IAC InterActive (IAC) 10 May 232023 Q1 Earnings call transcript

Good morning. And welcome to the IAC and Angi First Quarter 2023 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded.

to COO conference of like Halpin, to now and CFO IAC. would turn over the Christopher I Please go ahead.

first Thank you. the Inc.’s to here and earnings Good morning, everyone. IAC Christopher and Halpin welcome quarter call. Angi

Chairman Joey is of CEO today me of Levin, Inc. Joining Angi IAC CEO and and

also currently IAC’s last to available Investor section of has on to quarterly shareholder earnings releases, our the Similar its quarterly letter, website. quarter, IAC supplemental published which is Relations

will letter will brief the shortly not I be this We to introductory few turn shareholder over a on Joey the to call call. reading make remarks.

open to We it will then up Q&A.

Before words may to remind discuss such we believe, as get may or These you we and that, outlook typically presentation, performance. we statements. future expect, this we I’d anticipate our forward-looking we to by that similar preceded like statements during be

These our are views and risks actual from and today. results forward-looking uncertainties, the subject materially expressed differ views to could

releases Inc.’s respective these in quarter forth risks have with SEC. filings first set Some of been the and in IAC’s Angi our

also to shareholder certain to of call. refer reconciliations include will Investor which, EBITDA, measures, and EBITDA all adjusted the discuss releases, respective refer our non-GAAP as again for Relations we full reminder, for today also you simplicity GAAP will non-GAAP websites a during measures which I as for letter the and comparable our IAC to section will measures. the We all material

it, into Now Joey. right let’s jump

Thanks for a everybody. us Welcome, playing here. bit good Chris. you, again be morning. offense Thank joining this Feels of to

earnings. turned have we on meaningfully think I corner a

to I working is back here. think the basic theme

in quarters, to to and the that’s for internally starting quarter allocating our I up again, focus capital on numbers, that’s think us too. and focused several or allowed show really have We last

of put we on focused internally really all things it quarter You to really well. of you this know a the capital and work saw lot

are back our to getting and which is with consistent consistent we in seeing basic -- business what we I are think theme things that’s our with working.

that experience things are working getting things we and for in of getting working are and starting to future on we know interested people of in working terms did really feels preparing profitability, things this competitively to to that are win customer that quarter we getting the team. of lot a things We hear are and be there’s of terms about. in I good terms

So Operator. let’s to Thanks, get quickly. questions

question comes Barclays. first Our Please Ross Instructions] from [Operator go Sandler from ahead.

Good Yeah. just had guys. morning, two I questions.

second on on First Dotdash then the and buyback Meredith.

math -- on first everybody curious the call see we I the Angi’s the course corner the of and to being and negative, what think, the on on is now. why first half. in as are buyback, here the We So, the or turning DDM quarter obviously,

the us And with or Thanks negative expect we So within looks to of on, January Meredith, Any XX%, through forward? on it like would of and strength going according to a positive. the that terms in anything plan you areas what or Dotdash business? flag just could going thinking lot. weakness you June surprises decision here should what that the like progression into goes happening walk then is

Sure. Ross, share I on appreciate buybacks. the question

answered it’s is sense, that’s said. you and compelling we the that negative bit in value It a think it the thesis. have things question. in investment think, I the you One a implied is little a

Two, the is. business it’s state the of

and overall cash milestones the is back us and are earnings, buying for -- But what look comfortable we more when we are for us. combination feel shares feel as at aggregate, that we are a that we we in those when growing we kind compelling business. in we and we important things a are when So are generating have of environment is how of it

is and -- question. right goes other where high bar as things I will consider we and when would regularly, share we that is prioritize over can will it a now. really consider other something continue opportunities, very it see usual, answer we which than for bar to we a the never repurchases we it regularly, or will we share the here, from far would As repurchase say

it’s our are at things lots of with opportunities, are we always when right will I quarter, we long a capital, very seize there the and But it more that and very them. compelling first now, seized things, But at in continue we will we time. to we compelling that looking see and than look think, was been was of opportunity and lots in we

the the a well sites both as are as that then, is driving and And speeding over, on and reminder, clutter Yeah. on Meredith, Ross. we them Meredith Dotdash old content, running performance. ad playbook Thanks, traffic up, out Dotdash bringing as about cutting

migration but As are the only be that the be good. strength in XX shareholder categories across basis, and in an versus we key very lot letter, green on page titles, state. would -- on broadly highlighted titles are that steady of into feel not also Meredith Meredith titles and the that, state A Dotdash now we absolute seven seeing to between would we similar months similar months we

