Q3 2023 IAC Corp Inc Earnings Call

November 8, 2023

Operator: mode, and should you need any assistance during the call, please signal a conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touch-tone phone. To withdraw a question, please press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Christopher Halpin, CFO and COO of IAC. Please go ahead.

Speaker 1: Should you need any assistance during the call? Please signate conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star, but one on your touchtone phone.

In the call. Please signaling conference specialist by pressing the star key followed by zero.

After today's remarks, there'll be an opportunity to ask questions.

To ask a question you May Press Star then one on your Touchtone phone.

To withdraw your question. Please press Star then two.

Please also note that this event is being recorded today.

Speaker 1: I would now like to turn the conference over to Christopher Helpen, CFO and COO of IAC. Please go ahead.

I would now like to turn the conference over to Christopher helping CFO and C. O O of IAC. Please go ahead.

Christopher Halpin: Thank you. Good morning, everyone. Christopher Halpin here, and welcome to the IAC and Angi Inc. third quarter earnings call. Joining me today is Joey Levin, CEO of IAC, and CEO and Chairman of Angi Inc. Similar to last quarter, supplemental to our quarterly earnings releases, IAC has also published its quarterly shareholder letter, which is currently available on the investor relations section of IAC's website. We will not be reading the shareholder letter on this call. I will shortly turn the call over to Joey to make a few brief introductory remarks. We will then open it up to Q&A. Before we get to that, I'd like to remind you that during this presentation, we may discuss our outlook and future performance. These forward-looking statements typically may be preceded by words such as "we expect," "we believe," "we anticipate," or similar statements.

Christopher Halpin: Thank you. Good morning, everyone. Christopher Halpin here, and welcome to the IAC and Angi Inc. Q3 earnings call. Joining me today is Joey Levin, CEO of IAC, and CEO and Chairman of Angi Inc. Similar to last quarter, supplemental to our quarterly earnings releases, IAC has also published its quarterly shareholder letter, which is currently available on the investor relations section of IAC's website. We will not be reading the shareholder letter on this call. I will shortly turn the call over to Joey to make a few brief introductory remarks. We will then open it up to Q&A. Before we get to that, I'd like to remind you that during this presentation, we may discuss our outlook and future performance. These forward-looking statements typically may be preceded by words such as "we expect," "we believe," "we anticipate," or similar statements.

Speaker 2: Thank you. Good morning, everyone. Christopher Helpen here and welcome to the IAC and Angie Inc. third quarter earnings call. Joining me today is Joey Levin, CEO of IAC and CEO and Chairman of Angie Inc.

Thank you good morning, everyone, Christopher helping here and welcome to the IAC and Angi <unk> third quarter earnings call.

Joining me today is Joey Levin, CEO of IAC, and CEO and chairman of Angi similar.

Speaker 2: Similar to last quarter, supplemental to our quarterly earnings release.

Similar to last quarter supplemental to our quarterly earnings releases.

Speaker 2: IAC is also published its quarterly shareholder letter, which is currently available on the Investor Relations section of IAC's website. We will not be reading the shareholder letter on this call.

<unk> has also published its quarterly shareholder letter, which is currently available on the Investor Relations section of Iac's website.

We will not be reading the shareholder letter on this call.

Speaker 2: I will shortly turn the call over to Joey to make a few brief introductory remarks. He will then open it up to Q&A.

I will shortly turn the call over to Joey to make a few brief introductory remarks, we will then open it up to Q&A.

Speaker 2: Before we get to that, I'd like to remind you that during this presentation, we may discuss our outlook and future performance.

Before we get to that I'd like to remind you that during this presentation, we may discuss our outlook and future performance.

Speaker 2: These four looking statements typically may be preceded by words such as we expect we believe we anticipate or similar statements.

These forward looking statements typically may be preceded by words, such as we expect we believe we anticipate or similar statements. These forward looking views are subject to risks and uncertainties and our actual results could differ materially from the views expressed today.

Christopher Halpin: These forward-looking views are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Some of these risks have been set forth in IAC's and Angi Inc.'s third quarter earnings releases and our respective filings with the SEC. We'll also discuss certain non-GAAP measures, which, as a reminder, include adjusted EBITDA, which we'll refer to today as EBITDA for simplicity during the call. I'll also refer you to our earnings releases, the IAC shareholder letter, our public filings with the SEC, and again, to the investor relations section of our respective websites for all comparable GAAP measures and full reconciliations for all material non-GAAP measures. Now, I'll turn it over to Joey.

Christopher Halpin: These forward-looking views are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Some of these risks have been set forth in IAC's and Angi Inc.'s Q3 earnings releases and our respective filings with the SEC. We'll also discuss certain non-GAAP measures, which, as a reminder, include adjusted EBITDA, which we'll refer to today as EBITDA for simplicity during the call. I'll also refer you to our earnings releases, the IAC shareholder letter, our public filings with the SEC, and again, to the investor relations section of our respective websites for all comparable GAAP measures and full reconciliations for all material non-GAAP measures. Now, I'll turn it over to Joey.

Speaker 2: These forward-looking views are subject to risk on uncertainties, and our actual results could differ materially from the views expressed today. Some of these risks have been set forth in IECs and ANGX, third quarter, Ernie's releases, and our respective filings with the SEC.

Some of these risks have been set forth in IAC and Angi <unk> third quarter earnings releases and our respective filings with the SEC.

Speaker 2: We'll also discuss certain non- GAAP measures , which as a reminder, include adjusted EBITDA, which we'll refer to today as EBITDA for simplicity during the call.

We will also discuss certain non-GAAP measures, which as a reminder include adjusted EBITDA, which we'll refer to today as EBITDA for simplicity during the call.

Speaker 2: I'll also refer you to our earnings releases. The IEC shareholder letter are public filings with the SEC and again to the investor relations section of our respective websites for all comparable GAAP measures and full work affiliations for all material non- GAAP measures . Now,

I'll also refer you to our earnings releases.

The shareholder letter, our public filings with the SEC and again to the Investor Relations section of our respective websites.

For all comparable GAAP measures and full reconciliations for all material non-GAAP measures now I'll turn it over to Joey.

Joey Levin: Thank you, Chris. Good morning, everybody. Thanks for spending time with us this morning. It's nice to have both Dotdash Meredith and Angi growing again on the bottom line, and I think we have a lot of great work happening at the businesses that should be able to keep that profit momentum going. At Dotdash, the momentum really starts with audience, and those trends are good right now, even with Hollywood on strike, because we're investing a lot in our content and our platform. We have an attractive and growing audience, a unique high-performing ad product to sell, and industry-leading e-commerce capabilities. If we have a decent ad market through the rest of the year and into next year, I think we're in great shape, and all the work we've done on the cost side should help more of those dollars flow through.

Speaker 2: Thank you, Chris. Good morning, everybody. Thanks for spending time with us this morning. Nice to have both Dr. S. Meredith and Angie growing again on the bottom line. And I think we have a lot of great work happening at the businesses that should be able to keep that profit momentum going.

Thank you Chris Good morning, everybody. Thanks for spending time with us this morning.

To have both as Meredith and Angie growing again on the bottom line and I think we have a lot of great work happening at the businesses that should be able to keep that profit momentum going.

Speaker 2: at dot dash the momentum really starts with audience and those trends are good right now even with Hollywood on strike because we're investing a lot in our content and our platform. We have an attractive and growing audience, a unique high performing ad product sell and industry leading the commerce capabilities.

Adapt as the momentum really starts with audience and those trends are good right now even with Hollywood on strike, because we're investing a lot in our content and our platform.

We have an attractive and growing audience of unique high performing ad product to sell and industry, leading e-commerce capabilities.

Speaker 2: If we have a decent ad market through the rest of the year and internet year, I think we're in great shape. And all the work we've done on the cost side should help more of those dollars flow through.

If we have a decent add market through the rest of the year and into next year I think we're in great shape.

And all the work we've done on the cost side to help more of those dollars flow through.

Joey Levin: At Angi, we're making our paying customers happier. The service professionals are retaining longer and spending more over their lifetime, which means they're making more homeowners happy. We believe that means we're delivering a better overall experience, which is how we earn our margin, and you can see that showing up in profitability in the business. Profitability isn't our only priority or even really our biggest right now, and I don't think we've reached maximum profitability yet on our existing service professional and homeowner base. But one of the things we're learning is that optimized customer experience, the way we're looking at it today, which is our biggest priority, happens to line up well with profitability because it means we're making more and better matches on our platform, which makes each transaction more valuable.

Speaker 2: At ANG, we're making our paying customers happier. The service professionals are retaining longer and spending more over their lifetime, which means they're making more home owners happy. We believe that means we're delivering a better overall experience, which is how we earn our margin. And you can see that showing up and profitability in the business.

At <unk>, we're making are paying customers happier the service professionals are retaining longer and spending more over their lifetime, which means theyre, making more homeowners happen. We believe that means we're delivering a better overall experience, which is how we earn our margin and you can see that showing up in profitability in the business profitability isn't our only priority.

Speaker 3: Properability isn't our only priority or even really our biggest right now and I don't think we've reached maximum profitability yet on our existing service professional and home owner base.

Or even really our biggest right now and I don't think we've reached maximum profitability yet on our existing service professional and homeowner base.

Speaker 3: But one of the things we're learning is that optimized customer experience the way we're looking at it today, which is our biggest priority happens flying up well with profitability because it means we're making more and better matches on our platform, which makes each transaction more valuable.

One of the things we're learning is that optimized customer experience. The way we're looking at it today, which is our biggest priority happens to line up well with profitability because it means we're making more and better matches on our platform, which makes each transaction more valuable when we're making more matches on our platform. We think we're lifting win rates for pros and we're lifting customer.

Joey Levin: When we're making more matches on our platform, we think we're lifting win rates for pros, and we're lifting customer satisfaction for homeowners. So all the steps we're taking may not yet optimize the PNL, but they do prioritize optimization for customer experience, and we believe that's long-term how we're going to win this category. I know patience here isn't easy, but that's how we're thinking about it, and we're generating more cash flow in the meantime. We've got a lot to work with throughout IAC right now. MGM and Turo are, in my opinion, in excellent shape with exceptional leadership, and we're grateful to be a part of those businesses. But we got plenty to discuss today, so let's get to questions, operator.

Speaker 3: When we're making more matches on our platform, we think we're lifting wind rates for pros and we're lifting customer satisfaction for homeowners. So all the stuff we're taking may not yet optimize the PNL, but they do prioritize optimization for customer experience.

And for homeowners. So all the steps, we're taking may not you may not yet optimized the P&L, but they do prioritize optimization for customer experience and.

Speaker 3: and we believe that long term how we're going to win this category. I know patient here isn't easy, but that's how we're thinking about it. And we're generating more cash flow in the meantime.

And we believe that long term, how we are going to win this category I know patients here isn't easy, but that's how we're thinking about it and we're generating more cash flow in the meantime.

Speaker 3: We've got a lot to work with throughout IAC right now. MDM and Toro are, in my opinion, an excellent shape with exceptional leadership, and we're grateful to be a part of those businesses.

We've got a lot to work with throughout IAC right now MGM Antero are in my opinion in excellent shape with exceptional leadership and we're grateful to be a part of those businesses.

Speaker 1: But we got plenty to discuss today, so let's get the questions operator. We will now begin the question and answer session. Again, to ask a question, you may press star than one on your touch tone phone.

We got plenty to discuss today, so let's get the questions operator.

Operator: We will now begin the question and answer session. Again, to ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To remove yourself from the queue, please press star, then two. At this time, we will take our first question, which will come from Jason Helfstein with Oppenheimer. Please go ahead.

We will now begin the question and answer session again to ask a question you May Press Star then one on your Touchtone phone.

If you were using a speakerphone. Please pick up your handset before pressing the keys and to remove yourself from the queue. Please press Star then two.

