Revenues Estimates for Angie’s List Adjusted by $1 Million After 1% Drop in Member Retention

Two years ago this month, online subscription pioneer Angie’s List went public, which meant a cash influx and much more media coverage of the company’s highs and lows. This week, analysts said they were disappointed with the company’s expected fourth quarter performance, as forecasts predict $68 million to $69 million in revenue, instead of the earlier predictions of $70 million.The drop in revenue is attributed to a drop in renewal rates of first-year members from 76% to 75%. While most B2C companies could be happy with that sort of renewal numbers (B2B benchmarks are usually around 80%-90%), Reuters makes this 1% drop sound dire. However, the company’s revenues still rose 56% to $65.5 million in the third quarter.However, the company also said that the loss in expected revenue was due to an unexpected 8% increase in marketing, and that could be indicative of trouble. With free review sites like Yelp and HomeAdvisor gaining ground, and recent bad press for Angie’s List on their advertising practices, consumers may start balking at the idea of paying for vendor reviews.So, once again, a paid content business is being threatened by free sites. Got any advice for Angie to help her stay relevant and in business?

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