That’s get question, I May, there trial. the as Oscar is purely the swap, because about that head We on. well nothing the is the so People them was last take will Depp yellow, Johnny as migration. April,

once but we Feel property. there. recently, that there excellent tougher good very lap we return we strong Depp to an been expect quarter, growth first had about Johnny has the to traffic verdict, So

impressions. are of it, good game InStyle Parents but low rid bought there getting on. has plan the challenged since about a and really working been we we we calorie feel of lot

strong. there on very very a small. are is and plan have traffic. shape That’s rest The game We

continues taking is and out very to the the brands marketing and thesis to Meredith The The thesis that e-commerce be assets part and other and e-commerce performance them marketing performance key narrative through Dotdash of driving is of sites excellent. whole the well. the playing

March continue move expect strength-to-strength from in across We for portfolio. the Board across up in the time and just while were the a first highlighted, to to we in marketing we performance

good So question? feel Operator, there. next

Next JPMorgan. question go Please Carpenter comes Cory from from ahead.

just all talked Hi. seeing it talked a the side? two much I how year? cost led then side lot does and the of cleaning about questions. could on growth XXXX? you growth about up I your room long you. expect on in Thanks sort platform. you the through think profit and expectations Thank to focus raise previously work to Joey, on this talk of about that where do you quality you take this, How greater kind flattish at Angi. revenue, to you you for more then change it And efficiencies have can the letter for are the had still on the

Sure. don’t On here. are cutting expect the further cost profit on and from side, costs I we

that more think that, and in not very of efficiently. I terms think a we on terms just that’s of generating more well, in did operating I worked profit, lot but

people, I faster actually more getting that’s think done we fewer with and are good.

a think we are there. I So good in place

talked the where about have side, We very marketing, to has cost but areas we like particular, where are gone marketing start will on reinvest are well that in television with pleased there. we we and

continue probably, side. course play doing are about we of we to is things revenue will think invest year, the out the over to on to that really more quality are this where and going The

mean that we on I is are say revenue I So what certain invest side doing. get the of revenue when out

the that revenue we of get I letter, for out of generating good are some don’t long-term think these in certain that our alluded things I ecosystem. to is

I the leads probably over in that XXXX to declines think little revenue. of course

from things the I of we revenue and so they or I Chris of there. generate have will less sending of to invest a a like certain more retain marketing moving longer will numbers more experience. and emails, But ROI our kinds channels, allowing let That’s the of professionals away sales think better experience take the fewer revenue doing service you fewer buy customer better can through on reinvest the certain products platform. that or and

we grow lot continue I have place we those and will come of course QX changes and over a happening really organization put -- to in rest of XXXX. QX that over view course that investment that the of to XXXX that throughout place and the over year the the of all the in into happening Those

complete. on more and in impact and on of that but that revenue, also cuts but their mix what lifetime and the spend us. again, with XXXX, our over course benefit so Again, an we driving have get we we do to changed over pros more the of XXXX. did offer in also The are we retention -- that has hurts the -- of also most cost sales That us

Sure. Cory. And thanks,

profitability, is are of we service revenue a net terms aggregate what on on outlook across revenue that In all basis. and lines expecting

net for So as if treating services -- year. XXXX at full the was booked looking

revenues period for revenue year of the in less year-over-year during spike quarter to expect And of had QX be decline a to push be X% QX X% would XX% or of revenue QX we down a last stripping pronounced lower range and on XX% that expect most That each the towards in down that we be -- then in lower a that We to quality. XXXX. at that a and to sort value basis. as remainder number in will

expect more whole on to similar like we in TV. QX marketing adjusted We spend QX QX perspective, profitability a tend in an of On be to basis on to terms dollars. things EBITDA

bit in QX, be QX, there. QX and little margins spend and lower to margins revenue we and in a and cash profitability solid on marketing expect then free QX of higher a are margins So seasonally lower, expect little though even drive was and flow immediate we

revenues, growth year revenues the but headwind. in quarters good getting rid on of for performance margins quality half two we really can despite in us revenue as setting that and year are a So declining the lot these the the XXXX, expect up last we of lower second of have -- still of

want good the experience to Yeah. I just folks the talking going internally, said to I that is, are only for Angi customer revenue is, off way our team the to long-term and that on is The we add to I’d have turn be customer not everybody, thing about further relationships.

