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$ANGI Earnings Review
$ANGI reported earnings after the bell yesterday. The earnings results were okay, but the guidance was extremely reassuring which is why the company is up over 20% today. It is important to note analysts had a good idea of what revenue was due to their monthly metrics.
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During the first quarter of 2022, revenue only grew 13%, but Angi services maintained their >100% growth rate. Angi Services is now running at a $450 million run rate. In order for this investment to work out, Angi will need to materially accelerate its revenue growth rate.
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Most concerning from their earnings report was the severe decline in underlying metrics. Service requests were down 13% and transacting service pros were down 4%. I believe Oisen had good reasons behind this decline.
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Oisen blamed tough comps from last year as Angi had a significant tailwind at this time due to macro effects. He also mentioned the lapping of the Angi rebrand. Both of these reasons make sense and should allow for revenue acceleration later this year.
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Oisen guided to revenue acceleration in the back half of the year. He stated, “we feel very good about organic growth and services accelerating”. While it has taken longer than many would’ve liked, the bull thesis of acceleration seems intact.
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Management also mentioned they hit peak investment for services in March. As they back off the investment, Services should be less of a drag and eventually turn profitable. It is reassuring to hear about their path to profitability.
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Would like to hear what others think about Angi and their earnings results.

My original Angi thesis can be viewed here
youngmoneycap.substack.com
Angi Risk/Reward is Worth It
Analyst: Young Money Capital

Joshua Simka's avatar
Nice recap on $ANGI! Looks like @zmo is building a position and has added this week

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