Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Current Fiscal Year End Date | --12-31 | |
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 $0.001 | |
Trading Symbol | ANGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001705110 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 84,547,999 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 422,019,247 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 314,960 | $ 321,155 |
Marketable debt securities | 12,495 | 0 |
Accounts receivable, net | 92,303 | 93,880 |
Other current assets | 66,574 | 69,167 |
Total current assets | 486,332 | 484,202 |
Capitalized software, leasehold improvements and equipment, net | 139,055 | 153,855 |
Goodwill | 883,734 | 882,949 |
Intangible assets, net | 175,592 | 178,105 |
Deferred income taxes | 144,309 | 145,460 |
Other non-current assets, net | 59,883 | 63,207 |
TOTAL ASSETS | 1,888,905 | 1,907,778 |
LIABILITIES: | ||
Accounts payable | 31,017 | 30,862 |
Deferred revenue | 50,244 | 50,907 |
Accrued expenses and other current liabilities | 188,875 | 200,015 |
Total current liabilities | 270,136 | 281,784 |
Long-term debt, net | 495,469 | 495,284 |
Deferred income taxes | 2,932 | 2,906 |
Other long-term liabilities | 72,031 | 76,426 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY: | ||
Additional paid-in capital | 1,416,748 | 1,405,294 |
Accumulated deficit | (205,404) | (190,079) |
Accumulated other comprehensive loss | (711) | (1,172) |
Treasury stock, 20,211 and 20,211 shares, respectively | (166,184) | (166,184) |
Total Angi Inc. shareholders’ equity | 1,044,975 | 1,048,384 |
Noncontrolling interests | 3,362 | 2,994 |
Total shareholders’ equity | 1,048,337 | 1,051,378 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,888,905 | 1,907,778 |
Class A Common Stock | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, value | 104 | 103 |
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) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Treasury stock (in shares) | 20,211,000 | 20,211,000 |
Class A Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 104,119,000 | 102,810,000 |
Common stock outstanding (in shares) | 83,908,000 | 82,599,000 |
Class B Common Stock | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (in shares) | 422,019,000 | 422,019,000 |
Common stock outstanding (in 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 (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (in shares) | 0 | 0 |
Common stock outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 392,407 | $ 436,159 |
Cost of revenue (exclusive of depreciation shown separately below) | 42,041 | 98,998 |
Gross profit | 350,366 | 337,161 |
Operating costs and expenses: | ||
Selling and marketing expense | 204,909 | 225,801 |
General and administrative expense | 102,518 | 109,655 |
Product development expense | 25,312 | 17,859 |
Depreciation | 25,435 | 13,999 |
Amortization of intangibles | 2,662 | 3,804 |
Total operating costs and expenses | 360,836 | 371,118 |
Operating loss | (10,470) | (33,957) |
Interest expense | (5,029) | (5,022) |
Other income (expense),net | 3,811 | (391) |
Loss before income taxes | (11,688) | (39,370) |
Income tax (provision) benefit | (3,312) | 6,083 |
Net loss | (15,000) | (33,287) |
Net earnings attributable to noncontrolling interests | (325) | (103) |
Net loss attributable to Angi Inc. shareholders | $ (15,325) | $ (33,390) |
Per share information attributable to Angi Inc. shareholders: | ||
Basic loss per share (USD per share) | $ (0.03) | $ (0.07) |
Diluted loss per share (USD per share) | $ (0.03) | $ (0.07) |
Stock-based compensation expense by function: | ||
Total stock-based compensation expense | $ 12,877 | $ 12,985 |
Selling and marketing expense | ||
Stock-based compensation expense by function: | ||
Total stock-based compensation expense | 1,280 | 1,239 |
General and administrative expense | ||
Stock-based compensation expense by function: | ||
Total stock-based compensation expense | 8,898 | 9,635 |
Product development expense | ||
Stock-based compensation expense by function: | ||
Total stock-based compensation expense | $ 2,699 | $ 2,111 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (15,000) | $ (33,287) |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | 502 | (746) |
Change in unrealized gains on available-for-sale marketable debt securities | 2 | 0 |
Total other comprehensive income (loss) | 504 | (746) |
Comprehensive loss | (14,496) | (34,033) |
Components of comprehensive income attributable to noncontrolling interests: | ||
Net earnings attributable to noncontrolling interests | (325) | (103) |
Change in foreign currency translation adjustment attributable to noncontrolling interests | (43) | (57) |
Comprehensive income attributable to noncontrolling interests | (368) | (160) |
Comprehensive loss attributable to Angi Inc. shareholders | $ (14,864) | $ (34,193) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Total Angi Inc. Shareholders' Equity | Common Stock Class A Common Stock $0.001 Par Value | Common Stock Class B Convertible Common Stock $0.001 Par Value | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Noncontrolling Interests |
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 (in 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) | $ 0 | (2,473) | |||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (in 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 (in shares) at Mar. 31, 2022 | 100,426 | 422,019 | |||||||
Balance at beginning of period at Dec. 31, 2022 | 1,051,378 | 1,048,384 | $ 103 | $ 422 | 1,405,294 | (190,079) | (1,172) | (166,184) | 2,994 |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 102,811 | 422,019 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Net (loss) earnings | (15,000) | (15,325) | (15,325) | 325 | |||||
Other comprehensive income (loss) | 504 | 461 | 461 | 43 | |||||
Stock-based compensation expense | 13,870 | 13,870 | 13,870 | ||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (2,410) | (2,410) | $ 1 | (2,411) | |||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (in shares) | 1,308 | ||||||||
Other | (5) | (5) | (5) | 0 | |||||
Balance at end of period at Mar. 31, 2023 | $ 1,048,337 | $ 1,044,975 | $ 104 | $ 422 | $ 1,416,748 | $ (205,404) | $ (711) | $ (166,184) | $ 3,362 |
Balance at end of period (in shares) at Mar. 31, 2023 | 104,119 | 422,019 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
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, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (15,000) | $ (33,287) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Provision for credit losses | 24,872 | 21,611 |
Stock-based compensation expense | 12,877 | 12,985 |
Depreciation | 25,435 | 13,999 |
Amortization of Intangibles | 2,662 | 3,804 |
Deferred income taxes | 1,147 | (8,133) |
Non-cash lease expense (including impairment of right-of-use assets) | 3,672 | 3,352 |
Other adjustments, net | (433) | (193) |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||
Accounts receivable | (23,187) | (37,769) |
