Angie's List 8-K Angie’s List Reports Second Quarter 2012 Results

Exhibit 99.1

www.angieslist.com

Angie’s List Reports Second Quarter 2012 Results

• Second quarter and year-to-date revenues increased to $36.5 and $67.6 million, up 74% and 75% over the prior year periods

• Second quarter and year-to-date service provider revenue increased to $25.2 and $46.3 million, up 94% and 96% over the prior year periods

• Total paid memberships of 1,431,073 at June 30, 2012, up 74% year-over-year

• Cost per acquisition (“CPA”) in the second quarter was $91, an increase of 2% over the prior year period, despite an increased marketing spend of 52%

Indianapolis, Ind. – July 25, 2012 – Angie’s List (NASDAQ: ANGI) announced today second quarter 2012 financial results for the quarter ended June 30, 2012.

“The business grew very well in the second quarter. We hit new records for membership, service provider revenue and total revenue,” said Angie’s List CEO Bill Oesterle. “Operating metrics were both consistent and strong.”

Three months ended 6/30/2012

	6/30/12			6/30/11			Change
Total paid memberships (end of period)		1,431,073			821,769			74	%
Gross paid memberships added (in period)		305,151			203,966			50	%
Marketing cost per paid membership acquisition (in period)	$	91		$	89			2	%
First-year membership renewal rate (in period)		75	%		76	%		-100bp
Average membership renewal rate (in period)		77	%		78	%		-100bp
Participating service providers (end of period)		29,930			19,750			52	%
Total service provider contract value (end of period, in thousands)	$	101,719		$	55,647			83	%

Six months ended 6/30/2012

	6/30/12			6/30/11			Change
Gross paid memberships added (in period)		520,582			316,727			64	%
Marketing cost per paid membership acquisition (in period)	$	87		$	92			-5	%
First-year membership renewal rate (in period)		75	%		75	%		flat
Average membership renewal rate (in period)		78	%		78	%		flat

Market Cohort Analysis

“In the second quarter we saw very good performance from our cohorts. All of them demonstrated significant membership growth, higher penetration rates and increasing average revenue per market,” 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
Pre-2003		10	$	3,968,668	$	47.31	$	107.55	$	1,134,690		305,248		7.6	%		47	%
2003 - 2007		35		2,026,991		39.87		77.09		1,166,289		772,832		5.4	%		76	%
2008 - 2010		103		76,949		14.64		17.15		165,811		328,840		5.5	%		94	%
Post 2010		57		5,643		10.29		12.31		50,411		24,153		2.4	%		*
Total		205										1,431,073

Cohort table presents financial and operational data for the twelve months ended 6/30/2012

* Not meaningful

Second Quarter Results

Second quarter 2012 total revenue was $36.5 million, an increase of 74% from $21.0 million in the prior year period. Service provider revenue was the largest component of total revenue at $25.2 million and the fastest growing with a 94% growth rate. Marketing expense was up 52%, or $9.5 million, over the prior year period. Net loss was $23.4 million, with selling expense of $14.3 million and marketing expense of $27.6 million, compared to a net loss of $16.2 million with selling expense of $7.6 million and marketing expense of $18.1 million in the prior year period. Adjusted EBITDA, a non-GAAP financial measure, was a loss of $21.5 million, compared to a loss of $14.2 million in the prior year period.

For the six months ended June 30, 2012, total revenue was $67.6 million, an increase of 75% from $38.6 million in the prior year period. Service provider revenue grew to $46.3 million, up 96% from the prior year period. Marketing expense was up 55%, or $16.0 million, over the prior year period. Net loss was $36.8 million, with selling expense of $26.7 million and marketing expense of $45.2 million, compared to a net loss of $25.8 million with selling expense of $13.7 million and marketing expense of $29.2 million in the prior year period. Adjusted EBITDA, a non-GAAP financial measure, was a loss of $33.3 million, compared to a loss of $21.9 million in the prior year period.

“Looking ahead, we will continue to invest in acquiring new members, adding advertising service providers and improving our technology to drive further scale and penetration,” added Angie’s List CFO Bob Millard.

Business Outlook

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

• Total revenue in the range of $40.3 million to $41.3 million.

• Marketing expense in the range of $26.0 million to $27.0 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 10457356 through August 3, 2012.

Live audio webcast of the presentations will be available on Angie’s List Investor Relations website at http://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, exclusive discounts, the Angie’s List Magazine and help from the Angie’s List complaint resolution service.

