Angi Inc
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
ANGI$6.92-5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001705110-24-000078
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsPrinciples of Financial ReportingCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001705110-24-000114
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsPrinciples of Financial ReportingThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 134 current paragraphs.
57 unchanged; 56 reworded; 20 added; 17 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
International revenue increased $11.9 million, or 13%, due primarily to the factors described above in the three-month discussion.
Current report
International cost of revenue increased $0.3 million or 36%, and stayed consistent as a percentage of revenue, due primarily to a $0.2 million increase in credit card processing fees attributable to higher revenue.
Current report
Ads and Leads cost of revenue increased $3.9 million, or 16%, and increased as a percentage of revenue, due primarily to higher hosting fees of $4.2 million and higher non-income taxes of $2.3 million, partially offset by lower credit card processing fees of $2.4 million attributable to lower revenue.
Current report
International cost of revenue increased $0.4 million, or 18%, and stayed consistent as a percentage of revenue, due primarily to a $0.5 million increase in credit card processing fees attributable to higher revenue.
Current report
Ads and Leads selling and marketing expense decreased $46.4 million, or 25%, driven by decreases in advertising expense of $40.1 million and compensation expense of $6.9 million. The decrease in advertising expense was due primarily to improved marketing efficiencies, including optimizations to matching and online bidding that resulted in increased Monetized Transactions per Service Request, as well as a decrease in offline media spend. The decrease in compensation expense was due primarily to a reduction in headcount.
Current report
International selling and marketing expense increased $1.7 million, or 19%, driven by an increase in compensation expense of $1.5 million primarily due to an increase in commissions as a result of certain commissions no longer qualifying for capitalization.
Current report
International selling and marketing expense increased $3.7 million, or 13%, driven by an increase of $3.3 million in advertising expense primarily due to an increase in online advertising to increase brand awareness.
Current report
Ads and Leads general and administrative expense decreased $15.6 million, or 25%, due primarily to decreases of $4.9 million in software license and maintenance costs, $4.8 million in the provision for credit losses, $4.8 million in legal-related expenses, and $1.8 million in third-party wages. The decrease in software license and maintenance costs and third-party wages are due primarily to reduced costs related to customer support services. The decrease in the provision for credit losses is primarily due to lower revenue and improved collection rates. The decrease in legal-related expenses is due, in part, to a benefit of $3.2 million related to insurance coverage for previously incurred legal fees.
Current report
Product development expense increased $2.8 million, or 13%. This contrasts with a $1.7 million, or 12%, decrease in capital expenditures, which is primarily comprised of internally developed software. The increase in product development expense was primarily driven by a decrease in the percentage of internally developed software that was subject to capitalization and a corresponding increase in software license and maintenance costs.
Current report
Product development expense was relatively flat compared to the nine months ended September 30, 2023.
Current report
Depreciation decreased $3.9 million, or 6%, due primarily to the factors described above in the three-month discussion.
Current report
For the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
Current report
Corporate Adjusted EBITDA loss increased $2.5 million, or 21%, to $14.4 million, driven by an increase in compensation expense.
Current report
For the nine months ended September 30, 2024 and 2023
Current report
Other income, net for the nine months ended September 30, 2024 includes interest income of $14.9 million.
Current report
Income tax benefit
Current report
In 2024, the Company recorded a benefit, despite pre-tax income, due primarily to the valuation allowance release for foreign net operating losses and research credits, partially offset by tax shortfalls generated by the vesting of stock-based awards. Following the purchase of the remaining noncontrolling interests of a foreign subsidiary, we reorganized related business operations, which resulted in the release of a valuation allowance for foreign net operating losses in the amount of $31.1 million as a discrete item in the third quarter because we are now forecasting the utilization of these net operating losses within the foreseeable future.
Current report
In 2023, the Company recorded a benefit due primarily to benefits related to a change in the annual expected effective income tax rate, and a reconciliation of income tax provision accruals to tax returns and research credits, partially offset by tax shortfalls generated by the vesting of stock-based awards.
Current report
In 2024, the Company recorded a benefit, despite a pre-tax income due primarily to the valuation allowance release described in the three-month discussion and research credits, partially offset by tax shortfalls generated by the vesting of stock-based awards.
Current report
$16.0 million for the purchase of the remaining noncontrolling interests of a foreign subsidiary, and $5.7 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.