Other assets | 1,740 | 1,930 |
Accounts payable and other liabilities | (9,829) | 22,119 |
Operating lease liabilities | (5,074) | (4,454) |
Income taxes payable and receivable | 843 | 1,909 |
Deferred revenue | (665) | 1,392 |
Net cash provided by (used in) operating activities | 19,060 | (735) |
Cash flows from investing activities: | ||
Capital expenditures | (11,862) | (26,903) |
Purchases of marketable debt securities | (12,362) | 0 |
Proceeds from sales of fixed assets | 68 | 87 |
Net cash used in investing activities | (24,156) | (26,816) |
Cash flows from financing activities: | ||
Purchases of treasury stock | 0 | (8,144) |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (1,379) | (1,322) |
Net cash used in financing activities | (1,379) | (9,466) |
Total cash used | (6,475) | (37,017) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 179 | (205) |
Net decrease in cash and cash equivalents and restricted cash | (6,296) | (37,222) |
Cash and cash equivalents and restricted cash at beginning of period | 322,136 | 429,485 |
Cash and cash equivalents and restricted cash at end of period | $ 315,840 | $ 392,263 |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
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. connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. During the three months ended March 31, 2023, over 206,000 transacting service professionals actively sought consumer matches, completed jobs, or advertised work through Angi Inc. platforms. Additionally, consumers turned to at least one of our brands to find a service professional for approximately 29 million projects during the twelve months ended March 31, 2023. The Company has four operating segments: (i) Ads and Leads; (ii) Services; (iii) Roofing; and (iv) International (consisting of businesses in Europe and Canada) and operates under multiple brands including Angi, HomeAdvisor, Handy, Total Home Roofing, and Angi Roofing. Ads and Leads provides service professionals the capability to engage with potential customers, including quote and invoicing services, and provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals nationwide for home repair, maintenance and improvement projects. Services consumers can request household services directly through the Angi platform and Angi fulfills the request through the use of independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. The matching and pre-priced booking services and related tools and directories are provided to consumers free of charge. Roofing provides roof replacement and repair services through its wholly-owned subsidiary Angi Roofing, LLC. 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, 2023, IAC Inc., formerly known as IAC/InterActiveCorp (“IAC”) owned 83.9% and 98.1% 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. See “ Note 10—Related Party Transactions with IAC ” for information on transactions between Angi 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 or benefit 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, 2022. Segment Changes As a result of management’s continued assessments of reporting structure, there was a decision in the fourth quarter of 2022 to refine segments to more effectively measure the businesses’ performance. Management has identified four reportable 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 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; the determination of the customer relationship period for certain costs to obtain a contract with a customer; the recoverability 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 The Company accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. 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 .” From January 1, 2020 through December 31, 2022, Services recorded revenue on a gross basis. Effective January 1, 2023, we modified the Services terms and conditions so that the service professional, rather than Angi Inc., has the contractual relationship with the consumer to deliver the service and our performance obligation to the consumer is to connect them with the service professional. This change in contractual terms requires revenue be reported as the net amount of what is received from the consumer after deducting the amounts owed to the service professional providing the service effective for all arrangements entered into after December 31, 2022. This change in accounting treatment resulted in a decrease in revenue of $25.7 million for the three months ended March 31, 2023. There is no impact to operating loss or Adjusted EBITDA from this change in revenue recognition. 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 or expected completion of its performance obligation is one year or less. At December 31, 2022, the current and non-current deferred revenue balances were $50.9 million and $0.1 million, respectively, and during the three months ended March 31, 2023, the Company recognized $31.9 million of revenue that was included in the deferred revenue balance as of December 31, 2022. 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. The current and non-current deferred revenue balances at March 31, 2023 are $50.2 million and less than $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 For contracts that have an original duration of one year or less, the Company uses the practical expedient available under Accounting Standards Codification (“ASC”) ASC 606, applicable to such contracts and does not consider the time value of money. In addition, as permitted under the practical expedient available under ASC 606, 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. 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 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 and are included in “Selling and marketing expense” in the accompanying statement of operations. 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. The current capitalized sales commissions are $33.8 million and $37.2 million at March 31, 2023 and December 31, 2022, respectively. The non-current capitalized sales commissions are $2.5 million and $1.9 million at March 31, 2023 and December 31, 2022, respectively. The current and non-current capitalized sales commissions are included in “Other current assets” and “Other non-current assets” in the accompanying balance sheet. 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 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. 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. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
