Angi wins profits as the CEO says the company will benefit from a cooling off of home improvement work

An earlier version of this report misstated Ang’s adjusted earnings before interest, taxes, depreciation and amortization for the most recent quarter. This has been fixed.

The home improvement craze is slowing down, and it’s Angi Inc. useful for

The company, which combines the former Angie’s List and HomeAdvisor services, saw revenue grow 23% in the most recent quarter, highlighted by Angie’s improved performance.

ANGI,

+0.33%

ads and runs the business.

One way Angi makes money is when home service professionals run ads or perform performance marketing to attract new customers. At the height of the pandemic, these professionals were so busy with jobs that they didn’t need to actively look for a new business, but now that home improvement trends are cooling, they’ve shown more willingness for paid promotions.

“Consumer demand has slowed, particularly for discretionary tasks,” CEO Oisin Hanrahan told MarketWatch. “It’s led to professionals being more involved because every job we have is worth more to a professional.”

Ang’s ads and leads business grew revenue by 5% in the latest quarter, marking the first quarter of growth since the second quarter of 2021.

“It’s good for Ang to have professionals willing to spend on their book of business,” Hanrahan continued, adding that the company is looking for a “moderate” balance between supply and demand.

Read: People ‘squeezed’ by soaring rents, especially Gen Z, according to Bank of America

Overall, Ang’s revenue rose to $515.8 million from $421.0 million a year ago, while analysts tracked by FactSet had forecast $495.4 million.

Hanrahan pointed to a mix of broad trends in the last quarter. While consumers are moving away from non-optional projects, there is still “steady demand” for optional projects such as electrical maintenance or air conditioning repairs.

Even within freedom of choice, priorities change. Now that consumers are leaving their homes more and more, they are not breaking as many toilets, dishwashers and ovens as they did during the pandemic. However, due to the high temperature, they still have a high need for heating, ventilation and air conditioning (HVAC) maintenance.

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Angi also makes money through a service business where homeowners pay the company for services that professionals list on the platform. Trends there have “definitely softened,” but the company is trying to achieve profitability in that part of the business, according to Hanrahan.

The company’s total net loss was $24.2 million, or 5 cents per share, in the latest quarter, compared with $30.3 million, or 6 cents per share, in the year-earlier period. Analysts had modeled a second-quarter GAAP loss of 6 cents per share.

Angi posted adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $9.7 million, compared with a loss of $4.4 million a year earlier. The FactSet consensus was for adjusted Ebitda of $3 million.

Hanrahan noted that the company continued to see “very strong growth” in its advertising and lead business in July, although growth in services slowed as the company completed its acquisition of the roofing business and also dealt with some operational issues in that business.

Ang’s ad and lead revenue grew 7% year-over-year in June, while services revenue grew 18%, down from 107% in the second quarter. Overall revenue increased by 10%.

IAC/InterActiveCorp.

IAC,

How do I modernize my home in 2022?

-0.18%

• has a larger economic interest in Ang, and IAC also released its second quarter results on Tuesday. See the article : State Police receives AED donation from Lowe’s Home Improvement.
• In the most recent period, IAC posted a net loss of $869.1 million, or $10.02 per share, compared to net income of $194.8 million, or $2.02 per share, in the previous quarter. The net loss figure reflects the unrealized loss on the company’s investment in MGM Resorts International
• MGM,
• -1.68%
• and an $87 million charge related to, among other things, the company’s Mosaic business.
• Analysts tracked by FactSet had forecast a GAAP loss of 65 cents per share.
• IAC reported adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $37.4 million, up from $26.4 million a year earlier, while the FactSet consensus was $40 million.
• IAC’s revenue rose to $1.36 billion from $829.5 million, while analysts were modeling $1.38 billion. Revenue at the company’s Dotdash media unit grew 568%, boosted by the company’s acquisition of the Meredith brands late last year.

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What is the most profitable home improvement?

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paint a piece of furniture.

What is the disadvantage of remodeling?

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With contractors out of business and material prices falling, a recession is a pretty good time to renovate that starter home if the project offers good value for a minimal investment.

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