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IAC/InterActiveCorp (NASDAQ:IAC)
Q3 2020 Earnings Call
Nov 6, 2020, 8:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

You have joined the meeting as an attendee and will be muted throughout the meeting.

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Good morning, everyone. Glenn Schiffman here. And welcome to the IAC and ANGI Homeservices Third Quarter Earnings Call. Joining me today is Joey Levin, CEO of IAC and Chairman of ANGI home services and Brandon Ridenour, CEO of ANGI Homeservices.

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.

Shortly turn the call over to Joey to make a few brief introductory remarks and then we'll open it up to Q&A.

Before we get to that. I'd like to remind you that during this call, 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 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 and ANGI Homeservices third quarter press releases and our respective reports filed with the SEC.

We'll also discuss certain non-GAAP measures, which as a include adjusted EBITDA which we'll refer to today, simply as EBITDA during this call. I'll also refer you to our press releases, 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.

Let's jump right into it, Joey.

Joey Levin -- CEO

Good morning everybody. Very fortunate to be here right now. The fact that you're on this call means you've got your health, that means you're working probably able to work remotely and if your working gotten as you're not doing these earnings calls for fun, but if you're working, it also means you are probably doing pretty well because as a shareholder things had worked out for IAC during this period, which we're all very grateful for, and very much appreciate everyone's support. I know it's a very, very busy week between corporate stuff and of course what's going on in the country. As usual, we put some

Big news in the letter. So, I do want to also get to questions quickly. And I know you'll have a bunch and and then after that, we can all get back to watching John King on that map.

So I guess, Mark, why not you open up the first question. Sure. We'll take our first question from John Blackledge at Cowen.

John Blackledge -- Managing Director And Senior Research Analyst

Great. Thank you. Joey, could you discuss further the rationale and timing for Vimeo spin and how it might differ from the recent Match spin and then also on Vimeo, could you just discuss the success on the enterprise side this year and Vimeo went EBITDA positive this quarter, maybe discuss the near and longer term margin potential for the business.

Operator

There is as we say when we're doing them. Also when we're not doing them. There is not a magic bullet on timing on any of these things, that's a sort of crystal clear catalyst the pushes things one way or the other, but the sort of mounting case on Vimeo has been Vimeo is the where Vimeo which is enterprise software and the currency of enterprise software is very different than the IAC currency and that's GAAP that we can bridge relatively easily but that continues to grow wider and wider and the question is, does it at some point start to limit Vimeo those options and we want to make sure Vimeo has the greatest options possible for Vimeo success and the other thing that has now the back historically is whether Vimeo was ready, both in terms of revenue scale enter the profit, scale and ability to control its own destiny meaning a money-losing business. You want to make sure that they have enough capital or 10 and choose to not be a money-losing business. So I think and this will get into your second question a little bit too. But we've proven now that Vimeo can generate cash. We've proven that clearly to ourselves and now I think we've proven that externally. So really Vimeo is now in control of its own destiny we over the last few quarters have seen very good accelerating growth. And over the last few years. We've been very successful in adding to Vimeo with M&A, we in the the category we did is to live stream in the OTT category. We did that through DHX in the creation category. We did that through Modesto and all of those things so far working out pretty well. And the reason that we are well as we're able to add them on to the Vimeo platform. In fact in all cases, we've sort of rebuilt the products, completely out the Vimeo platform but we able to do that much faster. When we bought something and it comes with both a lot of learning and customers and things that we can test and and things like that. And so when you have that collection of things you think you want to have access to currency to continue to be aggressive, and to continue to execute in that category. I think it's also important to us as a potential branding event for Vimeo those sort of noise in drumbeat of of information on Vimeo continues to get louder. I think that's important. We still have people who say is in Vimeo just the other over the cooler you or whatever, whatever it is and that's not really Vimeo business model at all today. And that's helpful as we start talking about these things for people to understand that and so to some extent it can also be a branding event they get in the out there and in the news and and and this is Vimeo moment to really get that definition for itself. It's not a rush. It is not definitive. And as I said is Vimeo both the capital we just raised, and of course back by all of IAC's capital and Vimeo could be profitable right now, we want to continue to be profitable. So it's not like we have to get out there to get to get access to cash. But I do think it could be good for Vimeo long-term to be in that position. Second question was I think around what's driving the growth with that agenda enterprise. Okay. So enterprise is doing incredibly well right now and that's led by a few we mostly it's internal communications also external communications so employee town halls webinar seminars training great examples are some of the biggest companies. You've heard out now on our platform doing town halls Columbia University doing its graduation on Vimeo the and then small businesses. I guess I'm going away from enterprise, but small businesses we talked about this example as I'm fitness yoga, things like that, we were active think a broader audience we're actually seeing growth across every product in Vimeo right now accelerating growth across every product and Vimeo right now but enterprise definitely the fastest growing and definitely the biggest, it's just, it is now the default thing where it makes sense for enterprise needs a solution like Vimeo in their organization and of course, we're adding to that acceleration with incremental sales both in the US and internationally where we are, we're almost nowhere on sales internationally. And I think that's a huge opportunity for us. Yeah, I just want you met you asked about the timing of Vimeo look our spin. In the past, typically have been, have taken us kind of 6 to 9 months post decision we have yet to make our decision in all likelihood. If we move forward with Vimeo it will be much simpler. So I would say, it could be inside of the 6 months until we're able to affect it, but we'll see just some factoids around the enterprise side. You saw in the letter grew 1% year-over-year bookings actually grew faster than that. And as Joey said, we're really just scratching the surface on the enterprise side, it's less than 20% of revenue and obviously obviously growing the price point around around enterprise. We've talked about this before is on average 15 to $20,000 per customer per year. The self-serve piece, which obviously we have a vast majority sorry over almost all of our one million 5 subscribers. That's a great feeding ground to our enterprise in the fact 35% of our bookings. On the enterprise business come from that funnel, we talked in the letter was only 3500 enterprise enterprise customers right now. So we've got tremendous opportunity on enterprise. Lastly, you asked about about margin. Yeah. We were profitable this quarter you saw in the letter by somewhat by default instead of by design. I think we're going to continue to invest in this business for the, for the ensuing quarters it's about product development is clearly around sales Joey highlighted International. It's a big focus of ours. We're scaling the sales force and unlike unlike at energy where we've been asked the sales sales for probably greater part of a decade. We're probably more than a year and a half, 2 years into it. So we're still in addition of hiring people. We're still optimizing getting efficiency at a sales. So that's going to obviously be investment for us. Marketing is going to be an investment. So I wouldn't expect profitability again for several, several quarters if not longer. Again, as we, as we invest into growth. The one last thing in terms of long-term margin, to answer your question, we talked about this business being a 20% EBITDA margin business eventually. We also mentioned, we think that's conservative. One of the reasons why we think that's conservative is because we're making great progress on gross margin, we talked about 70% being our target and this quarter we're kind of in and around that number. So we're raising our targets in raising the bar for Vimeo and appropriately. So great. Great, thank you. Our next question will be from Brian Fitzgerald at Wells Fargo. Thanks guys. I wanted to ask about ANGI and when we think about the supply constraint problem there. It seems to be like a good problem to have. It's more a funnel focused and you're innovating you're rolling out toolset and fixed price and all that seems to give you ability to kind of happen the funnel and then slide stuff down the funnel and and and ultimately solves that problem. So I want to know if you could kind of talk about seen with the supply constraint problem on ANGI and how you're fixing that yeah, great question. We talked about last quarter that we've been quite pleased with the resiliency of our business in the face of the pandemic, and we've seen more homeowners turn to us for help with their home care needs then really ever before at the same time, we haven't, we haven't gone without impact from the pandemic in the industry itself has not gone about impact. A couple of key challenges that we face. One is just service providers are fairly overwhelmed, particularly in the back half of this year you have the period of March, April, May, which is typically a time and a lot of these providers will be scaling up, but rather as we all know this year they were pulling back and locking down and by June, we had seen a pretty massive resurgence or surge in consumer demand and I think a lot of these companies have our operating a little bit less capacity than they otherwise would be and then have been met with this sort of unprecedented surge in demand. So what we're seeing quite frankly it's just too many companies can take on new customers. And so that's something that, it's just the reality of the situation in terms of when it resolves the way we think about it is largely that it will, that it is somewhat tied to the

