Angi (ANGI) Q3 2024 earnings summary

Executive summary

• IAC is contemplating a spin-off of Angi, which would create two focused companies and allow Angi to pursue its own strategy and liquidity; this marks the first spin-off in four years.

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

• 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; nine-month Adjusted EBITDA was $113.6M, up 47%.

• IAC continues to focus on slimming down and executing on fewer priorities, with capital allocation flexibility and a growing cash balance.

Financial highlights

• Digital advertising revenues grew 26% in Q3, with 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, with a gross margin of 95%.

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

• Free Cash Flow for nine months was $78.4M, up $29.2M year-over-year.

Outlook and guidance

• Expecting digital revenue growth in the mid to high single digits for Q4 due to softer October performance.

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

• Angi expects revenue to decline in Q1 2025, stabilize, and return to growth in 2026, with profitability held steady in 2025.

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

• Management expects existing cash and positive cash flows to fund normal operations and commitments for the next twelve months.