ANGI - Angi's Turnaround Drags On
On the surface, Angi (NASDAQ: ANGI) delivered strong results in its second-quarter earnings report last Tuesday. The online home-services marketplace, which was formed by the 2017 merger of HomeAdvisor and Angie's List, reported that revenue grew 23% to $515.8 million, its fastest pace since 2018 -- and well ahead of estimates of $496.5 million.
On the bottom line, the company reversed an adjusted loss in earnings before interest, taxes, depreciation, and amortization (EBITDA ) in the quarter a year ago to post an adjusted EBITDA profit of $9.7 million, its first EBITDA gain in three quarters. Yet, in spite of the strong results and other positives in the quarter, including a return to revenue growth in its ads and leads segment, the stock still sunk 15% on the report.
The culprit seemed to be weak results in July as revenue growth slowed to just 10%, and growth in its fast-growing services segment -- the pre-priced home services business it launched a few years ago -- came in at just 18% after jumping 107% in the second quarter. The pre-priced services business gives customers an upfront price when they book jobs, while the ads and leads business just connects the homeowner with the service provider.
For further details see:
Angi's Turnaround Drags On