Good morning, everyone. Glenn Schiffman here, and welcome to the IAC and Angi Inc. First Quarter Earnings Presentation. Joining me today is Joey Levin, CEO of IAC and Chairman of Angi; and Oisin Hanrahan, CEO of Angi Inc. Similar to last quarter, supplemental to our quarterly earnings releases, IAC has also published its quarterly shareholder letter. We will not be reading the shareholder letter on this presentation. It is currently available on the Investor Relations section of IAC’s website. I will shortly turn the call over to Joey to make a few brief introductory remarks, and then we’ll 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 such statements. These forward-looking views are subject to risks and uncertainties, and our actual results could differ materially from the views expressed here today. Some of these risks have been set forth in IAC’s, Vimeo’s, and Angi’s first quarter press releases and our respective reports filings with the Security and Exchange Commission. 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 this call. I'll refer you to our three press releases, the IAC shareholder letter, and again, to the Investor Relations section of our websites for all comparable GAAP measures and full reconciliations of all material non-GAAP measures. Now let's jump right into it. Joey?

Thank you, Glenn. Thank you all for joining us. I know it’s a very busy week for many of you. I'm now almost participating in as many of these causes as some of you are between match and Angi, and IAC, Vimeo. And so I appreciate the work and effort everyone's putting into be here. Grateful to be here, grateful to be alive, and healthy and well and grateful for a lot of positive momentum in our businesses right now. We had a really strong Q1 and we have a really great outlook for the businesses for our leaders for how our customers are interacting with our businesses. It feels like good solid positive momentum, and that's always a good place to be to start the year. I want to just especially thank Glenn for his work in getting prepared for this, and again, not just preparing all of us, but also Anjali and Narayan for their first call, who I think did a great job. And also as you know, he's acting as CFO of Angi. So, he's got a few full time jobs right now and doing a wonderful job and prepping Oisin who joins us for the first time. So, I want to welcome Oisin who is just doing phenomenally in his first, I don't know, few weeks, feels like months maybe, on the job, moving at a breakneck pace to get things going in the business, change things, grow things and start to take some risk with a big, big ambitious vision. I'm sure you'll have plenty of questions for him, and so I don't want to get in the way of that, but we're in a fun place right now, and it's good to be here, good to be here with all you. So, let's get to those questions.

Great. Our first question will be from Cory Carpenter at JPMorgan.

Great. Thanks for the question. I think Joey is right. Oisin, we're looking forward to hearing from you, so hoping you could start off with your broader vision for Angi. Key priorities, maybe, you know what changes, what stays the same. And then a follow-up for Glenn, just around the rebranding, why was now the right time? And could you unpack some of the investment areas you talked about in the letter? Thanks.

Thanks so much, Cory, great to be here. I'm really excited to share the vision for Angi. I'll start at the very top. So, this is a $500 billion market. And I think we've talked about it, we've alluded to it before, but we've never really staked our claim to it. We've talked about the take rate model. We've talked about all the different ways that we can play in it, but I think today, what we're doing is, we're saying, we're going to shift away from thinking about this as a percentage of a percentage. And instead, we're going to think about the whole market. And the reason that's important are the two things I'm going to talk most about today, which is what we're doing for the customer and what we're doing for the pro? If you think about what the customer really wants, when they come to Angie, and say they want to get a [toilet replaced], or they want to get a deck installed, what they want is to get the job done. And that's the critical thing. It's not they want to be matched with a pro and have a step away and say, so long thanks. They actually want to get the job done. And what we're seeing right now, where we offer that service, where we offer the ability for the customer to get the job done, we're seeing really, really strong momentum. You've seen the results on Angi Services, 55 million in Q1 growing 66% a year. The most significant part of that is that we're growing without spending on consumer marketing. So, we're growing that off of the demand we've got in our marketplace business, off of the demand we've got in the leads and ads business. And that's a really significant shift. On the pro side, it's about ROI for the Pro. It's about how we help them grow the business? Whether it's a pro at the beginning of their lifecycle where they're starting out, and they're trying to make payments on their F150, whether it's a pro in the middle of their life cycle, where they're trying to buy a house, and they're trying to get a down payment for a pro towards the more mature part where they're trying to hire more people, and they're trying to take the Thursday or Friday afternoon off to hang out with their grandkids, all of them are turning to us to help grow their business. And that's a pretty significant shift, we're going to make. Those two things, we're going to help our consumers get the job done. And we're going to help our Pro’s grow their business. And within all of that we're going after the $500 billion – a $500 billion account.