Speaker 1: At this time, we will take our first question, which will come from Jason Healthstein with Oppenheimer. Please go ahead.

At this time, we will take our first question, which will come from Jason <unk> with Oppenheimer. Please go ahead.

Jason Helfstein: Thank you for taking the question, and good morning, everybody. So kind of one two-part question. So can you help us understand with respect to kind of the guide for the full year, in some cases being to the low end of the prior range, how much of that is revenue related versus margin related? So just if you can give us some color as far as we are seeing, particularly Dotdash Meredith and Angi, with respect to the revenue outlook. And then secondly, particularly with Angi, I would imagine that, you know, the business is suffering from given where rates are and the pressure on homeowners and borrowing costs, et cetera, as well as lack of housing transaction volume.

Speaker 4: Thank you for taking the question and good morning everybody. So kind of one, two-part question. So can you help us understand with respect to kind of the guide for the full year in some cases being to the low end of the prior range? How much of that is revenue related versus margin related? So just so you can give us some color as far as we are seeing, particularly merit.dash and Angie.

Thank you for taking the question and good morning, everybody.

So it's a kind.

Kind of one two part question. So can you help us understand with respect to kind of the guide for the full year in some cases being to the low end of the prior range.

How much of that is revenue related versus margin related. So just if you can give us some color as far as we are seeing particularly merit merit that dash and Angie.

Speaker 4: to the revenue outlook. And then secondly, with particularly with Angie, I would imagine that the businesses stop offering from giving where rates are and the pressure on homeowners and borrowing costs, et cetera, as well as lack of housing transaction volume. If we get into an environment where rates come down in the back half of next year, housing volume comes up, et cetera, maybe how do you think about that impacting Angie and on the discretionary side?

With respect to the revenue outlook and then secondly.

Particularly with Angie I would imagine that the business is suffering.

From given where rates are and the pressure on homeowners and borrowing costs et cetera.

As well as lack of housing transaction volume.

Jason Helfstein: You know, if we get into an environment where rates come down in the back half of next year, housing volume comes up, et cetera, maybe how would you - how do you think about that impacting Angi and on the discretionary side? Thanks.

Get into an environment, where rates come down in the back half of next year housing volume comes up et cetera, maybe how would you how do you think about that impact and G and on the discretionary side. Thanks.

Joey Levin: Sure. Thanks, Jason. Maybe I'll let Chris do the guidance question. But overall, I would on Angi macro, I still think that what's happening to the business today is much more our hand than it is the market happening to us. And that's the proactive actions we've taken, and we've talked about a lot on improving the quality of our customer experience, our homeowner experience, our pro experience, and we're continuing to make improvements there, and that does take a hit out of revenue. I think from a our estimate was in the beginning of the year, the market was probably down, overall market, not us, probably down in the 5 to 10% range. And I think now it's probably, well, our estimates are closer to flat, to maybe up a touch.

Speaker 3: Eric, thank you, Jason. Maybe I'll let Chris do the guidance question. But overall, I'm Angie Macro.

Sure. Thanks, Jason maybe I'll, let Chris do the <unk>.

Guidance question.

But but.

Overall.

And the macro.

Speaker 3: I still think that what's happening to the business today is much more our hand than it is the market's happening to us. And that's the proactive actions we've taken and we've talked about a lot on improving the quality of our customer experience, our homeowner experience, our pro experience, and we're continuing to make improvements there.

I still think that what's happening to the business today is much more our hand, then it is the market is happening to us.

And that the proactive actions, we've taken and we've talked about a lot on improving the quality of our customer experience our homeowner experience our approach.

And we're continuing to make improvements there and.

Speaker 3: And that does take a hit out of revenue. I think from a...

And that does.

Take a hit out of revenue.

From a.

Speaker 3: Our estimate was in the beginning of the year, the market was probably down overall market, not us, probably down to five to 10% range. And I think now it's probably our estimates are closer to class to maybe up a touch, but the changes that we're making, obviously have taken us down. The...

Our estimate was in the beginning of the year the market was probably down overall market not as probably down in the 5% to 10% range and I think now it probably.

Estimates are closer to flat to maybe up a touch.

Joey Levin: But the changes that we're making obviously have taken us down. A active real estate market or a more active housing market, I think is generally good for the demand side of our business. And when homes transact about $15,000, we think in work that happens per home transaction. So that creates a lot of movement in the industry. The flip side to that is that pros are busier, and so pros may need less business in those times. And so we've talked about that kind of natural hedge in our business, where if pros are doing less work, they're more eager to be on our platform. And the flip side is homeowner demand goes up in those scenarios.

But the changes that we're making obviously have taken us down.

<unk>.

Speaker 3: Active real estate market or a more active housing market. I think is generally good for the demand side of our business.

Active real estate market or a more active housing market I think is generally good for the demand side of our business.

Speaker 3: And when, when homes transact, about $15,000, we think in work that happens for home transactions, so that creates a lot of moving in the industry. The flip side to that is that pros are busier and so pros may need less business in those times. And so we've talked about that kind of natural had in our business where it pros are.

And when when homes transact about $15000, we think and work that happens per home transactions. So that creates a lot of moving in the industry. The flip side to that is that pros are busier and so pros may need less business in those times and so we've talked about that kind of natural hedge in our business where with pros are due.

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Speaker 3: It pros are doing less work. They're more eager to be on our platform and the flip side is homeowner. Demand goes up in those scenarios.

If roes are doing less work theyre more eager to be on our platform and the flip side is homeowner demand goes up in those scenarios, we are not anticipating any meaningful movement in the market.

Joey Levin: We are not anticipating any meaningful movement in the market, up or down. We think we're reasonably well positioned to handle either one of those scenarios, but we're not anticipating either one of those up or down, and we think that we have room to expand profitability in the business, kind of, regardless in that scenario. But on the revenue side, it is proactive actions that we are taking that I think is most guiding what's happening on revenue in the business.

Speaker 3: We are not anticipating any meaningful movement in the market up or down. We think we're reasonably well positioned to handle either one of those scenarios, but we're not anticipating either one of those up or down and we think that we have room to expand profitability in the business kind of regardless of that scenario.

Up or down.

We think we're reasonably well positioned to handle either one of those scenarios, but we're not anticipating either one of those up or down and we think that we have room to expand profitability in the business kind of regardless in that scenario, but on the revenue side. It is proactive actions that we're taking.

Speaker 2: But on the revenue side, it is proactive actions that we are taking that I think is most guiding what's happening on revenue in the business. Yeah, just a couple of elements on that. You know, we did guide to the low end of our EBITDA range.

That I think is most guiding with what's happening on on revenue in the business yes.

Christopher Halpin: Yeah. Just a couple elements on that. You know, we did guide to the low end of our EBITDA range of $100 to $130 last quarter. We feel we've just tightened where we are there. As Joey said, it's overwhelmingly driven by revenue softness from the proactive actions taken to improve lead quality. Some of those had a larger impact in the short term than were initially anticipated. Probably the bigger factor also is a few of the channels that were reduced have ramped up more slowly than we anticipated, but we're fully confident they will come back and are seeing that happen.

Yes.

A couple of elements on that we did guide to the low end of our EBITDA range of 100 to 130 last quarter.

Speaker 2: of 130 last quarter. We feel we've just tightened where we are there. As Joey said, it's overall, it's overwhelmingly driven by revenue softness from the proactive actions taken to improve lead quality.

We feel we've just tightened where we are there as Joey said, it's overall, it's overwhelmingly driven by revenue softness from the proactive actions taken to improve lead quality.

Speaker 2: Some of those had a larger impact in the short term than were initially anticipated.

Some of those had a larger impact in the short term then we're initially anticipated probably the bigger factor also is a few of the channels that were reduced have ramped up more slowly than we anticipated, but we're fully confident they will come back in and.

Speaker 2: Probably the bigger factor also is a few of the channels that were reduced have ramped up more slowly.

Speaker 2: then we anticipated, but we're fully confident they will come back and are seeing that happen. So it is a, for Angie, it's, you know, the relatively short-term impacts of the actions taken, nothing on margin degradation relative to you.

Are seeing that happen so.

Christopher Halpin: So, it is a for Angi, it's, you know, this, the, the relatively short term impacts of the actions taken, nothing on margin, degradation, relative to your question. For Dotdash Meredith, you know, it's, it's due to a confluence of factors, predominantly macro. We guided in the letter and, and in our call last quarter for some softness in Q4, as we began to some, some softness in Q4... Q3 traffic in, our entertainment sites. We really started to see that in August, driven by the strike and just the lack of activity in Hollywood. That pulled down Q3 results a bit.

It is a for AMG.

The relatively short term impacts of the actions taken nothing on margin.

Degradation relative to your question.

Speaker 2: For Goddash Meredith, it's due to a confluence of factors predominantly macro. We guided in the letter and in our call last quarter for some softness in Q4. As we began to, some softness in Q3 traffic in our entertainment sites, we really started to see that in August .

For Dot Dash Meredith.

It's sort of a confluence of factors predominantly macro we guided in the letter and in our call last quarter for some softness in Q4.

As we began to.

Some softness in Q4 Q3 traffic in our entertainment sites, we really started to see that in August.

Driven by the strike and just the lack of activity in Hollywood.

Speaker 2: That pulled down Q3 results a bit. The bigger story right now is we anticipated and had been pretty clear with the market that.

That pulled down Q3 results a bit the bigger story right now as we anticipated and had been pretty clear with the market that we expected a a.

Christopher Halpin: The bigger story right now is, we anticipated, and had, had been pretty clear with the market, that we expected a much more solid Q4 environment for advertising this year than last year, when, you know, really last holiday season, the market totally froze up. We'd seen steadily strengthening premium demand and programmatic pricing in Q3, but similar to a number of other publishers and platforms, that reversed for a bit in October, clearly driven by war, macro concerns, higher rates, et cetera. So, you know, we lost some momentum. Trends have been better so far in November, but it's, it's still an uncertain environment. So, you know, we're expecting a holiday season that's only mildly better from a macro perspective, on advertising. We will talk about. We talked in the letter and have talked about 80% incremental margins.

Speaker 2: We expected a much more solid Q4 environment for advertising this year than last year, when really last holiday season the market totally froze up.

Much more solid Q4 environment for advertising this year than last year.

And then really last holiday season, the market totally froze up.

Speaker 2: We've seen steadily strengthening premium demand and programmatic pricing in Q3, but similar to a number of other publishers and platforms, that reversed for a bit in October , clearly driven by war, macro concerns, higher rates, et cetera.

We've seen steadily strengthening premium demand and programmatic pricing in Q3, but similar to a number of other publishers and platforms.

That reversed for a bit in October.

Clearly driven by war macro concerns higher rates et cetera.

Speaker 2: So, you know, we lost some momentum. Trends have been better so far in November , but it's still an uncertain environment.

We lost some momentum trends have been better so far in November, but it's still an uncertain environment. So we're expecting a holiday season, thats only mildly better from a macro perspective on advertising.

Speaker 2: So, you know, we're expecting a holiday season that's only mildly better from a macro perspective on advertising. You will talk about, we talked in the letter and I've talked about 80% incremental margins. That drives growth year over year and EBITDA, but on the flip side, you know, if versus plan, if advertising revenue is lower, you know, that goes to the bottom line.

We will talk about we talked in the letter and have talked about 80% incremental margins that drives growth year over year and EBITDA, but on the flip side.

Christopher Halpin: That drives growth year over year in EBITDA. But on the flip side, you know, if versus plan, if advertising revenue is lower, you know, that goes to the bottom line. So, and then performance marketing continues to be strong, and we expect that to continue apace, you know, I guess, absent a major consumer slowdown. But we feel good about where we are. Things have been better so far in November relative to what was a broader slowdown in October, and we're gonna continue to monitor it.

Versus plan.

Advertising revenue is lower.

That goes to the bottom line.

