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]

Group 1 - Upland Software, Inc. (UPLD) has seen a 12.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) has experienced a 38.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Under Armour, Inc. (UAA) has had a 22.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Flushing Financial Corporation (FFIC) has seen an 8.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Angi Inc. (ANGI) has experienced a significant 300% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Financial Data and Key Metrics Changes - The company is contemplating a spin-off of Angi, which would be the first spin-out in four years, indicating a strategic shift towards creating focused companies [7] - Profits and cash flow have improved significantly, with a strong emphasis on customer experience and job satisfaction driving business performance [9] - The company expects to maintain profitability in 2025 despite anticipated revenue declines in the first quarter, with a return to growth projected for 2026 [17] Business Line Data and Key Metrics Changes - The jobs done well rate has increased by approximately 30% over the last year, and homeowner NPS has risen nearly 60% year-over-year [14] - Digital Advertising revenues grew by 26% in Q3, with core sessions increasing by 14%, marking a positive trend in traffic and monetization [26] - The DDM Digital segment is expected to achieve a baseline growth of 10% in digital revenue driven by traffic growth and improved monetization [29] Market Data and Key Metrics Changes - The company anticipates a decline in revenue in the first quarter of 2025, similar to the decline from Q4 2023 to Q1 2024, but expects sequential growth thereafter [17] - Digital revenue growth in October was only 7%, attributed to consumer distraction and advertiser caution ahead of the election [28] - The advertising spend slowdown was broad-based, with categories like retail and technology showing recovery post-election [59] Company Strategy and Development Direction - The spin-off of Angi is aimed at allowing the company to focus on fewer initiatives and execute them more effectively, while also providing Angi with a more liquid currency for M&A and capital allocation [12][7] - The company is committed to enhancing customer experience through a consumer choice model, which is expected to drive long-term growth despite short-term revenue declines [15] - The Care segment is being positioned as a scale business with significant growth potential, focusing on improving product and customer experience [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial trajectory of the business, citing improved customer experience and retention as key drivers for future growth [17] - The company is actively analyzing corporate costs in anticipation of the Angi spin-off, aiming for a more efficient operational structure [56] - The macroeconomic environment appears stable, with no significant consumer downturn observed, although October showed some advertising spend challenges [58] Other Important Information - The integration of OpenAI into the D/Cipher platform is expected to enhance advertising capabilities and expand inventory offerings [39] - The company holds 64.7 million shares of MGM, with a basis just below $1.3 billion, and has sufficient net operating losses to offset any taxable gains from potential sales [23] Q&A Session Summary Question: Why is the company exploring the Angi spin-off now? - The decision is based on the standalone strength and profitability of Angi, allowing for a more focused strategy and better investor access [12] Question: What gives confidence in Angi's return to revenue growth? - The focus on improving customer experience and retention, along with a shift to a consumer choice model, is expected to drive future growth [13] Question: Can you elaborate on DDM Digital revenue drivers? - Digital Advertising revenues grew significantly, with strong performance in core sessions and programmatic advertising, despite some challenges in performance marketing [26] Question: What is the outlook for the Care segment? - The Care segment is positioned for growth, leveraging AI and machine learning to improve matching and customer experience [34] Question: What is the company's approach to capital allocation? - The company is currently focused on accumulating cash and is selective about M&A opportunities, maintaining a high bar for any potential investments [37] Question: How is the company addressing the advertising landscape? - The company is enhancing its ad tech capabilities and integrating D/Cipher into more demand channels to increase addressable market opportunities [50]

