ANGI Homeservices(US:ANGI)2025-05-07 13:32Financial 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]