IAC Inc. (NASDAQ:IAC) Q4 2022 Earnings Call Transcript

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As you mentioned, efficiency on the sales side, it’s bringing the right pros in. So bringing in pros for whom the product is more likely to work, you can do that by matching supply and demand better, you can do that by matching pricing better, you can do that by matching expectations better. Some folks come in with the wrong expectations. And we got to make sure everyone comes in with the right expectations and putting in the systems in place to do that is important to us and something that we’re focused on. So I do see real opportunity for improvement in some parts of the business some certain products, we see that number much higher than 25%. So it’s more like 35%. And we know what the things are that are working there. So we can try and get to that.

And that’s our big focus of ours. And I do think a real opportunity for improvement.

Christopher Halpin: Thank you. Operator, next question.

Operator: Our next question comes from Brian Fitzgerald at Wells Fargo. Please go ahead.

Brian Fitzgerald : Thanks, guys. From the shareholder letter, the decreased focus on service request, sounds like you may be given up some near term revenue in exchange for those SEM SEO benefits. I think you can tell us about the expected scale or timing lag effects associated with that. And maybe more broadly, any additional color on tweaks or changes to your SEM SEO strategy in general?

Joseph Levin: Sure, look, I think you’re right that we will make or we are open to making those trade offs, not clear that that will be a trade off. But if it is, we are open to it. When I say that, I mean the directory experience. I think what we want is to be able to service the customers throughout their entire journey. And some customers are not ready to transact the moment they come to Angi. They’re just looking to do research and the directory or elements of the directory can help with that. I think our role is to take those customers and start to build the relationship with them, bring them into the ecosystem, as opposed to trying to get them to transact in that first moment of that first session. I view that as long term positive to lifetime value and revenue retention.

Whether it’s a trade off or not on revenue, we don’t really know. That product will launch or exit a relaunch sometime this year. And it also has the potential to increase traffic or even maybe meaningfully increase traffic. And if we do those things that that should balance out. There was another component to your question, which SEO and SEM and the things around it. And so we’ve had since I got their teams focused entirely on SEO and focused entirely on SEM. And sorry, many, much of that existed before I got there, but the level of focus in the level of resources there has expanded. And I’d say that given our focus on this area where I think our focus was somewhat distracted previously, we are finding real results. So just as an example, we said to the SEM team, and we have some great people working on SEM now, we said there’s a bit of decline in a particular area.

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