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 [7][12] - The company reported a 3357% decline in network service requests and leads, primarily due to the requirement for homeowners to choose their pros [14][15] - Proprietary service request declines have decelerated materially, with proprietary lead declines nearly flat for the quarter [16] Business Line Data and Key Metrics Changes - The implementation of Homeowner Choice led to a significant increase in homeowner satisfaction, with the net promoter score improving from negative to positive [9] - The pro win rate increased by 10% after the implementation of Homeowner Choice, indicating better job completion rates [10] Market Data and Key Metrics Changes - The company noted a modest decline in homeowner volume and job size in early April, impacting revenue by 3 to 5 percentage points [27][30] - Approximately two-thirds of the business is non-discretionary, providing a protective buffer against economic downturns [30] Company Strategy and Development Direction - The company is focused on driving jobs done well as a key to long-term value creation for homeowners, shareholders, and the team [11] - The transition to a Single Pro product is expected to enhance customer experience and drive revenue growth in 2026 [16][53] - The company plans to stabilize its sales headcount and roll out online pro acquisition in the second half of the year, anticipating growth in the number of pros by 2027 [19][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of macroeconomic conditions on consumer spending, particularly in home services, but noted countercyclical dynamics that could benefit the company [27][28] - The company expects to return to revenue growth in 2026, driven by improvements in proprietary channels and revenue per lead [36][42] Other Important Information - The company has reduced fixed expenses and capital expenditures by $100 million compared to 2022, while maintaining staffing levels to support growth [33] - The transition to active pro cohorts allows for better visibility into retention and activation dynamics within the network [22] Q&A Session Summary Question: Can you contrast elements of consumer wallet spend against the services landscape? - Management noted that consumers tend to pull back on large discretionary purchases during recessionary environments, focusing instead on necessary maintenance [27][28] Question: How should investors think about the investments being made in product and platform? - Management highlighted that significant investments have been made in customer experience, leading to improved metrics and operating efficiency despite lower revenue [32][34] Question: What gives confidence in revenue trends continuing to improve? - Management pointed to significant improvements in proprietary service requests and leads, along with anticipated growth in revenue per lead [42] Question: How does the strategy change now that the company is independent? - Management stated that the strategy remains unchanged, focusing on improving the homeowner experience and achieving positive unit economics [84] Question: What are the expectations for the self-serve platform for sales? - Management indicated that the self-serve platform could increase pro count and efficiency, leveraging successful models from Europe [88]

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]

Changes to Key Metrics Q1 2025 Primer 1 Change of Metric from Transacting Professionals to Active Pros A key sign of Pro engagement on our platform is Pros making themselves available to be presented to homeowners for particular Service Requests and paying for the corresponding Leads if selected by the homeowner. We've redesigned the metric - Average Monthly Active Pros - to best capture that activity. The current Transacting Professional metric is focused on whether a Pro has generated revenue during the q ...

Core Insights - Angi Inc. reported its first quarter financial results and a letter to shareholders from CEO Jeffrey Kip, which is available on the investor relations section of its website [1] - A conference call to discuss the first quarter results will take place on May 7, 2025, at 8:30 a.m. ET, featuring CEO Jeffrey Kip and CFO Andrew Russakoff [1] Company Overview - Angi Inc. (NASDAQ: ANGI) assists homeowners in completing home projects and supports home service professionals in growing their businesses [3] - Established in 1995, Angi has evolved to provide services that include finding, booking, and hiring skilled professionals, as well as researching costs and discovering project possibilities [3] - The company has helped over 150 million people with home maintenance, repair, renovation, and improvement, while also aiding hundreds of thousands of small local businesses [3]

