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Angi (ANGI)
NASDAQ:ANGI

Angi (ANGI) AI Stock Analysis

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Angi

(NASDAQ:ANGI)

Rating:68Neutral
Price Target:
$18.50
▲(19.82%Upside)
Angi's overall stock score of 68 reflects a company with strong cost management and strategic changes aimed at long-term growth, despite current revenue challenges. Technical indicators suggest a neutral sentiment, while valuation is reasonable. The earnings call provided a positive outlook for future growth, emphasizing improved customer satisfaction and operational efficiency.
Positive Factors
Financial Performance
Angi's revenue of $268 million exceeded expectations by $14 million, and EBITDA margins were better than anticipated.
Strategic Positioning
Angi remains well-positioned to return to growth as headwinds ease and begin to shift to tailwinds.
Negative Factors
Revenue Decline
Revenue for Ads & Leads declined 13% year-over-year, driven by ongoing user-experience enhancements and lower consumer marketing and professional acquisition expenses.
Revenue Guidance
The initial 1Q guide was softer than expected, which may lead to a 2-3% drop in consensus revenue.

Angi (ANGI) vs. SPDR S&P 500 ETF (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 a combination of service professional subscription fees, lead generation fees, and advertising revenue. Service professionals pay subscription fees to gain access to the platform and connect with potential customers. Additionally, Angi generates revenue by charging service providers for leads that match their specified criteria, allowing them to directly reach interested homeowners. The company also earns money through advertising by offering targeted ad placements on its platform to service professionals and other businesses seeking visibility among its user base. Strategic partnerships with other companies in the home improvement and services sectors further enhance its revenue streams.

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 been on a declining trend since 2023, exacerbated by the implementation of 'homeowner choice,' which significantly reduced network service requests by 33%. Despite this, the company is focusing on improving customer satisfaction and pro engagement, with notable gains in Net Promoter Score and pro win rates. These strategic shifts, while impacting short-term revenue, are expected to foster long-term growth, with Angi anticipating a rebound in 2026 driven by increased revenue per lead and proprietary lead volume.
Data provided by:Main Street Data

Angi Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 37.24%|
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 Financial Statement Overview

Summary
Angi's financials show effective cost management with a strong gross profit margin, but face challenges in revenue growth and profitability. The balance sheet is solid with moderate leverage, and cash flow is well-managed relative to income, indicating financial resilience. However, the decline in revenue and low net profit margin are concerns.
Income Statement
62
Positive
Angi's income statement reveals mixed performance. The TTM gross profit margin is robust at approximately 94.8%, indicating effective cost management. However, the net profit margin of about 4.7% suggests relatively low profitability. Revenue has declined in recent years, with a significant drop from 2022 to 2023, indicating challenges in growth. Despite a positive EBIT margin of 3.5% for the TTM, it remains relatively low, hinting at constrained operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a stable equity base with a debt-to-equity ratio of approximately 0.47 in the TTM period, indicating moderate leverage. The equity ratio stands at around 58.1%, reflecting a strong equity position. Return on Equity (ROE) for the TTM is modest at about 5%, which indicates room for improvement in generating profits from shareholders' equity.
Cash Flow
68
Positive
Cash flow metrics depict a moderate picture. Free cash flow has shown growth in recent periods, but the free cash flow to net income ratio of approximately 1.52 in the TTM highlights better cash generation relative to net income. The operating cash flow to net income ratio of about 2.48 for the TTM suggests efficient cash flow management, despite fluctuations in net income.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.13B1.19B1.36B1.89B1.69B1.47B
Gross Profit
1.07B1.13B1.30B1.45B1.36B1.29B
EBIT
39.17M21.89M-26.50M-100.30M-76.51M-5.15M
EBITDA
128.06M128.90M93.49M16.85M4.67M90.37M
Net Income Common Stockholders
52.74M36.00M-40.94M-127.98M-70.49M-4.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
386.56M416.43M364.04M321.15M428.14M862.70M
Total Assets
1.81B1.83B1.86B1.91B2.01B2.37B
Total Debt
497.04M509.66M565.39M512.19M494.55M712.28M
Net Debt
110.48M93.23M201.35M191.04M66.42M-100.43M
Total Liabilities
756.49M767.93M811.71M856.40M864.61M1.06B
Stockholders Equity
1.05B1.06B1.04B1.05B1.13B1.27B
Cash FlowFree Cash Flow
80.26M105.45M57.06M-89.28M-64.01M135.93M
Operating Cash Flow
130.53M155.94M104.84M27.07M6.21M188.42M
Investing Cash Flow
-50.12M-50.49M-46.23M-116.09M-45.07M-103.95M
Financing Cash Flow
-58.03M-53.76M-16.98M-17.23M-345.17M337.05M

Angi Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.44
Price Trends
50DMA
14.27
Positive
100DMA
15.61
Negative
200DMA
18.82
Negative
Market Momentum
MACD
0.40
Positive
RSI
47.20
Neutral
STOCH
28.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANGI, the sentiment is Negative. The current price of 15.44 is below the 20-day moving average (MA) of 16.20, above the 50-day MA of 14.27, and below the 200-day MA of 18.82, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 28.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$891.62M23.9632.17%113.43%
71
Outperform
$2.26B17.0319.74%5.93%29.17%
68
Neutral
$740.92M14.805.05%-16.79%
61
Neutral
$14.55B5.81-3.99%6.41%2.71%-31.56%
52
Neutral
$1.35B35.54-90.27%-5.76%21.27%
51
Neutral
$368.87M25.25-1.00%0.82%-102.72%
47
Neutral
$581.54M-18.77%12.01%35.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ANGI
Angi
15.44
-4.66
-23.18%
GRPN
Groupon
33.89
18.61
121.79%
YELP
Yelp
35.41
-0.72
-1.99%
EVER
EverQuote
24.66
6.11
32.94%
SEAT
Vivid Seats
1.79
-3.64
-67.03%
KIND
Nextdoor Holdings
1.52
-1.04
-40.63%

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.