Angie’s List may be seeking a partner or a buyer after watching its sales slide for more than a year.

The Indianapolis company reported disappointing third-quarter results on Tuesday but shares surged 7 percent in early trading on the possibility of a sale.

By late morning, gains in the shares had been trimmed to 3.3 percent, or $7.95.

The company is working with Allen & Co. and BofA Merrill Lynch to explore “strategic alternatives,” it said.

Last year, Angie’s List rejected a $512 million takeover offer from internet company IAC/InterActiveCorp. It said the per-share offer of $8.75 was too low. Shares had fallen to around $6.30 by July.

In the third quarter, revenue from memberships fell 20 percent, to $13.7 million, as the company swung to a loss of $16.8 million from a profit of $91,000 last year.