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]

Group 1 - The article highlights Paul Franke's extensive experience in trading and investment, emphasizing his successful track record as a stock picker and his innovative strategies like "Victory Formation" and "Bottom Fishing Club" [1] - Franke's investment approach focuses on identifying supply/demand imbalances through specific stock price and volume movements, which are critical for achieving stock market outperformance [1] - The recommendation for investors includes using 10% or 20% stop-loss levels on individual stocks and maintaining a diversified portfolio of at least 50 well-positioned stocks to enhance performance [1] Group 2 - The "Bottom Fishing Club" articles target deep-value stocks or those showing significant positive technical momentum reversals, while the "Volume Breakout Report" discusses stocks with strong price and volume trends [1]

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]

Index Changes - Cava Group Inc. will be added to the S&P MidCap 400, replacing Altair Engineering Inc. effective March 31, 2025 [1][4] - Angi Inc. will be added to the S&P SmallCap 600, replacing The ODP Corp. effective April 2, 2025 [1][4] Company Actions - Altair Engineering was acquired by Siemens AG, leading to its removal from the S&P MidCap 400 [4] - The ODP Corp.'s market capitalization is no longer representative of the small-cap market space, resulting in its deletion from the S&P SmallCap 600 [4]

Industry Overview - The gig economy has gained immense popularity post-pandemic, offering individuals the freedom from rigid work schedules and allowing for better balance between personal and professional commitments [1] - The market for the gig economy is projected to grow from $556.7 billion in 2024 to $2.14 trillion by 2033, indicating a compound annual growth rate of approximately 16.2% during the 2024-2033 period [4] Company Insights - Uber is a key player in the gig economy, connecting passengers with drivers through its app, allowing drivers to work as independent contractors with flexible schedules [5][6] - Angi serves as an online marketplace for home services, bridging the gap between homeowners and skilled service professionals, and has seen growth due to its focus on the gig economy [8][9] - DoorDash dominates the U.S. food delivery market with over 65% market share, utilizing independent contractors for deliveries, which allows for a flexible workforce and reduced operational costs [11][12] Business Models - Uber's model allows drivers to choose their working hours and earn based on completed rides, emphasizing flexibility and autonomy [6][7] - Angi's platform connects independent contractors with consumers needing various home services, streamlining the process and supporting flexible work arrangements [10] - DoorDash's gig economy model enables quick scaling of operations to meet fluctuating demand, allowing drivers to work on their terms [14]