Revenue Performance - For the three months ended September 30, 2024, total revenue decreased by $54.5 million, or 16%, to $296.7 million compared to $351.2 million in the same period of 2023[117] - Ads and Leads revenue decreased by $50.8 million, or 17%, primarily due to a $51.7 million, or 25%, decrease in consumer connection revenue[118] - Services revenue decreased by $6.3 million, or 21%, attributed to a lower number of Service Requests[119] - International revenue increased by $2.5 million, or 9%, driven by a larger professional network and higher revenue per professional[119] - For the nine months ended September 30, 2024, total revenue decreased by $141.1 million, or 13%, to $917.2 million compared to $1,058.3 million in the same period of 2023[117] - Ads and Leads revenue for the nine months decreased by $129.9 million, or 15%, mainly due to a $145.5 million, or 23%, decrease in consumer connection revenue[120] - Membership subscription revenue for the three months ended September 30, 2024, decreased by $2.7 million, or 21%[118] Cost and Expenses - Cost of revenue for the three months increased by $1.1 million, or 8%, to $14.8 million, representing 5% of total revenue[122] - Selling and marketing expenses for the nine months ended September 30, 2024, decreased by $137.8 million, or 23%, totaling $470.8 million[129] - General and administrative expenses for the nine months ended September 30, 2024, decreased by $41.8 million, or 14%, totaling $246.7 million[133] - Product development expenses for the three months ended September 30, 2024, increased by $2.8 million, or 13%, totaling $24.3 million[138] - Ads and Leads cost of revenue increased by $3.9 million, or 16%, due to higher hosting fees and non-income taxes[124] - Services cost of revenue decreased by $8.2 million, or 45%, primarily due to a decrease in payments to third-party professionals[125] Profitability Metrics - Gross profit for the nine months ended September 30, 2024, decreased by $137.2 million, or 14%, totaling $875.8 million[128] - The gross margin for the nine months ended September 30, 2024, was 95%, down from 96% in the same period of 2023[127] - Operating income for the three months ended September 30, 2024, increased significantly to $7.8 million from an operating loss of $7.9 million in the same period of 2023, primarily due to revenue growth in Ads and Leads[142] - Adjusted EBITDA for Ads and Leads increased by $10.1 million, or 31%, to $42.2 million for the three months ended September 30, 2024, driven by improved marketing efficiencies[145] - Total Adjusted EBITDA for the three months ended September 30, 2024, was $35.4 million, a 27% increase from $27.8 million in the same period of 2023[144] - Adjusted EBITDA for the nine months ended September 30, 2024, was $113.6 million, up from $77.1 million in the same period of 2023, representing a 47% increase[158] Cash Flow and Capital Management - Cash and cash equivalents totaled $395.2 million as of September 30, 2024, compared to $364.0 million at the end of 2023, indicating a 8.5% increase[164] - Net cash provided by operating activities attributable to continuing operations for the nine months ended September 30, 2024, was $115.9 million, compared to $85.2 million in the same period of 2023, reflecting a 36% increase[165] - The company repurchased 11.4 million shares of its Class A common stock at an average price of $2.25 per share, totaling approximately $25.6 million during the nine months ended September 30, 2024[173] - Capital expenditures for 2024 are expected to increase by approximately 10% to 15% compared to 2023 expenditures of $47.8 million, primarily due to investments in capitalized software[176] - The company reported a long-term debt of $496.6 million as of September 30, 2024, consistent with the previous quarter[164] - The company anticipates that existing cash and expected positive cash flows will be sufficient to fund its normal operating requirements for the next twelve months[179] Share Repurchase and Stock Information - The company repurchased a total of 3,236,677 shares of Class A common stock during the three months ended September 30, 2024, at an average price of $2.30 per share[197] - As of the end of September 2024, approximately 24.2 million shares remained available for repurchase under publicly announced plans[197] - From October 1, 2024, to November 8, 2024, the Company repurchased an additional 1,129,186 shares at an average price of $2.49 per share[199] - The company expects to continue