Seeking Alpha

Angie's List testing price cuts, shares -4.2% AH

  • Angie's List (ANGI) CEO William Oesterle tells the WSJ his company is running "a reduced price-test" for subscriptions in markets including NYC, Chicago, and San Francisco, and is trying to gauge "the impact on member acquisition and retention." Those eligible for the cuts are paying just $10 for an annual subscription, rather than the normal $40.
  • With Angie's having generated 73% of its Q2 revenue from service provider ads and transactions rather than member subscriptions, the company appears to be weighing the pros and cons of sacrificing subscription revenue in exchange for providing a larger audience.
  • Angie's had 2.16M paid members at the end of Q2 (+51% Y/Y), and an average renewal rate of 78%.
  • Shares rose 3.4% in regular trading, thanks to bullish sell-side commentary.
Comments (3)
  • Deja Vu
    , contributor
    Comments (1291) | Send Message
     
    Angi is starting to look distinctly mangy
    2 Oct 2013, 08:02 PM Reply Like
  • PeakOiler
    , contributor
    Comments (298) | Send Message
     
    New York, New York! If you can make it there, you can make it anywhere. Unfortunately, Angie's New York dike springs a hole. Can't make it there, can't make it in big cities everywhere, so turn out the lights, the party's over. Say goodbye to Hollywood, Angie.
    2 Oct 2013, 09:32 PM Reply Like
  • Pedro de Almeida
    , contributor
    Comments (191) | Send Message
     
    Next step is trying to charge $1 per year... And assuming they are a sell side publicity brochure...
    3 Oct 2013, 04:46 AM Reply Like
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