"The team at Angi has worked very hard to earn the right to stand on its own as an independent public company and we are proud of this accomplishment," said Jeff Kip, CEO, Angi. " Over the last two and a half years, we have significantly improved our customer experience and driven increased profitability and cash flow while focusing on the right things to capture the long-term opportunity ahead. With a healthy balance sheet, we are intensely focused on our mission of Jobs Done Well and delivering on our str ...

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]

Core Viewpoint - Angi Inc. has released its fourth quarter financial results and will host a conference call to discuss these results alongside IAC's performance [1] Company Overview - Angi Inc. (NASDAQ: ANGI) assists homeowners in completing home projects and supports home service professionals in business growth, having helped over 150 million people with home maintenance and improvement [3] - The company has evolved over 25 years from helping people find skilled home professionals to offering a comprehensive platform for booking, hiring, and researching home services [3] IAC Overview - IAC (NASDAQ: IAC) is focused on building companies and has evolved into a conglomerate with 11 public companies, including Angi Inc. and others like Dotdash Meredith and Care.com [4] - The company emphasizes financially disciplined opportunism and has a global presence with headquarters in New York City [4] Upcoming Events - A conference call will take place on February 12, 2025, at 8:30 a.m. ET, featuring key executives from both Angi Inc. and IAC [1]

Core Insights - Homeownership remains a vital aspect of the American dream, with 93% of homeowners planning to undertake home projects in 2025 despite a 12% decline in total spending on home projects in 2024 [1][6][8] Homeowner Sentiment and Behavior - 67% of homeowners prefer renovating their current homes over moving, highlighting the value placed on homeownership amid economic challenges [2][11] - 43% of homeowners reported increased stress related to home repairs over the past year, with home repairs being the most stressful budget item, surpassing healthcare and childcare [2][6] Spending Trends - Homeowners spent an average of $12,050 on home projects in 2024, down from $13,667 in 2023, with a shift towards essential upkeep and lifestyle-driven upgrades [8][11] - Boomers led home spending in 2024, averaging $14,140, while Millennials focused on maintenance, spending $2,316 [7][11] Project Preferences and Future Planning - Popular upcoming projects for 2025 include routine maintenance (36%), interior painting (22%), and flooring installations (13%) [11] - 46% of homeowners plan large-scale projects over the next five years, such as kitchen remodels (31%) and bathroom upgrades (28%) [11] Challenges Faced by Homeowners - 54% of homeowners struggle to find qualified professionals for projects, leading to delays and higher costs [7] - Over 50% of homeowners encountered unexpected costs during project completion, particularly for materials and labor [7] Generational Insights - 63% of homeowners aged 18-44 are actively saving for future projects, compared to 49% of homeowners aged 65 and older [7] - Multigenerational households, comprising 1 in 4 homeowners, are more likely to undertake larger renovations [7]

Spin-off of Angi - IAC plans to spin off its full stake in Angi to its shareholders, with the transaction expected to occur in the first half of 2025 but not before March 31 [1][4][7] - The spin-off will allow IAC management to focus on its broader portfolio and new growth opportunities, while enhancing its ability to use stock for acquisitions and employee incentives [1][4] Executive Leadership Changes - IAC CEO Joey Levin will step down and become an advisor to the media company, while also taking on the role of Executive Chair at Angi, working alongside Angi CEO Jeff Kip [2][4] - IAC will not replace Levin as CEO, instead, CFO and COO Christopher Halpin and Chief Legal Officer Kendall Handler will report directly to Chairman Barry Diller [3][4] Market Reaction - Following the announcement, IAC shares declined by approximately 3.5%, while Angi shares rose by about 3% [2] Corporate Structure - Dotdash Meredith, the parent company of Investopedia, is a subsidiary of IAC [3]