %          13  %          13 %
Rate(6)
Annual Membership Growth               - %          14 %           - %          13 %        (2 )%         9 %          (1 )%          12 %
Rate(7)


(1) Average revenue per market is calculated by dividing the revenue recognized

for the markets in a given cohort by the number of markets in the cohort at

    period end.



(2) Average marketing expense per market is calculated by first allocating

marketing expense to each cohort based on the percentage of our total target

demographic for all markets in each cohort, as determined by third-party

data, and then dividing the allocated cohort marketing expense by the number

of markets in the cohort at period end. We calculate this average per market

to facilitate comparisons among cohorts, but it is not intended to represent

typical characteristics of actual markets within the cohort. According to

demographic studies by Merkle Inc. that we commissioned in December and June

of 2015, there were approximately 27 million households in the United States

in our target demographic, which consists of homeowners aged 35 to 64 with an

annual household income of at least $75,000, including 24 million households

located in our markets. The December 2015 study determined that the average

number of households per market in our target demographic was 370,000,

390,000 and 30,000 for the pre-2003, 2003-2007 and post-2007 cohorts,

respectively, while the June 2015 study determined the average number of

households per market in our target demographic to be 370,000, 380,000 and

    30,000, respectively.



                                       17

--------------------------------------------------------------------------------

Table of Contents

(3) Membership revenue per paid membership is calculated as membership revenue in

the cohort divided by the average number of paid memberships in the cohort.

We calculate this average per market to facilitate comparisons among cohorts,

but it is not intended to represent typical characteristics of actual markets

    within the cohort.



(4) Service provider revenue per paid membership is calculated as service

provider revenue in the cohort divided by the average number of paid

memberships in the cohort. We calculate this average per market to facilitate

    comparisons among cohorts, but it is not intended to represent typical
    characteristics of actual markets within the cohort.


(5) Total paid memberships in each cohort as of June 30, 2015 includes a de

minimis number of complimentary memberships in what formerly comprised our

paid markets. These complimentary memberships are no longer included in our

paid membership counts and are therefore not reflected in the paid membership

totals presented in the table above for each cohort as of June 30, 2016.

(6) Estimated penetration rate is calculated by dividing the number of paid

memberships in a given cohort as of June 30, 2016 and 2015, respectively, by

the number of households meeting our target demographic criteria in that

    cohort.



(7) Annual membership growth rate represents the rate of increase in the total

number of paid memberships in the cohort between June 30, 2016 and 2015 for

2016 and June 30, 2015 and 2014 for 2015.

Our average revenue per market has generally grown with the maturity and corresponding increased penetration of our markets. Total revenue per paid membership fluctuates from period to period, reflecting the impact of a variety of factors, including:

• Our average service provider contract term typically approximates one

           year, and we do not increase rates for a given service provider 

prior

           to contract renewal. As such, there is a lag in our ability to
           leverage increased penetration in a market into increased
advertising
           rates;


• On average across all markets, we are utilizing lower membership

           pricing and generating reduced membership revenue per paid

member as a

           result of our previous tiered pricing membership structure, and 

more

           recently, the introduction of a free membership tier for 

consumers. As

           our business evolves, we may again alter or refine our strategy with
           regard to membership pricing in the future;


• Our approach to generating revenue from e-commerce continues to evolve

           as we refine the value proposition we offer to service providers 

and,

           concurrently, our service provider monetization strategies.
           Accordingly, we have in the past adjusted our approach with

respect to

           e-commerce take rates in order to more effectively monetize our
           e-commerce offerings, and we may do so again in the future; and



•          As we implement and scale our new technology platform, we have
           experienced and may continue to experience revenue losses as a result
           of temporary disruptions common to significant platform
migrations
           such as this one.



At June 30, 2016, total revenue per paid membership was down across all cohorts
and in total as compared to June 30, 2015, reflecting the impacts of declining
average membership pricing and, more recently, near-term revenue losses
attributable to transitional challenges associated with the migration to our new
technology platform. We intend to continue to evaluate and adopt innovative
packaging, pricing and monetization strategies, such as our tiered membership
offerings, as well as introduce new products and services, in an effort to
deliver compelling value to our members and service providers and thereby
generate growth, retention and engagement across the business. Although the
dynamics associated with the introduction of such strategies have caused and may
continue to cause revenue per paid membership to decline sequentially in some or
all of our cohorts in the near term, we believe that these strategies are
critical to driving increased market penetration and meaningful revenue growth
over time.

                                       18

--------------------------------------------------------------------------------

Table of Contents

Key Operating Metrics


In addition to the line items in our condensed consolidated financial
statements, we regularly review a number of other operating metrics related to
our membership and service provider bases to evaluate our business, determine
the allocation of resources and make decisions regarding business strategies. We
believe these metrics are useful for investors and analysts to understand the
underlying trends in our business. However, as our business evolves, the metrics
we currently identify as critical to the evaluation of our operations and
performance may change.

The following table summarizes our key operating metrics, which are unaudited, for the three and six months ended June 30, 2016 and 2015:

                                                   Three Months Ended             Six Months Ended
                                                         June 30,                      June 30,
                                                   2016           2015           2016           2015
Total free memberships (end of period)            152,586              -        152,586              -

Total paid memberships (end of period) 3,147,566 3,172,066

   3,147,566      3,172,066
Total memberships (end of period)               3,300,152      3,172,066    

3,300,152 3,172,066


Gross free memberships added (in period)          152,586              -        152,586              -

Gross paid memberships added (in period) 129,534 289,866

317,776 519,853


Average paid membership renewal rate (in               73 %           78 %           74 %           77 %

period)


Participating service providers (end of            54,690         53,514         54,690         53,514
period)
Total service provider contract value (end     $  258,467     $  266,131     $  258,467     $  266,131
of period, in thousands)
Total service provider contract value          $  151,813     $  159,279     $  151,813     $  159,279
backlog (end of period, in thousands)