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Good morning, everyone. Glenn Schiffman here, and welcome to the IAC and ANGI Homeservices Third Quarter Earnings Call. Joining me today is Joey Levin, CEO of IAC and Chairman of ANGI Homeservices; and Brandon Ridenour, CEO of ANGI Homeservices. 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 shortly turn the call over to Joey to make a few brief introductory remarks and then we'll open it up to Q&A. Before we get to that, I'd like to remind you that during this call, 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 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 and ANGI Homeservices' third 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 simply as EBITDA during this 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.

Let's jump right into it. Joey?

Joey Levin -- CEO

Thanks, Glenn. Good morning, everybody. Feel very fortunate to be here right now. The fact that you're on this call means you've got your health, that means you're working, probably able to work remotely. And if you're working -- and God knows, you're not doing these earnings calls for fun, but if you're working, it also means you're probably doing pretty well. Because as a shareholder, things have worked out for IAC during this period, which we're all very grateful for and very much appreciate everyone's support. I know it's a very, very busy week between corporate stuff and, of course, what's going on in the country. As usual, we put some big news in the letter. So I do want to also get to questions quickly. And I know you'll have a bunch. And then after that, we can all get back to watching John King on that map. So I guess, Mark, why don't you open up the first question?

Questions and Answers:

Mark Schneider -- Investor Relations

Sure. We'll take our first question from John Blackledge at Cowen.

John Ryan Blackledge -- Cowen and Company -- Analyst

Joey, could you discuss further the rationale and timing for Vimeo spin and how it might differ from the recent Match spin? And then also on Vimeo, could you just discuss the success on the enterprise side this year? And Vimeo went EBITDA positive this quarter. Maybe discuss the near and longer-term margin potential for the business.

Joey Levin -- Chief Executive Officer

Yes, definitely. So rationale and timing on the Vimeo spin. There's -- as we say when we're doing them, also when we're not doing them, there's not a magic bullet on timing on any of these things that's a sort of crystal-clear catalyst that pushes things one way or the other. But the sort of mounting case on Vimeo has been, Vimeo is -- the category where Vimeo operates, which is enterprise software. And the currency of enterprise software is very different than the IAC currency. And that's a gap that we can bridge relatively easily. But that continues to grow wider and wider. And the question is, does it, at some point, start to limit Vimeo's options? And we want to make sure Vimeo has the greatest options possible for Vimeo's success. And the other thing that has held it back historically is whether Vimeo was ready, both in terms of revenue scale, in terms of profit scale, in terms of ability to control its own destiny, meaning a money-losing business, you want to make sure that it has enough capital or can it choose to not be a money-losing business. So I think -- and this will get into your second question a little bit, too, but we've proven now that Vimeo can generate cash. We've proven that clearly to ourselves. And now, I think we've proven that externally. So clearly, Vimeo is now in control of its own destiny. We, over the last few quarters, have seen very good accelerating growth. And over the last few years, we've been very successful in adding to Vimeo with M&A. We -- in the live category, we did this through Livestream. In the OTT category, we did that through VHX. In the creation category, we did that through Magisto. And all of those things so far are working out pretty well. And the reason they're working out well is we're able to add them onto the Vimeo platform. In fact, in all cases, we've sort of rebuilt the products completely onto the Vimeo platform. But we're able to do that much faster when we bought something, and it comes with both a lot of learning and customers and things that we can test and things like that. And so when you have that collection of things, you think you want to have access to currency to continue to be aggressive and to continue to execute in that category. I think it's also important to -- as a potential branding event for Vimeo, the sort of noise and drumbeat of information on Vimeo continues to get louder. I think that's important. We still have people who say, "Isn't Vimeo just the other YouTube or the cooler YouTube?" or whatever it is. And that's not really Vimeo's business model at all today. And it's helpful, as we start talking about these things, for people to understand that. And so, to some extent, it can also be a branding event to get Vimeo out there and in the news. And this has been Vimeo's moment to really get that definition for itself. It's not a rush and it's not definitive. And as I said, Vimeo has both the capital we just raised and, of course, backed by all of IAC's capital and Vimeo could be profitable right now. We wanted to continue to be profitable. So it's not like we have to get out there to get access to cash. But I do think it could be a bit good for Vimeo long term to be in that position. Second question was, I think, around what's driving the growth? Was that it, John?

John Ryan Blackledge -- Cowen and Company -- Analyst

Enterprise.

Joey Levin -- Chief Executive Officer

Enterprise, OK. So enterprise is doing incredibly well right now. And that's led by a few things. I mean mostly it's internal communications but also external communications, so employee town halls, webinars, seminars, training. Great examples are some of the biggest companies you've heard of now on our platform doing town halls, Columbia University doing its graduation on Vimeo. The -- and then small businesses -- I guess I'm going away from enterprise. But small businesses, and we talk about this example all the time, fitness, yoga, things like that, where you're accessing a broader audience. We're actually seeing growth across every product in Vimeo right now and accelerating growth across every product in Vimeo right now. But enterprise is definitely the fastest-growing and definitely the biggest. It's just -- it is now a default thing where it makes sense for enterprises to need a solution like Vimeo in their organization. And of course, we're adding to that acceleration with incremental sales, both in the U.S. and internationally, where we are -- we're almost nowhere on sales internationally. And I think that's a huge opportunity for us.