Speaker 2: So, and then performance marketing continues to be strong and we expect that to continue a pace, I guess, absent a major consumer slowdown. But we feel good about where we are. Things have been better so far in November relative to what was a broader slowdown in October and we're gonna continue to monitor it. Thank you.

And then performance marketing continues to be strong and we expect that to continue a pace.

I guess absent a major consumer slowdown, but we feel good about where we are things have been better so far in November relative to what was a broader slowdown in October and we're going to continue to monitor it.

Joey Levin: Thank you.

Jason Helfstein: Thank you.

Christopher Halpin: Thanks, Jason. Operator, next question?

Thank you.

Christopher Halpin: Thanks, Jason. Operator, next question?

Thanks, Jason Operator next question.

Operator: Our next question will come from Brent Thill with Jefferies. Please go ahead.

Speaker 1: Our next question will come from Brent Phil with Jeffries. Please go ahead.

Our next question will come from Brent Thill with Jefferies. Please go ahead.

Brent Thill: Good morning. You talked about Angi in the buyback, utilizing the 1.4 million shares left. You didn't buy any IAC stock in Q3. Can you just talk about the rationale behind repurchasing Angi versus IAC?

Speaker 5: Good morning. You talked about Angie in the buyback, utilizing the 1.4 million shares left. You didn't buy any IIC stock in Q3. Can you just talk about the rationale behind repurchasing Angie versus IIC?

Yes, good morning, you talked about angi and the buyback.

Utilizing the one 4 million shares last you didn't buy any stock in Q3 can you just talk about the rationale behind repurchasing Angie versus ICEE.

Joey Levin: Sure. Just one correction, Brent, but it's 14 million shares in the Angi authorization. The purchases at Angi, I think, are relatively straightforward. There's not a ton of volume there, but one of the things we want to do is offset dilution or potential dilution there, and so buying back up to the authorization helps accomplish that. And of course, we're, if we're buying, we view it as attractive. As it relates to IAC, look, we bought $165 million worth of IAC so far this year. It's something that we have considered; we always consider. I think we took a pause this quarter when we saw the reaction to-

Christopher Halpin: Sure. Just one correction, Brent, but it's 14 million shares in the Angi authorization. The purchases at Angi, I think, are relatively straightforward. There's not a ton of volume there, but one of the things we want to do is offset dilution or potential dilution there, and so buying back up to the authorization helps accomplish that. And of course, we're, if we're buying, we view it as attractive. As it relates to IAC, look, we bought $165 million worth of IAC so far this year. It's something that we have considered; we always consider. I think we took a pause this quarter when we saw the reaction to-Angi last quarter, which I think even surprised us in terms of its magnitude, and we wanted to look and see where things settle out, and that's something that we will continue to evaluate.

Sure just one correction, Brian, but it's 14 million shares in the.

Speaker 3: Sure, just one correction, Brent, but it's 14 million shares in the, in the Angie authorization, the

And the anti authorization.

Ah.

Speaker 3: Purchases at Angie, I think, are relatively straightforward. I think it will be, there's not a ton of volume there, but one of the things we want to do is offset dilution or potential dilution there. And so, buying back up to the authorization helps accomplish that. And, of course, if we're buying, we view it as attractive.

Purchases at Ed Angie I think are relatively straightforward I think it will be there is not a ton of volume there, but one of the things we want to do is offset dilution or potential dilution there and so buying back up to the authorization helps accomplish that.

And of course.

We're buying we view it as attractive.

Speaker 3: As it relates to IAC, look, we bought $165 million worth of IAC so far this year. It's something that we have considered, we always consider. I think we took a pause this quarter when we saw the reaction to ANGIE last quarter, which I think even surprised us in terms of its magnitude. And we wanted to look and see where things settle out. And that's something that we will continue to evaluate.

As it relates to IC, we bought $165 million worth of IAC. So far this year.

Something that we have.

Have considered we always consider I think we took a pause this quarter. When we saw the reaction to Angie last quarter, which I think even surprised us in terms of its magnitude and we wanted to.

Christopher Halpin: ... Angi last quarter, which I think even surprised us in terms of its magnitude, and we wanted to look and see where things settle out, and that's something that we will continue to evaluate. And quickly on Care and the growth accelerated from 2% to 4%. What do you think it's gonna take to get back to double-digit? Yeah, so, you know, the slowdown there has been driven by predominantly the consumer side. We had a solid quarter, especially in enterprise there in Q3. You know, we're excited about Brad Wilson, the CEO, and the management team he's brought in. It's really gonna be around reigniting consumer growth. That's both on product and conversion challenges that have happened.

Look and see where things settle out and that's something that we will continue to evaluate.

Brent Thill: And quickly on Care and the growth accelerated from 2% to 4%. What do you think it's gonna take to get back to double-digit?

Yes.

Speaker 5: And quickly on care and the growth accelerated from 2% to 4, what do you think it's going to take to get back to double digits?

And quickly on care in the growth accelerated from 2% for what do you think it's going to take to get back to double digit.

Ross Sandler: Yeah, so, you know, the slowdown there has been driven by predominantly the consumer side. We had a solid quarter, especially in enterprise there in Q3. You know, we're excited about Brad Wilson, the CEO, and the management team he's brought in. It's really gonna be around reigniting consumer growth. That's both on product and conversion challenges that have happened.

Speaker 2: Yeah, so, you know, the slowdown there has been driven by predominantly the consumer side.

Yes.

The slowdown there has been driven by predominantly the consumer side.

Speaker 2: We had a solid quarter, especially in enterprise there in the third quarter.

We had a solid quarter, especially in enterprise there in the third quarter.

Speaker 2: We're excited about Brad Wilson, the CEO and the management team he's brought in.

Excited about Brad Brad Wilson, the CEO and the management team. He has brought in it is really going to be around reigniting consumer growth.

Speaker 2: it's really going to be around reigniting consumer growth. That's both on product and conversion challenges that have happened. Probably a little bit of macro slowdown potentially, but we still really believe in the market opportunity and the position of care and believe it should be a consistent double-digit grower. And then we've got opportunities on marketing that we've talked about consistently for the last few quarters.

That's both on product and conversion challenges that have happened, probably a little bit of macro slowdown potentially but we still really believe in the market opportunity and the position of care and believe it should be consistent.

Christopher Halpin: Probably, you know, a little bit of macro slowdown, potentially, but we still really believe in the market opportunity and the position of Care, and believe it should be a consistent double-digit grower. And then we've got opportunities on marketing that we've talked about, you know, consistently for the last few quarters. So, you know, we are—they are still working on repositioning the platform and getting the marketing going. We think we'll see steady improvement across 2024, and it's gonna be consumer driven. Enterprise is solid. You can see that corporate demand for backup care broadly for their employees is robust, albeit they're gonna be more price sensitive or not be willing to spend as aggressively as they might have during the pandemic.

Ross Sandler: Probably, you know, a little bit of macro slowdown, potentially, but we still really believe in the market opportunity and the position of Care and believe it should be a consistent double-digit grower. And then we've got opportunities on marketing that we've talked about, you know, consistently for the last few quarters. So, you know, we are—they are still working on repositioning the platform and getting the marketing going. We think we'll see steady improvement across 2024, and it's gonna be consumer driven. Enterprise is solid. You can see that corporate demand for backup care broadly for their employees is robust, albeit they're gonna be more price sensitive or not be willing to spend as aggressively as they might have during the pandemic.

Double digit grower and then we've got opportunities on marketing that we've talked about consistently for the last few quarters.

Speaker 2: So, you know, we are, they are still working on repositioning the platform and getting the marketing going. We think we'll see steady improvement across 24 and it's gonna be consumer driven. Enterprise is solid. You can see that corporate demand for backup care broadly for their employees.

So.

We are.

They are still.

Working on repositioning the platform and getting the marketing going we think we'll see.

Eddie improvement across 24, and it's going to be consumer driven enterprise is solid.

You can see that corporate demand.

For backup care broadly for their employees is robust, albeit theyre going to be more price sensitive or not be willing to spend as aggressively as they might have during the pandemic, but.

Speaker 2: is robust, albeit they're going to be more price sensitive or not be willing to spend as aggressively as they might have during the pandemic. But you're going to add accounts and continue to expand that market. So it's really basic blocking and tackling. We're excited about what Brad and team are driving and we're looking forward to 2024. Thank you.

Christopher Halpin: But, you're gonna add accounts and continue to expand that market. So it's really basic blocking and tackling. We're excited about what Brad and team are driving and, you know, we're looking forward to 2024. Thank you. Thanks, Brent. Operator, next question.

Ross Sandler: But, you're gonna add accounts and continue to expand that market. So it's really basic blocking and tackling. We're excited about what Brad and team are driving and, you know, we're looking forward to 2024.

Going to add accounts and continue to expand that market. So it's really basic blocking and tackling we're excited about what Brad and team are driving and we're looking forward to 2024.

Brent Thill: Thank you.

Joey Levin: Thanks, Brent. Operator, next question.

Thank you.

Thanks, Brent operator next question.

Operator: Our next question will come from John Blackledge with TD Cowen. Please go ahead.

Speaker 1: Our next question will come from John Blackledge with TD Cowan. Please go ahead.

Our next question will come from John Blackledge with TD Cowen. Please go ahead.

John Blackledge: Great, thanks. On DDM Digital, you provided new engagement metrics, including core sessions, which is the bulk of engagement on your key properties. Could you talk about the third quarter growth in core sessions and kind of what you saw in October, and maybe how that plays into kind of revenue trends in Q4 and going forward? Thank you.

John Blackledge: Great, thanks. On DDM Digital, you provided new engagement metrics, including core sessions, which is the bulk of engagement on your key properties. Could you talk about theQ3 growth in core sessions and kind of what you saw in October, and maybe how that plays into kind of revenue trends in Q4 and going forward? Thank you.

Speaker 6: Great. Thanks. On DDM Digital, you provided new engagement metrics, including core sessions, which is the bulk of engagement on your key properties. Could you talk about the third quarter growth in core sessions and kind of what you saw in October and maybe how that plays into kind of revenue trend in 4Q and going forward? Thank you.

Great. Thanks on DBM digital you provided new engagement metrics, including core SaaS core sessions, which is the bulk of engagement on your key properties could you talk about the third quarter growth in core sessions and kind of what you saw in October and maybe how that plays into kind of revenue trend in <unk> and going forward.

Thank you.

Christopher Halpin: Yeah, I'll start, which is, again, we mentioned this in the letter, but core is where we're putting the investment and where we think the brands are that have a perpetual value and strong brand strength. And so seeing those grow is nice, and seeing those accelerate growth is even nicer. That trend, we talked about what happened in Q3 and continued to improve in October, and that includes entertainment. So that's an exciting place to be. Yeah, just to add for context, you know, this traffic, we thought, is good information for investors to highlight, you know, the drivers behind the business.

Speaker 3: Yeah, I'll start, which is again, we mentioned this a lot of what core is where we're putting the investment and where we think the brands are that have a

Yes, I'll start which is again, we mentioned this collateral but core is where we're putting the investment and where we think the brands are that have a.

Perpetual value and strong brand strength and.

Speaker 3: perpetual value and strong brand strength. And so seeing those growth is nice and seeing those accelerate growth is even nicer. That trend we talked about what's happening to three and continue to improve in October . And that includes entertainment. So that's not the standing, that there's not a lot of news in entertainment right now. So that's an exciting place to be.

And so seeing those grow is nice and seeing those accelerated growth is even nicer.

The the that trend we talked about what happened in Q3 and continued to improve in October and that's.

That includes entertainment, that's notwithstanding that theres not a lot of news and entertainment right now and so that's.

Exciting place to be yes.

Speaker 2: Yeah, I think they just add for context, you know,

Yes.

Just add for context.

Speaker 2: This traffic we thought is good information for investors to highlight drivers behind the business.

This traffic we thought is good information for investors to highlight.

Drivers behind the business.

