Angi Inc. (NASDAQ:ANGI) Q4 2022 Earnings Call Transcript

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And by the way, once the service request is complete, we ask another series of questions to drive the services business. You can imagine us showing that much earlier in the process, not pushing the customers for whom it’s relevant through the service request and sending them directly into a services experience and exposing that in the categories where we can deliver those less complex services, the lower average order value services, we can expose that actually more often and get more people to see that product and use that product. The most important thing in that area is just getting people to try. Because again, once they try it, and once they complete it, we know they’re really happy. We know they come back more often. We know they use the mobile app.

And the constraint on that is, kind of how we’re putting it and where we’re putting it. The other area is making it clear to customers that all these opportunities exist for them. I think we’ve confused that a little bit. I think we’ve shown, sort of too many things at once or not enough things at once. And I apologize for this sounding a little bit muddled because I don’t want to get into too much detail on the product, but we are capable of delivering the product that we know the homeowner wants. We just have to show them that clearly, show them that when they want it and not force the entire experience through one funnel and then on that more narrow set of customers deliver a somewhat .

Christopher Halpin : Okay. And yes, Joey said it, but on Dotdash Meredith, nothing that we’ve experienced so far undermines our belief in both the long-term profit scale and the business and cash flow generation. It’s obviously doing 931 million of digital revenue and 2022 disappointed us, part of that was the integration. If we got it done faster, it was probably too optimistic we could have driven our playbook and activities faster, but bigger share was just getting hit hard by the ad market, but as we grow revenue and particularly as we scale e-commerce and a lot of the high margin e-commerce integrations, which we’re seeing being proven out, by Neil and team, all of those combined with revenues will be highly accretive to profitability and we feel as good about the long-term margins there as we have it anymore.

Dan Kurnos: Awesome. Thanks guys.

Christopher Halpin: Thank you. Operator, next question.

Operator: Yes, sir. Our next question comes from Youssef Squali with Truist Securities. Please go ahead.

Youssef Squali: Great. Thank you. I have a question on Dotdash and maybe just a clarification on Angi. So, on Dotdash, obviously a lot happened since the acquisition happened. And I guess as you look beyond 2023 as the long-term growth potential of the business, is it just fair to assume that that business overall, and I’m just talking about the digital side of it, not the print, should grow generally in tandem with digital advertising? Historically you guys made the case that you should grow faster because of the content, because of a lack of exposure or two things like IDFA, etcetera. has that changed, just kind of how should we think about growth beyond just 2023 for that business and maybe drivers there? And then the clarification is around just the recognition of revenues going from gross to net.

Who is the merchant of record here? Because my understanding now is that you’re still getting paid by the customer and turn in and pay in service professional for some of these less complex services. Wouldn’t that imply that you may need to do it on the gross base? I’m just a little confused on that front if you can maybe clarify it? Thanks.

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