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Angi Inc. (ANGI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue declined 11% year over year to $267.9M; operating income was $2.2M and Adjusted EBITDA was $31.8M, with diluted EPS at $(0.00) as non-GAAP profitability compressed due to prior-year legal fee recoveries benefitting Q4 2023 .
  • Segment mix: Ads & Leads OI rose 21% to $28.7M despite 13% lower revenue; Services swung to a larger OI loss of $(7.1)M; International revenue grew 5% but posted a $(0.6)M OI loss on higher credit losses and restructuring costs .
  • Management guided to Q1 2025 breakeven operating income and “over $20M” of Adjusted EBITDA; FY 2025 guidance is operating income $25–$60M and Adjusted EBITDA $135–$150M, with a Q1 SBC reversal (~$10M) tied to leadership transition .
  • Spin-off catalyst: IAC’s Board approved a plan to spin off Angi; IAC targets March 31 close, spinning Angi with ~$416M cash and $500M of 3.875% notes, with no dividend planned at spin; management emphasized being “back on offense” as ANGI transitions to independence .
  • Near-term headwind: Angi fully implemented Consumer Choice on Jan 13; after a court vacated the FCC rule change (Jan 24), competitors reverted while Angi stayed the course, creating short-term disruption and a Q1 revenue outlook “down in the low 20%” YoY, but reinforcing long-term experience/retention advantages .

What Went Well and What Went Wrong

What Went Well

  • Ads & Leads profitability improved: segment operating income +21% to $28.7M and Adjusted EBITDA +2% to $47.9M, driven by lower consumer marketing and sales costs, and efficiency gains .
  • International revenue +5% YoY and overall monetization improved: Monetized Transactions per Service Request rose to 1.45 (+14% YoY), signaling better matching/engagement despite lower demand volume .
  • Strong cash generation: FY 2024 operating cash flow $155.9M (+$61.8M YoY) and Free Cash Flow $105.4M (+$59.0M YoY), providing balance sheet flexibility into the spin .
  • Management tone pivoted to offense: “We can start building again… we’re back on offense” (Joey Levin), highlighting confidence in product improvements and unit economics .

What Went Wrong

  • Top-line contraction persisted: Q4 revenue fell 11% YoY, with Ads & Leads –13% on UX changes and reduced marketing/pro acquisition, and Services –5% amid margin optimization and lower request volume .
  • Services margin pressure: the segment posted $(7.1)M operating loss vs $(1.9)M in Q4 2023, including ~$3.0M legal settlement and higher intangible amortization; Adjusted EBITDA swung from +$5.1M to $(1.4)M .
  • Network and demand softness: Transacting Professionals fell 14% to 168k and Service Requests fell 16% YoY; management also flagged Q1 2025 revenue “down in the low 20%” YoY on Consumer Choice transition vs competitors’ reversion post-FCC vacatur .
  • Tax rate volatility: Q4 effective tax rate spiked to 387% due to unbenefited losses and stock-based awards, complicating GAAP comparisons versus the prior year .

Financial Results

Consolidated P&L and Profitability

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($M)$300.4 $315.1 $296.7 $267.9
Operating Income ($M)$7.6 $9.2 $7.8 $2.2
Net Income (Loss) ($M)$(5.6) $3.8 $35.2 $(1.3)
Diluted EPS ($)$(0.01) $0.01 $0.07 $(0.00)
Adjusted EBITDA ($M)$41.4 $42.2 $35.4 $31.8

Margins

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Adjusted EBITDA Margin %13.8% 13.4% 11.9% 11.9%

Segment Revenue (Q4 comparison)

Segment Revenue ($M)Q4 2023Q4 2024YoY
Ads & Leads$246.9 $214.5 −13%
Services$26.1 $24.8 −5%
Total Domestic$273.1 $239.2 −12%
International$27.4 $28.6 +5%
Total$300.4 $267.9 −11%

Segment Profitability (Q4 comparison)

SegmentOperating Income ($M) Q4 2023Operating Income ($M) Q4 2024Adjusted EBITDA ($M) Q4 2023Adjusted EBITDA ($M) Q4 2024
Ads & Leads$23.7 $28.7 $47.2 $47.9
Services$(1.9) $(7.1) $5.1 $(1.4)
Other/Corporate (Domestic)$(15.0) $(18.8) $(12.7) $(15.2)
International$0.9 $(0.6) $1.8 $0.5
Total$7.6 $2.2 $41.4 $31.8

KPIs

KPIQ4 2023Q2 2024Q3 2024Q4 2024
Service Requests (000s)4,324 4,939 4,490 3,629
Monetized Transactions (000s)5,500 6,749 6,867 5,255
Monetized Transactions per Service Request1.27 1.37 1.53 1.45
Transacting Professionals (000s)196 187 178 168

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating Income ($M)Q1 2025N/A~$0 (breakeven) New
Adjusted EBITDA ($M)Q1 2025N/AOver $20 New
Operating Income ($M)FY 2025N/A$25–$60 New
Adjusted EBITDA ($M)FY 2025N/A$135–$150 New
Depreciation ($M)Q1 2025N/A$20–$25 (outlook) New
Stock-based Compensation ($M)Q1 2025N/A(5)–0 (reflects ~$10M reversal) New
DividendsSpin contextN/ACurrent plan is not to make dividends at spin Maintained (none)