Revenue Performance - Total revenue for the year ended December 31, 2024, was $1,185.1 million, a decrease of $173.6 million or 13% compared to $1,358.7 million in 2023[236] - Ads and Leads revenue decreased by $162.3 million, or 14%, primarily due to a $174.5 million decrease in consumer connection revenue, which fell by 22%[236] - Services revenue decreased by $24.5 million, or 21%, attributed to fewer Service Requests and the impact of revenue recognition changes effective January 1, 2023[237] - International revenue increased by $13.2 million, or 11%, driven by a larger professional network and higher revenue per professional[238] - Domestic consumer connection revenue for the year ended December 31, 2024 was $606.6 million, representing 51% of consolidated revenue[334] - International revenue accounted for 11% and 9% of total revenue for the years ended December 31, 2024 and 2023, respectively[323] - Revenue recognition for Services changed in 2023 to a net basis, which would have reduced 2022 revenue by $242.6 million if applied retrospectively[370] Operating Income and Profitability - Gross profit for 2024 was $1,127.5 million, a decrease of $168.7 million or 13% from $1,296.2 million in 2023[241] - Operating income increased to $21.9 million in 2024 from an operating loss of $26.5 million in 2023, driven by improved revenue and cost management[251] - Adjusted EBITDA increased by $26.8 million, or 23%, from $118.5 million in 2023 to $145.3 million in 2024, with an increase in the percentage of revenue from 9% to 12%[254] - The company reported a net loss attributable to Angi Inc. shareholders of $40.9 million for the year ended December 31, 2023, compared to a net earnings of $36.0 million in 2024[271] - Basic earnings per share from continuing operations for 2024 was $0.07, compared to a loss of $0.06 in 2023[347] - Comprehensive income attributable to Angi Inc. shareholders for 2024 was $32,322, compared to a loss of $38,581 in 2023[350] Expenses and Cost Management - Selling and marketing expense decreased by $163.6 million, or 21%, from $765.2 million in 2023 to $601.6 million in 2024, representing 51% of revenue compared to 56% in the previous year[242] - General and administrative expense decreased by $39.4 million, or 11%, from $359.4 million in 2023 to $320.0 million in 2024, accounting for 27% of revenue, up from 26%[244] - Product development expense slightly decreased by $1.2 million, or 1%, from $96.5 million in 2023 to $95.4 million in 2024, representing 8% of revenue compared to 7% in the previous year[247] - Depreciation expense decreased by $7.6 million, or 8%, from $93.6 million in 2023 to $86.1 million in 2024, maintaining 7% of revenue[248] - Amortization of intangibles decreased by $5.4 million, or 67%, from $7.96 million in 2023 to $2.6 million in 2024, with all intangible assets becoming fully amortized[250] - Stock-based compensation expense for the years ended December 31, 2024 and 2023 was $34.8 million and $43.4 million, respectively, indicating a decrease of approximately 19.8% year-over-year[317] Cash Flow and Financial Position - Total cash and cash equivalents increased to $416.4 million as of December 31, 2024, from $364.0 million in 2023, representing a growth of 14.4%[273] - Net cash provided by operating activities attributable to continuing operations was $155.9 million for 2024, up from $94.2 million in 2023, indicating a year-over-year increase of 65.3%[274] - Total cash provided by continuing operations was $51,771,000 in 2024, up from $30,644,000 in 2023, indicating a 68.9% increase[355] - The company experienced a significant increase in accounts receivable by $45.4 million, attributed to the timing of cash receipts[275] - Long-term debt remained stable at $500.0 million, with total long-term debt net of unamortized costs at $496.8 million as of December 31, 2024[273] - The Company’s total shareholders' equity increased to $1.06 billion as of December 31, 2024, compared to $1.04 billion in 2023[345] Strategic Developments - The proposed spin-off of Angi Inc. from IAC is expected to be completed by March 31, 2025, subject to customary conditions[226] - The sale of Total Home Roofing, LLC was completed on November 1, 2023, and is reflected as a discontinued operation in the financial statements[227] - The company has a new stock repurchase authorization of 25 million shares approved on August 2, 2024, with 23.1 million shares remaining as of February 7, 2025[282][283] - Capital expenditures for 2024 were $50.5 million, primarily for investments in capitalized software, with expectations for a 15% to 25% increase in 2025[276][286] Impairments and Valuation - An impairment charge of $2.6 million related to a certain indefinite-lived trade name was identified in the fourth quarter of 2024[305] - The carrying value of goodwill is $883.4 million and $886.0 million at December 31, 2024 and 2023, respectively[295] - The fair value of the Ads and Leads and Services reporting units exceeded their carrying values by $494.5 million and $20.0 million, respectively, as of December 31, 2024[303] - The Company assessed goodwill and indefinite-lived intangible assets for impairment annually, with no impairments identified for the year ended October 1, 2023[397] Taxation and Deferred Revenue - The company recorded an income tax benefit of $16.8 million in 2024, compared to a provision of $1.8 million in 2023, primarily due to the release of a valuation allowance for foreign net operating losses[262] - The balance of the Company's net deferred tax asset is $167.6 million and $145.4 million at December 31, 2024 and 2023, respectively[310] - The Company recognized $45.4 million of revenue from deferred revenue during the year ended December 31, 2024, compared to $48.0 million recognized in 2023[383] Risks and Challenges - The Company's business is subject to risks including dependence on third-party technology providers and exposure to online commerce security risks[418]

Financial Data and Key Metrics Changes - The company reported a nearly $250 million increase in cash flow year-on-year, reaching almost $300 million for IAC's businesses [25] - Angi's EBITDA was significantly reduced from approximately $260 million to $35 million, while capital expenditures (CapEx) increased to $115 million before being cut down to about $50 million [10][14] - Dotdash Meredith's EBITDA expectations dropped from $450 million to $230 million, indicating a challenging financial environment [11] Business Line Data and Key Metrics Changes - Angi has seen a turnaround in performance, with management focusing on improving product quality and customer experience, leading to expectations of revenue growth in the upcoming year [16][27] - Dotdash Meredith experienced a 10% digital revenue growth, driven by performance marketing which grew 22%, indicating strong e-commerce performance [56] Market Data and Key Metrics Changes - The company noted an 8% increase in traffic for Dotdash Meredith, reversing previous declines [17] - The first quarter of 2025 is expected to see a low-20% year-over-year decline due to regulatory changes impacting the market dynamics [48] Company Strategy and Development Direction - The company is focused on spinning off Angi to allow it to operate independently, with management expressing confidence in the leadership of Joey Levin and Jeff Kip [73] - The strategy includes a shift towards a single product and pricing structure for Angi, which is expected to improve operational efficiency and revenue per transaction [95] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in 2026, citing improvements in customer experience and operational adjustments [49][92] - The company is adjusting to regulatory changes while maintaining a competitive position in the marketplace [43] Other Important Information - The company plans to complete the spin-off of Angi by March 31, 2025, with no dividends planned for Angi at the time of the spin [38] - Corporate costs are expected to be elevated in 2025 due to non-recurring expenses related to the spin-off and other legacy matters [124] Q&A Session Summary Question: Could you talk about your motivations for moving to Angi with the spin? - Joey Levin mentioned both personal and professional motivations, emphasizing the asymmetrical upside potential of Angi [34] Question: What are the next steps in the spin process? - Christopher Halpin outlined that the registration statement was filed, and the goal is a seamless transition for Angi as a standalone public company [37] Question: What gives you confidence in improving through the year despite the Q1 guide coming in below expectations? - Jeff Kip explained that the implementation of consumer choice consistent with FCC orders is expected to enhance customer experience and market dynamics [40] Question: Can you discuss the drivers of Dotdash Meredith's 4Q revenue and EBITDA? - Christopher Halpin highlighted strong performance in traffic and advertising, particularly in the food category, contributing to a 10% digital revenue growth [55] Question: How should we think about capital allocation post-Angi spin? - Barry Diller indicated a balanced approach between investing in current businesses and returning capital to shareholders, emphasizing the importance of seeking new opportunities [105] Question: What are the key steps to grow direct traffic and eliminate middlemen? - Christopher Halpin discussed the focus on direct-to-consumer efforts and leveraging premium content to engage customers directly [139]