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Yes. Just one -- you asked about the timing of Vimeo. Look, our spins in the past typically have been -- they have taken us kind of six to nine months post decision. We've yet to make our decision. In all likelihood, if we move forward with Vimeo, it will be much simpler. So I would say it could be inside of the six months until we're able to effect it. But we'll see. Just some factoids around the enterprise side. You saw in the letter, it grew 100% year-over-year. Bookings actually grew faster than that. And as Joey said, we're really just scratching the surface on the enterprise side. It's less than 25% of revenue and obviously growing. The price point around enterprise, we've talked about this before, is on average $15,000 to $20,000 per customer per year. The self-serve piece, which obviously we have a vast majority -- sorry, almost all of our 1.5 million subscribers, that's a great feeding ground to our enterprise, And in fact, 35% of our bookings on the enterprise business come from that funnel. We talked in the letter, there's only 3,500 enterprise customers right now. So we've got a tremendous opportunity on enterprise. Lastly, you asked about margin. Yes, we were profitable this quarter. You saw in the letter by -- somewhat by default instead of by design. I think we're going to continue to invest in this business for the ensuing quarters. It's about product development. It's clearly around sales. Joey highlighted international. It's a big focus of ours. We're scaling the sales force. And unlike at ANGI, where we've been at sales for probably greater part of a decade, we're probably, what, a year and a half, two years into it. So we're still -- in addition to hiring people, we're still optimizing getting efficiency out of sales. So that's going to obviously be an investment for us. Marketing is going to be an investment. So I wouldn't expect profitability again for several quarters, if not longer, again as we invest into growth. The one last thing in terms of long-term margin, to answer your question, we talked about this business being a 20% marked -- EBITDA margin business eventually. We also mentioned we think that's conservative. One of the reasons why we think that's conservative is because we're making great progress on gross margin. We talked about 70% being our target. And this quarter, we're kind of in and around that number. So we're raising our targets and raising the bar for Vimeo and appropriately so.

John Ryan Blackledge -- Cowen and Company -- Analyst

Great. Thank you.

Mark Schneider -- Investor Relations

Our next question will be from Brian Fitzgerald at Wells Fargo.

Brian Nicholas Fitzgerald -- Wells Fargo Securities -- Analyst

Thanks, guys. I wanted to ask about ANGI. And when we think about the supply constraint problem there, it seems to be like a good problem to have. It's more funnel-focused and you're innovating. You're rolling out tool set and fixed price. And all that seems to give you the ability to kind of hone the funnel and then slide stuff down the funnel and ultimately solves that problem. So I wanted to know if you could kind of talk about seeing what the supply constraint problem on ANGI and how you're fixing that.

Brandon Ridenour -- Chief Product Officer

Yes. Great question. We talked about last quarter that we've been quite pleased with the resiliency of our business in the face of the pandemic. And we've seen more homeowners turn to us for help with their home care needs than really ever before. At the same time, we haven't gone without impact from the pandemic. And the industry itself has not gone without impact. A couple of key challenges that we face. One is just service providers are fairly overwhelmed, particularly in the back half of this year. You have the period of March, April, May, which is typically a time when a lot of these providers will be scaling up. But rather, as we all know this year, they were pulling back and locking down. And by June, we've seen a pretty massive resurgence or surge in consumer demand. And I think a lot of these companies have -- are operating with a little bit less capacity than they otherwise would be, and then have been met with this sort of unprecedented surge in demand. So what we're seeing, quite frankly, is just many companies can't take on new customers. And so that's something that is just a reality of the situation. In terms of when it resolves, the way we think about it is largely that it will -- that it is somewhat tied to the pandemic and that as the sort of situation at large normalizes, we would expect the operations and capacity of these companies to normalize and their appetite to pay to meet new customers would rebound to former levels. The other challenge that we have faced specifically is we came into the year with pretty ambitious plans to grow our sales force. We were ahead of where we expected to be going into March. But unfortunately, obviously, during the second quarter, we had to sort of freeze everything, very, very quickly find a way to get several thousand people working remotely for the first time in history. And then subsequent to that, we've had to learn how to hire and train new salespeople remotely, which is not easy for a variety of reasons. And so we are, what I would say, effectively about six months behind where we expected to be in terms of the size of our sales force. Our sales force that we do have has performed well during this period, which I think is a bright note. But growing the sales force and having those incremental salespeople bring on more service providers and growing our overall network at a faster rate is critical to at least be one contributor to solving the supply challenge. On the other side of our business, fixed price, which is somewhat nascent but important, really works quite a bit differently. And we have seen that grow very quickly. That's an area -- if on one side of our business, service providers are paying us to meet customers and they've got a lower appetite for that. On the fixed price side of our business, we're able to take advantage of that -- those higher levels of consumer demand, and we're actually paying service providers. So we saw growth there, really meet our expectations. But it's a newer part of our business and small relative to the traditional component. As we look forward to next year, there are things we can control and things we can't. We think we'll have our sales force back where it needs to be by the end of this year. But those folks will be hired much later than we expected and it will take time to get them fully ramped up and productive over the first part of next year. Fixed price, we expect to continue to grow very quickly and bringing on additional capacity via that platform. And then we have new products that we will go to market with that we think can tap into different segments of the SP universe than we traditionally have. So is it a good problem to have? I think having lots of consumers relying on your service and having that demand, which is intrinsically valuable, is obviously incredibly important and the most important thing, frankly. But we've got a lot of work to do to get our provider capacity back to where it needs to be. And we, frankly, would like to see some normalization of the environment at large.

Joey Levin -- Chief Executive Officer

Brian, the way that you framed it is very consistent with the way that I think about it, the way that we think about it, which is -- and by the way, everything that Brandon said is, of course, true. But if you just take a step back, we are aggregating demand. And that's a very good position to be in to be aggregating demand and growing demand the way we've been growing demand and getting the homeowner. And in that experience, even though we're not monetizing, we're doing all the things that Brandon said to monetize. Or even though we're not monetizing at the level we'd like to be, I think a lot of that is pandemic-related. We've never had a problem at IAC figuring out how to monetize things. And I don't think long term, we're going to have a problem figuring out how to monetize this one if we've got the homeowner and we've got the demand continuing to come. And the people who are coming to our platform are generally being satisfied. Now we show them fixed price and they don't transact, that actually could very frequently be a satisfactory experience. We show them what the price is of that job. We show them when they could get that job done and how they could get that job done. And very, very often, they're choosing not to get that job done, which, I think if you all think back to your own personal experience, probably 65% of the time, you're not doing the job you thought you might want to do when you went and inquired about it. So that actually is -- that's a zero monetization event for us, but that's also a satisfactory experience. And I do think that if we keep these customers coming back and we keep delivering them satisfactory experiences, that over time, our ability to monetize that, I feel very, very confident in.

Mark Schneider -- Investor Relations

And we'll take our next question from Cory Carpenter at JPMorgan.

Cory Alan Carpenter -- JPMorgan Chase -- Analyst

Great. Thank you. Brandon, just sticking with ANGI, I think on product, you highlighted payments in the shareholder letter. I'm hoping you could expand some on the opportunity there, and then maybe some of the other key initiatives you have in the product pipeline. And as a follow-up, Glenn, just how we should maybe think about that translating to the level of investment needed to support these initiatives and what that could mean for margins over the coming quarters?