On the back of that vision, on the back of that excitement, and on back of that opportunity, we're going to invest. We talked about in the letter, a couple of different examples when we saw, you know, different things inside of Vimeo, different things inside of Dotdash that caused us to get excited and enthusiastic about going all in. And that's what we're doing here against the vision for Angi Services and the vision for making it very simple to do tasks and jobs on your home. In terms of how that translates into numbers, we talked about a $60 million investment. This year in Angi Services, recall we invested about $40 million last year in Angi Services. So, on a year-over-year basis, obviously that's 20. We talked about in the letter, the short-term this year, investment and financial impact on the rebrand is $40 million. And then you'll also see some expenses against SP acquisition, SP retention, SP engagement, and all the SP initiatives – sorry Service Professional initiatives that Oisin talked about. We're trying to change that dynamic and that ROI dynamic for the service professional. So that'll be a significant investment on a year-over-year basis. To help you with the quarterly cadence around that, we did about 23 million of EBITDA in the first quarter. We think that's about the number for the next couple quarters, second, third, and fourth. And then we'll revisit obviously how we think about 2022 as we get closer to 2022. But again, on the back of the vision on the back of redefining the TAM, on the back of redefining our opportunity, we were looking at single-digit margins this year, and in all likelihood, single-digit margins for next year.

Our next question will be from Brent Thill at Jefferies.

Thanks. Good morning. Joey, Dotdash accelerated again 67%. You said in the letter, it's underappreciated. I'm curious if you can walk through the underappreciated component that you see, and as a follow up, I'd love to hear a little more about Care and what the next chapter is there?

Sure. So, there's really two big things happening at Dotdash right now that I think are leading to what is the current performance and what I think is a sustainable future outperformance relative to other publishing businesses. And the reason I say underappreciated is, maybe it's our own insecurities. But people don't talk about Dotdash as much they talk about other publishing businesses. And that's okay. But the thing that is, the two things that are working for the business is, one it performs for advertisers. So, we've talked about this top 25 advertiser’s concept in Dotdash before. I think of the Top 25, those people are spending in 2021, Q1 of 2021, that cohort in aggregate is spending a 110% in 2021, when did in 2020, I think that was like 103% in 2020 to 2019.

That's correct.

The fact that those advertisers are coming back – and you just don't typically see that in a publishing business – advertiser publishing business, because advertisers come in, and now based on their budgets and what they're doing, but ours are recurring there, because the content performs, and the reason the content performs, this gets to the second point is because it has real utility, and it has real context. So, we're not guessing what somebody is interested in, and we don't need any personally identifiable information. We know that somebody who's making lasania is making – was asking about making lasania is making lasania. And the people who want to sell products to people who are making lasania can reach them at that moment when they're cooking, when they're in the kitchen, when they're getting ready to go shopping, to make a meal. And same is true for planning a trip or for thinking about their healthcare. And when you see the rest of the market, what's happening is there was a large portion of the market that was using other content as an excuse to aggregate personally identifiable information and then use that to triangulate what somebody might be interested in. That is a very effective way of figuring out what people might be interested in. And that can lead to performance, but what we're seeing in the market right now is the platforms and individuals are making decisions that say that trade-off isn't a fair trade off anymore. It's just not a trade-off people are willing to do anymore. And what happens is now the advertisers, who were spending on that model, need another model to spend to know where to reach users who may be interested in their products. And they can do that now through…

Thanks.

So, our next question will be from Justin Patterson at KeyBanc.

Great, thank you. For Oisin, welcome to the IAC and Angi calls. Could you talk about the opportunities you see from unifying Angi under one brand? Likewise, SP capacity has long been a challenge for Angi, does it make sense for you to take a more aggressive approach around controlling the supplier relationship like Zillow and others have done? And then for Glenn, given the past experience with transitions from about dotcom and Service Magic, what's your expectation for when we could see that Angi brand and domain changes switch from a headwind to a tailwind?