that lifelong the we and If building build customers make customers, are let’s healthy. lifelong

there We profit and revenue that room on experience profit over customer and with. to in do now prioritize right I work want to have have to plenty got we of got the

I think and place been and thing go over I priority be from our a it in it’s course view a -- very there. it business grow us the that’s healthy But our decisions. XXXX healthy will as very of as I a to view And those being as with and priority that

next Operator, question? you. Thank

Next question Wells Please comes from Brian Fargo. Fitzgerald go from ahead.

general and AI if in thoughts also businesses your defend Thanks thoughts and see you letter. differentiate the could Joey. from wanted for generative any AI drive you network just first share lift opportunities one And one. your and Meredith new some of you well? key the on content if intent-driven second of competitors? highlight We sites insights AI within looking the how on in opportunity product. monetization That’s elsewhere IP your Internet you on across for the to Quick use there to Thanks, your ask you then extension the interest the on the audience can could was on Are is an Heal’s using Thanks. or as gained Dotdash

one audience the and Yeah. so extension one. come to -- on not there. Dotdash focused I first I The will AI the we will are then do

on We we that and the are in product intent proving focused showing have.

the looking is of that, cookies hardest you PII, And across, fact are advertisers you we It which things. that to or need we two intent, organizing those that. don’t around branding for come key and we having can other features while that don’t are that, are anonymity the things the today, have you which need one not is deliver has

on sales, focus very the it’s towards helpful internally. I that think but is

inventory and where be audience things I in that and Obviously, sell not there few But exciting. are can have across focus sites to priority will out, say think, going that the the opportunities weeks that are so there aren’t that comes happen. that -- to today, next I but we be possible. is lot those and there a of of that that’s think that And our components can for we expansion and

how will We goes. that see

now and AI code businesses, they bunch code. of right the using code using robustly in a in pieces are happening writing can is terms and using, probably, and places of through there. helping people get talk -- where In of where much them code getting that developer using real there’s Meaning it’s That you really if we fastest which systems it most efficiencies they that from pretty any any to quickly, write faster. in or company, are these leads are they to value

they but where support, we like are quite those haven’t things just we customer organizing or around and areas creation. have processes other are ideas content yet gone There experimenting, with live then

content start things figure AI kind organize out learn not We to but prioritize radar how -- us. outline starting content analyze of analysis at works, use content, things than having what that’s working data, kind what which and is the other to works a project AI to and and are of you or content significant to data certainly better work for can scale and

I think letter, to alluded is I yet. one to the live learn coming marketplace to most in our we business these although, things, matches. our the demand database better use one out demand, this is, and to of the and maybe about nothing that’s make proprietary -- most When the learn I think, models of here exciting things figure in this how supply from the exciting have But is,

how for problem out models to matches will a -- big that I data making and and figure for business and better matches better think significant make are be that these that very scale the data has be analysis analysis yield valuable. you is built Anytime could

in for example. other think, The that is to the I thing I take really is, letter, important Angi, alluded

a we Service what call have Path. We Request

them process. Angi, It that Service is, a anywhere them in, ask job is we is details a ask people the we what him that user Path multistep their hard code, ask then and question, a it Request some about get On process. job a zip and kind for to multi-step through of come we

have users smarter right natural are UI to more comfortable us like people and now for creating a gift things, use this they conversational that What interactive. and are UI more those with where to to get the is Chatbots that getting from heaven which be doing are able be to is comfortably

actually live we that. It’s Angi. have So have yet. on But built already we not built at

will work fun. more something into to exciting be there We really that putting that are get building and

on need get them conversational Turo and lot using better and and same you for could the and think the done, that therefore, side. But professional thing UI that that thing that, on of Vivian they a from the same fun Care then, the really homeowner the make match data business. on And to and I side service can on impactful what be works better

Awesome. Joe. Thanks, appreciate I it.

