Back in late 2018, ANGI Home Services acquired Handy Technologies, and along with it its Irish-born and Harvard-educated founded Oisin Hanrahan. Once the acquisition closed, Hanrahan took on the role of chief product officer at ANGI. This week, he made the leap to become ANGI’s CEO and a member of its board.
ANGI itself is the progeny of the merger of Angie’s List and Home Advisor. And the combined company sits within the IAC group of companies. ANGI has a pretty decent 2020, reporting 11% revenue growth to $1.47 billion, with a net loss of $6.3 million. ANGI has about 250,000 home services pros on its platform, and facilitating about 30 million projects, according to the company. ANGI’s revenue growth was solid. But it’s notable that after all these years, profits remain elusive in the home services matchmaking space.
Unlike dining, travel, and entertainment, the home services industry was a clear pandemic winner. With so many professionals suddenly stuck at home, time, energy, and budget shifted to home improvement. After all, income that might have gone to dining out or travel was suddenly available. And, of course, as executives suddenly spent way more time at home, they were motivated to improve their surroundings. Companies like ANGI, Thumbtack, and others were well-positioned for the moment.
Why This, Why Now?
The immediate question emerging from this news involves why ANGI made this move now. Hanrahan replaces Brandon Ridenour, who assumed the CEO role in late 2018 after several years as CTO and head of product.
We suspect ANGI wants a stronger product focus. Companies like ANGI, Thumbtack, and others arguably have a stronger future as a solutions provider to home services pros than as a source of leads. As we’ve seen around the local industry, companies have been moving away from lead generation and towards SaaS. Just yesterday, for example, we wrote about a home services software company called Workiz that raised $13 million to build out its field services SaaS platform. We also covered this week’s news of Yelp’s ongoing effort to roll out SaaS-like tools for restaurants in a gradual pivot away from leads. SaaS is where the sustainable business model lies. Lead generation is a business that generally produces diminishing returns.
What remains to be seen is where the product emphasis will go. Will ANGI focus on tools for contractors? Or will it focus on creating new solutions for homeowners? We suspect it wil be both, though the language of the announcement focused more on homeowners.
Hanrahan had this to say.
“I’m really excited for the opportunity to lead ANGI at this inflection point. As we’ve all spent extra time at home over the last year it’s clearer than ever how important our physical space is in our daily lives, and ANGI’s mission to help people love where they live is more relevant than ever. I’m grateful to the board and energized to work with our talented team to help ANGI become the home for everything home.”
New Roles Created
Hanrahan’s ascension to CEO includes two new senior executive roles. Bryan Ellis, Executive Vice President of Operations at ANGI Homeservices is now Chief Revenue Officer – Marketplace. He will oversee the company’s leads and advertising products. Umang Dua, co-founder and Chief Operating Officer at Handy, is now Chief Revenue Officer – ANGI Services. He will lead ANGI’s pre-priced product offering.
Said Mr. Hanrahan, “With talented and seasoned leaders like Bryan and Umang now dedicated to the core drivers of our business, we’ll be in a position to move faster and deliver more value to homeowners than ever before.”