Thanks, Justin, great to be here. I'll start with brand question. So, if an alien came down from space tomorrow, and decided to hang out with us, I'm talking about Home Services and home improvement. And they looked at our brand chart. And then they looked at our org chart and saw three customer service teams, three product teams, three operations teams, three pro acquisition teams, they would either think that we are incredibly smart for our brand is a work in progress. And I think we've got a huge opportunity to pull it all together under a single brand. A huge opportunity to focus on the problem that the customer actually faces, which is to get the job done, and the problem the pro faces, which is to grow their business. And you know this from [slicing financials] and looking at other companies, there's only so many ways you can segment the business. And today we're segmenting by brand, but that's not what the customer cares about. What the customer cares about is getting the job done. And that means segmenting by verticals. The customer that comes into you that wants to get their toilet repaired, the customer that comes into you that wants to get a deck replaced, the customer that comes in to you that wants a bathroom remodeled. At that moment in time, they don't care about the other services, and they care that you've got a great amazing experience in that particular category. So, by focusing on a particular brand, instead of segmenting all those teams that I just talked about, we can segment by category. We can segment by vertical and we can point teams at saying how do we take our TV mounting business from a $30 million $40 million business to a…

And to answer your question on headwinds with the brand, headwinds and tailwinds are a good way to think about the year, frankly. We think the brand changed. The brand unification will probably create a headwind for the entire year, maybe into first quarter of 2022, we will see. The supply constraint, obviously, is also a slight headwind. And then some of our comps may be a slight headwind. But the massive tailwind we have is the Angi Services business. And notwithstanding the tailwinds, sorry, the headwinds of which I spoke, we think we still hit the revenue numbers that we talked about for this year, maybe even a scooch higher. So, as we look into the second quarter, I think we're looking at probably mid-double digits, maybe a little bit lower in terms of second quarter revenue growth, in terms of third quarter, again, mid-double digits in the fourth quarter, again on the back of Angi Services, on the back of hopefully some of the supply constraints lifting and the more muted effect of this brand change will pierce through 20% we think and accelerate into next year. Now, the path will not be linear. And with the monthly metrics you'll see continued volatility. For example, May last year you recall in April, we were down what 2%, year-over-year last year. In May, we were up 15%. So, I think you'll see a May [up print turns] our monthly metrics around, you know, 10%, probably June 10%. But we'll average again for the quarter, that mid-double-digit and then accelerate from there. We're also seeing, you know, potentially wonkiness, in our underlying metrics where I think you could see SRs decline in May. SRs declined in June, SRs declined in the third quarter, but again, given we are servicing our customers a lot better, you're going to see monetized transactions go up. And remember, we get paid on monetized transactions. We don't necessarily get paid on SRs. And that's what we're doing on our investments in SP acquisition, retention, and engagement. And that's what we're doing with Angi Services. We're kind of changing that dynamic under Oisin’s leadership.

Our next question is from Ross Sandler at Barclays.

Hey Joey, just going back to Dotdash, so the 1Q and the April run rate is obviously robust and both the one-year and the two-year stack, accelerating, and digital advertising is on fire right now. So, I guess can you put some numbers around how we should think about growth for the balance of the year 2Q and beyond as you get to the tougher comps later this year? And do you need to build out revenue beyond that top 25 you mentioned. And then lastly, there's been a lot of M&A recently with Yahoo and AOL trading and private equity, now that Dotdash is kind of firing on all cylinders, as it changed your thinking around the appetite for larger versus, kind of the more, you know, smaller kind of vertical tuck-ins that you’ve done for that segment?

Sure, Ross. I’m going let Glenn do the growth rates, and I'll cover the other two. So, on beyond the top 25, yes, absolutely, we have to build that out of course. We are, but I think there's two areas to think about that. When we think about the top 25, that's like direct sold through relationships, premium advertising, and premium pricing. There's also the private marketplace, and there's also just kind of everything else. And some of that stuff is, and sorry, and then separate from that there's the performance marketing, which we now break out separately. A number – the ads below premium are – a lot of that is automated. So, people come in and out of the market relatively frequently. And the work for us is to move those people into a direct relationship and to at a higher price and more guaranteed inventory. And that is definitely to work for us to grow that top 25 just are talking about the top 50. And I don't actually know that off the top of my head in that, but that's something that we should start to talk about are the top 100 or the top 500 whatever, we get to there. And then the performance side, that I think is a fantastic business. You're right, that everything's on fire, it's been on fire for a little while. Performance has been a big beneficiary of that. I think those growth rates probably are not sustainable forever. I think that's going to decelerate, just with the amount of volume, I think the amount of – people are going to go outside, again, people are going to start doing things in real life again. And I think that those growth rates will come down somewhat. But we still have…

