Episode summary
Angi CEO Jeff Kip & Sally Beauty CEO Denise Paulonis on Earnings | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · Hosts: Carol Massar, Tim Stenovec · Guests: Jeff Kip, Denise Paulonis, Amara Omeokwe
Summary
Angi’s earnings update centered on a sharp stock selloff, a decision to stop quarterly guidance, and a strategic shift toward rebuilding its platform around AI. The host framed the move as a response to aging technology and a more competitive, faster-moving development environment. The guest said Angi plans to rebuild both its homeowner experience and its pro tools over about a year, using AI-first coding to speed product development and improve estimates, matching, and job completion. He argued the core business is working, even after a revenue reset tied to a less profitable mix, and said the company expects to see benefits later in 2026 with revenue acceleration in 2027.
Key takeaways
- The guest said Angi expects to fund its AI platform shift internally, with no major headcount increase and only modest software costs.
- He said the rebuild should double speed to market and produce early benefits by the end of 2026, with revenue acceleration in 2027.
- The guest argued Angi’s core business is still working, citing a 30-point rise in NPS and a 30% drop in pro churn.
- Denise Paulonis said Sally Beauty is seeing pressure among lower-middle-income shoppers, but still posted 2.3% sales growth and 1.3% comp growth.
- Paulonis said Sally Beauty is leaning into TikTok Shop, e-commerce, and buybacks while keeping hiring roughly status quo.
Notable quotes
“we think it's going to double our speed to market”
“the core business is working quite well. Fundamentally, if you look at Angie, over the last few years, we've gone from 1.5 billion to roughly a billion in revenue”
“we've got a strong business with a with a lot of momentum behind us. You know we continue to be you know first half of the year our EPS is up 8% versus last year”
“we do serve a lower middle- inome consumer. And so, we watch them be uh more choiceful in their behavior”
“we just recently launched on Tik Tok shop, a really important place to be because that's where customers are and that's where they're engaging with beauty”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens.
The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenbec on Bloomberg Radio. Well, it's sort of like hitting your finger with a hammer. Uh, we've all done that.
It really hurts. Um, and I'm just pointing this out because we did see shares of Angie dropping 35% last Wednesday following its latest earnings release after the online portal for home improvement reported first quarter revenue that missed expectations. They also plan to stop issuing quarterly guidance and outline out outlined a major strategic pivot to refocus on AI.
I do want to be fair though the stock did bounce back the following two days after the earning share price drop gaining about 21% in that bounce back. Stock is down though another 12% in today's session. It's about a $27 million market cap stock.
It is down Tim about 60% year to date.
Uh after that intro I'm going to let you bring in Jeff.
Jeff if you want to come in. Um, we do welcome you back. We like talking to you.
We think it's an interesting platform. Tells us a lot about small business owners, talks to us about the consumer, um, and about kind of the home market uh, and then so much more. Jeff Kip is the CEO of Angie.
He joins us from Coasset, Massachusetts. You guys have a lot going on, Jeff. Um, since we talked with you in midFebruary, you got changes to your CFO and COO.
Um, that happened in March and April.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- angi earnings
- ai for home services
- housing market outlook
- sally beauty earnings
- social commerce strategy
Companies and tickers mentioned
- ANGI
- SBH
- Angi
- Sally Beauty
- TikTok
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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