Nick Jones

Represented by Luke, Nick Jones asked for the high-level strategic priorities at Care.com aimed at accelerating growth.

Answer

Christopher Halpin, an IAC executive, reiterated the strategic priorities for Care.com. On the consumer side, the focus is on improving the product, optimizing pricing and packaging, and then ramping up marketing. For the enterprise business, priorities are driving utilization of the benefit among employees, enhancing the product, and acquiring new corporate clients. He noted the business benefits from strong secular demand for care services.

Nick Jones asked about the role of AI, particularly agent-like AI, in improving the questioning and matching processes at both Angi and Care.com going forward.

Answer

Joseph Levin, CEO of IAC, responded that a conversational UI powered by AI would be ideal for Angi to gather better job information and improve matching. An executive added that AI will enhance matching across marketplaces like Angi and Care.com where they have proprietary data, and will also improve functions like customer onboarding and service requests across the portfolio.

Asked about the extent of further potential cost-cutting and whether market supply growth is fundamentally worsening churn by depressing owner revenue.

Answer

The company will not provide a guide but reiterated that they will prioritize adjusted EBITDA profitability. Regarding churn, they redirected the cause back to their own execution, stating they are focused on improving owner communication and experience, which they believe is the key driver, despite not yet seeing it impact the overall churn number.

The analyst inquired about the future of the property portfolio size, the pace of live unit growth, and the health of the balance sheet.

Answer

Executives stated the focus is on achieving cash flow positivity by converting the existing contracted pipeline, which represents nearly 50% embedded growth, rather than signing many new properties. They are happy with the current 31% YoY live unit growth. Regarding the balance sheet, they feel comfortable with their healthy cash cushion and the strong positive trajectory for free cash flow.