Core Insights - Angi reported revenue of $267.87 million for the quarter ended December 2024, a decrease of 10.8% year-over-year, with EPS at $0.00 compared to $0.01 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $253.65 million by 5.61%, while the EPS fell short of the consensus estimate of $0.01 by 100% [1] Revenue Breakdown - International revenue was $28.60 million, slightly below the estimated $29.42 million, representing a year-over-year increase of 4.4% [4] - Total domestic revenue was $239.20 million, surpassing the average estimate of $224.19 million, but reflecting a year-over-year decline of 12.4% [4] - Domestic services revenue was reported at $24.80 million, exceeding the estimate of $21.51 million, but showing a decrease of 5% year-over-year [4] - Revenue from domestic ads and leads was $214.50 million, above the estimated $202.73 million, but down 13.1% compared to the previous year [4] Adjusted EBITDA Performance - Adjusted EBITDA for total domestic corporate was -$15.20 million, worse than the average estimate of -$13.59 million [4] - Adjusted EBITDA for total domestic services was -$1.40 million, significantly below the estimate of $3.70 million [4] - Adjusted EBITDA for total domestic ads and leads was $47.90 million, exceeding the average estimate of $36.88 million [4] Stock Performance - Angi's shares have returned +12.2% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Q4 2024 revenue was $267.9 million, down 11% year-over-year from $300.4 million in Q4 2023[3] - Operating income decreased 72% to $2 million in Q4 2024, compared to $7.6 million in Q4 2023[3] - Adjusted EBITDA for Q4 2024 was $31.8 million, a decrease of 23% from $41.4 million in Q4 2023[3] - The company recorded a net loss of $1.3 million in Q4 2024, an improvement from a net loss of $5.6 million in Q4 2023[3] - Revenue for Q4 2024 was $267,869,000, a decrease of 10.8% from $300,433,000 in Q4 2023[21] - Gross profit for Q4 2024 was $251,690,000, down from $283,194,000 in Q4 2023, reflecting a gross margin of 93.9%[21] - Operating income for the year 2024 was $21,885,000, compared to a loss of $26,498,000 in 2023[21] - Net earnings attributable to Angi Inc. shareholders for the year 2024 were $36,004,000, a significant improvement from a loss of $40,940,000 in 2023[21] Cash Flow and Financial Stability - Net cash provided by operating activities for the twelve months ended December 31, 2024, increased by $61.8 million to $155.9 million[9] - Free Cash Flow for the same period increased by $59 million to $105.4 million, driven by favorable working capital and higher Adjusted EBITDA[9] - Cash and cash equivalents increased to $416,434,000 in 2024 from $364,044,000 in 2023, indicating a positive cash flow trend[23] - Total current liabilities decreased to $231,678,000 in 2024 from $258,655,000 in 2023, showing improved financial stability[23] - Net cash provided by operating activities attributable to continuing operations was $155,941,000 in 2024, compared to $94,184,000 in 2023, indicating stronger operational efficiency[25] - The company reported a decrease in accounts receivable to $36,670,000 in 2024 from $51,100,000 in 2023, reflecting improved collection efforts[23] Revenue Breakdown - International revenue grew by 5% in Q4 2024, while domestic revenue decreased by 12%[5] - Total domestic revenue for Q4 2024 was $31.3 million, down from $39.5 million in Q4 2023, a decrease of approximately 20.5%[26] - International revenue for the twelve months ended December 31, 2024, was $16.0 million, compared to $13.1 million in 2023, representing an increase of about 22.2%[26] - Ads and Leads revenue for the twelve months ended December 31, 2024, was $180.3 million, compared to $147.4 million in 2023, indicating a growth of approximately 22.3%[26] - Services revenue for the twelve months ended December 31, 2024, was $4.5 million, a decrease from $8.1 million in 2023, reflecting a decline of about 44.4%[26] Future Projections - For the full year 2025, Angi Inc. expects operating income between $25 million and $60 million and Adjusted EBITDA between $135 million and $150 million[4] - The company projects Q1 2025 Adjusted EBITDA to exceed $20 million and FY 2025 Adjusted EBITDA to be between $135 million and $150 million[27] - Stock-based compensation expense for Q1 2025 is expected to be between $(5) million and $0, with a full-year estimate of $10 million to $20 million[27] Company Strategy and Market Presence - The company emphasizes the importance of Free Cash Flow as a measure of cash generated from operations, which is critical for evaluating financial health[31] - The company is focused on expanding its market presence and enhancing its product offerings to drive future growth[42] - Angi has assisted over 150 million people with home projects since its inception in 1995[43] - The company has a nationwide network of skilled home professionals, supporting hundreds of thousands of small local businesses[43]