Christopher Halpin: One thing we flagged, as Joey said, core, the 19 key brands we're investing actively behind. The total sessions is the whole portfolio, and the difference, which is this dip, the spread of non-core, is what drove the decline in total sessions versus a growth in core. It really comprises weaker long tail sites that were part of Dotdash or Meredith, where we're not prioritizing investment, as well as third-party sites that Meredith historically did the advertising sales for that we acquired in the deal. So, you know, we expect those non-core sites to continue to attract to probably a, you know, de minimis level, so that core and total will be the same at some point.

One thing we would flag as Joey said core the 19 key brands, we're investing actively behind.

The total sessions as the whole portfolio and the difference.

Speaker 2: which is the spread of non-core is what drove the decline in total sessions versus a growth in core. It really comprises.

Which is the spread of noncore is what drove the.

The decline in total sessions.

Versus a growth in core it really comprises.

Speaker 2: weaker long tail sites that were part of .dash or Meredith, we were not prioritizing investment, as well as third-party sites that Meredith historically did the advertising sales for that we acquired in the deal. So we expect those non-core sites to continue to atrit to probably a day-minimous level. So that core and total will be the same at some point.

Weaker long tail sites that were part of dot dash or Meredith, where we're not prioritizing investments as well as third party sites that Meredith historically did.

Advertising sales for that we acquired in the deal.

We expect those noncore sites to continue.

Two a trip to probably a de minimis level.

So that core and total will be the same at some point for.

Christopher Halpin: For a sense of those trends, the core properties represented 67% of total sessions in Q3 2022, and are just under 80% of total sessions this past quarter, and that will only continue. So you know, that is... We expect those core sites to continue their growth. Hope to have entertainment, as Joey said, be a tailwind, and it's a key story of the business.

Speaker 2: For a sense of those trends, the core properties represented 67% of total sessions in third quarter of 22 and are just under 80% of total sessions this past quarter and that will only continue. So, you know, that is, we expect those core sites to continue their growth. Hope to have entertainment as Joey said, be a tailwind and it's a key story of the business.

For a sense of those trends.

Core properties represented 67% of total sessions in the third quarter of 'twenty two.

We are just under 80% of total sessions this past quarter and that will only continue.

So that is we expect those core sites to continue their growth.

Hope to have entertainment as Joey said be a tailwind and it's a key story of the business.

John Blackledge: Great, thanks. If I could ask one more question on Dotdash Meredith. You guys called out the performance marketing revenue accelerated to 22% growth year-over-year in Q3. Just kind of what drove that acceleration? Any color on verticals that were strong and that were drivers of that part of the business?

Speaker 6: Great, thanks. If I could ask one more question on DTM Digital, you guys called out the performance marketing revenue accelerated to 22% growth year-to-year and 3Q. Just kind of what drove that acceleration, any color and verticals that were strong and that were drivers of that part of the business?

Great. Thanks, if I could ask one more question on <unk> digital.

You guys called out the performance marketing revenue accelerated.

22% growth year over year in <unk>, just kind of what drove that acceleration and any any color on verticals that were strong and that were drivers of that of that part of the business.

Christopher Halpin: Yeah. It's really the continued execution by Dotdash Meredith on a core thesis of buying, acquiring Meredith, which was Meredith has tremendous brands, traffic, and content, but definitely underpunched its weight in modern e-commerce integrations to that content. And we talked extensively through the journey of the integration last year, that some of the delays pushed out those e-commerce integrations, and really bringing Dotdash's expertise to the properties. But we've had them going this year, and you can see the steady growth from, you know, flat to 12 to up 22% this past quarter in overall performance marketing. Across categories.

Joey Levin: Yeah. It's really the continued execution by Dotdash Meredith on a core thesis of buying, acquiring Meredith, which was Meredith has tremendous brands, traffic, and content, but definitely underpunched its weight in modern e-commerce integrations to that content. And we talked extensively through the journey of the integration last year, that some of the delays pushed out those e-commerce integrations, and really bringing Dotdash's expertise to the properties. But we've had them going this year, and you can see the steady growth from, you know, flat to 12 to up 22% this past quarter in overall performance marketing. Across categories.

Speaker 2: Yeah, it's really the continued execution by Goddash Meredith on a core thesis of acquiring Meredith, which was Meredith has tremendous brands, traffic, and content, but definitely underpunched its weight in modern e-commerce integrations to that content.

Yes, it's really the continued execution.

By God Dash Meredith on a core thesis of buying of acquiring Meredith, which was Meredith has tremendous brands traffic and content, but.

Definitely under punched its weight and modern e-commerce integrations to that content.

Speaker 2: And we talked extensively through the journey of integration last year that some of the delays pushed out those e-commerce integrations and really bringing dot dashes expertise to the properties, but we've had them going this year and you can see the steady growth from flat to 12 to up 22% this pass quarter in overall performance marketing.

And we.

We talked extensively through the journey of <unk>.

Integration last year that some of the delays pushed out those e-commerce integrations.

And really bringing dot dashes expertise to the properties, but we've had them going this year and you can see the steady growth from flat to 12.

Up 22% this past quarter and overall performance marketing.

Speaker 2: Across categories, you know, it is overwhelmingly goods commerce, you know, consumers buying products.

Across categories.

Joey Levin: ... you know, it is overwhelmingly goods commerce, you know, consumers buying products that is driving that. We have relationships with all the big retailers. We think we're the biggest partner of many of those. And we think we move from strength to strength with those folks of where we're integrating and driving. And we expect that to be second derivative positive for a while, including going into this holiday season, where we're excited about the integrations there. And performance marketing will be, you know, a key tailwind to monetization per session.

Sure.

It is overwhelmingly goods commerce.

Consumers buying products that is driving that we have relationships with all the big retailers.

Speaker 2: That is driving that. We have relationships with all the big retailers. We think we're the biggest partner of many of those. And we think we move from strength to strength with those folks of where we're integrating and driving. And we expect that to be second derivative positive for a while, including going into this holiday season where we're excited about.

We think were the biggest partner of many of those.

And.

We think we move from strength to strength with those folks of where we're integrating and driving.

And we expect that to be second derivative positive for a while including going into this holiday season, where we're excited about the integrations there.

Speaker 1: The integrations there and performance marketing will be, you know, a key tailwind to monetization per session.

<unk> marketing will be.

A key tailwind to monetization per session.

Joey Levin: The only thing I'd add to that is performance marketing, especially in this environment, is something where advertisers want to be and want to shift spend, and we have great inventory and great tools to be able to move that. And so I think we're capturing that overall trend.

Speaker 3: And the only thing I'd add to that is performance marketing, especially in this environment, is something where advertisers want to be and want to shift spend. And we have great inventory and great tools to be able to move that. And so I think we're capturing that overall trend. Thank you. Thank you, John .

The only thing I'd add to that is performance marketing, especially in this environment is is something where advertisers want to be and want to shift spend in.

We have great inventory and great tools to be able to move that and so I think we're we're capturing that that overall trend.

Kunal Madhukar: Thank you.

John Blackledge: Thank you.

Joey Levin: Thank you, John. Operator, next question.

Thank you. Thank you John.

Operator next question.

Operator: Our next question will come from Justin Patterson with KeyBanc. Please go ahead.

Speaker 1: Our next question will come from Justin Patterson with KeyBank, please go ahead.

Our next question will come from Justin Patterson with Keybanc. Please go ahead.

Justin Patterson: Great. Thank you very much. Good morning. I was hoping you could elaborate on just, the work ahead to improve both the service provider experience and the homeowner's experience. You'd called that out in the letter as one area where there's still a lot of wood to chop. Thank you.

Speaker 5: Great. Thank you very much. Good morning. I was hoping you could elaborate on just the work ahead to improve both the service provider experience and the homeowner's experience. It called that out in the letter as one area where there's still a lot of work to chop. Thank you.

Great. Thank you very much good morning, I was hoping you could elaborate on just the work ahead to improve both the service provider experience and the homeowners' experience, it's called that out in the letter is one area, where there's still a lot of what the chop. Thank you.

Joey Levin: Yeah. So, service provider experience is, I just wanna highlight again some of the work that's been done here. We talked about retention a lot. We also, I think, last quarter talked about it, but we continue to raise meaningful improvements in bad debt, meaningful improvements in the lifetime value of the service professionals coming onto our platform. And just anecdotally, the interactions we're having with service professionals have in tone improved meaningfully. And they see that because I presume, and we can measure that to some extent, and they can measure this better than us, that they're getting a better ROI on our platform, which means we've improved pricing and which means we've improved quality. And when those things are happening, pros are happier.

Yes so.

Service provider experience is.

Speaker 3: So, the provider experience is, I just want to highlight again some of the work that's been done here.

I just want to highlight again some of the work that's been done here. It is.

Speaker 3: It is, we talked about retention a lot. This is also, I think, Glass-Border talks about it, but we're continuing to raise meaningful improvements in bad debt, meaningful improvements in the lifetime value of the service professional's coming on to our platform.

Talked about retention a lot because we got so I think last quarter, you talked about it but we are continuing to raise meaningful improvements in bad debt a meaningful improvement in the lifetime value of the service professionals coming onto our platform and just.

Speaker 3: And just anecdotally, the interactions we're having with service professionals have in tone improved.

Anecdotally the interactions, we're having with service professionals.

<unk>.

Cone improved meaningfully and they see that because I presume and we can measure this to some extent and they can measure this better than us that theyre getting a better ROI on our platform, which means we've improved pricing and which means we've improved quality and when those things are happening.

Speaker 3: And they see that because I presume and we can measure that to some extent and they can measure this better than us that they're getting a better ROI on our platform. Which means we've improved pricing and which means we've improved quality and when those things are happening, pros are happier. And as I said, multiple times pros.

Joey Levin: As I've said multiple times, pros, when they're happier and more engaged, make homeowners happier and more engaged. The key fundamental element of what a homeowner comes to our platform for is to match with a service professional. And whether they match with a service professional at all is a huge cliff, then the more service professionals they match with, up to a point, is very important. That increases their odds of connecting with a service professional, and then that increases their odds of hiring a service professional. We're seeing each of those levels of the funnel improve right now. And we still have a lot of tools in there that we haven't launched yet.

They are happier.

And as I said multiple times pros.

Speaker 3: when they're happier and more engaged, make homeowners happier and more engaged.

When they are happier and more engaged make homeowners happier and more engaged.

Speaker 3: The key fundamental element of what a homeowner comes to our platform for is to match with the service professional and the more...

The key fundamental element of what a homeowner homes to our platform or is to match with the service professional and the more.

Speaker 3: Whether they match with a service professional at all is a huge cliff. Then the more service professionals they match with up to a point is very important. That increases their odds of connecting with a service professional. And then that increases their odds of hiring a service professional. We're seeing each of those levels of the funnel improve right now.

Whether they match with the service professional at all is a huge.

Cliff than the more service professionals, a match with up to a point is very important that increases their odds of connecting with the service professional and then that increases their odds of hiring Mister with professional we're seeing each of those levels of the funnel.

<unk> right now.

Speaker 3: And we still have a lot of tools in there that we haven't launched yet. We've improved messaging, for example, and improved messaging on web and mobile and brought those things to parity, but we have not yet really fundamentally driven the transaction more heavily towards messaging.

And we still have a lot of tools in there that we haven't launched yet we've improved messaging for example, an improved messaging on web and mobile and brought those things to parity, but we have not yet really fundamentally driven.

Joey Levin: We've improved messaging, for example, and improved messaging on web and mobile and brought those things to parity, but we have not yet really fundamentally driven the transaction more heavily towards messaging. Still, our interaction between homeowners and pros relies heavily on the telephone. That's good, that's helpful. Pros like to receive phone calls, but homeowners are less eager to receive phone calls than they have been historically. And so getting people to message and getting that back and forth started on our platform, I think is an area where we still have room to improve. Also, we're looking at acquisition economics and making sure that we're acquiring both homeowners and pros that are more likely to match on our platform.

