Q3 2023 Angi Inc Earnings Call
To turn the conference over to Christopher helping CFO and C. O O of IAC. Please go ahead.
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 <unk>, Inc.
Similar to last quarter supplemental to our quarterly earnings releases IAC.
<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.
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. 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 and Angi <unk> 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.
Thank you Chris Good morning, everybody. Thanks for spending time with us this morning.
Nice 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.
Adapt ash 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.
We have an attractive and growing audience of unique high performing ad product to sell and industry, leading e-commerce capabilities.
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.
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.
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.
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 satisfaction 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 we believe that long term, how we're 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.
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.
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 then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys and 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 <unk> with Oppenheimer. Please go ahead.
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.
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.
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.
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 Yan Jin on the discretionary side. Thanks.
Sure. Thanks, Jason maybe I'll, let Chris do the <unk>.
Guidance question.
But but.
Overall.
And the macro.
I still think that what's happening to the business today is much more our hands than 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.
And that does.
Take a hit out of revenue.
From a.
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.
But the changes that we're making obviously have taken us down.
<unk>.
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 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.
<unk>.
It pros 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.
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.
I think as most guiding with what's happening on on revenue in the business yes.
Yes.
A couple of elements on that we did guide to the low end of our EBITDA range of 100 to 130 last quarter.
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.
Some of those had a larger impact in the short term than we 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 in and.
Our scene that happens so.
It is a for AMG.
The relatively short term impacts of the actions taken nothing on margin.
Degradation relative to your question.
For Dot Dash 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 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 the bigger story right now as we anticipated and had been pretty clear with the market that we expected a a.
Much more solid Q4 environment for advertising this year than last year.
And then really last holiday season, the market totally froze up.
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 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.
We'll 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.
Versus plan.
Advertising revenue is lower.
That goes to the bottom line.
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.
Thank you.
Thanks, Jason Operator next question.
Our next question will come from Brent Thill with Jefferies. Please go ahead.
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.
Sure just one correction, Brian, but it's 14 million shares in the.
And the anti authorization.
Ah.
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 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.
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.
Look and see where things settle out and that's something that we will continue to evaluate.
Yes.
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.
Yes.
The slowdown there has been driven by predominantly the consumer side.
We had a solid quarter, especially in enterprise there in the third quarter.
Excited about Brad Brad Wilson, the CEO and the management team. He's brought in it is 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 <unk>.
Consistent double digit grower and then we've got opportunities on marketing that we've talked about consistently for the last few quarters.
So.
We are.
They are still.
Working on repositioning the platform and getting the marketing going we think we will see steady 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.
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.
Thanks, Brent operator next question.
Our next question will come from John Blackledge with TD Cowen. Please go ahead.
Great. Thanks on DBM digital you provided new engagement metrics, including core Sasha 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.
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 so seeing those grow is nice and seeing those accelerate 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. So thats notwithstanding that there is not a lot of news and entertainment right now and so thats that.
Exciting place to be.
Yes.
Add for context.
This traffic we thought is good information for investors to highlight.
The drivers behind the business.
One thing we flag as you.
You always had core the 19 key brands, we're investing actively behind.
The total sessions as the whole portfolio and the difference.
Which is the spread of noncore is what drove the.
Decline in total sessions.
Versus a growth in core it really comprises.
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 the.
Advertising sales for that we acquired in the deal. So we expect those noncore sites to continue to.
Two a trip to probably a de minimis level.
So that core and total will be the same at some point for.
For a sense of those trends.
The core properties represented 67% of total sessions in the third quarter of 'twenty two.
<unk> 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.
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.
That part of the business.
Yes, it's really the continued execution.
By Scott Bash Meredith on our 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.
And we.
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 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.
Across categories.
This.
It is overwhelmingly goods commerce.
Consumers buying products that is driving that we have relationships with all the big retailers.
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.
We expect that to be second derivative positive for a while including going into this holiday season, we're excited about the integrations there.
And performance marketing will be.
Key tailwind to monetization per session.
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 where we are.
We're capturing that.
Overall trends.
Thank you. Thank you John.
Operator next question.
Our next question will come from Justin Patterson with Keybanc. Please go ahead.
Great. Thank you very much good morning.
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 job. Thank you.
Yes so.
Service provider experience is.
I just want to highlight again some of the work that's been done here.
It is.
Talk about retention a lot because we got so I think last quarter I talked about it but 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.
Anecdotally the interactions, we're having with service professionals.
In tone improved meaningfully and they see that because.
Presume and we can measure this to some extent and they can measure this better than us that they are 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 there.
They are happier.
And as I said multiple times pros.
They are happier and more engaged make homeowners happier and more engaged.
The key fundamental element of what a homeowner pumps to our platform or is to match with the service professional and the more.
Whether they match with the service professional at all is a huge.
Cliff than the more service professionals they 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 improve right now.
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 the <unk>.
<unk> action more heavily towards messaging still our interaction between homeowners and froze relies heavily on the telephone.
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.
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.
And so we're taking a look at all of our marketing channels, which <unk> 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.
And I'll just add one more thing on that which is.
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.
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.
For each other and for our platform.
Thank you.
Thank you Justin.
Operator next question.
Our next question will come from Ross Sandler with Barclays. Please go ahead.
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.
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.
Hello.
Okay.
Thanks Ross.
No.
When you compare to the market and think about overall.
Digital advertising growth at.
At Dot Dash I would blend.
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%.
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.
<unk>.
The monetization going on versus third quarter of 'twenty, two when we still had.
Or probably over AD load in some of the narrative properties.
And some.
Suboptimal traffic, so a little bit as a comp issue but.