Non-GAAP Financial Measures

In addition to providing financial measurements based on generally accepted accounting principles in the United States (GAAP), Angie’s List has disclosed in this press release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP Adjusted EBITDA, which Angie’s List defines as earnings before interest, income taxes, depreciation, amortization, and non-cash stock-based compensation. Angie’s List uses Adjusted EBITDA internally in analyzing its financial results and has determined to disclose this measure to investors because it believes it will be useful to them, as a supplement to GAAP measures, in evaluating Angie’s List’s operating performance relative to its industry sector and competitors. Angie’s List believes that the use of Adjusted EBITDA provides additional insight for investors to use in evaluation of ongoing operating results and trends. However, non-GAAP financial measures such as Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Angie’s List has significant uses of cash flows, including capital expenditures and other contractual commitments, interest payments and income taxes that are not reflected in adjusted EBITDA. Adjusted EBITDA does not consider the potentially dilutive impact of issuing non-cash stock-based compensation to Angie’s List’s management and other employees. It should also be noted that other companies, including companies in the same industry, may calculate adjusted EBITDA in a different manner than Angie’s List. Angie’s List has provided a reconciliation of Adjusted EBITDA measure to the most directly comparable GAAP financial measure.

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 from time to time, including Angie’s List’s Annual Report on Form 10-K and its 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 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.

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

Angie’s List, Inc.

Condensed Consolidated Balance Sheet

(in thousands)

	June 30, 2012			December 31, 2011
	(Unaudited)
Assets
Cash	$	76,547		$	88,607
Restricted cash		50			300
Accounts receivable, net		5,508			3,937
Prepaid expenses and other current assets		18,791			11,835
Total current assets		100,896			104,679
Property and equipment, net		5,371			3,883
Goodwill		415			415
Amortizable intangible assets, net		2,569			1,555
Deferred financing fees, net		753			866
Total assets	$	110,004		$	111,398
Liabilities and shareholders’ deficit
Accounts payable	$	8,010		$	5,266
Accrued liabilities		23,293			10,532
Deferred membership revenue		22,778			17,153
Deferred advertising revenue		17,527			13,643
Total current liabilities		71,608			46,594
Long-term debt, including accrued interest		14,844			14,820
Deferred membership revenue, noncurrent		4,158			3,751
Deferred advertising revenue, noncurrent		138			239
Deferred income taxes		158			158
Total liabilities		90,906			65,562
Shareholders’ equity:
Common stock		66			65
Additional paid-in-capital		246,048			235,950
Treasury stock		(23,719	)		(23,719	)
Accumulated deficit		(203,297	)		(166,460	)
Total shareholders’ equity		19,098			45,836
Total liabilities and shareholders’ equity	$	110,004		$	111,398

Angie’s List, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

	Three Months Ended June 30,						Six Months Ended June 30
	2012			2011			2012			2011
	(Unaudited)						(Unaudited)
Revenue
Membership	$	11,292		$	7,940		$	21,267		$	14,973
Service provider		25,212			13,018			46,331			23,613
Total revenue		36,504			20,958			67,598			38,586
Operating expenses
Operations and support		6,716			4,198			12,491			7,597
Selling		14,325			7,572			26,734			13,656
Marketing		27,622			18,132			45,228			29,231
Technology		4,191			1,883			7,318			3,726
General and administrative		6,580			4,461			11,751			8,365
Operating loss		(22,930	)		(15,288	)		(35,924	)		(23,989	)
Interest expense		457			872			913			1,807
Loss before income taxes		(23,387	)		(16,160	)		(36,837	)		(25,796	)
Income tax expense		—			—			—			—
Net loss	$	(23,387	)	$	(16,160	)	$	(36,837	)	$	(25,796	)
Net loss per common share—basic and diluted	$	(0.41	)	$	(0.60	)	$	(0.64	)	$	(0.93	)
Weighted average number of common shares outstanding—basic and diluted		57,372,232			26,913,827			57,167,929			27,626,059
Non-cash stock-based compensation
Technology	$	192		$	62		$	338		$	300
General and administrative		571			641			1,105			996
Total non-cash stock-based compensation	$	763		$	703		$	1,443		$	1,296
Reconciliation of adjusted EBITDA to net loss
Net loss:	$	(23,387	)	$	(16,160	)	$	(36,837	)	$	(25,796	)
Income tax expense		—			—			—			—
Interest expense		457			872			913			1,807
Depreciation and amortization		690			396			1,219			766
Non-cash stock-based compensation		763			703			1,443			1,296
Adjusted EBITDA loss	$	(21,477	)	$	(14,189	)	$	(33,262	)	$	(21,927	)