Total memberships. Total free memberships reflects the number of free members as
of the end of the period who joined subsequent to us dropping our ratings and
reviews paywall in June 2016. Total paid memberships represents the number of
paid members at the end of each period presented. Total paid memberships as of
June 30, 2015 also included a de minimis number of complimentary memberships in
what formerly comprised our paid markets. These complimentary memberships are no
longer included in our paid membership counts and are therefore not reflected in
the paid membership totals presented in the table above as of June 30, 2016. We
generally expect that there will be one membership per household and, as such,
each membership may actually represent multiple individual consumers.
Gross memberships added. Gross free memberships added represents the number of
new free members added during the reporting period, since we dropped our ratings
and reviews paywall in June 2016. Gross paid memberships added reflects the
total number of new paid members added in a reporting period.
Average paid membership renewal rate. Average paid membership renewal rate
reflects the percentage of all paid memberships expiring in the reporting period
that are renewed as paid members.
Participating service providers. We include in participating service providers
the total number of service providers under contract for advertising, e-commerce
or both at the end of the period.
Total service provider contract value. We calculate service provider contract
value as the total contract value of active service provider contracts at the
end of the period. Contract value is the total payment obligation of a service
provider to us, including amounts already recognized in revenue, over the stated
term of the contract.
Total service provider contract value backlog. Service provider contract value
backlog consists of the portion of service provider contract value at the end of
the period that is not yet recognized as revenue.

                                       19

--------------------------------------------------------------------------------

Table of Contents

Results of Operations


The following tables set forth our results of operations for the periods
presented in absolute dollars and as a percentage of our revenue for those
periods. The financial results below are not necessarily indicative of future
results.
                                       Three Months Ended          Six Months Ended
                                             June 30,                   June 30,
                                        2016          2015         2016         2015

                                         (in thousands)             (in thousands)
Revenue
Membership                          $    15,645    $ 16,910     $  31,979    $ 34,249
Service provider                         67,415      70,425       134,937     136,629
Total revenue                            83,060      87,335       166,916     170,878
Operating expenses
Operations and support (1)               10,172      15,456        22,381      29,454
Selling (1)                              26,983      31,552        54,815      59,844
Marketing (1)                            14,432      28,726        33,547      47,555
Product and technology (1)               13,323       9,571        23,357      17,987
General and administrative (1)           11,995       9,586        30,042      18,312
Operating income (loss)                   6,155      (7,556 )       2,774      (2,274 )
Interest expense, net                     1,352         784         1,968       1,696

Income (loss) before income taxes 4,803 (8,340 ) 806

   (3,970 )
Income tax expense                            6           9            13          19
Net income (loss)                   $     4,797    $ (8,349 )   $     793    $ (3,989 )


(1) Includes non-cash stock-based
compensation expense as follows:
Operations and support                         $     57     $     29     $     88     $     49
Selling                                             430          149          709          160
Marketing                                           121           76          227          137
Product and technology                              566          226          875          422
General and administrative                        2,517        1,787        4,819        3,755
Total non-cash stock-based compensation        $  3,691     $  2,267     $  6,718     $  4,523
expense



                                      Three Months Ended        Six Months Ended
                                            June 30,                 June 30,
                                      2016          2015        2016         2015
Revenue
Membership                              19 %          19  %       19 %         20  %
Service provider                        81 %          81  %       81 %         80  %
Total revenue                          100 %         100  %      100 %        100  %
Operating expenses
Operations and support                  12 %          18  %       13 %         17  %
Selling                                 33 %          36  %       33 %         34  %
Marketing                               17 %          33  %       20 %         28  %
Product and technology                  16 %          11  %       14 %         11  %
General and administrative              14 %          11  %       18 %         11  %
Operating income (loss)                  8 %         (9)  %        2 %        (1)  %
Interest expense, net                    2 %           1  %        1 %          1  %
Income (loss) before income taxes        6 %        (10)  %        1 %        (2)  %
Income tax expense                       - %           -  %        - %          -  %
Net income (loss)                        6 %        (10)  %        1 %        (2)  %



                                       20

--------------------------------------------------------------------------------

Table of Contents

Comparison of the Three Months Ended June 30, 2016 and 2015

Revenue
                                                        Three Months Ended
                                                              June 30,
                                                       2016              2015         % Change

                                                       (dollars in thousands)
Revenue
Membership                                        $      15,645     $     16,910          (7)  %
Service provider                                         67,415           70,425          (4)  %
Total revenue                                     $      83,060     $     87,335          (5)  %

Percentage of revenue by type
Membership                                                   19 %             19 %
Service provider                                             81 %             81 %
Total revenue                                               100 %            100 %

Total paid memberships (end of period)                3,147,566        3,172,066          (1)  %
Gross paid memberships added (in period)                129,534          

289,866 (55) % Participating service providers (end of period) 54,690 53,514

            2  %



Total revenue decreased $4.3 million for the three months ended June 30, 2016 as compared to the three months ended June 30, 2015.


Membership revenue decreased $1.3 million for the three months ended June 30,
2016 as compared to the three months ended June 30, 2015, primarily attributable
to the combined impact of a 55% decline in gross paid memberships added period
over period, lower membership renewal rates and a 10% decrease in membership
revenue per average paid membership quarter over quarter. The declines in gross
paid memberships added and membership renewal rates were largely the result of
adjustments in the level of our advertising spend, representing a reduction of
$16.1 million, in the second quarter of 2016 as compared to the same quarter in
2015. The decrease in membership revenue per average paid membership was due to
reductions in membership fees, on average, across all markets under our former
tiered membership pricing structure. Additionally, we introduced a free
membership offering in all markets in June 2016, officially dropping our ratings
and reviews paywall to non-paying consumers and further negatively impacting
membership revenue, as anticipated. Membership revenue accounted for 19% of
total revenue for each of the three months ended June 30, 2016 and 2015. We
generally expect membership revenue as a percentage of total revenue to decline
in future periods due to downward pressure on membership revenue associated with
the evolution of our membership plan offerings and pricing, including the recent
introduction of a free membership tier for consumers.

