Financial Data and Key Metrics Changes - Revenue in Q1 increased by 28.7% year over year, reaching $1.36 billion, while adjusted EBITDA was a record $15.6 million, a significant improvement from a loss of $20.1 million in the previous year [4][20][25] - Total transactions increased by 27.8%, with organic transactions up 7.3%, contrasting with a 2.1% decline in the overall market [4][21] - The company generated $19.5 million in free cash flow, marking a new record for Q1 and an improvement from $5.9 million in the same quarter last year [26] Business Line Data and Key Metrics Changes - The title and escrow business saw strong momentum, with attach rates up 695 basis points year over year [6] - Principal agent retention grew to 96.6%, an increase of 30 basis points year over year, indicating strong agent loyalty [5] Market Data and Key Metrics Changes - Market share increased to 6%, up 125 basis points year over year and 95 basis points from Q4 [22] - Gross transaction value reached $52 billion, reflecting a 30.7% increase from the previous year [22] Company Strategy and Development Direction - The company aims to control organic operating expenses at a growth rate of 3% to 4% annually while expanding its agent base and enhancing agent productivity through its platform [14][15] - The acquisition of Christie's International Real Estate is expected to empower independent brokerages and enhance the company's market presence [6][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the volatility in March was due to market uncertainty related to tariff discussions, but they expect a recovery in transactions as stability returns to the market [20][44] - The company believes that the demand for homes is merely deferred rather than eliminated, anticipating that full-year transactions will align with previous expectations if market stability is maintained [44] Other Important Information - The company completed the acquisition of Christie's International Real Estate on January 13, 2025, which is expected to positively impact financial metrics and operational synergies [24][27] - The weighted average share count for Q1 was 550 million, with an expected increase due to the acquisition-related share issuance [27] Q&A Session Summary Question: What was revenue growth tracking ahead of the disruption in March? - Management indicated that revenue was tracking close to the midpoint of guidance before the March volatility, with April tracking expectations [40] Question: What is the latest with NAR's clear cooperation policy? - Management confirmed that the three-phase marketing strategy complies with NAR's updated policies and emphasizes homeowner choice [50][52] Question: How is the company addressing agent recruitment post-NAR changes? - Management reported strong organic recruitment, with 700 new agents added in Q1, indicating continued demand for the company's value proposition [61] Question: What are the churn trends in the quarter? - Churn was in line with historical levels, with no significant changes noted, and the company added agents instead of experiencing churn from the Christie's acquisition [75] Question: What does success look like for the three-phase marketing strategy? - Success is defined by agents continuing to differentiate themselves, gaining more listings, and achieving better terms for sellers [73][74]

Financial Data and Key Metrics Changes - Revenue in Q1 2025 increased by 28.7% year over year, reaching $1.36 billion, while adjusted EBITDA was a record $15.6 million, a significant improvement from a loss of $20.1 million in the previous year [20][25][26] - Total transactions increased by 27.8%, with organic transactions up 7.3%, significantly outperforming the overall market, which saw a decline of 2.1% [4][21] - The company generated $19.5 million in free cash flow, marking a new record for Q1 and an improvement from $5.9 million in Q1 2024 [26] Business Line Data and Key Metrics Changes - The title and escrow business showed strong momentum, with attach rates up 695 basis points year over year [6] - Principal agent retention grew to 96.6%, reflecting the company's ability to retain talent in a competitive market [5] Market Data and Key Metrics Changes - Compass' market share increased to 6%, up 125 basis points year over year, indicating a strong competitive position [21] - Gross transaction value reached $52 billion, a 30.7% increase from the previous year, driven by a combination of increased transactions and a slight rise in average selling price [21] Company Strategy and Development Direction - The company aims to control organic operating expenses at a growth rate of 3% to 4% annually while expanding its market share through organic growth and M&A activities [14][15] - The acquisition of Christie's International Real Estate is expected to enhance the company's market position and provide access to new segments [6][24] - The three-phase marketing strategy is designed to empower agents and provide homeowners with more marketing choices, which is expected to drive future growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outpace the market despite recent volatility due to external factors such as tariff discussions [20][36] - The company anticipates continued growth in transactions and market share, driven by its strong agent recruitment and retention strategies [5][60] Other Important Information - The company ended Q1 with $127 million in cash and cash equivalents, with $50 million drawn on its revolver to fund acquisitions [27] - The guidance for Q2 2025 includes expected revenue in the range of $2 billion to $2.15 billion and adjusted EBITDA between $115 million and $135 million [28] Q&A Session Summary Question: What was revenue growth tracking ahead of the disruption in March? - Management indicated that revenue growth was tracking close to the midpoint of guidance before the March volatility, with April tracking expectations [40][41] Question: What is the latest with NAR's clear cooperation policy? - Management confirmed that the three-phase marketing strategy remains intact under the current rules, emphasizing homeowner choice [48][50] Question: How is the company addressing agent recruitment post-NAR changes? - Management noted that the demand for the three-phase marketing strategy continues to resonate with agents, particularly in the luxury segment [56][60] Question: What are the churn trends in the quarter? - Churn was in line with historical levels, with no significant changes noted, and the company added agents instead of experiencing churn [72][73] Question: How is the private exclusive listings strategy performing? - The majority of transactions that close as private exclusives are co-brokered with agents from other firms, indicating a collaborative approach [77][78] Question: How is the company thinking about market share in the context of M&A? - Management expressed optimism about continued market share gains through both organic growth and acquisitions, with a focus on top-performing agents [91][92]

Angi (ANGI) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Andrew Russakoff - CFOJeff Kip - CEOEric Sheridan - Managing DirectorCory Carpenter - Internet Equity ResearchJustin Patterson - Managing DirectorYgal Arounian - Director - Internet Equity Research Conference Call Participants Stephen Ju - AnalystDaniel Kurnos - Equity Research Analyst Operator Please note this event is being recorded. I would now like to turn the conference over to Andrew Rasukoff, CFO. Please go ahead. Andrew ...