ANGI Homeservices(US:ANGI)2025-02-28 21:06Revenue 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]