Yeah, and remember Ross, we're still an attacker, we're still not number one in any of these categories. And they are very large categories. Each of the categories in which we compete, are tens of billions of dollars in size. So, there's a fair amount of running room. In terms of the revenue cadence, you know, I'll point to two statistics 9 out of last 11 quarters greater than 20% revenue growth; 5 out of the last 8 quarters, greater than 30% revenue growth. I think the advertising growth will decelerate towards – as we go through the year. Obviously, we're enjoying strong economic times strong ad rates right now. And a favorable comp last year, as you recall, in the second quarter – in the first quarter and into the second quarter, every company tapped the brakes on variable expenses and slammed the brakes on advertising expenses. So, we'll see a deceleration throughout the year. And then on the performance-based marketing business, we obviously flocked what nearly 100% growth in this quarter – that will naturally decelerate, where again, we're comping the COVID behavioral shift when more people were online, and more people were transacting, online. So, I think you'll see a steady deceleration, but we feel confident that this business is in north of 20% grower for as far as the eye can see at these attractive margins.

Our next question will be from Kunal Madhukar at Deutsche Bank.

Thanks Mark. Thanks for taking the question. Couple if I may? One, I was intrigued by the by the chart that you had in the letter where you were talking about like frequency and how that kind of changes with the fixed price experience. And then, you know, at the top of that chart was member with [apps], which was like almost seven times, was wondering, you know, that would almost suggest that, you know, for every service request that the customer could have had in their household, they are coming to Angi. So, you know, from that it flows, you know, in terms of the, you building liquidity is how much of those service requests are you able to fulfill now? And as you invest another 60 million in liquidity throughout the year, how much more will you be able to do by the – let's say by the end of this year? Thank you.

Kunal, I’m going to let Oisin answer this one, but I do want to say one piece, which is you’re right. We've talked about that we think the homeowner does maybe 6 to 8 jobs a year and so when you look at that – the member with the app doing 6.9 jobs with us that could be all them, but one thing that is – that we believe is possible and that we may be seeing as numbers, but it's very hard to know for sure, is that homeowners can do a lot more than jobs or would or should do a lot more jobs and the number that they are doing in a year. And the reason that's the case is because the process is unpleasant. Not just our process, the category in general is unpleasant. I was talking to a reporter yesterday who used our product and was surprised that after doing a fixed price to fix his gutters, nobody came into his house or knock on his door and said, okay, now you got to pay me more money, or now it turns out, you got to change this other thing or fix this other thing. The default experience in the category is one where there's a lot of haggling, there's a lot of hassle, there's a lot of inconvenience. And so, when you look at a job to get done, you frequently just don't do it, because you don't want to go through that. We think that if we deliver the experience that we have been delivering and that we think is possible in a lot of categories that the number of jobs that homeowners will do will increase in aggregate. And then what portion of that we get, I don't know, but we do think that's possible. When you change the default, you know, it's a strange category with a default experience is to be unpleasant to get hosed or get inconvenienced in some way. We're going for a default experience that is exactly what you'd hope it would be exactly what you believe it should be would be pleasant. And if we can pull that off, which we're doing at a relatively small scale, if we can pull that up, we think that is transformational. Go ahead Oisin.

It sounds hard when you say it. To get the job done at a price that's fair for the customer, and at a price that delivers ROI for the Pro, it should be easier, but it's hard. And I think that's why we're so proud of this chart this, this graph in here. I'll just walk through it, so we're all we're all talking the same thing. On the left hand side of this, what you can see is what the repeat rate is for a consumer if they come into our traditional service request business. So, that's where they come in, they submit a lead, they repeat 1.8 times in the first 365 days, so in the first year. To the right of that, you've got three different segments where the consumer comes in and instead of having a service request as their first booking, or their first experience, they have a full Angi Service job. So, they come in, they go through the service request path. But at the end of that path, they actually take out their credit card and they make a booking and Angi Services business takes over, fulfills that booking, sends the pro to their home, pro does a great job, we pay the Pro. You see three different segments there. When that happens, repeat goes from 1.8 to 3.3. We've also layered on what happens when someone becomes a member. So, in that checkout flow, we also offer the ability for the consumer to become a become a member for $30 a year, you can get up to 20% off a number of Home Services, a number of our services, and when you see that happen, you get to a repeat rate of around 5.8 in the first year. We've got about 100,000…

