Angi Inc

Previous 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.

Current wording

Angi Inc. (“Angi,” the “Company,” “we,” “our,” or “us”) connects quality Pros with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. There were approximately 134,000 Average Active Monthly Pros (as defined below) during the three months ended March 31, 2025. Additionally, consumers turned to at least one of our businesses to find a Pro for approximately 16 million projects during the twelve months ended March 31, 2025.

Previous wording

The Company has three operating segments: (i) Ads and Leads; (ii) Services; and (iii) International (consisting of businesses in Europe and Canada) and operates under multiple brands including Angi, HomeAdvisor, and Handy.

Current wording

The Company has two operating segments: (i) Domestic and (ii) International (consisting of businesses in Europe and Canada) and operates under multiple brands including Angi, HomeAdvisor, and Handy.

Previous 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.

Current wording

In the United States, the Company provides Pros 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 Pros nationwide for home repair, maintenance and improvement projects. Consumers can also request household services directly through the Angi platform, and such requests are fulfilled by independently established Pros engaged in a trade, occupation and/or business that customarily provides such services. Matching service, booking of pre-priced services, and related tools and directories are provided to consumers free of charge upon registration. The Company also owns marketplaces in Austria, Canada, France, Germany, Italy, the Netherlands, and the UK which provide Pros the ability to engage with potential customers and consumers the ability to engage with the Pros they need.

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 professional to perform the service.

Current wording

•Domestic Revenue primarily comprises domestic revenue from lead revenue for consumer matches, revenue from Pros under contract for advertising and membership subscription revenue from Pros and consumers, and revenue from pre-priced offerings by which the consumer requests services through a Company platform and the Company connects them with a Pro 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 professionals and consumers.

Current wording

•International Revenue primarily comprises revenue generated within the International segment (consisting of businesses in Europe and Canada), including lead revenue for consumer matches and membership subscription revenue from Pros.

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 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 Pros 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 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 Pros 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 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 Pros 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 shareholders to operating income (loss) to consolidated Adjusted EBITDA for the three and nine months ended September 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 required non-GAAP reconciliations.

Previous 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

Current wording

Results of Operations for the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Previous wording

The following discussion should be read in conjunction with “Item 1—Consolidated Financial Statements.”

Current wording

The following discussion should be read in conjunction with “Item 1—Consolidated Financial Statements.” Included below are year-over-year comparisons between the three months ended March 31, 2025 and the three months ended March 31, 2024 reflecting our updated segment structure. See “Note 1—The Company and Summary of Significant Accounting Policies” for details regarding our segment change.

Previous 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.

Current wording

Domestic cost of revenue increased $0.4 million, or 3%, and increased as a percentage of revenue, due primarily to higher hosting fees of $1.8 million, partially offset by lower credit card processing fees of $1.2 million.

Previous wording

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 wording

International cost of revenue increased $0.1 million or 13%, and stayed consistent as a percentage of revenue, due primarily to a $0.1 million increase in the cost of content purchased and used on the business’s websites.

Previous wording

Angi gross profit decreased $55.6 million, or 16%, due primarily to the decrease in revenue described in the revenue discussion above.

Current wording

Gross profit decreased $60.0 million, or 20%, due primarily to the decrease in revenue described in the revenue discussion above.

Previous wording

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 wording

Domestic selling and marketing expense decreased $36.7 million, or 25%, driven by decreases in compensation expense of $18.4 million and advertising expense of $16.9 million. The decrease in compensation expense was due primarily to a reduction in headcount. The decrease in advertising expense was due primarily to lower offline advertising.

Previous wording

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 wording

Domestic general and administrative expense decreased $28.3 million, or 37%, due primarily to decreases of $15.4 million in compensation expense, $5.3 million in the provision for credit losses, $2.9 million in lease expense, $2.2 million in software license and maintenance costs, and $2.1 million in third-party wages. The decrease in compensation expense is primarily due to cumulative previously recognized stock-based compensation expense of $10.2 million related to IAC restricted stock forfeited by Joseph Levin, former CEO of IAC and current Executive Chairman of Angi, and a reduction in headcount. The decrease in the provision for credit losses is primarily due to lower revenue and improved collection rates. The decrease in lease expense is primarily due to an impairment charge of a right-of-use asset previously recognized in the first quarter of 2024 and the Company’s reduction of its real estate footprint. The decrease in software license and maintenance costs and third-party wages are due primarily to reduced costs related to customer support services.

Previous wording

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 wording

Product development expense increased $3.3 million, or 14%. The increase in product development expense was primarily driven by an increase in compensation expense.

Previous 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.

