Core Insights - Angi Inc. will participate in the 53rd Annual J.P. Morgan Global Technology, Media and Communications Conference on May 15, 2025, with CEO Jeffrey Kip presenting at 8:40 a.m. ET [1] Company Overview - Angi Inc. (NASDAQ: ANGI) was founded in 1995 with the goal of helping homeowners find skilled home professionals in their area, evolving over 30 years to assist with various home projects [2] - The company has an extensive nationwide network of skilled home professionals and has helped over 150 million people with home maintenance, repair, renovation, and improvement [2] - Angi has also supported hundreds of thousands of small local businesses in growing their operations [2]

Angi (ANGI) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Andrew Russakoff - CFOJeff Kip - CEOEric Sheridan - Managing DirectorCory Carpenter - Internet Equity ResearchJustin Patterson - Managing DirectorYgal Arounian - Director - Internet Equity Research Conference Call Participants Stephen Ju - AnalystDaniel Kurnos - Equity Research Analyst Operator Please note this event is being recorded. I would now like to turn the conference over to Andrew Rasukoff, CFO. Please go ahead. Andrew ...

Angi (ANGI) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Andrew Russakoff - CFOJeff Kip - CEOEric Sheridan - Managing DirectorCory Carpenter - Internet Equity ResearchJustin Patterson - Managing DirectorYgal Arounian - Director - Internet Equity Research Conference Call Participants Stephen Ju - AnalystDaniel Kurnos - Equity Research Analyst Operator Please note this event is being recorded. I would now like to turn the conference over to Andrew Rasukoff, CFO. Please go ahead. Andrew ...

Financial Data and Key Metrics Changes - The first quarter performance was solid, but revenue dropped significantly due to the implementation of Homeowner Choice, which affected lead volume [6][10] - The company reported a 3357% decline in network service requests and leads, primarily due to the requirement for homeowners to choose their pros [12][13] - Proprietary service request declines have decelerated materially, with proprietary lead declines nearly flat for the quarter [14] Business Line Data and Key Metrics Changes - The pro win rate increased by 10% after the implementation of Homeowner Choice, indicating improved job completion rates [8] - The volume of newly acquired pros decreased by 41%, but the value creation on this smaller base is nearly 50% greater than a year ago [16] Market Data and Key Metrics Changes - The Canadian business faced challenges due to an old platform, leading to a transition to a more profitable international platform, which has improved profitability despite revenue declines [59][60] - Regulatory impacts in Europe, including ID checks, have caused a temporary slowdown in new pro acquisition, affecting overall revenue growth [62] Company Strategy and Development Direction - The company is focused on improving the homeowner experience and driving jobs done well, which is seen as essential for long-term value creation [9][80] - The transition to a Single Pro product is expected to enhance customer experience and engagement, leading to better job matching [50][51] Management's Comments on Operating Environment and Future Outlook - The macro environment has led to a modest decline in homeowner volume, but countercyclical dynamics may drive increased reliance on the company's services [25][27] - The company anticipates revenue growth in 2026, driven by improvements in proprietary channels and revenue per lead [34][40] Other Important Information - The company has reduced fixed expenses and CapEx by $100 million compared to 2022, positioning itself for future growth [31] - The implementation of AI technology is expected to enhance the customer experience and operational efficiencies [53][54] Q&A Session Summary Question: Can you contrast elements of consumer wallet spend against the services landscape? - Management noted that consumers are prioritizing necessary maintenance over discretionary spending in recessionary environments, impacting homeowner volume [25][26] Question: How should investors think about the investments being made in product and platform? - Management highlighted that investments have led to improved customer metrics and operating efficiency, despite lower revenue [31][32] Question: What gives confidence in revenue trends improving through the year? - Management pointed to significant improvements in proprietary service requests and leads, along with anticipated growth in revenue per lead [40] Question: What are the capital allocation priorities now that the company is independent? - Management indicated a focus on share buybacks and potential strategic acquisitions that are accretive to shareholders [41][42] Question: What are the next product initiatives to improve the ecosystem? - Management discussed ongoing initiatives to enhance job matching and the introduction of AI to improve the homeowner experience [48][49] Question: Can you provide color on the revenue growth affecting international markets? - Management explained that transitioning to a more profitable platform in Canada has led to revenue declines but improved profitability [59][60]

Changes to Key Metrics Q1 2025 Primer 1 Change of Metric from Transacting Professionals to Active Pros A key sign of Pro engagement on our platform is Pros making themselves available to be presented to homeowners for particular Service Requests and paying for the corresponding Leads if selected by the homeowner. We've redesigned the metric - Average Monthly Active Pros - to best capture that activity. The current Transacting Professional metric is focused on whether a Pro has generated revenue during the q ...