its stock repurchase program under the new authorization of 25 million shares approved on August 2, 2024[173] Legal and Regulatory Matters - The company believes that the allegations in the ongoing class action lawsuit against HomeAdvisor are without merit and will continue to defend vigorously[189] - The court denied the plaintiffs' petition for leave to appeal the district court's partial denial of class certification in the HomeAdvisor litigation on July 18, 2024[189] - The company has ongoing litigation related to deceptive practices affecting professionals in its network, with claims for fraud and breach of contract[190] - The court denied the plaintiffs' motion for class certification regarding lead quality and monetary relief, while certifying classes for injunctive relief based on intellectual property misappropriation[191] Risk Factors and Internal Controls - There have been no material changes to the risk factors disclosed in the Annual Report for the fiscal year ended December 31, 2023[194] - The company continues to monitor and evaluate its internal control over financial reporting to improve overall effectiveness[185] - The company continues to face uncertainties related to the home services market's migration online and the competitive landscape[192] - The company faces various risks, including the ability to market products effectively and maintain relationships with quality professionals, which could impact future performance[192]

[Executive Summary & Q3 2024 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q3%202024%20Highlights) Angi Inc. reported Q3 2024 revenue decline but improved profitability, announced a potential IAC spin-off, and issued positive FY2024 guidance [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Angi Inc. reported a 16% year-over-year revenue decrease in Q3 2024, reaching $296.7 million, but operating income significantly improved to $7.8 million from a loss of $7.9 million in Q3 2023, and Adjusted EBITDA increased by 27% to $35.4 million, primarily driven by the Ads and Leads and Services segments Q3 2024 Summary Financial Results | Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Growth | | :-------------------------- | :------------------- | :------------------- | :------- | | Revenue | 296.7 | 351.2 | -16 % | | Operating income (loss) | 7.8 | (7.9) | NM | | Net earnings (loss) | 35.2 | (5.4) | NM | | Diluted earnings (loss) per share | $0.07 | ($0.01) | NM | | Adjusted EBITDA | 35.4 | 27.8 | 27 % | - Operating income increased **$16 million** to **$8 million** and Adjusted EBITDA increased **27%** to **$35 million**, driven by Ads and Leads and Services[3](index=3&type=chunk) - International revenue grew **9%** year-over-year[3](index=3&type=chunk) [Strategic Announcements](index=1&type=section&id=Strategic%20Announcements) IAC announced it is considering a spin-off of its ownership stake in Angi Inc. to its shareholders - IAC is considering a spin-off of its ownership stake in Angi Inc. to its shareholders[2](index=2&type=chunk) [Share Repurchase Activity](index=1&type=section&id=Share%20Repurchase%20Activity) Angi Inc. repurchased 2.5 million common shares for $6.2 million between August 2 and November 8, 2024, at an average price of $2.48 per share, bringing total repurchases to 15.9 million shares since November 2023 - Angi Inc. repurchased **2.5 million** common shares for **$6.2 million** (average **$2.48** per share) between August 2, 2024, and November 8, 2024[4](index=4&type=chunk) - Since November 2023, Angi Inc. has repurchased **15.9 million** shares[4](index=4&type=chunk) [Year-to-Date Performance](index=1&type=section&id=Year-to-Date%20Performance) For the nine months ended September 30, 2024, Angi Inc. saw significant improvements in profitability and cash flow, with operating income increasing by $54 million to $20 million, Adjusted EBITDA rising by 47% to $114 million, and Free Cash Flow increasing by $29 million to $78 million - Year-to-date operating income increased **$54 million** to **$20 million**[3](index=3&type=chunk) - Year-to-date Adjusted EBITDA increased **47%** to **$114 million**[3](index=3&type=chunk) - For the nine months ended September 30, 2024, net cash provided by operating activities increased **$31 million** to **$116 million**, and Free Cash Flow increased **$29 million** to **$78 million**[4](index=4&type=chunk) [Full Year 2024 Outlook](index=1&type=section&id=Full%20Year%202024%20Outlook) Angi Inc. expects full-year 2024 operating income to be between $10 million and $35 million, and Adjusted EBITDA to range from $140 million to $145 million