☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from__________to__________ |
Delaware | 82-1204801 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Class A Common Stock, par value $0.001 | ANGI | The Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Class A Common Stock | 82,445,011 | ||||
Class B Common Stock | 421,958,021 | ||||
Class C Common Stock | — | ||||
Total outstanding Common Stock | 504,403,032 |
Page
Number |
||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands, except per share data) | |||||||||||
Revenue | $ | 387,029 | $ | 343,650 | |||||||
Operating costs and expenses: | |||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 53,828 | 33,229 | |||||||||
Selling and marketing expense | 205,840 | 189,959 | |||||||||
General and administrative expense | 88,162 | 94,556 | |||||||||
Product development expense | 18,047 | 17,084 | |||||||||
Depreciation | 15,969 | 12,138 | |||||||||
Amortization of intangibles | 5,074 | 12,980 | |||||||||
Total operating costs and expenses | 386,920 | 359,946 | |||||||||
Operating income (loss) | 109 | (16,296) | |||||||||
Interest expense | (6,617) | (2,274) | |||||||||
Other (expense) income, net | (767) | 421 | |||||||||
Loss before income taxes | (7,275) | (18,149) | |||||||||
Income tax benefit | 9,289 | 8,965 | |||||||||
Net earnings (loss) | 2,014 | (9,184) | |||||||||
Net (earnings) loss attributable to noncontrolling interests | (83) | 226 | |||||||||
Net earnings (loss) attributable to Angi Inc. shareholders | $ | 1,931 | $ | (8,958) | |||||||
Per share information attributable to Angi Inc. shareholders: | |||||||||||
Basic earnings (loss) per share | $ | 0.00 | $ | (0.02) | |||||||
Diluted earnings (loss) per share | $ | 0.00 | $ | (0.02) | |||||||
Stock-based compensation expense by function: | |||||||||||
Selling and marketing expense | $ | 1,017 | $ | 1,003 | |||||||
General and administrative expense | 84 | 22,980 | |||||||||
Product development expense | 933 | 1,592 | |||||||||
Total stock-based compensation expense | $ | 2,034 | $ | 25,575 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net earnings (loss) | $ | 2,014 | $ | (9,184) | |||||||
Other comprehensive income (loss): | |||||||||||
Change in foreign currency translation adjustment | 679 | (6,568) | |||||||||
Comprehensive income (loss) | 2,693 | (15,752) | |||||||||
Components of comprehensive (income) loss attributable to noncontrolling interests: | |||||||||||
Net (earnings) loss attributable to noncontrolling interests | (83) | 226 | |||||||||
Change in foreign currency translation adjustment attributable to noncontrolling interests | (693) | (46) | |||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (776) | 180 | |||||||||
Comprehensive income (loss) attributable to Angi Inc. shareholders | $ | 1,917 | $ | (15,572) |
Angi Inc. Shareholders’ Equity
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A
Common Stock
$0.001
Par Value
|
Class B
Convertible Common Stock
$0.001
Par Value
|
Class C
Common Stock
$0.001
Par Value
|
Total
Angi Inc. Shareholders’ Equity
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) |
Total
Shareholders’
Equity
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable
Noncontrolling Interests |
Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Treasury
Stock |
Noncontrolling
Interests |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | Shares | $ | Shares | $ | Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 26,364 | $ | 94 | 94,238 | $ | 422 | 421,862 | $ | — | — | $ | 1,379,469 | $ | 9,749 | $ | 4,637 | $ | (122,081) | $ | 1,272,290 | $ | 10,567 | $ | 1,282,857 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) earnings | (60) | — | — | — | — | — | — | — | 1,931 | — | — | 1,931 | 143 | 2,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 580 | — | — | — | — | — | — | — | — | (14) | — | (14) | 113 | 99 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | 2,542 | — | — | — | 2,542 | — | 2,542 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | — | 1 | 1,591 | — | — | — | — | (48,052) | — | — | — | (48,051) | — | (48,051) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement | — | 3 | 2,579 | — | 96 | — | — | (3) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | — | — | — | (4,916) | (4,916) | — | (4,916) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of