Wednesday, November 16, 2011

Angie's List IPO

We'll see how the market responds to the $13 per share offering price and to its "consumer pays" model vs. the various "free" alternatives including Yelp, J.D. Power, BBB among many others. The Indianapolis-based company had revenue of $59 million in 2010 and $62.6 million in the first nine months of this year. It says it lost $27.2 million for 2010 and $43.2 million for the first nine months of 2011, largely because it is spending a lot on marketing to attract new users. That is a huge chunk of change to be losing and not what I would want to see if I were in an investor.  Angie's List claims to have 1 million subscribers. I wonder how they define a subscriber and what their retention rate actually is? And isn't it a mature and saturated market (in the United States) already?
AL  plans to use the proceeds from the offering, which it announced in August, for advertising and general corporate purposes.;_ylt=Ag8iAEYsr0XkDrlINPUicyOiuYdG;_ylu=X3oDMTQ0MDVkcmczBG1pdANGaW5hbmNlIEZQIFRvcCBTdG9yeSBSaWdodARwa2cDYjhkZWY5MDMtOWM4Yi0zZGFjLTlhYTMtY2RmZGZiYmZhNzE5BHBvcwM3BHNlYwN0b3Bfc3RvcnkEdmVyAzEzZDJjM2MwLTEwY2YtMTFlMS05ZjNmLTk2NWFmNGIzYjhjNg--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3


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