Financial Data and Key Metrics Changes - Q1 2025 was described as a solid start to the year with reaffirmed full-year 2025 adjusted EBITDA guidance across all of IAC [6][18] - The company repurchased 4,500,000 shares and increased share repurchase authorization by 10,000,000 shares [6][12] - DDM (Dotdash Meredith) grew digital revenues by 7% in Q1 and increased EBITDA by 46%, excluding a one-time lease gain [8][10] Business Line Data and Key Metrics Changes - DDM's digital advertising revenue was up 1% in Q1, with premium demand remaining stable despite a decline in core traffic [35][40] - Licensing revenue led growth with a 30% increase, aided by the OpenAI license and strong performance at Apple News [36] - Performance marketing also showed strong growth at 11% [36] Market Data and Key Metrics Changes - The macroeconomic outlook remains uncertain, with consumer spending through DDM's performance marketing being solid despite weak consumer confidence [15][18] - Programmatic pricing has softened, running flat year over year after previously increasing [17][18] - The advertising base showed strength in pharma, tech, and beauty, offsetting weaknesses in food and beverage [17] Company Strategy and Development Direction - The company is focused on executing growth across its businesses and capital allocation, including share buybacks and M&A opportunities [11][12] - The strategy includes pursuing strategic divestitures of smaller holdings to free up capital [13] - The company aims to create equity value and reduce the discount between share price and intrinsic value [10][12] Management's Comments on Operating Environment and Future Outlook - Management is carefully monitoring the macroeconomic environment for signs of stability or weakness among consumers and brands [18] - The company is optimistic about future growth, particularly in 2026, with several key projects underway [22][26] - Management acknowledged the challenges in the advertising market but emphasized the strength of their brands and execution capabilities [40][41] Other Important Information - The company reached an agreement to settle litigation related to the match separation with minimal additional costs [10] - The appointment of Jim Lawson as President of Decipher was highlighted as a strategic move to enhance the product's market presence [48][50] Q&A Session Summary Question: Key priorities for 2026 TDM revenue growth and capital allocation - Management discussed ongoing projects like the People app and MyRecipes, emphasizing their focus on meeting younger audiences [22][24] - Capital allocation will balance between share repurchases and M&A opportunities, with a cautious optimism for new investments [27][28] Question: Q1 trends in DDM Digital revenue - Management noted that Q1 faced tough comparisons and a decline in core traffic, but licensing and performance marketing showed strong growth [34][36] Question: Impact of Google’s AI transition and programmatic softness - Management indicated that the impact of Google's AI changes is not significant yet, and programmatic pricing has stabilized after a period of growth [114][116] Question: Appointment of Jim Lawson and Decipher's strategy - The appointment was seen as a strategic advantage to enhance Decipher's market presence and execution capabilities [48][50] Question: AI opportunities across the IAC portfolio - Management highlighted ongoing AI applications in various segments, particularly in improving customer service and marketing efficiency [83][85]

Financial Data and Key Metrics Changes - Q1 2025 was described as a solid start to the year, with IAC reaffirming full year 2025 adjusted EBITDA guidance across all businesses [5][16] - DDM grew digital revenues by 7% in Q1 and increased EBITDA by 46%, excluding a one-time lease gain [7][16] - The company repurchased 4,500,000 shares and increased share repurchase authorization by 10,000,000 shares [5][11] Business Line Data and Key Metrics Changes - DDM's licensing revenue grew by 30%, driven by the OpenAI license and strong performance at Apple News [34] - Performance marketing also showed strong growth at 11% [34] - The Daily Beast achieved a revenue growth of 72% while reaching profitability [8] Market Data and Key Metrics Changes - Core traffic for DDM declined by 3% in Q1, with digital advertising only up by 1% due to fewer impressions available for programmatic sales [33] - Premium demand in advertising remained stable, with strength in pharma, tech, and beauty offsetting weaknesses in food and beverage [15][33] - Programmatic pricing softened, running flat year over year after previously increasing [15] Company Strategy and Development Direction - The company is focused on executing growth across its businesses and capital allocation, including share buybacks and M&A opportunities [10][11] - IAC is pursuing strategic divestitures of smaller holdings to free up capital and simplify operations [12] - The company aims to create equity value and reduce the discount at which its shares are trading [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting solid performance in DDM despite weak consumer confidence [14][16] - The macroeconomic outlook remains uncertain, but the company is monitoring trends closely and reaffirming guidance based on current business performance [16] - Management highlighted the importance of focusing on execution and controlling what can be controlled in an unpredictable environment [16] Other Important Information - The company reached an agreement to settle litigation related to the match separation, requiring only a $200,000 contribution beyond insurance coverage [8] - IAC has $800 million in net operating losses (NOLs) that could offset taxable gains on its MGM stake [9] Q&A Session Summary Question: Key priorities for 2026 TDM revenue growth and capital allocation - Management discussed excitement about 2026, highlighting projects like the People app and MyRecipes, and emphasized the importance of capital allocation between share repurchases and M&A [18][20][25] Question: Q1 trends in DDM Digital revenue - Management noted that Q1 faced tough comparisons and a decline in core traffic, but March showed solid growth in digital advertising [30][32] Question: DDM cash flow dynamics - Management explained that DDM can dividend cash to IAC if leverage ratios are below four times total debt to EBITDA, enhancing financial flexibility [43] Question: Appointment of Jim Lawson as President of Decipher - Management expressed excitement about Jim Lawson's appointment, emphasizing his experience and the potential for Decipher Plus to drive growth [46][48] Question: Impact of Google phasing out cookies - Management indicated that the cookie phase-out is not a significant concern, as their contextual targeting capabilities remain strong [58][60] Question: Strategic priorities for Care.com - Management outlined three core priorities for Care: improving product matching, optimizing pricing and packaging, and enhancing marketing efforts [100][104]