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Angi (ANGI)
NASDAQ:ANGI

Angi (ANGI) AI Stock Analysis

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Angi

(NASDAQ:ANGI)

59Neutral
Angi's overall score reflects a mixed financial performance with recent improvements, weighed down by a bearish technical outlook and uncertainties from recent corporate events. The company's valuation is reasonable, but the lack of a dividend yield and short-term revenue challenges temper the overall score.
Positive Factors
Financial Performance
Revenue of $268 million exceeded expectations by $14 million, and EBITDA margins were better than anticipated.
Strategic Moves
It's likely IAC will spin out Angi to IAC shareholders, which could have a net positive impact.
User Experience
The user experience is expected to be substantially better after transitioning to the new opt-in platform, driving higher conversion and usage rates.
Negative Factors
Growth Challenges
Angi's turnaround continues to take longer than expected with its return to growth pushed to 2026.
Market Reaction
Shares closed down ~26% following the earnings release due to softer-than-expected top-line outlook and similar revenue declines expected in early 2025.
Revenue Guidance
The initial 1Q guide was softer than expected, which may lead to a 2-3% drop in consensus revenue.

Angi (ANGI) vs. S&P 500 (SPY)

Angi Business Overview & Revenue Model

Company DescriptionAngi Inc. connects home service professionals with consumers in the United States and internationally. Its Angi Ads business, which connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing, and payment services. The company also owns and operates Angi Leads digital marketplace service that connects consumers with service professionals for home repair, maintenance, and improvement projects; offers consumers with tools and resources to find local, pre-screened, and customer-rated service professionals, as well as online appointment booking; and connects consumers with service professionals by telephone, and home services-related resources. In addition, it operates Handy, a platform for household services, primarily cleaning and handyman services; Angi Roofing, which provides roof replacement and repair services; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder, and Instapro names. As of December 31, 2021, it had a network of approximately 206,000 transacting service professionals; and approximately 38,000 advertising service professionals. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. is a subsidiary of IAC/InterActiveCorp.
How the Company Makes MoneyAngi makes money primarily through its service professional membership fees, advertising, and lead generation services. Service professionals pay for membership to gain access to Angi's vast consumer base, which can lead to increased job opportunities. Additionally, Angi generates revenue by providing service professionals with leads, which are potential customers looking for specific services. The company also earns money through advertising by offering promotional services to businesses that wish to increase their visibility on the platform. Significant partnerships with other service providers and platforms can enhance Angi's revenue streams by expanding its service offerings and reach.

Angi Key Performance Indicators (KPIs)

Any
Any
Service Requests
Service Requests
Counts the number of service requests made on the platform, reflecting user demand and the platform's ability to attract and engage customers.
Chart InsightsAngi's service requests have seen a notable decline since 2023, with a sharp drop in 2024. Despite a strategic overhaul leading to positive cash flow, the earnings call indicates challenges in revenue growth due to market disruptions and reduced third-party service requests. While Angi is on a path to recovery with reduced CapEx, the short-term outlook remains cautious, with revenue expected to fall significantly in Q1 2025. Investors should watch for improvements in core operations and potential new growth opportunities as Angi navigates these challenges.
Data provided by:Main Street Data

Angi Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.19B1.36B1.89B1.69B1.47B
Gross Profit
1.13B1.30B1.45B1.36B1.29B
EBIT
21.89M-26.50M-100.30M-76.51M-5.15M
EBITDA
128.90M93.49M16.85M4.67M90.37M
Net Income Common Stockholders
36.00M-40.94M-127.98M-70.49M-4.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
416.43M364.04M321.15M428.14M862.70M
Total Assets
1.83B1.86B1.91B2.01B2.37B
Total Debt
509.66M565.39M512.19M494.55M712.28M
Net Debt
93.23M201.35M191.04M66.42M-100.43M
Total Liabilities
767.93M811.71M856.40M864.61M1.06B
Stockholders Equity
1.06B1.04B1.05B1.13B1.27B
Cash FlowFree Cash Flow
105.45M57.06M-89.28M-64.01M135.93M
Operating Cash Flow
155.94M104.84M27.07M6.21M188.42M
Investing Cash Flow
-50.41M-46.23M-116.09M-45.07M-103.95M
Financing Cash Flow
-53.76M-16.98M-17.23M-345.17M337.05M

Angi Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.25
Price Trends
50DMA
14.18
Positive
100DMA
15.81
Negative
200DMA
19.83
Negative
Market Momentum
MACD
-0.46
Negative
RSI
64.14
Neutral
STOCH
37.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANGI, the sentiment is Positive. The current price of 11.25 is below the 20-day moving average (MA) of 12.19, below the 50-day MA of 14.18, and below the 200-day MA of 19.83, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANGI.

