Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Annual Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38220 | |
Entity Registrant Name | Angi 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 $0.001 | |
Trading Symbol | ANGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001705110 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 80,322,073 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 422,019,247 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 391,286 | $ 428,136 |
Accounts receivable, net of reserves of $37,813 and $36,360, respectively | 100,043 | 84,387 |
Other current assets | 67,646 | 70,548 |
Total current assets | 558,975 | 583,071 |
Capitalized software, leasehold improvements and equipment, net | 138,032 | 118,267 |
Goodwill | 913,384 | 916,039 |
Intangible assets, net | 189,819 | 193,826 |
Deferred income taxes | 131,240 | 122,693 |
Other non-current assets, net | 73,373 | 76,245 |
TOTAL ASSETS | 2,004,823 | 2,010,141 |
LIABILITIES: | ||
Accounts payable | 56,558 | 38,860 |
Deferred revenue | 55,255 | 53,834 |
Accrued expenses and other current liabilities | 194,499 | 183,815 |
Total current liabilities | 306,312 | 276,509 |
Long-term debt, net | 494,730 | 494,552 |
Deferred income taxes | 2,269 | 1,883 |
Other long-term liabilities | 87,079 | 91,670 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY: | ||
Additional paid-in capital | 1,361,540 | 1,350,457 |
Accumulated deficit | (95,019) | (61,629) |
Accumulated other comprehensive income | 2,506 | 3,309 |
Treasury stock, 20,211 and 19,167 shares, respectively | (166,184) | (158,040) |
Total Angi Inc. shareholders’ equity | 1,103,365 | 1,134,619 |
Noncontrolling interests | 11,068 | 10,908 |
Total shareholders’ equity | 1,114,433 | 1,145,527 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,004,823 | 2,010,141 |
Class A Common Stock | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, value | 100 | 100 |
Class B Common Stock | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, value | 422 | 422 |
Class C Common Stock | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, value | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance for credit loss | $ 37,813 | $ 36,360 |
Treasury stock (shares) | 20,211,000 | 19,167,000 |
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) | 100,425,000 | 99,745,000 |
Common stock outstanding (shares) | 80,214,000 | 80,578,000 |
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) | 422,019,000 | 422,019,000 |
Common stock outstanding (shares) | 422,019,000 | 422,019,000 |
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 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | $ 436,159 | $ 387,029 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 98,998 | 53,828 |
Selling and marketing expense | 225,801 | 205,840 |
General and administrative expense | 109,655 | 88,162 |
Product development expense | 17,859 | 18,047 |
Depreciation | 13,999 | 15,969 |
Amortization of intangibles | 3,804 | 5,074 |
Total operating costs and expenses | 470,116 | 386,920 |
Operating (loss) income | (33,957) | 109 |
Interest expense | (5,022) | (6,617) |
Nonoperating Income (Expense) | (391) | (767) |
Loss before income taxes | (39,370) | (7,275) |
Income tax benefit | 6,083 | 9,289 |
Net (loss) earnings | (33,287) | 2,014 |
Net earnings attributable to noncontrolling interests | (103) | (83) |
Net (loss) earnings attributable to Angi Inc. Class A and Class B Common Stock shareholders | $ (33,390) | $ 1,931 |
Per share information attributable to Angi Inc. shareholders: | ||
Basic (loss) earnings per share (USD per share) | $ (0.07) | $ 0 |
Diluted (loss) earnings per share (USD per share) | $ (0.07) | $ 0 |
Stock-based compensation expense by function: | ||
Stock-based compensation expense | $ 12,985 | $ 2,034 |
Selling and marketing expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 1,239 | 1,017 |
General and administrative expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 9,635 | 84 |
Product development expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | $ 2,111 | $ 933 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) earnings | $ (33,287) | $ 2,014 |
Other comprehensive (loss) income: | ||
Change in foreign currency translation adjustment | (746) | 679 |
Other comprehensive (loss) income | (746) | 679 |
Comprehensive (loss) income | (34,033) | 2,693 |
Components of comprehensive income attributable to noncontrolling interests: | ||
Net earnings attributable to noncontrolling interests | (103) | (83) |
Change in foreign currency translation adjustment attributable to noncontrolling interests | (57) | (693) |
Comprehensive income attributable to noncontrolling interests | (160) | (776) |
Comprehensive loss attributable to Angi Inc. shareholders | $ (34,193) | $ 1,917 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Noncontrolling Interests | Total Angi Inc. Shareholders' Equity | Common StockClass A Common Stock $0.001 Par Value | Common StockClass B Convertible Common Stock $0.001 Par Value | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interests |
Balance at beginning of period at Dec. 31, 2020 | $ 26,364 | |||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | ||||||||||
Net (loss) earnings | (60) | |||||||||
Other comprehensive income (loss) | 580 | |||||||||
Purchase of noncontrolling interests | $ (22,938) | |||||||||
Adjustment of redeemable noncontrolling interests to fair value | 662 | |||||||||
Balance at end of period at Mar. 31, 2021 | 4,608 | |||||||||
Balance at beginning of period at Dec. 31, 2020 | 1,282,857 | $ 1,272,290 | $ 94 | $ 422 | $ 1,379,469 | $ 9,749 | $ 4,637 | $ (122,081) | $ 10,567 | |
Balance at beginning of period (shares) at Dec. 31, 2020 | 94,238 | 421,862 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net (loss) earnings | 2,074 | 1,931 | 1,931 | 143 | ||||||
Other comprehensive income (loss) | 99 | (14) | (14) | 113 | ||||||
Stock-based compensation expense | 2,542 | 2,542 | 2,542 | |||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (48,051) | (48,051) | $ 1 | (48,052) | ||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 1,591 | |||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement | 0 | $ 3 | (3) | |||||||
Issuance of common stock to IAC pursuant to the employee matters agreement (shares) | 2,579 | 96 | ||||||||
Purchase of treasury stock | (4,916) | (4,916) | (4,916) | |||||||
Adjustment of redeemable noncontrolling interests to fair value | (662) | (662) | (662) | |||||||
Balance at end of period at Mar. 31, 2021 | 1,233,943 | 1,223,120 | $ 98 | $ 422 | 1,333,294 | 11,680 | 4,623 | (126,997) | 10,823 | |
Balance at end of period (shares) at Mar. 31, 2021 | 98,408 | 421,958 | ||||||||
Balance at beginning of period at Dec. 31, 2021 | 0 | |||||||||
Balance at end of period at Mar. 31, 2022 | $ 0 | |||||||||
Balance at beginning of period at Dec. 31, 2021 | 1,145,527 | 1,134,619 | $ 100 | $ 422 | 1,350,457 | (61,629) | 3,309 | (158,040) | 10,908 | |
Balance at beginning of period (shares) at Dec. 31, 2021 | 99,745 | 422,019 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net (loss) earnings | (33,287) | (33,390) | (33,390) | 103 | ||||||
Other comprehensive income (loss) | (746) | (803) | (803) | 57 | ||||||