Service provider revenue, which consists primarily of revenue from advertising
contracts with service providers, decreased $3.0 million for the three months
ended June 30, 2016 as compared to the three months ended June 30, 2015,
attributable to declines in service provider advertising originations and
renewal rates, as well as increases in service provider attrition, during the
second quarter. While we experienced a modest 2% increase in the number of
participating service providers year over year, service provider contract value
and contract value backlog decreased by $7.7 million and $7.5 million,
respectively, over the same time period, reflecting, in part, the impact of
certain limited disruptions related to our recent migration to a new technology
platform. Historically, as our penetration of a given market increases, we are
typically able to charge higher rates for advertising as service providers are
able to reach a larger base of potential customers. However, as we generally
only adjust advertising rates at the time of contract renewal, growth in service
provider revenue typically trails increases in market penetration. Accordingly,
as we transition our business model and provide access to our ratings and
reviews free-of-charge, the anticipated corresponding increases in service
provider revenue may not be immediate. Revenue from our e-commerce offerings is
also included in service provider revenue and will fluctuate from period to
period as offerings and monetization strategies evolve and due to seasonality.
Declines in second quarter e-commerce unit sales, attributable to transitional
challenges associated with the implementation of our new technology platform,
also contributed to the decline in service provider revenue quarter over
quarter. Service provider revenue accounted for 81% of total revenue for each of
the three months ended June 30, 2016 and 2015. We generally expect service
provider revenue as a percentage of total revenue to increase as we evolve and
enhance the value proposition we offer service providers and leverage new
service provider monetization strategies in connection with the recent removal
of our ratings and reviews paywall, subject to any near-term negative impacts
associated with the migration to our new technology platform.

                                       21

--------------------------------------------------------------------------------

  Table of Contents

Operations and support
                                                Three Months Ended
                                                      June 30,
                                                 2016            2015      % Change

                                               (dollars in thousands)
Operations and support                      $      10,172     $ 15,456       (34)  %
Percentage of revenue                                  12 %         18 %

Non-cash stock-based compensation expense $ 57 $ 29




Operations and support expense decreased $5.3 million for the three months ended
June 30, 2016 as compared to the three months ended June 30, 2015. The most
significant factors contributing to the quarter over quarter decline in
operations and support expense were a $1.9 million decrease in publication costs
and a $1.6 million reduction in compensation and personnel-related expenditures.
The decline in publication costs was the result of our implementation of a
digital content distribution strategy wherein we increased digital distribution
of the Angie's List Magazine during the quarter, yielding a period over period
decrease in the costs incurred to provide the print magazine to our members, and
the reduction in compensation and personnel-related expenditures was driven by a
27% decrease in operations and support headcount year over year. Operations and
support expense was also positively impacted by a period over period decline in
credit card processing fees of $0.6 million, largely attributable to lower
transaction volume in the second quarter of 2016. Operations and support expense
decreased as a percentage of revenue quarter over quarter, and we believe this
trend will continue over the remainder of 2016 as we leverage identified
operations and support efficiencies.

Selling
                                                Three Months Ended
                                                      June 30,
                                                 2016            2015      % Change

                                               (dollars in thousands)
Selling                                     $      26,983     $ 31,552       (14)  %
Percentage of revenue                                  33 %         36 %

Non-cash stock-based compensation expense $ 430 $ 149




Selling expense decreased $4.6 million for the three months ended June 30, 2016
as compared to the three months ended June 30, 2015. Although selling expense
generally correlates with fluctuations in service provider revenue, we
experienced quarter over quarter leverage in selling expense as service provider
revenue decreased 4% for the three months ended June 30, 2016 as compared to the
three months ended June 30, 2015, while selling expense declined 14% over the
same time period. The primary factor driving the period over period reduction in
selling expense was prior year event costs, contributing to decreases in (i)
travel, meals and entertainment of $1.1 million, (ii) selling-related service
provider marketing expenditures of $0.8 million and (iii) outsourced services of
$0.6 million. Headcount also influenced the quarter over quarter leverage in
selling expense, as there was a 6% reduction in the total number of employees in
our sales organization from June 30, 2015 to June 30, 2016, and when coupled
with the impact of recent changes in our sales compensation plans and
organizational structure, yielded a $1.8 million decrease in selling
compensation and personnel-related costs for commissions, wages and other
employee benefits. While selling expense as a percentage of total revenue
declined in the second quarter of 2016 as compared to the second quarter of
2015, we expect that selling expense will increase, both in absolute dollars and
as a percentage of revenue, over the duration of the year due to planned
headcount growth in our sales organization.

                                       22

--------------------------------------------------------------------------------

  Table of Contents

Marketing
                                                Three Months Ended
                                                      June 30,
                                                 2016            2015      % Change

                                               (dollars in thousands)
Marketing                                   $      14,432     $ 28,726       (50)  %
Percentage of revenue                                  17 %         33 %

Non-cash stock-based compensation expense $ 121 $ 76




Marketing expense, which now includes the marketing compensation and
personnel-related costs and general marketing operating expenditures that were
formerly classified as general and administrative expenses, decreased $14.3
million for the three months ended June 30, 2016 as compared to the three months
ended June 30, 2015. While we continue to make investments in increasing our
membership base and expanding our market reach, in recent years we shifted our
marketing focus from solely driving member growth to also highlighting our
e-commerce offerings, as well as new products and services, and that strategy
remained in place during the second quarter of 2016. Accordingly, our marketing
expense is not only a reflection of the cost incurred to obtain new members but
also the marketing dollars we are spending to generate traffic to and
transactions on our platforms. For the three months ended June 30, 2016, the
most significant factor contributing to the quarter over quarter decrease in
marketing expense was a $16.1 million decline in advertising spend, as we
purposefully reduced such costs in the second quarter of 2016, as compared to
2015, ahead of a planned acceleration in advertising spend during the third
quarter of the year to highlight our new free membership offerings and related
initiatives. The period over period decline in marketing expense attributable to
reductions in advertising spend was partially offset by a $1.0 million increase
in service provider marketing costs related to our efforts to further enhance
our relationships with service providers, and a $1.0 million increase in
marketing-related outsourced service expenditures, a portion of which was
attributable to fees paid to our advertising creative agency. Consistent with
the seasonality that characterizes our business, we generally expect marketing
expense to peak in either the second or third quarter of the year. In 2016, we
are planning for this peak to occur in the third quarter in connection with the
recent launch of our long-term profitable growth plan and the removal of our
ratings and reviews paywall.