redeemable noncontrolling interests | (22,938) | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 662 | — | — | — | — | — | — | (662) | — | — | — | (662) | — | (662) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 4,608 | $ | 98 | 98,408 | $ | 422 | 421,958 | $ | — | — | $ | 1,333,294 | $ | 11,680 | $ | 4,623 | $ | (126,997) | $ | 1,223,120 | $ | 10,823 | $ | 1,233,943 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 26,663 | $ | 87 | 87,007 | $ | 422 | 421,570 | $ | — | — | $ | 1,357,075 | $ | 16,032 | $ | (1,379) | $ | (57,949) | $ | 1,314,288 | $ | 9,264 | $ | 1,323,552 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) earnings | (275) | — | — | — | — | — | — | — | (8,958) | — | — | (8,958) | 49 | (8,909) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 99 | — | — | — | — | — | — | — | — | (6,614) | — | (6,614) | (53) | (6,667) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 15 | — | — | — | — | — | — | 22,211 | — | — | — | 22,211 | — | 22,211 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | — | 1 | 617 | — | — | — | — | (2,553) | — | — | — | (2,552) | — | (2,552) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement | — | — | — | — | 187 | — | — | (791) | — | — | — | (791) | — | (791) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | — | — | — | (38,971) | (38,971) | — | (38,971) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of redeemable noncontrolling interests | (3,165) | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 476 | — | — | — | — | — | — | (476) | — | — | — | (476) | — | (476) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment pursuant to the tax sharing agreement | — | — | — | — | — | — | — | 3,613 | — | — | — | 3,613 | — | 3,613 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | 23,813 | $ | 88 | 87,624 | $ | 422 | 421,757 | $ | — | — | $ | 1,379,079 | $ | 7,074 | $ | (7,993) | $ | (96,920) | $ | 1,281,750 | $ | 9,260 | $ | 1,291,010 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ | 2,014 | $ | (9,184) | |||||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||||||||||
Stock-based compensation expense | 2,034 | 25,575 | |||||||||
Amortization of intangibles | 5,074 | 12,980 | |||||||||
Provision for credit losses | 19,118 | 17,807 | |||||||||
Depreciation | 15,969 | 12,138 | |||||||||
Deferred income taxes | (10,268) | (8,348) | |||||||||
Impairment of long-lived assets | 1,854 | — | |||||||||
Revenue reserves | 2,910 | 2,140 | |||||||||
Other adjustments, net | 2,235 | 1,076 | |||||||||
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||||
Accounts receivable | (34,638) | (21,226) | |||||||||
Other assets | 573 | 3,043 | |||||||||
Accounts payable and other liabilities | 4,539 | 21,008 | |||||||||
Income taxes payable and receivable | 938 | (873) | |||||||||
Deferred revenue | 2,993 | (230) | |||||||||
Net cash provided by operating activities | 15,345 | 55,906 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (18,743) | (13,236) | |||||||||
Proceeds from maturities of marketable debt securities | 50,000 | — | |||||||||
Net proceeds from the sale of a business | — | 767 | |||||||||
Net cash provided by (used in) investing activities | 31,257 | (12,469) | |||||||||
Cash flows from financing activities: | |||||||||||
Principal payments on Term Loan | (6,875) | (3,438) | |||||||||
Purchase of treasury stock | (4,916) | (38,512) | |||||||||
Withholding taxes paid on behalf of employees on net settled stock-based awards | (48,168) | (3,222) | |||||||||
Purchase of noncontrolling interests | (22,938) | (3,165) | |||||||||
Net cash used in financing activities | (82,897) | (48,337) | |||||||||
Total cash used | (36,295) | (4,900) | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 384 | (1,327) | |||||||||
Net decrease in cash and cash equivalents and restricted cash | (35,911) | (6,227) | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | 813,561 | 391,478 | |||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 777,650 | $ | 385,251 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Treasury discount notes | $ | 49,995 | $ | — | $ | — | $ | 49,995 | |||||||||||||||
Total available-for-sale marketable debt securities | $ | 49,995 | $ | — | $ | — | $ | 49,995 |