Removed paragraphs (17)
Previous report
International revenue increased $9.4 million, or 16%, due primarily to the factors described above in the three-month discussion.
Previous report
Ads and Leads cost of revenue increased $0.7 million, or 8%, and is not materially different from the second quarter of 2023.
Previous report
Ads and Leads selling and marketing expense decreased $48.4 million, or 26%, driven by decreases in advertising expense of $41.8 million due to improved efficiency and compensation expense of $3.5 million primarily due to a reduction in headcount.
Previous report
International selling and marketing expense increased $1.9 million, or 10%, driven by an increase of $3.0 million in advertising expense, partially offset by a decrease in compensation expense of $1.2 million. The increase in advertising expense is primarily due to an increase in online advertising. The decrease in compensation expense is primarily driven by a reduction in headcount.
Previous report
International general and administrative expense increased $1.0 million, or 11%, due primarily to higher professional fees of $1.7 million and higher taxes of $1.1 million, partially offset by a lower provision for credit losses of $1.2 million and lower compensation expense of $0.4 million. The increase in professional fees is primarily due to an increase in consultancy fees. The decrease in the provision for credit losses is primarily due to improved collection rates, and the decrease in compensation expense is primarily driven by lower headcount.
Previous report
Services general and administrative expense decreased $6.2 million, or 27%, due primarily to decreases of $4.7 million in compensation expense, $0.9 million in professional fees, and $0.8 million in software license and maintenance expense. The decrease in compensation expense is primarily due to a reduction in headcount. The decrease in professional fees is primarily due to a decrease in legal fees. The decrease in software license and maintenance expense is due primarily to reduced costs related to customer support services.
Previous report
International general and administrative expense increased $1.0 million, or 5%, due primarily to higher professional fees of $2.0 million and higher taxes of $1.1 million, partially offset by a lower provision for credit losses of $1.1 million and lower compensation expense of $0.4 million. The increase in professional fees, the decrease in the provision for credit losses, and the decrease in compensation expense are due primarily to the factors described above in the three-month discussion.
Previous report
For the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023
Previous report
Product development expense decreased by $0.8 million, or 3%, and $2.3 million, or 5%, for the three and six months ended June 30, 2024, respectively, and is not materially different from the three and six months ended June 30, 2023.
Previous report
Depreciation increased $2.3 million, or 11%, due primarily to impairment charges of $2.5 million related to certain leasehold improvements and furniture and fixtures, recognized in connection with the Company reducing its real estate footprint.
Previous report
For the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023
Previous report
International Adjusted EBITDA increased $4.6 million, or 64%, to $11.8 million, driven by the factors described above in the three-month discussion.
Previous report
For the six months ended June 30, 2024 and 2023
Previous report
Other income, net for the six months ended June 30, 2024 includes interest income of $9.8 million.
Previous report
Income tax provision
Previous report
In 2023, the Company recorded an income tax provision, despite a pre-tax loss, due primarily to nondeductible stock-based compensation expense and foreign income taxed at different rates, partially offset by research credits.
Previous report
In 2023, the Company recorded an income tax provision, despite a pre-tax loss, due primarily to nondeductible stock-based compensation expense and foreign income taxed at different rates, partially offset by research credits.
Reworded paragraphs (56)
Previous wording
Angi Inc. (“Angi,” the “Company,” “we,” “our,” or “us”) connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. Approximately 187,000 transacting service professionals actively sought consumer matches, completed jobs, or advertised work through Angi Inc. platforms during the three months ended June 30, 2024. Additionally, consumers turned to at least one of our businesses to find a service professional for approximately 19 million projects during the twelve months ended June 30, 2024.
Current wording
Angi Inc. (“Angi,” the “Company,” “we,” “our,” or “us”) connects quality home professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. There were approximately 178,000 Transacting Professionals (as defined below) during the three months ended September 30, 2024. Additionally, consumers turned to at least one of our businesses to find a professional for approximately 18 million projects during the twelve months ended September 30, 2024.
Previous wording
Ads and Leads provides service professionals the capability to engage with potential customers, including quoting and invoicing services, and provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals nationwide for home repair, maintenance and improvement projects. Services consumers can request household services directly through the Angi platform and Angi fulfills the request through the use of independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. The matching, pre-priced booking services, and related tools and directories are provided to consumers free of charge.