Product and technology
                                                Three Months Ended
                                                      June 30,
                                                  2016           2015       % Change

                                               (dollars in thousands)
Product and technology                      $       13,323     $ 9,571         39 %
Percentage of revenue                                   16 %        11 %

Non-cash stock-based compensation expense $ 566 $ 226




Product and technology expense increased $3.8 million for the three months ended
June 30, 2016 as compared to the three months ended June 30, 2015. The increase
in product and technology expense was largely the result of a $1.9 million
quarter over quarter increase in depreciation expense related to our new
technology platform, which we placed in service as of the end of the first
quarter of 2016. Increases in our product and technology headcount also
contributed to the period over period fluctuation in product and technology
expense. Specifically, the number of product and technology personnel we employ
increased 36% from June 30, 2015 to June 30, 2016 as we strengthened our product
and technology organizations to execute on our technology platform migration and
product roadmap, contributing to an additional $1.3 million in compensation and
personnel-related costs quarter over quarter. Product and technology expense
increased as a percentage of revenue period over period, and we expect this
trend to continue over the remainder of the year in connection with the
migration to and depreciation of our new technology platform. As utilization of
the related assets has now commenced, certain platform expenditures, including
internal labor, that do not represent qualifying upgrades, enhancements or new
functionality are no longer classified as capitalized website and software
development costs and are instead expensed as incurred.

                                       23

--------------------------------------------------------------------------------

  Table of Contents

General and administrative
                                                Three Months Ended
                                                      June 30,
                                                  2016           2015       % Change

                                               (dollars in thousands)
General and administrative                  $       11,995     $ 9,586         25 %
Percentage of revenue                                   14 %        11 %

Non-cash stock-based compensation expense $ 2,517 $ 1,787




General and administrative expense, which no longer includes the marketing
compensation and personnel-related costs and general marketing operating
expenditures that are now classified as marketing expenses, increased $2.4
million for the three months ended June 30, 2016 as compared to the three months
ended June 30, 2015. The most significant driver of the increase in general and
administrative expense period over period was a $3.4 million increase in
outsourced service expenditures and professional fees attributable to
third-party consulting costs incurred for, among other things, the execution of
our long-term profitable growth plan and optimization of our service provider
go-to-market activities. General and administrative expense increased as a
percentage of revenue for the three months ended June 30, 2016 as compared to
the three months ended June 30, 2015, and, as a percentage of revenue, we expect
period over period increases in general and administrative expense over the
course of the year as a result of the impact of personnel added in 2015 as well
as recent stock-based compensation awards.

Interest expense


Interest expense for the three months ended June 30, 2016 was $1.4 million as
compared to $0.8 million for the three months ended June 30, 2015, reflecting
the impact of recurring monthly interest payments on our outstanding long-term
debt and monthly interest charges for deferred financing fee and debt discount
amortization related to the September 2014 debt financing transaction. The
increase in interest expense was primarily attributable to a reduction in
capitalized interest in 2016 as compared to 2015. As the migration to our new
technology platform is now complete, we ceased capitalizing interest on website
and software development for the new platform as of the end of the first quarter
of 2016.

                                       24

--------------------------------------------------------------------------------

Table of Contents

Comparison of the Six Months Ended June 30, 2016 and 2015

Revenue
                                                         Six Months Ended
                                                              June 30,
                                                       2016             2015         % Change

                                                      (dollars in thousands)
Revenue
Membership                                        $     31,979     $     34,249          (7)  %
Service provider                                       134,937          136,629          (1)  %
Total revenue                                     $    166,916     $    170,878          (2)  %

Percentage of revenue by type
Membership                                                  19 %             20 %
Service provider                                            81 %             80 %
Total revenue                                              100 %            100 %

Total paid memberships (end of period)               3,147,566        3,172,066          (1)  %
Gross paid memberships added (in period)               317,776          

519,853 (39) % Participating service providers (end of period) 54,690 53,514

            2  %



Total revenue decreased $4.0 million for the six months ended June 30, 2016 as compared to the six months ended June 30, 2015.


Membership revenue decreased $2.3 million for the six months ended June 30, 2016
as compared to the six months ended June 30, 2015, primarily attributable to the
combined impact of a 39% decline in gross paid memberships added year over year,
lower membership renewal rates and a 10% decrease in membership revenue per
average paid membership for the six months ended June 30, 2016 as compared to
the six months ended June 30, 2015. The declines in gross paid memberships added
and membership renewal rates were largely the result of adjustments in the level
of our advertising spend, representing a reduction of $17.7 million, in the
first half of 2016 as compared to the same period in 2015. The decrease in
membership revenue per average paid membership was due to reductions in
membership fees, on average, across all markets under our former tiered
membership pricing structure. Additionally, we introduced a free membership
offering in all markets in June 2016, officially dropping our ratings and
reviews paywall to non-paying consumers and further negatively impacting
membership revenue, as anticipated. Membership revenue accounted for 19% and 20%
of total revenue for the six months ended June 30, 2016 and 2015, respectively.
We generally expect membership revenue as a percentage of total revenue to
decline in future periods due to downward pressure on membership revenue
associated with the evolution of our membership plan offerings and pricing,
including the recent introduction of a free membership tier for consumers.