March 31, 2021 | |||||||||||||||||||||||
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs
(Level 3) |
Total
Fair Value Measurements |
||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 552,024 | $ | — | $ | — | $ | 552,024 | |||||||||||||||
Treasury discount notes | — | 100,000 | — | 100,000 | |||||||||||||||||||
Time deposits | — | 1,586 | — | 1,586 | |||||||||||||||||||
Marketable debt securities: | |||||||||||||||||||||||
Treasury discount notes | — | — | — | — | |||||||||||||||||||
Total | $ | 552,024 | $ | 101,586 | $ | — | $ | 653,610 |
December 31, 2020 | |||||||||||||||||||||||
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs
(Level 3) |
Total
Fair Value Measurements |
||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 374,014 | $ | — | $ | — | $ | 374,014 | |||||||||||||||
Treasury discount notes | — | 324,995 | — | 324,995 | |||||||||||||||||||
Time deposits | — | 2,721 | — | 2,721 | |||||||||||||||||||
Marketable debt securities: | |||||||||||||||||||||||
Treasury discount notes | — | 49,995 | — | 49,995 | |||||||||||||||||||
Total | $ | 374,014 | $ | 377,711 | $ | — | $ | 751,725 |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Long-term debt, net (a)
|
$ | (705,987) | $ | (710,692) | $ | (712,277) | $ | (725,700) |
March 31, 2021 | December 31, 2020 | ||||||||||
(In thousands) | |||||||||||
3.875% ANGI Group Senior Notes due August 15, 2028 (“Senior Notes”); interest payable each February 15 and August 15, commencing February 15, 2021
|
$ | 500,000 | $ | 500,000 | |||||||
ANGI Group Term Loan due November 5, 2023 | 213,125 | 220,000 | |||||||||
Total long-term debt | 713,125 | 720,000 | |||||||||
Less: unamortized debt issuance costs | 7,138 | 7,723 | |||||||||
Total long-term debt, net | $ | 705,987 | $ | 712,277 |
Years Ending December 31, | (In thousands) | |||||||
2022 | $ | 20,625 | ||||||
2023 | 192,500 | |||||||
2028 | 500,000 | |||||||
Total | 713,125 | |||||||
Less: unamortized debt issuance costs | 7,138 | |||||||
Total long-term debt, net | $ | 705,987 |
Three Months Ended March 31, 2021 | |||||||||||||||||
Foreign
Currency Translation Adjustment |
Accumulated Other Comprehensive Income | ||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at January 1 | $ | 4,637 | $ | 4,637 | |||||||||||||
Other comprehensive loss | (14) | (14) | |||||||||||||||
Balance at March 31 | $ | 4,623 | $ | 4,623 |
Three Months Ended March 31, 2020 | |||||||||||
Foreign
Currency Translation Adjustment |
Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||
Balance at January 1 | $ | (1,379) | $ | (1,379) | |||||||
Other comprehensive loss | (6,614) | (6,614) | |||||||||
Balance at March 31 | $ | (7,993) | $ | (7,993) |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net earnings (loss) | $ | 2,014 | $ | 2,014 | $ | (9,184) | $ | (9,184) | |||||||||||||||
Net (earnings) loss attributable to noncontrolling interests | (83) | (83) | 226 | 226 | |||||||||||||||||||
Net earnings (loss) attributable to Angi Inc. Class A and Class B Common Stock shareholders | $ | 1,931 | $ | 1,931 | $ | (8,958) | $ | (8,958) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average basic Class A and Class B common stock shares outstanding | 500,663 | 500,663 | 499,454 | 499,454 | |||||||||||||||||||
Dilutive securities (a) (b) (c)
|
— | 9,990 | — | — | |||||||||||||||||||
Denominator for earnings (loss) per share—weighted average shares | 500,663 | 510,653 | 499,454 | 499,454 | |||||||||||||||||||
Earnings (loss) per share attributable to Angi Inc. Class A and Class B Common Stock shareholders: | |||||||||||||||||||||||
Earnings (loss) per share | $ | 0.00 | $ | 0.00 | $ | (0.02) | $ | (0.02) |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
North America | $ | 361,041 | $ | 324,132 | |||||||||||||||||||
Europe | 25,988 | 19,518 | |||||||||||||||||||||
Total
|
$ | 387,029 | $ | 343,650 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
North America | |||||||||||||||||||||||
Marketplace: | |||||||||||||||||||||||
Consumer connection revenue(a)
|
$ | 272,353 | $ | 239,830 | |||||||||||||||||||
Service professional membership subscription revenue
|
11,952 | 13,777 | |||||||||||||||||||||
Other revenue | 6,745 | 5,169 | |||||||||||||||||||||
