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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowShares in Angie's List Inc. sank 24 percent from Wednesday's closing price after the company reported a bigger-than-expected loss in the second quarter.
At least seven Wall Street analysts downgraded the stock Thursday.
The Indianapolis-based online consumer-reviews service suffered a loss of $18.4 million, or 31 cents a share, compared with a loss of $14.3 million, or 25 cents a share, a year ago.
Analysts had predicted a loss of only 24 cents per share.
Shares dropped $1.84 each, or 18.1 percent, to $8.33 each in after-market trading Wednesday following the earnings release. The stock continued to slide Thursday morning, falling as low as $7.77 before climbing to $8.22 in the early afternoon.
Revenue increased 33 percent, to $78.9 million, missing the company's expectation of $79.5 million to $80.5 million.
Angie's List said total paid memberships reached 2.8 million as of June 30, a rise of 31 percent over a year ago.
But the company spent more to attract those members. Selling expenses jumped nearly 38 percent and marketing expenses rose 28 percent.
The stock fell nearly 4 percent in regular trading earlier Wednesday and is down about 45 percent since the start of the year.
Angie's List said it expects revenue in the range of $80.5 million to $82.5 million in the third quarter, below analyst expectations of $86.6 million.
"We reported solid results for the second quarter while continuing to invest in our marketplace," Angie's List CEO Bill Oesterle said in a prepared statement. "We increased marketing spending during a seasonally strong period and had a record quarter in gross new member additions, which we believe reflects the continued resonance of our value proposition."
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