Service provider revenue decreased $1.7 million for the six months ended
June 30, 2016 as compared to the six months ended June 30, 2015, primarily
attributable to declines in service provider advertising originations and
renewal rates, as well as increases in service provider attrition, during the
period. While we experienced a modest 2% increase in the number of participating
service providers year over year, service provider contract value and contract
value backlog decreased by $7.7 million and $7.5 million, respectively, over the
same time period, reflecting, in part, the impact of certain limited disruptions
related to our recent migration to a new technology platform. Historically, as
our penetration of a given market increases, we are typically able to charge
higher rates for advertising as service providers are able to reach a larger
base of potential customers. However, as we generally only adjust advertising
rates at the time of contract renewal, growth in service provider revenue
typically trails increases in market penetration. Accordingly, as we transition
our business model and provide access to our ratings and reviews free-of-charge,
the anticipated corresponding increases in service provider revenue may not be
immediate. Revenue from our e-commerce offerings will fluctuate from period to
period as offerings and monetization strategies evolve and due to seasonality.
Declines in e-commerce unit sales during the period, attributable to
transitional challenges associated with the implementation of our new technology
platform, also contributed to the decline in service provider revenue year over
year. Service provider revenue accounted for 81% and 80% of total revenue for
the six months ended June 30, 2016 and 2015, respectively. We generally expect
service provider revenue as a percentage of total revenue to increase as we
evolve and enhance the value proposition we offer service providers and leverage
new service provider monetization strategies in connection with the recent
removal of our ratings and reviews paywall, subject to any near-term negative
impacts related to the migration to our new technology platform.

                                       25

--------------------------------------------------------------------------------

  Table of Contents

Operations and support
                                                 Six Months Ended
                                                      June 30,
                                                 2016            2015      % Change

                                               (dollars in thousands)
Operations and support                      $    22,381       $ 29,454       (24)  %
Percentage of revenue                                13 %           17 %

Non-cash stock-based compensation expense $ 88 $ 49




Operations and support expense decreased $7.1 million for the six months ended
June 30, 2016 as compared to the six months ended June 30, 2015. The most
significant factors contributing to the year over year decline in operations and
support expense were a $2.8 million reduction in compensation and
personnel-related expenditures and a $1.6 million decrease in publication costs.
The reduction in compensation and personnel-related expenditures was driven by a
27% decrease in operations and support headcount year over year, and the decline
in publication costs was the result of our implementation of a digital content
distribution strategy wherein we increased digital distribution of the Angie's
List Magazine during the year, yielding a year over year decrease in the costs
incurred to provide the print magazine to our members. Operations and support
expense was also positively impacted by a period over period decline in credit
card processing fees of $1.1 million, which was largely attributable to lower
transaction volume in the first half of 2016. Operations and support expense
decreased as a percentage of revenue year over year, and we believe this trend
will continue over the remainder of 2016 as we leverage identified operations
and support efficiencies.

Selling
                                                 Six Months Ended
                                                      June 30,
                                                 2016            2015       % Change

                                               (dollars in thousands)
Selling                                     $    54,815       $ 59,844       (8)  %
Percentage of revenue                                33 %           34 %

Non-cash stock-based compensation expense $ 709 $ 160




Selling expense decreased $5.0 million for the six months ended June 30, 2016 as
compared to the six months ended June 30, 2015. Although selling expense
generally correlates with fluctuations in service provider revenue, we
experienced year over year leverage in selling expense as service provider
revenue decreased 1% for the six months ended June 30, 2016 as compared to the
six months ended June 30, 2015, while selling expense declined 8% over the same
time period. The primary factor driving the period over period reduction in
selling expense was a $2.4 million decrease in selling compensation and
personnel-related costs for commissions, wages and other employee benefits,
largely attributable to a 6% reduction in the total number of employees in our
sales organization from June 30, 2015 to June 30, 2016, as well as the impact of
recent changes in our sales compensation plans and organizational structure.
Prior year event costs also influenced the year over year leverage in selling
expense, contributing to decreases in (i) travel, meals and entertainment of
$1.2 million, (ii) selling-related service provider marketing expenditures of
$0.7 million and (iii) outsourced services of $0.3 million. While selling
expense as a percentage of total revenue declined for the six months ended
June 30, 2016 as compared to the six months ended June 30, 2016, we expect that
selling expense will increase, both in absolute dollars and as a percentage of
revenue, over the duration of the year due to planned headcount growth in our
sales organization.

                                       26

--------------------------------------------------------------------------------

  Table of Contents

Marketing
                                                 Six Months Ended
                                                      June 30,
                                                 2016            2015      % Change

                                               (dollars in thousands)
Marketing                                   $    33,547       $ 47,555       (29)  %
Percentage of revenue                                20 %           28 %

Non-cash stock-based compensation expense $ 227 $ 137




Marketing expense, which now includes the marketing compensation and
personnel-related costs and general marketing operating expenditures that were
formerly classified as general and administrative expenses, decreased $14.0
million for the six months ended June 30, 2016 as compared to the six months
ended June 30, 2015. While we continue to make investments in increasing our
membership base and expanding our market reach, in recent years we shifted our
marketing focus from solely driving member growth to also highlighting our
e-commerce offerings, as well as new products and services, and that strategy
remained in place during the first half of 2016. Accordingly, our marketing
expense is not only a reflection of the cost incurred to obtain new members but
also the marketing dollars we are spending to generate traffic to and
transactions on our platforms. For the six months ended June 30, 2016, the most
significant factor contributing to the year over year decrease in marketing
expense was a $17.7 million decline in advertising spend, as we purposefully
reduced such costs in the first half of 2016, as compared to 2015, ahead of a
planned acceleration in advertising spend during the third quarter of the year
to highlight our new free membership offerings and related initiatives. The year
over year decline in marketing expense attributable to reductions in advertising
spend was partially offset by a $2.5 million increase in marketing-related
outsourced service expenditures, a portion of which was attributable to fees
paid to our advertising creative agency, and $1.0 million increase in service
provider marketing costs related to our efforts to further enhance our
relationships with service providers. Consistent with the seasonality that
characterizes our business, we generally expect marketing expense to peak in
either the second or third quarter of the year. In 2016, we are planning for
this peak to occur in the third quarter in connection with the recent launch of
our long-term profitable growth plan and the removal of our ratings and reviews
paywall.