Total Marketplace revenue | 291,050 | 258,776 | |||||||||||||||||||||
Advertising and other revenue(b)
|
69,991 | 65,356 | |||||||||||||||||||||
Total North America revenue
|
361,041 | 324,132 | |||||||||||||||||||||
Europe | |||||||||||||||||||||||
Consumer connection revenue(c)
|
22,351 | 15,689 | |||||||||||||||||||||
Service professional membership subscription revenue | 3,328 | 3,299 | |||||||||||||||||||||
Advertising and other revenue | 309 | 530 | |||||||||||||||||||||
Total Europe revenue
|
25,988 | 19,518 | |||||||||||||||||||||
Total revenue
|
$ | 387,029 | $ | 343,650 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Revenue
|
|||||||||||||||||||||||
United States | $ | 356,444 | $ | 319,821 | |||||||||||||||||||
All other countries | 30,585 | 23,829 | |||||||||||||||||||||
Total | $ | 387,029 | $ | 343,650 |
March 31, 2021 | December 31, 2020 | ||||||||||
(In thousands) | |||||||||||
Long-lived assets (excluding goodwill and intangible assets): | |||||||||||
United States | $ | 101,151 | $ | 97,841 | |||||||
All other countries | 10,280 | 11,001 | |||||||||
Total | $ | 111,431 | $ | 108,842 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
North America | $ | 9,577 | $ | (8,108) | |||||||||||||||||||
Europe | (9,468) | (8,188) | |||||||||||||||||||||
Total | $ | 109 | $ | (16,296) |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Adjusted EBITDA(d):
|
|||||||||||||||||||||||
North America | $ | 31,165 | $ | 41,391 | |||||||||||||||||||
Europe | $ | (7,979) | $ | (6,994) |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
Operating Income (Loss) |
Stock-Based
Compensation Expense |
Depreciation |
Amortization
of Intangibles |
Adjusted
EBITDA |
|||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
North America | $ | 9,577 | $ | 1,936 | $ | 14,578 | $ | 5,074 | $ | 31,165 | |||||||||||||||||||
Europe | (9,468) | $ | 98 | $ | 1,391 | $ | — | $ | (7,979) | ||||||||||||||||||||
Operating income (loss) | 109 | ||||||||||||||||||||||||||||
Interest expense | (6,617) | ||||||||||||||||||||||||||||
Other loss, net | (767) | ||||||||||||||||||||||||||||
Loss before income taxes | (7,275) | ||||||||||||||||||||||||||||
Income tax benefit | 9,289 | ||||||||||||||||||||||||||||
Net earnings | 2,014 | ||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | (83) | ||||||||||||||||||||||||||||
Net earnings attributable to Angi Inc. shareholders | $ | 1,931 |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||
Operating Loss |
Stock-Based
Compensation Expense |
Depreciation |
Amortization
of Intangibles |
Adjusted
EBITDA |
|||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
North America | $ | (8,108) | $ | 25,312 | $ | 11,297 | $ | 12,890 | $ | 41,391 | |||||||||||||||||||
Europe | (8,188) | $ | 263 | $ | 841 | $ | 90 | $ | (6,994) | ||||||||||||||||||||
Operating loss | (16,296) | ||||||||||||||||||||||||||||
Interest expense | (2,274) | ||||||||||||||||||||||||||||
Other income, net | 421 | ||||||||||||||||||||||||||||
Loss before income taxes | (18,149) | ||||||||||||||||||||||||||||
Income tax benefit | 8,965 | ||||||||||||||||||||||||||||
Net loss | (9,184) | ||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 226 | ||||||||||||||||||||||||||||
Net loss attributable to Angi Inc. shareholders | $ | (8,958) |
March 31, 2021 | December 31, 2020 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Cash and cash equivalents | $ | 777,041 | $ | 812,705 | $ | 384,230 | $ | 390,565 | |||||||||||||||
Restricted cash included in other current assets | 176 | 407 | 623 | 504 | |||||||||||||||||||
Restricted cash included in other non-current assets | 433 | 449 | 398 | 409 | |||||||||||||||||||
Total cash and cash equivalents, and restricted cash as shown on the consolidated statement of cash flows | $ | 777,650 | $ | 813,561 | $ | 385,251 | $ | 391,478 |
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Balance at January 1
|
$ | 26,046 | $ | 19,066 | |||||||
Current period provision for credit losses | 19,118 | 17,070 | |||||||||
Write-offs charged against the credit loss reserve | (20,570) | (16,298) | |||||||||
Recoveries collected
|
758 | 737 | |||||||||
Balance at March 31
|
$ | 25,352 | $ | 20,575 |
Asset Category | March 31, 2021 | December 31, 2020 | ||||||||||||
(In thousands) | ||||||||||||||
