ANGI : Reports Q1 2021 Results

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ANGI INC. REPORTS Q1 2021 - Q1 REVENUE INCREASES 13% TO $387 MILLION

DENVER- May 6, 2021-Angi Inc. (NASDAQ: ANGI) released its first quarter results today. Monthly metrics for Angi Inc. through April 2021 are included on page 3 of this release. A letter to IAC shareholders from IAC CEO Joey Levin was posted on the Investor Relations section of IAC's website at ir.iac.com.

ANGI INC. SUMMARY RESULTS

($ in millions except per share amounts)

			Q1 2021		Q1 2020	Growth
	Revenue	$	387.0	$	343.6	13%
	Operating income (loss)		0.1		(16.3)	NM
	Net earnings (loss)		1.9		(9.0)	NM
	GAAP Diluted EPS		0.00		(0.02)	NM
	Adjusted EBITDA		23.2		34.4	-33%

See reconciliations of GAAP to non-GAAP measures beginning on page 9.

Q1 2021 HIGHLIGHTS

• On March 17, 2021, Angie's List was renamed Angi, a new name for a new era in everything home, and the parent company ANGI Homeservices Inc. became Angi Inc.
• Revenue increased 13% year-over-year, the highest quarterly growth since Q1 2020 reflecting:

• • 12% Marketplace growth including 66% growth from Angi Services (pre-priced offerings) to $55 million
  • 7% Advertising and Other growth
  • 33% growth in Europe
• Marketplace Transacting Service Professionals increased 11% year-over-year to a record high of 212,000 and has now grown sequentially for the fifth consecutive quarter.
• Advertising Service Professionals increased 6% year-over-year to 40,000, the fifth consecutive quarter of sequential growth.
• Marketplace Monetized Transactions increased 17% year-over-year to 4.2 million with over 17 million in the trailing twelve months.
• Operating income was $0.1 million and Adjusted EBITDA was $23 million with both reflecting the impact of a $6 million one-time charge related to the acquisition of an additional 21% ownership interest in MyBuilder.

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Revenue
	Q1 2021	Q1 2020		Growth
($ in millions; rounding differences may occur)
Marketplace	$	291.1	$	258.8	12%
Advertising and Other		70.0		65.4		7%
Total North America	$	361.0	$	324.1	11%
Europe		26.0		19.5		33%
Total Revenue	$	387.0	$	343.6	13%

Operating income (loss) and Adjusted EBITDA

		Q1 2021	Q1 2020	Growth
($ in millions; rounding differences may occur)
Operating income (loss):
North America	$	9.6	$	(8.1)	NM
Europe			(9.5)		(8.2)	-16%
Total	$	0.1	$	(16.3)	NM
Adjusted EBITDA:
North America	$	31.2	$	41.4	-25%
Europe			(8.0)		(7.0)	-14%
Total	$	23.2	$	34.4	-33%

• Operating income was $0.1 million as compared to a loss of $16.3 million in Q1 2020 reflecting:

• $23.5 million lower stock-based compensation expense driven primarily by the forfeiture of certain unvested awards
• $7.9 million lower amortization of intangible assets
• 33% lower Adjusted EBITDA due primarily to:
• • Continued investment in Angi Services
  • $6.0 million one-time charge related to the acquisition of an additional 21% ownership interest in MyBuilder
  • $4.0 million in charges associated with impairments at Fixd Repair and management changes at Angi Inc.

Income Taxes

The Company recorded an income tax benefit of $9.3 million in Q1 2021 due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards. The Company recorded an income tax benefit of $9.0 million in Q1 2020 primarily due to an adjustment to deferred taxes resulting from a true-up of a state tax rate.

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Operating Metrics

	Q1 2021	Q1 2020	Growth
Marketplace Service Requests (in thousands)		7,709		5,968	29%
Marketplace Monetized Transactions (in thousands)		4,193		3,590	17%
Marketplace Revenue per Monetized Transaction	$	69	$	72	-4%
Marketplace Transacting Service Professionals (in thousands)		212		191	11%
Marketplace Revenue per Transacting Service Professional	$	1,375	$	1,352	2%
Advertising Service Professionals (in thousands)		40		37	6%

Monthly Metrics (year-over-year growth trends) (a)