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 provision and/or benefit 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 or benefit 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, 2023, the Company recorded an income tax provision of $3.3 million, despite a pre-tax loss, due primarily to nondeductible stock-based compensation, foreign income taxed at different rates, and state taxes, partially offset by research credits. 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 rates. 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, 2023 and December 31, 2022, the Company has unrecognized tax benefits of $6.6 million and $6.2 million, respectively; all of which are for tax positions included in IAC’s consolidated tax return filings. If unrecognized tax benefits at March 31, 2023 are subsequently recognized, the income tax provision would be reduced by $6.2 million. The comparable amount as of December 31, 2022 is $5.8 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, 2023, the Company has a U.S. gross deferred tax asset of $205.6 million that the Company expects to fully utilize on a more likely than not basis. Of this amount, $22.8 million will be utilized upon the future reversal of deferred tax liabilities and the remaining net deferred tax asset of $182.8 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 $108.0 million. The Company expects to generate sufficient future taxable income of at least $514.5 million prior to the expiration of these NOLs, the majority of which expire between 2032 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, 2023 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Marketable Debt Securities At March 31, 2023, current available-for-sale marketable debt securities were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Treasury discount notes $ 12,493 $ 2 $ — $ 12,495 Total available-for-sale marketable debt securities $ 12,493 $ 2 $ — $ 12,495 The contractual maturities of debt securities classified as current available-for-sale at March 31, 2023 are within one year. The Company did not hold any available-for-sale marketable debt securities at December 31, 2022. Fair Value Measurements Instruments measured at fair value on a recurring basis Cash and cash equivalents are measured at fair value and classified within Level 1 and Level 2 in the fair value hierarchy, because we use quoted prices for identical assets in active markets. The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis: March 31, 2023 Quoted Market Prices for Identical Assets in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 213,747 $ — $ — $ 213,747 Treasury discount notes — 24,917 — 24,917 Marketable debt securities: Treasury discount notes — 12,495 — 12,495 Total $ 213,747 $ 37,412 $ — $ 251,159 December 31, 2022 Quoted Market Prices for Identical Assets in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 189,000 $ — $ — $ 189,000 Treasury discount notes — 24,961 — 24,961 Total $ 189,000 $ 24,961 $ — $ 213,961 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, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt, net (a) $ (495,469) $ (386,250) $ (495,284) $ (368,750) ________________________ (a) At March 31, 2023 and December 31, 2022, the carrying value of long-term debt, net includes unamortized debt issuance costs of $4.5 million and $4.7 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, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBTLong-term debt consists of: March 31, 2023 December 31, 2022 (In thousands) 3.875% ANGI Group Senior Notes due August 15, 2028 (“ANGI Group Senior Notes”); interest payable each February 15 and August 15 $ 500,000 $ 500,000 Less: unamortized debt issuance costs 4,531 4,716 Total long-term debt, net $ 495,469 $ 495,284 ANGI Group Senior Notes ANGI Group, LLC (“ANGI Group”), a direct wholly-owned subsidiary of Angi Inc., issued the ANGI Group Senior Notes on August 20, 2020. At any time prior to August 15, 2023, these notes may be redeemed at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium. Thereafter, these notes may be redeemed at the redemption prices, plus accrued and unpaid interest thereon, if any, to the applicable redemption date set forth in the indenture governing the notes. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOMEThe following tables presents the components of accumulated other comprehensive (loss) income and items reclassified out of accumulated other comprehensive (loss) income into earnings: Three Months Ended March 31, 2023 2022 Foreign Unrealized Gains on Available-For-Sale Debt Securities Accumulated Other Comprehensive Loss Foreign Accumulated Other Comprehensive Income (In thousands) Balance at January 1 $ (1,172) $ — $ (1,172) $ 3,309 $ 3,309 Other comprehensive income (loss) 459 2 461 (803) (803) Balance at March 31 $ (713) $ 2 $ (711) $ 2,506 $ 2,506 At March 31, 2023 there was an inconsequential amount of tax provision on the accumulated other comprehensive income. At March 31, 2022 there was no tax benefit or provision on the accumulated other comprehensive loss. |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHAREThe following table sets forth the computation of basic and diluted loss per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: Three Months Ended March 31, 2023 2022 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net loss $ (15,000) $ (15,000) $ (33,287) $ (33,287) Net earnings attributable to noncontrolling interests (325) (325) (103) (103) Net loss attributable to Angi Inc. Class A and Class B Common Stock shareholders $ (15,325) $ (15,325) $ (33,390) $ (33,390) Denominator: Weighted average basic Class A and Class B common stock shares outstanding 505,033 505,033 502,005 502,005 Dilutive securities (a) (b) — — — — Denominator for loss per share—weighted average shares 505,033 505,033 502,005 502,005 Loss per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: Loss per share $ (0.03) $ (0.03) $ (0.07) $ (0.07) ________________________ (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, 2023 and 2022, 29.6 million and 25.1 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, 2023 and 2022, 0.9 million and 4.5 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, 2023 | |
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. As a result of management’s continued assessments of reporting structure, there was a decision in the fourth quarter of 2022 to refine segments to more effectively measure the businesses’ performance. Management has identified four reportable segments with discrete financial results to appropriately match operating costs to the revenues generated for these businesses (Ads and Leads, Services, Roofing and International). Our financial information for prior periods has been recast to conform to the current period presentation. The following table presents revenue by reportable segment: Three Months Ended March 31, 2023 2022 (In thousands) Revenue: Domestic Ads and Leads $ 293,506 $ 294,746 Services 32,059 76,450 Roofing 38,372 36,687 Intersegment eliminations (a) (1,462) (1,677) Total Domestic 362,475 406,206 International 29,932 29,953 Total $ 392,407 $ 436,159 ________________________ (a) Intersegment eliminations related to Ads and Leads revenue earned from sales to Roofing. The following table presents the revenue of the Company’s segments disaggregated by type of service: Three Months Ended March 31, 2023 2022 (In thousands) Domestic Ads and Leads: Consumer connection revenue $ 212,935 $ 214,347 Advertising revenue 67,181 63,902 Membership subscription revenue 