Angi Inc. Reports $1.185 Billion Revenue for Fiscal Year 2024, Operating Income Improves

Angi Inc. reported a total revenue of $1.185 billion for the fiscal year ending December 31, 2024, a decrease of 13% from $1.359 billion in 2023. The decline was primarily driven by a 14% drop in Ads and Leads revenue, which fell to $963 million, largely due to a significant reduction in consumer connection revenue, which decreased by 22% to $607 million. The company also experienced a 21% decline in Services revenue, totaling $94 million, attributed to fewer service requests. In contrast, international revenue increased by 11% to $129 million, reflecting growth in the professional network and higher revenue per professional.

The company's operating income improved significantly, reaching $21.9 million compared to an operating loss of $26.5 million in the previous year. This turnaround was supported by a reduction in selling and marketing expenses, which decreased by 21% to $602 million, and a drop in general and administrative expenses by 11% to $320 million. Adjusted EBITDA also saw a notable increase of 23% to $145.3 million, driven by improved marketing efficiencies and lower operating costs.

Angi's user engagement metrics showed a decline, with service requests down 26% to 17.2 million and transacting professionals decreasing by 14% to approximately 168,000. The company attributed these changes to ongoing user experience enhancements and a reduction in sales and marketing expenditures. Despite these challenges, the company maintained a strong cash position, ending the year with $416.4 million in cash and cash equivalents, up from $364 million in 2023.

Strategically, Angi completed the sale of its subsidiary Total Home Roofing, which is reflected as a discontinued operation in its financial statements. Additionally, IAC Inc., Angi's controlling shareholder, announced plans to spin off its full stake in the company, expected to be completed by March 31, 2025. This spin-off aims to provide Angi with greater operational independence and flexibility in capital allocation.

Looking ahead, Angi anticipates that the spin-off will enable it to better allocate financial resources and attract new investors. However, the completion of the spin-off is subject to customary conditions and final approval from IAC's board of directors. The company also plans to increase its capital expenditures in 2025 by approximately 15% to 25%, primarily for investments in capitalized software to support its products and services.