Product and technology
                                                 Six Months Ended
                                                      June 30,
                                                 2016            2015       % Change

                                               (dollars in thousands)
Product and technology                      $    23,357       $ 17,987         30 %
Percentage of revenue                                14 %           11 %

Non-cash stock-based compensation expense $ 875 $ 422




Product and technology expense increased $5.4 million for the six months ended
June 30, 2016 as compared to the six months ended June 30, 2015. The increase in
product and technology expense was largely the result of year over year
increases in compensation and personnel-related costs and depreciation expense
of $2.2 million and $2.1 million, respectively. The year over year increase in
product and technology compensation and personnel-related costs was primarily
attributable to the 36% growth in our product and technology headcount from
June 30, 2015 to June 30, 2016 as we strengthened our product and technology
organizations to execute on our technology platform migration and product
roadmap, while the increase in depreciation expense period over period was
related to our new technology platform, which we placed in service as of the end
of the first quarter of 2016. Product and technology expense increased as a
percentage of revenue year over year, and we expect this trend to continue over
the remainder of the year in connection with the migration to and depreciation
of our new technology platform. As utilization of the related assets has now
commenced, certain platform expenditures, including internal labor, that do not
represent qualifying upgrades, enhancements or new functionality are no longer
classified as capitalized website and software development costs and are instead
expensed as incurred.

                                       27

--------------------------------------------------------------------------------

  Table of Contents

General and administrative
                                                 Six Months Ended
                                                      June 30,
                                                 2016            2015       % Change

                                               (dollars in thousands)
General and administrative                  $    30,042       $ 18,312         64 %
Percentage of revenue                                18 %           11 %

Non-cash stock-based compensation expense $ 4,819 $ 3,755




General and administrative expense, which no longer includes the marketing
compensation and personnel-related costs and general marketing operating
expenditures that are now classified as marketing expenses, increased $11.7
million for the six months ended June 30, 2016 as compared to the six months
ended June 30, 2015. The most significant driver of the increase in general and
administrative expense year over year was a $6.9 million increase in outsourced
service expenditures and professional fees attributable to third-party
consulting costs incurred for, among other things, the development and execution
of our long-term profitable growth plan, optimization of our service provider
go-to-market activities and activist activity in our stock. General and
administrative expense was also negatively impacted by a $3.5 million contingent
liability recorded during the first quarter of 2016 for the pending Moore
litigation and related cases. Additionally, there was a cumulative $1.0 million
net benefit to general and administrative expense in the first six months of
2015, related to adjustments to a legal settlement accrual for a prior legal
obligation, that did not recur in 2016, further impacting the year over year
fluctuation in general and administrative expense. A $0.9 million increase in
compensation and personnel-related costs, largely attributable to stock-based
compensation expense, also contributed to the year over year increase in general
and administrative expense. General and administrative expense increased as a
percentage of revenue for the six months ended June 30, 2016 as compared to the
six months ended June 30, 2015, and, as a percentage of revenue, we expect
period over period increases in general and administrative expense over the
course of the year as a result of the impact of personnel added in 2015 as well
as recent stock-based compensation awards.

Interest expense


Interest expense for the six months ended June 30, 2016 was $2.0 million as
compared to $1.7 million for the six months ended June 30, 2015, reflecting the
impact of recurring monthly interest payments on our outstanding long-term debt
and monthly interest charges for deferred financing fee and debt discount
amortization related to the September 2014 debt financing transaction, partially
offset by capitalized interest on website and software development. The year
over year increase in interest expense was primarily attributable to a reduction
in capitalized interest in 2016 as compared to 2015. As the migration to our new
technology platform is now complete, we ceased capitalizing interest on website
and software development for the new platform as of the end of the first quarter
of 2016.

                                       28

--------------------------------------------------------------------------------

Table of Contents

Liquidity and Capital Resources

General


At June 30, 2016, we had $34.6 million in cash and cash equivalents and $23.9
million in short-term investments. Cash and cash equivalents consists of bank
deposit accounts and money market funds as well as any investments in
certificates of deposit, U.S. Treasury securities or corporate bonds with
contractual maturities of three months or less, which, at times, may exceed
federally insured limits. Short-term investments consist of certificates of
deposit, U.S. Treasury securities and corporate bonds with maturities of more
than 90 days but less than one year. To date, the carrying values of these
investments approximate their fair values, and we have incurred no material loss
in these accounts.

Summary cash flow information for the six months ended June 30, 2016 and 2015 is
set forth below.
                                               Six Months Ended
                                                    June 30,
                                               2016         2015

                                                (in thousands)

Net cash provided by operating activities $ 14,286 $ 23,208 Net cash (used in) investing activities (12,264 ) (15,776 ) Net cash (used in) financing activities (46 ) (108 )

Net Cash Provided by Operating Activities


Cash provided by operating activities for the six months ended June 30, 2016 of
$14.3 million was largely attributable to total combined non-cash activity of
$12.5 million during the first half of the year, including $6.7 million in
stock-based compensation expense and $5.3 million in depreciation and
amortization. Operating cash flow for the six months ended June 30, 2016 was
also positively impacted by a $7.0 million net increase in accounts payable and
accrued liabilities since December 31, 2015, driven by accrued marketing
expenses and the expected timing of payment of such accrued balances, as well as
a $3.5 million contingent liability recorded during the first quarter of 2016
for the pending Moore litigation and related cases. Uses of cash from operations
for the period included a $6.9 million net decrease in deferred revenue, which
was primarily the result of near-term pressures on both our membership and
service provider revenue streams associated with the migration to our new
technology platform and the transition of our business model, including the
removal of our ratings and reviews paywall.