13,199 16,237 Other revenue 191 260 Total Ads and Leads revenue 293,506 294,746 Services revenue 32,059 76,450 Roofing revenue 38,372 36,687 Intersegment eliminations (a) (1,462) (1,677) Total Domestic revenue 362,475 406,206 International Consumer connection revenue 24,745 21,803 Service professional membership subscription revenue 5,058 7,856 Advertising and other revenue 129 294 Total International revenue 29,932 29,953 Total revenue $ 392,407 $ 436,159 ________________________ (a) Intersegment eliminations related to Ads and Leads revenue earned from sales to Roofing. Geographic information about revenue and long-lived assets is presented below. Three Months Ended March 31, 2023 2022 (In thousands) Revenue United States $ 362,226 $ 405,508 All other countries 30,181 30,651 Total $ 392,407 $ 436,159 March 31, 2023 December 31, 2022 (In thousands) Long-lived assets (excluding goodwill, intangible assets, and ROU assets): United States $ 133,403 $ 147,322 All other countries 5,652 6,533 Total $ 139,055 $ 153,855 The following tables present operating income (loss) and Adjusted EBITDA by reportable segment: Three Months Ended March 31, 2023 2022 (In thousands) Operating income (loss): Ads and Leads $ 13,480 $ 15,486 Services (12,452) (25,750) Roofing 411 (6,150) Corporate (14,939) (13,022) International 3,030 (4,521) Total $ (10,470) $ (33,957) Three Months Ended March 31, 2023 2022 (In thousands) Adjusted EBITDA (b) : Ads and Leads $ 39,851 $ 34,325 Services $ (2,168) $ (18,567) Roofing $ 821 $ (5,026) Corporate $ (12,354) $ (10,450) International $ 4,354 $ (3,451) (b) The Company’s primary financial measure and GAAP segment measure is Adjusted EBITDA, which is defined as operating income (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 income (loss) for the Company’s reportable segments and net loss attributable to Angi Inc. shareholders to Adjusted EBITDA: Three Months Ended March 31, 2023 Operating Income (Loss) Stock-Based Depreciation Amortization Adjusted EBITDA (b) (In thousands) Ads and Leads $ 13,480 $ 5,491 $ 18,218 $ 2,662 $ 39,851 Services (12,452) $ 4,209 $ 6,075 $ — $ (2,168) Roofing 411 $ 165 $ 245 $ — $ 821 Corporate (14,939) $ 2,585 $ — $ — $ (12,354) International 3,030 $ 427 $ 897 $ — $ 4,354 Operating loss (10,470) Interest expense (5,029) Other income, net 3,811 Loss before income taxes (11,688) Income tax provision (3,312) Net loss (15,000) Net earnings attributable to noncontrolling interests (325) Net loss attributable to Angi Inc. shareholders $ (15,325) Three Months Ended March 31, 2022 Operating Income (Loss) Stock-Based Depreciation Amortization Adjusted EBITDA (b) (In thousands) Ads and Leads $ 15,486 $ 4,920 $ 11,257 $ 2,662 $ 34,325 Services (25,750) $ 4,540 $ 1,668 $ 975 $ (18,567) Roofing (6,150) $ 830 $ 127 $ 167 $ (5,026) Corporate (13,022) $ 2,572 $ — $ — $ (10,450) International (4,521) $ 123 $ 947 $ — $ (3,451) 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) |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 December 31, 2022 March 31, 2022 December 31, 2021 (In thousands) Cash and cash equivalents $ 314,960 $ 321,155 $ 391,286 $ 428,136 Restricted cash included in other current assets — 107 92 156 Restricted cash included in other non-current assets 880 874 885 1,193 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 315,840 $ 322,136 $ 392,263 $ 429,485 Restricted cash included in “Other current assets” in the accompanying consolidated balance sheets at December 31, 2022 and March 31, 2022 primarily consisted of cash reserved to fund insurance claims. Restricted cash included in “Other current assets” in the accompanying consolidated balance sheet at December 31, 2021 primarily consisted of funds collected from services providers for disputed payments which were not settled as of the period end, in addition to cash reserved to fund insurance claims. Restricted cash included in "”Other non-current assets” in the accompanying consolidated balance sheets for all periods presented above primarily consisted of deposits related to leases. Restricted cash included in "”Other non-current assets” in the accompanying consolidated balance sheet at December 31, 2021 also included cash held related to a check endorsement guarantee for Roofing. Credit Losses The following table presents the changes in the allowance for credit losses for the three months ended March 31, 2023 and 2022: 2023 2022 (In thousands) Balance at January 1 $ 43,160 $ 33,652 Current period provision for credit losses 24,872 21,611 Write-offs charged against the allowance for credit losses (28,608) (21,396) Recoveries collected 1,402 1,213 Balance at March 31 $ 40,826 $ 35,080 Accumulated Amortization and Depreciation The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category March 31, 2023 December 31, 2022 (In thousands) Right-of-use assets (included in “other non-current assets”) $ 65,474 $ 61,818 Capitalized software, leasehold improvements, and equipment $ 162,645 $ 146,608 Intangible assets $ 175,136 $ 172,341 Other income (expense), net Three Months Ended March 31, 2023 2022 Interest income $ 3,423 $ 64 Foreign exchange gains (losses) 387 (456) Other 1 1 Other income (expense), net $ 3,811 $ (391) |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes accruals for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. The total accrual for legal matters is $17.7 million at March 31, 2023. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no accrual is established. 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 uncertain income tax positions 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 |
RELATED PARTY TRANSACTIONS WITH
RELATED PARTY TRANSACTIONS WITH IAC | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS WITH IAC | RELATED PARTY TRANSACTIONS WITH IAC Allocation of CEO Compensation and Certain Expenses Joseph Levin, CEO of IAC and Chairman of Angi, was appointed CEO of Angi on October 10, 2022. As a result, for the three months ended March 31, 2023, IAC allocated $2.3 million in costs to Angi (including salary, benefits, stock-based compensation and costs related to the CEO’s office). These costs were allocated from IAC based upon time spent on Angi by Mr. Levin. Management considers the allocation method to be reasonable. The allocated costs also include costs directly attributable to the Company that were initially paid for by IAC and billed by IAC to the Company. Additionally, Angi 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, 2023 and 2022, the Company was charged $1.5 million and $0.4 million, respectively, by IAC for services rendered pursuant to the services agreement. There were no outstanding receivables pursuant to the services agreement at March 31, 2023 and December 31, 2022. There were no outstanding payables pursuant to the services agreement at March 31, 2023 and $0.8 million in outstanding payables pursuant to the services agreement at December 31, 2022. Additionally, the Company subleases office space to IAC and charged IAC $0.4 million of rent for the three months ended