<unk> action more heavily towards messaging still our interaction between homeowners embrose relies heavily on the telephone.

Speaker 3: Still are our interaction between homeowners and pros with lives heavily on the telephone. That's good, that's helpful. Pro's like to receive phone calls, but homeowners are less eager to receive phone calls than they have been historically. And so getting people to message and getting that back and forth started on our platform, I think is an area where we still have room to improve.

That's good that's helpful.

<unk> like to receive phone calls but.

Homeowners are less eager to read receive phone calls than they have been historically and so getting people to message and getting that back and forth.

Started on our platform I think is an area, where we still have room to improve.

Ah.

Speaker 3: Also, we're looking at acquisition economics and making sure that we're acquiring both homeowners and pros that are more likely to match on our platform.

Also we're looking at at.

Acquisition, economics, and making sure that we're acquiring both homeowners and pros that are more likely to match on our platform.

Joey Levin: And so we're taking a look at all of our marketing channels, which we've been doing for a while. Some stuff that was unprofitable was easy to cut, and we've talked a lot about that. But we're now looking at channels and saying: How can we demand more out of our existing channels? Not just demand more profit out of our existing channels, but demand better customer experience out of our existing channels. And we think we still have work to do there, and we think that will lead to, again, both more profitability and better interactions, better experiences between homeowners and service professionals.

Speaker 3: And we're taking a look at all of our marketing channels, which we've been doing for a while. Some stuff that was unprofitable was easy to cut. And we've talked a lot about that, but we're now looking at channels and saying, how can we demand more out of our existing channels? Not just a man more profit out of our existing channels, but the man better customer experience out of our existing channels.

And so we're taking a look at all of our marketing channels, which we've been doing for a while some stuff that was unprofitable was easy to cut.

And we've talked a lot about that but we're now looking at channels and saying how can we demand more out of our existing channels not just demand more profit out of our existing channels, but demand better customer experience out of our existing channels.

Speaker 3: And we think we still have work to do there and we think that will lead to, again, both more profitability and better interactions, better experiences between homeowners and service professionals. And I'll just add one more thing on that.

And we think we still have work to do there and we think that will lead to again, both more profitability and better interactions better experiences between homeowners and.

Service professionals.

Joey Levin: I'll just add one more thing on that, which is people have asked me the question, "Well, are you, are you cutting marketing here in ways that's kind of overstating the profit or where you're borrowing from the future to cut marketing?" The areas where we're generally cutting marketing are performance channels. So performance channels are, you know, near term performance channels, and brand spend is actually up year-over-year, and it'll be up again year-over-year in Q4.

And I'll just add one more thing on that which is.

Speaker 3: People have asked me the question, are you cutting marketing here in ways that's kind of overstating the profit or where you're borrowing from the future to cut market?

People have asked me. The question are you are you cutting marketing here in ways that kind of overstating, the profit or where youre borrowing from the future to cut marketing areas, where we're generally cutting marketing our performance channels and so performance channels.

Speaker 3: The areas where we're generally cutting marketing are performance channels. And so performance channels are, you know, near-term performance channels. And brand spend is actually up year over year and will be up again year over year in Q4. So that part of the business is healthy, but we're looking at all the channels and deciding what we want to do and demanding more, again, in customer experience out of each of them so that when we bring a homeowner.

Our.

Near term performance channels and brand spend is actually up year over year.

It will be up again year over year in Q4, so so that part of the business is healthy, but we're looking at all the channels and deciding what we want to do and demanding more again in customer experience out of each of them. So that when we bring a homeowner to our platform and when we bring approach to our platform. The interactions between those two are much more valuable.

Joey Levin: So, that part of the business is healthy, but we're looking at all the channels and deciding what we wanna do and demanding more, again, in customer experience out of each of them, so that when we bring a homeowner to our platform and when we bring a pro to our platform, the interactions between those two are much more valuable for each other and for our platform.

Speaker 3: to our platform and when we bring a pro to our platform, the interactions between those two are much more valuable for each other and for our platform. Thank you.

For each other and for our platform.

Justin Patterson: Thank you.

Thank you.

Joey Levin: Thank you, Justin. Operator, next question.

Thank you Justin.

Operator next question.

Operator: Our next question will come from Ross Sandler with Barclays. Please go ahead.

Our next question will come from Ross Sandler with Barclays. Please go ahead.

Speaker 1: next question will come from Ross Sandler with Barclays. Please go ahead.

Ross Sandler: Hey, guys. Going back to Dotdash Meredith. So you talked about the strength and performance, but the premium side of the business, down 12, I think was a tad worse than the industry, although improving. So how do you feel about that? And then looking forward, how do we think about the cadence of digital ad growth at DDM in the context of the new session growth rates. Are we likely to see revenue run ahead or behind session growth in 2024? And is that like a function of ad load or improving CPM or some combo of those? How do we think about that? Thanks a lot.

Speaker 7: Hey guys, going back to .-meritif. So you talked about the strength and performance, but the premium side of the business down 12, I think, was a tad worse in the industry, although improving. So how do you feel about that? And then looking forward, how do we think about the

Alright, hey, guys going back to Dr. Meredith.

So you talked about the strength and performance book.

Premium side of the business down 12, I think.

Tad worse than the industry, although improving so how do you feel about that and then looking forward how do we how do we think about the.

The cadence of digital AD growth in DDA in the context of.

Speaker 7: the cadence of digital ad growth at DTM in a context of the new session growth rate. So we're likely to see revenue run ahead or behind session growth in 24. And is that like a function of ad load or proving to CPM or some combo of those? How do we think about that? Thanks a lot. Okay. Thanks.

The new session growth rates are we likely to see revenue run ahead or behind session growth in 'twenty, four and is that like a function of ad load or improving CPM or some combo of those how do we think about that thanks.

Hello.

Christopher Halpin: Okay. Thanks, Ross. You know, for when you compare to the market and think about overall digital advertising growth at Dotdash, I would blend the advertising and performance marketing lines. The third leg of digital is licensing, which is a little bit of a different beast. But we think of those on a blended basis when looking at comparables. That was down about 3.5%, in Q3, which when we look at publishing peers, we actually felt like we were holding serve versus what we saw there. We'd like it to be better.

Okay.

Thanks Ross.

Speaker 2: for when you compare to the market and think about overall.

No.

When you compare to the market and think about overall.

Speaker 2: digital advertising growth at dot dash. I would blend.

Digital advertising growth at at Dot Dash I would blend.

Speaker 2: the advertising and performance marketing line, the third leg of...

<unk> advertising in performance marketing line feed the third leg of digital is licensing which is a little bit of a different beast, but we think of those on a blended basis when looking at Comparables that was down about three 5%.

Speaker 3: Digital is light and seen, which is a little bit of a different piece.

Speaker 3: But we think of those on a blended basis when looking at comparable. That was down about 3 1,5% in the third quarter. Which when we look at publishing peers, we actually felt like we were holding serve.

In the in the third quarter, which when we look at publishing peers.

We actually felt like we were holding serve versus what we saw there we'd like it to be better we've got a little bit of.

Speaker 3: versus what we saw there. We'd like it to be better. We've got a little bit of...

Christopher Halpin: We've got a little bit of demonetization going on versus Q3 of 2022, when we still had, you know, a lot, probably over ad load in some of the Meredith properties, and some, you know, suboptimal traffic. So a little bit is a comp issue, but overall, we view it as down 3.5, and we expect those numbers to be improved in Q4, even with a soft ad market in October. So, you know, in our mind, we feel good about the progress we're making. There are small things that were headwinds, like, you know, the impact of the labor, not small, but labor strike from Hollywood and in our entertainment categories.

The monetization going on versus third quarter of 'twenty, two when we still had.

Speaker 3: demonetization going on versus third quarter of 22 when we still had, you know, probably over at load in some of the Meredith properties and some, you know, suboptimal traffic. So a little bit is a comp issue, but, um,

Probably over AD load in some of the Meredith properties.

And some.

Suboptimal traffic, so a little bit as a comp issue but.

Speaker 3: Overall, we viewed it as down three and a half and we expect those numbers to be improved in Q4, even with soft ad market in October . So, in our mind,

Overall, we view unit is down three five and we expect those numbers.

To be improved in Q4, even with a.

Soft AD AD market in October.

So in our mind.

We feel we feel good about the progress we're making there are small things that were headwinds like.

Speaker 3: We feel good about the progress we're making. There are small things that were headwinds like the impact of the labor, not small, but labor strike from Hollywood and in our entertainment categories. But we're head down and looking to get those ad numbers to flat and to growth. That talks to 24. We're not providing guidance yet, but when you look at the sessions which you highlight, from the spin literate channel. After you find the

The impact of the labor and a small but labor strike.

From Hollywood, and our entertainment categories, but we're head down and looking to get those add numbers to flat into growth.

Christopher Halpin: But we're head down and looking to get those ad numbers to flat into growth. That talks to you know 2024. We're not providing guidance yet, but when you look at the sessions which you highlight, core should continue to grow, be even better if the actors' strike got behind us and there was more entertainment content to talk about. But core is gonna be, you know, total and core will be second derivative positive in Q4. Core should grow solidly, and that we expect that to continue into next year, so traffic will be a tailwind. On monetization, you know, premium sales are soft right now. The programmatic CPMs, even in this Q4, should be up year-over-year, and we think we're outperforming the market on open market CPMs.

<unk> talked to.

24, we're not providing guidance yet, but when you look at the sessions, which you highlight.

Speaker 3: Corps should continue to grow even better. The actors strike up behind us and there was more entertainment cons to talk about. But Corps is gonna be, you know, total encore will be second derivative positive in Q4. Corps should grow solidly and that we expect that to continue into next year, so traffic will be a tailwind.

Core should continue.

To grow even better.

Actors strike got behind US and there was a there was more entertainment constant talk about but.

Core is going to be total EMCORE will be second derivative positive in Q4.

Core should grow solidly and now we expect that to continue into next year.

So traffic will be a tailwind.

Speaker 3: I'm monetization premium sales are software right now. The programmatic CPMs even in this Q4 should be up the over year and we think we're out performing the market on open market CPMs. So hopefully advertising revenue, digital advertising revenue is flatish and then performance marketing.

Monetization.

Premium sales are soft right now with programmatic cpm's, even in this Q4 should be up year over year, and we think we're outperforming the market on.

Open market CPM, so hopefully advertising revenue.

Christopher Halpin: So hopefully, you know, advertising revenue, digital advertising revenue is flattish, and then performance marketing is a source of strong growth in Q4 and continuing into next year. So, you know, we, we are optimistic on 2024 to drive digital, overall digital revenue growth, and then, given what we've said about incremental margins, that should drive continued improvement in profitability. Okay. Thanks, Ross. Operator, next question.

Ed.

Digital advertising revenue was flattish and in performance marketing.

Speaker 8: as a source of strong growth in Q4 and continuing for next year. So, you know, we are optimistic on 24 to drive digital, overall digital revenue growth and then given what we've said about incremental margins that should drive, continue to improve and profitability.

As a source of strong growth in Q4 and continue into next year. So.

We are optimistic on 24 to drive digital overall digital revenue growth and then given what we've said about incremental margins that should drive.

Continued improvement in profitability.

Okay. Thanks, Ross Operator next question.

Operator: Our next question will come from Brian Fitzgerald with Wells Fargo. Please go ahead.

Speaker 1: Our next question will come from Brian Fitzgerald with Wells Fargo. Please go ahead.

Our next question will come from Brian Fitzgerald with Wells Fargo. Please go ahead.

Brian Fitzgerald: Thanks. A couple follow-ups on DDM. On D/Cipher, it sounds like there's been an encouraging response as cookie deprecation kicks off in 2024. Where do you think penetration of that product could go, for your general interest sites? And how are you thinking about potential revenue uplift there for both general interest and total DDM digital? And then, Joe, any further thoughts on AI and defending copyrighted evergreen content from DDM? Thanks.