Cash provided by operating activities for the six months ended June 30,
2015 of $23.2 million was generated despite a net loss of $4.0 million incurred
over the same time period, predominately attributable to a $19.9 million net
increase in accounts payable and accrued liabilities from December 31, 2014,
driven by increases in accrued marketing expenses, trade accounts payable,
accrued e-commerce and the expected timing of payment of these balances.
Additionally, an increase in total combined deferred advertising revenue, offset
by a corresponding decline in total combined deferred membership revenue,
resulted in a net $1.7 million increase to operating cash flow for the
six months ended June 30, 2015, reflecting the impact of increases in service
provider contract values and concurrent decreases in membership revenue per paid
membership. Non-cash activity, including $4.5 million in stock-based
compensation expense, $3.2 million in depreciation and amortization and $0.7
million for a non-cash long-lived asset impairment charge, accounted for a $9.0
million positive contribution to operating cash flows for the first half of
2015. Uses of cash from operations for the period included a $3.3
million increase in prepaid expenses and other current assets associated with
certain technology and marketing service agreements.

Net Cash (Used In) Investing Activities


Our use of cash in investing activities of $12.3 million for the six months
ended June 30, 2016 was primarily attributable to the total combined $12.2
million in capital expenditures for property, equipment and software during the
period, consisting of $9.0 million in capitalized website and software
development costs related to our new technology platform as well as $3.2 million
for facilities improvements and technology hardware and software.

 Our use of cash in investing activities of $15.8 million for the six months
ended June 30, 2015 was largely attributable to the total combined $17.4
million in capital expenditures for property, equipment and software during the
first half of 2015, consisting of $13.8 million for capitalized website and
software development as well as $3.5 million for facilities improvements and
upgrades and additions to technology hardware and software. Sales of short-term
investments at maturity, net of purchases of short-term investments, which
amounted to $1.8 million for the six months ended June 30, 2015, partially
offset our use of cash in investing activities related to capital expenditures.


                                       29

--------------------------------------------------------------------------------

Table of Contents

Net Cash (Used In) Financing Activities

Net cash used in financing activities for the six months ended June 30, 2016 was attributable to the combined impact of taxes paid for net share settlements associated with the vesting of restricted stock units and payments on our capital lease obligation, partially offset by proceeds from stock option exercises.

Net cash used in financing activities for the six months ended June 30, 2015 was entirely attributable to payments on our capital lease obligation.

Debt Obligations


On September 26, 2014, we entered into an $85.0 million financing agreement,
comprised of a $60.0 million term loan and a $25.0 million delayed draw term
loan, to provide increased financial flexibility for investments in growth while
simultaneously reducing our interest rate. On June 10, 2016, in connection with
the decision to remove our ratings and reviews paywall, we entered into a first
amendment to the financing agreement which, among other things, (i) extended the
commencement of our quarterly repayment obligations from September 30, 2016 to
September 30, 2017; (ii) revised the financial covenants for minimum
consolidated EBITDA, as defined in the financing agreement, for periods ending
after June 30, 2016, (iii) revised the financial covenant related to minimum
required liquidity from $10.0 million to $30.0 million; (iv) removed the
financial covenant related to minimum membership revenue for periods ending
after March 31, 2016; and (v) modified the basis for the calculation of the
applicable interest rate.

In accordance with the first amendment to the financing agreement, unless and
until our consolidated EBITDA exceeds $30.0 million for any four consecutive
fiscal quarters ending after June 10, 2016, amounts outstanding under the
financing agreement bear interest at a per annum rate, at our option, equal to
(i) the LIBOR rate for the interest period in effect, subject to a floor of
0.5%, plus 7.25% or (ii) the reference rate, which is based on the prime rate as
published by the Wall Street Journal, subject to a floor of 3.25%, plus 6.25%.
Should our consolidated EBITDA exceed $30.0 million for any four consecutive
fiscal quarters ending after June 10, 2016, amounts outstanding under the
financing agreement will bear interest thereafter at a per annum rate, at our
option, equal to, in accordance with the basis for the calculation of the
applicable interest rate set forth in the original financing agreement, (i) the
LIBOR rate for the interest period in effect, subject to a floor of 0.5%, plus
6.75% or (ii) the reference rate, subject to a floor of 3.25%, plus 5.75%.

The financing agreement requires monthly interest payments on the first business
day of each month until maturity on any principal amounts outstanding under
either debt facility. The financing agreement further obligates us to make
quarterly principal payments on the term loan of $0.8 million on the last day of
each calendar quarter, commencing with the quarter ending September 30, 2017,
and to repay the remaining balance of the term loan at maturity. We are required
to make principal payments on the outstanding balance of the delayed draw term
loan equal to 1.25% of the amount of such loan funded at or prior to the last
day of each calendar quarter, commencing with the quarter ending September 30,
2016, and to repay the remaining outstanding balance of the delayed draw term
loan at maturity.

We may prepay the amounts outstanding under the financing agreement at any time
and are required to prepay the loans with (i) the net proceeds of certain asset
sales, issuances of debt or equity, and certain casualty events, and (ii) up to
50% of consolidated excess cash flow, as defined in the financing agreement, for
each fiscal year during the term of the financing agreement, commencing with the
year ended December 31, 2015. As specified by the first amendment to the
financing agreement, we must pay a 1% premium on prepayments made on or before
June 10, 2017, subject to certain exceptions as set forth in the financing
agreement. Our obligations under the financing agreement are guaranteed by each
of our subsidiaries and are secured by first priority security interests in all
of our respective assets and a pledge of the equity interests of our
subsidiaries. The term loan and the delayed draw term loan mature on September
26, 2019. As of June 30, 2016, we had $58.0 million in outstanding borrowings,
net of unamortized deferred financing fees of $1.3 million and unamortized fees
paid to the lender of $0.8 million, under the term loan and availability of
$25.0 million under the delayed draw term loan.