March 31, 2023 and 2022. IAC subleases office space to the Company and charged the Company $0.3 million of rent for the three months ended March 31, 2023. At March 31, 2023 and December 31, 2022, 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, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Angi Inc. connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. During the three months ended March 31, 2023, over 206,000 transacting service professionals actively sought consumer matches, completed jobs, or advertised work through Angi Inc. platforms. Additionally, consumers turned to at least one of our brands to find a service professional for approximately 29 million projects during the twelve months ended March 31, 2023. The Company has four operating segments: (i) Ads and Leads; (ii) Services; (iii) Roofing; and (iv) International (consisting of businesses in Europe and Canada) and operates under multiple brands including Angi, HomeAdvisor, Handy, Total Home Roofing, and Angi Roofing. Ads and Leads provides service professionals the capability to engage with potential customers, including quote and invoicing services, and provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals nationwide for home repair, maintenance and improvement projects. Services consumers can request household services directly through the Angi platform and Angi fulfills the request through the use of independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. The matching and pre-priced booking services and related tools and directories are provided to consumers free of charge. Roofing provides roof replacement and repair services through its wholly-owned subsidiary Angi Roofing, LLC. 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, 2023, IAC Inc., formerly known as IAC/InterActiveCorp (“IAC”) owned 83.9% and 98.1% 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. See “ Note 10—Related Party Transactions with IAC ” for information on transactions between Angi 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 or benefit 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, 2022. |
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 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; the determination of the customer relationship period for certain costs to obtain a contract with a customer; the recoverability 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 The Company accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. 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 or expected completion of its performance obligation is one year or less. At December 31, 2022, the current and non-current deferred revenue balances were $50.9 million and $0.1 million, respectively, and during the three months ended March 31, 2023, the Company recognized $31.9 million of revenue that was included in the deferred revenue balance as of December 31, 2022. 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. The current and non-current deferred revenue balances at March 31, 2023 are $50.2 million and less than $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 For contracts that have an original duration of one year or less, the Company uses the practical expedient available under Accounting Standards Codification (“ASC”) ASC 606, applicable to such contracts and does not consider the time value of money. In addition, as permitted under the practical expedient available under ASC 606, 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. 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 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 and are included in “Selling and marketing expense” in the accompanying statement of operations. 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. The current capitalized sales commissions are $33.8 million and $37.2 million at March 31, 2023 and December 31, 2022, respectively. The non-current capitalized sales commissions are $2.5 million and $1.9 million at March 31, 2023 and December 31, 2022, respectively. The current and non-current capitalized sales commissions are included in “Other current assets” and “Other non-current assets” in the accompanying balance sheet. |
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 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. |
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. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 Quoted Market Prices for Identical Assets in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 213,747 $ — $ — $ 213,747 Treasury discount notes — 24,917 — 24,917 Marketable debt securities: Treasury discount notes — 12,495 — 12,495 Total $ 213,747 $ 37,412 $ — $ 251,159 December 31, 2022 Quoted Market Prices for Identical Assets in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total (In thousands) Assets: Cash equivalents: Money market funds $ 189,000 $ — $ — $ 189,000 Treasury discount notes — 24,961 — 24,961 Total $ 189,000 $ 24,961 $ — $ 213,961 |
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, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt, net (a) $ (495,469) $ (386,250) $ (495,284) $ (368,750) ________________________ (a) At March 31, 2023 and December 31, 2022, the carrying value of long-term debt, net includes unamortized debt issuance costs of $4.5 million and $4.7 million, respectively . |
Schedule of Available-for-sale Debt Securities | At March 31, 2023, current available-for-sale marketable debt securities were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Treasury discount notes $ 12,493 $ 2 $ — $ 12,495 Total available-for-sale marketable debt securities $ 12,493 $ 2 $ — $ 12,495 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: March 31, 2023 December 31, 2022 (In thousands) 3.875% ANGI Group Senior Notes due August 15, 2028 (“ANGI Group Senior Notes”); interest payable each February 15 and August 15 $ 500,000 $ 500,000 Less: unamortized debt issuance costs 4,531 4,716 Total long-term debt, net $ 495,469 $ 495,284 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following tables presents the components of accumulated other comprehensive (loss) income and items reclassified out of accumulated other comprehensive (loss) income into earnings: Three Months Ended March 31, 2023 2022 Foreign Unrealized Gains on Available-For-Sale Debt Securities Accumulated Other Comprehensive Loss Foreign Accumulated Other Comprehensive Income (In thousands) Balance at January 1 $ (1,172) $ — $ (1,172) $ 3,309 $ 3,309 Other comprehensive income (loss) 459 2 461 (803) (803) Balance at March 31 $ (713) $ 2 $ (711) $ 2,506 $ 2,506 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: Three Months Ended March 31, 2023 2022 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net loss $ (15,000) $ (15,000) $ (33,287) $ (33,287) Net earnings attributable to noncontrolling interests (325) (325) (103) (103) Net loss attributable to Angi Inc. Class A and Class B Common Stock shareholders $ (15,325) $ (15,325) $ (33,390) $ (33,390) Denominator: Weighted average basic Class A and Class B