Brandon Ridenour -- Chief Product Officer

Yes. Thanks, Cory. We've been very, very fortunate this year that our business has stayed resilient enough that our teams have remained 100% focused on the initiatives and strategic areas that we came into the year focused on. And we have made across the board the progress that we were hoping to make, particularly around product innovation. Payments, obviously, is a completely new feature that we've offered our providers. And, we recently crossed sort of the $1 million a week mark. Fixed price has scaled, I think, very, very fast. And obviously, that's a great new line of growth for us. But perhaps as important is the innovation it brings to the consumer. And what we're seeing with a lot of the early cohort data is really a significantly different set of consumer behavior for those folks that engage in that product. So that's true of the payments feature. That's true of fixed price. That's true of folks that we get into our mobile app. All of these experiences are driving a much stronger relationship with the consumer that ultimately is resulting in a much higher LTV. And as we've said, coming into the year, that is probably the single most important thing that we need to do to create a durable business over the long term. As we think about next year -- if I think about this year, I believe we're largely putting together building blocks and understanding how they work and ensuring that they create the experience that we aspire to and that we're seeing the impact from a behavioral standpoint. We've created a lot this year. Most of the engagement or scale of which these experiences have achieved is relatively small. When I think about 2021, now that we know we have these building blocks and we know the impact they have on our relationship with homeowners and just the improvement of the experience that they bring, 2021 will be largely about scaling engagement and scaling penetration. And so we'd love -- we absolutely are focused on moving as much of our audience into our mobile app as we possibly can. And we have tools at our disposal that we think are going to move the dial significantly. We want to see payments scale to be as large as it can possibly be. Right now, our thinking around payments is perhaps less about what specific transaction fees we can make on each payment, but rather the change in behavior it creates on the consumer side. Consumer, once they've used the payments feature, they've got -- we have their credit card on file. The process then to buy a fixed price service is an incredibly low friction. And overall, we see those consumers provide a much higher LTV. And then on the provider side, the more they use our platform to run their business and to collect money from homeowners, that's -- we think that's a significant improvement to the relationship we have with advertisers. And then they're also starting to use this payment feature with their own customers that are acquired outside of our marketplaces. And the great thing about that is, ultimately, those homeowners, who do -- who end up paying those professionals, come back or come to HomeAdvisor for the first time to make that payment. So it effectively uses network as a way to introduce us to new homeowners. And then with fixed price, we'll continue to scale that. But the thing I am very excited about is the opportunity to offer customers the ability to bundle fixed price services together to get fixed price -- certain fixed price services on a recurring basis. And again, all of this is to say, how can we get more share of the home services that homeowners are doing? How can we keep -- how can we start thinking about our acquisition of homeowners, not as a 12-month span but a five-year span or a 10-year span and really create very, very strong relationships? So we will focus on really just scaling a lot of the things we've already talked about. We do have finance offering certain point-of-sale financing options for consumers that will come here in Q4. And so that's another thing we'll add to the mix for next year.

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

And Cory, as you requested, translating that into investment, we'll be investing significantly over the next year. This past year, we talked about a $30 million to $50 million incremental investment largely in fixed price, a little bit in international. And I think that pace of investment clearly continues. What that then, therefore, means for margin, of course, will depend on revenue growth. And as Brandon said earlier, we think we're going to be at in and around this kind of 9% -- 9% to 10% revenue growth for the -- at least the next couple of quarters, maybe beyond. We have to lap the pandemic, which gets us to the second quarter. And I don't think we should expect a V-shaped snapback, given some of the sales initiatives that Brandon talked about and the time it takes those to spool up and the time it takes us to work through their backlog. So I don't think we'll be back toward the 20% target toward -- probably toward the end of the year. That, of course, has implications for margin. Because at this 9-or-so percent revenue growth level, we don't create a lot of incremental margin, and we're going to be investing that back in. So we're probably talking about margin increases deferred until the end of 2021, maybe the third or fourth quarter, probably the fourth quarter. Because this investment is born of what we're seeing every single day in the business and the positive feedback that we're seeing in the business. It's repeat rate at fixed price. It's what the payments product does for the relationship with the SP. It's the customer satisfaction level on fixed price. It's the growth in fixed price. And this year, we think we'll pierce through $150 million of revenue in the fixed price product. And as you recall, that's virtually from a standing start 12 to 18 months ago. So, on the back of that strength, we're going to continue to invest.

Mark Schneider -- Investor Relations

Great. Can we do our next question from Brad Erickson at Needham?

Bradley D. Erickson -- Needham & Company -- Analyst

Hey. So, I guess a couple of questions on the service provider front. One, just understand, obviously, there's ongoing constraints there. I think to date, you've kept the sales efforts to work on that pretty separated. Doing the core business and fixed price, does it make sense at some point to maybe co-mingle those efforts, might alleviate the situation, get a little bit more efficient? And then second, just on the sales and marketing spend, obviously, has been sort of ticking up the last few quarters. How much of that -- can you just kind of talk about the allocation of sales and marketing between traffic acquisition versus service provider acquisition? Thank you.