The financing agreement contains various restrictive covenants, including
restrictions on our ability to dispose of assets, make acquisitions or
investments, incur debt or liens, make distributions to stockholders or
repurchase outstanding stock, enter into related-party transactions and make
capital expenditures. We are also required to comply with certain financial
covenants, including minimum consolidated EBITDA as defined in the financing
agreement, minimum liquidity and maximum consolidated capital expenditures. Upon
an event of default, which includes, among other things, a failure to make
required payments when due, a failure to comply with covenants, certain
bankruptcy and insolvency events, defaults under other material indebtedness, or
a change in control, the lenders may accelerate amounts outstanding, terminate
the agreement and foreclose on all collateral. We were in compliance with all
financial and non-financial covenants at June 30, 2016.

                                       30

--------------------------------------------------------------------------------

Table of Contents

Off-Balance Sheet Arrangements

We do not engage in any off-balance sheet activities, other than long-term noncancellable operating leases as described herein, nor do we maintain any off-balance sheet interests in variable interest entities, special-purpose entities or other structured finance entities.

Contractual Obligations


Our contractual obligations primarily consist of long-term noncancellable
operating leases expiring through 2021 and long-term debt comprised of a $60.0
million term loan scheduled to mature on September 26, 2019. There were no
material changes in our contractual obligations from those disclosed in our
Annual Report on Form 10-K for the year ended December 31, 2015. Total combined
future minimum payment obligations under long-term noncancellable operating
leases amounted to approximately $8.2 million as of June 30, 2016, and we had
$58.0 million in outstanding borrowings, net of unamortized deferred financing
fees and unamortized fees paid to the lender, under the term loan as of the same
date.

Critical Accounting Policies and Estimates


Our condensed consolidated financial statements are prepared in accordance with
U.S. GAAP. The preparation of the condensed consolidated financial statements
requires us to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenue, expenses and related disclosures. We evaluate
our estimates and assumptions on an ongoing basis. Our estimates are based on
historical experience and various other assumptions that we believe to be
reasonable under the circumstances. Our actual results may differ from these
estimates. With respect to critical accounting policies, we believe there is now
sufficient historical data available for the volatility of our common stock, and
as such, we began utilizing our own historical volatility data for the
volatility input to our calculation of the estimated fair value of stock option
awards in the determination of stock-based compensation expense in 2016. There
were no other material changes to our critical accounting policies and estimates
from those described in our Annual Report on Form 10-K for the year ended
December 31, 2015.

Recent Accounting Pronouncements


For detailed information regarding recently issued accounting pronouncements and
the expected impact on our condensed consolidated financial statements, see Note
1, "Description of Business, Basis of Presentation and Summary of Significant
Accounting Policies" in the accompanying Notes to Condensed Consolidated
Financial Statements included in Item 1. of Part I of this Form 10-Q.

                                       31

--------------------------------------------------------------------------------

Table of Contents

© Edgar Online, source Glimpses

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ANGIE'S LIST INC
07/28 ANGIE LIST : LIST, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDIT..
07/27 ANGIE LIST : tops 2Q profit forecasts
07/27 ANGIE'S LIST, INC. : Results of Operations and Financial Condition, Financial St..
07/27 ANGIE LIST : Reports Second Quarter 2016 Results
07/26 ANGIE LIST : Tech Veteran Named to Prestigious Group
07/15 BRIEF : Angie's List offers free memberships
07/13 ANGIE LIST : drops pay wall for reviews
07/13 ANGIE'S LIST : Now Offering Free Membership Nationwide
07/12 ANGIE'S LIST, INC. : Announces Date of Earnings Release and Conference Call for ..
07/08 ANGIE LIST : A year after RFRA, Angie's List's east-side expansion is still off
More news
Sector news : Internet Services - NEC
02:43pDJALPHABET : Tech Companies Still Trusted More on Autonomous-Car Development
08:49aDJBAIDU : After Stumbles, Baidu Trails Rivals -- WSJ
08:49aDJFACEBOOK : May Owe Billions In Taxes -- WSJ
08:49aDJALPHABET : Strength in Mobile Propels Alphabet -- WSJ
08:49aDJApple Squeezed by Android Phones -- WSJ
More sector news : Internet Services - NEC
News from SeekingAlpha
07/27 Angie's List +12% on surprise profit, member ramp-up
07/27 Angie's List's (ANGI) CEO Scott Durchslag on Q2 2016 Results - Earnings Call ..
07/27 Angie's List, Inc. 2016 Q2 - Results - Earnings Call Slides
07/27 Angie's List beats by $0.12, misses on revenue
07/26 Notable earnings before Wednesday?s open
Advertisement
Financials ($)
Sales 2016 338 M
EBIT 2016 4,33 M
Net income 2016 1,61 M
Debt 2016 22,7 M
Yield 2016 -
P/E ratio 2016 263,66
P/E ratio 2017 79,64
EV / Sales 2016 1,54x
EV / Sales 2017 1,43x
Capitalization 498 M
More Financials
Chart ANGIE'S LIST INC
Duration : Period :
Angie's List Inc Technical Analysis Chart | ANGI | US0347541015 | 4-Traders
Full-screen chart
Technical analysis trends ANGIE'S LIST INC
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 9
Average target price 9,50 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Scott Durchslag President, Chief Executive Officer & Director
John H. Chuang Chairman
J. Mark Howell Chief Operating Officer
Thomas R. Fox Chief Financial Officer
Darin Brown Chief Technology Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ANGIE'S LIST INC-9.20%498
NASPERS LIMITED7.54%68 927
NETFLIX, INC.-19.87%39 293
LESHI INTERNET INFO. &..--.--%13 419
58.COM INC (ADR)-22.20%7 269
WEIBO CORP (ADR)66.26%6 897
More Results