And Kunal let’s have some fun with numbers, as I enjoy doing. 32 million service requests last year, from 18 million homeowners, that's how we get to the 1.8. If we can take on that 18 million homeowner base, if we could take 1.8 to 2.0 and our ambition is significantly higher than that that will, you imply that 0.2 against the 18 million, that's 3.6 million additional service requests that we don't have to pay a dime a marketing for. We monetize service requests at $70 million. So, if we can achieve that and our ambitions are far greater, and this will take years, but that's $250 million of high margin revenue that will just fall obviously straight to the bottom line. That's why we're so excited about that. That's what we see in the numbers. And that's why we're green lighting a significant investment in this.

Thank you.

Our next question, can we go to Jason Helfstein at Oppenheimer.

Thanks. Joey I want to ask a bit more about M&A and uses of capital. So, you know, when you guys have done the spin in the past, you know, you've had businesses that were generating meaningfully more cash flow. So, I guess first, you know, is an important kind of, you know, now post Vimeo that you have a business that generates cash flow, and then if not, you know, to the extent you guys tend to be more value wish buyers. I think, in some of the verticals, you've been excited about valuations have, have kind of been high, whether that's in Dotdash. Obviously, in gaming, I think everything is particularly expensive right now. So, maybe kind of help us to understand how we should think about, you know, use of the balance sheet, and, you know, do you need to buy a business that's, you know, cash flow generating, given the kind of investment motive Angi in the short-term?

Sure. So, number one that is a debate, a discussion actually that we have quite a bit internally. I'm not sure you're right that we have less cash flow now than we have in previous ones. Glenn will verify that, but I think we actually have more, we're in the same neighborhood. The – but look, having a source of cash flow is certainly provides an important safety net or an important flow to continue to reinvest. And that is something we'll look at there. There's always opportunities at every market. I agree with you completely that things seem very rich things certainly seem rich in gaming and similar areas. But in every – we've thought that maybe because we're cheaper, or something, or we're value-ish, as you said, I think I kind of like that. We felt for a long time, the market has been expensive, and you know, multiples have continued to go up. And we find opportunities in all those markets. We found Care.com and a market that was, I think, largely considered expensive by historical standards. And we've found other things too. So, I'm optimistic that we'll find things that make sense on an economic basis. By the way, we don't have to buy things at low multiples – at low current multiples, we have to buy things where we have a very clear vision for a very large future, and that can exist in any market. I think it's probably harder in this market than it was in other markets, but it can exist in any market. And where we're looking is, yes, certainly in, as always, our priority is our existing businesses. And that means two things. That means number one, we can find new things in publishing. You will find new things in care, we can find new things in Angi, that'll have a priority on our cash, but also, in aggregate, the post Vimeo, IAC is in a position where it makes sense to buy back stock will buy back stock. And we've gone through periods after spin where we’ve bought back to half the company. We've gone through periods after spins where we've bought new companies. I think both of those are possibilities. And I'm always optimistic that we're going to find opportunity opportunities in any market to find acquisitions. In terms of new categories, that's a hard one to answer. We're looking at several, I think there's a few that are very, very interesting in terms of their current valuation relative to long-term prospects. I do think we're probably going to buy a smaller on things and our sweet spot has been the several 100 million dollar acquisitions. And that's probably where we'll focus, but there's opportunity.

Great.

Our next question is from Dan Salmon at BMO.

Good morning, everyone. Could we get into the details of the 16 million investment at Angi, in particular, how much of that is learning to price jobs? Is it fair to compare that to, sort of promotional spend that we see in other marketplaces like mobility and delivery or do you really have critical mass here on both sides, and it's really simply a matter of learning how to price that scale better? And then Glenn, thanks for the near-term revenue guidance, and comments a little bit earlier. The 20%, 25% target for the business that we talked about over the long-term you spoke about getting to that rate to exit the year, we understand the change in margins, as you have a more of a gross approach to your TAM versus net, is that sort of growth rate, still the right number for the top line over the mid-to-long term?