Brandon Ridenour -- Chief Product Officer

Yes. On the -- in terms of co-mingling fixed price and our traditional network, right now I feel pretty strongly that the best way to build capacity is to keep those efforts separate. The traditional network, these are businesses that are -- they're flushed with customers. And many of them are booked up through the end of the year. So I don't think there's a tremendous amount of excess capacity there to tap into. At the same time, it's not that difficult for us to scale the fixed price side of the business in terms of the providers. We're going out and offering to pay providers to do these jobs. And that team has had a lot of success even during what is a relatively challenging period with that value proposition and with bringing the necessary providers online. It is a human-constrained effort inasmuch as when we don't have a provider for a particular type of project, we have to go find someone in that geography and for that particular task. And we're working through month-after-month trying to keep up with a really fast consumer growth rate to build up that provider network. But it's overall -- it's not that challenging. And I don't think further cannibalizing or taxing our traditional advertiser network is a meaningful breakthrough in terms of adding quick capacity. Clearly, someday, we will begin to co-mingle those things more for the benefit of our providers and more for -- because we think the value proposition for fixed price is so compelling and we'll want to make sure that, that's something that our advertisers and other traditional service providers can tap into if they want to. But it's more oriented toward value proposition for them, and less about overall aggregate capacity. In terms of sales and marketing, a couple of things. We said at the end of Q2, coming into Q3, that we were going to get -- we're going to lean in a bit and get more aggressive on consumer marketing. We saw in June a strong environment, a strong rebound from a consumer demand standpoint and frankly, relatively attractive ad rates across a number of channels. And we did just that. We got aggressive. We spent quite a bit to acquire homeowners. And that manifests in really some of the fastest service provider growth that we've seen in a couple of years. We obviously didn't monetize that as well as we had hoped. And progressively throughout the quarter, we saw that sustained consumer demand really take a toll on provider capacity, of providers becoming too busy. Yes. On the -- in terms of co-mingling fixed price and our traditional network, right now I feel pretty strongly that the best way to build capacity is to keep those efforts separate. The traditional network, these are businesses that are -- they're flushed with customers. And many of them are booked up through the end of the year. So I don't think there's a tremendous amount of excess capacity there to tap into. At the same time, it's not that difficult for us to scale the fixed price side of the business in terms of the providers. We're going out and offering to pay providers to do these jobs. And that team has had a lot of success even during what is a relatively challenging period with that value proposition and with bringing the necessary providers online. It is a human-constrained effort inasmuch as when we don't have a provider for a particular type of project, we have to go find someone in that geography and for that particular task. And we're working through month-after-month trying to keep up with a really fast consumer growth rate to build up that provider network. But it's overall -- it's not that challenging. And I don't think further cannibalizing or taxing our traditional advertiser network is a meaningful breakthrough in terms of adding quick capacity. Clearly, someday, we will begin to co-mingle those things more for the benefit of our providers and more for -- because we think the value proposition for fixed price is so compelling and we'll want to make sure that, that's something that our advertisers and other traditional service providers can tap into if they want to. But it's more oriented toward value proposition for them, and less about overall aggregate capacity. In terms of sales and marketing, a couple of things. We said at the end of Q2, coming into Q3, that we were going to get -- we're going to lean in a bit and get more aggressive on consumer marketing. We saw in June a strong environment, a strong rebound from a consumer demand standpoint and frankly, relatively attractive ad rates across a number of channels. And we did just that. We got aggressive. We spent quite a bit to acquire homeowners. And that manifests in really some of the fastest service provider growth that we've seen in a couple of years. We obviously didn't monetize that as well as we had hoped. And progressively throughout the quarter, we saw that sustained consumer demand really take a toll on provider capacity, of providers becoming too busy. But as Joey said, acquiring these homeowners and having them come and use our service, even if we didn't monetize it, we think is the right move and important in terms of growing our share of the market. And those folks, even if we didn't monetize them, millions of them saw and experienced the opportunity to buy a fixed price service for the first time. That's something that's really never meaningfully existed at this scale in the way that we're offering it. And so even if folks didn't purchase it, they've seen it for the first time. And today's person that had an impression of it is tomorrow's purchaser. And also, we know from our own data that the folks that -- folks we acquire, whether we monetize them or not, they are -- they're going to come back. We look at it on a 12-month horizon. And they come back and repeat at the same rate as somebody we did monetize. So they -- all these consumers we acquired in Q3 will ultimately benefit us over the next 12 months. And hopefully, we see monetization improve over that period and are able to better capitalize on those repeat visits. In terms of the increase in SP marketing, we have also increased -- we've also increased SP marketing over the course of the year. I think, on balance, more of the spend is really about consumers and driving consumer acquisition. We're spending a bit more on the provider side as well, but it's been more of the consumer side. And in particular, we spent -- we came into the quarter and spent quite a bit on television, which had a favorable rate environment. We didn't spend in Q2 for obvious reasons. As we go into Q4, we pulled back on that a bit because it's just not a strong -- it's not the strongest season for home services. But that's the gist of it.

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

The other interesting thing that's happening inside of the service request, and we may -- I think we touched on this in previous calls, is our service request from new users, people who've never tried our platform before, that's been up this year since the pandemic between 25% and 30%. That compares to like 0% to 5% historically. So we're creating a freshman cohort of users on our platform. And that really bodes well for the future. That's the millennials who are beginning to own and purchase homes. And that's people who again will become repeat users. And that's, I think, a real demonstrable display of offline to online conversion, of which we will be a significant beneficiary.

Mark Schneider -- Investor Relations

Our next question will be from Brent Thill at Jefferies.

Brent John Thill -- Jefferies LLC -- Analyst

Thanks. Good morning. Glenn, any more color as it relates to the mix of fixed price and where you think that could end up?

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Brandon, do you want to do that?

Brandon Ridenour -- Chief Product Officer

Well, yes. If you're talking in the long term, we -- I think our ambition -- and it's really a bit difficult to project something that's as nascent as this with it being about 18 months old. Glenn referenced earlier that we expect to end the year at north of $150 million in that particular product line. Our ambition is to get this to be about half the size of the business. And we think that's very attainable. In terms of the horizon, five years, six years, seven years is probably the right duration to think about that, just given the growth rate there relative to our traditional business and how we expect those to play out over time. But I think that's the right level of ambition. And I think that's the size we think about when we think about it over the long term.

Mark Schneider -- Investor Relations

Our next question is from Jason Helfstein at Oppenheimer.

Jason Stuart Helfstein -- Oppenheimer & Co -- Analyst

Hey. Two questions. Maybe just the first, Brandon, I mean, just help us understand what gives you the confidence to lean into that marketing, given that many of these leads, you will not be able to monetize in the first -- at the first action, it's kind of over the kind of life of that lead, three months, six months, nine months. And so kind of what do you know now that you didn't know nine or 12 months with bringing those leads in the funnel? And then second, Joey, congrats on your 10-year extension. Just kind of, to the extent that you do move ahead with Vimeo, obviously, a huge amount of value is going to be then ANGI within IAC. Wouldn't it make sense to kind of bring ANGI back into the fold formally, given the small stub out there, just to kind of simplify the process, and et cetera?

Brandon Ridenour -- Chief Product Officer

Yes. I'll start off. Look, it's a very uncertain environment. I think it's probably an understatement. And coming into a situation like this, coming into the third quarter, you have to make a decision as to where your bias is. And our bias is toward growth. We don't know how quickly monetization will normalize. But we do know it's a favorable environment to acquire consumers and gain more share of the consumer market. And you can see we were very successful in that in spite of perhaps not monetizing as well as we had hoped. I anticipate and expect that we'll be able to better monetize those customers when they do repeat over the course of the next 12 months. We got more of those people into our app than -- like significantly more than we ever have before. And I -- our -- we lean into this thinking that more consumer share and driving future growth is the most important priority. You could have taken the opposite tact, which is to say, pull back and very conservative and make sure that everything is absolutely profitable within the quarter. We didn't choose that path. And I personally feel strongly that in this market and with what we're trying to accomplish, leaning in, focusing on growth and focusing on consumer share, and more exposure to our products and the innovative features we're offering is the right path. We'll see how that plays out, obviously, over the next six, nine, 12 months. But I expect it to bear fruit and I expect it to propel growth next year.

Joey Levin -- Chief Executive Officer

And to me, that huge increase in the mobile app conversion is a very big one and a very sticky one, or hopefully a very sticky one for behavior. I mean we do see that today in behavior, how a mobile app user behaves and our ability to convert those mobile app -- those web users to mobile users has been very nice this year. On your question, Jason, look, it is -- it's definitely something to think about. I think the question for us is, same thing we do in the reverse direction, is it valuable to us, to ANGI to have a currency out there? In some periods, that is valuable. And for some currencies, that is valuable. And for some, it's not. And so I think it will be -- it would be long term, medium term or short term really dependent on that. And if the currency isn't an asset to ANGI in being out there, then that's maybe something we'd consider. And if it is, then maybe we wouldn't.

