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Angi Revenue Falls 8% as Home Services Demand Weakens
Revenue missed estimates by $7 million as homeowners defer big projects. CEO says environment is the weakest in his tenure. Stock drops 7% after hours.
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Angi Inc. posted a steeper-than-expected revenue decline in the second quarter, as homeowners pulled back on renovation and repair projects. The home-services platform reported $281 million in revenue, down 8% from a year earlier and below the $288 million analysts had projected.
The company swung to an adjusted net loss of $33 million, or 6 cents a share, from a profit of $1 million a year ago. Analysts had expected a loss of 4 cents.
CEO Jeffrey Kip said the environment was the softest he has seen in his tenure. "Homeowners are deferring larger projects," he said on the call. "The macro is real."
The company's service provider segment, which connects contractors with homeowners, saw revenue drop 12% as fewer pros signed up for paid plans. The ads and other segment fell 5%.
Angi is cutting costs to offset the revenue pressure. It reduced headcount by 4% in the quarter and trimmed marketing spend by $10 million. Operating expenses fell 6% to $309 million, but that was not enough to keep the quarter profitable.
The company generated $24 million in free cash flow, down from $35 million a year earlier.