Thank you. pleasure. My

Thank you, Operator.

Next question?

from Next comes Please Blackledge John question from Cowen. go ahead.

the Thank in trajectory in to second XQ? then just you the Great. frame the kind lease EBITDA DDM charge DDM, second could Thank of the quarter On way And you. and any clarify the the margin also then into rationale land half? And you. was there? impairment on purchase, what

Thanks, Sure. John.

lease sublease now So were with when any in two right shuttered. been York I we relates not That to in charge. floors the are That non-cash office business -- start for relates that one-time New on purposes space will the impairment. used and it’s Meredith’s have the They a bought market.

cost assumption. in We purchase fair the All made -- existing acquisition with sublease of and the the a cost associated our through time the those P&L. accounting, flows floors -- those associate floors valued had had at we or

to rental on given step needed in the take came have impairment the in Lower down substantial that to market conclusion Manhattan. we space further commercial We a the

the sublease business. so total no -- above And to is with million still -- $XX it $XX on space, we charge, of adjusted EBITDA but the impact the $XX That’s look million is real rest that depreciation. million will line

it’s guidance integration. especially look going or for think to back unlike we where you that don’t one-time of this year significant When our were impairment, adjusted reaffirming charges non-cash. We last the million since excluding -- DDM is $XXX to through expect that the adding $XXX our forward year when we at lease million, EBITDA other year

basis is, QX forward always revenue on remember the thing QX quarter the of a as margins. largest. consistently quarter of EBITDA is the the One and year, activity margin lowest to well lowest the On is year as

last adjusted What one-time with QX we we an like. talked letter, expect consistent the and about EBITDA phasing on basis, back looking and pretty expenses the forward be of we adding the in to QX but year

were margins the Last ad through to lot structure. we some QX, on QX. cost good year of inefficiencies going had we stack have integrations, both expect We in and in and our scale in profitability a

we our growth growth, and in QX, it where then assuming e-commerce traffic market expectations as the And are ad and given of stays just in revenue the is. both headed

expect have not are to anticipating our is EBITDA strong improvement, plus we goal XX% We to digital get there profitability adjusted and to margins.

So think that’s we how year. the about

not was built worried. in ago, be it going York a is the on With when don’t to Blackstone, land headquarters XX owned the that the estate lease related into parcel of firm. real land a IAC years by is specific just XX-year was to New property purchase ground market. respect a under was This to situation need a

That towards though -- we a payment level low in the ground soft and the we a commercial mid-XXXXs is right broader has Even fair make step-up since the now. been at real opening in fixed there headed estate value. market lease market that were large

last nearly the in You have XX our That through flowed P&L. can increases would in directly real imagine, step-up have -- market some the values. fair years, there significant since been estate would at value commercial have

and in could off the we a significant So increase our first ground for land us, buy rent. avoid

Secondly, hard just and extract flexibility the to other on greater either realizing our on form value sheet. it’s a to just optionality balance property in land the the lease, optionality around a building transactions from with or when and it combining it’s around increases us do a gives value building mortgage our of the much the assets ground

best market the a finally, rising then, broader estate markets disrupted capital the and market and interest tough it real knew was we rates think to buyer. due And were I for

the value our it opportunistic on basis. and context will felt But for we So we shareholders. think that is an good create

you. Thank

next question? Operator, John. Thanks,

Jefferies. go from from Please Brent question Thill ahead. Next comes

other, Joey, little and on And you more morning. on a Good there? was then that deeper just point? Turo emerging what’s segment understanding Thank into like around looks profitability Care you. there going and dive why question it could at in this the

let Chris customer perfect a and Sure. between. on disaggregated Turo and is add Turo will and great that delivering is supply will a ask first for business marketplace demand with on It do a I in a bit I IT. business experience Care disaggregated in Care. is

model the make invested a can is an economic was prove the and -- works, they to that trust, they filed insurance you first things between is financials can can and work It And the you in in when that equation work. S-X. because and it equation and question that other make see their it with we

scale It where product, and one the it is -- is not just these businesses improves a of the price.