common stock shares outstanding 505,033 505,033 502,005 502,005 Dilutive securities (a) (b) — — — — Denominator for loss per share—weighted average shares 505,033 505,033 502,005 502,005 Loss per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: Loss per share $ (0.03) $ (0.03) $ (0.07) $ (0.07) ________________________ (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, 2023 and 2022, 29.6 million and 25.1 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, 2023 and 2022, 0.9 million and 4.5 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, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents revenue by reportable segment: Three Months Ended March 31, 2023 2022 (In thousands) Revenue: Domestic Ads and Leads $ 293,506 $ 294,746 Services 32,059 76,450 Roofing 38,372 36,687 Intersegment eliminations (a) (1,462) (1,677) Total Domestic 362,475 406,206 International 29,932 29,953 Total $ 392,407 $ 436,159 ________________________ (a) Intersegment eliminations related to Ads and Leads revenue earned from sales to Roofing. The following tables present operating income (loss) and Adjusted EBITDA by reportable segment: Three Months Ended March 31, 2023 2022 (In thousands) Operating income (loss): Ads and Leads $ 13,480 $ 15,486 Services (12,452) (25,750) Roofing 411 (6,150) Corporate (14,939) (13,022) International 3,030 (4,521) Total $ (10,470) $ (33,957) Three Months Ended March 31, 2023 2022 (In thousands) Adjusted EBITDA (b) : Ads and Leads $ 39,851 $ 34,325 Services $ (2,168) $ (18,567) Roofing $ 821 $ (5,026) Corporate $ (12,354) $ (10,450) International $ 4,354 $ (3,451) (b) The Company’s primary financial measure and GAAP segment measure is Adjusted EBITDA, which is defined as operating income (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, 2023 2022 (In thousands) Domestic Ads and Leads: Consumer connection revenue $ 212,935 $ 214,347 Advertising revenue 67,181 63,902 Membership subscription revenue 13,199 16,237 Other revenue 191 260 Total Ads and Leads revenue 293,506 294,746 Services revenue 32,059 76,450 Roofing revenue 38,372 36,687 Intersegment eliminations (a) (1,462) (1,677) Total Domestic revenue 362,475 406,206 International Consumer connection revenue 24,745 21,803 Service professional membership subscription revenue 5,058 7,856 Advertising and other revenue 129 294 Total International revenue 29,932 29,953 Total revenue $ 392,407 $ 436,159 ________________________ (a) Intersegment eliminations related to Ads and Leads revenue earned from sales to Roofing. |
Schedule of Revenue by Geographic Areas | Geographic information about revenue and long-lived assets is presented below. Three Months Ended March 31, 2023 2022 (In thousands) Revenue United States $ 362,226 $ 405,508 All other countries 30,181 30,651 Total $ 392,407 $ 436,159 |
Schedule of Long-lived Assets by Geographic Areas | March 31, 2023 December 31, 2022 (In thousands) Long-lived assets (excluding goodwill, intangible assets, and ROU assets): United States $ 133,403 $ 147,322 All other countries 5,652 6,533 Total $ 139,055 $ 153,855 |
Schedule of Reconciliation of Adjusted EBITDA to Operating Income (Loss) | The following tables reconcile operating income (loss) for the Company’s reportable segments and net loss attributable to Angi Inc. shareholders to Adjusted EBITDA: Three Months Ended March 31, 2023 Operating Income (Loss) Stock-Based Depreciation Amortization Adjusted EBITDA (b) (In thousands) Ads and Leads $ 13,480 $ 5,491 $ 18,218 $ 2,662 $ 39,851 Services (12,452) $ 4,209 $ 6,075 $ — $ (2,168) Roofing 411 $ 165 $ 245 $ — $ 821 Corporate (14,939) $ 2,585 $ — $ — $ (12,354) International 3,030 $ 427 $ 897 $ — $ 4,354 Operating loss (10,470) Interest expense (5,029) Other income, net 3,811 Loss before income taxes (11,688) Income tax provision (3,312) Net loss (15,000) Net earnings attributable to noncontrolling interests (325) Net loss attributable to Angi Inc. shareholders $ (15,325) Three Months Ended March 31, 2022 Operating Income (Loss) Stock-Based Depreciation Amortization Adjusted EBITDA (b) (In thousands) Ads and Leads $ 15,486 $ 4,920 $ 11,257 $ 2,662 $ 34,325 Services (25,750) $ 4,540 $ 1,668 $ 975 $ (18,567) Roofing (6,150) $ 830 $ 127 $ 167 $ (5,026) Corporate (13,022) $ 2,572 $ — $ — $ (10,450) International (4,521) $ 123 $ 947 $ — $ (3,451) 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) |
CONSOLIDATED FINANCIAL STATEM_2
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 December 31, 2022 March 31, 2022 December 31, 2021 (In thousands) Cash and cash equivalents $ 314,960 $ 321,155 $ 391,286 $ 428,136 Restricted cash included in other current assets — 107 92 156 Restricted cash included in other non-current assets 880 874 885 1,193 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 315,840 $ 322,136 $ 392,263 $ 429,485 |
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, 2023 December 31, 2022 March 31, 2022 December 31, 2021 (In thousands) Cash and cash equivalents $ 314,960 $ 321,155 $ 391,286 $ 428,136 Restricted cash included in other current assets — 107 92 156 Restricted cash included in other non-current assets 880 874 885 1,193 Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows $ 315,840 $ 322,136 $ 392,263 $ 429,485 |
Schedule of Allowance for Credit Loss | The following table presents the changes in the allowance for credit losses for the three months ended March 31, 2023 and 2022: 2023 2022 (In thousands) Balance at January 1 $ 43,160 $ 33,652 Current period provision for credit losses 24,872 21,611 Write-offs charged against the allowance for credit losses (28,608) (21,396) Recoveries collected 1,402 1,213 Balance at March 31 $ 40,826 $ 35,080 |
Schedule of Accumulated Amortization and Depreciation | The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category March 31, 2023 December 31, 2022 (In thousands) Right-of-use assets (included in “other non-current assets”) $ 65,474 $ 61,818 Capitalized software, leasehold improvements, and equipment $ 162,645 $ 146,608 Intangible assets $ 175,136 $ 172,341 |
Schedule of Other Expense, Net | Three Months Ended March 31, 2023 2022 Interest income $ 3,423 $ 64 Foreign exchange gains (losses) 387 (456) Other 1 1 Other income (expense), net $ 3,811 $ (391) |
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, 2023 USD ($) project professional segment category | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Noncontrolling Interest [Line Items] | ||||
Number of service categories (more than) | category | 500 | |||
Number of domestic service professionals (over) | professional | 206,000 | |||
Number of projects | project | 29 | |||
Number of operating segments | segment | 4 | |||
Number of reportable segments | segment | 4 | |||
Revenue | $ 392,407 | $ 436,159 | ||
Current deferred revenue | 50,244 | $ 50,907 | $ 53,800 | |
Non-current deferred revenue | 100 | 100 | $ 100 | |
Deferred revenue recognized | 31,900 | $ 35,500 | ||
Other current assets | 33,800 | 37,200 | ||
Other non-current assets | 2,500 | $ 1,900 | ||
Change In Accounting Principle, Recording Revenue On Net Basis | ||||
