Home Services Home Services CEO of Angie’s List and HomeAdvisor Parent
Home Services - May 16, 2019

CEO of Angie’s List and HomeAdvisor Parent

ANGI HomeServices (ANGI – Get Report) is relaxed making business choices that weigh on this year’s income in the event that they positioned the organization on the better long-term footing and assist clients to get greater value from its structures, CEO Brandon Ridenour stated following his agency’s modern-day income file.

ANGI is the parent corporation of top U.S. Home services marketplaces HomeAdvisor and Angie’s List, and a subsidiary of Barry Diller’s InterActiveCorp (IAC – Get Report). Its shares have sold off after a blended Q1 record arrived on Wednesday afternoon. GAAP EPS of $zero.02 beat a consensus estimate of bad $zero.01, however revenue of $303.Four million (up 22% annually on a pro forma foundation) missed a $306 million consensus.

The sales omit accompanied a Q1 selection — explained in IAC’s Q1 shareholder letter — to reduce marketing spending that became generating $50 million in annualized sales via carrier requests, after ANGI concluded the requests were not leading to enough jobs for home provider companies.

In spite of the sales omit, ANGI reiterated full-year steerage for 25% revenue boom. At the same time, the corporation guided for full-year running income of $one zero five million to $a hundred twenty five million — underneath a consensus of $127 million — because it pushes beforehand with plans to invest aggressively in HomeAdvisor and Angie’s List, and to step up investments in residence cleaning and handyman offerings company Handy and domestic guarantee provider Fixed Repair (each had been obtained inside the remaining seven months).

Following ANGI’s document, I had a chance to talk with Ridenour, who remaining October turned into named ANGI’s CEO after previously serving as chief product officer. Recently-appointed CFO Jamie Cohen, whom I interviewed in March, became additionally present. Here is a study awesome remarks made for the duration of the communicate on numerous subjects.
HomeAdvisor Priorities and Usage Trends

Ridenour careworn that ANGI, which saw annual increase for the number of paying service experts on HomeAdvisor and Handy slow to fourteen% from a Q4 degree of 18%, is targeted on developing carrier issuer potential (i.E., the quantity of jobs that may be collectively fulfilled through provider companies on its systems) in place of its service provider rely. To lower back up his point, he mentioned that revenue in keeping with provider changed into up 15%, something said to be a reflection of improved capacity.

Regarding a slowdown inside the increase rate for provider requests made thru HomeAdvisor and Handy to fifteen% from a Q4 level of 24%, Ridenour says hard annual comparisons had an impact, as did ANGI’s efforts to awareness on “higher-cost” provider categories in preference to low-value/high-extent categories which includes cleansing and handyman services. He additionally referred to ANGI moderated its marketing spend a final year, and that at the same time as spending picked up in Q1, it takes time for that spending to translate into more consumer pastime.
Returning Angie’s List to Growth

Much as Cohen became in March, Ridenour sounded positive that Angie’s List, which is monetized thru the sale of ads to provider carriers and top rate subscriptions to consumers, will go back to sales boom. He referred to Angie’s List recently had the nice income month in its records and is seeing larger carrier company debts spend greater than they’ve traditionally. ANGI’s “Advertising & Other” revenue, that is driven in massive component by means of Angie’s List, fell four% annually in Q1 to $sixty two.1 million, after having dropped 7% in Q4. The wide variety of provider experts marketing on Angie’s List fell by way of five,000 annually to 36,000, however, become flat on a sequential basis.
Unmonetized HomeAdvisor Service Requests

On the Q1 income call, Ridenour referred to that ANGI, which monetizes HomeAdvisor via charging carrier vendors a membership charge and a price for every lead they achieve, nonetheless does not monetize a “massive minority” of the provider requests it sees. When requested approximately this, he stated the difficulty is actually a be counted of no longer having sufficient provider-company potential for a particular kind of activity in a particular market.

“What it comes down to is America is a completely massive place,” he said while including that ANGI supports over six hundred types of providing jobs and covers each U.S. Zip code. He also said that HomeAdvisor’s 2018 introduction of a platform that lets service carriers choose into accepting service requests helped lower the number of unmonetized requests, but most effective affected a minority of such requests.
Growing Sales and Marketing Investments

In spite of the formerly-cited reduce to advertising and marketing spending that became generating leads that were not resulting in many carrier jobs, ANGI’s income and marketing spend rose 27% annually in Q1 to $175.3 million, after having dropped barely in Q4. Ridenour reiterated ANGI’s plans to invest closely in HomeAdvisor advertising this year to pressure extra growth — the organization’s Marketplace sales, that is dominated by means of HomeAdvisor, rose 33% in Q1 to $219.Nine million.