more it better the get and is there, the get better people host for that it for course, is of hosts So on more on the that there, the guests.

to And have the took -- of the kinds we those I you and with leader category and that to really continue business opportunity. -- good a and I lead and expect you dynamics the more significant know know expand you to are they opportunity that when bad, see and a you

really that when more -- other they of. potential to own they at attractive and and attractive the so to am and that’s that that’s market be I really I a think the could we play want share, share in that look business also their markets in I I think, the that have they some gained the and market size play of market way

Haddad, guest and mean, team. customer product the to management the user bone I And the an it’s he person is and the experience. avid improve constantly an CEO of that just business trying lastly, product host of Andre is exceptional to a

who the that excited. And very And gets exciting. and to pretty to a that, time do he’s when for It to long see for that adds someone story we continue wants us. pretty gets also that

every So we add opportunity. look took that and the it’s a own business we we more, really saw opportunity feature for in when to that

things marketplace work story. bit better leader. a It’s also and business to cost is very little It’s Care, a In also Care doing small the terms get and a the It’s of what’s moving a happening just every on there. incremental is much on to basic revenue quarter. back category

yet a the had breakthrough huge haven’t product. We on

and We we product. on a needed like haven’t huge would breakthrough

experience little from We work. starting in will the haven’t been needed terms of a huge of though, out keep bit out new to new basic breakthrough and -- A there’s are we lots on to a roll starting product is the or there. roll innovating upgrades product then because some product, user

Yeah. And thanks, Brent.

of Mosaic the Just relative profitability, businesses mode. some Also of profit that an smaller emerging then are got you in investment lion’s think you and share of profitable to Care should and is other there. have as

over the basic the basis. first management good some as phased year In number that had drivers. There XXXX on that value said, focused a on execution we year-over-year and good initiatives of back quarter, really Joey out a some to big were in and cost during proliferated

and be basis, result, the bear quarter On season back-to-school. going and emerging TV, just a of lower profitability a into in go-forward into in as as mind, of we others QX you other should invest to summer and ahead Care tends a for marketing,

And that’s employee QX some employee -- tax related profitable. in QX be income household leads to that to elements also

can QX gross So QX real then lower strength We scale state will margin in business, and continued drive. we good that we margins, there. the of QX and the like see be

solid, On to Care a of a Service. environment, Backup corporate return been to the tailwind Enterprise is has of what in office even spending basis, service revenue Enterprise the a utilization is tight

with leader we marketing, keep convert huge improving a opportunity market challenging. to including to there, online business said. And opportunities then expect forward pushing love the but as marketing through innovating to the off-line product slower been industry Joey funnels to and conversion, grower, and the has long-term Consumer a improve of some we been and And growth, see our top we as

good. So down put and our keep got head We just to feel we executing.

Thank you.

question? next Operator, Brent. Thanks,

from Please Helfstein comes go from question Oppenheimer. ahead. Next Jason

Thanks.

-- talked you two questions. So

like How and as brand How you about ad leaning other in this obviously thinking improving to second SEM timing? this impacting brand thoughts in you are properties. lower Is You just And then tough -- media, thinking retail better? about think do improving a you to do your talked highlighted a convincing you question, working a the SEM some conversion about Dotdash. already doing are advertiser about just are performance thinking into marketing convince that how marketing advertiser, market a And revenue? to more you that’s paid how maybe is Angi, with that, this performance which more about advertisers, right, act extent, on XXXX that they when them time Meredith are catalyst. to historical in of just

So broad thoughts on budgets how you Thanks. kind kind of effectively the retail Meredith Dotdash? of new get into what’s media now coming

Yeah. again, line because will both, the add don’t have One that, thing between spend thing a But folks performance lot you the one performs, to cover in. that, on where really return, more is Jason, machinations. requires harder brand is convince I and great and Chris the marketing it it marketing about on the

is The performance very marketing straightforward.

