Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 07, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001705110 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38220 | |
Entity Registrant Name | ANGI HOMESERVICES INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-1204801 | |
Entity Address, Address Line One | 3601 Walnut Street | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80205 | |
City Area Code | 303 | |
Local Phone Number | 963-7200 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 | |
Trading Symbol | ANGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 74,149,518 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 421,756,247 | |
Class C Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 420,985 | $ 390,565 |
Accounts receivable, net of allowance and reserves of $27,991 and $20,293, respectively | 49,760 | 41,669 |
Other current assets | 63,598 | 67,759 |
Total current assets | 534,343 | 499,993 |
Capitalized software, leasehold improvements and equipment, net of accumulated depreciation and amortization | 104,261 | 103,361 |
Goodwill | 882,406 | 883,960 |
Intangible assets, net of accumulated amortization | 225,401 | 251,725 |
Other non-current assets | 178,980 | 182,572 |
TOTAL ASSETS | 1,925,391 | 1,921,611 |
LIABILITIES: | ||
Current portion of long-term debt | 13,750 | 13,750 |
Accounts payable | 44,600 | 25,987 |
Deferred revenue | 58,091 | 58,220 |
Accrued expenses and other current liabilities | 138,822 | 116,997 |
Total current liabilities | 255,263 | 214,954 |
Long-term debt, net | 225,336 | 231,946 |
Deferred income taxes | 1,891 | 3,441 |
Other long-term liabilities | 115,882 | 121,055 |
Redeemable noncontrolling interests | 25,093 | 26,663 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Additional paid-in capital | 1,387,618 | 1,357,075 |
Retained earnings | 19,741 | 16,032 |
Accumulated other comprehensive loss | (2,740) | (1,379) |
Treasury stock, 15,123 and 7,326 shares, respectively | (112,808) | (57,949) |
Total ANGI Homeservices Inc. shareholders' equity | 1,292,322 | 1,314,288 |
Noncontrolling interests | 9,604 | 9,264 |
Total shareholders' equity | 1,301,926 | 1,323,552 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,925,391 | 1,921,611 |
Class A common stock, $0.001 par value; authorized 2,000,000 shares; issued 89,076 and 87,007 shares, respectively, and outstanding 73,953 and 79,681, respectively | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | 89 | 87 |
Class B convertible common stock, $0.001 par value; authorized 1,500,000 shares; 421,757 and 421,570 shares issued and outstanding | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | 422 | 422 |
Class C common stock, $0.001 par value; authorized 1,500,000 shares; no shares issued and outstanding | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Allowance and reserves | $ 27,991 | $ 20,293 |
Treasury stock (shares) | 15,123,000 | 7,326,000 |
Class A Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (shares) | 89,076,000 | 87,007,000 |
Common stock outstanding (shares) | 73,953,000 | 79,681,000 |
Class B Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (shares) | 421,757,000 | 421,570,000 |
Common stock outstanding (shares) | 421,757,000 | 421,570,000 |
Class C Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (shares) | 0 | 0 |
Common stock outstanding (shares) | 0 | 0 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue | $ 375,061 | $ 343,896 | $ 718,711 | $ 647,339 |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | 41,042 | 10,722 | 74,271 | 20,733 |
Selling and marketing expense | 189,984 | 196,167 | 379,943 | 371,469 |
General and administrative expense | 85,451 | 88,013 | 180,007 | 172,442 |
Product development expense | 15,407 | 15,082 | 32,491 | 30,886 |
Depreciation | 12,555 | 8,796 | 24,693 | 15,795 |
Amortization of intangibles | 12,978 | 13,713 | 25,958 | 28,252 |
Total operating costs and expenses | 357,417 | 332,493 | 717,363 | 639,577 |
Operating income | 17,644 | 11,403 | 1,348 | 7,762 |
Interest expense | (1,620) | (2,963) | (3,894) | (5,957) |
Other income, net | 212 | 1,047 | 633 | 3,318 |
Earnings (loss) before income taxes | 16,236 | 9,487 | (1,913) | 5,123 |
Income tax (provision) benefit | (3,025) | (2,253) | 5,940 | 11,962 |
Net earnings | 13,211 | 7,234 | 4,027 | 17,085 |
Net earnings attributable to noncontrolling interests | (544) | (266) | (318) | (148) |
Net earnings attributable to ANGI Homeservices Inc. shareholders | $ 12,667 | $ 6,968 | $ 3,709 | $ 16,937 |
Earnings per share information attributable to ANGI Homeservices Inc. shareholders: | ||||
Basic earnings per share (USD per share) | $ 0.03 | $ 0.01 | $ 0.01 | $ 0.03 |
Diluted earnings per share (USD per share) | $ 0.02 | $ 0.01 | $ 0.01 | $ 0.03 |
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | $ 14,759 | $ 17,520 | $ 40,334 | $ 36,802 |
Selling and marketing expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 720 | 1,046 | 1,723 | 2,005 |
General and administrative expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 13,131 | 14,642 | 36,111 | 30,749 |
Product development expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | $ 908 | $ 1,832 | $ 2,500 | $ 4,048 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 13,211 | $ 7,234 | $ 4,027 | $ 17,085 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | 4,486 | (1,674) | (2,082) | 191 |
Change in unrealized gains and losses on available-for-sale debt securities | 0 | 0 | 0 | (3) |
Total other comprehensive income (loss) | 4,486 | (1,674) | (2,082) | 188 |
Comprehensive income | 17,697 | 5,560 | 1,945 | 17,273 |
Components of comprehensive (income) loss attributable to noncontrolling interests: | ||||
Net earnings attributable to noncontrolling interests | (544) | (266) | (318) | (148) |
Change in foreign currency translation adjustment attributable to noncontrolling interests | 767 | 383 | 721 | 191 |
Comprehensive loss attributable to noncontrolling interests | 223 | 117 | 403 | 43 |
Comprehensive income attributable to ANGI Homeservices Inc. shareholders | $ 17,920 | $ 5,677 | $ 2,348 | $ 17,316 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Noncontrolling Interests | Total ANGI Homeservices Inc. Shareholders' Equity | Common StockClass A Common Stock | Common StockClass B Common Stock | Common StockClass C Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests |
Balance at beginning of period at Dec. 31, 2018 | $ 18,163 | ||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | |||||||||||
Net (loss) earnings | 51 | ||||||||||
Other comprehensive (loss) income | (149) | ||||||||||
Stock-based compensation expense | 77 | ||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 5,279 | ||||||||||
Balance at end of period at Jun. 30, 2019 | 23,421 | ||||||||||
Balance at beginning of period at Dec. 31, 2018 | $ 1,321,987 | $ 1,312,941 | $ 81 | $ 421 | $ 0 | $ 1,333,097 | $ (18,797) | $ (1,861) | $ 0 | $ 9,046 | |
Balance at beginning of period (shares) at Dec. 31, 2018 | 80,515 | 421,118 | 0 | ||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net (loss) earnings | 17,034 | 16,937 | 16,937 | 97 | |||||||
Other comprehensive (loss) income | 337 | 379 | 379 | (42) | |||||||
Stock-based compensation expense | 36,725 | 36,725 | 36,725 | ||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (25,443) | (25,443) | $ 5 | (25,448) | |||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 5,288 | ||||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement | (795) | (795) | (795) | ||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement (shares) | 335 | ||||||||||
Adjustment of redeemable noncontrolling interests to fair value | (5,279) | (5,279) | (5,279) | ||||||||
Other | (20) | (20) | (20) | ||||||||
Balance at end of period at Jun. 30, 2019 | 1,344,546 | 1,335,445 | $ 86 | $ 421 | $ 0 | 1,338,280 | (1,860) | (1,482) | 0 | 9,101 | |
Balance at end of period (shares) at Jun. 30, 2019 | 85,803 | 421,453 | 0 | ||||||||
Balance at beginning of period at Mar. 31, 2019 | 23,242 | ||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | |||||||||||
Net (loss) earnings | 160 | ||||||||||
Other comprehensive (loss) income | (335) | ||||||||||
Stock-based compensation expense | 35 | ||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 319 | ||||||||||
Balance at end of period at Jun. 30, 2019 | 23,421 | ||||||||||
Balance at beginning of period at Mar. 31, 2019 | 1,331,901 | 1,322,858 | $ 85 | $ 421 | $ 0 | 1,331,371 | (8,828) | (191) | 0 | 9,043 | |
Balance at beginning of period (shares) at Mar. 31, 2019 | 84,718 | 421,452 | 0 | ||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net (loss) earnings | 7,074 | 6,968 | 6,968 | 106 | |||||||
Other comprehensive (loss) income | (1,339) | (1,291) | (1,291) | (48) | |||||||
Stock-based compensation expense | 17,485 | 17,485 | 17,485 | ||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (10,256) | (10,256) | $ 1 | (10,257) | |||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 1,085 | ||||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement (shares) | 1 | ||||||||||
Adjustment of redeemable noncontrolling interests to fair value | (319) | (319) | (319) | ||||||||
Balance at end of period at Jun. 30, 2019 | 1,344,546 | 1,335,445 | $ 86 | $ 421 | $ 0 | 1,338,280 | (1,860) | (1,482) | 0 | 9,101 | |
Balance at end of period (shares) at Jun. 30, 2019 | 85,803 | 421,453 | 0 | ||||||||
Balance at beginning of period at Dec. 31, 2019 | 26,663 | 26,663 | |||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | |||||||||||
Net (loss) earnings | (55) | ||||||||||
Other comprehensive (loss) income | (687) | ||||||||||
Stock-based compensation expense | 15 | ||||||||||
Purchase of redeemable noncontrolling interests | (3,165) | ||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 2,322 | ||||||||||
Balance at end of period at Jun. 30, 2020 | 25,093 | 25,093 | |||||||||
Balance at beginning of period at Dec. 31, 2019 | 1,323,552 | 1,314,288 | $ 87 | $ 422 | $ 0 | 1,357,075 | 16,032 | (1,379) | (57,949) | 9,264 | |
Balance at beginning of period (shares) at Dec. 31, 2019 | 87,007 | 421,570 | 0 | ||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net (loss) earnings | 4,082 | 3,709 | 3,709 | 373 | |||||||
Other comprehensive (loss) income | (1,395) | (1,361) | (1,361) | (34) | |||||||