Note: On Jan 13 Angi implemented Consumer Choice ahead of FCC effective date; the court vacated the rule Jan 24. Angi is maintaining Consumer Choice, expecting near-term disruption but long-term benefit .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Consumer Choice & MatchingFocus on improving matching, conditional Q&A, SEO rebuild; SEM contribution rising; repeat improving Full Consumer Choice implemented Jan 13; competitors reverted after FCC vacatur; Angi stayed the course, near-term headwind but superior experience: higher NPS and 60% higher pro win rates when chosen Execution stepped up; short-term disruption, longer-term positive
Single Pro Product & PricingOngoing efficiency work; unit economics improving Migration to single platform/pricing to simplify ops and lift revenue per monetized transaction in 2H25 Integration progressing; expected monetization lift in 2H25
Pro Retention & NetworkRetention improving; acquisition down; net network growth pending Retention improved ~700 bps YoY into 2024; acquisition lower; network growth expected to inflect on better CX Retention rising; network growth targeted
Proprietary Channels (SEM/SEO)SEM returned to growth; SEO stabilization targeted SEM unbranded SRs growing; Angi.com SEO down single digits and ~90% of unbranded organic traffic SEM/SEO stabilizing to improving
International+14% revenue Q2; +9% Q3 +5% revenue Q4; profitability hit by credit losses and Homestars restructuring Revenue steady; margin headwinds
Regulatory/LegalNo FCC topic yetFCC robocall rule vacatur impact; $3.0M legal settlement in Services Near-term friction; legal costs elevated
AI/TechnologyPersonalization/monetization at DDM; matching improvements at Angi Conversational UI and agentic AI seen as positive for intake/matching; intent-led improvements Growing application to CX and matching
Macro/HousingRate cuts could aid demand; fewer home turnovers reduce spend; 60% nondiscretionary category 2024 State of Home Spending: 93% plan projects in 2025; renovate-over-relocate trend persists Resilient homeowner intent; budget stress

Management Commentary

  • “We finished the year 2024 very strong… and… we are really able to rip off… that last Band Aid and get the product experience fully to where we want it to be… we’re back on offense.” – Joey Levin .
  • “We fully implemented Consumer Choice… on January 13… we’re sticking with the change we’re making. Our competition is not… creating some short term disruption… [Q1] down in the low 20% year over year… [but] growth in 2026.” – Jeffrey W. Kip .
  • “We filed the registration statement… We are very focused on closing… March 31… spin ANGI with its current cash balance of $416M and $500M… [no dividends].” – Christopher Halpin .

Q&A Highlights

  • Spin process and capital structure: IAC targeting March 31 spin; ANGI to be standalone with ~$416M cash and $500M notes; no dividend planned .
  • Q1 2025 and full-year trajectory: Q1 guide below prior expectations due to Consumer Choice vs competitor reversion post-FCC vacatur; management expects revenue improvement through 2025 and return to growth in 2026 .
  • Product strategy: Single pro product migration to unify pricing/platform, improve efficiency, and lift revenue per monetized transaction in 2H25; multiple successful migrations in Europe reduce execution risk .
  • AI/matching: Conversational UI and agentic AI seen as ideal for better intake and matching, enhancing pro and homeowner experience .
  • Tone: Leadership emphasized “back on offense,” positioning post clean-up and spin for renewed growth .

Estimates Context

  • Wall Street consensus (S&P Global) for EPS, revenue, and EBITDA was unavailable at time of request due to SPGI daily limit constraints; therefore, we cannot quantify beats/misses versus consensus for Q4 2024 or near-term forward quarters. Values would be retrieved from S&P Global if accessible.

Key Takeaways for Investors

  • Angi delivered Q4 2024 Adjusted EBITDA of $31.8M on $267.9M revenue (−11% YoY), with Ads & Leads profitability resilient despite deliberate demand/marketing reductions; Services remains the margin drag .
  • KPI mix shows improving monetization efficiency (Monetized Transactions per SR to 1.45) even as Service Requests and Transacting Professionals decline; watch for network stabilization before growth .
  • Near-term revenue risk into Q1 2025 as Angi sustains Consumer Choice while competitors revert post-FCC vacatur; management expects sequential improvement through 2025 and growth in 2026 on product and pricing changes .
  • FY 2025 guidance ($25–$60M OI; $135–$150M Adj EBITDA) underscores disciplined cost control and monetization projects; note Q1 SBC reversal (~$10M) impacts quarterly optics .
  • Spin-off to a cleaner standalone equity with ~$416M cash and $500M notes could re-rate the share; capital allocation flexibility increases, and there is no dividend planned at separation .
  • International revenue growth persisted (+5% YoY) though profitability is pressured by credit losses and restructuring; monitor progress on Homestars and collections .
  • The narrative to move the stock near term is the spin timeline, clarity on Consumer Choice competitive dynamics, and evidence of SEM/SEO-driven proprietary demand rebuilding; medium term, single product/pricing standardization and pro retention should drive monetization per transaction higher .