I'll take the whole thing. Yeah, we do think that north of 20% is absolutely the right growth rate for the long-term. And it's – that obviously opens up, obviously, a fair amount of revenue were now as Shane mentioned, we're going after the 500 billion TAM, not a take rate against that TAM, and on the back of that 500 million of TAM, you add-on payments, you add-on financing, you add-on subscription. So, I think we're also creating TAM as we're approaching the market. So, not only will you see a higher a higher revenue base over time, but as you think about our margin against that, you know, we're less focused clearly on the percentage of margin as we are on the aggregate EBITDA pull through from there. In terms of investment in 60 – the million investment in Angi Services, one, it is to price the jobs, but I wouldn't say promotional, it's the diligence around pricing the jobs. Remember, we're doing this at national scale, in 40% of our categories, so call it 200 categories. So, there's an investment to price the jobs. Two, there's an investment to fulfill the jobs. Not the pro pay, but to make sure the pro shows up and shows up on time. Three, it's to make sure the job was done well. And you know, the follow-up and to intervene throughout that process to ensure an excellent experience. And there is human intervention in all of those three. And then fourth, probably the biggest investment that we're doing is to automate the Top 3. And making sure over time, a human is not involved. And we could productize home services the way Oisin and his team did so well in building the handy business. And that's our blueprint that we're looking at. We see how that got done. We see the fulfillment rates there. And we're following that through our 200 different categories.

Thank you, Glenn.

For our next question, can we go to Nick Jones at Citi?

Great. Thanks for taking the questions. I guess just an update on consumer behavior at Angi. You know, are homeowners more willing to let service providers in their in their home today? And then you know, second question on, you know, creating liquidity at Angi, I mean, how much is maybe becoming more focused and making sure you can drive volume to the best service providers versus continuing to add breadth? Because I think a lot of service providers have lumpy work. So, by being able to provide consistent work, maybe the prices come down or you get more consistent metrics, any color there would be great.

Sure. So, there's a few things going on in terms of macro trends. You obviously got the snapback, where people are clearly leaving their homes returning to some element of normality and transitioning away from some of the work they were getting done in outdoor tasks. So, we're seeing a softness in terms of outdoor tasks as everyone moves away from getting their backyard and deck and new firepit put in to more indoor tasks. The other thing we are seeing is, we're seeing this pent-up demand for new homeowners. I think we've all seen the 1.8 trillion sitting on the sidelines. We've seen the shift towards millennials from hey, maybe they'll never buy homes to they're going to be the largest buyers of homes, and the homes they're buying need more and more work because there's less and less inventory out there. And then the last thing we're seeing is this shift from offline to online. So there's those three or four trends put together that we think as Glenn alluded to earlier, we're seeing softness in the next couple of months in terms of service requests, but expect that you see the shift towards homeownership increase and probably will play out in a positive way for us. In terms of the spread of consumer demand across the pro base, what we're seeing is for Angi Service Pros where we get to density in a market, and density is fewer jobs than you would think, but where we get to density in a market, we see those pros really engage much more in the platform. So, we see the more jobs we drive to a market, the more bookings that individual pro does, the longer they stay on the platform. We also see in the marketplace business an opportunity…

For our next question, can we go to John Blackledge at Cowen?

Great, thanks. So, a couple questions. On MGM, could you just Joey, provide some thoughts on the investment, which was different use of capital than you typically see with IAC, kind of what's the endgame there and would you look to get a bigger stake over time. And then, online employment marketplaces, you have stakes in Blue Crew, Vivian, which I guess formerly called NurseFly, what's the opportunity in this emerging segment? And just curious with Blue Crew, for that segment of the labor pool, are you seeing a tight market given the stimulus? Thanks.

Sure. On MGM we are – first of all, very happy with where we are right now. I think we had a few ideas of what we hoped would happen, could happen, and I think that's largely playing out probably faster than we thought. One is that MGM could make it to the other side. Well, that's clear, MGM is over capitalized now, it's way more than enough capital. Two is whether people will come back to Vegas? I think that's crystal clear already of the convention business is the only thing that's still not officially proven, but we're pretty optimistic based on what the consumer is doing so far. And the third critical thing for us was this digital business and they just shared some numbers publicly recently of that business growing 400% year-on-year and that is, I think, a very, very compelling business. The thing that hasn't happened yet, I mean, it does happen, it's already happened, but hasn't sort of happened in the magical flywheel way yet is the full integration of physical to digital and digital to physical in a, sort of clear consumer experience. And we still believe that has a lot of potential and so we're excited about it. As far as owning more, sure we could, we'd love to, it's a great business, that to be something that makes sense for us, but we're open minded to anything there. And we're still looking at the category more broadly, if it makes sense to do something outside of there. I think our first choice in everything would be to be through MGM, because I think that their team is doing a great job, the MGM team is doing a great job and that would be optimal, but if it makes sense to do something…

Would you – sorry just one, would you build and/or buy other verticals within that?

