Angie’s List Inc. (NASDAQ: ANGI) released its first-quarter results Wednesday before the markets opened. The online services reviews market place outfit had $0.07 in earnings per share (EPS) and $83.5 million in revenue, versus Thomson Reuters consensus estimates of breakeven in EPS and $84.69 million in revenue. In the same period of the previous year, the company reported a loss of $0.06 per share and revenue of $72.66 million.

The company gave its outlook for the full 2015 year as revenue in the range of $357 million to $363 million and EBITDA in the range of $30 million to $32 million. The consensus estimates are EPS of $0.14 on $359.62 million in revenue.

Membership revenue in the first quarter of 2015 was $17.3 million, a decrease of 5% compared to the prior-year period. Service provider revenue remains the largest and fastest growing component of total revenue at $66.2 million for the quarter, representing a 22% growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions.

Marketing expense decreased 31%, or $7.2 million, compared to the year-ago period. Net income for the first quarter was $4.4 million, with selling expense of $28.6 million and marketing expense of $16.3 million, compared to a net loss of $3.8 million, with selling expense of $26.1 million and marketing expense of $23.5 million.

ALSO READ: Are These 2 Social Media Stocks Going to Blow Out Numbers?

Bill Oesterle, CEO of Angie’s List, commented on earnings:

We had a positive start to the year. We strengthened the foundation of our marketplace by adding inventory and growing gross merchandise value. Further, we improved our efficiency with respect to membership acquisition, enhanced service provider sales efficiency and delivered leverage in key expense line items.

At the end of March, the balance of cash, cash equivalents and investments was $77.5 million.

A look back at the income statement for Angie’s List in past years shows that the company has been slowly decreasing its operating loss. Still, the losses were to the point that it had more than just a few heads scratching, when you consider the revenues. At the end of 2014, the company reported an operating loss of $10.36 million, which was down from $31.08 million in 2013 and $51.03 million in 2012.

Maybe Angie’s list has finally found its stride. Subscription revenue decline might look bad, but down only 5% with so much free competition might be a win. The company also seems like it is lowering its promotional costs, while its service provider revenues are scaling up.

Shares of Angie’s List closed Tuesday up 1.8% at $6.15. Following the release of the earnings report, shares were up 15.3% at $7.09 in early trading Wednesday. The stock has a consensus analyst price target of $7.96 and a 52-week trading range of $4.36 to $14.65.

ALSO READ: How Currency Issues Will Affect Internet Giants

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.