So as of works. you they intent as or to then works really can just have audience. it the little generally, as because to sample it scale get the And spend people much and of of

that’s straightforward. getting We units thing and that. pretty it on just So getting and sites really the there -- the the up is things big like there just

at is important. SEM conversion On really this Angi,

reversing years things on was focused So one that I to conversion decline. that two now and have in steady a been relatively I got the for decline of there close mean seeing the

margin did one capture can is, one so -- to we the we reversed first have do of the conversion. But doing the now start But and that make when the components stemmed we in that that capture margin. thing of sure we that is, decline and

have that. So now proven we

The can of I to One next spend is the and efficiency, step confident, reasonably highly we am search and across carefully scale and should can that at which do I components want find making engines. scaling. we the same a sure is the smartly couple -- you scale say, there’s confident the

make ecosystem that supply the And have to working rest the Angi of concert. in and get and all side got sure that you that to absorb the the we working to is second

and you off best the not are spend are sure that customer do the all so same. making the that the piece margin, channels the spend as is the you third trading you experience And have that that best prioritizing have

one to sell you that them sell can professional rather You lead. lead worse wants service -- do best lead, than buy a a want if to

things so the this that that surrounding technology are the or the that doing together. are or of the all works making optimized we sure building can So we technology deploying technology get

we That when a want of make will this that we sure the scale right that over we lot that optimize as to is to course and -- happen and get year. we this

So, margin first. again,

proven Do I of course think want scale add we to have begin this that we look happen will the and over now towards on? you year. that to anything

properties than categories. and performance Meredith all I scale our of for metrics, and just you the think to in Dotdash run real you target launching advantage in brand about on in now well, segments and where across can and data that’s DNA -- give that that’s to Joey are it through ad you is that looking campaign a ties can take easier path a this the massive trends, broader integration market talked program return and that product we Joey said together it much if Meredith new Dotdash the sell broad Dotdash the have the campaign management

In terms factors. was times of different sectors the in which verticals due of continues macro of finding a a overall as question, different ad market, to weakness be a to or strength bit your lot or story it

comps get is easier solid in pharma these travel is the good, expect pretty even has go. as back, a to is health, and you come we excellent, style, retail and of So really number it beauty

areas. And may show soft. been then you life have And streaming got signs of real weakness in technology, finance basis, on home a media, but has those year-over-year

kind to very good where choppy continue about So offerings portfolio our will we a market, through feel but of sit. manage our we and what’s

Chris. Thanks,

Thanks question. for your

Sheridan Next Sachs. Eric Please ahead. from question comes Goldman go from

questions. Two, I taking for could. the if so Thanks much

goals think the section striking short First, of continuing allocation going some of might prioritizing, about larger on on asset duration lot to around the sort priorities a and we little opportunities capital market capital versus talked four capitalizing laid you balance about right present mismatches balance follow-up, you is Joey, letter, from duration against themselves be the prices I’d get your that long to standpoint? of have back a going of the and invest of to the addressable or some Angi opportunities a what deeper businesses right policy forward. striking on those love of allocation how for a perspective maybe the then out capitalizing number bit two in your And

either of the SEM, you two or invest from experience four putting versus behind SEO. that you how towards frame areas at going incrementally the up first the and and higher levels the more As moving two first capital execution second is the pivot than much those initiatives Can forward services customer of problem? where think dynamic need towards Thanks. of about you to flow are you sustained cash

Yeah. Thanks, Eric. On don’t question. the that answer know asset to prices, I

are buy say -- to or it’s I trade We would trying like not we are that securities.

cleanup really possible. not very we that long the a that’s events guess, do time, that’s So a made something I of purchase about for some Chris in for and our land wheelhouse. sort and that talked

four value would that much made things way interest that more two and possible that other us, call us we ago, the that. for or could been attractive a in unlocks it bunch have or that a prices, so frankly, things for rates, like think than year years asset of was helpful a You and was years

attractively to at, or done particular we at are priced. think probably that them reasonable is are to we have premiums don’t looking we there that, that, in think, been there’s I transactions right as those look The to like be counter to But we securities. at public trading and now. many around companies companies companies not not are When talk companies, recently

seen that We happening. haven’t

that. We for appetite haven’t seen much

though lower, the even to So are don’t that comfortable reasonable don’t people public still think have -- have those prices been I I that to things. what gotten historical would selling the premiums think

for be asset. it to looking premium are a people relatively much, more think and much I attractive gets then less aggressive

take advantage things of trade relatively and of those buying or I attractive. sort or we can own MGM mean buying don’t where things require is premiums stock one stock the what of is own buying think is you its our things Turo’s stock with

