Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of online local-service ratings expert Angie's List
So what: The trigger for the pop was a strong first-quarter earnings report. For the quarter, the company managed $31 million in revenue, up 76% from last year. Meanwhile, on the bottom line, the loss per share of $0.24 was less than the expected $0.26.
The growth for the quarter was driven by a huge 81% jump in total paid memberships. Profitability was helped by a 16% year-over-year drop in the marketing cost per paid-member acquisition.
Now what: It appears that Angie's List's management also has a more optimistic view of the quarter ahead than Wall Street did. While analysts were expecting revenue of $34.3 million for the second quarter, the company provided a guidance range of $34.5 million to $35.5 million.
Of course, with all of that good news, why did the early day spike in the stock's price settle back down? That's a bit unclear, but it could have something to do with the fact that this is still a company that lost more than $13 million in the first quarter on $31 million in revenue. Growth is good, but at some point investors like to see profitability, too.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.