Angie's List 8-K Angie’s List Reports Fourth Quarter and Fiscal Year 2011 Results

Exhibit 99.1

www.angieslist.com

Angie’s List Reports Fourth Quarter and Fiscal Year 2011 Results

• Fourth quarter revenues increased to $27.4 million, up 70% over the prior year period

• Marginal cost per acquisition (“CPA”) declined in the fourth quarter despite a marketing spend increase of $3.0 million, compared to prior year period

• Fiscal year 2011 revenues increased to $90.0 million, up 53% compared to fiscal 2010

• Total paid memberships of 1,074,757, up 78% year-over-year

Indianapolis, Ind. – February 22, 2012 – Angie’s List (NASDAQ: ANGI) announced today fourth quarter and fiscal year 2011 financial results for the year ended December 31, 2011.

“In 2011 Angie, the team and I continued to advance our dream of building Angie’s List into the world’s most trusted marketplace for local services,” said Angie’s List CEO, Bill Oesterle. “Angie’s List helps consumers make the important service purchases in their lives. Evidence of our progress can be seen in our 2011 results. The business and the model continued on their long path of scale, consistency and predictability.”

Key Operating Metrics

Fourth Quarter

	12/31/11			12/31/10			Change
Total paid memberships (end of period)		1,074,757			602,882			78	%
Gross paid memberships added (in period)		159,289			84,992			87	%
Marketing cost per paid membership acquisition (in period)	$	51		$	60			-15	%
First-year membership renewal rate (in period)		71	%		67	%		+ 400 bps
Average membership renewal rate (in period)		75	%		72	%		+ 300 bps
Participating service providers (end of period)		24,095			15,060			60	%
Total service provider contract value (end of period, in thousands)	$	73,609		$	43,050			71	%

Fiscal Year

	12/31/11			12/31/10			Change
Total paid memberships (end of period)		1,074,757			602,882			78	%
Gross paid memberships added (in period)		716,350			355,580			101	%
Marketing cost per paid membership acquisition (in period)	$	78		$	85			-8	%
First-year membership renewal rate (in period)		75	%		70	%		+ 500 bps
Average membership renewal rate (in period)		78	%		75	%		+ 300 bps
Participating service providers (end of period)		24,095			15,060			60	%
Total service provider contract value (end of period, in thousands)	$	73,609		$	43,050			71	%

Market Cohort Analysis

“In 2011, the markets in our two oldest cohorts grew at an accelerating rate, compared to 2010, while simultaneously increasing their spread between revenue and marketing expense. Our 2008 – 2010 markets more than doubled total revenue per market, total paid households and estimated penetration. These markets continued to demonstrate the same economic trends as their earlier counterparts. Based on the success of our existing sales representatives, we further scaled our sales force. In addition, we added 38 new markets, which have already started to contribute revenue to the business in 2011,” Oesterle explained.

Cohort	# of Markets		Avg. Revenue/ Market		Membership Revenue/ Paid Membership		Service Provider Revenue /Paid Membership		Avg. Marketing Expense/ Market		Total Paid Memberships		Estimated Penetration Rate			Annual Membership Growth Rate
Year Ended December 31, 2011 Results
Pre 2003		10	$	3,295,499	$	51.90	$	105.92	$	891,762		248,692		6.2	%		47	%
2003 - 2007		35		1,485,142		44.78		70.63		916,596		576,197		4.0	%		78	%
2008 - 2010		103		46,643		15.71		11.84		130,312		239,278		4.0	%		119	%
Post 2010		38		4,002		13.10		15.61		44,746		10,590		1.4	%		n/a
		186										1,074,757
Year Ended December 31, 2010 Results
Pre 2003		10	$	2,485,386	$	60.16	$	103.55	$	496,819		168,947		4.1	%		25	%
2003 - 2007		35		909,451		53.26		62.91		510,450		324,531		2.2	%		45	%
2008 - 2010		103		21,588		17.46		9.82		71,874		109,404		1.8	%		104	%
		148										602,882

Fourth Quarter Results

Our fourth quarter 2011 total revenue was $27.4 million, up 70% from $16.1 million in the prior year period. Service provider revenue was the largest component of total revenue at $17.7 million and the fastest growing with an 89% revenue growth rate. We increased our marketing spend 59%, or $3.0 million, over the prior year quarter, while decreasing our CPA to $51 from $60. We incurred a net loss of $5.9 million, with selling expense of $11.4 million and marketing expense of $8.1 million, compared to a net loss of $8.2 million with selling expense of $4.8 million and marketing expense of $5.1 million in the prior year period.

Fiscal Year 2011 Results

Our total 2011 revenue was $90.0 million, up 53% from $59.0 million, comprised of membership revenue of $33.8 million and service provider revenue of $56.2 million. We increased our marketing expense 86%, or $25.9 million, over the prior year while decreasing our CPA to $78 from $85. We added a total of 716,350 new gross paid memberships in 2011, compared to adding 355,580 in 2010.

We incurred a net loss of $49.0 million for the year, with selling expense of $33.8 million and marketing expense of $56.1 million, compared to a $27.2 million loss, with selling expense of $16.9 million and marketing expense of $30.2 million, in 2010.

“In 2011, we saw opportunities to invest in growth at favorable unit economics that resulted in strong membership and service provider growth,” concluded Angie’s List CFO, Bob Millard. “Looking ahead, we plan to continue to manage the business to deliver strong unit economics and take advantage of similar opportunities to drive growth throughout our business.”

