ANGI Homeservices(US:ANGI)2024-02-28 16:00Company Overview - Angi Inc. connected approximately 196,000 transacting service professionals with consumers for about 23 million projects in 2023[104]. - The company operates in three segments: Ads and Leads, Services, and International, with multiple brands including Angi, HomeAdvisor, and Handy[104]. - The company completed the sale of its wholly-owned subsidiary, Total Home Roofing, LLC, on November 1, 2023, reflecting it as a discontinued operation[256]. Revenue and Financial Performance - Total revenue for the year ended December 31, 2023, decreased by $405.6 million, or 23%, compared to 2022, totaling $1,358.7 million[128]. - Ads and Leads revenue decreased by $157.2 million, or 12%, primarily due to an 18% decline in consumer connection revenue[128]. - Services revenue decreased by $263.2 million, or 69%, largely due to a shift away from complex and less profitable offerings[123]. - International revenue increased by $14.8 million, or 15%, driven by a larger service professional network and higher revenue per service professional[124]. - The company reported a net cash increase of $42,165,000 for the year, compared to a decrease of $107,349,000 in the previous year[251]. - The net loss attributable to Angi Inc. shareholders for 2023 was $40.9 million, compared to a loss of $128.5 million in 2022[165]. - Total operating losses decreased by $49.1 million, or 65%, for fiscal year 2023 compared to fiscal year 2022[148]. Adjusted EBITDA and Profitability - Adjusted EBITDA is a key non-GAAP financial measure used to assess the company's financial performance[116]. - Total Adjusted EBITDA for 2023 was $118.5 million, an increase of 78% compared to $66.5 million in 2022[165]. - Adjusted EBITDA for Ads and Leads decreased by $21.6 million, or 13%, to $147.4 million, driven by lower gross profit due to decreased revenue[150]. - Services Adjusted EBITDA improved by $60.2 million, from a loss of $52.1 million to income of $8.1 million, attributed to pricing and fulfillment optimization efforts[151]. - Adjusted EBITDA as a percentage of revenue increased to 9% in 2023, up from 4% in 2022[150]. Expenses and Cost Management - Selling and marketing expenses decreased by $125.1 million, or 14%, with a notable reduction in advertising expenses[130]. - The gross margin improved to 95% in 2023, up from 81% in 2022, despite the decrease in gross profit[128]. - The company plans to continue optimizing its cost structure and improving marketing efficiency to enhance profitability moving forward[151]. - Product development expense increased by $22.7 million, or 31%, contrasting with a $67.7 million decrease in capital expenditures[142]. Cash Flow and Liquidity - Net cash provided by operating activities attributable to continuing operations was $94.2 million in 2023, compared to $46.4 million in 2022, marking a significant increase of 102.0%[172]. - Total cash and cash equivalents increased to $364.0 million as of December 31, 2023, up from $321.2 million in 2022, representing a 13.3% increase[171]. - The company expects to maintain sufficient liquidity to fund operations for the next twelve months, supported by existing cash and expected positive cash flows[192]. Assets and Liabilities - The company had $496.0 million in total long-term debt as of December 31, 2023, slightly up from $495.3 million in 2022[171]. - The allowance for credit losses is $24.7 million as of December 31, 2023, down from $38.8 million in 2022, with provisions for credit losses of $79.4 million in 2023 compared to $104.3 million in 2022[195]. - The carrying value of goodwill is $886.0 million as of December 31, 2023, an increase from $882.9 million in 2022, while indefinite-lived intangible assets are valued at $170.8 million in 2023, slightly up from $170.1 million in 2022[199]. Tax and Compliance - The company recorded an income tax provision of $1.8 million in 2023, despite pre-tax losses, mainly due to stock-based awards and nondeductible expenses[160]. - The income tax provision has been computed on a standalone basis, reflecting the Company's share of IAC's consolidated tax liabilities[301]. Market and Operational Insights - The company continues to focus on expanding its digital platforms and enhancing user engagement through various marketing strategies[106]. - Future developments related to COVID-19 and other external factors remain uncertain and may impact the company's financial condition and operations[119]. - The company has made substantial investments in digital and traditional advertising to promote its products and services[106].