IAC Inc.

Good morning, and welcome to the IAC and Angie third quarter 2023 earnings conference call. All participants will be in a listen-only 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 touchtone phone. And 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.

Thank you. Good morning, everyone. Christopher Halpin 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. 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. 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 IECs and Angie 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 IEC shareholder letter, our public filings with the SEC, and again, to the investor relations section of our respective websites for all comparable gap measures and full reconciliations for all material non-gap measures. Now, I'll turn it over to Joey.

Thank you, Chris. Good morning, everybody. Thanks for spending time with us this morning. It's nice to have both Dot Dash 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. 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 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. At Angie, 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. 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 P&L, 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 IHC 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've got plenty to discuss today, so let's get to questions, operator.