Angi (ANGI) Q3 2024 earnings summary

Executive summary

• IAC is considering a spin-off of Angi, aiming to create two focused companies and allow Angi to pursue its own strategy and liquidity benefits.

• Angi's improved profitability, cash flow, and customer experience underpin confidence in its standalone prospects and future revenue growth.

• Q3 2024 revenue was $296.7M, down 16% year-over-year, but net earnings turned positive at $35.2M and operating income improved by $16M to $7.8M.

• Adjusted EBITDA for Q3 2024 was $35.4M, up 27% year-over-year, with nine-month Adjusted EBITDA at $113.6M, up 47%.

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

Financial highlights

• Digital advertising revenues grew 26% in Q3, with core sessions up 14% and overall digital revenue up 16%, the best quarter since the Meredith acquisition.

• Licensing revenue, driven by the OpenAI deal, was up $4.1M year-over-year in Q3.

• Gross profit for Q3 2024 was $282.0M, down 16% year-over-year; gross margin remained high at 95%.

• Q3 2024 EPS was $0.07 (basic and diluted), up from $(0.01) in Q3 2023.

• Net cash from operating activities for the nine months ended September 30, 2024 was $115.9M, up from $85.2M in 2023.

Outlook and guidance

• Expecting mid to high single-digit digital revenue growth in Q4 due to softer October and election-related headwinds.

• Confident in 10% digital revenue growth as a baseline for DDM in 2025, driven by traffic and monetization improvements.

• Angi expects revenue to decline in Q1 2025, similar to Q4 2024, but anticipates sequential improvement and growth in 2026.

• Profitability for Angi is expected to remain stable in 2025 despite revenue volatility from regulatory changes.

• Full-year 2024 guidance: operating income of $10–$35M and Adjusted EBITDA of $140–$145M.