Latest news with #JeffKip
Yahoo
27-06-2025
- Business
- Yahoo
5 Revealing Analyst Questions From Angi's Q1 Earnings Call
Angi's first quarter saw a sharp year-over-year revenue decline, but results exceeded Wall Street's expectations, leading to a positive market reaction. Management attributed performance to the rollout of 'homeowner choice,' which allows customers to select their service professional directly, resulting in higher customer satisfaction and improved pro win rates. CEO Jeff Kip emphasized that this change marked a significant improvement in user experience, with the company's Net Promoter Score moving from deeply negative to nearly positive for the first time. The adoption of this model, however, led to a notable drop in lead volume, which management cited as the primary reason for lower reported revenue. Is now the time to buy ANGI? Find out in our full research report (it's free). Revenue: $245.9 million vs analyst estimates of $239.4 million (19.5% year-on-year decline, 2.7% beat) Adjusted EBITDA: $27.66 million vs analyst estimates of $21.36 million (11.2% margin, 29.5% beat) Operating Margin: 8.1%, up from 0.9% in the same quarter last year Service Requests: 3.36 million, down 765,000 year on year Market Capitalization: $747.2 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Eric Sheridan (Goldman Sachs) asked about the impact of macroeconomic trends and margin framework. CFO Andrew Russakoff explained that consumer caution has led to smaller job sizes, but Angi's focus on nondiscretionary services and operational discipline provides downside protection. Cory Carpenter (JPMorgan) requested clarity on revenue trends and capital allocation priorities. CEO Jeff Kip emphasized confidence in sequential revenue improvement due to stabilization in proprietary leads and discussed the company's approach to share buybacks and disciplined acquisitions. Justin Patterson (KeyBanc) inquired about future product initiatives and the role of AI. CEO Jeff Kip detailed ongoing improvements in job matching and the rollout of LLM-based AI helpers, highlighting their positive effects on both customer and pro experience. Stephen Ju (UBS) asked about international performance and pro network trends. CEO Jeff Kip explained that restructuring the Canadian business and compliance with European regulations led to temporary declines, but margins improved and network capacity remains robust. Dan Kurnos (The Benchmark Company) questioned pro acquisition strategy and marketing channels. CEO Jeff Kip confirmed a focus on higher-value pros and highlighted successful expansion into new paid acquisition channels, including search and social media. In the coming quarters, the StockStory team will be watching (1) the pace of proprietary channel growth and whether revenue per lead increases as the unified platform rollout progresses, (2) further adoption and impact of AI-driven tools on customer and pro engagement, and (3) stabilization of the pro network as online self-serve pro acquisition ramps up. The effectiveness of cost controls and responses to regulatory changes will also be important factors to monitor. Angi currently trades at $15.41, up from $11.25 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
IAC Inc. (IAC): A Bull Case Theory
We came across a bullish thesis on IAC Inc. on High Growth Investing's Substack by Stefan Waldhauser. In this article, we will summarize the bulls' thesis on IAC. IAC Inc.'s share was trading at $ 37.14 as of June 20th. Please note that the original thesis was published in November. A closeup of a digital newsroom, highlighting the complexity of the modern media landscape. IAC, a long-standing holding in the author's model portfolio, continues to trade well below intrinsic value, with shares at $47 and a $4.0 billion market cap following its Q3 2024 report. The planned 2025 spin-off of Angi, IAC's home services platform, represents the company's 10th such move and will distribute roughly 5 Angi shares per IAC share. Despite Angi's recent 30% price drop, restructuring efforts under new CEO Jeff Kip have stabilized the business, with an expected 2024 EBITDA of $130–150 million. Still, Angi trades at a steep discount to its improving fundamentals. IAC's 21.8% stake in MGM—worth ~$2.4 billion—is now its largest asset, growing due to MGM's ongoing buybacks. This alone nearly covers IAC's market cap when combined with $1.1 billion in cash. Thus, all other holdings are effectively valued at zero. Yet, the unlisted portfolio is substantial. Dotdash Meredith, post-merger with Meredith, is recovering, with 2024 EBITDA projected at $300 million; it could be worth ~$2.2 billion. Turo, the car-sharing leader, may IPO at a $3 billion+ valuation, valuing IAC's 32% stake at ~$1 billion. Care, acquired in 2020 and profitable, is conservatively valued at $500 million. Vivian Health, EmployBridge shares, and legacy search assets could be worth another $200 million. Collectively, the unlisted assets are estimated at $3.9 billion, implying ~$46/share in hidden value. The Angi spin-off may reduce structural complexity and better showcase this mispricing. With potential catalysts in 2025, including the Turo IPO or exit, the author remains confident that IAC is primed for a swift re-rating once the market acknowledges its sum-of-the-parts value. Previously, we covered a bullish thesis on IAC Inc. by Boyar Research in February 2025, which highlighted the company's proven spin-off strategy, management reshuffle, and a renewed focus on capital allocation amid ongoing turnarounds at Angi and Dotdash Meredith. The company's stock price has depreciated approximately 20% since our coverage. This is because Angi's underperformance and market skepticism on restructuring masked the sum-of-the-parts value. The thesis still stands as the spin-off and improved fundamentals at core holdings continue to signal long-term upside. Stefan Waldhauser shares a similar view but emphasizes the extreme undervaluation of IAC's unlisted assets and the potential re-rating post-Angi spin-off and Turo's IPO. IAC Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held IAC at the end of the first quarter, which was 54 in the previous quarter. While we acknowledge the risk and potential of IAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