Absolutely. Yeah, absolutely and we're looking at that. We've been looking at that for a while and we continue to – but that's the place we'd love to put more capital.

Thank you.

Our next question will be from Youssef Squali at Truist.

Great. Thank you, guys, for taking the question. So, I have two: one, more clarification from Glenn. So, Glenn, tell me if I'm thinking about this correctly, but on the Angi Services side, on the fixed price, as you recognize revenues, they are obviously recognized on a gross basis, right, not on the net basis. So, as you look about the growth trajectory, shouldn't it accelerate even more than what you have historically talked about? Again, just because of that pure accounting practice and then as – and I think, by simple math, fixed price is already like 15% of the revenues, and then on the long-term margin, you've talked historically about how Angi could support maybe 35% plus margin profile. As the accounting changes a little bit, can you help us maybe think about the potential for long-term margin there? And then just one question for Oisin, I’ve been tracking your progress with Handy years ago and you did a great job there, but as you try to kind of take the Handy playbook and move it to a much larger platform, can you maybe just speak to like the one or two toughest friction points that we have to worry about, you know as investors looking from the outside in?

Yeah, let me start Oisin and then you could pick up. On the gross revenue, recall, we changed our revenue recognition in 2020, right. So, we had an artificial lift there in 2020 against 2019 as we shift from net to gross. Now all the numbers you see are gross to gross. And yeah, there's a slight uptick, as we get into more larger tasks to the medium consideration task, I think that was rounded to about a 1% accretion in growth rate that mix shift, but sure, there'll be a slight lift, but it's not material there. On the long-term margin, obviously, we've long talked about the 35% target for this business. As we've been talking about over the last several quarters, that's in respect of our traditional marketplace business, the former HomeAdvisor, the former Angi's List. And we still believe that holds. But now that we're making a much more aggressive push into Angi Services, and now we think Angi Services can be a significant component of the overall mix. We've talked about maybe even 50%, I don't know if it's a five-year timeframe, seven-year timeframe or even longer than that, Angi Services is not a 35% margin business and it may not be a positive margin business for two to three years from now, as we grow and as we take over more tasks and go deeper and wider in each of these tasks. So, I think you have to think about what the balance is between Angi Services and our traditional business in terms of percentage of the whole, apply your 35% against our traditional business and apply, I think, a substantially lower number, again, negative for a bunch of years, to get to a blended margin. Said another way, we'll make progress on scale and sales and marketing. We've talked about those numbers before 10% to 15%, probably over the next intervening – the next few years. We'll make progress on product development in G&A. I've talked about 5% or 10% progress there, again, maybe 5 to 7 years. And we'll give back a lot of that on the increase in cost of goods sold. So, that's how to kind of frame up the long-term margin. But importantly, I alluded to this earlier, but maybe didn't do it as crisply as I should have. We're reframing the opportunity here. We are absolutely less focused on the percent margin as we are the aggregate EBITDA dollars and our ability to add on not only the full totality of our total addressable market, that 500 billion, but even more services beyond that. So, as you compare to the way we thought about the business years ago, margins will definitely be – percentage margins will definitely be down and we think aggregate EBITDA opportunity will be up, but it'll take as we've talked about some time. This is a long-term build for sure, as we hopefully continue to transform the category.