Mark Schneider -- Investor Relations

And our next question is from Ross Sandler at Barclays.

Ross Adam Sandler -- Barclays Bank PLC -- Analyst

Hey, guys. Joey, I guess as a lead to that last question, if we go -- if we just rewind the clock a little bit, there was a lot of corporate strategy in 2008 when you broke up into the five different pieces, and then there was this period of time from 2008 to 2014, where you were incubating a lot of the businesses and buying back stock and shares appreciated nicely, but there wasn't a lot of corporate activity. So now that we're announcing Vimeo, should shareholders expect that this is kind of the next stage of the IAC era? What other things are you looking at? Given the cash balance and the overall capitalization, what should investors expect out of this next phase now that Vimeo is moving out the door? Thank you.

Joey Levin -- Chief Executive Officer

Yes. Ross, look, that's a very important question. And I don't have a definitive answer to that, but I'll give you some flavor. Though we haven't definitively made up our mind on Vimeo, but presuming we did that, there's not a obvious to me candidate for another spin, for example, for a while. I mean there is -- you could make arguments that, that always changes and our thinking on these things can change very quickly, but there's not an obvious candidate for another spin. You're right, we will be very well capitalized with cash. And we'll think about the whole range of options with cash, which we always have, which is maybe that's share repurchases, maybe that's investment in businesses, maybe that's picking up new businesses. But the focus definitely for the next x years but a while is building. And that building can come inside of IAC because we have a lot of great -- I mean think about just ex Vimeo for a second. We've got ANGI, we've got a leader in its category, a huge category. We've got Care, a leader in the category, a huge category. We've got Dotdash, a leader in publishing, huge category. And within Dotdash, probably at a minimum, I would say, four really big categories. And I could argue even bigger than that. And then we've got very large positions or -- where we're the biggest shareholder of other things that are huge and big and very large categories, Turo, MGM. All those things present options to us for more capital to deploy, different ways of working with those companies over time. And we're pretty excited about that menu of things to be able to execute against. And that -- so I can't sort of say that there's no more acquisition -- I'm sorry, there's no more spins or we're just focused internally and we're just focused on that growth period. I wouldn't say it as definitively as that because we do change a lot when circumstances create opportunities and we'll always take advantage of those opportunities. But I do think realistically, there's not much left to spin post Vimeo in the reasonably near term. And that means we're really focused on the building part inside of IAC and with a huge amount of capital to deploy against that.

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

And all the assets Joey mentioned, natural tailwinds, benefit from offline to online conversion, play in very large addressable markets, where we're the leader or close to being the leader. And that includes some of the assets that we have in the emerging and other bucket, some of the future work initiatives. So if we don't acquire another thing, there's a long runway of substantial and significant organic growth.

Mark Schneider -- Investor Relations

Can we get our next question from Eric Sheridan at UBS?

Eric James Sheridan -- UBS Investment Bank -- Analyst

Maybe 2, if I can. One, going back to Vimeo, just wanted to better understand what you're seeing from some of the newer customers. We get a lot of incoming from investors on who the new customer cohorts are at Vimeo, how you expect them to age going forward, why they're choosing Vimeo for their video solution. So just better understanding that landscape would be one. And then second, maybe pivoting away from ANGI but to Care. Obviously, that's an asset you acquired. You're trying to reposition that asset for the medium to long term. Maybe an update on how you're doing in terms of your marketing initiatives, sorting out the supply and the demand side of that marketplace.

Joey Levin -- CEO

Sure. So on Vimeo customers, yes, enterprise being the biggest driver recently. And that's the names you've heard of, Fortune 500 companies, that kind of -- or big brands you've heard of using it very significantly for internal communications. And we just launched a new internal product called screen recording, which allows people in an enterprise to record their own screen and then share it with their colleagues. So imagine with remote work, you're talking about a product and trying to fix a product or where you want something to go, you -- the engineering team, for example, is doing that on their own screen and sending that to their colleagues and saying what they want something to look like or what they want fixed. So it starts to really go to a much broader part of the organization. I think our wedge into the organization has been one-to-many communications, so town hall being a significant example or big meetings being another example or big demonstrations to customers or conferences, things like that. That has been the wedge in and that seems to be very sticky because people are now recording those events and storing them, archiving, sharing them and creating a corporate library and then embedding those videos across their properties. That, so far, seems to be very sticky among the larger enterprises. But again, Columbia University graduation, that's another great example of a one-to-many broadcast of when you don't think of a corporation but still a town hall. Concerts, music, we're seeing -- and I can't think of the name of it, but famous music venues, things like that, where they're using Vimeo as a tool to do shows for their audience. And then on the small side, I think it's hugely encouraging where businesses that obviously have nothing to do with video, nothing to do with performance, are using our tools just to make videos to give their business a presence, whether it's on social media, whether it's on their own website, whether it's embedded video player. But they're using those videos to communicate a sale, a special, whatever it might be, as well as their business. It's just more natural now and I think will be increasingly so to tell that story through video than it will be through a billboard or through a static text or through static images. And we really are -- I think I mentioned this earlier, but we're seeing those demand curves across all of those products and all of those customers grow, enterprise being by far the biggest. That's the -- does that answer your question, Eric, on the Vimeo customers? Is that what you were looking for. Oh, we knocked him off of communication.

Eric James Sheridan -- UBS Investment Bank -- Analyst

That was great. Yes. And then just Care would be the second one.

Joey Levin -- CEO

Yes. So on Care supply and demand, that definitely took a hit on both sides with the pandemic. For obvious reasons, demand, people weren't going out on Saturday nights and they weren't leaving their kids and they weren't letting people into their homes. So you can imagine that child care took a hit. That is changing now, that's reversed. So people, I think we're net growing subscribers again right now...

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

First quarter of sequential net adds since the pandemic and double-digit growth overall.

Joey Levin -- CEO

So that's very encouraging. I think that the -- that's another area actually where the enterprise is doing very well, positively surprising us. The -- I think that what we're seeing is enterprises start to feel a responsibility to help their employees with child care and senior care. It's now that people are home more often or children are home more often, that's becoming something where it's in the enterprises' interest. Before, it was a -- it was focused on making sure that everyone in the household was able to keep working and that one person that wasn't had to be responsible to stay home with children. And that was a driver of that historically. Now it's -- because kids are at home and because people are stuck at home, it's relevant to all the workforce. And that's, I think, a really nice tailwind for Care generally. Senior care side also, I think, has a really nice tailwind in the sense that just the way that, a, people are aging. People are preferring, of course, to age in place. And when you see what's happening, of course, with this pandemic, the idea of putting somebody in a very -- what's turned out to be very dangerous situations, getting people care in their home, senior care in their home, I think, is a very nice long-term tailwind there. So we like the supply and the demand dynamics long term. Short term, I think we're -- I definitely can't say that we're out of the woods. But we've definitely turned the corner on the things that will be holding back supply and demand as a result of the pandemic.

Mark Schneider -- Investor Relations

For our next question, can we go to Nicholas Jones from Citi?