Business Outlook

The Company’s financial and operating expectations for the first quarter of 2012 are as follows:

• Total revenue in the range of $29.0 million to $30.0 million.

• Marketing expense in the range of $17.5 million to $18.0 million.

Conference Call Information

The company will host a conference call at 5:00 PM (ET) / 2:00 PM (PT) to discuss the quarterly financial results with the investment community. A live webcast of the event will be available on the Angie’s List Investor Relations website at http://investor.angieslist.com/

A live domestic dial-in is available at (877) 380-5664 or (253) 237-1143 internationally. An audio replay will be available at (855) 859-2056 domestically or (404) 537-3406 internationally, using Conference ID 46442280 through February 29, 2012.

Live audio webcast of the presentations will be available on Angie’s List Investor Relations website athttp://investor.angieslist.com/

About Angie’s List

Angie’s List collects consumer reviews on local service providers ranging from home improvement to healthcare in more than 550 service categories. More than one million paying households in the United States rely upon Angie’s List to help them make the best hiring decisions. Members get unlimited access to local ratings via Internet or phone, exclusive discounts, the Angie’s List Magazine and help from the Angie’s List complaint resolution service.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding expected revenue, future marketing expense and growth opportunities. These forward-looking statements are based on Angie’s List’s current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to accurately measure and predict revenue per paid membership, membership acquisition costs or costs associated with servicing our members; our ability to protect our brand and maintain our reputation among consumers and local service providers; our ability to attract and retain local service providers to advertise on our service; our ability to increase our pricing on memberships and service provider contracts as we increase our market penetration; our ability to replicate our business model in our less penetrated markets; our success in converting consumers and local service providers into paid memberships and participating service providers; competitive factors; our ability to stay abreast of modified or new laws and regulations applying to our business, including those regarding sales or transaction taxes and privacy regulation; our ability to adequately protect our intellectual property; our ability to manage our growth; and general economic conditions worldwide.

Further information on these factors and other risks that may affect our business is included in filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including our Registration Statement on Form S-1, particularly under the heading “Risk Factors.”

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 http://investor.angieslist.com. Information on our website is not part of this 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 in light of new information or future events.

Angie’s List, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands)
	December 31,
	2011			2010
Assets
Cash and cash equivalents	$	88,607		$	9,209
Restricted cash		300			300
Accounts receivable, net		3,937			2,662
Related-party receivable		—			64
Prepaid expenses and other current assets		11,835			5,703
Total current assets		104,679			17,938
Property and equipment, net		3,883			1,677
Goodwill		415			415
Amortizable intangible assets, net		1,555			1,145
Deferred financing fees, net		866			1,426
Total assets	$	111,398		$	22,601
Liabilities and shareholders’ equity (deficit)
Accounts payable	$	5,266		$	3,177
Accrued liabilities		10,532			6,036
Deferred membership revenue		17,153			11,648
Deferred advertising revenue		13,643			8,188
Current maturities of long-term debt		—			7,267
Total current liabilities		46,594			36,316
Long-term debt, including accrued interest		14,820			16,463
Deferred membership revenue, noncurrent		3,751			3,164
Deferred advertising revenue, noncurrent		239			261
Deferred income taxes		158			154
Total liabilities		65,562			56,358
Shareholders’ equity (deficit):
Convertible preferred stock		—			2
Common stock		65			33
Additional paid-in-capital		235,950			85,453
Treasury stock		(23,719	)		(1,822	)
Accumulated deficit		(166,460	)		(117,423	)
Total shareholders’ equity (deficit)		45,836			(33,757	)
Total liabilities and shareholders’ equity (deficit)	$	111,398		$	22,601

Angie’s List, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

	Three months ended						Year ended
	December 31,			December 31,			December 31,			December 31,
	2011			2010			2011			2010
Revenue
Membership	$	9,733		$	6,724		$	33,815		$	25,149
Service provider		17,716			9,385			56,228			33,890
Total revenue		27,449			16,109			90,043			59,039
Operating expenses
Operations and support		4,123			3,193			16,417			12,464
Selling		11,423			4,761			33,815			16,892
Marketing		8,131			5,105			56,122			30,237
Technology(1)		3,106			2,073			9,109			6,270
General and administrative(1)		6,010			8,206			18,740			16,302
Operating loss		(5,344	)		(7,229	)		(44,160	)		(23,126	)
Interest expense		485			999			3,004			3,966
Loss on debt extinguishment		—			—			1,830			—
Loss before income taxes		(5,829	)		(8,228	)		(48,994	)		(27,092	)
Income tax expense		43			8			43			154
Net loss	$	(5,872	)	$	(8,236	)	$	(49,037	)	$	(27,246	)
Net loss per common share—basic and diluted	$	(0.14	)	$	(0.30	)	$	(1.60	)	$	(0.99	)
Weighted average number of common shares outstanding—basic and diluted		41,131			27,855			30,656			27,604
(1)Non-cash stock-based compensation
Technology	$	424		$	496		$	786		$	496
General and administrative		1,574			5,261			3,056			6,203
Total non-cash stock-based compensation	$	1,998		$	5,757		$	3,842		$	6,699
Depreciation and amortization	$	465		$	358		$	1,660		$	1,378

CONTACT:

Investor Relations at Angie’s List

888-619-2655

investorrelations@angieslist.com

                    Or

Brinlea Johnson

The Blueshirt Group for Angie’s List

212-331-8424

brinlea@blueshirtgroup.com