Angie's List, Inc. (ANGI) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $16.82 million in the quarter, against a net profit of $0.08 million in the last year period.
Revenue during the quarter dropped 8.33 percent to $79.74 million from $86.99 million in the previous year period. Operating margin for the quarter stood at negative 19.29 percent as compared to a positive 0.89 percent for the previous year period.
Operating loss for the quarter was $15.38 million, compared with an operating income of $0.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $7.49 million compared with $3.21 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 9.39 percent for the quarter compared to 3.69 percent in the last year period.
"Since removing the reviews paywall, we’ve had great success attracting new members," said Scott Durchslag, president and chief executive officer of Angie's List. "We've added nearly two million members since June and now have 4.5 million members nationwide. These record-setting new member additions are up five-fold year over year, with a near tripling in new members viewing service provider profiles and new members searching Angie’s List. At the same time, our brand is getting even stronger, reaching record-setting levels of aided brand awareness of 97% and unaided brand awareness of 61%."
Operating cash flow turns negative
Angie's List, Inc. has spent $1.26 million cash to meet operating activities during the nine month period as against cash inflow of $21.44 million in the last year period.
The company has spent $16.34 million cash to meet investing activities during the nine month period as against cash outgo of $27.61 million in the last year period.
The company has spent $1.34 million cash to carry out financing activities during the nine month period as against cash outgo of $0.16 million in the last year period.
Cash and cash equivalents stood at $13.66 million as on Sep. 30, 2016, down 59.42 percent or $20 million from $33.66 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Angie's List, Inc. was negative $33.93 million on Sep. 30, 2016 compared with negative $33.12 million on Sep. 30, 2015. Current ratio was at 0.68 as on Sep. 30, 2016, down from 0.74 on Sep. 30, 2015.
Days sales outstanding went up to 19 days for the quarter compared with 17 days for the same period last year.
Debt comes down marginally
Angie's List, Inc. has recorded a decline in total debt over the last one year. It stood at $58.11 million as on Sep. 30, 2016, down 1.57 percent or $0.93 million from $59.04 million on Sep. 30, 2015. Total debt was 36.34 percent of total assets as on Sep. 30, 2016, compared with 34.08 percent on Sep. 30, 2015.
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