Nicholas Freeman Jones -- Citigroup Inc -- Analyst

Maybe just a follow-up on Vimeo. Can you talk about the integrations with GoDaddy, Shopify, what other opportunities are to make integrations? And what kind of early engagement are you seeing from subs on those platforms with Vimeo?

Joey Levin -- Chief Executive Officer

Sure. I think those integrations are going to be very important. Certainly, for us and I think for the platforms that we're working with, too, the -- you should think of all the sort of competitors' analogies to GoDaddy in terms of site builders, I think those are all relevant. I think any platform that's working with lots of small businesses to enable them to sell their products, that -- travel, for example, is a vertical we're now going after. If you've searched on any of these platforms to look for accommodations, frequently, you'll just find a video there. Frequently, the owner of that accommodation is not well-versed in video. And so they can use our tools to, for example, to make video on their platform. Website builders, of course, I referenced shopping platforms. I referenced -- all those things are -- when you think of their -- when you think of the people who are paying those platforms for their services, do they want video on that platform to supplement the way that they're selling their services? And I think the answer the vast majority of the time is going to be yes. And hopefully, we could be the platform that does it. I think we've built a product that services that very well, both services the platform very well and services the end user very well. And we view that as a big, big potential growth area. In terms of engagement so far, there were some great stats on Shopify which I now can't recall. I don't know if we're supposed to disclose it. But I think getting really nice engagement with those platforms so far. I think GoDaddy, I don't even know if it's launched yet. But I think it's very early there. So I don't know if you know what...

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Yes. We announced it last week.

Joey Levin -- CEO

Okay.

Mark Schneider -- Investor Relations

Our next question, can we go to Youssef Squali at Truist?

Youssef Houssaini Squali -- Truist Securities -- Analyst

A few very quick ones. One, can you just remind us what the 0 metric was this quarter? I think last quarter, it was around 40%. Second, on the fixed price, how do you -- how good is the algo to try to price a job site unseen? Which have you seen so far in terms of just the accuracy of pricing? And on that, I think you guys talked about $180 million in revs. Just want to make sure I understand. Is that for 2020? Or is that contribution that you expect for 2021?

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Yes. I'll knock off the last one. It's $150 million of revenues for the entire of our fixed price -- entirety of our fixed price business. And that's 2020.

Youssef Houssaini Squali -- Truist Securities -- Analyst

2020.

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Yes. And then Brandon, you do the middle question. The 0 metric was about 50%. Just divide in our disclosure, monetized transactions divided by service requests. And that's the -- the quick math falls out of that. It's still laboring at around 50%, which as we talked about earlier is a terrific opportunity. If we just get back to our 40%, that's 10% increase on 9.8 million SRs. That's 980,000 SRs, which we monetize SRs, as you know, at $60 a pop. So that's north of $50 million of very high-margin quarterly revenue. That's our opportunity. That's the unlock Brandon and Joey spoke about earlier. It will take a couple of quarters, obviously, to flow through. But that's why we're so bullish on it. Brandon, sorry.

Brandon Ridenour -- Chief Product Officer

Yes. No, in terms of the accuracy of pricing on fixed price, the way I would think about that, first of all, in terms of the performance of fixed price this year, it's been -- margins on those transactions have been a little better than we anticipated. So we've been pleased with how that played out. I think when you think about the pricing accuracy, it's a question of how can you price as optimally as possible, given the market for that particular job and given the cost that it ultimately will require for us to fulfill on it. And right now, I think there's lots of room for improvement to get more sophisticated. There's hundreds of these jobs, right? So there's well over 200 individual job types at this point. And it's really a process of going job-by-job and understanding what inputs are needed to price as optimally as possible and then also understanding the local market dynamics in terms of what the cost of fulfillment ultimately will be. And then with those two sets of inputs, having the algorithms, if you will, to calculate the right price at the right time, what you really get from that is increased consumer demand and increased consumer engagement. Right now, just to be frank, we are growing fast, and we are not constrained on the consumer demand side. We are really getting as many transactions as we can keep up with. And so the benefit of pricing more optimally or pricing more accurately in a market and driving even more consumer demand is really not at the top of our list. We do want to refine the way we price these jobs because ultimately, maximizing total transactions and maximizing as many -- getting as many customers and consumers engage with us as possible will come down to having really competitive pricing for every job in every market. I spent some time looking at this, this weekend actually. And some of the jobs, I think we're doing a good job pricing. And some of them, we haven't gotten to yet and the pricing is pretty rough and it's largely sort of an hourly based rate. I expect that to be something that we iterate on and make improvements on certainly over the course of the next year and perhaps the next two years, just given the breadth of offerings that we have and the number of markets that we provide them in.

Mark Schneider -- Investor Relations

Our next question, and let's go to Dan Salmon at BMO. While Dan is figuring that out, let's go to Justin Patterson at KeyBanc.

Justin Tyler Patterson -- KeyBanc Capital Markets -- Analyst

On Vimeo, could you frame how we should think about the pace of sales and marketing investments, given the success you're seeing in the enterprise, the return in the self-serve channel and what sounds like a TAM that's expanded? And then quickly on Dotdash, you mentioned looking to add more brands to the portfolio. Should we think of that as more within the existing verticals or looking to enter new categories?

Joey Levin -- CEO

Vimeo investment, I think it's really across everything. And I think that we're going to try and accelerate, so really collaborate from everything. Product and R&D, we're hiring people as fast as we can in product and R&D. And I think we have a very exciting list of things of products to develop. And I just mentioned screen recording which came out in the last few weeks. But we've got a really long list of things that we think are going to work in the enterprises that we've already entered, let alone new enterprise. So definitely, R&D. Sales, yes, we think we've got the returns. We know we've got the returns on incremental salespeople. And we know we're not in a bunch of markets where there are big bases of customers, like APAC and Europe, and we're adding those salespeople, now I think we just did add a couple in APAC and one in Europe. But we're going as fast as we can there, too. And in marketing, when you have 5:1 return, you want to keep pushing that. We've been growing our marketing spend. You can't really grow it immediately to infinity. It doesn't work that way. And we always ask that question and we always try and push to that end, but it doesn't work that way because you've got to find the new marketing channels and test the new marketing channels and you end up burning a lot of money if you push that too fast. But we are going to look to spend more in marketing to drive the self-serve. And I think we're seeing really nice conversion right now, which allows us to spend healthily. I don't know if that conversion holds post pandemic. I think that we're not seeing it, that conversion weaken yet. In fact, we've seen conversion strengthen. But that will be a question in terms of how much we can push that spend. But right now, we're pushing it. And we're certainly seeing the retention, the stickiness hold, which is what's most encouraging. In terms of Dotdash acquisitions, I think the bias is definitely -- just as it is with IAC, the bias is definitely in verticals where we already are. We've been able to do those quickly, effectively and where we're able to, I think, capture a lot more margin in those examples. But we'll definitely look at new verticals, too. There's not a particular vertical right now that I'd say it's in our mind that we covet to enter. But I think the priority will be on the existing verticals. And if we find one, we'll -- if we find one outside there, we'll act on it. It's just less likely.