Noncontrolling Interest [Line Items] | ||||
Revenue | $ (25,700) | |||
Angi | IAC | ||||
Noncontrolling Interest [Line Items] | ||||
Economic interest (as a percent) | 83.90% | |||
Voting interest (as a percent) | 98.10% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax (provision) benefit | $ (3,312) | $ 6,083 | |
Effective income tax rate (as a percent) | 15% | ||
Unrecognized tax benefits including tax interest accrued | 6,600 | $ 6,200 | |
Unrecognized tax benefits that if subsequently recognized would reduce income tax expense | 6,200 | $ 5,800 | |
Deferred tax assets | 205,600 | ||
Portion of deferred tax assets that will be utilized upon future reversal of deferred tax liabilities | 22,800 | ||
Portion of deferred tax assets that will be utilized based on forecasts of future taxable income | 182,800 | ||
Deferred tax assets, U.S. federal operating loss carryforwards | 108,000 | ||
Future taxable income | $ 514,500 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 12,493 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 0 | |
Fair Value | 12,495 | $ 0 |
Treasury discount notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,493 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 12,495 |
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, 2023 | Dec. 31, 2022 |
Assets: | ||
Marketable debt securities | $ 12,495 | $ 0 |
Total | 251,159 | 213,961 |
Treasury discount notes | ||
Assets: | ||
Marketable debt securities | 12,495 | |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Total | 213,747 | 189,000 |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | Treasury discount notes | ||
Assets: | ||
Marketable debt securities | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 37,412 | 24,961 |
Significant Other Observable Inputs (Level 2) | Treasury discount notes | ||
Assets: | ||
Marketable debt securities | 12,495 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Treasury discount notes | ||
Assets: | ||
Marketable debt securities | 0 | |
Money market funds | ||
Assets: | ||
Cash equivalents | 213,747 | 189,000 |
Money market funds | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 213,747 | 189,000 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Treasury discount notes | ||
Assets: | ||
Cash equivalents | 24,917 | 24,961 |
Treasury discount notes | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Treasury discount notes | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 24,917 | 24,961 |
Treasury discount notes | Significant Unobservable Inputs (Level 3) | ||
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, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net | $ (495,469) | $ (495,284) |
Unamortized debt issuance costs | 4,500 | 4,700 |
Fair Value | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net | $ (386,250) | $ (368,750) |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument | ||
Less: unamortized debt issuance costs | $ 4,531 | $ 4,716 |
Total long-term debt, net | 495,469 | 495,284 |
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) | Mar. 31, 2023 |
3.875% Senior Notes | Senior Notes | |
Debt Instrument | |
Leverage ratio, maximum | 3.75 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | $ 1,048,384,000 | |
Other comprehensive income (loss) | 504,000 | $ (746,000) |
Balance at end of period | 1,044,975,000 | |
Income tax benefit | 0 | 0 |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | (1,172,000) | 3,309,000 |
Other comprehensive income (loss) | 459,000 | (803,000) |
Balance at end of period | (713,000) | 2,506,000 |
Unrealized Gains on Available-For-Sale Debt Securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | 0 | |
Other comprehensive income (loss) | 2,000 | |
Balance at end of period | 2,000 | |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | (1,172,000) | 3,309,000 |
Other comprehensive income (loss) | 461,000 | (803,000) |
Balance at end of period | $ (711,000) | $ 2,506,000 |
LOSS PER SHARE - Summary (Detai
LOSS PER SHARE - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net (loss) earnings | $ (15,000) | $ (33,287) |
Net earnings attributable to noncontrolling interests | (325) | (103) |
Net loss attributable to Angi Inc. shareholders | $ (15,325) | $ (33,390) |
Weighted average basic Class A and Class B common stock shares outstanding, basic (in shares) | 505,033 | 502,005 |
Dilutive securities (in shares) | 0 | 0 |
Denominator for (loss) earnings per share - weighted average shares, diluted (shares) | 505,033 | 502,005 |
Loss per share attributable to Angi Inc. shareholders: | ||
(Loss) earnings per share, basic (USD per share) | $ (0.03) | $ (0.07) |
(Loss) earnings per share, diluted (USD per share) | $ (0.03) | $ (0.07) |
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) | 29,600 | 25,100 |
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) | 900 | 4,500 |
SEGMENT INFORMATION - Revenue b
SEGMENT INFORMATION - Revenue by Reportable Segment (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 4 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 392,407 | $ 436,159 |
Operating Income (Loss) | (10,470) | (33,957) |
Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 13,480 | 15,486 |
Services | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | (12,452) | (25,750) |
Roofing | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 411 | (6,150) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | (14,939) | (13,022) |
International | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 3,030 | (4,521) |
Domestic | ||
Segment Reporting Information [Line Items] | ||
Revenue | 362,475 | 406,206 |
Domestic | Operating Segments | Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 293,506 | 294,746 |
Domestic | Operating Segments | Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 32,059 | 76,450 |
Domestic | Operating Segments | Roofing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38,372 | 36,687 |
Domestic | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (1,462) | (1,677) |
International | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 29,932 | $ 29,953 |
SEGMENT INFORMATION - Revenue D
SEGMENT INFORMATION - Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 392,407 | $ 436,159 |
Domestic | ||
Segment Reporting Information [Line Items] | ||
Revenue | 362,475 | 406,206 |
Domestic | Operating Segments | Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 293,506 | 294,746 |
Domestic | Operating Segments | Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 32,059 | 76,450 |
Domestic | Operating Segments | Roofing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38,372 | 36,687 |
Domestic | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (1,462) | (1,677) |
Domestic | Ads and Leads | Operating Segments | Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 293,506 | 294,746 |
Domestic | Consumer connection revenue | Operating Segments | Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 212,935 | 214,347 |