I it So that sure question, the answers although, I hope am whether does. not first

we on the in As far to and more SEO and side I in there’s things and do think that’s year and on think The is rest doing execution. the do don’t the the investing we need to SEM cost what second most certainly of I customer be is there is, can those more investment revenue side. over in the the of are course do question. it going we as experience

speed build the that We technology team it think product that just need have to what need don’t really I to build all improve and right we and can once more can we the adding at -- think Can’t and product up. do build team that us we think it, to now improve. we what people

things that we get possible now quickly improve is just as tested that experience. as So the trying launched and to are doing customer right and things

homeowners we time will that certain off are time, But, do going again, they of happier and think revenue over more with us think for longer and be component over elements staying the and of is service we those ecosystem. to happier professionals a spending us that wherever lead with we will to turning good

All right.

Next question.

go Credit from Suisse. Please comes Ju Stephen question from Next ahead.

you. Thank

Joey, So, Angi. on the follow up wanted services line for I to

thought day-to-day So how be categories into the have think, you demand was that that make taking going around are difficult business back, overall pandemic step for is pandemic, scale opportunity geographies. And imbalance some the for now the advancements and you smaller, to thought now achieve is it come even were spent process of more basis. time now and operations a through that a supply we are certain able the impossible to I you there product before now always the and think and conversely, you here was there Thanks. previously Do what certain on the also on possible? a

it the I when. I say, future. of it bigger critical question, the I big And it part is parts Angi’s than smaller It who Yeah. component Thanks or is, Stephen. business a previously? it is of services believe -- guess in or a depends of But for which and Angi’s thought as absolutely will future. a just

the great is as consideration and the where lower a as we it the can can in is few that’s One, well, areas reasons. where which focused the areas, I And for customer service today, service experience. are well think a we where deliver we deliver

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question, Operator? Next

Ygal comes go question from Citigroup. Please from ahead. Next Arounian

Good Hey. guys. morning,

nearly Meredith, Is some you great fit? in the really consumer And from then and liquid there $X to the of a talked strength maybe you on you what’s a just strategic and letter on there, the and Meredith Can the spending. still integration where as of we talking integration how e-commerce the also the given billion little refresh source are else, in just time the or you if And interesting or Joey with integration MGM to more to the to think shares about still of of Dotdash the Just something kind result about benefits cash about get on weakness are spend term been around MGM or not plans potential the thinking come? assets about longer opportunity, here? it’s see, consumer bit that more the Thanks. working there? a is

Yeah. Thanks, Ygal.

was I e-commerce hard think DDM, was it that also question most hear, second -- but at said. to which the Chris

that’s that we of out happy investment worked very are obviously, terms MGM, how with In over look, time. and

category phenomenal in it’s competitively it’s capital the market, business, the Las phenomenal entertainment Vegas, a world which a primarily where that’s it’s management a of is team a phenomenal leader, winning sport of of It’s things all and happen clear there growing. MGM in there, participating that. all a to getting kinds every and is fun major it’s new very leader it’s getting It’s

also cash a thing -- a on where business very see out balance are all and the generated of they terms they we ownership cash the happy the put of is repurchases OpCo/PropCo our sheet worked thing has sheet yield great improves capital flow. great of has right now, now cash ton business right to in projects well other lot The the flow the which a share but the shareholder some continuing they and to repurchases, to free free also and such a increase, And cash on for generate share some that with like are us. stake see using smart balance healthy

think also is business the fundamentally I undervalued. still

really terms the can number You one, I on it at reflected, get at as free also the in cash in digital. flow terms aren’t of things -- MGM, all you but can shareholder, you it look a horizon what the in look for which of think

continues in at revenue interest to one well, meaningful to of XX% a terms terms a and MGM’s three growth digital three both pipeline profitability. one of of in meaningful digital a are in that players go and in players in of

has back in that There’s come Macau a meaningful come way. back and

Macau, add at or which of at completely with You and Vegas in in powerful pent-up in people happened more Las think what’s the happening longer, unleashing you held look money back now demand U.S. when a in is sort just of more look sort in for way what’s I U.S., more travel that when so you the is exciting in there. really

