ANGI Homeservices Inc (ANGI)

History and Background

ANGI Homeservices Inc. (now Angi Inc.) was formed in 2017 through the merger of Angie's List and HomeAdvisor. Angie's List was founded in 1995, while HomeAdvisor was founded in 1998 as ServiceMagic. The merger aimed to create a leading digital marketplace for home services.

Core Business Areas

• Marketplace: Connects homeowners with service professionals for a wide range of home services through platforms like Angi.com and HomeAdvisor.com. Generates revenue through lead generation, advertising, and service bookings.
• Membership: Offers a membership program (Angi Key) that provides homeowners with exclusive benefits, such as pre-screened service pros, discounts, and project coordination services. Provides recurring revenue.
• Services: Angi also directly offers services to consumers

Leadership and Structure

As of the last update, Joey Levin serves as the Chairman and CEO of Angi Inc. The company has a typical corporate structure with various departments including technology, marketing, finance, and operations.

Key Offerings

• Angi.com: A digital marketplace that connects homeowners with service professionals. Competitors include Thumbtack and TaskRabbit. Revenue figures are not typically broken out, but form the bulk of Marketplace revenue. ANGI has ~20% market share of this $500B dollar marketplace, depending on the specific segment of the market being analyzed. Top competitors Thumbtack and Yelp.
• HomeAdvisor.com: Another digital marketplace connecting homeowners with service professionals. This platform focuses on larger projects and includes features for project planning and cost estimation. Competitors include Thumbtack and Porch. Revenue figures are not typically broken out, but form a significant portion of Marketplace revenue.
• Angi Key: A membership program offering exclusive benefits such as discounts, project coordination, and access to top-rated professionals. The primary competitor is individual service providers offering similar benefits. Revenue contribution is increasing, but not broken out.

Industry Overview

The home services industry is large and fragmented, undergoing a shift towards digitization. Key trends include the increasing adoption of online platforms for finding and booking services, and the rise of mobile technologies. Covid-19 accelerated the shift from offline to online services and home imporvement projects, which benefitted companies like ANGI.

Positioning

ANGI Homeservices Inc. (Angi Inc.) is a leading player in the digital home services marketplace, connecting consumers with service professionals. ANGI has a strong brand recognition due to its heavy investment into marketing and advertising spend. ANGI is also making large bets on moving from a lead-generation model to a services model, where it directly facilitates transactions between consumers and service providers. However, a challenge for ANGI will be competing with small contractors who have their own loyal base of customers.

Total Addressable Market (TAM)

The estimated TAM for the home services market in the US is around $500 billion. Angi Inc. is positioned to capture a significant portion of this market by offering a convenient and efficient platform for homeowners and service professionals. By implementing a services model, Angi Inc. has the potential to realize a much larger revenue per consumer.

Key Competitors

• MTCH
• YELP
• THUM

Competitive Landscape

Angi Inc. competes with a variety of players, including other online marketplaces (e.g., Thumbtack, TaskRabbit, Yelp), traditional home service providers, and emerging platforms. Angi's advantages include its brand recognition, large network, and data analytics capabilities. Disadvantages include customer acquisition costs and service quality control challenges.

Handy

• Year: 2018
• Acquisition Price (USD millions): 144
• Strategic Rationale: Expanded ANGI's capabilities in on-demand home services and improved its reach to a wider customer base.

Historical Growth: Historical growth has been driven by increasing adoption of online home services marketplaces and strategic acquisitions.

Future Projections: Future growth projections depend on various factors, including market conditions, competitive landscape, and the success of strategic initiatives.

Recent Initiatives: Recent initiatives include the transition to a services-based model, investment in technology and marketing, and expansion into new geographic areas and service categories.

ANGI Homeservices, now Angi Inc., is a major player in the digital home services marketplace, benefiting from strong brand recognition and a large network of service professionals. The company is aggressively transitioning from a lead generation to a service-based model, presenting significant growth potential. ANGI faces challenges in managing service quality, increasing customer acquisition costs, and fierce competition, particularly from smaller, local contractors and Yelp. While historically not a dividend payer, their focus remains on growth and market penetration.

Data Sources:

• Company reports (SEC filings, investor presentations)
• Industry analysis reports
• News articles
• Third-party data providers (e.g., Yahoo Finance)

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change. Conduct your own due diligence before making any investment decisions.