ANGI Homeservices Inc (NASDAQ:ANGI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 08:30 am ET


ANGI Homeservices Inc (NASDAQ:ANGI) Q2 2020 Earnings Conference Call - Final Transcript


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Glenn H. Schiffman

Good morning, everyone. Glenn Schiffman here. And welcome to the ANGI Homeservices Second Quarter Earnings Call. oining me today is, Joey Levin Chairman of ANGI Homeservices and CEO of IAC; and Brandon Ridenour, CEO of ANGI Homeservices. Joey and I will also address any questions you may have on IAC's second quarter results and it's investment in MGM.

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 call. It is currently available on the Investor Relations section of IAC's website.

I will turn the call over to Joey shortly to make a few brief introductory remarks and then we will open it up to Q&A.

Before we get to that, I'd like you to -- I'd like to remind you that during this call, we may discuss our outlook and future performance as well as the prospects for IAC's investment in MGM. 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 and ANGI Homeservices and MGM's second quarter press releases and our respective reports filed 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 press releases, the IAC shareholder letter and again to the Investor Relations section of our websites for all comparable GAAP measures and full reconciliations for all material non-GAAP measures.

Joey, let's jump right into the call.

Joey Levin

Thanks, Glenn. The big news this quarter on top of I think being a very strong quarter for IAC generally, is the MGM investment. And we've gotten, as you'd imagine, a lot of questions and curiosity around that. And the big thing, I think, I'm going to hit on is, while the form of this investment is a little different than what we've done historically, in the sense of it's a public security, it's a minority investment, the concept is totally consistent with what we do and what we've always done, which is be opportunistic and seize opportunities when we see them.

That means, opportunities of a theme. We look for a very large market. We have that in gaming, for sure, a $450 billion globally, maybe a third of that in the U.S., and still less than 10% penetrated online, which is a good segue to the next one. Offline to online transition and natural tailwinds, that 10% penetration is definitely getting bigger. It's definitely getting meaningfully bigger. Maybe we'll pick the wrong horse or maybe with the execution won't be there. But there's no question that the 10% gets bigger over time, and you benefit from those natural tailwinds. The other