Revenue Performance - Domestic revenue decreased by $57.5 million, or 21%, primarily due to a $45.1 million (28%) drop in lead revenue [127]. - International revenue decreased by $2.0 million, or 6%, due to a management decision to change the business model of the Canadian business [128]. - Total revenue for the three months ended March 31, 2025, was $245.9 million, down from $305.4 million in the same period in 2024, representing a decrease of $59.5 million, or 19% [127]. Profitability Metrics - Gross profit decreased by $60.0 million, or 20%, with a gross margin of 95% compared to 96% in the previous year [131]. - Operating income increased to $20.0 million, a 636% increase compared to the previous year, with domestic operating income at $14.0 million and international at $6.0 million [138]. - Adjusted EBITDA decreased by $8.3 million, or 23%, to $27.7 million, with domestic Adjusted EBITDA at $21.6 million, down 26% [141][142]. Expenses Overview - Selling and marketing expenses decreased by $38.5 million, or 25%, driven by reductions in compensation and advertising expenses [132]. - General and administrative expenses decreased by $28.2 million, or 33%, as a percentage of revenue fell from 28% to 23% [134]. - Domestic general and administrative expenses decreased by $28.3 million, or 37%, primarily due to a $15.4 million reduction in compensation expenses and a $5.3 million decrease in the provision for credit losses [135]. - Product development expenses increased by $3.3 million, or 14%, reaching $27.1 million, driven mainly by higher compensation expenses [136]. - Depreciation expenses decreased by $13.9 million, or 58%, totaling $9.9 million, due to reduced capitalized software spending and write-offs related to real estate footprint reduction [137]. - Cost of revenue increased by $0.5 million, or 4%, as a percentage of revenue rose from 4% to 5% [129]. Activity Metrics - Average Monthly Active Pros decreased to 134, down from 157, representing a decline of 14% [127]. - Total service requests decreased by 765, or 19%, from 4,126 to 3,361 [127]. - The number of acquired Pros decreased by 16, or 41%, from 40 to 24 [127]. Cash Flow and Financial Position - As of March 31, 2025, total cash and cash equivalents decreased to $386.6 million from $416.4 million as of December 31, 2024, representing a decline of approximately 7.1% [160]. - Net cash used in operating activities for the three months ended March 31, 2025, was $(3.1) million, a significant decrease compared to $22.3 million provided in the same period of 2024 [161]. - The company reported a net cash outflow of $12.6 million in investing activities primarily for capital expenditures related to capitalized software [163]. - Financing activities resulted in a net cash outflow of $14.3 million, including $9.8 million for the repurchase of 0.6 million shares at an average price of $16.53 per share [164]. - The company believes its existing cash and expected positive cash flows will be sufficient to fund its normal operating requirements for the next twelve months [173]. Share Repurchase and Capital Expenditures - As of May 2, 2025, the company had repurchased a total of 2.3 million shares under its stock repurchase authorization, with no shares remaining from the previous authorization [168]. - The board of directors approved a new stock repurchase authorization of 5 million shares on May 5, 2025 [169]. - The company expects 2025 capital expenditures to increase by approximately 15% to 25% compared to 2024's $50.5 million, driven by investments in capitalized software [171]. Tax and Other Financial Information - The income tax provision increased by $1.2 million, or 35%, to $4.7 million, with an effective income tax rate of 24% [147][148]. - Interest expense remained flat at $5.0 million compared to the same period last year [144]. - Other income, net increased by $0.3 million, or 8%, to $4.5 million, including interest income of $4.3 million [145]. - At March 31, 2025, there was $28.3 million of unrecognized compensation cost related to equity-based awards, expected to be recognized over approximately 2.04 years [140]. - The company may seek additional capital through equity or debt financing for strategic acquisitions or other purposes beyond the next twelve months [173]. - There were no material changes to the company's market-sensitive instruments or positions during the three months ended March 31, 2025 [175]. Net Earnings - The company reported a net earnings attributable to Angi Inc. shareholders of $15.1 million for the three months ended March 31, 2025 [158].

