ANGI Homeservices(US:ANGI)2024-11-12 11:04Revenue 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]