Full Year 2024 Outlook | Metric | FY 2024 Outlook ($ millions) | | :------------- | :--------------------------- | | Operating income | $10-$35 | | Adjusted EBITDA | $140-$145 | - Angi Inc. expects **$10-$35 million** of operating income and **$140-$145 million** of Adjusted EBITDA for the full year 2024[5](index=5&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section analyzes Angi Inc.'s Q3 2024 financial performance, including revenue breakdown, operating income, Adjusted EBITDA, and income taxes [Revenue Breakdown](index=2&type=section&id=Revenue%20Breakdown) Total revenue for Q3 2024 was $296.7 million, a 16% decrease year-over-year, primarily due to declines in Ads and Leads and Services revenue, while International revenue grew by 9% Q3 2024 Revenue by Segment | Segment | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Growth | | :-------------- | :------------------- | :------------------- | :------- | | Ads and Leads | 241.2 | 292.0 | -17 % | | Services | 23.7 | 30.0 | -21 % | | Total Domestic | 264.9 | 322.0 | -18 % | | International | 31.8 | 29.3 | 9 % | | Total | 296.7 | 351.2 | -16 % | - Ads and Leads revenue decreased **17%** due to ongoing user-experience enhancements, lower sales and marketing spend, resulting in lower Service Requests and new professional acquisitions[6](index=6&type=chunk) - Services revenue decreased **21%** due to margin-optimization initiatives and lower Service Requests[6](index=6&type=chunk) - International revenue increased **9%** primarily due to a larger professional network and higher revenue per professional[6](index=6&type=chunk) [Operating Income (Loss) and Adjusted EBITDA](index=3&type=section&id=Operating%20Income%20%28Loss%29%20and%20Adjusted%20EBITDA) Overall operating income increased by $15.7 million to $7.8 million, and Adjusted EBITDA improved by 27% to $35.4 million, largely driven by the Ads and Leads segment's strong performance due to reduced expenses Q3 2024 Operating Income (Loss) and Adjusted EBITDA by Segment | Segment | Q3 2024 Operating Income (Loss) ($ millions) | Q3 2023 Operating Income (Loss) ($ millions) | Growth | | :-------------- | :------------------------------------------- | :------------------------------------------- | :------- | | Ads and Leads | 21.1 | 8.1 | 160 % | | Services | (0.3) | (3.9) | 92 % | | Corporate | (15.7) | (14.9) | -6 % | | Total Domestic | 5.1 | (10.6) | NM | | International | 2.7 | 2.8 | -1 % | | Total | 7.8 | (7.9) | NM | | | | | | | Segment | Q3 2024 Adjusted EBITDA ($ millions) | Q3 2023 Adjusted EBITDA ($ millions) | Growth | | :-------------- | :------------------------------------------- | :------------------------------------------- | :------- | | Ads and Leads | 42.2 | 32.2 | 31 % | | Services | 3.9 | 3.5 | 10 % | | Corporate | (14.4) | (11.9) | -21 % | | Total Domestic | 31.7 | 23.8 | 33 % | | International | 3.7 | 4.0 | -9 % | | Total | 35.4 | 27.8 | 27 % | [Ads and Leads Segment Performance](index=3&type=section&id=Ads%20and%20Leads%20Segment%20Performance) The Ads and Leads segment's operating income surged by 160% to $21.1 million, and Adjusted EBITDA increased by 31% to $42.2 million, primarily due to reduced selling, marketing, and general and administrative expenses - Ads and Leads operating income increased **160%** to **$21.1 million**[7](index=7&type=chunk) - Ads and Leads Adjusted EBITDA increased **31%** to **$42.2 million**, driven by lower selling and marketing expense and lower general and administrative expense[7](index=7&type=chunk) - The segment experienced **$2.6 million** lower amortization of intangibles and **$2.0 million** lower depreciation[7](index=7&type=chunk) [Services Segment Performance](index=3&type=section&id=Services%20Segment%20Performance) The Services segment's operating loss decreased by 92% to $0.3 million, and Adjusted EBITDA increased by 10% to $3.9 million, mainly attributed to better unit economics and lower operating expenses - Services operating loss decreased **92%** to **$0.3 million**[7](index=7&type=chunk) - Services Adjusted EBITDA increased **10%** to **$3.9 million** due to improved unit economics and lower operating expenses, partially offset by lower revenue[7](index=7&type=chunk) - The segment benefited from **$2.8 million** lower depreciation[7](index=7&type=chunk) [International Segment Performance](index=4&type=section&id=International%20Segment%20Performance) International operating income decreased by 1% to

Angi (ANGI) reported $296.72 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 20.2%. EPS of $0.07 for the same period compares to -$0.01 a year ago. ...

