(Reuters) - Online review company Angie’s List Inc reported lower-than-expected third-quarter revenue as first-year membership renewal rates fell, and forecast current-quarter revenue that also fell short of market estimates.
Angie’s List shares were down 15 percent in extended trading after closing at $15.45 on Nasdaq on Wednesday.
The company forecast revenue of $68 million to $69 million for the fourth quarter. Analysts expected revenue of $70.42 million, according to Thomson Reuters I/B/E/S.
First-year membership renewal rate slipped to 75 percent in the third quarter from 76 percent a year earlier, while marketing expenses rose 8 percent.
“Member acquisitions are lower than I like,” Chief Executive Bill Oesterle said on a conference call with analysts.
Angie’s List, which went public in November 2011, allows users to rate local businesses. Paid members are allowed access to ratings and reviews, while unpaid members can only rate.
The company, which competes with Yelp Inc and HomeAdvisor Inc, earns revenue from subscription fees and advertising from higher-rated businesses.
The company’s net loss narrowed to $13.5 million, or 23 cents per share, in the third quarter, from $18.5 million, or 32 cents per share, a year earlier. Analysts had expected a loss of 20 cents per share.
Revenue rose 56 percent to $65.5 million. Analysts had expected revenue of $66.1 million.
Reporting by Soham Chatterjee in Bangalore; Editing by Maju Samuel and Don Sebastian