Angi Inc. (ANGI) experienced a significant sell-off in after-hours trading on Sunday, with its stock plunging by 5.73% following the release of its third-quarter financial results. The home services company, formerly known as Angie's List, reported a decline in revenue due to a drop in ads and leads sales, which likely contributed to the negative market reaction.
According to the company's financial report, Angi posted a profit of $35.2 million, or 7 cents per share, in the third quarter, compared to a loss of $5.4 million, or 1 cent per share, in the same period last year. However, revenue fell by 16% to $296.7 million, missing analyst expectations of $297 million. This decline was driven by a 17% drop in ads and leads sales and a 21% decrease in services revenue.
The drop in revenue has resulted in lower service requests and lower acquisition of new professionals for Angi's platform. While the company's international revenue grew by 9%, driven by higher revenue per professional, and monetized transactions per service request rose by 26%, these positive trends were overshadowed by the overall revenue decline.
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