Right-of-use assets (included in “other non-current assets”) | $ | 46,446 | $ | 40,800 | ||||||||||
Capitalized software, leasehold improvements, and equipment | $ | 80,052 | $ | 95,438 | ||||||||||
Intangible assets, net | $ | 148,319 | $ | 162,627 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Interest income | $ | 97 | $ | 1,271 | |||||||
Foreign exchange losses | (860) | (423) | |||||||||
Loss from acquisition/sale of a business | (4) | (427) | |||||||||
Other (expense) income, net | $ | (767) | $ | 421 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Marketplace: | |||||||||||||||||||||||
Consumer connection revenue | $ | 272,353 | $ | 32,523 | 14% | $ | 239,830 | ||||||||||||||||
Service professional membership subscription revenue | 11,952 | (1,825) | (13)% | 13,777 | |||||||||||||||||||
Other revenue | 6,745 | 1,576 | 30% | 5,169 | |||||||||||||||||||
Total Marketplace Revenue | 291,050 | 32,274 | 12% | 258,776 | |||||||||||||||||||
Advertising and Other Revenue | 69,991 | 4,635 | 7% | 65,356 | |||||||||||||||||||
North America | 361,041 | 36,909 | 11% | 324,132 | |||||||||||||||||||
Europe | 25,988 | 6,470 | 33% | 19,518 | |||||||||||||||||||
Total Revenue | $ | 387,029 | $ | 43,379 | 13% | $ | 343,650 | ||||||||||||||||
Percentage of Total Revenue: | |||||||||||||||||||||||
North America | 93 | % | 94 | % | |||||||||||||||||||
Europe | 7 | % | 6 | % | |||||||||||||||||||
Total Revenue | 100 | % | 100 | % | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Operating metrics: | |||||||||||||||||||||||
Marketplace Service Requests | 7,709 | 1,741 | 29% | 5,968 | |||||||||||||||||||
Marketplace Monetized Transactions | 4,193 | 603 | 17% | 3,590 | |||||||||||||||||||
Marketplace Transacting SPs | 212 | 21 | 11% | 191 | |||||||||||||||||||
Advertising SPs | 40 | 3 | 8% | 37 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | $ | 53,828 | $ | 20,599 | 62% | $ | 33,229 | ||||||||||||||||
As a percentage of revenue | 14% | 10% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Selling and marketing expense | $ | 205,840 | $ | 15,881 | 8% | $ | 189,959 | ||||||||||||||||
As a percentage of revenue | 53% | 55% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
General and administrative expense | $ | 88,162 | $ | (6,394) | (7)% | $ | 94,556 | ||||||||||||||||
As a percentage of revenue | 23% | 28% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Product development expense | $ | 18,047 | $ | 963 | 6% | $ | 17,084 | ||||||||||||||||
As a percentage of revenue | 5% | 5% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Depreciation | $ | 15,969 | $ | 3,831 | 32% | $ | 12,138 | ||||||||||||||||
As a percentage of revenue | 4% | 4% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
North America | $ | 9,577 | $ | 17,685 | NM | $ | (8,108) | ||||||||||||||||
Europe | (9,468) | (1,280) | (16)% | (8,188) | |||||||||||||||||||
Total | $ | 109 | $ | 16,405 | NM | $ | (16,296) | ||||||||||||||||
As a percentage of revenue | —% | (5)% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
North America | $ | 31,165 | $ | (10,226) | (25)% | $ | 41,391 | ||||||||||||||||
Europe | (7,979) | (985) | (14)% | (6,994) | |||||||||||||||||||
Total | $ | 23,186 | $ | (11,211) | (33)% | $ | 34,397 | ||||||||||||||||
As a percentage of revenue | 6% | 10% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Interest expense | $ | 6,617 | $ | 4,343 | NM | $ | 2,274 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Other (expense) income, net | $ | (767) | $ | (1,188) | NM | $ | 421 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | $ Change | % Change | 2020 | ||||||||||||||||||||
Income tax benefit | $ | 9,289 | $ | 324 | 4% | $ | 8,965 | ||||||||||||||||
Effective income tax rate | NM | 49% |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Net earnings (loss) attributable to Angi Inc. shareholders | $ | 1,931 | $ | (8,958) | |||||||||||||||||||
Add back: | |||||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | 83 | (226) | |||||||||||||||||||||
Income tax benefit | (9,289) | (8,965) | |||||||||||||||||||||
Other expense (income), net | 767 | (421) | |||||||||||||||||||||
Interest expense | 6,617 | 2,274 | |||||||||||||||||||||
Operating income (loss) | 109 | (16,296) | |||||||||||||||||||||