Speaker 3: Thanks a couple follow ups on DTM on decipher. It sounds like there's been an encouraging response.

Brian Fitzgerald: Thanks. A couple follow-ups on DDM. On D/Cipher, it sounds like there's been an encouraging response as cookie deprecation kicks off in 2024. Where do you think penetration of that product could go, for your general interest sites? And how are you thinking about potential revenue uplift there for both general interest and total DDM digital? And then, Joey, any further thoughts on AI and defending copyrighted evergreen content from DDM? Thanks.

Thanks, a couple of follow ups on DM on decipher it sounds like Theres been an occurs in response.

Speaker 9: as cookie deprecation kicks off in 24, where do you think penetration of that product could go for your general interest sites?

Cookie deprecation kicks off in 24, where do you think penetration of that product could go for your general interest sites and.

Speaker 9: And how do you think about potential revenue uplift there for both General Interest and total DVM digital? And then...

And how are you thinking about potential revenue uplift there for both the general interest in total DBM digital.

And then.

Speaker 9: Joe, any further thoughts on AI and defending copyrighted evergreen content from DDM?

Joe any further thoughts on AI and defending copyrighted evergreen content from DBM.

<unk>.

Christopher Halpin: Sure. On D/Cipher, look, I think you hit the main point, Brian, which is intent is a very powerful indicator for ad performance, and I think much more powerful and based on our testing, much more powerful than cookies. And the good news is that cookies are being deprecated, and so the market, I think, is sort of forced in that direction regardless. Our intent data is, we think, pretty good and also pretty unique. You know, the best performing ad platform in the world has exceptional intent, and we sort of follow in the wake of that with what we are able to gather in our platform with intent. And we expect that to really help overall Dotdash Meredith over the course of 2024.

Joey Levin: Sure. On D/Cipher, look, I think you hit the main point, Brian, which is intent is a very powerful indicator for ad performance, and I think much more powerful and based on our testing, much more powerful than cookies. And the good news is that cookies are being deprecated, and so the market, I think, is sort of forced in that direction regardless. Our intent data is, we think, pretty good and also pretty unique. You know, the best performing ad platform in the world has exceptional intent, and we sort of follow in the wake of that with what we are able to gather in our platform with intent. And we expect that to really help overall Dotdash Meredith over the course of 2024.

Sure.

Speaker 3: Sure, on decipher, I think you hit the main point, Brian , which is intense is a very powerful indicator for ad performance and I think much more powerful and based on our testing, much more powerful than cookies. And the good news is that cookies are being deprecated and so the market I think is sort of forced in that direction regardless.

On.

Decipher like I think you hit the main points, Brian which is intent is a very powerful indicator for AD performance and I think much more powerful and based on our testing much more powerful than cookies and the good news is that that cookies are being <unk>.

Deprecated and so the market I think is sort of forced in that direction regardless.

Speaker 3: Our intent data is we think pretty good and also pretty unique. You know, the best performing ad platform in the world has exceptional intent. And we sort of follow in the wake of that with what we are able to gather in our platform with intent. And we expect that to really help overall.

Our intent data is we think pretty good and also pretty unique.

The best performing AD platform in the World has exceptional intent.

And we sort of follow in the wake of that with what we are able to gather in our platform with intent.

<unk>.

We expect that to really help overall dot dash Meredith over the course of 2024, we're seeing it.

Speaker 3: over the course of 2024. We're seeing it in advertiser interest, just in terms of responding to RFPs, but we're also seeing it in advertiser spend in terms of making it a part of their campaigns. And again, we expect that to continue, especially as we get better at mapping it broader across the internet and broader across partners.

Christopher Halpin: We're seeing it in advertiser interest, just in terms of responding to RFPs, but we're also seeing it in advertiser spend in terms of making it a part of their campaigns. And again, we expect that to continue, especially as we get better at mapping it broader across the internet and broader across partners, and as it gets easier for partners or advertisers to buy that product from us, which is all stuff that we have underway. In terms of AI, look, we are going to defend our content.

Joey Levin: We're seeing it in advertiser interest, just in terms of responding to RFPs, but we're also seeing it in advertiser spend in terms of making it a part of their campaigns. And again, we expect that to continue, especially as we get better at mapping it broader across the internet and broader across partners, and as it gets easier for partners or advertisers to buy that product from us, which is all stuff that we have underway. In terms of AI, look, we are going to defend our content.

In Advertiser interest just in terms of responding to Rfps, but we're also seeing it in advertiser spend in terms of making it a part of their campaigns.

Again.

We expect that to continue, especially as we get better at mapping it broader across the internet and the broader across partners and as it gets easier for partners or advertisers to buy that product from us which is all stuff that we have underway.

Speaker 10: And as it gets easier for partners or advertisers to buy that product from us, which is all stuff that we have underway. In terms.

In terms of.

Speaker 10: AI look we are going to to send our content. We've been clear about that. And I think that there's one sort of.

AI.

We are going to defend our content, we've been clear about that and I think that theres, a theres one sort of.

Christopher Halpin: We've been clear about that, and I think that there's one sort of small and relatively straightforward question that needs to be answered, that hopefully, if it's answered in the way we expect it will, we'll get everybody to the table to get to reasonable conclusions, which is,

Joey Levin: We've been clear about that, and I think that there's one sort of small and relatively straightforward question that needs to be answered, that hopefully, if it's answered in the way we expect it will, we'll get everybody to the table to get to reasonable conclusions, which is,

Small and relatively straightforward question that needs to be answered that hopefully if its answered in the way we expect it will we'll get everybody to the table to get to.

Speaker 10: Mall and relatively straightforward question that needs to be answered, that hopefully if it's answered in the way we expect it will we'll get everybody to the table to get to

Speaker 10: reasonable conclusions, which is, do these platforms have the right to take everybody's content and transform it, and use it for the purpose that they're using?

Reasonable conclusions, which is.

Joey Levin: ... do these platforms have the right to take everybody's content and transform it, and use it for the purpose that they're using it? We think the existing copyright law is pretty clear that they do not have the right to do that, but it will probably take a court to reach that determination. And once that happens, everybody can get together and figure out a solution that works for everybody in the ecosystem, and that's our plan. There's a number of those suits underway right now, and we expect that there will be a number more of those over time.

Do these platforms have the right to take everybody's content and transform it.

And use it for the purpose that they are using it we think the existing copyright law is pretty clear that they do not have the right to do that but it will probably take a court.

Speaker 10: We think the existing copyright law is pretty clear that they do not have the right to do that, but it will probably take a court.

Speaker 10: to reach that determination. And once that happens, everybody can get together and figure out a solution that works for everybody in the ecosystem and that's our plan. There's a number of those suits underway right now and we expect that there will be a number more of those over time. Thanks, Joe.

To reach that determination and once that happens everybody can get together and figure out a solution that works for everybody in the ecosystem and.

And that's our plan there is a number of those suits underway right now and we expect that there will be a number more of those over time.

Brian Fitzgerald: Thanks, Joey. Appreciate it.

Thanks, Joe I appreciate it.

Christopher Halpin: Thank you. Operator, next question.

Joey Levin: Thank you. Operator, next question.

Thank you operator next question.

Operator: Our next question will come from Igor Larinian with Citigroup. Please go ahead.

Operator: Our next question will come from Ygal Arounian with Citigroup. Please go ahead.

Speaker 1: Our next question will come from Egal Arunyan with City Group. Please go ahead.

Our next question will come from <unk> <unk> with Citigroup. Please go ahead.

Ygal Arounian: Hey, good morning, guys. Two questions. First on Dotdash, and not to beat a dead horse here on the macro, but we've heard over the course of earnings a lot more incremental concern on the consumer, especially in discretionary. And, you know, I know the e-commerce advertising and performance is really important. Do you guys have any insight there specifically that's, you know, maybe different? I know you talked about a softer October, but still sound relatively hopeful around holiday. Just any insight on that. And then on Angie, you know, selling the roofing business, you're, you know, paring down on services. Is that part of the business now where you want it to be, or is there still more with the chop there as well? Thanks.

Speaker 11: Hey, good morning guys. Two questions. First bump on dot dash.

Hey, good morning, guys.

Two questions first one on Bob fashion.

Speaker 11: not to be a death horse here on the macro, but we've heard over the course of earnings, a lot more incremental concern on the consumer, especially in discretionary.

To beat a dead horse here on the macro but we've heard.

Over the course of earnings.

A lot more incremental concern on on the consumer, especially in discretionary and.

Speaker 11: You know, I know the e-commerce advertising and performance is really important to you guys have any insight there specifically that's, you know, maybe different. I talked about the software on toberber. Those sound relatively hopeful around holiday. Just any insight on that. And then on Angie, you know, the the roofing business you're, you know, comparing down on services, is that.

I know the e-commerce advertising and performance is really important.

You guys have any insight there specifically.

Maybe just I know you talked about the soft softer October those sound relatively hopeful around holiday just any insight on that and then on angi.

So on the roofing business Europe.

Bring down on services is that part of the business now where you want it to be or is there still more of what the chop there as well thanks.

Speaker 11: Part of the business now where you want it to be or is there still more with the chop there as well? Thanks.

Joey Levin: I'll do the second one first. The services business... Look, every business we want to always be better, but the services business is where we want it to be right now, meaning there are not other things that we are paring out of the services business. You can still see in the comp things down year-over-year, but that was when we were in the higher consideration managed projects business, and there is this final step in roofing. But where we are right now in services is a place from which we think we can build. We think it's very healthy. We know it's a very good customer experience, our best customer experience, and we're excited to expand it.

Speaker 10: I'll do the second one first. The services business, look, every business we want to always be better, but the services business is where we want it to be right now, meaning there are not other things that we are preparing out of the service business.

I'll do the second one first.

The services business.

Every business, we want to always be better, but the services business is where we want it to be right now, meaning there are not other things that we are paring out of the services business.

Speaker 10: You can still see in the comp things down year over year, but that was when we were in the higher consideration managed projects business. And there is this final step in roofing, but where we are right now in services is a place from which we think we can build. We think it's very healthy. We know it's a very good customer experience, our best customer experience, and we're excited to...

You can still see in the comps things down year over year, but that was when we were in the higher consideration managed projects business and.

There is this final step in roofing, but where we are right now in services is the place from which we think we can build.

We think it's very healthy we know it's a very good customer experience, our best customer experience and we're excited to expand it there is the reality and services which services.

Speaker 10: There is the reality and services which services Participate in service requests

Joey Levin: There is a reality in services, which services participates in service requests sort of downstream in Angi, which means that the services business revenue growth will be somewhat tied to what happens on demand overall, and service requests overall at Angi. But in terms of the business that we're doing there and want to be doing there, I think that's all in a healthy place and where we want it to be. And we're happy to close the roofing chapter and move on from there. I've already forgotten the first question.

Participate in service requests sort of downstream and AMG, which means that the services business revenue growth will be somewhat tied to what happens on demand overall in service requests overall at AMG, but in terms of the business that we're doing there and want to be doing there I think that's all in.

Speaker 10: sort of downstream in Angie, which means that the services business revenue growth will be somewhat tied to what happens on demand overall and service requests overall at Angie. But in terms of the business that we're doing there and want to be doing there, I think that's all in a healthy place and where we want it to be.

In a healthy place and where we want it to be.

Speaker 3: And we're happy to close the roofing chapter and move on from there. We're already pre-gotten the first question. Yeah, and just one technical point related to the roofing transaction, we're thrilled to have that business in the hands of a private third party who will operate it well and it's returned to being a customer. We flag this in the footnote on page two of the earnings release.

And we're happy to close the roofing chapter and move on from there already forgotten. The first question yes.

