Q3 2019 Earnings Call

Indeed, written our CEO of Angie home services, Joey and I will also address any questions. You may have on Icees third quarter results similar to last quarter supplemental to our earnings quarterly earnings releases is also published its quarterly shareholder letter, we will not be reading the shareholder letter on this call. It is currently available on the invest.

For relations section of our website I will shortly turn the call over to Joey.

To make a few brief introductory remarks, and then we'll open it up the QNX before we get to that I'd like to remind you that during this call. We may discuss our outlook in future performance. These forward looking statements typically maybe preceded by words such as we expect we believe we anticipate or similar such statements. These forward looking views are sub.

Yes, and uncertainties in our actual results could differ materially from the views expressed today.

Some of the risk some of these risks have been set forth in both IC and Angie home services third quarter press releases and our reports filed with the SEC. We'll also discuss certain non-GAAP measures, which as a reminder include adjusted EBITDA, which will refer to today as EBITDA for simplicity during the call I'll also refer to refer.

Due to our press releases, the IC shareholder letter and again to the Investor Relations section of our websites for all comparable GAAP and full reconciliation for all material non-GAAP measures now, let's jump right into it Joey.

Thanks.

Thanks, everybody for joining.

But we entered this year with plans to accelerate revenue growth and really invest through our pan out in the form of higher margins to selling window for the first time and really long time to accomplish that.

And.

We did that for a few reasons.

We saw opportunities and continue to see big opportunities in our addressable markets, we have fantastic leaders and fantastic categories, and we wanted to pass those competitive leads and we really like the price of internal investment market and then the price of external investment opportunities.

And as we're nearing the end of the year, we feel very good about that decision. We're seeing the accelerating revenue growth we are looking for.

We like our position as we end the year start than the air going going into next year.

And.

We have real high confidence in the business in including at Angie, where we had a bit of a bumpy quarter last quarter and we're feeling good about our outlook now from here.

Obviously, we're on the.

Again all of this is.

Caveat by saying into proposal and we need to reach agreement with the Special Committee, which we may not.

But the step that would that would be consistent with what was outlined in the proposal.

Our one.

Moving the converts.

What I'm, calling the converts are actually exchangeable notes and related hedging instruments, but.

We will just simplify by calling it the converts moving that.

Moving those two Angie in exchange for US are moving those to match in exchange for Matt shares.

And that's.

Relatively straightforward the other two components.

Our a dividend from matched to I see some amount and it.

Hey.

Third thing that is is potentially that may not happen, but potential equity offering which has the effect though.

I see selling shares in new matching those shares getting swap which in the separation ended up with I see having more cash and new match, having fewer shares outstanding.

All of those things in theory happened kind of roughly at this or could could happen kind of roughly at the same time.

There's work to do to prepare for all those things.

And that is a that is I think maybe the best I can do I don't know Glenn maybe you were a little bit limited in what we didn't say here.

I apologize for that and I want to have a real complete update for everybody soon which would.

Hopeful we can get too.

But right now we're just a little bit limited in what we can say on on you want to you got more to add no. I think it was I think as well said and timing Joe you address that earlier when we've done spins in the past they've taken a couple quarters to be be complete so.

I think that.

Again as Joe said, we'll update you when we can in terms of margins next year for LNG to translate everything brand and just walk through you know margins are dependent on three things. One is our overall revenue revenue growth because X marketing, we create real incremental margin in the business.

Ups Gionee sales all of our other costs.

Grow well below our revenue growth given obviously the strength of the business and the scale over business. So that'll be one factor the second factors the investments we make.

Thats in our international business, which is still lose the money that's in fixed small business. We bought in early 2019.

Andy and that's our fixed price initiative and as brand and says we see success, we may continue to invest.

To invest into that and then third it'll depend on marketing.

Partially thus the choices, we make and as you know were partial to investing in category expansion.

Given the opportunity in front of us and we're going.

So want to broadcast of the the fixed price offerings, though given the roll out there and then how we how effective we are and as Brandon said, we're making real progress, but its but it's.

But it's early days.

Phase.

Indeed, I think all that adds up we'll give you obviously our outlook early next year, but I think all that adds up to margins not increasing and may be depending on the elective choices, we make potentially.

Even more.

Fortunes could could come down something that may skew the margins a little bit and we will of course transparently walk you through that.

Is in all likelihood be accounts are going to force on us towards gross revenue recognition.

For the handy.

For the handy transactions on our platform and the fixed price transactions on the platform because we will underwrite and we will backstopping guarantee guarantee those transactions. So the margins may be a little model next year because of that but we will obviously walk you through it and attempt to reconcile that for you.

Thank you.

Yeah.

Like you were next question comes from Brent Phil with Jefferies.

Good morning.

Julie.

Linear growth acceleration you could just comment what you're seeing there in the progress you're making on the enterprise side that would be extremely helpful.

Yeah.

Sure.

So.

One component or meaningful component of the annual growth acceleration as we completed the Magento Act.