Our Top 5 Analyst Questions

Angi’s fourth quarter results were marked by continued revenue declines and a significant miss relative to Wall Street expectations, prompting a notably negative market reaction. Management attributed the underperformance to persistent headwinds in both Google SEO and network channels, which have pressured the company’s top line for several quarters. CEO Jeffrey W. Kip acknowledged, “We’ve essentially said we don’t think we’re gonna make progress back,” referencing the company’s decision to adopt a more conservative outlook for these channels after repeated setbacks. The quarter also saw Angi double down on operational changes, including targeted cost reductions and a renewed focus on its proprietary business, which management claims is showing signs of customer repeat growth and improved customer experience metrics.

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• Revenue: $240.8 million vs analyst estimates of $243.7 million (10.1% year-on-year decline, 1.2% miss)

• Adjusted EPS: $0.31 vs analyst expectations of $0.59 (46.9% miss)

• Adjusted EBITDA: $10.35 million vs analyst estimates of $40.05 million (4.3% margin, 74.2% miss)

• Operating Margin: 2.5%, up from 0.8% in the same quarter last year

• Market Capitalization: $324.8 million

While we enjoy listening to the management’s commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

• Eric Sheridan (Goldman Sachs): Asked about the AI rollout timeline and how AI features support a broader platform recovery. CEO Jeffrey W. Kip said AI helpers are being incrementally rolled out, with conversion improvements observed, and that broader LLM partnerships are still in early phases.

• Sergio Segura (KeyBanc): Questioned the rationale for tripling brand marketing spend and expected ROI timing. CFO Andrew Russakoff replied that spend is returning to historic, profitable levels, with payback expected over several quarters, and that improved customer experience supports the move.

• Daniel Kurnos (Stacks): Inquired about pro capacity trends and the impact of the ongoing platform consolidation. Russakoff noted a shift to larger pros with greater capacity, while Kip said the platform rebuild may delay some milestones but is designed to avoid business disruption.

• Stephen Ju (UBS): Asked about the tech stack modernization to leverage AI and potential macroeconomic impacts. CEO Kip described the transition to a flexible, componentized platform with integrated AI, while Russakoff pointed to weaker consumer confidence and lower discretionary spend as ongoing concerns.

• Cory Carpenter (JPMorgan): Sought clarification on the decline in revenue per lead and capital allocation priorities post-spin. Russakoff explained that additional leads are being delivered to capped subscription pros, pressuring revenue per lead, and said capital allocation will focus on debt management with a long-term view toward possible share buybacks and tuck-in acquisitions.