Stock-based compensation expense | 2,034 | 25,575 | |||||||||||||||||||||
Depreciation | 15,969 | 12,138 | |||||||||||||||||||||
Amortization of intangibles | 5,074 | 12,980 | |||||||||||||||||||||
Adjusted EBITDA | $ | 23,186 | $ | 34,397 |
March 31, 2021 | December 31, 2020 | |||||||||||||
(In thousands) | ||||||||||||||
Cash and cash equivalents and marketable debt securities: | ||||||||||||||
United States | $ | 756,860 | $ | 793,679 | ||||||||||
All other countries | 20,181 | 19,026 | ||||||||||||
Total cash and cash equivalents | 777,041 | 812,705 | ||||||||||||
Marketable debt securities (United States) | — | 49,995 | ||||||||||||
Total cash and cash equivalents and marketable debt securities | $ | 777,041 | $ | 862,700 | ||||||||||
Long-term debt: | ||||||||||||||
Senior Notes | $ | 500,000 | $ | 500,000 | ||||||||||
Term Loan | 213,125 | 220,000 | ||||||||||||
Total long-term debt | 713,125 | 720,000 | ||||||||||||
Less: unamortized debt issuance costs | 7,138 | 7,723 | ||||||||||||
Total long-term debt, net | $ | 705,987 | $ | 712,277 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Net cash provided by (used in):
|
|||||||||||
Operating activities
|
$ | 15,345 | $ | 55,906 | |||||||
Investing activities
|
31,257 | (12,469) | |||||||||
Financing activities
|
(82,897) | (48,337) |
Aggregate intrinsic value of awards outstanding
|
Estimated withholding taxes payable
|
Estimated shares to be issued
|
|||||||||||||||
(In thousands)
|
(Shares in thousands) | ||||||||||||||||
Stock appreciation rights | $ | 15,283 | $ | 7,642 | 477 | ||||||||||||
Other equity awards(a)
|
167,304 | 82,432 | 5,301 | ||||||||||||||
Total outstanding employee stock-based awards | $ | 182,587 | $ | 90,074 | 5,778 |
Period |
(a)
Total Number of Shares Purchased |
(b)
Average Price Paid Per Share |
(c)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)
|
(d)
Maximum Number of Shares that May Yet Be Purchased Under Publicly
Announced
Plans or
Programs(2)
|
|||||||||||||||||||
January 2021 | 414,720 | $ | 11.85 | 414,720 | 18,856,841 | ||||||||||||||||||
February 2021 | — | $ | — | — | 18,856,841 | ||||||||||||||||||
March 2021 | — | $ | — | — | 18,856,841 | ||||||||||||||||||
Total | 414,720 | $ | 11.85 | 414,720 | 18,856,841 |
Exhibit Number | Description | Location | ||||||||||||
3.1 | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Angi Inc. |
|
||||||||||||
3.2 | Amended and Restated Bylaws of Angi Inc. |
|
||||||||||||
Form of Angi Inc. Common Stock Certificate. (1)
|
||||||||||||||
10.1 | Employment Agreement between Oisin Hanrahan and ANGI Homeservices Inc., dated as of February 24, 2021.(3) |
|
||||||||||||
Employment Agreement between Kulesh Shanmugasundaram and Angi Inc., dated as of March 25, 2021. (1) (3)
|
||||||||||||||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1)
|
||||||||||||||
Certification of the Interim Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1)
|
||||||||||||||
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2) | ||||||||||||||
Certification of the Interim Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2)
|
||||||||||||||
101.INS | Inline XBRL Instance (1) |
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
|
||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema (1) | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation (1) | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition (1) | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Labels (1) | |||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation (1) | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Dated: | May 7, 2021 | |||||||||||||
Angi Inc. | ||||||||||||||
By: | /s/ GLENN H. SCHIFFMAN | |||||||||||||
Glenn H. Schiffman | ||||||||||||||
Interim Chief Financial Officer |
Signature | Title | Date | |||||||||
/s/ GLENN H. SCHIFFMAN | Interim Chief Financial Officer | May 7, 2021 | |||||||||
Glenn H. Schiffman |
Award Holder |
Kulesh Shanmugasundaram
|
||||
Award Amount |
$2,000,000 value of restricted stock units (“RSUs”) under the Angi Inc. 2017 Stock
and Annual Incentive Plan (the “Plan”), with the number of RSUs to be calculated by
dividing $2,000,000 by the closing sale price for a share of the Company’s Class A
common stock on the Award Date (rounded down to the nearest whole share).