Overall, we view unit is down three five and we expect those numbers.
To be improved in Q4, even with.
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.
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 that.
<unk> talked to.
24, we're not providing guidance yet, but when you look at the sessions, which you highlight.
Core should continue.
To grow even better.
<unk> 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 we expect that to continue into next year.
So traffic will be a tailwind a 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.
<unk>.
Digital advertising revenue was flattish and in performance marketing.
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.
Our next question will come from Brian Fitzgerald with Wells Fargo. Please go ahead.
Thanks, a couple of follow ups on DM on decipher it sounds like Theres been an occurred in response as cookie deprecation kicks off in 24, where do you think penetration of that product could go for your general interest sites and and how are you thinking about potential revenue uplift there for both the general interest.
And total DBM digital.
Then.
Any further thoughts on AI and defending copyrighted evergreen content from DBM. Thanks.
Sure.
John.
Decipher.
Thank you 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 deprecated and so the market.
Is sort of forced in that direction regardless.
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.
And.
We expect that to really help overall dot that Meredith.
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.
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.
In terms of.
AI.
Look we are going to defend our.
Content, we've been clear about that and I think that Theres, a theres one sort of.
Small and relatively straightforward question that needs to be answered that.
Billy if it's answered in the way we expect it will we'll get everybody to the table to get to.
<unk> 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 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.
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.
Thanks, Joe I appreciate it.
Thank you operator next question.
Our next question will come from <unk> <unk> with Citigroup. Please go ahead.
Hey, good morning, guys two questions first one on Bob fashion.
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 on the consumer, especially in discretionary and.
I know the e-commerce advertising and performance is really important.
You guys have any insight there specifically.
Maybe different I know you talked about the soft softer October those sound relatively hopeful around holiday just any insight on that and then on AG.
So on the roofing business Europe.
Paring 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.
Yes.
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 calm 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.
I 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.
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, Angie, but in terms of the business that we're doing there and want to be doing there I think thats all in.
In a healthy place and where we want it to be.
And we're happy to close the roofing chapter in and move on from there where do you figure out in the first question, Yes, and just 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, but given materiality will not be for IAC. So in order to keep the angi financial's consistent between what Angie will put out.
Standalone and what is rolled up in <unk>.
IAC.
We will move roofing on a historical basis into emerging and other.
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 in other.
And then we'll be a discontinued ops for Angie I am sure. We will 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.
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 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.
What is.
What is hard is that.
The cadence.
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 and the right holiday present, because they would run out.
So things got moved up to November last year consumers weighted.
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.
E Commerce players are but I'd say, we're cautious.
But not seen any specific signs of a slowdown, but we're managing our business.
<unk> anything could happen in this environment.
Thank you.
Operator next question.
Our next question will come from Tom Champion with Piper Sandler. Please go ahead.
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 answers you buyback thats 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.
Sure.
<unk>.
We agenda marketplace, it's very important to Andy is the big sort of.
Rallying cry internally.
What that means is going from.
Acquiring a customer service request and moving that over to the service professional as quickly as possible and moving on that.
Is more akin to lead generation.
Wrong with lead generation, it's just hard to build brand 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.
And.
Building signs on the platform.
Which.
Customers on both sides homeowners and service professionals do the best job and interact with each other most productively and rewarding those behaviors, that's how I think.
<unk> 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 I'm moving on and now it's more get those transactions those interactions and those systems are reward happening.
On our platform.
One <unk>.
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.
<unk>.
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 there.
The theme of what we're trying to accomplish.
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.
Just relative to anticipating that question from investors.
Thanks, a lot guys.
Thank you operator, one last question.
And our last question here will be from Kunal <unk> with UBS. Please go ahead.
Okay. Thank you for taking my questions and squeezing me in a couple if I could one on angi and one on dash.
On the LNG side.
<unk> is.
Based on our math is ads leads revenue per monetized transaction, that's declined about 11% on a year over year.
Up to about 40 Bucks.
Marketing costs declined only more.
Modestly at like 8% to about 27 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.
That revenue.
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.
And then on <unk>.
And telling them pods high intent ads are heightened leads up how does the Amazon the recent agreement with Amazon.
Yes.
How does that kind of change that view or maybe it doesn't.
Thank you you broke up for a second.
Now on the last question I think I got it.
There are times that the announcement of the Amazon around decipher and.
Is that what you.
<unk> on.
On the publisher cloud Amazon DSP that they just announced at the <unk>.
<unk> 2023 conference.
Yes, so <unk> heard that Meredith being a part of that.
I think I can get both those questions.
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 that.
That we think is a huge win for diverse Meredith a huge validation of the work we're doing on <unk> and.
Long term benefit.
Two CDM, if we can capture those dollars now that sort of infrastructure endorsement as it is.
In place there.
I hope that answers the question, but if not we can come back to weather and Chris you can add more to that but.
Angie.
<unk>.
Revenue per monetize transaction.
Is is.
Right.
Is down right now I think that we in some areas.
It had not optimized price, meaning we have pushed too far on price and we've come back on price in certain areas and so there is a question of rate, but theres 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.
<unk> return and in terms of quality.
We get more except per service request.
And 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 it's each individual transaction is worth less.
I hope that that answers the question.
Yeah.
Sure.
Okay got it.
No go ahead.
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.
Dynamic within within your plans.
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 and 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.
<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.
Wood wood.
Just say.
The metrics that you are backing into art wouldn't be giving the full picture.
And then on the dots ash question.
Did we answer where you were coming from.
Yes. Thank you.
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 transit right right.
Well. Thank you everyone. Thank you operator, thank you everyone for your questions and have a great morning. Thank you all.
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