Current wording
Ads and Leads provides professionals the capability to engage with potential customers, including quoting and invoicing services, and provides consumers with tools and resources to help them find local, pre-screened and customer-rated professionals nationwide for home repair, maintenance and improvement projects. Services consumers can request household services directly through the Angi platform, and such requests are fulfilled by independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. Matching service, the booking of pre-priced services, and related tools and directories are provided to consumers free of charge upon registration.
Previous wording
For a more detailed description of the Company’s operating businesses, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
For a more detailed description of the Company’s operating businesses, see “Description of Our Businesses” included in “Item 1—Business” to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Previous wording
On November 1, 2023, Angi Inc. completed the sale of 100% of its wholly-owned subsidiary, Total Home Roofing, LLC (“THR,” which comprised its Roofing segment), and has reflected it as a discontinued operation in its financial statements. The financial information for prior periods has been recast to conform to this presentation. For additional details, see “Note 11—Discontinued Operations” to the consolidated financial statements included in “Item 1. Consolidated Financial Statements.”
Current wording
On November 1, 2023, Angi completed the sale of 100% of its wholly-owned subsidiary, Total Home Roofing, LLC (“THR,” which comprised its Roofing segment), which is reflected as a discontinued operation in its financial statements. Prior period financial information has been recast to conform to this presentation. For additional details, see “Note 11—Discontinued Operations” to the consolidated financial statements included in “Item 1—Consolidated Financial Statements.”
Previous wording
Unless otherwise indicated or as the context otherwise requires, certain terms, which include the principal operating metrics we use in managing our business, are defined below:
Current wording
Unless otherwise indicated or as the context otherwise requires, certain terms used in this quarterly report, which include the principal operating metrics we use in managing our business, are defined below:
Previous wording
•Ads and Leads Revenue primarily comprises domestic revenue from consumer connection revenue for consumer matches, revenue from service professionals under contract for advertising and membership subscription revenue from service professionals and consumers.
Current wording
•Ads and Leads Revenue primarily comprises domestic revenue from consumer connection revenue for consumer matches, revenue from professionals under contract for advertising and membership subscription revenue from professionals and consumers.
Previous wording
•Services Revenue primarily comprises domestic revenue from pre-priced offerings by which the consumer requests services through a Company platform and the Company connects them with a service professional to perform the service.
Current wording
•Services Revenue primarily comprises domestic revenue from pre-priced offerings by which the consumer requests services through a Company platform and the Company connects them with a professional to perform the service.
Previous wording
•International Revenue primarily comprises revenue generated within the International segment (consisting of businesses in Europe and Canada), including consumer connection revenue for consumer matches and membership subscription revenue from service professionals and consumers.
Current wording
•International Revenue primarily comprises revenue generated within the International segment (consisting of businesses in Europe and Canada), including consumer connection revenue for consumer matches and membership subscription revenue from professionals and consumers.
Previous wording
•Service Requestsare (i) fully completed and submitted domestic service requests for connections with Ads and Leads service professionals, (ii) contacts to Ads and Leads service professionals generated via the service professional directory from unique users in unique categories (such that multiple contacts from the same user in the same category in the same day are counted as one Service Request) and (iii) requests to book Services jobs in the period.
Current wording
•Service Requestsare (i) fully completed and submitted domestic service requests for connections with Ads and Leads professionals, (ii) contacts to Ads and Leads professionals generated via the professional directory from unique users in unique categories (such that multiple contacts from the same user in the same category in the same day are counted as one Service Request) and (iii) requests to book Services jobs in the period.
Previous wording
•Monetized Transactions are (i) Service Requests that are matched to a paying Ads and Leads service professional in the period and (ii) completed and in-process Services jobs in the period; a single Service Request can result in multiple monetized transactions.
Current wording
•Monetized Transactions are (i) Service Requests that are matched to a paying Ads and Leads professional in the period and (ii) completed and in-process Services jobs in the period; a single Service Request can result in multiple monetized transactions.
Previous wording
•Transacting Service Professionals (“Transacting SPs”) are the number of (i) Ads and Leads service professionals that paid for consumer matches or advertising and (ii) Services service professionals that performed a Services job, during the most recent quarter.
Current wording
•Transacting Professionals(“Transacting Pros” formerly known as Transacting Service Professionals or “Transacting SPs”) are the number of (i) Ads and Leads professionals that paid for consumer matches or advertising and (ii) Services professionals that performed a Services job, during the most recent quarter.