Stock-based compensation expense | 13,556 | 13,556 | 13,556 | |||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (2,473) | (2,473) | (2,473) | |||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 681 | |||||||||
Purchase of treasury stock | (8,144) | (8,144) | (8,144) | |||||||
Balance at end of period at Mar. 31, 2022 | $ 1,114,433 | $ 1,103,365 | $ 100 | $ 422 | $ 1,361,540 | $ (95,019) | $ 2,506 | $ (166,184) | $ 11,068 | |
Balance at end of period (shares) at Mar. 31, 2022 | 100,426 | 422,019 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
Class A Common Stock $0.001 Par Value | ||
Common stock, par value (USD per share) | $ 0.001 | |
Class A Common Stock $0.001 Par Value | Common Stock | ||
Common stock, par value (USD per share) | 0.001 | $ 0.001 |
Class B Convertible Common Stock $0.001 Par Value | ||
Common stock, par value (USD per share) | 0.001 | |
Class B Convertible Common Stock $0.001 Par Value | Common Stock | ||
Common stock, par value (USD per share) | 0.001 | 0.001 |
Class C Common Stock $0.001 Par Value | ||
Common stock, par value (USD per share) | 0.001 | |
Class C Common Stock $0.001 Par Value | Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) earnings | $ (33,287) | $ 2,014 |
Adjustments to reconcile net (loss) earnings to net cash (used in) provided by operating activities: | ||
Provision for credit losses | 21,611 | 19,118 |
Stock-based compensation expense | 12,985 | 2,034 |
Depreciation | 13,999 | 15,969 |
Amortization of intangibles | 3,804 | 5,074 |
Deferred income taxes | (8,133) | (10,268) |
Impairment of long-lived and right-of-use assets | 22 | 2,503 |
Non-cash lease expense | 3,352 | 3,275 |
Revenue reserves | 1,506 | 2,910 |
Other adjustments, net | (215) | 1,586 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||
Accounts receivable | (37,757) | (34,638) |
Other assets | 1,930 | (2,702) |
Accounts payable and other liabilities | 20,601 | 8,804 |
Operating lease liabilities | (4,454) | (4,265) |
Income taxes payable and receivable | 1,909 | 938 |
Deferred revenue | 1,392 | 2,993 |
Net cash (used in) provided by operating activities | (735) | 15,345 |
Cash flows from investing activities: | ||
Capital expenditures | (26,903) | (18,743) |
Proceeds from maturities of marketable debt securities | 50,000 | |
Proceeds from sale of fixed assets | 87 | 0 |
Net cash (used in) provided by investing activities | (26,816) | 31,257 |
Cash flows from financing activities: | ||
Principal payments on Term Loan | 0 | (6,875) |
Purchase of treasury stock | (8,144) | (4,916) |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (1,322) | (48,168) |
Purchase of noncontrolling interests | 0 | (22,938) |
Net cash used in financing activities | (9,466) | (82,897) |
Total cash used | (37,017) | (36,295) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (205) | 384 |
Net decrease in cash and cash equivalents and restricted cash | (37,222) | (35,911) |
Cash and cash equivalents and restricted cash at beginning of period | 429,485 | 813,561 |
Cash and cash equivalents and restricted cash at end of period | $ 392,263 | $ 777,650 |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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 Inc. (“Angi,” the “Company,” “we,” “our,” or “us”) connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. Over 239,000 domestic service professionals actively sought consumer matches, completed jobs, or advertised work through Angi Inc. platforms during the three months ended March 31, 2022. Additionally, consumers turned to at least one of our brands to find a service professional for approximately 32 million projects during the twelve months ended March 31, 2022. The Company has two operating segments: (i) North America (United States and Canada), which includes Angi Ads, Angi Leads, and Angi Services; and (ii) Europe. In March 2021, the Company rebranded its North American brands which operate as follows: Angi Ads operates under the Angi brand, Angi Leads operates primarily under the HomeAdvisor, powered by Angi brand, and Angi Services operates primarily under the Handy and Angi Roofing brands. As used herein, “Angi,” the “Company,” “we,” “our,” “us,” and similar terms refer to Angi Inc. and its subsidiaries (unless the context requires otherwise). At March 31, 2022, IAC/InterActiveCorp (“IAC”) owned 84.5% and 98.2% of the economic interest and voting interest, respectively, of the Company. 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. All intercompany transactions and balances between and among the Company and its subsidiaries have been eliminated. All intercompany transactions between (i) Angi Inc. and (ii) IAC and its subsidiaries are considered to be effectively settled for cash at the time the transaction is recorded. See “ Note 10—Related Party Transactions with IAC ” for additional information on transactions between Angi Inc. and IAC. The Company is included within IAC’s tax group for purposes of federal and consolidated state income tax return filings. For the purpose of these financial statements, income taxes have been computed on an as if standalone, separate 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, 2021. COVID-19 Update The impact on the Company from the COVID-19 pandemic and the measures designed to contain its spread has been varied and volatile. As previously disclosed, the impact of COVID-19 on the Company initially resulted in a decline in demand for service requests, driven primarily by decreases in demand in certain categories of jobs (particularly discretionary indoor projects). While we experienced a rebound in service requests from mid-2020 through early 2021, service requests started to decline in May 2021 and continued to decline into the first quarter of 2022 because of Angi Inc.’s brand integration that began in March 2021 and, in late 2021 and early 2022, the Omicron variant surge. Moreover, many service professionals’ businesses have been and continue to be adversely impacted by labor and material constraints and many service professionals have limited capacity to take on new business, which continues to negatively impact our ability to monetize service requests. Although our ability to monetize service requests rebounded modestly in the second half of 2021 and first quarter of 2022, we still have not returned to levels we experienced pre-COVID-19. No assurances can be provided that we will continue to be able to improve monetization, or that service professionals’ businesses and, as a consequence, our revenue and profitability will not continue to be adversely impacted in the future. The extent to which developments related to the COVID-19 pandemic 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 continuing spread of COVID-19, the severity of resurgences of COVID-19 caused by variant strains of the virus, the effectiveness of vaccines and attitudes toward receiving them, materials and supply chain constraints, labor shortages, the scope of governmental and other restrictions on travel, discretionary services and other activity, and public reactions to these developments. 