UPDATE: Angie's List Tops Q4 Estimates

reported stronger-than-expected results for the fourth quarter. The Indianapolis, Indiana-based company posted a quarterly profit of $15.3 million, or $0.26 per share, versus a year-ago profit of $2.8 million, or $0.05 per share. Its sales rose to $82.15 million from $68.76 million. However, analysts were expecting earnings of $0.22 per share on revenue of $81.2 million. Membership revenue rose 2% to $18.0 million, while service provider revenue climbed 26% to $64.1 million for the quarter. Advertising revenue gained 29% to $58.1 million in the fourth quarter, while e-commerce revenue rose around 1% to $6.1 million. As of December 31, total paid memberships rose 22% to 3.04 million. At December 31, 2014, the company had 64.3 million in cash, cash equivalents and short-term investments. "We grew revenue, improved margins and, for the first year in company history, generated positive adjusted EBITDA, all while investing to build our marketplace," said Angie's List CEO Bill Oesterle. "In the fourth quarter, we continued to execute on our strategic objectives, including growing our member base and investing in our products. While we made progress transitioning to our marketplace model, we see continued opportunities to propel it forward by improving transaction outcomes for both consumers and service providers." For the full year 2015, Angie's List expects revenue of $357 million to $363 million and adjusted EBITDA of $28 million to $30 million. Angie's List shares declined 2.59% to close at $4.89 yesterday.