ANGI Homeservices(US:ANGI)2025-08-06 13:30Financial Data and Key Metrics Changes - The company reported its first quarter of proprietary volume growth since 2021, marking a significant milestone [6] - Adjusted EBITDA and free cash flow have improved materially from 2022, with free cash flow previously being negative [9] - The company has shed over $400 billion in revenue, which management argues is beneficial for long-term success by removing lower quality revenue and unprofitable marketing expenses [7][8] Business Line Data and Key Metrics Changes - Proprietary volume growth has been strong, indicating a return to revenue growth that is expected to be profitable [9] - The company has improved customer experience metrics, with homeowner Net Promoter Score increasing by 30 points over the last two years [11] - Win rates on the core pro platform have increased over 20% in June and are tracking to more than 30% year-over-year in July [12] Market Data and Key Metrics Changes - The network channel traffic is expected to stabilize at current levels, with a slight decline anticipated next year [10] - The company has been focusing on improving the quality of its customer experience, which is reflected in better retention rates across all cohorts of pros [11] Company Strategy and Development Direction - The company is transitioning to a single modern international platform to improve operational efficiency and speed to market [13] - Management is optimistic about future growth, emphasizing the importance of improving the match between homeowners and pros [29] - The strategy includes targeting larger pros and optimizing sales efforts to increase revenue per lead and pro capacity [42][45] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious macroeconomic environment but indicated that the business has countercyclical dynamics, benefiting from non-discretionary tasks [110] - There was a significant impact in April on homeowner traffic and wins per pro, but recovery has been observed since June [104][105] - The company expects modest revenue growth in the mid-single digits for 2026, with adjusted EBITDA margins likely to improve [47] Other Important Information - The company has been actively investing in marketing, with a focus on both digital and traditional channels to enhance brand awareness [75][78] - The transition of ad service pros to the new platform is a critical execution story, with successful migrations already completed internationally [58][59] Q&A Session Summary Question: Expectations for proprietary overall network market growth - Management expects service requests and leads to continue growing at a similar rate as in Q2, with improvements in revenue per lead driven by price optimization and platform migration [17][18] Question: Insights on profitable acquisition opportunities and marketing expenses - Consumer marketing expenses have increased as a percentage of revenue, but management expects stability in contribution margins going forward [20][21] Question: Duration of product initiatives and their impact on revenue growth - Management is focused on improving the match between homeowners and pros, with significant initiatives expected to yield results over the next year [30][41] Question: Macro trends and their impact on guidance - Management noted some pressure in consumer traffic but believes execution on paid channels is strong, with a cautious outlook on macroeconomic conditions [102][104] Question: Capital allocation strategy and buybacks - The company has been active in stock buybacks and is focused on maximizing aggregate profit through strategic capital allocation [103]