Current wording

Depreciation decreased $13.9 million, or 58%, due primarily to the reduction in capitalized software spend over prior periods and the write-off of certain leasehold improvements and furniture and fixtures in connection with the Company reducing its real estate footprint in 2024.

Previous 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.

Current wording

Operating income increased for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to the factors described above in the selling and marketing, general and administrative, and depreciation expense discussions.

Previous 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.

Current wording

At March 31, 2025, there was $28.3 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 2.04 years.

Previous 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.

Current wording

Domestic Adjusted EBITDA decreased $7.7 million, or 26%, to $21.6 million, and decreased as a percentage of revenue, driven by lower gross profit due to a decrease in revenue, partially offset by lower selling and marketing expense due to a decrease in compensation expense and improved marketing efficiency and lower general and administrative expense due to decreases in compensation expense and the provision for credit losses.

Previous wording

Interest expense was flat compared to the three and nine months ended September 30, 2023.

Current wording

Interest expense was flat compared to the three months ended March 31, 2024.

Previous wording

In 2023, the effective income tax rate was lower than the statutory rate of 21% due primarily to the impact of stock-based awards, partially offset by research credits.

Current wording

In 2024, the Company recorded an income tax provision due primarily to the impact of stock-based awards and unbenefited losses, partially offset by research credits.

Previous wording

Stock-based compensation expense consists of expense associated with the grants, including unvested grants assumed in acquisitions, of stock appreciation rights, restricted stock units (“RSUs”), stock options, performance-based RSUs (“PSUs”) and market-based awards. These expenses are not paid in cash and we view the economic costs of stock-based awards to be the dilution to our share base; we also include the related shares in our fully diluted shares outstanding for GAAP earnings per share using the treasury stock method. PSUs and market-based awards are included only to the extent the applicable performance or market condition(s) have been met (assuming the end of the reporting period is the end of the contingency period). The Company is currently settling all stock-based awards on a net basis and remits the required tax-withholding amounts from its current funds.

Current wording

Stock-based compensation expense consists of expense associated with the grants, including stock appreciation rights, restricted stock units (“RSUs”), stock options, performance-based RSUs (“PSUs”) and market-based awards. These expenses are not paid in cash and we view the economic costs of stock-based awards to be the dilution to our share base; we also include the related shares in our fully diluted shares outstanding for GAAP earnings per share using the treasury stock method. PSUs and market-based awards are included only to the extent the applicable performance or market condition(s) have been met (assuming the end of the reporting period is the end of the contingency period). The Company is currently settling all stock-based awards on a net basis and remits the required tax-withholding amounts from its current funds.

Previous wording

Net cash provided by operating activities attributable to continuing operations consists of earnings adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments include depreciation, provision for credit losses, stock-based compensation expense, non-cash lease expense (including impairment of right-of-use assets), deferred income taxes, and amortization of intangibles.

Current wording

Net cash (used in) provided by operating activities consists of earnings adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments include depreciation, provision for credit losses, stock-based compensation expense, non-cash lease expense (including impairment of right-of-use assets), deferred income taxes, and amortization of intangibles.

Previous wording

Adjustments to net loss attributable to continuing operations consist primarily of $69.7 million of depreciation, $64.8 million of provision for credit losses, $33.6 million of stock-based compensation expense, $9.1 million of non-cash lease expense, and $8.0 million of amortization of intangibles. The decrease from changes in working capital consists primarily of an increase of $58.5 million in accounts receivable, a decrease of $16.5 million in operating lease liabilities, and an increase of $18.8 million in accounts payable and other liabilities. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The increase in accounts payable and other liabilities is due, in part, to timing of payments.

Current wording

Adjustments to net earnings consist primarily of $11.3 million of provision for credit losses, $9.9 million of depreciation, $2.7 million of deferred income taxes, $1.8 million of non-cash lease expense, and $(2.3) million of stock-based compensation expense. The decrease from changes in working capital consists primarily of a decrease of $20.4 million in accounts payable and other liabilities, an increase of $14.8 million in accounts receivable, a decrease of $6.7 million in deferred revenue, and a decrease of $3.3 million in operating lease liabilities, partially offset by a decrease of $2.5 million in other assets. The decrease in accounts payable and other liabilities is due primarily to payments for accrued compensation, partially offset by the timing of payments. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in deferred revenue is due primarily to a decrease in advertising sales and lower memberships. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The decrease in other assets is due to lower capitalized sales commissions which were impacted by a reduction in the size of the sales force, a larger portion of sales commissions being expensed rather than capitalized in the period, and a shift to annual bonuses for roles that previously received commissions, partially offset by an increase in prepaid assets due to the timing of invoices.

