Financial Data and Key Metrics Changes - The first quarter performance was solid, but revenue dropped significantly due to the implementation of Homeowner Choice, which affected lead volume [6][11] - The company reported a 3357% decline in network service requests and leads, primarily due to the requirement for homeowners to choose their pros [13][14] - Proprietary service request declines have decelerated materially, with proprietary lead declines nearly flat for the quarter [15] Business Line Data and Key Metrics Changes - The pro win rate increased by 10% after the implementation of Homeowner Choice, indicating improved job completion rates [9] - The volume of newly acquired pros decreased by 41%, but the value creation on this smaller base is nearly 50% greater than a year ago [16] - The average leads per active pro decreased from 15 to 11, indicating significant capacity in the existing network [17] Market Data and Key Metrics Changes - The Canadian business faced challenges due to an old platform, but has since transitioned to a more profitable model, resulting in a decline in revenue but an increase in profitability [58] - International revenue is impacted by regulatory matters in Europe, including ID checks for new and existing pros, leading to a temporary slowdown [60] Company Strategy and Development Direction - The company is focused on improving the homeowner experience and driving successful matches between homeowners and pros, which remains unchanged post-independence [80] - The transition to a self-serve platform for pro acquisition is expected to increase efficiency and grow the pro count over time [86] Management's Comments on Operating Environment and Future Outlook - The macro environment has led to a modest decline in homeowner volume, but the company anticipates that pros will increasingly rely on their platform for demand [25][26] - The company expects to return to revenue growth in 2026, driven by improvements in proprietary channels and revenue per lead [33] Other Important Information - The company has reduced fixed expenses and CapEx by $100 million compared to 2022, while maintaining staffing levels to support growth [30] - The implementation of AI technology is expected to enhance the customer experience and operational efficiencies [51] Q&A Session Summary Question: Can you contrast elements of consumer wallet spend against the services landscape? - Management noted that consumers are prioritizing necessary maintenance over discretionary spending in recessionary environments, impacting homeowner volume [25][26] Question: What are the capital allocation priorities now that the company is independent? - The company plans to buy back shares as appropriate and is focused on core operations while considering strategic acquisitions if they are accretive to shareholders [39][40] Question: What product initiatives are planned to improve the ecosystem? - The company is focused on refining the homeowner experience and has introduced an AI helper to enhance job matching [46][47] Question: Can you provide insight into the international revenue growth challenges? - The Canadian business has transitioned to a more profitable model, but revenue is declining due to the elimination of a high-cost sales force [58][59] Question: How does the company view the pro acquisition strategy moving forward? - The company is concentrating on acquiring higher capacity pros at lower costs and plans to reactivate previously engaged pros [69][70]