DENVER, Nov. 11, 2024 (GLOBE NEWSWIRE) -- Angi Inc. (NASDAQ: ANGI) posted its third quarter financial results on the investor relations section of its website at ir.angi.com/quarterly-earnings. As announced previously, Angi Inc. and IAC will host a conference call to discuss both companies’ respective third quarter results and to answer questions. The call will be held on Tuesday, November 12, 2024, at 8:30 a.m. ET. Joey Levin, CEO of IAC and Chairman of Angi Inc., Jeffrey Kip, CEO of Angi Inc., and Christo ...

Core Viewpoint - Angi Inc. is expected to report a decline in revenues and mixed earnings results for the third quarter of 2024, reflecting ongoing challenges in user engagement and service requests [3][6][7]. Revenue Estimates - The Zacks Consensus Estimate for revenues is $295.9 million, indicating a 20.42% decline year-over-year [3]. - Domestic Ads and Leads revenues are estimated at $240 million, reflecting a 17.8% year-over-year decline [6]. - Domestic Service revenues are projected at $23.94 million, showing a 20.2% decline year-over-year [7]. - International revenues are expected to be $32.04 million, indicating a growth of 9.4% year-over-year [10]. Earnings Estimates - The earnings estimate is pegged at breakeven, an improvement from a loss of 1 cent in the same period last year [3]. - Angi delivered an earnings surprise of 200% in the last reported quarter, with an average surprise of 129.17% over the trailing four quarters [4]. Operational Factors - The company's performance is impacted by lower service requests and a reduction in sales and marketing spend, which may have affected user experience enhancements [6]. - Angi has optimized its sales force to improve retention and service quality, which is expected to drive profitability in the long term [7]. - The integration of online enrollment for service professionals aims to attract high-quality professionals and reduce acquisition costs [8]. Market Performance - Year-to-date, Angi's stock has returned 1.6%, underperforming the Zacks Computer and Technology sector's return of 28.5% [11]. - The stock trades at a forward 12-month P/S ratio of approximately 1.06, indicating a discounted valuation compared to the broader Zacks Internet - Content industry [13][14]. Strategic Outlook - Angi operates in the growing home services marketplace, with a focus on service provider subscriptions and consumer connection fees [15]. - The shift towards a fixed-price services model could enhance monetization, although margin pressures remain a concern [15]. - Key metrics to monitor include service provider acquisition costs, user engagement rates, and stability of the take rate [15]. Conclusion - Given the ongoing operational transformation and market uncertainties, a cautious approach is recommended, with a focus on fixed-price services growth and consumer demand trends [17].

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value ...

Angi (ANGI) shares have gained 2.5% year to date, outperforming the broader Zacks Computer and Technology sector’s decline of 1.7%. It has also outperformed Zacks Internet – Content industry and peers like DHI Group (DHX) , Tencent Music Entertainment Group (TME) , and Shutterstock (SSTK) . Over the same time frame, shares of DHI Group, Tencent Music Entertainment Group and Shutterstock have declined 14.8%, 23% and 28.3%, respectively, while the industry has appreciated 0.3%.This outperformance can be attri ...