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We for There is letters. marketing last talked are And e-commerce about performance the at for Meredith. elements. Joey. is the services. performance on this goods marketing in two a few Thanks, other One key and

marketing has partners, services and back, Dotdash step context. content integrating or a into take or performance natively in So been excellent goods always really at the

quick searching or review Investopedia having there when relevant kitchen that a links funds article an a accounts information. for right in it’s of links So or having product to items savings money have variety market of someone’s the already

that sites lot the A, Meredith companies and of e-commerce part have brands links content. bringing highly key the those and execute tremendous having was the integrations to activities. But, of of of tools more germane The services a to combination

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continued across really e-commerce up increased said in there. for we on and goods we have the was a momentum basis DDM expect XX% month just sequentially So QX and year-over-year to over portfolio every

said, brokerage, will struggling. marketing there is we so the is and financial services, heavy good comps easier we they performance XXXX, are But insurance was, will cautiously crypto, as interest steadily which be predominantly declined are rate optimistic services they get have products only Those E-commerce for news -- the growth. ago. across for year markets some a -- drive products

bullish the grow But the on question? we it really lot Dotdash continuing approach to that marketing and to next a of bringing Thank very is Operator, performance are Meredith’s line you. side.

ahead. comes question Squali Truist. from go Next Please from Youssef

A questions. you. of Thank couple Great.

back Going back -- Angi. going Joe, to

years, made plus few a three to business from model two last pivots a the over have So perspective. we

Now to refocus maybe on LTV.

[ph] segment points sense looks more Can maybe share with you investors you. in guys Chris, profitable. have forward? revenues? what letter, are could it seems Going proof that, thought some get Just on less done pretty of intuitive it maybe well, seems confidence. that to it to I confidence but some the sustainability ultimately practically, customers that But, them that gives you guess, you drive testing through speak then, is the business whether more like you doing. emails roofing, acquired profitability very can Thank through give that a that of that doing like us fewer turned you trying what fewer going have to guys you sending the AB will And

second -- was on the Youssef, roofing. second question Was the

Yeah.

Yeah.

both. do will I Okay.

Okay.

whether yes, I the small profitability And roofing, it’s quarter sustainable, during on a It’s very business. in know. don’t

process. lot, from that lot smartest do learned the happy, here. to we we am I out what learned and have a roofing I probably to the in we think figure move with is, made have it got wasn’t we but it ever a

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seen have that. we So

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it And to be remains proven. And to so question that the get we is, growth? can

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price. I handful you will those of are a are give There more. which is, one more, And them.

one of aggregate what pros for reducing is on have actually the more pros. things generally that that we seen doing But we spending generally are So price the we price in are been have same. is

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great the that, like that’s for great for that thing And finding overall like are that a system. ecosystem we things just and improving things looking flywheel the and generally and like the for are time a

going we I to the yield is that confidence have for thing over So right things do do time. are lot doing doing business your I the what customers confidence absolute of in by have a and good

Thanks.

question. Thank Operator, and you, one last

Please question go ahead. Justin comes Patterson from Next KeyBanc. from

Perhaps you how just perhaps seeing cohort you build versus around satisfaction of has around Thank spending changed Great. comment differences with SP just Could and to them? a then old on and a are some bit Angi. new on retention talk final with little you. you. point this just Thank the

Sure.

think. About side fantastic with I important That’s second. focus about, greater think guess, a big improving rates, XX% retention, meaningfully QX. a will a is and to and been I steadily bad in debt which of one for where in have terms to on pros again, satisfaction of rates of And credit been than indicator were relative lead So, have the we year. stat I the us

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and year. the healthier other than to in will folks of books see network. time bigger a up folks will you up -- those other the that’s those make when that, And improving, smaller things overall call the will of a professionals make XX% that, ecosystem an over that of portion not and greater get and build we a the portion service And

generally the numbers, in to through I are area young challenged not numbers going am replacing go direction. the retention better specific but new that ones. specific should say, I more or older heading the they in churn ones, And ones, right are

up all the We wrap earnings you. you you a of now. good for Well, you. will joining and Thank wish thank day. call we Thank

Thanks, everybody.

today’s you concluded. presentation. attending now Thank for has conference The

may You disconnect. now