Previous wording
Cost of revenue, which excludes depreciation, consists primarily of (i) credit card processing fees, (ii) hosting fees, and (iii) payments made to independent third-party service professionals who perform work.
Current wording
Cost of revenue, which excludes depreciation, consists primarily of (i) credit card processing fees, (ii) hosting fees, and (iii) payments made to independent third-party professionals who perform work.
Previous wording
•Selling and marketing expense - consists primarily of (i) advertising expenditures, which include marketing fees to promote the brand to consumers and service professionals with (a) online marketing, including fees paid to search engines and other online marketing platforms, partners who direct traffic to our brands, and app platforms, and (b) offline marketing, which is primarily television and radio advertising, (ii) compensation expense (including stock-based compensation expense) and other employee-related costs for our sales and marketing personnel, (iii) service guarantee expense, (iv) software license and maintenance costs, and (v) outsourced personnel costs.
Current wording
•Selling and marketing expense - consists primarily of (i) advertising expenditures, which include marketing fees to promote the brand to consumers and professionals with (a) online marketing, including fees paid to search engines and other online marketing platforms, partners who direct traffic to our brands, and app platforms, and (b) offline marketing, which is primarily television and radio advertising, (ii) compensation expense (including stock-based compensation expense) and other employee-related costs for our sales and marketing personnel, (iii) service guarantee expense, (iv) software license and maintenance costs, and (v) outsourced personnel costs.
Previous wording
•General and administrative expense - consists primarily of (i) compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in executive management, finance, legal, tax, human resources and customer service functions, (ii) provision for credit losses, (iii) software license and maintenance costs, (iv) outsourced personnel costs for personnel engaged in assisting in customer service functions, (v) fees for professional services, and (vi) rent expense and facilities costs (including impairments of right-of-use assets). Our customer service function includes personnel who provide support to our service professionals and consumers.
Current wording
•General and administrative expense - consists primarily of (i) compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in executive management, finance, legal, tax, human resources and customer service functions, (ii) provision for credit losses, (iii) software license and maintenance costs, (iv) outsourced personnel costs for personnel engaged in assisting in customer service functions, (v) fees for professional services, and (vi) rent expense and facilities costs (including impairments of right-of-use assets). Our customer service function includes personnel who provide support to our professionals and consumers.
Previous wording
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)is a non-GAAP financial measure. See “Principles of Financial Reporting” for the definition of Adjusted EBITDA and a reconciliation of net earnings (loss) attributable to Angi Inc. shareholders to operating income (loss) to consolidated Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023.
Current wording
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)is a non-GAAP financial measure. See “Principles of Financial Reporting” for the definition of Adjusted EBITDA and a reconciliation of net earnings (loss) attributable to Angi shareholders to operating income (loss) to consolidated Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023.
Previous wording
Results of Operations for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023
Current wording
Results of Operations for the Three and Nine Months Ended September 30, 2024 Compared to the Three and Nine Months Ended September 30, 2023
Previous wording
Ads and Leads revenue decreased $35.2 million, or 12%, due primarily to a decrease in consumer connection revenue of $41.4 million, or 20%, partially offset by an increase of $8.3 million, or 12%, in advertising revenue. The decrease in consumer connection revenue was driven by ongoing user-experience enhancements as well as lower sales and marketing spend, resulting in both lower Service Requests and lower acquisition of new service professionals. The increase in advertising revenue was primarily driven by continued growth in sales.
Current wording
Ads and Leads revenue decreased $50.8 million, or 17%, due primarily to a decrease in consumer connection revenue of $51.7 million, or 25%, and a decrease in membership subscription revenue of $2.7 million, or 21%, partially offset by an increase of $3.7 million, or 5%, in advertising revenue. The decrease in consumer connection revenue was driven by ongoing user-experience enhancements as well as lower sales and marketing spend, resulting in both lower Service Requests and lower acquisition of new professionals. The decrease in membership subscription revenue was primarily due to a decrease in professionals in the Angi network. The increase in advertising revenue was primarily due to an increase in advertising sold through our sales force.
Previous wording
Services revenue decreased $5.3 million, or 18%, due primarily to lower Service Requests as a result of the efforts described in Ads and Leads above.
Current wording
Services revenue decreased $6.3 million, or 21%, due primarily to a lower amount of Service Requests as a result of certain efforts described in Ads and Leads above.
Previous wording
International revenue increased $4.0 million, or 14%, due primarily to a larger service professional network and higher revenue per service professional.
