Angie’s List Unveils New Profitable Growth Plan at Investor Day

Plan Opens Angie’s List Ratings and Reviews Paywall, Redefining the
Company’s Core Business Model

Transformed Operating Model and New Value-Added Products and Services
Offering Expected to Significantly Increase Angie’s List’s Reach and
Engagement with Consumers and Service Providers

Company Issues Revenue and Adjusted EBITDA Guidance for 2016 and
Long-Term Growth Targets

INDIANAPOLIS–(BUSINESS WIRE)–Angie’s List (Nasdaq:ANGI) is today announcing the details of its new
Profitable Growth Plan at a meeting with investors and financial
analysts in New York. The Company is also issuing financial guidance for
fiscal 2016.

has historically charged its members a fee to access its
ratings and reviews. The Company’s new Profitable Growth Plan transforms
this legacy business model by removing the ratings and reviews paywall
and enabling consumers to access this service for free. The Company will
also be introducing new freemium and premium tiered offerings with
additional high value services. Early pilot results from these changes
have shown significant increases in consumer engagement and service
provider value, including increases in consumer registrations, total
profile views, reviews and originations.

Scott Durchslag, Angie’s List President and Chief Executive Officer,
said, “The new plan announced today transforms our legacy business model
to bring in a new era of growth and profitability at Angie’s List.
Angie’s List is the premier brand in the $400 billion home services
market. By removing the paywall for ratings and reviews, our new
Profitable Growth Plan removes the barrier that has limited our growth
and enables Angie’s List to engage with more consumers and more service
providers than ever before. Through this three-phased plan, we expect to
reignite revenue growth and drive significant increases in profitability
over time with minimal disruption to the business.”

“Given the unique strengths of Angie’s List, the tremendous growth in
the home services market, and the new strategies we are announcing
today, we have many reasons to be excited about the long-term value
creation opportunity for Angie’s List,” continued Mr. Durchslag.

The Company expects to begin opening the ratings and reviews paywall and
launching its new tiered offerings in select markets in the second
quarter of 2016, with the full rollout expected to be completed in the
third quarter of 2016. Services and products under the Company’s new
tiered offering will range from Angie’s List’s traditional search,
ratings and reviews, which will be available to all consumers for free,
to premium services such as emergency service hotlines and services that
guarantee a pre-qualified handyman in your home within hours of a call.

Angie’s List is committed to growing with discipline. The Company’s new
business model capitalizes on investments that the Company has already
made to improve performance and the experience it offers to consumers
and service providers, including the new Angie’s List 4.0 platform as
well as other investments to improve the Company’s technology
capabilities, talent and infrastructure. Further, the Company is focused
on driving operating efficiencies in areas such as marketing, selling
and customer care.


The Company’s new Profitable Growth Plan contemplates three phases
implemented over the next five years based on achieving specific

  • Strengthen and Reposition the Core Business (2016), which
    includes redefining the paywall and launching premium consumer
    services, improving the consumer experience by scaling the Angie’s
    List 4.0 platform, as well as optimizing the service provider sales
    organization to better monetize consumer traffic;
  • Leverage the Home Services Platform (2017-2018), which
    includes expanding value-added services provided on the AL platform,
    and improving customer and service provider relationships with
    personalized offerings; and
  • Expand to Adjacencies (2019-2020), which includes
    expanding the consumer and service provider bases, and developing
    relevant partnerships to provide additional value-added services.

Pursuant to the Profitable Growth Plan, the Company expects to grow
total revenue to $750 million by 2020 and to grow adjusted EBITDA to
$150 million over the same period. This represents compounded annual
revenue growth of more than 15% with EBTIDA margins expanding from 8%
currently to approximately 20%. The Company expects to realize this
growth over time as each of the three phases of the Profitable Growth
Plan is implemented.

In 2016, as the Company makes its basic rating and review offering
available to consumers without a membership fee, the Company expects the
benefit from a lower marketing spend to be offset by a decline in
membership revenue. The Company’s EBITDA guidance also reflects the
impact of the shift from capitalization of the development of its new
technology platform to the expensing of ongoing support and maintenance
as the Company places this platform in service. As a result, the
Company’s financial and operating expectations for the full year 2016
are as follows:

  • Revenue of $345 million to $355 million
  • Adjusted EBITDA of $31 million to $35 million
  • Free cash flow to be approximately break-even


As previously announced, the Investor Day presentation will begin at
8:45 a.m. ET today, March 3, 2016. Event attendance is by invitation
only and registration is required.

A live audio webcast will be available at approximately 8:45 a.m. ET and
will be available for replay on

About Angie’s List

Angie’s List helps facilitate happy transactions between more than three
million consumers nationwide and its collection of highly rated service
providers in 720 categories of service, ranging from home improvement to
health care. Built on a foundation of 10 million verified reviews of
local service, Angie’s List connects consumers directly to its online
marketplace of services from member-reviewed providers and offers unique
tools and support designed to improve the local service experience for
both consumers and service professionals.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, each as amended. All
statements other than statements of historical fact, including
statements regarding market and industry prospects and future results of
operations or financial position, made in this press release are
forward-looking. In many cases, you can identify forward-looking
statements by terminology, such as “may”, “should”, “will”, “expects”,
“intends”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”,
“potential” or “continue” or the negative of such terms and other
comparable terminology. The forward-looking information may include,
among other information, statements concerning our estimated and
projected earnings, revenues, costs, expenditures, cash flows, growth
rates, financial results, our plans and objectives for future
operations, changes to our business model, growth initiatives or
strategies (including, but not limited to, merger and acquisition
activity) or the expected outcome or impact of pending or threatened
litigation. There may also be other statements of expectations, beliefs,
future plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. Risks and
uncertainties may affect the accuracy of forward-looking statements.

For a discussion of these factors and other risks and uncertainties that
may affect our business or cause actual results to differ materially
from those contained in our forward-looking statements, please refer to
the filings we make with the Securities and Exchange Commission from
time to time, including our Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

These documents are or will be available online from the SEC or on the
SEC Filings section of the Investor Relations section of our website at
Information on our website is not part of this press release. All
forward-looking statements in this press release are based on
information currently available to us, and we assume no obligation to
update these forward-looking statements, whether as a result of new
information, future events or otherwise.


Angie’s List
Debra DeCourcy, APR,
Arena, 317-808-4527