Angi Inc. CEO Jeff Kip Discusses Strategic Growth and Operational Efficiency at JPMorgan Global Technology, Media and Communications Conference

Key Takeaways

TL;DR: Angi (ANGI) emphasized stabilization post-spin-off, targeting 2026 rev. growth via improved proprietary channel performance and AI-driven efficiency. Key initiatives include enhancing homeowner/pro success rates, expanding margins via cost control, and leveraging international ops (10% rev., higher margins). Tariff impact (~3-5% demand hit) seen as transitory; LT goal of DD growth achievable via market share gains (current <2%).

1. Operational & Financial Performance

• Shrink-to-Grow Complete: Rev. declined 30% ($1.5B → $1B+) but swung to positive cash flow and DD adj. EBITDA margins.
  • Homeowner NPS ↑30 pts; pro retention +30% in 2 years.
• 2025 Guidance: Flat rev. (vs. 2024) with sequential improvement; 2026 growth expected via:
  • Proprietary SRs/Leads Stabilizing (+ traffic in Q1).
  • Network channel (historically ~70% of rev) now at stable baseline.

2. Strategic Pillars

• Product & Tech Initiatives
  • Homeowner Choice: Fully rolled out; ↑30% hire rate when pros are selected (vs. auto-match). Impact:
    • Lower network rev. short-term but ↑LTV via better matches/NPS.
  • Single Pro Product Rollout (Q3 2025): Consolidates legacy Angie's List/HomeAdviser platforms; improves targeting (↑ARPL) + unlocks $20M+ cost savings.
  • AI Integration: Enhances homeowner job intake (↑match accuracy), online pro enrollment (H2 2025), and care efficiency.
• Growth Levers
  • Int’l Biz (~10% Rev): DD historic growth; structural edge in fragmented EU markets (50%+ pro success rate vs. US).
  • Share Gain Roadmap: Target 5-10% LT share (vs. <2% today) via improved success rates (vs. Google/Yelp).

3. Margin & Efficiency Drivers

• Sales Force Consolidation: 40-45% smaller vs. 2024; ↑sales efficiency (150%+ value/head).
• Tech Stack Simplification: Migrating EU/US platforms → margin accretion (e.g., sunsetting legacy systems → $M savings).
• GenAI Optimization: Lower CAC/pro acquisition costs (European online enroll model tested in Boston shows ↑efficiency).

4. Macro & Competitive Landscape

• Tariff Impact (Apr 2025): ~10% initial traffic/conversion drop; stabilized to 3-5% demand hit (embedded in 2025 guide).
• Countercyclical Upside: Pro reliance on ANGI ↑ in downturns (per GFC trends; ↑lead demand + pricing power).
• Google Reliance: 1/3+ traffic via SEM; LSAs (Local Service Ads) remain competitor but ANGI touts better pro vetting/match rates.

5. Capital Allocation