Angi (ANGI) Q4 2024 earnings summary

Executive summary

• Significant turnaround achieved in Angi and Dotdash Meredith (DDM) after a period of crisis, with both businesses now positioned for growth following operational and leadership changes.

• Angi underwent a strategic refocus, reducing low-margin revenue and capital expenditures, resulting in restored profitability and positive cash flow.

• Q4 2024 revenue was $267.9 million, down 11% year-over-year, with operating income of $2.2 million and Adjusted EBITDA of $31.8 million, both declining from Q4 2023.

• Net loss improved to $1.3 million from $5.6 million in Q4 2023.

• The company is spinning off Angi as a standalone public entity, targeting a seamless transition by March 31, 2025, with Joey Levin appointed Executive Chairman and stepping down as IAC CEO upon spin-off or by May 31, 2025.

Financial highlights

• Cash flow increased by nearly $250 million year-over-year, reaching almost $300 million for IAC's businesses.

• DDM posted 10% digital revenue growth in Q4 2024, with performance marketing up 22% and licensing revenue strong.

• DDM's EBITDA guidance for 2025 is $330–350 million, excluding a $36 million one-time lease buyout gain.

• Angi will be spun off with $416 million in cash and $500 million in bonds.

• Full year 2024 operating income rose by $48 million to $22 million; Adjusted EBITDA up 23% to $145 million.

Outlook and guidance

• Angi expects Q1 2025 revenue to be down low 20% year-over-year due to regulatory and product changes, but anticipates revenue improvement through the year and a return to growth in 2026.

• DDM forecasts +10% digital revenue growth for 2025, with high single-digit growth in Q1 and stronger Q2 due to favorable comps and holiday timing.

• DDM targeting +40% digital incremental EBITDA margins for 2025.

• Q1 2025 guidance: breakeven operating income and over $20 million Adjusted EBITDA; FY 2025 guidance: $25–$60 million operating income and $135–$150 million Adjusted EBITDA.