On Emerging & Other, it’s a different story. Last year, that business in ’23 generated $41.8 million of adjusted EBITDA. We disclosed a month ago that we signed a definitive agreement to sell our Mosaic subsidiary for $160 million in cash. That is expected to close very shortly, that transaction. Last year, and this is going to be in our disclosure, Mosaic generated about $37 million of revenue per quarter and averaged about $5 million of EBITDA. So think of it as $20 million of the $41.8 million of EBITDA is being sold closing this month. Additionally, and this is in the guidance section in Joey’s letter, we disclosed that in Q1 of this year, we expect to incur about $20 million of transaction expenses associated with that sale. That’s obviously nonrecurring, but we’ll hit our definition of adjusted EBITDA in the first quarter and for the year.
So the Emerging & Other guidance of zero to 20, half of that is nonrecurring – is brought down – or is impacted by $40 million related to Mosaic. Half of that is nonrecurring transaction expenses, and then half of that is run rate profitability that we sold for $160 million. So on an ongoing basis, I think of it as a $20 million to $40 million adjusted EBITDA segment, and the bulk of that would be CARE. Does that help, Jason?
Jason Helfstein: Yes. Thank you very much.
Christopher Halpin: Okay. Thank you. Drew, next question?
Operator: The next question comes from Justin Patterson with KeyBanc. Please go ahead.
Justin Patterson: Great. Thank you very much and good morning. Just two on Angi. You’ve kind of alluded to it a little bit so far, but would love to hear just what the top two or three priorities are for the business in 2024, which is to keep executing on the foundation that you’ve built. And then just around international, you’ve mentioned taking some of the learnings from abroad and bringing it domestically into the Angi product. Could you elaborate a little more just what that means and how long that could potentially play out? Thank you.
Joey Levin: Yes. So I’d say driving free and repeat traffic through better user experiences. Obviously, that has big impacts on our business, on our P&L, and it’s something that everybody in the Angi organization is thinking about. Second, and again I’m a broken record on this, but we’ll keep going to help with the active SP network. That’s – the retention gains we’ve seen, holding those, growing those, that making sure pros are active and spending more and getting wins for that spend. That’s better targeting within the sales to reach our SP network. And you can see that we’ve been delivering that through better – through a smaller sales force, better targeted. But again, that all speaks to the health of the active SP network.
And the other one, but then, again, that same framework is starting to drive online self-enroll for SPs. And probably the third would be unit economics, which is certainly partially number one and number two in terms of demand and supply. But it’s also driving things like conversion. We’ve had some big wins recently on conversion, but we still, I think, have a long way to go in terms of upside on driving conversion. We went through a period where conversion across most of our channels leaked a little bit, and I think we can get a lot of that back. And so, we’re very focused on driving conversion in ways that are a win-win for users in our platform. And when that comes through, that moves the unit economics. So those are the big three. In terms of international, one is – well, first, you saw Jeff Kip, who was running the international business.
He did a great job getting that all of Europe onto a common platform and winning user experience. Now he’s in the U.S. And some others from his team are now also helping out in the U.S. We brought the Head of Performance Marketing in Europe and now running Performance Marketing in the U.S. And the product and marketing leadership from Europe and the U.S. are now much more closely intertwined and interacting. The other thing, and this has been a theme for us for a while, is the – and maybe it was easier to do this in Europe quietly than it is sort of in the U.S. with the public disclosure. But we did a lot to optimize user experience in Europe over short-term monetization for long-term benefit. And that took a while to come through, but it has delivered in a meaningful way.
And those trade-offs are trade-offs that we’ve been making in the U.S., and we expect to continue making in the U.S. And then the last one, is — and this is very, very early for us. But the European business is almost entirely online self-enroll, as opposed to a phone sales force. And the – sorry, Europe is almost entirely online self-enroll, and U.S. is basically the inverse. So, we’re working on a lot of the learnings there, to see how we can drive more online self-enroll in the U.S. And rely less on phone sales, and really focus the phone sales on the opportunities that warrant it.
Christopher Halpin: Thank you. Operator, next question?
Operator: The next question comes from Dan Kurnos with The Benchmark Company. Please go ahead.
Daniel Kurnos: Great, thanks. Good morning.. Joey, just two quick follow-ups on Angi. You’ve been talking about it a lot this morning. I guess, just how do you balance the consumer and the user and SP experience, if you start going back towards showing multiple SPs per service request? And to follow-up from Brian’s question, just are there any verticals where you’ve started to make a change or you’re starting to see a return to SR growth? Just help us think about how you’re attacking that a little bit more. And then, Chris, just on Dotdash on the margins, appreciate the color for the year. You’ve taken a lot of cost out of that business already. So I get sort of the cadence for ’24, but what are we waiting for? Is it a revenue level like you talked about in the past? Or do we need to just see premium continue to stay strong this year to kind of get that real sort of vertical inflection that, I think we’re still waiting for on Dotdash margins? Thanks.
