• EBITDA: Decreased from $260 million to $35 million in the prior year.
• Capital Expenditures (CapEx): Reduced from $115 million to about $50 million.
• Cash Flow: Increased by nearly $250 million year-on-year to almost $300 million for IAC's businesses.
• Digital Revenue Growth: Consecutive declines noted, with specific figures not fully provided due to technical difficulties.

• Warning! GuruFocus has detected 5 Warning Signs with ANGI.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Angi Inc (NASDAQ:ANGI) has successfully turned around its business, moving from a crisis to a positive cash flow and profit trajectory.
• The company has significantly reduced its capital expenditures from $115 million to about $50 million, improving financial health.
• Angi Inc (NASDAQ:ANGI) is back on offense, with plans to focus on building and growth in the coming year.
• The company has improved its customer experience, with homeowner Net Promoter Scores (NPS) showing double-digit improvements.
• Angi Inc (NASDAQ:ANGI) is positioned for growth in 2026, with confidence in competitive positioning and customer experience improvements.

Negative Points

• Angi Inc (NASDAQ:ANGI) faced a challenging Q1 outlook, coming in below prior expectations due to regulatory changes and market disruptions.
• The company experienced a significant revenue decline, with Q1 expected to be down in the low 20% year-over-year.
• Angi Inc (NASDAQ:ANGI) is dealing with short-term market disruptions due to regulatory shifts, impacting its first-quarter performance.
• The transition to a single product and platform may involve integration risks and potential short-term disruptions.
• Angi Inc (NASDAQ:ANGI) has faced challenges in proprietary traffic growth, with some channels still down year-over-year.

Q & A Highlights

Q: Joe, could you talk about your motivations for moving to Angi with the spin? And for Jeff, what's giving you confidence in trends improving through the year despite the 1Q guide coming in below your prior expectations? A: Joseph Levin, CEO of IAC, explained that personally, he is optimizing for freedom and professionally, he sees asymmetrical upside in Angi. Jeff Kip, CEO of Angi, expressed confidence in trends improving due to product enhancements and strategic changes, despite short-term disruptions from regulatory changes.

Q: Could you talk about the drivers of Dotdash Meredith's (DDM) 4Q revenue and EBITDA, and the outlook for 1Q '25 and fiscal '25? A: Christopher Halpin, CFO of IAC, highlighted strong performance in performance marketing and licensing, leading to 10% digital revenue growth. For 2025, they expect 10%-plus digital revenue growth, with high single-digit growth in Q1 due to challenging comps and seasonal shifts.

Q: How should we think about capital allocation at IAC, especially with the upcoming Angi spin? A: Barry Diller, Chairman of IAC, stated that the company is now in a position to consider capital allocation strategies, including potential investments in current businesses and seeking new opportunities, while also considering returning capital to shareholders.

Q: What are the key steps to grow traffic more and eliminate the middleman at Dotdash Meredith? A: Christopher Halpin emphasized direct-to-consumer efforts, premium content, and new product rollouts to enhance consumer engagement and loyalty, aiming for 10%-plus digital revenue growth.

Q: How do you see IAC's engagement with MGM post-Angi spin? A: Barry Diller expressed confidence in MGM as a "forever asset," highlighting its strong management and undervaluation. IAC may increase its ownership and sees MGM as a core part of its portfolio.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.