Angi Inc.

Welcome to the ANGI first quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After introductory remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Julie Orojo, Chief Financial Officer. Please go ahead.

Good morning, everyone. I'm Julie Orojo, the CFO of Engie Inc., and welcome to Engie Inc. First Quarter Earnings School. Joining me today is Jeff Kipp, CEO of Engie. Engie has published a shareholder letter, which is currently available on Engie's website in the Investor Relations section. We will not be reading the shareholder letter on this call. I will soon pass it over to Jeff for a few introductory remarks and then open it up to Q&A. Before we get to that, I'd like to remind you that during this presentation, we may make certain statements that are considered forward-looking under the federal securities laws. These forward-looking statements may include statements related to our outlook, strategy, and future performance and are based on our current expectations and on information currently available to us. Actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties, including those contained in our most recent quarterly report on Form 10-Q, our most recent annual report on Form 10-K, and in the subsequent reports that we have filed with the SEC. The information provided on this conference call should be considered in light of such risks. 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. I will also refer you to our earnings release, shareholder letter, and public filings with the SEC and again to our investor relations section of our website for all comparable gap measures and full reconciliations for all material non-gap measures. Now I will pass it off to Jeff.

Good morning. Thank you all for taking the time to read our letter and join us today. We know everybody's busy. Just to repeat a little bit of what I wrote in the letter, we believe we're in the middle of the most transformational time in technology in a generation. We think AI agents and agentic coding present energy opportunities that we did not have in the same way or fashion 12 or even a few months ago. We believe it's incumbent upon us as good stewards of the company and its capital to move aggressively to take advantage of these opportunities. Moving from our legacy platform to a new AI native technology platform for our core business and flywheel much faster as the first Building agents to multiply the effectiveness of our core customer experience and offer new capabilities to our pro customers, what we are now calling the ngPro Chief Revenue Officer, is the second. And finally, leveraging Agents at Coding to build these agents and the platform twice as fast as we could before is the third. We have great assets. We're confident that our existing flywheel is one of the best in the industry, if not the best. We have 30 years of brand equity. We have nearly 200,000 active pros across North America and Europe. We have the most powerful customer acquisition engine there is in the industry. Our flywheel is going to spin even faster as we deploy agents to improve our customer success rates and serve as a phenomenal distribution base for our new product that anyone building AI software would love to have. Thus, we think we have a tremendous head start and great leverage against the opportunity. For the last three years, we've been working hard quarter by quarter to incrementally improve our customer experience and business on an old, brittle legacy stack. And the resources we've been using to do this are really critical to moving forward as quickly as possible against the much greater opportunities I just described. We have made real progress on the customer experience. I won't list everything I've listed in the past, but moving NPS 30 points and improving ProChurn by 30% are key markers during that period. We've also made good incremental progress moving AI into our key revenue flows, with 50% of our homeowners now touching our AI helper in their path. However, we've also not been 100% consistent at delivering incrementally with our legacy technology. The time and costs are extremely high. The incremental approach we've taken and we are taking is not enough, and it's not, frankly, worth the opportunity cost versus what else is in front of us. We just can't afford to keep our product development teams battling with the core technology to improve quarterly revenue and deliver against specific targets. So we're going to release our resources against the opportunities I just described. Getting the new AI-native platform is critical because it's going to allow our core product to function more effectively and drive AI-first innovation, improve the customer experience and the efficiency of the business far better than we can on the decades-old code our current technology is made up of. Our core flywheel is going to spin faster, and our core experience on both sides of the marketplace is going to be better. Shifting and focusing on building the new Angie Pro Chief Revenue Officer is an incredible opportunity because, first, we're going to generate materially more value for our core pro customers by making sure they win more of our leads, driving retention, engagement, multiplying lifetime value, which in turn will spike acquisition opportunity of new pros. It's the strongest bet we can make in this business. And then, secondly, we effectively will have a new business because our pros will be able to use the Angie Pro CRO for non-Angie leads, the rest of their business, grow and enjoy more success, which is, of course, our core mission. Get more jobs done well for our homeowners and more jobs won well by our pros. So we have a two-fold market opportunity and a huge, as yet, undisrupted market where we have the leading assets and leading market positions. So multiple things can be true at the same time. Our mission has not changed. We're focused on jobs done well, as I just said, and jobs won well for our pros. Our goal is to deliver profitable and accelerating growth over time. And we are also making a clear pivot on how we execute our strategy, given, again, what we think is a remarkable opportunity in front of us in our space, and we think we are well-positioned to win. So with that intro... We will move to questions.