Stock-based compensation expense | 40,818 | 40,818 | 40,818 | ||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (10,771) | (10,771) | $ 2 | (10,773) | |||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 2,069 | ||||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement | (791) | (791) | (791) | ||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement (shares) | 187 | ||||||||||
Purchase of treasury stock | (54,859) | (54,859) | (54,859) | ||||||||
Adjustment of redeemable noncontrolling interests to fair value | (2,322) | (2,322) | (2,322) | ||||||||
Adjustment pursuant to the tax sharing agreement | 3,613 | 3,613 | 3,613 | ||||||||
Other | (1) | (2) | (2) | 1 | |||||||
Balance at end of period at Jun. 30, 2020 | 1,301,926 | 1,292,322 | $ 89 | $ 422 | $ 0 | 1,387,618 | 19,741 | (2,740) | (112,808) | 9,604 | |
Balance at end of period (shares) at Jun. 30, 2020 | 89,076 | 421,757 | 0 | ||||||||
Balance at beginning of period at Mar. 31, 2020 | 23,813 | ||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | |||||||||||
Net (loss) earnings | 220 | ||||||||||
Other comprehensive (loss) income | (786) | ||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 1,846 | ||||||||||
Balance at end of period at Jun. 30, 2020 | 25,093 | $ 25,093 | |||||||||
Balance at beginning of period at Mar. 31, 2020 | 1,291,010 | 1,281,750 | $ 88 | $ 422 | $ 0 | 1,379,079 | 7,074 | (7,993) | (96,920) | 9,260 | |
Balance at beginning of period (shares) at Mar. 31, 2020 | 87,624 | 421,757 | 0 | ||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net (loss) earnings | 12,991 | 12,667 | 12,667 | 324 | |||||||
Other comprehensive (loss) income | 5,272 | 5,253 | 5,253 | 19 | |||||||
Stock-based compensation expense | 18,607 | 18,607 | 18,607 | ||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (8,219) | (8,219) | $ 1 | (8,220) | |||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 1,452 | ||||||||||
Purchase of treasury stock | (15,888) | (15,888) | (15,888) | ||||||||
Adjustment of redeemable noncontrolling interests to fair value | (1,846) | (1,846) | (1,846) | ||||||||
Other | (1) | (2) | (2) | 1 | |||||||
Balance at end of period at Jun. 30, 2020 | $ 1,301,926 | $ 1,292,322 | $ 89 | $ 422 | $ 0 | $ 1,387,618 | $ 19,741 | $ (2,740) | $ (112,808) | $ 9,604 | |
Balance at end of period (shares) at Jun. 30, 2020 | 89,076 | 421,757 | 0 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Class A Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Class B Common Stock | ||
Common stock, par value (USD per share) | 0.001 | 0.001 |
Class C Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 4,027 | $ 17,085 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Stock-based compensation expense | 40,334 | 36,802 |
Amortization of intangibles | 25,958 | 28,252 |
Bad debt expense | 39,338 | 32,143 |
Depreciation | 24,693 | 15,795 |
Deferred income taxes | (6,290) | (12,407) |
Other adjustments, net | 5,524 | 3,446 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||
Accounts receivable | (48,222) | (61,889) |
Other assets | 7,132 | 10,556 |
Accounts payable and other liabilities | 35,930 | 29,588 |
Income taxes payable and receivable | (502) | 269 |
Deferred revenue | (125) | 3,384 |
Net cash provided by operating activities | 127,797 | 103,024 |
Cash flows from investing activities: | ||
Acquisition, net of cash acquired | 0 | (20,341) |
Capital expenditures | (24,665) | (39,113) |
Proceeds from maturities of marketable debt securities | 25,000 | |
Net proceeds from the sale of a business | 731 | 23,599 |
Other, net | (103) | |
Net cash used in investing activities | (23,934) | (10,958) |
Cash flows from financing activities: | ||
Principal payments on term loan | (6,875) | (6,875) |
Principal payments on related-party debt | 0 | (1,008) |
Purchase of treasury stock | (54,400) | 0 |
Proceeds from the exercise of stock options | 0 | 573 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (11,494) | (26,245) |
Distribution from (to) IAC pursuant to the tax sharing agreement | 3,071 | |
Distribution from (to) IAC pursuant to the tax sharing agreement | (11,355) | |
Purchase of noncontrolling interests | (3,165) | 0 |
Other, net | 0 | (3,732) |
Net cash used in financing activities | (72,863) | (48,642) |
Total cash provided | 31,000 | 43,424 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (702) | 157 |
Net increase in cash and cash equivalents and restricted cash | 30,298 | 43,581 |
Cash and cash equivalents and restricted cash at beginning of period | 391,478 | 338,821 |
Cash and cash equivalents and restricted cash at end of period | $ 421,776 | $ 382,402 |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations ANGI Homeservices Inc. connects quality home service professionals across 500 different categories, from repairing and remodeling to cleaning and landscaping, with consumers. Over 230,000 domestic service professionals actively seek consumer matches, complete jobs or advertise work through ANGI Homeservices' platforms and consumers turn to at least one of our brands to find a professional for more than 25 million projects each year. We’ve established category-transforming products with brands such as HomeAdvisor, Angie’s List, Handy and Fixd Repair. The Company has two operating segments (i) North America (United States and Canada), which includes HomeAdvisor, Angie's List, Handy, mHelpDesk, HomeStars and Fixd Repair and (ii) Europe, which includes Travaux, MyHammer, MyBuilder, Werkspot and Instapro. As used herein, "ANGI Homeservices," the "Company," "ANGI," "we," "our" or "us" and similar terms refer to ANGI Homeservices Inc. and its subsidiaries (unless the context requires otherwise). At June 30, 2020 , IAC/InterActiveCorp ("IAC") owned 85.1% and 98.3% of the economic interest and voting interest, respectively, of ANGI Homeservices. COVID-19 Update The impact on the Company from the COVID-19 outbreak, which has been declared a "pandemic" by the World Health Organization, has been varied. The extent to which developments related to the COVID-19 outbreak and measures designed to curb its spread continue to impact the Company’s business, financial condition and results of operations will depend on future developments, all of which are highly uncertain and many of which are beyond the Company’s control, including the speed of contagion, the development and implementation of effective preventative measures and possible treatments, the scope of governmental and other restrictions on travel, discretionary services (including those provided by certain of our service professionals) and other activity, and public reactions to these developments. For example, these developments and measures have resulted in rapid and adverse changes to the operating environment in which we do business, as well as significant uncertainty concerning the near and long term economic ramifications of the COVID-19 outbreak, which have adversely impacted our ability to forecast our results and respond in a timely and effective manner to trends related to the COVID-19 outbreak. The longer the global outbreak and measures designed to curb the spread of the virus continue to adversely affect levels of consumer confidence, discretionary spending and the willingness of consumers to interact with other consumers, vendors and service providers face-to-face (and in turn, adversely affect demand for the Company’s various products and services), the greater the adverse impact is likely to be on the Company’s business, financial condition and results of operations and the more limited will be the Company’s ability to try and make up for delayed or lost revenues. In March 2020, the Company experienced a decline in demand for service requests, driven primarily by decreases in demand in certain categories of jobs (particularly discretionary indoor projects). In the second quarter of 2020, the Company experienced a rebound in service requests, exceeding pre-COVID-19 growth levels, driven by increased demand from homeowners who spent more time at home due to measures taken to reduce the spread of COVID-19. However, many service professionals' businesses have been adversely impacted by labor and material constraints, which negatively impacted the Company's ability to monetize this increased level of service requests. Also, the United States, which represents 94% of the Company's revenue for both the three and six months ended June 30, 2020, has experienced a resurgence of the COVID-19 virus beginning in June 2020. This resurgence could result in a reduction in service requests and/or a reduction in our ability to monetize service requests due to service professional constraints, one or both of which could materially and adversely affect our business, financial condition and results of operations. Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated. For the purpose of these financial statements, income taxes have been computed as if ANGI Homeservices filed tax returns on a standalone, separate tax return basis. Any differences between taxes currently payable to or receivable from IAC under the tax sharing agreement between the Company and IAC and the current tax provision computed on an as if standalone, separate return basis for GAAP are reflected as adjustments to additional paid-in capital and as financing activities within the statement of cash flows. In management's opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of the Company's consolidated financial position, consolidated results of operations and consolidated cash flows for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 . Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to: the fair values of cash equivalents; the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of revenue reserves; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of definite-lived intangible assets and capitalized software, leasehold improvements and equipment; the recoverability of goodwill and indefinite-lived intangible assets; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant. General Revenue Recognition Revenue is recognized when control of the promised services or goods is transferred to the Company's customers and in the amount that reflects the consideration the Company expects to be entitled to in exchange for those services or goods. The Company's disaggregated revenue disclosures are presented in " Note 7—Segment Information ." Prior to January 1, 2020, Handy recorded revenue on a net basis. Effective January 1, 2020, the Company modified the Handy terms and conditions so that Handy, rather than the service professional, has the contractual relationship with the consumer to deliver the service and Handy, rather than the consumer, has the contractual relationship with the service professional. Consumers request services and pay for such services directly through the Handy platform and then Handy fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. This change in contractual terms requires gross revenue accounting treatment effective January 1, 2020. Also, in the case of certain tasks, HomeAdvisor provides a pre-priced product offering, pursuant to which consumers can request services through a HomeAdvisor platform and pay HomeAdvisor for the services directly. HomeAdvisor then fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. Revenue from HomeAdvisor’s pre-priced product offering is also recorded on a gross basis effective January 1, 2020. In addition to changing the presentation of revenue to gross from net, the timing of revenue recognition changed for HomeAdvisor pre-priced jobs and will be later than consumer connection revenue because the Company will not be able to record revenue, generally, until the service professional completes the job on the Company's behalf. The change to gross revenue reporting for Handy and HomeAdvisor’s pre-priced product offering, effective January 1, 2020, resulted in an increase in revenue of $15.3 million and $30.5 million during the three and six months ended June 30, 2020 , respectively. Deferred Revenue Deferred revenue consists of payments that are received or are contractually due in advance of the Company's performance. The Company’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the term of the applicable subscription period or expected completion of the Company's performance obligation is one year or less. The current and non-current deferred revenue balances at December 31, 2019 were $58.2 million and $0.2 million , respectively. During the six months ended June 30, 2020 , the Company recognized $49.5 million of revenue that was included in the deferred revenue balance as of December 31, 2019 . During the six months ended June 30, 2019 , the Company recognized $50.5 million of revenue that was included in the deferred revenue balance as of December 31, 2018 . The current and non-current deferred revenue balances at June 30, 2020 are $58.1 million and $0.1 million , respectively. Non-current deferred revenue is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. Practical Expedients and Exemptions As permitted under the practical expedient available under Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which the Company has the right to invoice for services performed. For sales incentive programs where the customer relationship period is one year or less, the Company has elected the practical expedient to expense the costs as incurred. The amount of capitalized sales commissions where the initial customer relationship period is greater than one year is $47.4 million and $39.1 million at June 30, 2020 and December 31, 2019 , respectively. The current and non-current capitalized sales commissions balances are included in "Other current assets" and "Other non-current assets" in the accompanying consolidated balance sheet and are $44.3 million and $3.1 million , and $35.1 million and $4.0 million , at June 30, 2020 and December 31, 2019, respectively. Allowance for Credit Losses and Revenue Reserve The following table presents the changes in the allowance for credit losses for the six months ended June 30, 2020 : June 30, 2020 (In thousands) Balance at January 1 $ 19,066 Current period provision for credit losses 39,338 Write-offs charged against the allowance (33,700 ) Recoveries collected 1,283 Balance at June 30 $ 25,987 The revenue reserve was $2.0 million and $1.2 million at June 30, 2020 and December 31, 2019 , respectively. The total allowance for credit losses and revenue reserve was $28.0 million and $20.3 million as of June 30, 2020 and December 31, 2019 , respectively. Adoption of New Accounting Pronouncements Adoption of ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASU No. 2016-13 effective January 1, 2020. ASU No. 2016-13 replaces the “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. The Company adopted ASU No. 2016-13 using the modified retrospective approach and there was no cumulative effect arising from the adoption. The adoption of ASU No. 2016-13 did not have a material impact on the Company's consolidated financial statements. Adoption of ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company adopted ASU No. 2019-12 effective January 1, 2020, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Most amendments within ASU No. 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted ASU No. 2019-12 on January 1, 2020 using the modified retrospective basis for those amendments that are not applied on a prospective basis. The adoption of ASU No. 2019-12 did not have a material impact on the Company’s consolidated financial statements. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is included within IAC’s tax group for purposes of federal and consolidated state income tax return filings. In all periods presented, current and deferred income tax benefit/provision have been computed for the Company on an as if standalone, separate return basis and payments to and refunds from IAC for the Company's share of IAC’s consolidated federal and state tax return liabilities/receivables calculated on this basis have been reflected within cash flows from operating activities in the accompanying consolidated statement of cash flows. The tax sharing agreement between the Company and IAC governs the parties’ respective rights, responsibilities and obligations with respect to tax matters, including responsibility for taxes attributable to the Company, entitlement to refunds, allocation of tax attributes and other matters and, therefore, ultimately governs the amount payable to or receivable from IAC with respect to income taxes. Any differences between taxes currently payable to or receivable from IAC under the tax sharing agreement and the current tax provision computed on an as if standalone, separate return basis for GAAP are reflected as adjustments to additional paid-in capital in the consolidated statement of shareholders' equity and financing activities within the consolidated statement of cash flows. At the end of each interim period, the Company estimates the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or unrecognized tax benefits is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realizability of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or the Company's tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs. For the three months ended June 30, 2020 , the Company recorded an income tax provision of $3.0 million , which represents an effective income tax rate of 19% . The effective income tax rate is lower than the statutory rate of 21% due primarily to benefiting (previously unbenefited) foreign net operating loss carryforwards. For the six months ended June 30, 2020 , the Company recorded an income tax benefit of $ 5.9 million due primarily to a $5.7 million reduction to deferred taxes due to the true-up of the state tax rate for an indefinite-lived intangible asset and benefiting foreign net operating loss carryforwards. For the three months ended June 30, 2019 , the Company recorded an income tax provision of $2.3 million , which represents an effective income tax rate of 24% and is higher than the statutory rate of 21% due primarily to unbenefited foreign losses and state taxes, partially offset by excess tax benefits generated by the exercise and vesting of stock-based awards. For the six months ended June 30, 2019 , the Company recorded an income tax benefit of $12.0 million due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards. The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Accruals for interest and penalties are not material. The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax as a result of previously filed separate company and consolidated tax returns with IAC. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service has substantially completed its audit of IAC’s federal income tax returns for the years ended December 31, 2010 through 2016, which includes the operations of the HomeAdvisor businesses. The IRS began its audit of the year ended December 31, 2017 in the second quarter of 2020. The statutes of limitations for the years 2010 through 2012 and for the years 2013 through 2016 have been extended to May 31, 2021 and March 31, 2021, respectively. Returns filed in various other jurisdictions are open to examination for various tax years beginning with 2009. Income taxes payable include unrecognized tax benefits considered sufficient to pay assessments that may result from examination of prior year tax returns. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may not accurately anticipate actual outcomes and, therefore, may require periodic adjustment. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided will not have a material impact on liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. At June 30, 2020 and December 31, 2019 , unrecognized tax benefits, including interest of $3.9 million and $4.1 million , respectively, were included in unrecognized tax positions for tax positions included in IAC’s consolidated tax return filings. If unrecognized tax benefits at June 30, 2020 are subsequently recognized, the income tax provision would be reduced by $3.7 million . The comparable amount as of December 31, 2019 is $4.0 million . The Company believes it is reasonably possible that its unrecognized tax benefits could decrease by $0.5 million by June 30, 2021 due to settlements, all of which would reduce the income tax provision. The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning and historical experience. As of June 30, 2020 , the Company has a U.S. federal and state gross deferred tax asset of $178.2 million that the Company expects to fully utilize on a more likely than not basis. Of this amount, $65.0 million will be utilized upon the future reversal of deferred tax liabilities and the remaining net deferred tax asset of $113.2 million will be utilized based on forecasts of future taxable income. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Fair Value Measurements The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: • Level 1: Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets. • Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of the Company's Level 2 financial assets are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case an average market price is used. • Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis: June 30, 2020 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 156,063 $ — $ — $ 156,063 Treasury discount notes — 174,987 — 174,987 Time deposits — 2,936 — 2,936 Total $ 156,063 $ 177,923 $ — $ 333,986 December 31, 2019 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 291,810 $ — $ — $ 291,810 Time deposits — 23,040 — 23,040 Total $ 291,810 $ 23,040 $ — $ 314,850 Assets measured at fair value on a nonrecurring basis The Company’s non-financial assets, such as goodwill, intangible assets, ROU assets, capitalized software, leasehold improvements and equipment are adjusted to fair value only when an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs. Financial instruments measured at fair value only for disclosure purposes The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes: June 30, 2020 December 31, 2019 Carrying value Fair value Carrying value Fair value (In thousands) Current portion of long-term debt $ (13,750 ) $ (13,750 ) $ (13,750 ) $ (13,681 ) Long-term debt, net (a) $ (225,336 ) $ (226,875 ) $ (231,946 ) $ (232,581 ) _________________ (a) At June 30, 2020 and December 31, 2019 , the carrying value of long-term debt, net includes unamortized debt issuance costs of $1.5 million and $1.8 million , respectively . At June 30, 2020 and December 31, 2019 , the fair value of long-term debt, including the current portion, is estimated using observable market prices or indices for similar liabilities, which are Level 2 inputs. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of: June 30, 2020 December 31, 2019 (In thousands) Term Loan due November 5, 2023 $ 240,625 $ 247,500 Less: current portion of Term Loan 13,750 13,750 Less: unamortized debt issuance costs 1,539 1,804 Total long-term debt, net $ 225,336 $ 231,946 Term Loan and Credit Facility The outstanding balance of the term loan ("Term Loan") was $240.6 million and $247.5 million at June 30, 2020 and December 31, 2019 , respectively. There are quarterly principal payments of $3.4 million through December 31, 2021 , $6.9 million for the one-year period ending December 31, 2022 and $10.3 million through maturity of the loan when the final amount of $161.6 million is due. Additionally, interest payments are due at least quarterly through the term of the loan. At both June 30, 2020 and December 31, 2019 , the Term Loan bore interest at LIBOR plus 1.50% , or 1.70% and 3.25% , respectively. The spread over LIBOR is subject to change in future periods based on the Company's consolidated net leverage ratio. The terms of the Term Loan require the Company to maintain a consolidated net leverage ratio of not more than 4.5 to 1.0 and a minimum interest coverage ratio of not less than 2.0 to 1.0 (in each case as defined in the credit agreement). The Term Loan also contains covenants that would limit the Company's ability to pay dividends, make distributions or repurchase its stock in the event a default has occurred or its consolidated net leverage ratio exceeds 4.25 to 1.0. At June 30, 2020 , there were no limitations pursuant thereto. There are additional covenants under the Term Loan that limit the ability of the Company and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions. The $250 million revolving credit facility (the "Credit Facility") expires on November 5, 2023 . At June 30, 2020 and December 31, 2019 , there were no outstanding borrowings under the Credit Facility. The annual commitment fee on undrawn funds is based on the consolidated net leverage ratio most recently reported and was 25 basis points at both June 30, 2020 and December 31, 2019 . Any future borrowings under the Credit Facility would bear interest, at the Company's option, at either a base rate or LIBOR, in each case plus an applicable margin, which is based on the Company's consolidated net leverage ratio. The financial and other covenants are the same as those for the Term Loan. The Term Loan and Credit Facility are guaranteed by the Company's wholly-owned material domestic subsidiaries and are secured by substantially all assets of the Company and the guarantors, subject to certain exceptions. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present the components of accumulated other comprehensive loss: Three Months Ended June 30, 2020 Foreign Accumulated (In thousands) Balance at April 1 $ (7,993 ) $ (7,993 ) Other comprehensive income 5,253 5,253 Balance at June 30 $ (2,740 ) $ (2,740 ) Three Months Ended June 30, 2019 Foreign Accumulated (In thousands) Balance at April 1 $ (191 ) $ (191 ) Other comprehensive loss (1,291 ) (1,291 ) Balance at June 30 $ (1,482 ) $ (1,482 ) Six Months Ended June 30, 2020 Foreign Accumulated (In thousands) Balance at January 1 $ (1,379 ) $ (1,379 ) Other comprehensive loss (1,361 ) (1,361 ) Balance at June 30 $ (2,740 ) $ (2,740 ) Six Months Ended June 30, 2019 Foreign Unrealized Gains (Losses) On Available-For-Sale Debt Securities Accumulated (In thousands) Balance at January 1 $ (1,864 ) $ 3 $ (1,861 ) Other comprehensive income (loss) 382 (3 ) 379 Balance at June 30 $ (1,482 ) $ — $ (1,482 ) At both June 30, 2020 and 2019 , there was no tax benefit or provision on the accumulated other comprehensive loss. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share attributable to ANGI Homeservices shareholders: Three Months Ended June 30, 2020 2019 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 13,211 $ 13,211 $ 7,234 $ 7,234 Net earnings attributable to noncontrolling interests (544 ) (544 ) (266 ) (266 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 12,667 $ 12,667 $ 6,968 $ 6,968 Denominator: Weighted average basic shares outstanding 495,769 495,769 506,725 506,725 Dilutive securities (a) (b) — 14,765 — 13,904 Denominator for earnings per share—weighted average shares 495,769 510,534 506,725 520,629 Earnings per share attributable to ANGI Homeservices Inc. shareholders: Earnings per share $ 0.03 $ 0.02 $ 0.01 $ 0.01 Six Months Ended June 30, 2020 2019 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 4,027 $ 4,027 $ 17,085 $ 17,085 Net earnings attributable to noncontrolling interests (318 ) (318 ) (148 ) (148 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 3,709 $ 3,709 $ 16,937 $ 16,937 Denominator: Weighted average basic shares outstanding 497,611 497,611 505,548 505,548 Dilutive securities (a) (b) — 11,136 — 16,313 Denominator for earnings per share—weighted average shares 497,611 508,747 505,548 521,861 Earnings per share attributable to ANGI Homeservices Inc. shareholders: Earnings per share $ 0.01 $ 0.01 $ 0.03 $ 0.03 ________________________ (a) If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options, subsidiary denominated equity, and vesting of restricted stock units ("RSUs"). For the three and six months ended June 30, 2020 , 4.9 million and 5.4 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For both the three and six months ended June 30, 2019, 4.2 million potentially dilutive securities are excluded from the calculation of diluted securities per share because their inclusion would have been anti-dilutive. (b) Market-based awards and performance-based stock units ("PSUs") are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For both the three and six months ended June 30, 2020, 3.4 million shares underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance condition(s) had not been met. For both the three and six months ended June 30, 2019 , 2.8 million |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The overall concept that the Company employs in determining its operating segments is to present the financial information in a manner consistent with: how the chief operating decision maker views the businesses; how the businesses are organized as to segment management; and the focus of the businesses with regards to the target market. The following table presents revenue by reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Revenue: North America $ 357,417 $ 324,400 $ 681,549 $ 606,394 Europe 17,644 19,496 37,162 40,945 Total $ 375,061 $ 343,896 $ 718,711 $ 647,339 The following table presents the revenue of the Company's segments disaggregated by type of service: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) North America Marketplace: Consumer connection revenue (a) $ 272,649 $ 241,236 $ 512,479 $ 442,818 Service professional membership subscription revenue 13,017 16,302 26,794 32,702 Other revenue 7,507 3,753 12,676 6,271 Total Marketplace revenue 293,173 261,291 551,949 481,791 Advertising and other revenue (b) 64,244 63,109 129,600 124,603 Total North America revenue 357,417 324,400 681,549 606,394 Europe Consumer connection revenue (c) 13,945 15,232 29,634 32,355 Service professional membership subscription revenue 3,215 3,613 6,514 7,355 Advertising and other revenue 484 651 1,014 1,235 Total Europe revenue 17,644 19,496 37,162 40,945 Total revenue $ 375,061 $ 343,896 $ 718,711 $ 647,339 ________________________ (a) Includes fees paid by service professionals for consumer matches and revenue from pre-priced jobs sourced through the HomeAdvisor and Handy platforms. (b) Includes Angie's List revenue from service professionals under contract for advertising and Angie's List membership subscription fees from consumers, as well as revenue from mHelpDesk and HomeStars. (c) Includes fees paid by service professionals for consumer matches. Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Revenue: United States $ 354,000 $ 320,701 $ 673,821 $ 599,179 All other countries 21,061 23,195 44,890 48,160 Total $ 375,061 $ 343,896 $ 718,711 $ 647,339 June 30, 2020 December 31, 2019 (In thousands) Long-lived assets (excluding goodwill, intangible assets and ROU assets): United States $ 95,173 $ 95,822 All other countries 9,088 7,539 Total $ 104,261 $ 103,361 The following tables present operating income (loss) and Adjusted EBITDA by reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Operating income (loss): North America $ 16,190 $ 12,473 $ 8,082 $ 13,215 Europe 1,454 (1,070 ) (6,734 ) (5,453 ) Total $ 17,644 $ 11,403 $ 1,348 $ 7,762 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Adjusted EBITDA (d) : North America $ 55,041 $ 51,606 $ 96,432 $ 91,295 Europe $ 2,895 $ (174 ) $ (4,099 ) $ (2,684 ) ________________________ (d) The Company’s primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of amortization of intangible assets and impairments of goodwill and intangible assets, if applicable. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between the Company's performance and that of its competitors. The above items are excluded from the Company's Adjusted EBITDA measure because these items are non-cash in nature. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses. The following tables reconcile operating income (loss) to Adjusted EBITDA for the Company’s reportable segments: Three Months Ended June 30, 2020 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 16,190 $ 14,495 $ 11,467 $ 12,889 $ 55,041 Europe 1,454 $ 264 $ 1,088 $ 89 $ 2,895 Operating income 17,644 Interest expense (1,620 ) Other income, net 212 Earnings before income taxes 16,236 Income tax provision (3,025 ) Net earnings 13,211 Net earnings attributable to noncontrolling interests (544 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 12,667 Three Months Ended June 30, 2019 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 12,473 $ 17,387 $ 8,227 $ 13,519 $ 51,606 Europe (1,070 ) $ 133 $ 569 $ 194 $ (174 ) Operating income 11,403 Interest expense (2,963 ) Other income, net 1,047 Earnings before income taxes 9,487 Income tax provision (2,253 ) Net earnings 7,234 Net earnings attributable to noncontrolling interests (266 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 6,968 Six Months Ended June 30, 2020 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 8,082 $ 39,807 $ 22,764 $ 25,779 $ 96,432 Europe (6,734 ) $ 527 $ 1,929 $ 179 $ (4,099 ) Operating income 1,348 Interest expense (3,894 ) Other income, net 633 Loss before income taxes (1,913 ) Income tax benefit 5,940 Net earnings 4,027 Net earnings attributable to noncontrolling interests (318 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 3,709 Six Months Ended June 30, 2019 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 13,215 $ 36,459 $ 14,434 $ 27,187 $ 91,295 Europe (5,453 ) $ 343 $ 1,361 $ 1,065 $ (2,684 ) Operating income 7,762 Interest expense (5,957 ) Other income, net 3,318 Earnings before income taxes 5,123 Income tax benefit 11,962 Net earnings 17,085 Net earnings attributable to noncontrolling interests (148 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 16,937 |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | CONSOLIDATED FINANCIAL STATEMENT DETAILS Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: June 30, 2020 December 31, 2019 June 30, 2019 December 31, 2018 (In thousands) Cash and cash equivalents $ 420,985 $ 390,565 $ 380,563 $ 336,984 Restricted cash included in other current assets 379 504 1,419 1,417 Restricted cash included in other non-current assets 412 409 420 420 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 421,776 $ 391,478 $ 382,402 $ 338,821 Restricted cash at June 30, 2020 and December 31, 2019 primarily consists of a deposit related to corporate credit cards. Restricted cash at June 30, 2019 and December 31, 2018 primarily consists of a cash collateralized letter of credit and a deposit related to corporate credit cards. Accumulated Amortization and Depreciation The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category June 30, 2020 December 31, 2019 (In thousands) Right-of-use assets (included in "other non-current assets") $ 30,216 $ 19,416 Capitalized software, leasehold improvements and equipment $ 83,970 $ 68,227 Intangible assets $ 166,838 $ 141,208 Other income, net Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Other income, net $ 212 $ 1,047 $633 $3,318 For the three months ended June 30, 2020 compared to the three months ended June 30, 2019 Other income, net in 2020 principally includes interest income of $0.2 million . Other income, net in 2019 principally includes interest income of $2.2 million , partially offset by a $1.1 million mark-to-market charge for an indemnification claim related to the Handy acquisition that was settled in ANGI shares during the first quarter of 2020. For the six months ended June 30, 2020 compared to the six months ended June 30, 2019 Other income, net in 2020 principally includes interest income of $1.4 million , partially offset by net foreign currency exchange losses of $0.3 million and a $0.2 million mark-to-market charge for an indemnification claim related to the Handy acquisition that was settled in ANGI shares during the first quarter of 2020. Other income, net in 2019 principally includes interest income of $4.3 million and net foreign currency exchange gains of $0.3 million , partially offset by a $1.1 million mark-to-market charge for an indemnification claim related to the Handy acquisition that was settled in ANGI shares during the first quarter of 2020. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where the Company believes an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against the Company, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. See " Note 2—Income Taxes " for additional information related to income tax contingencies. |
RELATED PARTY TRANSACTIONS WITH
RELATED PARTY TRANSACTIONS WITH IAC | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS WITH IAC | RELATED PARTY TRANSACTIONS WITH IAC The Company and IAC entered into certain agreements to govern our relationship with IAC following the combination of IAC's HomeAdvisor business and Angie's List, Inc. on September 29, 2017 (the "Combination"). These agreements include: a contribution agreement; an investor rights agreement; a services agreement; a tax sharing agreement; and an employee matters agreement. For the three and six months ended June 30, 2020 and 2019 , the Company was charged $1.2 million and $2.4 million ; and $1.3 million and $2.7 million , respectively, by IAC for services rendered pursuant to the services agreement. There were no outstanding receivables or payables pursuant to the services agreement as of June 30, 2020 or December 31, 2019 . Separately, the Company subleases office space to IAC and charged IAC $0.4 million and $0.9 million of rent for the three and six months ended June 30, 2020 , respectively, and $0.5 million of rent for both the three and six months ended June 30, 2019 . These amounts were paid in full by IAC at June 30, 2020 and 2019 , respectively. At June 30, 2020 and December 31, 2019 , the Company had outstanding payables of $0.7 million and $0.2 million , respectively, due to IAC pursuant to the tax sharing agreement, which are included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet. There were $3.1 million of refunds received from IAC pursuant to this agreement during the three and six months ended June 30, 2020 . During the first quarter of 2019, $11.4 million was paid to IAC pursuant to this agreement. For the six months ended June 30, 2020 , 0.2 million shares of ANGI Homeservices Class B common stock were issued to IAC pursuant to the employee matters agreement as reimbursement for shares of IAC common stock issued in connection with the exercise and vesting of IAC equity awards held by ANGI Homeservices employees. There were no shares issued to IAC pursuant to the employee matters agreement for the three months ended June 30, 2020 . For the three and six months ended June 30, 2019 , less than 0.1 million and 0.3 million shares, respectively, of ANGI Homeservices Class B common stock were issued to IAC pursuant to the employee matters agreement. |
THE COMPANY AND SUMMARY OF SI_2
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations ANGI Homeservices Inc. connects quality home service professionals across 500 different categories, from repairing and remodeling to cleaning and landscaping, with consumers. Over 230,000 domestic service professionals actively seek consumer matches, complete jobs or advertise work through ANGI Homeservices' platforms and consumers turn to at least one of our brands to find a professional for more than 25 million projects each year. We’ve established category-transforming products with brands such as HomeAdvisor, Angie’s List, Handy and Fixd Repair. The Company has two operating segments (i) North America (United States and Canada), which includes HomeAdvisor, Angie's List, Handy, mHelpDesk, HomeStars and Fixd Repair and (ii) Europe, which includes Travaux, MyHammer, MyBuilder, Werkspot and Instapro. As used herein, "ANGI Homeservices," the "Company," "ANGI," "we," "our" or "us" and similar terms refer to ANGI Homeservices Inc. and its subsidiaries (unless the context requires otherwise). At June 30, 2020 , IAC/InterActiveCorp ("IAC") owned 85.1% and 98.3% of the economic interest and voting interest, respectively, of ANGI Homeservices. |
Basis of Presentation | Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated. |
Basis of Consolidation | Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated. |
Accounting Estimates | Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to: the fair values of cash equivalents; the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of revenue reserves; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of definite-lived intangible assets and capitalized software, leasehold improvements and equipment; the recoverability of goodwill and indefinite-lived intangible assets; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant. |