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 and marketable debt securities; the carrying value of accounts receivable, including the determination of the allowance for credit losses and the determination of revenue reserves; the determination of the customer relationship period for certain costs to obtain a contract with a customer; 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 goods or services 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 goods or services. The Company’s disaggregated revenue disclosures are presented in “ Note 7—Segment Information .” Deferred Revenue Deferred revenue consists of payments that are received or are contractually due in advance of the Company’s performance obligation. 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 remaining term of the applicable subscription period or expected completion of its performance obligation is one year or less. At December 31, 2021, the current and non-current deferred revenue balances were $53.8 million and $0.1 million, respectively, and during the three months ended March 31, 2022, the Company recognized $35.5 million of revenue that was included in the deferred revenue balance as of December 31, 2021. At December 31, 2020, the current and non-current deferred revenue balances were $54.7 million and $0.2 million, respectively, and during the three months ended March 31, 2021, the Company recognized $34.4 million of revenue that was included in the deferred revenue balance as of December 31, 2020. The current and non-current deferred revenue balances at March 31, 2022 are $55.3 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 Standard Codification (“ASC”) 606, 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. Commissions Paid to Employees Pursuant to Sales Incentive Programs The Company has determined that commissions paid to employees pursuant to certain sales incentive programs meet the requirements to be capitalized as the incremental costs to obtain a contract with a customer. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. Capitalized commissions paid to employees pursuant to these sales incentive programs are amortized over the estimated customer relationship period. The Company calculates the anticipated customer relationship period as the average customer life, which is based on historical data. For sales incentive programs where the anticipated customer relationship period is one year or less, the Company has elected the practical expedient to expense the commissions as incurred. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company uses a portfolio approach to assess the accounting treatment of the incremental costs to obtain a contract with a customer. The Company recognizes an asset for these costs if we expect to recover those costs. To the extent that these costs are capitalized, the resultant asset is amortized on a systematic basis consistent with the pattern of the transfer of the services to which the asset relates. The current contract assets are $40.6 million and $38.0 million at March 31, 2022 and December 31, 2021, respectively. The non-current assets are $1.3 million and $1.1 million at March 31, 2022 and December 31, 2021, respectively. The current and non-current capitalized costs to obtain a contract with a customer are included in “Other current assets” and “Other non-current assets” in the accompanying balance sheet. Recent Accounting Pronouncements There are no recently issued accounting pronouncements adopted or that have not yet been adopted by the Company that are expected to have a material effect on the results of operations, financial condition, or cash flows of the Company. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company is included within IAC’s tax group for purposes of federal and consolidated state income tax return filings. In all periods presented, the income tax benefit and/or provision has 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 realization 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 or benefit in the quarter in which the change occurs. For the three months ended March 31, 2022, the Company recorded an income tax benefit of $6.1 million, which represents an effective income tax rate of 15%. For the three months ended March 31, 2022, the effective income tax rate is lower than the statutory rate of 21% due primarily to tax shortfalls generated by the exercise and vesting for stock-based awards and foreign income taxed at different tax rates. For the three months ended March 31, 2021, the Company recorded an income tax benefit of $9.3 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 are not material and there are currently no accruals for penalties. At March 31, 2022 and December 31, 2021, the Company has unrecognized tax benefits of $6.6 million and $6.3 million, respectively; all of which are for tax positions included in IAC’s consolidated tax return filings. If unrecognized tax benefits at March 31, 2022 are subsequently recognized, the income tax provision would be reduced by $6.3 million. The comparable amount as of December 31, 2021 is $6.0 million. 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. At March 31, 2022, the Company has a U.S. gross deferred tax asset of $219.3 million that the Company expects to fully utilize on a more likely than not basis. Of this amount, $49.7 million will be utilized upon the future reversal of deferred tax liabilities and the remaining net deferred tax asset of $169.6 million will be utilized based on forecasts of future taxable income. The Company’s most significant net deferred tax asset relates to U.S. federal net operating loss (“NOL”) carryforwards of $124.6 million. The Company expects to generate sufficient future taxable income of at least $593.4 million prior to the expiration of these NOLs, the majority of which expire between 2030 and 2037, and a portion of which never expire, to fully realize this deferred tax asset. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Marketable Debt Securities The Company did not hold any available-for-sale marketable debt securities at March 31, 2022 and December 31, 2021. 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: March 31, 2022 Quoted Market Prices for Identical Assets in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 250,077 $ — $ — $ 250,077 Total $ 250,077 $ — $ — $ 250,077 December 31, 2021 Quoted Market Prices for Identical Assets in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 280,052 $ — $ — $ 280,052 Total $ 280,052 $ — $ — $ 280,052 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: March 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt, net (a) $ (494,730) $ (421,500) $ (494,552) $ (486,875) ________________________ (a) At March 31, 2022 and December 31, 2021, the carrying value of long-term debt, net includes unamortized debt issuance costs of $5.3 million and $5.4 million, respectively . The fair value of long-term debt is estimated using observable market prices or indices for similar liabilities, which are Level 2 inputs. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of: March 31, 2022 December 31, 2021 (In thousands) 3.875% ANGI Group Senior Notes due August 15, 2028 (“ANGI Group Senior Notes”); interest payable each February 15 and August 15, which commenced February 15, 2021 $ 500,000 $ 500,000 Total long-term debt 500,000 500,000 Less: unamortized debt issuance costs 5,270 5,448 Total long-term debt, net $ 494,730 $ 494,552 ANGI Group Senior Notes The indenture governing the ANGI Group Senior Notes contains a covenant that would limit ANGI Group’s ability to incur liens for borrowed money in the event a default has occurred or ANGI Group’s secured leverage ratio (as defined in the indenture) exceeds 3.75 to 1.0. At March 31, 2022, there were no limitations pursuant thereto. ANGI Group Revolving Facility The $250 million ANGI Group Revolving Facility, which otherwise would have expired on November 5, 2023, was terminated effective August 3, 2021. No amounts were ever drawn under the ANGI Group Revolving Facility prior to its termination. ANGI Group Term Loan |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOMEThe following tables presents the components of accumulated other comprehensive income and items reclassified out of accumulated other comprehensive income into earnings: Three Months Ended March 31, 2022 2021 Foreign Accumulated Other Comprehensive Income Foreign Accumulated Other Comprehensive Income (In thousands) Balance at January 1 $ 3,309 $ 3,309 $ 4,637 $ 4,637 Other comprehensive loss (803) (803) (14) (14) Balance at March 31 $ 2,506 $ 2,506 $ 4,623 $ 4,623 At both March 31, 2022 and 2021, there was no tax benefit or provision on the accumulated other comprehensive income. |
(LOSS) EARNINGS PER SHARE
(LOSS) EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
(LOSS) EARNINGS PER SHARE | (LOSS) EARNINGS PER SHAREThe following table sets forth the computation of basic and diluted (loss) earnings per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net (loss) earnings $ (33,287) $ (33,287) $ 2,014 $ 2,014 Net earnings attributable to noncontrolling interests (103) (103) (83) (83) Net (loss) earnings attributable to Angi Inc. Class A and Class B Common Stock shareholders $ (33,390) $ (33,390) $ 1,931 $ 1,931 Denominator: Weighted average basic Class A and Class B common stock shares outstanding 502,005 502,005 500,663 500,663 Dilutive securities (a) (b) — — — 9,990 Denominator for (loss) earnings per share—weighted average shares 502,005 502,005 500,663 510,653 (Loss) earnings per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: (Loss) earnings per share $ (0.07) $ (0.07) $ 0.00 $ 0.00 ________________________ (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 and subsidiary denominated equity and vesting of restricted stock units (“RSUs”). For the three months ended March 31, 2022 and 2021, 25.1 million and 5.2 million of potentially dilutive securities, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts. (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 the three months ended March 31, 2022 and 2021, 4.5 million and 1.4 million underlying market-based awards and PSUs, respectively, were excluded from the calculation of diluted earnings per share because the market or performance condition(s) had not been met. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has determined its operating segments consistent with how the chief operating decision maker views the businesses. Additionally, the Company considers how the businesses are organized as to segment management and the focus of the businesses with regards to the types of services or products offered or the target market. The following table presents revenue by reportable segment: Three Months Ended March 31, 2022 2021 (In thousands) Revenue: North America $ 411,172 $ 361,041 Europe 24,987 25,988 Total $ 436,159 $ 387,029 The following table presents the revenue of the Company’s segments disaggregated by type of service: Three Months Ended March 31, 2022 2021 (In thousands) North America Angi Ads and Leads: Consumer connection revenue (a) $ 212,796 $ 221,430 Advertising revenue (b) 63,776 60,747 Membership subscription revenue (c) 16,237 16,882 Other revenue 5,226 7,278 Total Angi Ads and Leads revenue 298,035 306,337 Angi Services revenue (d) 113,137 54,704 Total North America revenue 411,172 361,041 Europe Consumer connection revenue (e) 21,803 22,351 Service professional membership subscription revenue 2,890 3,328 Advertising and other revenue 294 309 Total Europe revenue 24,987 25,988 Total revenue $ 436,159 $ 387,029 ________________________ (a) Includes fees paid by service professionals for consumer matches through the Angi Ads and Leads platforms. (b) Includes revenue from service professionals under contract for advertising. (c) Includes membership subscription revenue from service professionals and consumers. (d) Includes revenue from pre-priced offerings and revenue from Angi Roofing. (e) Includes fees paid by service professionals for consumer matches. Geographic information about revenue and long-lived assets is presented below. Three Months Ended March 31, 2022 2021 (In thousands) Revenue United States $ 405,508 $ 356,444 All other countries 30,651 30,585 Total $ 436,159 $ 387,029 March 31, 2022 December 31, 2021 (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 131,338 $ 111,136 All other countries 6,694 7,131 Total $ 138,032 $ 118,267 The following tables present operating loss and Adjusted EBITDA by reportable segment: Three Months Ended March 31, 2022 2021 (In thousands) Operating loss: North America $ (29,654) $ 9,577 Europe (4,303) (9,468) Total $ (33,957) $ 109 Three Months Ended March 31, 2022 2021 (In thousands) Adjusted EBITDA (f) : North America $ 341 $ 31,165 Europe $ (3,510) $ (7,979) (f) The Company’s primary financial measure is Adjusted EBITDA, which is defined as operating loss 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 following tables reconcile operating loss for the Company’s reportable segments and net loss attributable to Angi Inc. shareholders to Adjusted EBITDA: Three Months Ended March 31, 2022 Operating Loss Stock-Based Depreciation Amortization Adjusted (In thousands) North America $ (29,654) $ 12,994 $ 13,197 $ 3,804 $ 341 Europe (4,303) $ (9) $ 802 $ — $ (3,510) Operating loss (33,957) Interest expense (5,022) Other expense, net (391) Loss before income taxes (39,370) Income tax benefit 6,083 Net loss (33,287) Net earnings attributable to noncontrolling interests (103) Net loss attributable to Angi Inc. shareholders $ (33,390) Three Months Ended March 31, 2021 Operating Income (Loss) Stock-Based Depreciation Amortization Adjusted (In thousands) North America $ 9,577 $ 1,936 $ 14,578 $ 5,074 $ 31,165 Europe (9,468) $ 98 $ 1,391 $ — $ (7,979) Operating loss 109 Interest expense (6,617) Other income, net (767) Loss before income taxes (7,275) Income tax benefit 9,289 Net earnings 2,014 Net earnings attributable to noncontrolling interests (83) Net earnings attributable to Angi Inc. shareholders $ 1,931 |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 3 Months Ended |
Mar. 31, 2022 | |