Current wording
International revenue increased $2.5 million, or 9%, due primarily to a larger professional network and higher revenue per professional.
Previous wording
Ads and Leads revenue decreased $79.1 million, or 13%, due primarily to a decrease in consumer connection revenue of $93.8 million, or 22%, and a decrease in membership subscription revenue of $3.4 million, or 13%, due to declines in Monetized Transactions and service professionals in the Angi network, partially offset by an increase of $18.2 million, or 13%, in advertising revenue. The decrease in consumer connection revenue and the increase in advertising revenue were due primarily to the factors described above in the three-month discussion.
Current wording
Ads and Leads revenue decreased $129.9 million, or 15%, due primarily to a decrease in consumer connection revenue of $145.5 million, or 23%, and a decrease in membership subscription revenue of $6.1 million, or 15%, partially offset by an increase of $21.9 million, or 10%, in advertising revenue. The decreases in consumer connection revenue and membership subscription revenue and the increase in advertising revenue were due primarily to the factors described above in the three-month discussion.
Previous wording
Services revenue decreased $16.9 million, or 27%, due primarily to the factors described above in the three-month discussion. In addition, the decrease in revenue reflects the residual impact from contracts entered into prior to January 1, 2023 and recognized as gross revenue in the first quarter of 2023. Effective January 1, 2023, Angi Inc. modified the Services terms and conditions resulting in net revenue reporting.
Current wording
Services revenue decreased $23.1 million, or 25%, due primarily to the factors described above in the three-month discussion. In addition, the decrease in revenue reflects the residual impact from contracts entered into prior to January 1, 2023 and recognized as gross revenue in the first quarter of 2023. Effective January 1, 2023, Angi modified the Services terms and conditions resulting in net revenue reporting.
Previous wording
Ads and Leads cost of revenue increased $2.0 million, or 12%, and stayed consistent as a percentage of revenue, due primarily to higher hosting fees of $2.1 million and higher taxes of $1.8 million, partially offset by lower credit card processing fees of $1.8 million from lower revenue.
Current wording
Ads and Leads cost of revenue increased $1.9 million, or 22%, and increased as a percentage of revenue, due primarily to higher hosting fees of $2.1 million and higher non-income taxes of $0.6 million, partially offset by lower credit card processing fees of $0.6 million attributable to lower revenue.
Previous wording
Services cost of revenue decreased $1.3 million, or 26%, and stayed consistent as a percentage of revenue, due primarily to a $0.9 million decrease in payments to third-party professional service providers and a $0.3 million decrease in credit card processing fees from lower revenue.
Current wording
Services cost of revenue decreased $1.1 million, or 24%, and decreased as a percentage of revenue, due primarily to a $0.9 million decrease in payments to third-party professionals and a $0.3 million decrease in credit card processing fees attributable to lower revenue.
Previous wording
Services cost of revenue decreased $7.1 million, or 52%, and stayed consistent as a percentage of revenue, due primarily to a $6.2 million decrease in payments to third-party professional service providers primarily reflecting the residual impact from contracts entered into prior to January 1, 2023.
Current wording
Services cost of revenue decreased $8.2 million, or 45%, and decreased as a percentage of revenue, due primarily to a $7.1 million decrease in payments to third-party professionals primarily reflecting the residual impact from contracts entered into prior to January 1, 2023 and recognized as gross revenue in the first quarter of 2023, and lower revenue and a $0.9 million decrease in credit card processing fees attributable to lower revenue.
Previous wording
Angi gross profit decreased $35.9 million, or 11%, due primarily to the decrease in revenue described in the revenue discussion above.
Current wording
Angi gross profit decreased $55.6 million, or 16%, due primarily to the decrease in revenue described in the revenue discussion above.
Previous wording
Angi gross profit decreased $81.6 million, or 12%, due primarily to the decrease in revenue described in the revenue discussion above.
Current wording
Angi gross profit decreased $137.2 million, or 14%, due primarily to the decrease in revenue described in the revenue discussion above.
Previous wording
Ads and Leads selling and marketing expense decreased $88.8 million, or 24%, driven by decreases in advertising expense of $73.7 million and compensation expense of $10.9 million due primarily to the factors described above in the three-month discussion.
Current wording
Ads and Leads selling and marketing expense decreased $135.2 million, or 25%, driven by decreases in advertising expense of $113.8 million and compensation expense of $17.8 million due primarily to the factors described above in the three-month discussion.