General Revenue Recognition | General Revenue Recognition Revenue is recognized when control of the promised services or goods is transferred to the Company's customers and in the amount that reflects the consideration the Company expects to be entitled to in exchange for those services or goods. The Company's disaggregated revenue disclosures are presented in " Note 7—Segment Information ." Prior to January 1, 2020, Handy recorded revenue on a net basis. Effective January 1, 2020, the Company modified the Handy terms and conditions so that Handy, rather than the service professional, has the contractual relationship with the consumer to deliver the service and Handy, rather than the consumer, has the contractual relationship with the service professional. Consumers request services and pay for such services directly through the Handy platform and then Handy fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. This change in contractual terms requires gross revenue accounting treatment effective January 1, 2020. Also, in the case of certain tasks, HomeAdvisor provides a pre-priced product offering, pursuant to which consumers can request services through a HomeAdvisor platform and pay HomeAdvisor for the services directly. HomeAdvisor then fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. Revenue from HomeAdvisor’s pre-priced product offering is also recorded on a gross basis effective January 1, 2020. In addition to changing the presentation of revenue to gross from net, the timing of revenue recognition changed for HomeAdvisor pre-priced jobs and will be later than consumer connection revenue because the Company will not be able to record revenue, generally, until the service professional completes the job on the Company's behalf. The change to gross revenue reporting for Handy and HomeAdvisor’s pre-priced product offering, effective January 1, 2020, resulted in an increase in revenue of $15.3 million and $30.5 million during the three and six months ended June 30, 2020 , respectively. Deferred Revenue Deferred revenue consists of payments that are received or are contractually due in advance of the Company's performance. The Company’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the term of the applicable subscription period or expected completion of the Company's performance obligation is one year or less. The current and non-current deferred revenue balances at December 31, 2019 were $58.2 million and $0.2 million , respectively. During the six months ended June 30, 2020 , the Company recognized $49.5 million of revenue that was included in the deferred revenue balance as of December 31, 2019 . During the six months ended June 30, 2019 , the Company recognized $50.5 million of revenue that was included in the deferred revenue balance as of December 31, 2018 . The current and non-current deferred revenue balances at June 30, 2020 are $58.1 million and $0.1 million , respectively. Non-current deferred revenue is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. Practical Expedients and Exemptions As permitted under the practical expedient available under Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which the Company has the right to invoice for services performed. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements Adoption of ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASU No. 2016-13 effective January 1, 2020. ASU No. 2016-13 replaces the “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. The Company adopted ASU No. 2016-13 using the modified retrospective approach and there was no cumulative effect arising from the adoption. The adoption of ASU No. 2016-13 did not have a material impact on the Company's consolidated financial statements. Adoption of ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company adopted ASU No. 2019-12 effective January 1, 2020, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Most amendments within ASU No. 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted ASU No. 2019-12 on January 1, 2020 using the modified retrospective basis for those amendments that are not applied on a prospective basis. The adoption of ASU No. 2019-12 did not have a material impact on the Company’s consolidated financial statements. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
THE COMPANY AND SUMMARY OF SI_3
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The following table presents the changes in the allowance for credit losses for the six months ended June 30, 2020 : June 30, 2020 (In thousands) Balance at January 1 $ 19,066 Current period provision for credit losses 39,338 Write-offs charged against the allowance (33,700 ) Recoveries collected 1,283 Balance at June 30 $ 25,987 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis: June 30, 2020 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 156,063 $ — $ — $ 156,063 Treasury discount notes — 174,987 — 174,987 Time deposits — 2,936 — 2,936 Total $ 156,063 $ 177,923 $ — $ 333,986 December 31, 2019 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 291,810 $ — $ — $ 291,810 Time deposits — 23,040 — 23,040 Total $ 291,810 $ 23,040 $ — $ 314,850 |
Schedule of Carrying Value and Fair Value of Financial Instruments | The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes: June 30, 2020 December 31, 2019 Carrying value Fair value Carrying value Fair value (In thousands) Current portion of long-term debt $ (13,750 ) $ (13,750 ) $ (13,750 ) $ (13,681 ) Long-term debt, net (a) $ (225,336 ) $ (226,875 ) $ (231,946 ) $ (232,581 ) _________________ (a) At June 30, 2020 and December 31, 2019 , the carrying value of long-term debt, net includes unamortized debt issuance costs of $1.5 million and $1.8 million , respectively . |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: June 30, 2020 December 31, 2019 (In thousands) Term Loan due November 5, 2023 $ 240,625 $ 247,500 Less: current portion of Term Loan 13,750 13,750 Less: unamortized debt issuance costs 1,539 1,804 Total long-term debt, net $ 225,336 $ 231,946 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following tables present the components of accumulated other comprehensive loss: Three Months Ended June 30, 2020 Foreign Accumulated (In thousands) Balance at April 1 $ (7,993 ) $ (7,993 ) Other comprehensive income 5,253 5,253 Balance at June 30 $ (2,740 ) $ (2,740 ) Three Months Ended June 30, 2019 Foreign Accumulated (In thousands) Balance at April 1 $ (191 ) $ (191 ) Other comprehensive loss (1,291 ) (1,291 ) Balance at June 30 $ (1,482 ) $ (1,482 ) Six Months Ended June 30, 2020 Foreign Accumulated (In thousands) Balance at January 1 $ (1,379 ) $ (1,379 ) Other comprehensive loss (1,361 ) (1,361 ) Balance at June 30 $ (2,740 ) $ (2,740 ) Six Months Ended June 30, 2019 Foreign Unrealized Gains (Losses) On Available-For-Sale Debt Securities Accumulated (In thousands) Balance at January 1 $ (1,864 ) $ 3 $ (1,861 ) Other comprehensive income (loss) 382 (3 ) 379 Balance at June 30 $ (1,482 ) $ — $ (1,482 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share attributable to ANGI Homeservices shareholders: Three Months Ended June 30, 2020 2019 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 13,211 $ 13,211 $ 7,234 $ 7,234 Net earnings attributable to noncontrolling interests (544 ) (544 ) (266 ) (266 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 12,667 $ 12,667 $ 6,968 $ 6,968 Denominator: Weighted average basic shares outstanding 495,769 495,769 506,725 506,725 Dilutive securities (a) (b) — 14,765 — 13,904 Denominator for earnings per share—weighted average shares 495,769 510,534 506,725 520,629 Earnings per share attributable to ANGI Homeservices Inc. shareholders: Earnings per share $ 0.03 $ 0.02 $ 0.01 $ 0.01 Six Months Ended June 30, 2020 2019 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 4,027 $ 4,027 $ 17,085 $ 17,085 Net earnings attributable to noncontrolling interests (318 ) (318 ) (148 ) (148 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 3,709 $ 3,709 $ 16,937 $ 16,937 Denominator: Weighted average basic shares outstanding 497,611 497,611 505,548 505,548 Dilutive securities (a) (b) — 11,136 — 16,313 Denominator for earnings per share—weighted average shares 497,611 508,747 505,548 521,861 Earnings per share attributable to ANGI Homeservices Inc. shareholders: Earnings per share $ 0.01 $ 0.01 $ 0.03 $ 0.03 ________________________ (a) If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options, subsidiary denominated equity, and vesting of restricted stock units ("RSUs"). For the three and six months ended June 30, 2020 , 4.9 million and 5.4 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For both the three and six months ended June 30, 2019, 4.2 million potentially dilutive securities are excluded from the calculation of diluted securities per share because their inclusion would have been anti-dilutive. (b) Market-based awards and performance-based stock units ("PSUs") are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For both the three and six months ended June 30, 2020, 3.4 million shares underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance condition(s) had not been met. For both the three and six months ended June 30, 2019 , 2.8 million |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segmented Revenue Disaggregated by Service | The following table presents revenue by reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Revenue: North America $ 357,417 $ 324,400 $ 681,549 $ 606,394 Europe 17,644 19,496 37,162 40,945 Total $ 375,061 $ 343,896 $ 718,711 $ 647,339 The following table presents the revenue of the Company's segments disaggregated by type of service: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) North America Marketplace: Consumer connection revenue (a) $ 272,649 $ 241,236 $ 512,479 $ 442,818 Service professional membership subscription revenue 13,017 16,302 26,794 32,702 Other revenue 7,507 3,753 12,676 6,271 Total Marketplace revenue 293,173 261,291 551,949 481,791 Advertising and other revenue (b) 64,244 63,109 129,600 124,603 Total North America revenue 357,417 324,400 681,549 606,394 Europe Consumer connection revenue (c) 13,945 15,232 29,634 32,355 Service professional membership subscription revenue 3,215 3,613 6,514 7,355 Advertising and other revenue 484 651 1,014 1,235 Total Europe revenue 17,644 19,496 37,162 40,945 Total revenue $ 375,061 $ 343,896 $ 718,711 $ 647,339 ________________________ (a) Includes fees paid by service professionals for consumer matches and revenue from pre-priced jobs sourced through the HomeAdvisor and Handy platforms. (b) Includes Angie's List revenue from service professionals under contract for advertising and Angie's List membership subscription fees from consumers, as well as revenue from mHelpDesk and HomeStars. (c) Includes fees paid by service professionals for consumer matches. |