Domestic | Advertising revenue | Operating Segments | Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 67,181 | 63,902 |
Domestic | Membership subscription revenue | Operating Segments | Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,199 | 16,237 |
Domestic | Other revenue | Operating Segments | Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 191 | 260 |
Domestic | Services revenue | Operating Segments | Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 32,059 | 76,450 |
Domestic | Roofing revenue | Operating Segments | Roofing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38,372 | 36,687 |
International | ||
Segment Reporting Information [Line Items] | ||
Revenue | 29,932 | 29,953 |
International | Consumer connection revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 24,745 | 21,803 |
International | Service professional membership subscription revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,058 | 7,856 |
International | Advertising and other revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 129 | $ 294 |
SEGMENT INFORMATION - Revenue a
SEGMENT INFORMATION - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue and Long-lived Assets by Geography | |||
Revenue | $ 392,407 | $ 436,159 | |
Long-lived assets (excluding goodwill and intangible assets) | 139,055 | $ 153,855 | |
United States | |||
Revenue and Long-lived Assets by Geography | |||
Revenue | 362,226 | 405,508 | |
Long-lived assets (excluding goodwill and intangible assets) | 133,403 | 147,322 | |
All other countries | |||
Revenue and Long-lived Assets by Geography | |||
Revenue | 30,181 | $ 30,651 | |
Long-lived assets (excluding goodwill and intangible assets) | $ 5,652 | $ 6,533 |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating Income (loss) and Adjusted EBITDA by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ (10,470) | $ (33,957) |
Ads and Leads | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 13,480 | 15,486 |
Adjusted EBITDA | 39,851 | 34,325 |
Services | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | (12,452) | (25,750) |
Adjusted EBITDA | (2,168) | (18,567) |
Roofing | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 411 | (6,150) |
Adjusted EBITDA | 821 | (5,026) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | (14,939) | (13,022) |
Adjusted EBITDA | (12,354) | (10,450) |
International | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 3,030 | (4,521) |
Adjusted EBITDA | $ 4,354 | $ (3,451) |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting, Other Significant Reconciling Item | ||
Operating Income (Loss) | $ (10,470) | $ (33,957) |
Stock-Based Compensation Expense | 12,877 | 12,985 |
Amortization of Intangibles | 2,662 | 3,804 |
Interest expense | (5,029) | (5,022) |
Other income (expense), net | 3,811 | (391) |
Loss before income taxes | (11,688) | (39,370) |
Income tax (provision) benefit | (3,312) | 6,083 |
Net loss | (15,000) | (33,287) |
Net earnings attributable to noncontrolling interests | (325) | (103) |
Net loss attributable to Angi Inc. shareholders | (15,325) | (33,390) |
Ads and Leads | ||
Segment Reporting, Other Significant Reconciling Item | ||
Operating Income (Loss) | 13,480 | 15,486 |
Stock-Based Compensation Expense | 5,491 | 4,920 |
Depreciation | 18,218 | 11,257 |
Amortization of Intangibles | 2,662 | 2,662 |
Adjusted EBITDA | 39,851 | 34,325 |
Services | ||
Segment Reporting, Other Significant Reconciling Item | ||
Operating Income (Loss) | (12,452) | (25,750) |
Stock-Based Compensation Expense | 4,209 | 4,540 |
Depreciation | 6,075 | 1,668 |
Amortization of Intangibles | 0 | 975 |
Adjusted EBITDA | (2,168) | (18,567) |
Roofing | ||
Segment Reporting, Other Significant Reconciling Item | ||
Operating Income (Loss) | 411 | (6,150) |
Stock-Based Compensation Expense | 165 | 830 |
Depreciation | 245 | 127 |
Amortization of Intangibles | 0 | 167 |
Adjusted EBITDA | 821 | (5,026) |
Corporate | ||
Segment Reporting, Other Significant Reconciling Item | ||
Operating Income (Loss) | (14,939) | (13,022) |
Stock-Based Compensation Expense | 2,585 | 2,572 |
Depreciation | 0 | 0 |
Amortization of Intangibles | 0 | 0 |
Adjusted EBITDA | (12,354) | (10,450) |
International | ||
Segment Reporting, Other Significant Reconciling Item | ||
Operating Income (Loss) | 3,030 | (4,521) |
Stock-Based Compensation Expense | 427 | 123 |
Depreciation | 897 | 947 |
Amortization of Intangibles | 0 | 0 |
Adjusted EBITDA | $ 4,354 | $ (3,451) |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 314,960 | $ 321,155 | $ 391,286 | $ 428,136 |
Restricted cash included in other current assets | 0 | 107 | 92 | 156 |
Restricted cash included in other non-current assets | 880 | 874 | 885 | 1,193 |
Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows | $ 315,840 | $ 322,136 | $ 392,263 | $ 429,485 |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest income | $ 3,423 | $ 64 |
Foreign exchange gains (losses) | 387 | (456) |
Other | 1 | 1 |
Other income (expense), net | $ 3,811 | $ (391) |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | $ 43,160 | $ 33,652 |
Current period provision for credit losses | 24,872 | 21,611 |
Write-offs charged against the allowance for credit losses | (28,608) | (21,396) |
Recoveries collected | 1,402 | 1,213 |
Balance at March 31 | $ 40,826 | $ 35,080 |
CONSOLIDATED FINANCIAL STATEM_6
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accumulated Amortization and Depreciation (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Depreciation, Depletion and Amortization [Abstract] | ||
Right-of-use assets (included in “other non-current assets”) | $ 65,474 | $ 61,818 |
Capitalized software, leasehold improvements, and equipment | 162,645 | 146,608 |
Intangible assets | $ 175,136 | $ 172,341 |
CONTINGENCIES - Narrative (Deta
CONTINGENCIES - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency reserve | $ 17.7 |
RELATED PARTY TRANSACTIONS WI_2
RELATED PARTY TRANSACTIONS WITH IAC - Narrative (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | $ 2,300,000 | ||
IAC | Services Agreement | |||
Related Party Transaction [Line Items] | |||
Charges for services rendered pursuant to the services agreement | 1,500,000 | $ 400,000 | |
Amounts due from related party | 0 | $ 0 | |
Amounts due to related party | 0 | 800,000 | |
IAC | Sublease Agreement | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 300,000 | ||
Amounts due from related party | 0 | 0 | |
Amounts due to related party | 0 | 0 | |
Payments received from related party | 400,000 | 400,000 | |
IAC | Tax Sharing Agreement | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 0 | $ 0 | |
Amounts due to related party | $ 1,800,000 | $ 1,400,000 | |
IAC | Employee Matters Agreement | Class B Common Stock | |||
Related Party Transaction [Line Items] | |||
Issuance of common stock to IAC Inc. pursuant to the employee matters agreement (shares) | 0 | ||
IAC | Employee Matters Agreement | Class A Common Stock | |||
Related Party Transaction [Line Items] | |||
Issuance of common stock to IAC Inc. pursuant to the employee matters agreement (shares) | 0 |