Angi (ANGI) Q2 2024 earnings summary

Executive summary

• DDM (Dotdash Meredith) achieved strong traffic and monetization growth, with programmatic ad rates up 36% year-over-year and digital revenue expected to grow 15% or more in Q3.

• Angi improved profitability and operational efficiency, with Q2 2024 net income of $3.8 million and operating income of $9.2 million, reversing prior losses despite a 10% revenue decline.

• Adjusted EBITDA for Q2 2024 was $42.2 million, up 115% year-over-year, and the company is actively pursuing M&A and capital allocation strategies, including share repurchases.

• Sale of Total Home Roofing, LLC completed in November 2023, with results reflected as discontinued operations.

• CEO transition: Jeffrey W. Kip appointed CEO in April 2024, succeeding Joseph Levin.

Financial highlights

• DDM digital licensing revenue grew 19% year-over-year in Q2, with about half attributed to the OpenAI licensing deal.

• Angi's Q2 2024 revenue was $315.1 million, down 10% year-over-year, but Adjusted EBITDA more than doubled to $42.2 million and gross margin remained above 95%.

• Selling and marketing expense decreased 24% to $158.3 million, and general and administrative expense fell 9% to $84.4 million in Q2 2024.

• Cash and cash equivalents at June 30, 2024 were $384.9 million; long-term debt stood at $496.4 million.

• Net cash from operating activities was $85.0 million for the first half of 2024, up from $77.0 million in 2023.

Outlook and guidance

• DDM is guiding to 15%+ digital revenue growth and 25%+ EBITDA growth in Q3, with momentum expected to continue in the second half of the year.

• Angi expects Q3 revenue declines of about 15% year-over-year, but guides to over $30 million in Adjusted EBITDA, and full-year 2024 guidance projects operating (loss) income between $(10) million and $40 million and Adjusted EBITDA of $130–$150 million.

• Capital expenditures for 2024 are expected to be 10–25% higher than 2023, driven by increased software development.

• Management expects existing cash and positive cash flow to fund operations and commitments for the next twelve months.