Schedule of Revenue from External Customers by Geographic Areas | Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Revenue: United States $ 354,000 $ 320,701 $ 673,821 $ 599,179 All other countries 21,061 23,195 44,890 48,160 Total $ 375,061 $ 343,896 $ 718,711 $ 647,339 |
Schedule of Revenue and Long-lived Assets by Geographic Areas | June 30, 2020 December 31, 2019 (In thousands) Long-lived assets (excluding goodwill, intangible assets and ROU assets): United States $ 95,173 $ 95,822 All other countries 9,088 7,539 Total $ 104,261 $ 103,361 |
Schedule of Segment Reporting Information | The following tables present operating income (loss) and Adjusted EBITDA by reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Operating income (loss): North America $ 16,190 $ 12,473 $ 8,082 $ 13,215 Europe 1,454 (1,070 ) (6,734 ) (5,453 ) Total $ 17,644 $ 11,403 $ 1,348 $ 7,762 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Adjusted EBITDA (d) : North America $ 55,041 $ 51,606 $ 96,432 $ 91,295 Europe $ 2,895 $ (174 ) $ (4,099 ) $ (2,684 ) ________________________ (d) The Company’s primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of amortization of intangible assets and impairments of goodwill and intangible assets, if applicable. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between the Company's performance and that of its competitors. The above items are excluded from the Company's Adjusted EBITDA measure because these items are non-cash in nature. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses. |
Schedule of Reconciliation of Operating Income to Adjusted EBITDA | The following tables reconcile operating income (loss) to Adjusted EBITDA for the Company’s reportable segments: Three Months Ended June 30, 2020 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 16,190 $ 14,495 $ 11,467 $ 12,889 $ 55,041 Europe 1,454 $ 264 $ 1,088 $ 89 $ 2,895 Operating income 17,644 Interest expense (1,620 ) Other income, net 212 Earnings before income taxes 16,236 Income tax provision (3,025 ) Net earnings 13,211 Net earnings attributable to noncontrolling interests (544 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 12,667 Three Months Ended June 30, 2019 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 12,473 $ 17,387 $ 8,227 $ 13,519 $ 51,606 Europe (1,070 ) $ 133 $ 569 $ 194 $ (174 ) Operating income 11,403 Interest expense (2,963 ) Other income, net 1,047 Earnings before income taxes 9,487 Income tax provision (2,253 ) Net earnings 7,234 Net earnings attributable to noncontrolling interests (266 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 6,968 Six Months Ended June 30, 2020 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 8,082 $ 39,807 $ 22,764 $ 25,779 $ 96,432 Europe (6,734 ) $ 527 $ 1,929 $ 179 $ (4,099 ) Operating income 1,348 Interest expense (3,894 ) Other income, net 633 Loss before income taxes (1,913 ) Income tax benefit 5,940 Net earnings 4,027 Net earnings attributable to noncontrolling interests (318 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 3,709 Six Months Ended June 30, 2019 Operating Stock-based Depreciation Amortization Adjusted (In thousands) North America $ 13,215 $ 36,459 $ 14,434 $ 27,187 $ 91,295 Europe (5,453 ) $ 343 $ 1,361 $ 1,065 $ (2,684 ) Operating income 7,762 Interest expense (5,957 ) Other income, net 3,318 Earnings before income taxes 5,123 Income tax benefit 11,962 Net earnings 17,085 Net earnings attributable to noncontrolling interests (148 ) Net earnings attributable to ANGI Homeservices Inc. shareholders $ 16,937 |
CONSOLIDATED FINANCIAL STATEM_2
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: June 30, 2020 December 31, 2019 June 30, 2019 December 31, 2018 (In thousands) Cash and cash equivalents $ 420,985 $ 390,565 $ 380,563 $ 336,984 Restricted cash included in other current assets 379 504 1,419 1,417 Restricted cash included in other non-current assets 412 409 420 420 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 421,776 $ 391,478 $ 382,402 $ 338,821 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: June 30, 2020 December 31, 2019 June 30, 2019 December 31, 2018 (In thousands) Cash and cash equivalents $ 420,985 $ 390,565 $ 380,563 $ 336,984 Restricted cash included in other current assets 379 504 1,419 1,417 Restricted cash included in other non-current assets 412 409 420 420 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 421,776 $ 391,478 $ 382,402 $ 338,821 |
Schedule of Accumulated Amortization and Depreciation | The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category June 30, 2020 December 31, 2019 (In thousands) Right-of-use assets (included in "other non-current assets") $ 30,216 $ 19,416 Capitalized software, leasehold improvements and equipment $ 83,970 $ 68,227 Intangible assets $ 166,838 $ 141,208 |
Schedule of Other Income, Net | Other income, net Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Other income, net $ 212 $ 1,047 $633 $3,318 |
THE COMPANY AND SUMMARY OF SI_4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) service_professional in Thousands, project in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020USD ($)projectservice_professional | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)operating_segmentprojectservice_professionalservice_category | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Noncontrolling Interest [Line Items] | ||||||||
Number of service categories | service_category | 500 | |||||||
Number of service professionals (over) | service_professional | 230 | 230 | ||||||
Number of projects (more than) | project | 25 | 25 | ||||||
Number of operating segments | operating_segment | 2 | |||||||
Revenue from contracts with customers | $ 375,061,000 | $ 343,896,000 | $ 718,711,000 | $ 647,339,000 | ||||
Current deferred revenue | 58,091,000 | 58,091,000 | $ 58,220,000 | |||||
Noncurrent deferred revenue | 100,000 | 100,000 | 200,000 | |||||
Deferred revenue recognized during period | 49,500,000 | 50,500,000 | ||||||
Capitalized sales commissions where the customer relationship period is greater than one year | 47,400,000 | 47,400,000 | 39,100,000 | |||||
Current capitalized sales commissions | 44,300,000 | 44,300,000 | 35,100,000 | |||||
Non-current capitalized sales commissions | 3,100,000 | 3,100,000 | 4,000,000 | |||||
Revenue reserve | 2,000,000 | 2,000,000 | 1,200,000 | |||||
Allowance for doubtful accounts and revenue reserve | 27,991,000 | 27,991,000 | 20,293,000 | |||||
Stockholders' equity | $ 1,301,926,000 | 1,344,546,000 | $ 1,301,926,000 | 1,344,546,000 | $ 1,291,010,000 | 1,323,552,000 | $ 1,331,901,000 | $ 1,321,987,000 |
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected | us-gaap:AccountingStandardsUpdate201613ModifiedRetrospectiveMember | |||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Stockholders' equity | $ 0 | |||||||
ANGI Homeservices | Class B Common Stock | IAC | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Economic interest (as a percent) | 85.10% | 85.10% | ||||||
Voting interest (as a percent) | 98.30% | 98.30% | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Revenue from contracts with customers | $ 15,300,000 | $ 30,500,000 | ||||||
United States | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Revenue from contracts with customers | $ 354,000,000 | $ 320,701,000 | $ 673,821,000 | $ 599,179,000 | ||||
Revenue | Geographic Concentration Risk | United States | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Concentration risk (as a percent) | 94.00% | 94.00% |
THE COMPANY AND SUMMARY OF SI_5
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Credit Losses and Revenue Reserve (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 19,066 |
Current period provision for credit losses | 39,338 |
Write-offs charged against the allowance | (33,700) |
Recoveries collected | 1,283 |
Balance at end of period | $ 25,987 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | |||||
Income tax provision (benefit) | $ 3,025 | $ 2,253 | $ (5,940) | $ (11,962) | |
Effective income tax rate (as a percent) | 19.00% | 24.00% | |||
Reduction to deferred taxes | $ 5,700 | ||||
Unrecognized tax benefits, including interest | $ 3,900 | 3,900 | $ 4,100 | ||
Unrecognized tax benefits that if subsequently recognized would reduce income tax expense | 3,700 | 3,700 | $ 4,000 | ||
Decrease in unrecognized tax benefits is reasonably possible | 500 | 500 | |||
Federal and State Tax Credits | |||||
Income Tax Examination [Line Items] | |||||
Gross deferred tax asset | 178,200 | 178,200 | |||
Portion of deferred tax assets that will be utilized upon future reversal of deferred tax liabilities | 65,000 | 65,000 | |||
Portion of deferred tax assets that will be utilized based on forecasts of future taxable income | $ 113,200 | $ 113,200 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash equivalents | $ 333,986 | $ 314,850 |
Money market funds | ||
Assets: | ||
Cash equivalents | 156,063 | 291,810 |
Treasury discount notes | ||
Assets: | ||
Cash equivalents | 174,987 | |
Time deposits | ||
Assets: | ||
Cash equivalents | 2,936 | 23,040 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 156,063 | 291,810 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Cash equivalents | 156,063 | 291,810 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Treasury discount notes | ||
Assets: | ||
Cash equivalents | 0 | |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Time deposits | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 177,923 | 23,040 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Treasury discount notes | ||
Assets: | ||
Cash equivalents | 174,987 | |
Significant Other Observable Inputs (Level 2) | Time deposits | ||
Assets: | ||
Cash equivalents | 2,936 | 23,040 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Treasury discount notes | ||
Assets: | ||
Cash equivalents | 0 | |
Significant Unobservable Inputs (Level 3) | Time deposits | ||
Assets: | ||
Cash equivalents | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying value | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | $ (13,750) | $ (13,750) |
Long-term debt, net | (225,336) | (231,946) |
Unamortized debt issuance costs | 1,500 | 1,800 |
Fair value | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | (13,750) | (13,681) |
Long-term debt, net | $ (226,875) | $ (232,581) |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Term Loan due November 5, 2023 | $ 240,625 | $ 247,500 |
