Angi Inc. (NASDAQ:ANGI) Q3 2023 Earnings Call Transcript

And so there is a question of rate, but there’s also transactions per service request. And so one of the things that’s happening as we pair back marketing and demand more out of existing channels, both in terms of return and in terms of quality, we get more except for service requests. And same is true as we’re getting service professionals that are more engaged. They’re engaging with more service requests. And therefore, both of those things lead to driving more except for service requests. And so revenue per SR can improve, even if each individual transaction is worth less. I hope that answers the question.

Kunal Madhukar: Sure. Okay. Go ahead.

Joey Levin: No, go ahead.

Kunal Madhukar: No, just wanted to follow it up in terms of the marketing costs. So the marketing costs did not decline as much. So how does that impact the LTV to CAC dynamic within your plans?

Joey Levin: Yes. LTV to CAC is heading in the right direction, and that is the transactions that we are retaining are more valuable. There are some short-term things that are in there, which Chris and I referenced earlier, which is the channel that we talked about in Q2, where we made some meaningful adjustments there in the name of quality and that’s taking a longer time to ramp back up. And so that has some short-term impact in the economics. But generally, LTV to CAC is heading in the right direction.

Christopher Halpin: Yes. And we also had some brand specifically TV ramp up year-over-year in that number you’re calculating. So I think we feel good about the trends and would just say, the metrics that you’re backing into are – wouldn’t be given the full picture. And then on the Dotdash question, did we answer where you were coming from?

Kunal Madhukar: Yes. Thank you.

Joey Levin: Perfect. Just to add one more on that, just to make it clear. You can see monetized transactions per SR going up. We talked about that in the letter. That’s been a trend and that is a counter to revenue per monetized transaction.

Christopher Halpin: Right. Well, thank you, everyone. Thank you, operator. Thank you, everyone, for your questions, and have a great morning.

Joey Levin: Thank you, all. Bye-bye.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.