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More on Angie's List's Q3: Q4 guidance is for revenue of $45M-$46M, in-line with a $45.6M...

More on Angie's List's Q3: Q4 guidance is for revenue of $45M-$46M, in-line with a $45.6M consensus. Total paid memberships +16% Q/Q and +68% Y/Y to 1.66M. Gross membership adds were 341K, up from Q2's 305K. Total service provider contract value +17% Q/Q to $119.1M. The Street must be pleased marketing cost per new paid subscriber fell to $76 from Q2's $91. ANGI +14.4% AH, shares had been clobbered in recent months.
Comments (1)
  • Has nobody looked at this latest financials?

     

    http://bit.ly/RYFJES

     

    Ignoring the spin from management, this is a complete train wreck. The problem is they are burning cash at a frightening rate, and this company is ready to implode.

     

    Check the balance sheet from their website. Cash is down, from $88 million to $65 million. Assets are down from $111 million to $101 million.

     

    We know they are losing money, so how are they still open? They’re borrowing. Current liabilities have increased from $46 million to $80 million, and now exceed current assets. Total liabilities have increased from $65 million to $100 million.

     

    Net worth was $45 million last year. This year it is $1.7 million, which is pretty close to zero, considering the accuracy of the numbers. Not a good place to be.

     

    What is the cash burn rate?

     

    9 months losses have grown from $43 million to $55 million. 3 months losses increased from $17 million to $18 million. This gives us a monthly loss of around $6 million, depending on which of these numbers you use.

     

    How long before impact?

     

    If we ignore the current liabilities, $65 million will last ten months. The total value of all assets ($101 million) will be expended in 14 months.

     

    Subtract the liabilities and you are broke today. Don’t take my word for it, check the financials yourself.

     

    It’s no wonder the CEO wants to sell his office building to the company. They’re not going to be a tenant for long.
    25 Oct 2012, 05:16 PM Reply Like
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