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Angi Earnings Reaction
Angi ($ANGI) reported earnings yesterday and had their call today. The stock has sold off over ~20% as of this writing so let’s dive into the earnings report. Let’s first go over the items the market was not pleased with.
Service requests were down 5% YoY and Angi reported weak growth in January. Management blamed Omnicron as “we saw a pretty significant uptick in Omicron call offs, customer call offs, pro call offs, we saw an 8x increase in January versus a normalized number for the year”

The other major concern is the deceleration in Angi Services growth. Angi services were growing well over 100% in earlier months but decelerated to 91% in January. This deceleration is troubling for investors and investors should continue to monitor.

On the revenue side management guided “We obviously rebranded the business in March of last year. We will have easier comps after that, particularly in the ads leads business so that will be a natural tailwind.” They also guided that “adjusted EBITDA is similar to last year.”

Management did have two interesting comments on their moat. In terms of matching supply and demand, “we do some modeling to make sure that we match consumer demand with pro supply… the rate at which we fulfill it continues to go up…It gets harder as you add more categories as you cover more geographies”
In regards to partnerships “Walmart is the first we expect to rollout into other retailers for context.” These comments show the complexity of their business and the scale needed to succeed. This is very tough for another firm to come in and replicate.

My next substack article will be on ANGI. Subscribe here to get it in your inbox https://youngmoneycap.substack.com/?r=z9r6j
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