IAC(US:IAC)2021-08-05 20:36Financial Data and Key Metrics Changes - The company reported a significant growth in Angi Services, with a 127% increase in revenue to $73 million for Q2 [53] - The overall revenue growth for Angi was expected to be around 7% to 10% in the foreseeable future, influenced by the brand transition and macroeconomic conditions [81][82] Business Line Data and Key Metrics Changes - The Angi Services segment experienced a growth rate of 120% year-over-year in Q2, with July showing an even higher growth rate of 160% [25] - The Total Home Roofing acquisition contributed positively to Angi Services growth, indicating a strategic focus on expanding service offerings in the roofing category [25][26] Market Data and Key Metrics Changes - The company noted a significant contraction in pro supply due to COVID-19, which affected the business model where professionals pay to access customers [22] - The macro environment remains volatile, impacting both the lead generation and service segments of the business [85] Company Strategy and Development Direction - The company is focused on brand consolidation, transitioning from HomeAdvisor to Angi to create a more sticky and recognizable brand [12][14] - There is a strong emphasis on verticalization within Angi Services, aiming to deepen engagement in specific categories like roofing and fencing [57][60] - The long-term vision includes creating a seamless customer experience through integrated services and payment solutions [66][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of Angi Services despite current challenges, emphasizing the importance of building the right products for both homeowners and professionals [86][92] - The company is committed to investing in content and technology to enhance its competitive advantage in the publishing segment, particularly Dotdash [43][48] Other Important Information - The CFO search is ongoing, with a strong pipeline of candidates, and the company is focused on finding the right fit to add value to the executive team [34] - Care.com is performing well, particularly in the Enterprise segment, which is benefiting from increased employer responsibility for childcare [36][37] Q&A Session Summary Question: Impact of brand transition on Angi and HomeAdvisor - Management acknowledged that the brand transition has led to a temporary decline in audience and EBITDA, but they believe the long-term benefits will outweigh the short-term challenges [12][21] Question: Sustainability of recent growth in Angi Services - Management indicated that the growth in Angi Services is driven by strong product market fit and ongoing investments in customer experience and engagement [53][56] Question: Updates on Care.com and its long-term potential - Management highlighted that Care.com is growing rapidly, particularly in the Enterprise segment, and they see potential for further development and eventual separation as a standalone business [36][41] Question: Long-term growth expectations for Dotdash - Management expects Dotdash to maintain a growth rate of over 20% in the long term, driven by content investment and improved advertising performance [48][49] Question: Capital allocation priorities - The company will prioritize existing businesses for M&A opportunities and consider share repurchases if it makes sense, focusing on scalable and cash-generating acquisitions [73][75]