Angie's List posts surprise loss in first quarter

Angie's List reported Wednesday a surprise loss during its first quarter, as the online recommendations service prepares to pull down a paywall on reviews starting this summer.

The company reported a net loss of seven cents a share. Analysts polled by S&P Global Market Intelligence forecast a profit of five cents per share. The company reported revenue of $83.9 million, flat compared to last year and short Wall Street estimates.

Despite missing on earnings and gross paid memberships added during the quarter, shares of Angie's List were up nearly 5% in midday trading.

In March, Angie's List announced it was replacing its subscription model with tiered plans that include free access to the service's collection of user reviews. The tiered option has been rolled out in test markets and performed strongly, says CEO Scott Durchslag.

"These encouraging results give us confidence that our upcoming nationwide freemium rollout will drive a re-acceleration of our business," said Durchslag in a statement.

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