	Jan '21	Feb '21	Mar '21	Apr '21
Marketplace Revenue	4%	-2%	35%	27%
Advertising and Other Revenue	6%	5%	10%	10%
Total North America Revenue	5%	-1%	30%	23%
Europe Revenue	18%	27%	61%	53%
Total Revenue	6%	1%	31%	25%
Marketplace Service Requests	10%	17%	60%	30%
Marketplace Monetized Transactions	0%	3%	46%	28%
Marketplace Transacting Service Professionals	11%	9%	11%	14%
Advertising Service Professionals	7%	6%	6%	7%

1. As of the date of this document, the Company has not yet completed its financial close process for April 2021. As a result, the information herein for April 2021 is preliminary and based upon information available to the Company as of the date of this document. During the course of the financial close process, the Company may identify items that would require it to make adjustments, which may impact growth rates and be material to the information presented above.

Free Cash Flow

For the three months ended March 31, 2021, net cash from operations decreased $40.6 million to $15.3 million and Free Cash Flow decreased $46.1 million to negative $3.4 million due primarily to lower Adjusted EBITDA and unfavorable working capital.

		Three Months Ended March 31,
($ in millions; rounding differences may occur)		2021		2020
Net cash provided by operating activities	$	15.3	$	55.9
Capital expenditures		(18.7)		(13.2)
Free Cash Flow	$	(3.4)	$	42.7

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LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2021:

• Angi Inc. had 504.0 million Class A and Class B common shares outstanding.
• IAC's economic interest in Angi Inc. was 84.2% and IAC's voting interest in Angi Inc. was 98.2%.
• Angi Inc. held $777 million in cash and cash equivalents and had $713 million of debt.

Angi Inc. has 18.9 million shares remaining in its stock repurchase authorization.

Angi Inc. may repurchase shares over an indefinite period on the open market and in privately negotiated transactions, depending on those factors management deems relevant at any particular time, including, without limitation, market conditions, share price and future outlook.

Angi Group's (a subsidiary of Angi Inc.) $250 million revolving credit facility had no borrowings as of March 31, 2021 and currently has no borrowings.

VIDEO CONFERENCE CALL

IAC and Angi Inc. will live stream a joint video conference call to answer questions regarding their first quarter results on Friday, May 7, 2021, at 8:30 a.m. Eastern Time. This live stream will include the disclosure of certain information, including forward-looking information, which may be material to an investor's understanding of IAC and Angi Inc.'s business. The live stream will be open to the public at ir.angi.com or ir.iac.com.

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DILUTIVE SECURITIES

Angi Inc. has various dilutive securities. The table below details these securities as well as potential dilution at various stock prices (shares in millions; rounding differences may occur).

		Avg.
		Exercise		As of
	Shares	Price	4/30/21				Dilution at:
Share Price				$16.01	$	17.00	$	18.00	$	19.00	$	20.00
Absolute Shares as of 4/30/21	504.4			504.4		504.4		504.4		504.4		504.4
SARs	1.2	$	2.80	0.4		0.4		0.4		0.4		0.4
Options	0.9	$	12.56	0.1		0.1		0.1		0.1		0.1
RSUs and subsidiary denominated equity awards	12.8			3.4		3.4		3.4		3.4		3.4
IAC denominated equity awards	0.1				0.1		0.1		0.1		0.1		0.1
Total Dilution				3.9		3.9		3.9		3.9		3.9
% Dilution				0.8%		0.8%		0.8%		0.8%		0.8%
Total Diluted Shares Outstanding				508.3		508.3		508.3		508.3		508.3

The dilutive securities presentation is calculated using the method and assumptions described below, which are different from those used for GAAP dilution, which is calculated based on the treasury stock method.

The Company currently settles all equity awards on a net basis; therefore, the dilutive effect is presented as the net number of shares expected to be issued upon exercise or vesting, and in the case of options, assuming no proceeds are received by the Company. Any required withholding taxes are paid in cash by the Company on behalf of the employees assuming a withholding tax rate of 50%. In addition, the estimated income tax benefit from the tax deduction received upon the exercise or vesting of these awards is assumed to be used to repurchase Angi Inc. shares. Assuming all awards were exercised or vested on April 30, 2021, withholding taxes paid by the Company on behalf of the employees upon net settlement would have been $90.1 million, assuming a stock price of $16.01 and a 50% withholding rate. The table above assumes no change in the fair value estimate of the non-publicly traded subsidiary denominated equity awards from the values used at March 31, 2021.