Thanks to a boost in memberships and revenue from service providers, Angie’s List’s (NASDAQ:ANGI) first quarter earnings topped Wall Street expectations. Company shares rose over 16% in premarket trading Wednesday.
The company’s stock has been up and down over the last few weeks. Recently, Amazon announced the launch of its own referral service, which will compete with Angie’s List. And just last week, CEO William S. Oesterle announced that he would be stepping down and pursuing other interests. On a bright note, Angie’s List has been busy partnering with companies like Berkshire Hathaway and Shaw Industries.
Angie’s List reported a profit of $4.4 million during the first quarter (7 cents per share) and revenue of $83.5 million. Analysts expected a loss of one cent per share, but looking for revenue of $84.4 million.
E-commerce transactions and advertising contracts were responsible for the majority of the 15% boost in revenue. Membership also grew 18% in the last year, but membership revenue was down. Fortunately, the company was able to offset the decrease in membership revenue by cutting back on marketing costs.
Angie’s List is expecting full-year revenue to fall between $357 million and $363 million. Company shares were up $1.03, or 16.8%, in premarket trading.