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 accompanying balance sheet to the total amounts shown in the accompanying statement of cash flows: March 31, 2022 December 31, 2021 March 31, 2021 December 31, 2020 (In thousands) Cash and cash equivalents $ 391,286 $ 428,136 $ 777,041 $ 812,705 Restricted cash included in other current assets 92 156 176 407 Restricted cash included in other non-current assets 885 1,193 433 449 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 392,263 $ 429,485 $ 777,650 $ 813,561 Restricted cash included in other current assets at March 31, 2022 primarily consisted of cash reserved to fund insurance claims. Restricted cash included in other current assets at December 31, 2021, March 31, 2021 and December 31, 2020 consisted of cash reserved to fund insurance claims and cash received from customers through the marketplace platforms, representing funds collected for payments to service providers, which were not settled as of the period end. Restricted cash included in other non-current assets for all periods presented above primarily consisted of deposits related to leases. Restricted cash included in other non-current assets at March 31, 2022 and December 31, 2021 also included cash held related to a check endorsement guarantee for Angi Roofing. Credit Losses and Revenue Reserve The following table presents the changes in the credit loss reserve for the three months ended March 31, 2022 and 2021: 2022 2021 (In thousands) Balance at January 1 $ 33,652 $ 26,046 Current period provision for credit losses 21,586 19,118 Write-offs charged against the credit loss reserve (21,371) (20,570) Recoveries collected 1,213 758 Balance at March 31 $ 35,080 $ 25,352 The revenue reserve was $2.7 million and $3.5 million at March 31, 2022 and 2021, respectively. The total allowance for credit losses and revenue reserve was $37.8 million and $28.9 million as of March 31, 2022 and 2021, respectively. Accumulated Amortization and Depreciation The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category March 31, 2022 December 31, 2021 (In thousands) Right-of-use assets (included in “other non-current assets”) $ 45,622 $ 40,757 Capitalized software, leasehold improvements, and equipment $ 119,026 $ 108,235 Intangible assets $ 162,346 $ 159,356 Other expense, net Three Months Ended March 31, 2022 2021 Interest income $ 64 $ 97 Foreign exchange losses (456) (860) Other 1 (4) Other expense, net $ (391) $ (767) |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
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. As a result, a $4 million legal reserve is established. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable. Although management currently believes that resolving claims against us, 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 | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS WITH IAC | RELATED PARTY TRANSACTIONS WITH IACAngi Inc. and IAC have entered into certain agreements to govern their relationship. 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 months ended March 31, 2022 and 2021, the Company was charged $0.4 million and $1.1 million, respectively, by IAC for services rendered pursuant to the services agreement. There was $0.5 million of outstanding receivables pursuant to the services agreement at March 31, 2022 and no outstanding receivables pursuant to the services agreement at December 31, 2021. There were no outstanding payables pursuant to the services agreement at March 31, 2022 or December 31, 2021. Additionally, the Company subleases office space to IAC and charged IAC $0.4 million and $0.4 million of rent for the three months ended March 31, 2022 and 2021, respectively. IAC subleases office space to the Company and charged the Company $0.3 million of rent for the three months ended March 31, 2022. At March 31, 2022 and December 31, 2021, there were no outstanding receivables or payables pursuant to the sublease agreements. |
THE COMPANY AND SUMMARY OF SI_2
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Angi Inc. (“Angi,” the “Company,” “we,” “our,” or “us”) connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. Over 239,000 domestic service professionals actively sought consumer matches, completed jobs, or advertised work through Angi Inc. platforms during the three months ended March 31, 2022. Additionally, consumers turned to at least one of our brands to find a service professional for approximately 32 million projects during the twelve months ended March 31, 2022. The Company has two operating segments: (i) North America (United States and Canada), which includes Angi Ads, Angi Leads, and Angi Services; and (ii) Europe. In March 2021, the Company rebranded its North American brands which operate as follows: Angi Ads operates under the Angi brand, Angi Leads operates primarily under the HomeAdvisor, powered by Angi brand, and Angi Services operates primarily under the Handy and Angi Roofing brands. As used herein, “Angi,” the “Company,” “we,” “our,” “us,” and similar terms refer to Angi Inc. and its subsidiaries (unless the context requires otherwise). At March 31, 2022, IAC/InterActiveCorp (“IAC”) owned 84.5% and 98.2% of the economic interest and voting interest, respectively, of the Company. |
Basis of Presentation and 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. All intercompany transactions and balances between and among the Company and its subsidiaries have been eliminated. All intercompany transactions between (i) Angi Inc. and (ii) IAC and its subsidiaries are considered to be effectively settled for cash at the time the transaction is recorded. See “ Note 10—Related Party Transactions with IAC ” for additional information on transactions between Angi Inc. and IAC. The Company is included within IAC’s tax group for purposes of federal and consolidated state income tax return filings. For the purpose of these financial statements, income taxes have been computed on an as if standalone, separate 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, 2021. |
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 and marketable debt securities; the carrying value of accounts receivable, including the determination of the allowance for credit losses and the determination of revenue reserves; the determination of the customer relationship period for certain costs to obtain a contract with a customer; 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 goods or services 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 goods or services. The Company’s disaggregated revenue disclosures are presented in “ Note 7—Segment Information .” Deferred Revenue Deferred revenue consists of payments that are received or are contractually due in advance of the Company’s performance obligation. 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 remaining term of the applicable subscription period or expected completion of its performance obligation is one year or less. At December 31, 2021, the current and non-current deferred revenue balances were $53.8 million and $0.1 million, respectively, and during the three months ended March 31, 2022, the Company recognized $35.5 million of revenue that was included in the deferred revenue balance as of December 31, 2021. At December 31, 2020, the current and non-current deferred revenue balances were $54.7 million and $0.2 million, respectively, and during the three months ended March 31, 2021, the Company recognized $34.4 million of revenue that was included in the deferred revenue balance as of December 31, 2020. The current and non-current deferred revenue balances at March 31, 2022 are $55.3 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 Standard Codification (“ASC”) 606, 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. Commissions Paid to Employees Pursuant to Sales Incentive Programs The Company has determined that commissions paid to employees pursuant to certain sales incentive programs meet the requirements to be capitalized as the incremental costs to obtain a contract with a customer. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. Capitalized commissions paid to employees pursuant to these sales incentive programs are amortized over the estimated customer relationship period. The Company calculates the anticipated customer relationship period as the average customer life, which is based on historical data. For sales incentive programs where the anticipated customer relationship period is one year or less, the Company has elected the practical expedient to expense the commissions as incurred. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company uses a portfolio approach to assess the accounting treatment of the incremental costs to obtain a contract with a customer. The Company recognizes an asset for these costs if we expect to recover those costs. To the extent that these costs are capitalized, the resultant asset is amortized on a systematic basis consistent with the pattern of the transfer of the services to which the asset relates. The current contract assets are $40.6 million and $38.0 million at March 31, 2022 and December 31, 2021, respectively. The non-current assets are $1.3 million and $1.1 million at March 31, 2022 and December 31, 2021, respectively. The current and non-current capitalized costs to obtain a contract with a customer are included in “Other current assets” and “Other non-current assets” in the accompanying balance sheet. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are no recently issued accounting pronouncements adopted or that have not yet been adopted by the Company that are expected to have a material effect on the results of operations, financial condition, or cash flows of the Company. |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 Quoted Market Prices for Identical Assets in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 250,077 $ — $ — $ 250,077 Total $ 250,077 $ — $ — $ 250,077 December 31, 2021 Quoted Market Prices for Identical Assets in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 280,052 $ — $ — $ 280,052 Total $ 280,052 $ — $ — $ 280,052 |
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: March 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt, net (a) $ (494,730) $ (421,500) $ (494,552) $ (486,875) ________________________ (a) At March 31, 2022 and December 31, 2021, the carrying value of long-term debt, net includes unamortized debt issuance costs of $5.3 million and $5.4 million, respectively . |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: March 31, 2022 December 31, 2021 (In thousands) 3.875% ANGI Group Senior Notes due August 15, 2028 (“ANGI Group Senior Notes”); interest payable each February 15 and August 15, which commenced February 15, 2021 $ 500,000 $ 500,000 Total long-term debt 500,000 500,000 Less: unamortized debt issuance costs 5,270 5,448 Total long-term debt, net $ 494,730 $ 494,552 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following tables presents the components of accumulated other comprehensive income and items reclassified out of accumulated other comprehensive income into earnings: Three Months Ended March 31, 2022 2021 Foreign Accumulated Other Comprehensive Income Foreign Accumulated Other Comprehensive Income (In thousands) Balance at January 1 $ 3,309 $ 3,309 $ 4,637 $ 4,637 Other comprehensive loss (803) (803) (14) (14) Balance at March 31 $ 2,506 $ 2,506 $ 4,623 $ 4,623 |
(LOSS) EARNINGS PER SHARE (Tabl
(LOSS) EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted (Loss) Earnings per Share | The following table sets forth the computation of basic and diluted (loss) earnings per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net (loss) earnings $ (33,287) $ (33,287) $ 2,014 $ 2,014 Net earnings attributable to noncontrolling interests (103) (103) (83) (83) Net (loss) earnings attributable to Angi Inc. Class A and Class B Common Stock shareholders $ (33,390) $ (33,390) $ 1,931 $ 1,931 Denominator: Weighted average basic Class A and Class B common stock shares outstanding 502,005 502,005 500,663 500,663 Dilutive securities (a) (b) — — — 9,990 Denominator for (loss) earnings per share—weighted average shares 502,005 502,005 500,663 510,653 (Loss) earnings per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: (Loss) earnings per share $ (0.07) $ (0.07) $ 0.00 $ 0.00 ________________________ (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 and subsidiary denominated equity and vesting of restricted stock units (“RSUs”). For the three months ended March 31, 2022 and 2021, 25.1 million and 5.2 million of potentially dilutive securities, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts. (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 the three months ended March 31, 2022 and 2021, 4.5 million and 1.4 million underlying market-based awards and PSUs, respectively, were excluded from the calculation of diluted earnings per share because the market or performance condition(s) had not been met. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents revenue by reportable segment: Three Months Ended March 31, 2022 2021 (In thousands) Revenue: North America $ 411,172 $ 361,041 Europe 24,987 25,988 Total $ 436,159 $ 387,029 The following tables present operating loss and Adjusted EBITDA by reportable segment: Three Months Ended March 31, 2022 2021 (In thousands) Operating loss: North America $ (29,654) $ 9,577 Europe (4,303) (9,468) Total $ (33,957) $ 109 Three Months Ended March 31, 2022 2021 (In thousands) Adjusted EBITDA (f) : North America $ 341 $ 31,165 Europe $ (3,510) $ (7,979) (f) The Company’s primary financial measure is Adjusted EBITDA, which is defined as operating loss 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. |
Schedule of Segmented Revenue Disaggregated by Service | The following table presents the revenue of the Company’s segments disaggregated by type of service: Three Months Ended March 31, 2022 2021 (In thousands) North America Angi Ads and Leads: Consumer connection revenue (a) $ 212,796 $ 221,430 Advertising revenue (b) 63,776 60,747 Membership subscription revenue (c) 16,237 16,882 Other revenue 5,226 7,278 Total Angi Ads and Leads revenue 298,035 306,337 Angi Services revenue (d) 113,137 54,704 Total North America revenue 411,172 361,041 Europe Consumer connection revenue (e) 21,803 22,351 Service professional membership subscription revenue 2,890 3,328 Advertising and other revenue 294 309 Total Europe revenue 24,987 25,988 Total revenue $ 436,159 $ 387,029 ________________________ (a) Includes fees paid by service professionals for consumer matches through the Angi Ads and Leads platforms. (b) Includes revenue from service professionals under contract for advertising. (c) Includes membership subscription revenue from service professionals and consumers. (d) Includes revenue from pre-priced offerings and revenue from Angi Roofing. (e) Includes fees paid by service professionals for consumer matches. |
Schedule of Revenue by Geographic Areas | Geographic information about revenue and long-lived assets is presented below. Three Months Ended March 31, 2022 2021 (In thousands) Revenue United States $ 405,508 $ 356,444 All other countries 30,651 30,585 Total $ 436,159 $ 387,029 |
Schedule of Long-lived Assets by Geographic Areas | March 31, 2022 December 31, 2021 (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 131,338 $ 111,136 All other countries 6,694 7,131 Total $ 138,032 $ 118,267 |