Christopher Halpin: Yeah, and just one technical point related to the roofing transaction. We're thrilled to have that business in the hands of a, you know, private third party who will operate it well, and it's returned to being a customer. We flagged this in the footnote on page 2 of the earnings release, but under GAAP, Roofing will be a discontinued operation starting next quarter for Angie, but given materiality will not be for IAC. So in order to keep the Angie financials consistent between what Angie will put out standalone and what is rolled up in IAC, we will move Roofing on a historical basis into emerging and other.

One technical point related to the roofing transaction, we're thrilled to have that business.

In the hands of.

Private third party, who will operated well and it's returned to being a customer.

We flagged this in the footnote on page two of the earnings release, but under GAAP roofing will be a discontinued operation starting next quarter for AMG.

Speaker 3: But under GAP, roofing will be a discontinued operation starting next quarter for Angie, but given materiality will not be for IAC.

Given materiality will not be for IAC. So in order to keep the <unk> financial's consistent between what Angie will put out.

Speaker 3: So in order to keep the Angie financials consistent between what Angie will put out standalone and what is rolled up in IAC, we will move grouping on a historical basis into emerging in others. On a go forward basis, there'll be no impacts because we've sold the business, but just on a...

Standalone and what is rolled up in <unk>.

IAC.

We will move roofing on a historical basis into emerging and other.

Christopher Halpin: On a go-forward basis, there'll be, there'll be no impact as we've sold the business, but just on a historical basis, starting next quarter, Roofing will be within emerging and other, and then will be a discontinued ops for Angi. I'm sure we'll continue to work through that to explain that with investors, but just one thing we wanted to flag. On your first question on Dotdash Meredith, and what we're seeing macro, you know, we are vigilant on the point. You can't have interest rates on consumers go from 0 to 5% and higher without some impact.

On a go forward basis, there'll be there'll be no impact as we've sold the business, but just on a.

Speaker 3: historical basis starting next quarter, roofing will be within emerging another, and then will be a discontinued office for Angie. I'm sure we'll continue to work through that to explain that with investors, but just one thing we wanted to flag. On your first question on dot-marradith and what we're seeing macro.

Historical basis, starting next quarter.

Roofing will be within emerging in other.

And then will be discontinued ops for Angie I'm sure, we'll continue to work through that.

To explain that with investors, but just one thing we wanted to flag on your first question on Dot Dash Meredith and what we're seeing macro.

Speaker 3: You know, we are vigilant on the point. You can't have interest rates on consumers go from zero to five and higher percent without some impact. There are elements that are just distinct to DDM that we expect to grow and take share just because we didn't have these integrations a year ago in the Meredith assets or such a big platform. But well to the expectations and broader trends were.

We are.

Vigilant on the point you can't have interest rates on consumers go from zero to five and higher percent without some impact.

Christopher Halpin: There are elements that are just distinct to DDM that we expect to grow and take share, just because we didn't have these integrations a year ago, and the Meredith assets are such a big platform. But relative to expectations and broader trends, we're looking. What is hard is that the cadence of e-commerce and holiday shopping, you know, keeps changing year to year. If you go back to 2021, things were pulled forward because everyone was worried about the supply chain issues and not being able to get their child or loved one the right holiday present because they would run out. So things got moved up to November.

There are elements that are just distinct too.

DBM that we expect to grow and take share.

Just because we didn't have these integrations a year ago and the Meredith.

Assets are such a big platform.

But relative to expectations and broader trends we're looking.

Speaker 3: What is hard is that...

What is.

What is hard is that.

Speaker 3: cadence of e-commerce and holiday shopping, keeps changing year to year. If you go back to 21, things were pulled forward because everyone was worried about the supply chain issues and not being able to get their child or level on the right holiday present because they would run out. So things got moved up to November . Last year, consumers waited.

The cadence of.

E Commerce and holiday shopping.

Keeps changing year to year. If you go back to 'twenty, one things were pulled forward because everyone was worried about.

The supply chain issues, and not being able to get their child or level on the right holiday present, because they would run out.

So things got moved up to November last year consumers weighted.

Christopher Halpin: Last year, consumers waited because they weren't worried about supply chain, so things moved into much more packed up in Thanksgiving and even into December. We flagged that last year. This year, we've seen discussion among competitors and retailers about consumers being more deal-oriented and waiting. There was the Amazon Prime Deals Day, which was strong. That probably pulled some demand forward. And then, you know, we'll see how the cadence works of consumer spending and also how promotional e-commerce players are. But I'd say, you know, we're cautious but not seeing any specific signs of a slowdown. But, you know, we, we're managing our business expecting anything could happen in this environment.

Speaker 3: because they weren't worried about supply chain. So things moved into much more packed up and Thanksgiving and even in December . We flag that last year. This year, you've seen discussion among competitors and retailers about consumers being more deal oriented and waiting. There was the Amazon Prime Deal Day, which was strong. That probably pulled some demand forward. And then we'll see how the cadence works.

Because they weren't worried about supply chain, so things moved into much more packed up in Thanksgiving and even into December.

Now last year this year.

We've seen discussion among competitors and retailers about consumers being more deal oriented and waiting.

There was the Amazon Prime deals day, which was strong that probably pulled some demand forward.

And then we'll see how the cadence works of consumer spending and also our promotional.

Speaker 3: of consumer spending and also how promotional e-commerce players are. But I'd say, you know, we're cautious, but not seeing any specific signs of a slow down, but, you know, we were managing our business, expecting anything could happen in this environment.

E Commerce players are but I'd say, we're cautious.

But <unk> not seen any specific signs of a slowdown, but we were managing our business.

<unk> been anything could happen in this environment.

Joey Levin: ... Thank you. Operator, next question.

Thank you all.

Operator next question.

Operator: Our next question will come from Tom Champion with Piper Sandler. Please go ahead.

Speaker 1: Our next question will come from Tom Champion with Piper Sandler. Please go.

Our next question will come from Tom Champion with Piper Sandler. Please go ahead.

Tom Champion: Hey, good morning, guys. Joey, can you just talk about the evolution of the business model at Angie? It was discussed a little bit in the note, but the movement away from lead gen to a marketplace, what does that mean? Can you expand on it? And then maybe for Chris, just to clarify the comment around the Angie buyback. That's the existing buyback, right? So the point that you're driving home is that you want to lean into it. It's a statement around timing. Any comments would be helpful. Thanks.

Speaker 5: Hey, good morning guys. Joey, can you just talk about the evolution of business model at Angie? It was discussed a little bit in the note, but the movement away from lead gen to a marketplace. What does that mean? Can you expand on it? And then maybe for Chris, just to clarify the comment around the Angie buyback, that's the existing buyback, right? So the point that you're driving home is that you want to lean into it. It's a statement around timing. Any comments would be helpful. Thanks. Thank you.

Hey, Good morning, guys. Joey can you just talk about the evolution of the business model at Angi.

It was discussed a little bit in the note, but the movement away from lead Gen to our marketplace. What does that mean can you expand on it and then maybe for Chris just to clarify the comment around the anti buyback that's the existing buyback right. So the point that youre driving home is that you want to lean into it it's a statement around timing.

Any comments would be helpful. Thanks.

Joey Levin: Sure. On lead gen to marketplace, it's very important to Angi. It's a big sort of rallying cry internally. What that means is going from acquiring a customer or a service request and moving that over to the service professional as quickly as possible and moving on. That is more akin to lead generation. There's nothing wrong with lead generation. It's just hard to build brand and loyalty, and drive what is another important feature for us, which is customers for life on Angi with that mindset. So what's changing is trying to drive more interactions on the platform and making those interactions on the platform richer, and building signs on the platform of which customers on both sides, homeowners and service professionals, do the best job and interact with each other most productively and rewarding those behaviors.

Joey Levin: Sure. On lead gen to marketplace, it's very important to Angi. It's a big sort of rallying cry internally. What that means is going from acquiring a customer or a service request and moving that over to the service professional as quickly as possible and moving on. That is more akin to lead generation. There's nothing wrong with lead generation. It's just hard to build brand and loyalty, and drive what is another important feature for us, which is customers for life on Angi with that mindset. So, what's changing is trying to drive more interactions on the platform and making those interactions on the platform richer and building signs on the platform of which customers on both sides, homeowners and service professionals, do the best job and interact with each other most productively and rewarding those behaviors.

Sure.

<unk>.

We agenda marketplace, it's very important to Andy is the big sort of rallying cry internally.

Speaker 10: We agenda marketplace is very important to Andrea to fix through rallying cry internally. What that means is.

What that means is going from.

Speaker 10: acquiring a customer, a service request, and moving that over to the service professional as quickly as possible and moving on. That is more akin to lead generation. There's nothing wrong with lead generation. It's just hard to build brand and loyalty and drive what is another important feature for us, which is customers for life.

Acquiring a customer service request and moving that over to the service professional as quickly as possible and moving on that is is more akin to lead generation.

Wrong with lead generation, it's just hard to build brand and loyalty and drive what is another important feature for us which is customers for life on angi with that mindset and so what's changing is trying to drive more interactions on the platform and making those interactions on the platform richer.

Speaker 10: on Angie with that mindset. And so what's changing is trying to drive more interactions on the platform and making those interactions on the platform richer and building signs on the platform of...

And.

Building signs on the platform.

Speaker 10: with customers on both sides, home owners, and service professionals.

Customers on both sides homeowners and service professionals.

Speaker 10: do the best job and interact with each other most productively and rewarding those behaviors.

Do the best job and interact with each other most productively and rewarding those behaviors.

Joey Levin: That's how I think a marketplace builds and grows upon itself, and I think in the past, we were a little too much lead generation, which was getting that first transaction and moving on, and now it's more get those transactions, those interactions, and those systems of reward happening on our platform. Just one, you know, more example that I referenced earlier, but that's the difference between just sending the homeowner's phone number to a service professional and having the service professional call them, to driving messaging and helping messaging back and forth on the platform and allowing them to contact each other, and less of the one-way transactions or one-way communications.

Speaker 10: That's how I think of marketplace build and grows upon itself. And I think in the past we were a little too much regeneration, which was getting that first transaction and moving on. And now it's more get those transactions, those interactions and those systems of reward happening on our platform.

How I think.

<unk> builds and grows upon itself.

<unk>.

In the past we were a little too much lead generation, which was getting that first transaction I'm moving on and now it's more get those transactions those interactions and those systems are reward happening.

On our platform.

Speaker 10: just one more example that I referenced earlier, but that's the difference between just sending the homeowners phone number to a service professional and having a service professional call them to driving messaging and helping messaging back and forth on the platform and allowing them to contact each other in less of the one way transactions or one way communication.

One.

More example that I referenced earlier, but.

That's the difference between just sending the homeowners phone number to a service professional and having a service professional call them, two driving messaging and helping messaging back and forth on the platform and allowing them to contact each other and less of the the one way transactions are one way.

Joey Levin: There's an many, many things in the roadmap and things that we've launched along those lines to improve that experience, and we're seeing the benefit of that in terms of transactions, monetized transactions per service request. But that is, that's the theme of what we're trying to accomplish.

Occasions.

Speaker 10: There's many, many things in the roadmap or things that we've launched along those lines to improve that experience. And we're seeing the benefit of that in terms of transactions, monetized transactions for service requests. But that's the theme of what we're trying to accomplish.

There is many many things in the road map and things that we've launched along those lines to improve that experience and we're seeing the benefit of that in terms of transactions.

Monetize transactions per service request.

But that is.

That's the theme of what we're trying to accomplish.

Christopher Halpin: Then, Tom, thanks for the question. On the buyback, yeah, our message was that we are going to be buying, obviously subject to price and liquidity levels, but that we are putting a plan in, just in relative to anticipating that question from investors.

Speaker 3: And then Tom, thanks for the question. On the buyback, our message was that we are going to be buying obviously subject to price and liquidity levels, but that we are putting a plan in relative to anticipating that question from investors. Thanks a lot guys.

And then.