Capitalized terms used (but not defined) in this Award Notice shall have the
meanings set forth in the Plan.
|
||||
Award Date |
The date approved by the Compensation Committee (the date on which the last
director executes the written consent)
|
||||
Vest Start Date | March 25, 2021 | ||||
Vesting Schedule |
Subject to Award Holder’s continued employment with Angi Inc. or its
subsidiaries, RSU award shall, subject to the provisions of the Plan, vest and
become exercisable in four equal installments, with 1/4 vesting on each of the first,
second, third and fourth anniversaries of your Vest Start Date.
|
||||
Termination |
Except as may be provided in Employment Agreement, all unvested RSUs shall be
forfeited and canceled in their entirety upon such termination for any reason.
In addition, upon termination for Cause or resignation in anticipation of being
terminated for Cause, all RSUs shall be forfeited and canceled in their entirety upon
such termination or resignation. In addition, if following any termination of
employment for any reason, the Company becomes aware that during the two-year
period prior to such termination there was an event or circumstance that constituted
fraud (financial or otherwise) or that would have been grounds for termination for
Cause that caused, or is reasonably likely to cause, meaningful damage (economic,
reputational or otherwise) to the Company and/or any of its affiliates (the
“Underlying Event”), then all RSUs that remain outstanding shall be canceled and
forfeited in their entirety and if any portion of the RSUs vested after the Underlying
Event, the Company shall be entitled to recover at any time within two years after
such exercise any value received upon vesting.
|
||||
Change in
Control
|
Change in Control as defined in the Plan.
100% acceleration of vesting for all RSUs if, during the two-year period following a
Change in Control, Award Holder’s employment is terminated by the Company
other than for Cause or Award Holder resigns for Good Reason (as such terms are
defined in the Plan).
|
Impact of
Corporate
Transactions on
Award
|
In the event of a Corporate Transaction or Share Change (as such terms are
defined in the Plan), the Committee may and shall, respectively, adjust the
Awards as it deems equitable and appropriate in accordance with the Plan.
In the event of any other transaction that results in the common stock of the
Company no longer being publicly traded, the Committee shall have the
ability to adjust the Awards as it deems equitable and appropriate in a
manner it determines in its sole discretion. In any such case, equitable and
appropriate adjustments may include, without limitation: (a) the substitution
of shares of Angi Class A common stock underlying the Awards with
publicly-traded shares of the ultimate parent of the Company; or (b) the
creation of a valuation and/or liquidity mechanism for the underlying shares
of Angi Class A common stock underlying the awards which are no longer
publicly traded.
|
||||
Dividend Rights |
No cash dividends will be paid on RSUs and/or on the shares of Angi Class
A common stock underlying the RSUs. Stock dividends, distributions and
extraordinary, significant non-recurring cash dividends may result in an
adjustment to the number of RSUs, as determined by the Committee or the
Board and as further provided by the Plan.
|
||||
Form of Payout |
Vested RSUs are settled in the form of shares of Angi Class A common
stock.
|
||||
Withholding
Taxes
|
Upon vesting, RSUs are settled net of amounts necessary to cover
withholding taxes, with shares of Angi Class A common stock withheld from
vested awards.
|
||||
Terms and
Conditions:
|
Award Holder’s RSU award is subject to the related Terms and Conditions
and to the Plan, which are incorporated herein by reference. Copies of these
documents are also available upon request from Angi Inc. Human Resources
|
Dated: | May 7, 2021 | /s/ OISIN HANRAHAN | |||||||||
Oisin Hanrahan | |||||||||||
Chief Executive Officer
|
Dated: | May 7, 2021 | /s/ GLENN H. SCHIFFMAN | |||||||||
Glenn H. Schiffman | |||||||||||
Interim Chief Financial Officer |
Dated: | May 7, 2021 | /s/ OISIN HANRAHAN | |||||||||
Oisin Hanrahan | |||||||||||
Chief Executive Officer |
Dated: | May 7, 2021 | /s/ GLENN H. SCHIFFMAN | |||||||||
Glenn H. Schiffman | |||||||||||
Interim Chief Financial Officer |