Previous wording
Services selling and marketing expense decreased $5.4 million, or 23%, driven by decreases of $2.9 million in compensation expense and $1.5 million in third-party wages. The decrease in compensation expense is primarily due to a reduction in headcount. The decrease in third-party wages is primarily due to streamlined fulfillment operations.
Current wording
Services selling and marketing expense decreased $5.0 million, or 16%, driven by decreases of $3.0 million in compensation expense and $1.4 million in third-party wages. The decrease in compensation expense is primarily due to a reduction in headcount. The decrease in third-party wages is primarily due to streamlined fulfillment operations.
Previous wording
Ads and Leads general and administrative expense decreased $7.5 million, or 13%, due primarily to decreases of $6.8 million in the provision for credit losses, $1.6 million in third-party wages, $1.3 million in compensation expense, and $1.2 million in professional fees, partially offset by an increase of $4.4 million in lease expense. The decrease in the provision for credit losses is primarily due to lower revenue and improved collection rates. The decrease in third-party wages is primarily due to reduced costs related to customer support services. The decrease in compensation expense is primarily driven by lower headcount. The decrease in professional fees is primarily due to a decrease in legal fees. The increase in lease expense is primarily due to impairment charges of $4.8 million ofright-of-use assets ("ROU assets") related to the Company reducing its real estate footprint.
Current wording
Services general and administrative expense decreased $6.2 million, or 48%, due primarily to decreases of $2.7 million in compensation expense, $1.3 million in third-party wages, $0.5 million in the provision for credit losses, $0.5 million in insurance expense, and $0.4 million in legal-related expenses. The decrease in compensation expense is primarily driven by lower headcount. The decrease in third-party wages is primarily due to reduced costs related to customer support services. The decrease in the provision for credit losses is primarily due to lower revenue and improved collection rates. The decrease in insurance expense is primarily due to a reduction in premiums as a result of decreased risk related to ceasing certain portions of certain business operations. The decrease in legal-related expenses is primarily due to a reduction in legal settlement costs and related legal expenses.
Previous wording
Ads and Leads general and administrative expense decreased $15.0 million, or 13%, due primarily to decreases of $14.5 million in the provision for credit losses and $4.0 million in legal fees, partially offset by an increase of $6.3 million in lease expense. The decrease in the provision for credit losses is primarily due to lower revenue and improved collection rates. The decrease in professional fees is primarily due to a reduction in legal settlements. The increase in lease expense is primarily due to impairment charges of $6.8 million of ROU assets related to the Company reducing its real estate footprint.
Current wording
Ads and Leads general and administrative expense decreased $30.6 million, or 17%, due primarily to decreases of $19.3 million in the provision for credit losses, $8.9 million in legal-related expenses, and $4.3 million in software license and maintenance costs, and $3.2 million in third-party wages, partially offset by an increase of $6.1 million in lease expense. The decreases in the provision for credit losses, software license and maintenance costs, and third-party wages are due primarily to the factors described above in the three-month discussion. The decrease in legal-related expenses is primarily due to a reduction in legal settlement costs and related legal expenses. The increase in lease expense is primarily due to impairment charges of $6.8 million of ROU assets related to the Company reducing its real estate footprint in the first half of 2024.
Previous wording
Services general and administrative expense decreased $1.9 million, or 18%, due primarily to decreases of $1.0 million in software license and maintenance expense and $1.0 million in compensation expense. The decrease in software license and maintenance expense is due primarily to reduced costs related to customer support services. The decrease in compensation expense is primarily driven by lower headcount.
Current wording
Services general and administrative expense decreased $12.5 million, or 34%, due primarily to decreases of $7.3 million in compensation expense, $1.1 million in software license and maintenance costs, and $1.0 million in third-party wages. The decrease in compensation expense is primarily due to a reduction in headcount. The decreases in software license and maintenance costs and third-party wages are due primarily to reduced costs related to customer support services.
Previous wording
Depreciation increased $1.0 million, or 2%, due primarily to impairment charges of $3.9 million related to certain leasehold improvements and furniture and fixtures, recognized in connection with the Company reducing its real estate footprint, partially offset by a reduction in depreciation of capitalized software largely as a result of assets fully depreciating in current and previous periods.