Previous wording

Net cash used in investing activities attributable to continuing operations includes capital expenditures of $37.5 million primarily related to investments in capitalized software to support the Company’s products and services.

Current wording

Net cash used in investing activities includes capital expenditures of $12.6 million primarily related to investments in capitalized software to support the Company’s products and services.

Previous wording

Net cash used in financing activities attributable to continuing operations includes $4.8 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled and $3.4 million for the repurchase of 1.1 million shares of the Company’s Class A common stock, on a settlement date basis, at an average price of $3.22 per share.

Current wording

Net cash used in financing activities includes $9.8 million for the repurchase of 0.6 million shares of the Company’s Class A Common Stock, on a settlement date basis, at an average price of $16.53 per share and $4.5 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Previous wording

Adjustments to net earnings attributable to continuing operations consist primarily of $65.7 million of depreciation, $43.7 million of provision for credit losses, $28.1 million of stock-based compensation expense, $13.8 million of non-cash lease expense (including impairment of right-of-use assets), and $24.6 million of deferred income taxes. The decrease from changes in working capital consists primarily of an increase of $44.7 million in accounts receivable, a decrease of $13.9 million in operating lease liabilities and a decrease of $3.9 million in accounts payable and other liabilities, partially offset by a decrease of $21.1 million in other assets. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The decrease in accounts payable and other liabilities is due primarily to the timing of payments, partially offset by an increase in accrued advertising. The decrease in other assets is due primarily to payment received related to insurance coverage for previously incurred legal fees and a decrease in prepaid hosting services.

Current wording

Adjustments to net loss consist primarily of $23.8 million of depreciation, $15.9 million of provision for credit losses, $9.4 million of stock-based compensation expense, $4.8 million of non-cash lease expense (including impairment of right-of-use assets), and $1.3 million of deferred income taxes. The decrease from changes in working capital consists primarily of an increase of $25.8 million in accounts receivable and decreases of $17.4 million in accounts payable and other liabilities and $4.5 million in operating lease liabilities, partially offset by a decrease of $13.3 million of other assets. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in accounts payable and other liabilities is due primarily to payments for accrued compensation. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The decrease in other assets is due primarily to a payment received related to insurance coverage for previously incurred legal fees.

Previous wording

Net cash used in investing activities attributable to continuing operations includes capital expenditures of $36.1 million primarily related to investments in capitalized software to support the Company’s products and services and purchases of marketable debt securities of $12.4 million, partially offset by proceeds from maturities of marketable debt securities of $12.5 million.

Current wording

Net cash used in investing activities includes capital expenditures of $12.8 million primarily related to investments in capitalized software to support the Company’s products and services.

Previous wording

Net cash used in financing activities attributable to continuing operations includes $25.7 million for the repurchase of 11.4 million shares of the Company’s Class A common stock, on a settlement date basis, at an average price of $2.25 per share,

Current wording

Net cash used in financing activities includes $6.9 million for the repurchase of 0.3 million shares of Angi Inc. Class A Common Stock, on a settlement date basis, at an average price of $23.72 per share and $3.2 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Previous wording

During the nine months ended September 30, 2024, the Company repurchased 11.4 million shares of its Class A common stock, on a trade date basis, at an average price of $2.25 per share, or $25.6 million in aggregate. During the fourth quarter of 2023, the Company announced its intent to repurchase the 14.0 million shares remaining in its stock repurchase authorization from March 2020 (the “2020 Share Authorization”). On August 2, 2024, the board of directors of the Company approved a new stock repurchase authorization of 25 million shares (the “2024 Share Authorization”). As of August 19, 2024, the Company had no shares remaining under the 2020 Authorization. From October 1, 2024 through November 8, 2024 the Company repurchased an additional 1.1 million shares at an average price of $2.49 per share, or $2.8 million in aggregate. As of November 8, 2024, the Company had 23.1 million shares remaining in the 2024 Share Authorization.

Current wording

During the three months ended March 31, 2025, the Company repurchased 0.6 million shares of its Class A Common Stock, on a trade date basis, at an average price of $16.46 per share, or $10.6 million in aggregate. From April 1, 2025 through May 2, 2025 the Company repurchased an additional 1.7 million shares at an average price of $12.83 per share, or $21.3 million in aggregate. As of May 2, 2025, the Company had no shares remaining in the 2.5 million share authorization approved by the board of directors of the Company on August 2, 2024.

Previous wording

The Company’s 2024 capital expenditures are expected to be higher than 2023 capital expenditures of $47.8 million by approximately 10% to 15%, due to an increase related to capitalized software.

Current wording

The Company’s 2025 capital expenditures are expected to be higher than 2024 capital expenditures of $50.5 million by approximately 15% to 25%, due to an increase related to capitalized software.