Angi Risk Analysis

Angi disclosed 50 risk factors in its most recent earnings report. Angi reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Angi Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$838.11M22.5732.17%113.43%
76
Outperform
$2.23B18.1017.79%5.61%37.61%
59
Neutral
$13.74B7.33-2.74%3.82%2.18%-37.91%
59
Neutral
$539.44M15.815.05%-17.69%
59
Neutral
$359.76M25.25-1.00%8.80%-91.33%
51
Neutral
$673.27M35.54-9999.00%-4.34%20.50%
46
Neutral
$575.13M-19.38%13.27%34.93%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ANGI
Angi
15.15
-10.25
-40.35%
GRPN
Groupon
16.92
6.19
57.69%
YELP
Yelp
35.53
-3.70
-9.43%
EVER
EverQuote
22.90
-0.92
-3.86%
SEAT
Vivid Seats
1.76
-3.59
-67.10%
KIND
Nextdoor Holdings
1.51
-0.95
-38.62%

Angi Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in customer satisfaction and pro engagement metrics, alongside strong cost efficiency and marketing performance. However, revenue was negatively impacted by the implementation of homeowner choice and macroeconomic factors, with additional challenges in international markets. The company anticipates a path back to growth in 2026, supported by strategic initiatives and market conditions.
Q1-2025 Updates
Positive Updates
Improvement in Homeowner Net Promoter Score
Implemented homeowner choice in January, resulting in a significant improvement in homeowner Net Promoter Score, moving from below negative 30 to near positive within two years.
Pro Win Rate Increase
Pro win rate, the percentage of time a pro wins a job on a lead they pay for, jumped 10% after the homeowner choice implementation.
Cost Efficiency and Profit Growth
Reduced overhead by $100 million compared to 2022, while maintaining the level of fixed cost investment needed for growth.
Significant Improvement in Customer Retention
Retention for base cohort pros is up 8%, and retention for pros acquired in the last 12 months is up 16%.
Strong Paid Marketing Performance
Solid growth in SCM acquisition and success in display networks and META's ecosystem, contributing to improved proprietary lead growth.
Negative Updates
Revenue Decline Due to Homeowner Choice Implementation
First quarter revenue drop attributed to homeowner choice affecting lead volume, with a 33% and 57% step-down in network service requests and leads, respectively.
International Revenue Challenges
Decline in international revenue due to changes in the Canadian business model and regulatory impacts in Europe, including a 5% to 8% network impact due to ID checks.
Macroeconomic Headwinds Impacting Homeowner Volume
Modest bump down in homeowner volume and a mix down in job size, affecting revenue by 3 to 5 percentage points.
Company Guidance
During the Angi First Quarter 2025 Earnings Conference Call, several key metrics and strategic shifts were discussed. The implementation of "homeowner choice" led to a notable improvement in homeowner satisfaction, as reflected in the homeowner Net Promoter Score (NPS), which moved from below negative 30 two years ago to nearly positive. Additionally, the "pro win rate," a metric indicating the percentage of leads that result in a job for professionals, increased by 10% after the implementation. The changes in lead management, particularly the shift from automatched leads to homeowner-selected leads, impacted financial performance, contributing to a 33% decline in network service requests and a 57% drop in network leads. Despite these short-term revenue declines, Angi anticipates revenue growth in 2026, driven by an increase in revenue per lead and growth in proprietary lead volume. The company also highlighted a shift to monthly active pro metrics and improvements in pro retention, with base cohort retention rising by 8% and newly acquired pros' activity rates improving by approximately 16%. Overall, the call emphasized a strategic focus on enhancing customer experience and operational efficiency to drive long-term growth.

Angi Corporate Events

Stock SplitStock BuybackBusiness Operations and StrategyFinancial Disclosures
Angi Reports Q1 2025 Results with Strategic Shifts
Neutral
May 6, 2025

On May 6, 2025, Angi Inc. reported its first quarter results as an independent company, highlighting a 19% decline in revenue to $245.9 million compared to the previous year. Despite the revenue drop, operating income rose significantly to $20 million, and the company implemented strategic changes such as a new sales organization and homeowner choice model. Angi also announced a new 5 million share repurchase authorization and completed a 1-for-10 reverse stock split in March 2025. The company introduced new metrics to better reflect its core activities and customer behaviors, indicating a shift towards proprietary channels and a focus on maintaining a robust Pro network.

Spark’s Take on ANGI Stock

According to Spark, TipRanks’ AI Analyst, ANGI is a Neutral.

Angi’s overall score reflects a mixed financial performance with recent improvements, weighed down by a bearish technical outlook and uncertainties from recent corporate events. The company’s valuation is reasonable, but the lack of a dividend yield and short-term revenue challenges temper the overall score.

To see Spark’s full report on ANGI stock, click here.

Executive/Board Changes
Angi Announces Executive Leadership Changes
Neutral
Feb 18, 2025

On February 18, 2025, Angi Inc. announced significant leadership changes impacting its executive team. Chief Technology Officer Kulesh Shanmugasundaram will resign effective March 31, 2025, with a transition agreement ensuring a smooth handover. David Fleischman will transition from Chief Product Officer to Chief Experience Officer, and Kris Boon will be appointed as the new Chief Product Officer, effective March 31, 2025. These changes are aimed at strengthening the company’s leadership as it continues to adapt to the evolving home services market.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Angi Inc. Revenue Falls as IAC Prepares Spin-Off
Negative
Feb 11, 2025

Angi Inc. reported a decrease in revenue by 11% year-over-year to $267.9 million for Q4 2024, with operating income dropping 72% to $2 million and Adjusted EBITDA falling 23% to $32 million. These declines were primarily due to reduced consumer marketing expenses and fewer service requests, despite a growth in international revenue and an increase in Ads and Leads operating income by 21%. Angi is set to be spun off by IAC, with the transaction expected to close in the first half of 2025, and Joey Levin has been appointed as Executive Chairman, marking a significant shift in the company’s strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.