Less: current portion of Term Loan | 13,750 | 13,750 |
Less: unamortized debt issuance costs | 1,539 | 1,804 |
Total long-term debt, net | $ 225,336 | $ 231,946 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Nov. 05, 2018USD ($) | Nov. 01, 2017 | Jun. 30, 2020USD ($) | Nov. 05, 2023USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) |
Term Loan | Term Loan | |||||||
Debt Instrument | |||||||
Outstanding balance | $ 240,600,000 | $ 247,500,000 | |||||
Basis spread on variable rate (as a percent) | 1.70% | 3.25% | |||||
Term of debt instrument | 5 years | ||||||
Term Loan | Term Loan | Forecast | |||||||
Debt Instrument | |||||||
Quarterly repayments of principal | $ 10,300,000 | $ 6,900,000 | $ 3,400,000 | ||||
Final principal payment | $ 161,600,000 | ||||||
Term Loan | Term Loan | Minimum | |||||||
Debt Instrument | |||||||
Interest coverage ratio (not less than) | 2 | ||||||
Term Loan | Term Loan | Maximum | |||||||
Debt Instrument | |||||||
Net leverage ratio (not more than) | 4.5 | ||||||
Leverage ratio limiting ability to pay dividends, make distributions or repurchase stock | 4.25 | ||||||
Term Loan | Term Loan | LIBOR | |||||||
Debt Instrument | |||||||
Basis spread on variable rate (as a percent) | 1.50% | 1.50% | |||||
Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument | |||||||
Term of debt instrument | 5 years | ||||||
Maximum borrowing capacity of credit facility | $ 250,000,000 | ||||||
Outstanding borrowings under credit facility | $ 0 | $ 0 | |||||
Commitment fee rate (as a percent) | 0.25% | 0.25% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | $ 1,314,288 | |||
Other comprehensive income (loss) | $ 4,486 | $ (1,674) | (2,082) | $ 188 |
Balance at end of period | 1,292,322 | 1,292,322 | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | (7,993) | (191) | (1,379) | (1,861) |
Other comprehensive income (loss) | 5,253 | (1,291) | (1,361) | 379 |
Balance at end of period | (2,740) | (1,482) | (2,740) | (1,482) |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | (7,993) | (191) | (1,379) | (1,864) |
Other comprehensive income (loss) | 5,253 | (1,291) | (1,361) | 382 |
Balance at end of period | $ (2,740) | (1,482) | $ (2,740) | (1,482) |
Unrealized Gains (Losses) On Available-For-Sale Debt Securities | ||||
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | 3 | |||
Other comprehensive income (loss) | (3) | |||
Balance at end of period | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision (benefit) | $ 3,025,000 | $ 2,253,000 | $ (5,940,000) | $ (11,962,000) |
Accumulated other comprehensive (loss) income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision (benefit) | $ 0 | $ 0 |
EARNINGS PER SHARE - Summary (D
EARNINGS PER SHARE - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 13,211 | $ 7,234 | $ 4,027 | $ 17,085 |
Net earnings attributable to noncontrolling interests | (544) | (266) | (318) | (148) |
Net earnings attributable to ANGI Homeservices Inc. shareholders | $ 12,667 | $ 6,968 | $ 3,709 | $ 16,937 |
Weighted average basic shares outstanding (shares) | 495,769 | 506,725 | 497,611 | 505,548 |
Dilutive securities (shares) | 14,765 | 13,904 | 11,136 | 16,313 |
Weighted average diluted shares outstanding (shares) | 510,534 | 520,629 | 508,747 | 521,861 |
Earnings per share attributable to ANGI Homeservices Inc. shareholders: | ||||
Basic earnings per share (USD per share) | $ 0.03 | $ 0.01 | $ 0.01 | $ 0.03 |
Diluted earnings per share (USD per share) | $ 0.02 | $ 0.01 | $ 0.01 | $ 0.03 |
Stock appreciation rights, stock options, subsidiary denominated equity, and restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 4,900 | 4,200 | 5,400 | 4,200 |
PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 3,400 | 2,800 | 3,400 | 2,800 |
SEGMENT INFORMATION - Segmented
SEGMENT INFORMATION - Segmented Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ 375,061 | $ 343,896 | $ 718,711 | $ 647,339 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 357,417 | 324,400 | 681,549 | 606,394 |
North America | Marketplace revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 293,173 | 261,291 | 551,949 | 481,791 |
North America | Consumer connection revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 272,649 | 241,236 | 512,479 | 442,818 |
North America | Service professional membership subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 13,017 | 16,302 | 26,794 | 32,702 |
North America | Other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 7,507 | 3,753 | 12,676 | 6,271 |
North America | Advertising and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 64,244 | 63,109 | 129,600 | 124,603 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 17,644 | 19,496 | 37,162 | 40,945 |
Europe | Advertising and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 484 | 651 | 1,014 | 1,235 |
Europe | Consumer connection revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 13,945 | 15,232 | 29,634 | 32,355 |
Europe | Service professional membership subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ 3,215 | $ 3,613 | $ 6,514 | $ 7,355 |
SEGMENT INFORMATION - Revenue a
SEGMENT INFORMATION - Revenue and Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue and Long-lived Assets by Geography | |||||
Revenue: | $ 375,061 | $ 343,896 | $ 718,711 | $ 647,339 | |
Long-lived assets (excluding goodwill, intangible assets and ROU assets): | 104,261 | 104,261 | $ 103,361 | ||
United States | |||||
Revenue and Long-lived Assets by Geography | |||||
Revenue: | 354,000 | 320,701 | 673,821 | 599,179 | |
Long-lived assets (excluding goodwill, intangible assets and ROU assets): | 95,173 | 95,173 | 95,822 | ||
All other countries | |||||
Revenue and Long-lived Assets by Geography | |||||
Revenue: | 21,061 | $ 23,195 | 44,890 | $ 48,160 | |
Long-lived assets (excluding goodwill, intangible assets and ROU assets): | $ 9,088 | $ 9,088 | $ 7,539 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 17,644 | $ 11,403 | $ 1,348 | $ 7,762 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 16,190 | 12,473 | 8,082 | 13,215 |
Adjusted EBITDA | 55,041 | 51,606 | 96,432 | 91,295 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 1,454 | (1,070) | (6,734) | (5,453) |
Adjusted EBITDA | $ 2,895 | $ (174) | $ (4,099) | $ (2,684) |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting, Other Significant Reconciling Item | ||||
Operating income (loss) | $ 17,644 | $ 11,403 | $ 1,348 | $ 7,762 |
Stock-based compensation expense | 14,759 | 17,520 | 40,334 | 36,802 |
Depreciation | 12,555 | 8,796 | 24,693 | 15,795 |
Amortization of intangibles | 12,978 | 13,713 | 25,958 | 28,252 |
Interest expense—third party | (1,620) | (2,963) | (3,894) | (5,957) |
Other income, net | 212 | 1,047 | 633 | 3,318 |
Earnings (loss) before income taxes | 16,236 | 9,487 | (1,913) | 5,123 |
Income tax provision | (3,025) | (2,253) | 5,940 | 11,962 |
Net earnings | 13,211 | 7,234 | 4,027 | 17,085 |
Net earnings (loss) attributable to noncontrolling interests | (544) | (266) | (318) | (148) |
Net earnings attributable to ANGI Homeservices Inc. shareholders | 12,667 | 6,968 | 3,709 | 16,937 |
North America | ||||
Segment Reporting, Other Significant Reconciling Item | ||||
Operating income (loss) | 16,190 | 12,473 | 8,082 | 13,215 |
Stock-based compensation expense | 14,495 | 17,387 | 39,807 | 36,459 |
Depreciation | 11,467 | 8,227 | 22,764 | 14,434 |
Amortization of intangibles | 12,889 | 13,519 | 25,779 | 27,187 |
Adjusted EBITDA | 55,041 | 51,606 | 96,432 | 91,295 |
Europe | ||||
Segment Reporting, Other Significant Reconciling Item | ||||
Operating income (loss) | 1,454 | (1,070) | (6,734) | (5,453) |
Stock-based compensation expense | 264 | 133 | 527 | 343 |
Depreciation | 1,088 | 569 | 1,929 | 1,361 |
Amortization of intangibles | 89 | 194 | 179 | 1,065 |
Adjusted EBITDA | $ 2,895 | $ (174) | $ (4,099) | $ (2,684) |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 420,985 | $ 390,565 | $ 380,563 | $ 336,984 |
Restricted cash included in other current assets | 379 | 504 | 1,419 | 1,417 |
Restricted cash included in other non-current assets | 412 | 409 | 420 | 420 |
Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows | $ 421,776 | $ 391,478 | $ 382,402 | $ 338,821 |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accumulated Amortization and Depreciation (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Depreciation, Depletion and Amortization [Abstract] | ||
Right-of-use assets (included in other non-current assets) | $ 30,216 | $ 19,416 |
Capitalized software, leasehold improvements and equipment | 83,970 | 68,227 |
Intangible assets | $ 166,838 | $ 141,208 |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Other income, net | $ 212 | $ 1,047 | $ 633 | $ 3,318 |
CONSOLIDATED FINANCIAL STATEM_6
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest income | $ 0.2 | $ 2.2 | $ 1.4 | $ 4.3 |
Mark-to-market charge for indemnification claim | $ (1.1) | (0.2) | (1.1) | |
Net foreign currency exchange gain (loss) | $ (0.3) | $ 0.3 |
CONTINGENCIES - Narrative (Deta
CONTINGENCIES - Narrative (Details) | Jun. 30, 2020USD ($)lawsuit |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency reserve | $ | $ 0 |
Number of lawsuits with possible material impact (one or more) | lawsuit | 1 |
RELATED PARTY TRANSACTIONS WI_2
RELATED PARTY TRANSACTIONS WITH IAC - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||
Refunds received | $ 3,071,000 | |||||
Distribution to IAC pursuant to the tax sharing agreement | $ 11,355,000 | |||||
IAC | Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Charges for services rendered pursuant to the services agreement | $ 1,200,000 | $ 1,300,000 | 2,400,000 | 2,700,000 | ||
Outstanding receivable due | 0 | 0 | $ 0 | |||
Outstanding payables due | 0 | 0 | 0 | |||
IAC | Sublease Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | 400,000 | $ 500,000 | 900,000 | $ 500,000 | ||
IAC | Tax Sharing Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding payables due | 700,000 | 700,000 | $ 200,000 | |||
Refunds received | $ 3,100,000 | $ 3,100,000 | ||||
Distribution to IAC pursuant to the tax sharing agreement | $ 11,400,000 | |||||
IAC | Employee Matters Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Shares received from related party pursuant to employee matters agreement (shares) | 0 | 100,000 | 200,000 | 300,000 |