When Angie’s List (NASDAQ:ANGI) — an online company providing reviews for contractors — launched its IPO last November, it posted a nice 25% gain on its first day of trading. The offering came off the strength of Groupon‘s (NASDAQ:GRPN) IPO, which also enjoyed a good performance.
Unlike Groupon, Angie’s List was able to keep up the momentum through its first quarterly earnings report.
ANGI shares gained 7% Thursday after the company announced a 70% surge in fourth-quarter revenues, to a Street-beating $27.4 million, and saw its membership base increase 78% to 1,074,757. While the company did post a $5.87 million (14 cents per share) loss, that was better than the year-ago period’s $8.24 million loss.
Angie’s List also pleased investors with its current-quarter revenue forecast — ANGI expects revenues of $29 million to $30 million, vs. analysts’ expectations for $28.4 million.
Another reason for optimism came from an encouraging metric: cost of customer acquisition. During the past year, the average cost sank from $60 to $51, meaning Angie’s List is starting to realize economies of scale.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”, “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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