Danger Zone stock, Angie’s List (ANGI), reported a larger than expected loss on Wednesday, and its revenues grew slower than expected. The stock is down over 12% after hours. The stock is now down 58% since my original bearish call in September.

Underneath the headlines, two big numbers stand out to me. One is 77%: the percent of total revenue provided by service providers, up from 73% a year ago. The other number is $90: the marketing spend per new member, up 13% from $80 a year ago.

These two numbers reinforce the fact that ANGI, which markets itself as a “consumer driven organization” is actually beholden to service providers. Consumers recognize this fact. As the unreliability of its ratings becomes more clear, ANGI has to spend more in marketing to keep acquiring new members. Competitors like Yelp (YELP) and Porch.com (which I highlighted as a threat to ANGI in January) are also slowing its growth.

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