Schedule of Reconciliation of Adjusted EBITDA to Operating Income (Loss) | The following tables reconcile operating loss for the Company’s reportable segments and net loss attributable to Angi Inc. shareholders to Adjusted EBITDA: Three Months Ended March 31, 2022 Operating Loss Stock-Based Depreciation Amortization Adjusted (In thousands) North America $ (29,654) $ 12,994 $ 13,197 $ 3,804 $ 341 Europe (4,303) $ (9) $ 802 $ — $ (3,510) Operating loss (33,957) Interest expense (5,022) Other expense, net (391) Loss before income taxes (39,370) Income tax benefit 6,083 Net loss (33,287) Net earnings attributable to noncontrolling interests (103) Net loss attributable to Angi Inc. shareholders $ (33,390) Three Months Ended March 31, 2021 Operating Income (Loss) Stock-Based Depreciation Amortization Adjusted (In thousands) North America $ 9,577 $ 1,936 $ 14,578 $ 5,074 $ 31,165 Europe (9,468) $ 98 $ 1,391 $ — $ (7,979) Operating loss 109 Interest expense (6,617) Other income, net (767) Loss before income taxes (7,275) Income tax benefit 9,289 Net earnings 2,014 Net earnings attributable to noncontrolling interests (83) Net earnings attributable to Angi Inc. shareholders $ 1,931 |
CONSOLIDATED FINANCIAL STATEM_2
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying balance sheet to the total amounts shown in the accompanying statement of cash flows: March 31, 2022 December 31, 2021 March 31, 2021 December 31, 2020 (In thousands) Cash and cash equivalents $ 391,286 $ 428,136 $ 777,041 $ 812,705 Restricted cash included in other current assets 92 156 176 407 Restricted cash included in other non-current assets 885 1,193 433 449 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 392,263 $ 429,485 $ 777,650 $ 813,561 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying balance sheet to the total amounts shown in the accompanying statement of cash flows: March 31, 2022 December 31, 2021 March 31, 2021 December 31, 2020 (In thousands) Cash and cash equivalents $ 391,286 $ 428,136 $ 777,041 $ 812,705 Restricted cash included in other current assets 92 156 176 407 Restricted cash included in other non-current assets 885 1,193 433 449 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 392,263 $ 429,485 $ 777,650 $ 813,561 |
Schedule of Allowance for Credit Loss | The following table presents the changes in the credit loss reserve for the three months ended March 31, 2022 and 2021: 2022 2021 (In thousands) Balance at January 1 $ 33,652 $ 26,046 Current period provision for credit losses 21,586 19,118 Write-offs charged against the credit loss reserve (21,371) (20,570) Recoveries collected 1,213 758 Balance at March 31 $ 35,080 $ 25,352 |
Schedule of Accumulated Amortization and Depreciation | The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category March 31, 2022 December 31, 2021 (In thousands) Right-of-use assets (included in “other non-current assets”) $ 45,622 $ 40,757 Capitalized software, leasehold improvements, and equipment $ 119,026 $ 108,235 Intangible assets $ 162,346 $ 159,356 |
Schedule of Other Expense, Net | Three Months Ended March 31, 2022 2021 Interest income $ 64 $ 97 Foreign exchange losses (456) (860) Other 1 (4) Other expense, net $ (391) $ (767) |
THE COMPANY AND SUMMARY OF SI_3
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands, project in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($)segmentcategoryprojectprofessional | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Noncontrolling Interest [Line Items] | ||||
Number of service categories (more than) | category | 500 | |||
Number of domestic service professionals (over) | professional | 239,000 | |||
Number of projects | project | 32 | |||
Number of operating segments | segment | 2 | |||
Current deferred revenue | $ 55,255 | $ 53,834 | $ 54,700 | |
Non-current deferred revenue | 100 | 100 | $ 200 | |
Deferred revenue recognized | 35,500 | $ 34,400 | ||
Capitalized costs to obtain a contract with a customer | 40,600 | 38,000 | ||
Non-current contract assets | $ 1,300 | $ 1,100 | ||
Angi | IAC | ||||
Noncontrolling Interest [Line Items] | ||||
Economic interest (as a percent) | 84.50% | |||
Voting interest (as a percent) | 98.20% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit | $ 6,083 | $ 9,289 | |
Effective income tax rate (as a percent) | 15.00% | ||
Unrecognized tax benefits including tax interest accrued | $ 6,600 | $ 6,300 | |
Unrecognized tax benefits that if subsequently recognized would reduce income tax expense | 6,300 | $ 6,000 | |
Deferred tax assets | 219,300 | ||
Portion of deferred tax assets that will be utilized upon future reversal of deferred tax liabilities | 49,700 | ||
Portion of deferred tax assets that will be utilized based on forecasts of future taxable income | 169,600 | ||
Deferred tax assets, U.S. federal operating loss carryforwards | 124,600 | ||
Future taxable income | $ 593,400 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Fair Value Disclosures [Abstract] | |
Marketable debt securities | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash equivalents | $ 250,077 | $ 280,052 |
Money market funds | ||
Assets: | ||
Cash equivalents | 250,077 | 280,052 |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 250,077 | 280,052 |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | Money market funds | ||
Assets: | ||
Cash equivalents | 250,077 | 280,052 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Cash equivalents | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net | $ (494,730) | $ (494,552) |
Unamortized debt issuance costs | 5,300 | 5,400 |
Fair Value | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net | $ (421,500) | $ (486,875) |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Total long-term debt | $ 500,000 | $ 500,000 |
Less: unamortized debt issuance costs | 5,270 | 5,448 |
Total long-term debt, net | 494,730 | 494,552 |
3.875% Senior Notes | Senior Notes | ||
Debt Instrument | ||
Total long-term debt | $ 500,000 | $ 500,000 |
Interest rate, stated percentage | 3.875% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
ANGI Group Credit Facility | Revolving Credit Facility | ||
Debt Instrument | ||
Maximum borrowing capacity of credit facility | $ 250 | |
Senior Notes | 3.875% Senior Notes | ||
Debt Instrument | ||
Leverage ratio, maximum | 3.75 | |
Loans Payable | ANGI Group Term Loan due November 5, 2023 (“ANGI Group Term Loan”) | ||
Debt Instrument | ||
Prepaid debt principal payments | $ 6.9 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | $ 1,134,619,000 | |
Other comprehensive (loss) income | (746,000) | $ 679,000 |
Balance at end of period | 1,103,365,000 | |
Income tax provision (benefit) | 0 | 0 |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | 3,309,000 | 4,637,000 |
Other comprehensive (loss) income | (803,000) | (14,000) |
Balance at end of period | 2,506,000 | 4,623,000 |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | 3,309,000 | 4,637,000 |
Other comprehensive (loss) income | (803,000) | (14,000) |
Balance at end of period | $ 2,506,000 | $ 4,623,000 |
(LOSS) EARNINGS PER SHARE - Sum
(LOSS) EARNINGS PER SHARE - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net (loss) earnings | $ (33,287) | $ 2,014 |
Net earnings attributable to noncontrolling interests | (103) | (83) |