Financial Performance - Revenue for Q1 2025 was $245.9 million, a decrease of 19% compared to $305.4 million in Q1 2024[3] - Operating income increased to $20.0 million from $2.7 million in Q1 2024, representing a growth of 636%[4] - Net earnings for Q1 2025 were $15.1 million, compared to a net loss of $1.6 million in Q1 2024[3] - Adjusted EBITDA was $27.7 million, down 23% from $36.0 million in Q1 2024[4] - Free Cash Flow for Q1 2025 was $(15.7) million, down from $9.5 million in Q1 2024[28] - Domestic revenue for Q1 2025 was $212.6 million, down 21% from $270.0 million in Q1 2024[30] - International revenue for Q1 2025 was $33.4 million, down 6% from $35.4 million in Q1 2024[30] - Total significant expenses for Q1 2025 were $205.2 million, compared to $256.9 million in Q1 2024[33] Cash and Assets - As of March 31, 2025, the company had $386.6 million in cash and cash equivalents[5] - Cash and cash equivalents at the end of Q1 2025 were $386.6 million, down from $416.5 million at the beginning of the period[27] - Total current assets decreased to $465.2 million in Q1 2025 from $495.1 million in Q4 2024[25] - Total liabilities decreased to $756.0 million in Q1 2025 from $768.5 million in Q4 2024[25] - Total shareholders' equity decreased to $1,049.0 million in Q1 2025 from $1,062.8 million in Q4 2024[25] Share Repurchase and Authorizations - The company repurchased 2.3 million shares for $32.0 million between February 12, 2025, and May 2, 2025[4] - The Board of Directors approved a new share repurchase authorization of 5 million shares on May 5, 2025[4] Business Metrics and Performance Indicators - The number of Acquired Pros decreased by 41% year-over-year, from 40,000 in Q1 2024 to 24,000 in Q1 2025[8] - Total Service Requests decreased by 19% year-over-year, from 4,126,000 in Q1 2024 to 3,361,000 in Q1 2025[14] - The Company introduced new metrics to better reflect core business activities, including renaming Monetized Transactions to Leads[6] - The Company introduced new metrics in Q1 2025, including Proprietary Channels, Network Channels, Acquired Pros, and Average Monthly Active Pros to enhance performance tracking[45] - The number of Transacting Pros, which includes professionals that paid for consumer matches or advertising, is a key performance indicator for the Company[51] Strategic Focus and Future Outlook - The Company emphasizes the importance of maintaining relationships with quality Pros and expanding pre-priced offerings to enhance service requests[54] - The Company is focused on developing and monetizing products for mobile and digital devices to improve consumer engagement and service delivery[54] - Forward-looking statements indicate potential risks including market conditions, competition, and the ability to generate sufficient cash to service debt[54] - The Company has helped over 150 million people with home projects and supported hundreds of thousands of small local businesses[55] Definitions and Clarifications - Adjusted EBITDA is defined as operating income excluding stock-based compensation, depreciation, and acquisition-related items, providing a more meaningful comparison with competitors[36] - Free Cash Flow is calculated as net cash from operating activities minus capital expenditures, representing cash generated by operating businesses before non-operational cash movements[37] - Domestic Revenue includes lead revenue for consumer matches, advertising revenue from Pros, and membership subscription revenue, contributing to overall financial performance[46] - International Revenue is primarily from businesses in Europe and Canada, including lead revenue and membership subscription revenue from Pros[47]

Core Insights - Angi Inc. reported its first quarter financial results and a letter to shareholders from CEO Jeffrey Kip, which is available on the investor relations section of its website [1] - A conference call to discuss the first quarter results will take place on May 7, 2025, at 8:30 a.m. ET, featuring CEO Jeffrey Kip and CFO Andrew Russakoff [1] Company Overview - Angi Inc. (NASDAQ: ANGI) assists homeowners in completing home projects and supports home service professionals in growing their businesses [3] - Established in 1995, Angi has evolved to provide services that include finding, booking, and hiring skilled professionals, as well as researching costs and discovering project possibilities [3] - The company has helped over 150 million people with home maintenance, repair, renovation, and improvement, while also aiding hundreds of thousands of small local businesses [3]

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Company Overview - Angi Inc. (NASDAQ: ANGI) assists homeowners in completing home projects and supports home service professionals in business growth [3] - Established in 1995, Angi has evolved to provide services including finding, booking, and hiring skilled professionals, as well as researching costs and discovering project possibilities [3] - The company has helped over 150 million people with home maintenance, repair, renovation, and improvement, and has supported hundreds of thousands of small local businesses [3] Upcoming Financial Events - Angi Inc. will release its first quarter results after market close on May 6, 2025, with a letter to shareholders from CEO Jeff Kip [1] - A conference call to discuss the first quarter results will take place on May 7, 2025, at 8:30 a.m. ET [1] - The live audiocast and replay of the conference call will be accessible to the public through the investor relations section of Angi's website [2]