Angie's List shares soar 10.5% premarket after company hires advisers to explore options
Angie's List Inc. shares soared 10.5% in premarket trade, after the company said it has hired financial advisers to review its strategic options as it continues to work on a turnaround and seeks new opportunities. The online marketplace for home-improvement and other services made the announcement as it reported third-quarter earnings, showing a jump in new memberships but a wider-than-expected loss. The company said it had a net loss of $16.8 million, or 28 cents a share, in the quarter, after net income of $100,000, or breakeven, in the year-earlier period. Revenue fell to $79.7 million from $86.9 million. The FactSet consensus was for a loss of 12 cents a share and revenue of $82.2 million. Chief Executive Scott Durchslag said the company attracted 1.6 million new members since it removed its reviews paywall, and added 1,367 service providers. "That said, our revenue and adjusted EBITDA are down year over year so our financial results are lagging the leading indicators in our operating metrics, as often happens when changing business models," he said in a statement. The company has hired Allen & Co. LLC and BofA Merrill Lynch to help it explore its options. Shares are down about 18% in the year to date, while the S&P 500 has gained 4%.
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