Net (loss) earnings attributable to Angi Inc. Class A and Class B Common Stock shareholders | $ (33,390) | $ 1,931 |
Weighted average basic Class A and Class B common stock shares outstanding, basic (shares) | 502,005 | 500,663 |
Dilutive securities (shares) | 0 | 9,990 |
Denominator for (loss) earnings per share - weighted average shares, diluted (shares) | 502,005 | 510,653 |
(Loss) earnings per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: | ||
(Loss) earnings per share, basic (USD per share) | $ (0.07) | $ 0 |
(Loss) earnings per share, diluted (USD per share) | $ (0.07) | $ 0 |
Stock Options and Subsidiary Denominated Equity and Vesting of Restricted Common Stock, Restricted Stock Units (RSU's) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 25,100 | 5,200 |
Market-based Awards and PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 4,500 | 1,400 |
SEGMENT INFORMATION - Revenue b
SEGMENT INFORMATION - Revenue by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 436,159 | $ 387,029 |
North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 411,172 | 361,041 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 24,987 | $ 25,988 |
SEGMENT INFORMATION - Revenue D
SEGMENT INFORMATION - Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 436,159 | $ 387,029 |
North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 411,172 | 361,041 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | 24,987 | 25,988 |
Total Angi Ads and Leads revenue | North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 298,035 | 306,337 |
Consumer connection revenue | North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 212,796 | 221,430 |
Consumer connection revenue | Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | 21,803 | 22,351 |
Advertising revenue | North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 63,776 | 60,747 |
Membership subscription revenue | North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 16,237 | 16,882 |
Other revenue | North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,226 | 7,278 |
Angi Services revenue | North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 113,137 | 54,704 |
Service professional membership subscription revenue | Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,890 | 3,328 |
Advertising and other revenue | Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 294 | $ 309 |
SEGMENT INFORMATION - Revenue a
SEGMENT INFORMATION - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue and Long-lived Assets by Geography | |||
Revenue | $ 436,159 | $ 387,029 | |
Long-lived assets (excluding goodwill and intangible assets) | 138,032 | $ 118,267 | |
United States | |||
Revenue and Long-lived Assets by Geography | |||
Revenue | 405,508 | 356,444 | |
Long-lived assets (excluding goodwill and intangible assets) | 131,338 | 111,136 | |
All other countries | |||
Revenue and Long-lived Assets by Geography | |||
Revenue | 30,651 | $ 30,585 | |
Long-lived assets (excluding goodwill and intangible assets) | $ 6,694 | $ 7,131 |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating Income (loss) and Adjusted EBITDA by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Operating (loss) income | $ (33,957) | $ 109 |
North America | ||
Segment Reporting Information [Line Items] | ||
Operating (loss) income | (29,654) | 9,577 |
Adjusted EBITDA | 341 | 31,165 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Operating (loss) income | (4,303) | (9,468) |
Adjusted EBITDA | $ (3,510) | $ (7,979) |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Other Significant Reconciling Item | ||
Operating (loss) income | $ (33,957) | $ 109 |
Stock-based compensation expense | 12,985 | 2,034 |
Amortization of intangibles | 3,804 | 5,074 |
Interest expense | (5,022) | (6,617) |
Other income (expense), net | (391) | (767) |
Loss before income taxes | (39,370) | (7,275) |
Income tax benefit | 6,083 | 9,289 |
Net (loss) earnings | (33,287) | 2,014 |
Net earnings attributable to noncontrolling interests | (103) | (83) |
Net (loss) earnings attributable to Angi Inc. Class A and Class B Common Stock shareholders | (33,390) | 1,931 |
North America | ||
Segment Reporting, Other Significant Reconciling Item | ||
Operating (loss) income | (29,654) | 9,577 |
Stock-based compensation expense | 12,994 | 1,936 |
Depreciation | 13,197 | 14,578 |
Amortization of intangibles | 3,804 | 5,074 |
Adjusted EBITDA | 341 | 31,165 |
Europe | ||
Segment Reporting, Other Significant Reconciling Item | ||
Operating (loss) income | (4,303) | (9,468) |
Stock-based compensation expense | (9) | 98 |
Depreciation | 802 | 1,391 |
Amortization of intangibles | 0 | 0 |
Adjusted EBITDA | $ (3,510) | $ (7,979) |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 391,286 | $ 428,136 | $ 777,041 | $ 812,705 |
Restricted cash included in other current assets | 92 | 156 | 176 | 407 |
Restricted cash included in other non-current assets | 885 | 1,193 | 433 | 449 |
Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows | $ 392,263 | $ 429,485 | $ 777,650 | $ 813,561 |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | $ 33,652 | $ 26,046 |
Current period provision for credit losses | 21,586 | 19,118 |
Write-offs charged against the credit loss reserve | (21,371) | (20,570) |
Recoveries collected | 1,213 | 758 |
Balance at March 31 | 35,080 | 25,352 |
Revenue reserve | 2,700 | 3,500 |
Allowance and reserves | $ 37,800 | $ 28,900 |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accumulated Amortization and Depreciation (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Depreciation, Depletion and Amortization [Abstract] | ||
Right-of-use assets (included in “other non-current assets”) | $ 45,622 | $ 40,757 |
Capitalized software, leasehold improvements, and equipment | 119,026 | 108,235 |
Intangible assets | $ 162,346 | $ 159,356 |
CONSOLIDATED FINANCIAL STATEM_6
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest income | $ 64 | $ 97 |
Foreign exchange losses | (456) | (860) |
Other | 1 | (4) |
Other expense, net | $ (391) | $ (767) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency reserve | $ 4 |
RELATED PARTY TRANSACTIONS WI_2
RELATED PARTY TRANSACTIONS WITH IAC - Narrative (Details) - IAC - USD ($) shares in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Services Agreement | |||
Related Party Transaction [Line Items] | |||
Charges for services rendered pursuant to the services agreement | $ 400,000 | $ 1,100,000 | |
Amounts due from related party | 500,000 | ||
Amounts due to related party | 0 | $ 0 | |
Sublease Agreement | |||
Related Party Transaction [Line Items] | |||
Amounts due from related party | 0 | ||
Amounts due to related party | 0 | ||
Payments received from related party | 400,000 | 400,000 | |
Expenses from related party transactions | 300,000 | ||
Tax Sharing Agreement | |||
Related Party Transaction [Line Items] | |||
Amounts due to related party | 800,000 | $ 300,000 | |
Expenses from related party transactions | $ 0 | $ 0 | |
Employee Matters Agreement | Class B Common Stock | |||
Related Party Transaction [Line Items] | |||
Issuance of common stock to IAC pursuant to the employee matters agreement (shares) | 0 | 0.1 | |
Employee Matters Agreement | Class A Common Stock | |||
Related Party Transaction [Line Items] | |||
Issuance of common stock to IAC pursuant to the employee matters agreement (shares) | 0 | 2.6 |