Tom Thanks for the question on the buyback, yes, our message was that we are going to be buying obviously subject to price and liquidity levels, but that we are putting a plan in.

And relative to anticipating that question from investors.

Tom Champion: Thanks a lot, guys.

Thanks, a lot guys.

Joey Levin: Thank you. Operator, one last question.

Thank you operator, one last question.

Operator: Our last question here will be from Kunal Madhukar with UBS. Please go ahead.

Speaker 1: Our last question here will be from Canal Madhugar with UBS. Please go ahead.

And our last question here will be from Kunal <unk> with UBS. Please go ahead.

Kunal Madhukar: Hey, thank you for taking my questions and squeezing me in. A couple, if I could, one on Angi and one on Dotdash. So on the Angi side, what I'm seeing is, based on our math, is ads and leads revenue per monetized transaction, that declined about 11% on a year-over-year to about $40. Marketing costs declined only, you know, more modestly at, like, 8% to about $27.5. So can you talk about how the LTV to CAC is kind of changing within this dynamic of marketing costs not declining as much as the revenue?

Speaker 12: Thank you for taking my questions and squeezing me in. A couple if I quote one on Angie and one on .dash. So on the Angie side, what I'm saying is based on our map is ads and leads revenue per monetized transaction. That declined about 11% on a year over year to about 40 bucks.

Okay. Thank you for taking my questions and squeezing me in a couple if I could one on angi and one on dash.

So on the LNG side.

<unk> is.

Based on our math is absent leads revenue per monetized transactions declined about 11% on a year over year.

Up to about 40 Bucks.

Speaker 12: Marketing costs declined only more moderately at like 8% to about 27.5%

Marketing costs declined only modestly.

Modestly at like 8% to about 2007 and a half. So can you talk about how the LTV to CAC is kind of changing within the within this dynamic of marketing costs not declining as much as that.

Speaker 12: So can you talk about how the LTV to CAC is kind of changing within this dynamic of marketing costs, not declining as much as the revenue?

Kunal Madhukar: And then on the Dotdash side, the whole concept of, like, premium advertising was, you know, you going out and talking to advertisers on a one-on-one basis, and, you know, and selling them ads, high-intent ads or high-intent leads. How does the Amazon, the recent, agreement with Amazon... How does that kind of change, that view, or maybe it doesn't? Thank you.

Revenue.

Speaker 12: And then on the dot dash side, the whole concept of like premium advertising was, you know, you going out and talking to advertisers on a one-on-one basis.

And then on the Dod side.

The whole concept of like premium advertising was.

Youre going out and talking to advertisers on a one on one basis.

Speaker 12: and you know, and selling them ads, high intent ads, or high intent leads. How does the Amazon, the recent agreement with Amazon?

And.

And telling them pads high intent ads are heightened leads up how does the Amazon.

Agreement with Amazon.

Yes.

Speaker 12: How does that kind of change that view or maybe it doesn't?

How does that kind of change that view or maybe it doesn't.

Joey Levin: You broke up for a second, Kunal, on the, the last question. I think I got it. You're, you're talking about the announcement of Amazon around Decipher and, is that what you're referring to?

Speaker 12: You broke up for a second. And so now on the last switch, I think I got it. You're, you're typed out the announcement of the Amazon around decipher. And is that what you're referring to? On the publisher cloud, the Amazon BSP, that they just announced at the, at the unboxed 2023 column.

Thank you you broke up for a second.

So now on the last question I think I got it.

There are times that the announcement of the Amazon around decipher.

Is that what you're referring to.

Kunal Madhukar: On the publisher cloud, the Amazon BSP, that they just announced at the Unbox 2023 conference.

On the publisher cloud Amazon DSP.

They just announced.

<unk> 2023 conference.

Joey Levin: Yeah. So and D/Cipher, Dotdash Meredith being a part of that. It just, I think I can get both those questions, but the... What that means is it's essentially easier for an advertiser in Amazon's retail media network to access our inventory, and to access our inventory on kind of any basis. But that we think is a huge win for Dotdash Meredith, a huge validation of the work we're doing on D/Cipher and a long-term benefit to CDM, if we can capture those dollars now that the sort of infrastructure and endorsement is in place there. I hope that answers the question, but if not, we can come back to it, or, and Chris, you can add more to that.

Yeah, So just decipher dot that Meredith being a part of that.

Speaker 10: Yeah, so, and decipher.as Meredith being a part of that. And just, I think I can get both those questions. But what that means is it's essentially easier for an advertiser in Amazon retail media network to access our inventory. And to access our inventory on kind of any basis, but those that.

I think I can get both those questions but.

What that means is essentially easier for an advertiser in Amazon retail media network to access our inventory.

And to access our inventory on kind of any basis, but.

That that.

Speaker 10: That we think is a huge win for dot dash meridus, a huge validation of the work we're doing on decipher and a long-term benefit to CDM if we can capture those dollars now that's the sort of infrastructure and endorsement is in place there.

That we think is a huge win for dash Meredith a huge validation of the work we're doing on decipher and.

Long term benefit.

Two CDM, if we can capture those dollars now that sort of infrastructure and endorsement as it is in place there.

Speaker 10: I hope that answers the question, but if not, we can come back to others and Chris, you can add more to that. But on Angie, the revenue from monetized transaction is...

I hope that answers the question, but if not we can come back to weather and Chris you can add more to that but.

Joey Levin: But on Angi, the revenue per monetized transaction rate is down right now. I think that we've in some areas had not optimized price, meaning we had pushed too far on price, and we've come back on price in certain areas. And so there is a question of rate, but there's also transactions per service request. And so one of the things that's happening as we pare back marketing and demand more out of existing channels, both in terms of return and in terms of quality, we get more accepts per service request. And same is true as we're getting service professionals that are more engaged, they're engaging with more service requests, and therefore both of those things lead to driving more accepts per service requests.

Christopher Halpin: But on Angi, the revenue per monetized transaction rate is down right now. I think that we've in some areas had not optimized price, meaning we had pushed too far on price, and we've come back on price in certain areas. And so there is a question of rate, but there's also transactions per service request. And so one of the things that's happening as we pare back marketing and demand more out of existing channels, both in terms of return and in terms of quality, we get more accepts per service request. And same is true as we're getting service professionals that are more engaged, they're engaging with more service requests, and therefore both of those things lead to driving more accepts per service requests. And so, revenue per SR can improve, even if each individual transaction is worth less. I hope that answers the question.

Angie.

<unk>.

Revenue per monetize transaction.

It is.

Speaker 10: rate is down right now. I think that we've in some areas had not optimized price, meaning we had pushed too far on price and we've come back on price in certain areas. And so there is a question of rate, but there's also transactions per service request. And so one of the things that's happening as we pair back marketing and demand more out of existing channels both in terms of

Right. It is down right now I think that we in some areas.

It had not optimized price, meaning we had pushed too far on price and we've come back on price in certain areas and so there is a question of rate, but there is also <unk>.

<unk> per service request and so one of the things that's happening as we pare back marketing and demand more out of existing channels. Both in terms of.

Speaker 10: return and in terms of quality, we get more accepts for service request. And same is true as we're getting service professionals, they are more engaged, they're engaging with more service requests and therefore both of those things lead to driving more accepts for service requests. And so revenue per se can improve, even if each individual transaction is worth less.

<unk> return and in terms of quality.

We get more except for service requests.

The same is true as we're getting service professionals that are more engaged they are engaging with more service requests and therefore.

Both of those things lead to driving more except for service requests and so revenue per <unk> can improve even if it's each individual transaction is worth less.

Joey Levin: And so, revenue per SR can improve, even if each individual transaction is worth less. I hope that answers the question.

Speaker 10: I hope that answers the question.

I hope that that answers the question.

Yeah.

Kunal Madhukar: Sure. Okay, go ahead.

Sure.

Okay got it.

Joey Levin: No, go ahead.

No go ahead.

Kunal Madhukar: No, just wanted to follow it up in terms of the marketing costs. So the marketing cost did not decline as much, so how does that impact the LTV to CAC dynamic within your plans?

Speaker 12: Now just just wanted to follow it up in terms of the marketing cost. So the marketing cost did not decline.

No just just wanted to follow up in terms of the marketing costs are the marketing cost did not decline as much. So how does that impact the LTV to CAC.

Speaker 12: So how does that impact the LPV to cat dynamic within your...

Dynamic.

Within your plans.

Joey Levin: Yeah. LTV to CAC is heading in the right direction, and that is, the transactions that we are retaining are more valuable. There are some short-term things that are in there, which Chris and I referenced earlier, which is the channel that we talked about in Q2, where we made some meaningful adjustments there in the name of quality, and that's taking a longer time to ramp back up, and so that has some short-term impact in the economics. But generally, LTV to CAC is heading in the right direction.

Speaker 10: Yeah, LTV to CAC is heading in the right direction and that is the the the transactions that we are retaining are more value.

Yeah, LTV to CAC is heading in the right direction and that is.

<unk>.

The transactions that we are retaining our more valuable.

There are some short term things that are in there, which Chris and I referenced earlier, which is the channel that we talked about in Q2, where we made some meaningful adjustments there in the name of quality and that's taking a longer time to ramp back up and so that has some short term.

Speaker 10: There are some short-term things that are in there, which Chris and I referenced earlier, which is the channel that we talked about in Q2, where we made some meaningful adjustments there in the name of quality, and that's taking a longer time to ramp back up, and so that has some short-term.

Speaker 2: impact in the economics, but generally, LTV2CAC is heading the right direction. Yeah, and we also had some brand, specifically PV ramp up year over year in that, in that number you're calculating. So I think we feel good about the trends and,

Impact in the economics, but generally.

<unk> is heading in the right direction and we also had some brand specifically TV ramp up year over year in that and that number you're calculating so I think we feel good about the trends and.

Christopher Halpin: Yeah, and we also had some brand, specifically TV, ramp-up year over year in that number you're calculating. So I think we feel good about the trends and would, you know, just say the metrics that you're backing into wouldn't be giving the full picture. And then on the Dotdash question, did we answer where you were coming from?

Joey Levin: Yeah, and we also had some brand, specifically TV, ramp-up year over year in that number you're calculating. So I think we feel good about the trends and would, you know, just say the metrics that you're backing into wouldn't be giving the full picture. And then on the Dotdash question, did we answer where you were coming from?

Speaker 3: would just say the metrics that you're backing into aren't wouldn't be given the full thing.

Wood wood.

Just say.

The metrics that you are backing into art wouldn't be giving the full picture.

Speaker 2: And then on the dot dash question, did we answer where you were coming from?

And then on the dots ash question.

Did we answer where you were coming from.

Kunal Madhukar: Yeah. Thank you.

Yes. Thank you.

Joey Levin: Perfect.

Speaker 2: It's just a dad one more ground that is to take you clear. You can see monetized transactions for SR going up. We talked about that in the letter that's been a trend. And that is a counter to revenue for monetized transactions. Right, right. Well, thank you, everyone. Thank you, operator. Thank you, everyone, for your questions. And have a great morning. Thank you all.

Christopher Halpin: Just to add one more comment on that, just to make it clear, you can see monetized transactions for SR going up. We talked about that in the letter. That's, that's been a trend, and that is a, is a counter to revenue per monetized transaction.

Perfect.

To add one more thing on that is to make it clear you can see monetize transactions, perhaps are growing up we talked about that in the letter that's been a trend.

That is.

Counter to revenue or monetize transact right right.

Joey Levin: Right. Right. Well, thank you, everyone. Thank you, operator. Thank you everyone for your questions, and have a great morning.

Joey Levin: Right. Right. Well, thank you, everyone. Thank you, operator. Thank you everyone for your questions and have a great morning.

Well. Thank you everyone. Thank you operator, thank you everyone for your questions and have a great morning. Thank you all.

Christopher Halpin: Thank you all. Bye-bye.

Tom Champion: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Speaker 1: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your line.

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