Mark Schneider -- Investor Relations

And we'll try Dan Salmon again.

Daniel Salmon -- BMO Capital Markets -- Analyst

So Joey, I wanted to return back to Vimeo as well. Products evolved a lot. You talked about the live streaming, one-to-many streaming. You also talked about how YouTube clearly [isn't a competitor]. We're all here on Zoom. I guess some of us are still figuring out how to use it properly. But is that a competitor? Is Zoom a competitor? Just to maybe review broadly what your competitors these days and how you look at it. And then for you, the letter has an interesting tidbit there about how you're currently getting about $5 of profit for every $1 of marketing. We know the IAC way, you're going to lean in to that metric until it doesn't make sense anymore. What do you think the runway is on that?

Joey Levin -- Chief Executive Officer

Yes. On competitors, I think Zoom is not a competitor today technically, but I do think it's probably highly likely that they become one or we become one, one way or the other. There's a lot of differences right now. We're -- Zoom is a fantastic product and we're using Zoom right now and we're happy to be using Zoom right now. I mean there's -- it's just amazing what they've built and how well they've done it and how much we, in our organization and most organizations I know, are relying on it. It's fantastic. And the reason we're using it is they've got this interactive communication video thing nailed. And to do that, they made compromises on other things, but they've just done it perfectly. And I think they're going to continue to get better at that. And I think that they're -- that we'll hopefully be able to continue to use them for events like this. We're also actually using Vimeo right now because we're going to record this event. We're going to put this event up on our website. And we're going to use an embedded Vimeo player to do that. And by the way, we can also add a bunch of graphics if we want. For those who didn't follow Mark's instructions on the logos, we could maybe add those back in or other things like that to make the video and finish it. And that's just a different product and a different skill set. Not to say that they can't do this, it's just something they're not doing today. And so this event and this company, as a perfect example, is using both and using both in a very complementary way very successfully. The other thing is video quality. So we're able to do different things on video quality because we're not doing the 2-way and -- or multiway communication there. And so we're able to broadcast video at a much higher-quality level, which is something that things like musicians and other presentations are going to really -- do really appreciate and has always been a differentiator for Vimeo. So I think that the best way to think about it is Zoom today -- and obviously, any of these things can change on our side or on their side. But Zoom is for that more ephemeral communication and they've just -- they're 10 out of 10 on that. And Vimeo is more for that permanent communication. And that's where we're really focused on all the things pertinent to that, like graphics and switching scenes and what you're able to do with the video after it's done. And those things are really important. Was there another question?

Daniel Salmon -- BMO Capital Markets -- Analyst

Trend on the marketing spend.

Joey Levin -- CEO

Oh, right, on the marketing spend. Yes, you're right. We're going to try and push that. I don't know what the limits are. I was saying earlier to Justin, the question is kind of how the things that feed into that change. I feel very good about LTVs and retention long term and those things holding. Conversion is doing very well right now. I don't know whether that holds or not, meaning I think that the compelling Vimeo story is as compelling as it could be today, given the broader environment. I think those dynamics should stick for a long time. But I wouldn't swear that conversion will hold where it is right now as we push the marketing spend. And then it's channels of where you could spend. And I think we're not spending nearly either geographically on a map or nearly geographically on platforms at levels that we'd imagine we could spend. It's in aggregate, when we look at the spend, it's a pretty small number from our perspective relative to the market size and relative to scale we've seen, we've been able to spend in other areas with similar market sizes. So hopefully, there's still quite a bit left in there.

Mark Schneider -- Investor Relations

So let's do one more because we're out of time. Michael Ng from Goldman.

Michael Ng -- Goldman Sachs Group -- Analyst

I just had a follow-up on the service professional constraints on ANGI. Given that one of the challenges you guys cited was there being actually too much demand for service providers outside of ANGI, could we perhaps unusually see improved revenue trends at ANGI if industry home service demand begins to wane and normalize? And how would you characterize the optimal home services demand environment for ANGI?

Brandon Ridenour -- Chief Product Officer

Yes. That's a great question. I mean, obviously, any environment without a pandemic and without the associated challenges that come with it would be much better for us. There are really two issues. One is the just sort of huge surge in consumer demand. Obviously, as that moderates, these companies will have more appetite for paying to meet new customers, to put it simply. And so it's a question of when that moderation happens. And from our perspective, I think when people can get out of their house and resume normal lives, I think we would expect to see that moderation occur. But there's another side of it, too, which is just the operations of these companies are impaired to a degree. And what that means is they are having challenges with staffing. They're having challenges with hiring. They're having challenges with supply chain around materials and parts. It's taking them longer to do a job. So I think if you talk to a lot of the companies in this industry, even though they're busy, they're not necessarily killing it. This is a tough environment to operate. And so that, too, is obviously driven by the pandemic and we would expect that aspect of it to moderate as well. I also think, even in the midst of the pandemic, these companies, they kind of got caught on their back heels here with just something that was completely unexpected in terms of the surge in demand. Hopefully, as we go into the next year and the busy season, we'll see these companies staff up and react to the market opportunity. These are profit motive-driven companies and they will scale where the opportunity allows them to and they'll have more time to do that. So I think the answer to your question is absolutely. We clearly saw our -- we've seen our customers pull back their spend. They haven't left our platform for the most part. They're still here. These are longer-term customers, bigger spenders, more successful companies. They've pulled back. We expect them to bring that spend back to the marketplace. It's only a question of when. And I think our best guess right now is to think about that as being associated with normalization of these sort of pandemic effects.

Joey Levin -- CEO

Thank you, all. This was great. Sorry we kept you overtime. Hopefully, next time we're together, we'll know who the President is and things will be a little brighter.

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Thank you. Happy Friday all.

Duration: 63 minutes

Call participants:

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Joey Levin -- CEO

Mark Schneider -- Investor Relations

Joey Levin -- Chief Executive Officer

Glenn H. Schiffman -- Executive Vice President and Chief Financial Officer

Brandon Ridenour -- Chief Product Officer

John Blackledge -- Cowen & Company -- Managing Director And Senior Research Analyst

John Ryan Blackledge -- Cowen and Company -- Analyst

Brian Nicholas Fitzgerald -- Wells Fargo Securities -- Analyst

Cory Alan Carpenter -- JPMorgan Chase -- Analyst

Bradley D. Erickson -- Needham & Company -- Analyst

Brent John Thill -- Jefferies LLC -- Analyst

Jason Stuart Helfstein -- Oppenheimer & Co -- Analyst

Ross Adam Sandler -- Barclays Bank PLC -- Analyst

Eric James Sheridan -- UBS Investment Bank -- Analyst

Nicholas Freeman Jones -- Citigroup Inc -- Analyst

Youssef Houssaini Squali -- Truist Securities -- Analyst

Justin Tyler Patterson -- KeyBanc Capital Markets -- Analyst

Daniel Salmon -- BMO Capital Markets -- Analyst

Michael Ng -- Goldman Sachs Group -- Analyst

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