Yeah. We're tiny .We're less than $2 billion of a 500 billion TAM, and a true 500 billion TAM, not a takeaway part of it. And I think the opportunity is one that we are very, very excited about going after in a very forceful way and as we continue to invest in Angi Services, I think we're going to transition from the tasks that you mentioned before that Handy was great at into the much bigger tasks. So, the stuff that Handy was good at true automated enrolled, automated job fulfillment that works. So, we've got that. That flywheel is spinning, we're continuing to see that grow. Where we're pushing is into the bigger tasks, so the [$3,000, $4,000, $5,000, $7,000, $10,000 tasks. I think right now we've got two or three tasks going where one of them is $150,000, one of them is at $200,000 essential remodel of someone's home where we're taking full responsibility for the job and we're actually project managing and getting it done. And I think that's where we've got work to do. And we've deliberately – one of the first things I did was we split the ownership in terms of the business. We said, hey, we're going to have a dedicated person in Bryan Ellis running the marketplace business, which is leads and ads, we're going to have Umang, my Co-Founder from Handy running the Angi Services business and it's to give it that dedicated focus because it's going to be bumpy. So, we're aware that it's going to be challenging. I think plan is obviously given the numbers. If I was guessing right now, it's probably going to cost more than we think, but it's probably going to grow faster than you think. If I was like to over under it and I think – we're really excited about the potential to see this grow at a much faster rate, largely because of the data we're seeing in the customer retention, the data we're seeing in the repeat use, and the engagement we're seeing on the pro side when we help them grow their business using the Angi Services model together with the marketplace model. No one else is doing it. Like you think about the competitive set, yeah, there's people out there doing leads and doing ads, there's people out there doing a GC model or a services model, there's nobody that's put them together and said this is the category winner, this is how this is going to work.

Mr. Schneider, let's get one more question in. We're over time and we'll go through it very quickly.

Okay. We'll take our last question from Ygal Arounian at Wedbush.

Thanks for squeezing me in. I have a couple, but I promise they're the shorter ones. Just on the rebrand and impact, is there any way to quantify what that's been so far? And you talked about being at 40% of the categories for Angi Services, historically talking about 50:50, the goal is to getting there 50:50 on revenue, can you talk about the goal and getting there in terms of categories? And on the payment side, that really seems pretty interesting. What are the benefits for pros to using that and do you expect to, kind of bring on all the pros that are using Angi Services into your own payments [always]? Thanks.

Why don't I hit two, three, and then you get one? So, let's start with the payments and work backwards. So today, we've got the payments actually available to the marketplace pros. So that’s $2 million a week. Those are our lead in ad pros that are helping collect or collecting money from their customers and getting paid through the Angi Services – sorry, through the Angi mobile app. The really interesting part of that is a third of those payment requests are going to non-Angi customers. So, those are actually our pros going out doing customer acquisition for us by requesting payment from their non-Angi customers who then have to download the Angi mobile app to make payment. So, that's like a really interesting shift that we're seeing there. I have completely blanked or forgotten your second question. I'm sorry, what was it?

The second question was on the 40:40 – the 40 split [indiscernible]?

Yeah. So what we're seeing today, as Glenn said, is, we're seeing about 40% of our service requests being shown some version of Angi Services, that doesn't mean they see it on the page. And there's a way in which we can show at top of the page, middle, bottom, and as a slide over and we've really got an opportunity to think about how to throttle that. Probably, it's really only being shown in an aggressive way to less than half those people today. Long-term, I have a view that we should be able to offer Angi Services for nearly every single task. So, if we're able to do $150,000 or $200,000 remodel, we should be able to offer Angi Services for every task as an option to the consumer to sit alongside that marketplace model of [leads].

Ygal, respectfully, I'd rather not mark us to market on exactly where we are on the impact of the rebound. It's been six weeks. Our observable inputs are what obviously gave rise to our $40 million EBITDA impact for the year. And we think we've hit bottom and we think we're building from here, but as I said earlier, it'll be a slow build and the headwinds could continue into the first quarter of next year. We may also decide to spend a little more to try and fuel the recapture and fuel more domain authority around the new brand. We'll see. Obviously, as always, we'll keep you posted. And I'll turn it over to Joey to make a few concluding remarks.

Just to add a little bit to what Glenn said, we're past the most harrowing part. We've been through a few of these rebranding things, ServiceMagic, many at Dotdash, and what happens – the biggest impact is in search and what happens is your traffic goes down, and then it goes back up. We're past the going down part, we're in the going back up part, so that's comforting. That's the most harrowing part. Now the question is just pace of going back up. And we really don't know, that’s hard to predict. We do our best to predict that hopefully we get it right, but it's really hard to know. What we do know is, we're confident it is the right decision for the business. We're confident that we are now doing what we probably should have done very long time ago. And we are in the right place to, sort of build and win the long, real, enduring brand product in the category. And maybe that's a good summary for where we are overall. We're excited about where we're headed. We've got big bets. We've got scary bets. We've got fun bets. And we're excited about where we're going. So thank you all for joining us and we will speak to you in a quarter.