Current wording
Depreciation decreased $4.9 million, or 22%, due primarily to the write-off of certain leasehold improvements and furniture and fixtures in connection with the Company reducing its real estate footprint in the first half of 2024 and a reduction in depreciation of capitalized software largely as a result of assets fully depreciating in current and previous periods.
Previous wording
Operating income increased from operating losses for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023, due primarily to the factors described above in the revenue, cost of revenue, sales and marketing, general and administrative, product development, and depreciation expense discussions, as well as a decrease in expense related to amortization of intangibles due primarily to certain intangible assets becoming fully amortized.
Current wording
Operating income increased from operating losses for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, due primarily to the factors described above in the revenue, cost of revenue, selling and marketing, general and administrative, product development, and depreciation expense discussions, as well as a decrease in expense related to amortization of intangibles due primarily to certain intangible assets becoming fully amortized.
Previous wording
At June 30, 2024, there was $48.7 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 2.26 years.
Current wording
At September 30, 2024, there was $43.0 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 2.12 years.
Previous wording
For a reconciliation of net earnings (loss) attributable to Angi Inc. shareholders to operating income (loss) to consolidated Adjusted EBITDA, see “Principles of Financial Reporting.” For a reconciliation of operating income (loss) to Adjusted EBITDA for the Company’s reportable segments, see “Note 5—Segment Information” to the financial statements included in “Item 1. Consolidated Financial Statements.”
Current wording
For a reconciliation of net earnings (loss) attributable to Angi shareholders to operating income (loss) to consolidated Adjusted EBITDA, see “Principles of Financial Reporting.” For a reconciliation of operating income (loss) to Adjusted
Previous wording
Ads and Leads Adjusted EBITDA increased $22.2 million, or 33%, to $90.2 million, and increased as a percentage of revenue, driven by lower selling and marketing expense due to improved marketing efficiency and lower general and administrative expense due to the decrease in the provision for credit losses and lower compensation costs, partially offset by lower gross profit due to a decrease in revenue, and an increase in lease expense.
Current wording
Ads and Leads Adjusted EBITDA increased $10.1 million, or 31%, to $42.2 million, and increased as a percentage of revenue, driven by lower selling and marketing expense due to improved marketing efficiencies and lower general and administrative expense due to lower software license and maintenance costs, a decrease in the provision for credit losses, and lower legal-related expenses, partially offset by lower gross profit due to a decrease in revenue.
Previous wording
Ads and Leads Adjusted EBITDA increased $20.8 million, or 74%, to $49.0 million, and increased as a percentage of revenue, driven by lower selling and marketing expense due to improved marketing efficiency and lower general and administrative expense due to the decrease in the provision for credit losses and lower compensation costs, partially offset by lower gross profit due to a decrease in revenue, and an increase in lease expense.
Current wording
Ads and Leads Adjusted EBITDA increased $32.2 million, or 32%, to $132.4 million, and increased as a percentage of revenue, driven by lower selling and marketing expense due to improved marketing efficiency and lower general and administrative expense due to the decrease in the provision for credit losses and lower legal fees, partially offset by lower gross profit due to a decrease in revenue, and an increase in lease expense.
Previous wording
Services Adjusted EBITDA increased $2.5 million, from a loss of $0.5 million to income of $2.0 million, and increased as a percentage of revenue, driven by higher gross profit due to exiting complex and less profitable offerings and lower compensation costs and other operating expenses.
Current wording
Services Adjusted EBITDA increased $2.8 million, or 91%, to $5.9 million, and increased as a percentage of revenue, driven by lower compensation costs and other operating expenses.
Previous wording
International Adjusted EBITDA increased $2.3 million, or 81%, to $5.1 million, driven by an increase in revenue and continued operating expense leverage.
Current wording
International Adjusted EBITDA increased $4.2 million, or 38%, to $15.5 million, and increased as a percentage of revenue, driven by an increase in revenue and continued operating expense leverage.
Previous wording
Interest expense was flat compared to the three and six months ended June 30, 2023.
Current wording
Interest expense was flat compared to the three and nine months ended September 30, 2023.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
EBITDA for the Company’s reportable segments, see “Note 5—Segment Information” to the financial statements included in “Item 1—Consolidated Financial Statements.”
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
In 2024, the effective income tax rate is higher than the statutory rate of 21% due primarily to the impact of stock-based awards and unbenefited losses, partially offset by research credits.
Previous report — wording carried elsewhere
On August 2, 2024, the Angi Inc. board of directors approved a new stock repurchase authorization of 25 million shares.