Slide 1: ANGI Homeservices
ANGI HOMESERVICES @MHomedAdvisor angick list feed CED Aten «= MyHlammer — Builder... QWerkspot QInstapro August 2020
Slide 2: Non-GAAP Financial Measures / Metrics; Forward-Looking Statements
NON-GAAP FINANCIAL MEASURES / METRICS This presentation contains references to non -GAAP measures. These measures should be considered in conjunction with, but not as a substitute for, financial information presented in accordance with GAAP. The reconciliations between GAAP measures and non -GAAP me
Slide 3: Company Overview
Company Overview
Slide 4: Mission
Mission Turning home improvement jobs imagined into jobs well-done 4
Slide 5: ANGI Addresses a Large, Fragmented Industry with Low Digital Penetration
ANGI Addresses a Large, Fragmented Industry with Low Digital Penetration ~120M 2-3M o ccu p ied h ou seh o ld s in th e Ser vice Pr ofession al s U.S. with m illen n ia l (SPs) in th e U.S. $500B h o m eown er sh ip in cr easin g Total Addressable Market (1) 6-8 <20% jo b s p er year = typ ical of
Slide 6: Another Multibillion Dollar Marketplace
Another Multibillion Dollar Marketplace (1) (2) (3) (4) (5) (6) (7) (8) Vertical Home Services Rentals Ride Sharing Travel Real Estate Food Delivery eCommerce eCommerce Total Addressable Market by $500B $150B $200B $603B $87B $250B $100B $2.3T Segment Gross Transaction ~$20B $29B $36B $96B $7B $5B $
Slide 7: The #1 Home Service Marketplace
The #1 Home Service Marketplace #1 in Revenue #1 in Service Pro Network #1 in Sales Force Size #1 in Service Requests #1 in Fixed Price (Only national platform) Note: Rankings are based on internal HomeAdvisor studies and estimates regarding its competitive position and landscape 7
Slide 8: Marketplace Overview
Marketplace Overview The easiest way to find and hire the best home service professionals ▪ 500+ tasks (200+ offer a fixed price solution) ▪ 12% U.S. Homeowners served in 2019 (1-2 jobs per household per year) ▪ Transparent pre-priced services, in -app scheduling, payments and guaranteed service lev
Slide 9: Marketplace Matching ROI for Service Professionals
Marketplace Matching ROI for Service Professionals SP pays ~$30 - $35 ~$2K - $3K per match Average Job Value SP wins 1 out of ~4 - 5 jobs ~$120 - $175 ~14x - 17x ROI Job Value/Investment total investment per job $1 of advertising spend yields ~$14 -$17 of job value 9
Slide 10: Consistent Growth Over Time
Consistent Growth Over Time Marketplace Service Marketplace Monetized Marketplace Transacting Requests Transactions Service Professionals 8M 5M 200K 6M 150K 4M 3M 100K 2M 50K 0M 0M 0K Q1'15 Q4'16 Q3'18 Q2'20 Q1'15 Q4'16 Q3'18 Q2'20 Q1'15 Q4'16 Q3'18 Q2'20 Marketplace Revenue Marketplace Revenue per
Slide 11: Advertising & Other Overview
Advertising & Other Overview Best directory of highly rated local pros for any home project ▪ Extensive free resource for researching highly rated pros nationwide ▪ Advertising SP monthly retention rate 95%+ ▪ More than 10M verified customer reviews $262M 37K LTM Reven u e Ad ver tisin g Ser vice Pr
Slide 12: Europe Overview
Europe Overview Market leading brands operating in 6 Western European countries ▪ #1 brand in Germany (MyHammer), Netherlands (Werkspot) and France (Travaux); #2 in UK (MyBuilder) ▪ Aligning business models to optimize execution $73M 6 LTM Reven u e Cou n tr ies 12
Slide 13: Business Strategy
Business Strategy
Slide 14: Innovative Services Are Pushing Consumers to Expect More
Innovative Services Are Pushing Consumers to Expect More Shopping Any product delivered, anywhere Car Service On-demand car service Home Share On-demand home sharing Real Estate An instant offer on your home Family Care On-demand child and senior care Car Sharing On-demand car sharing On-demand home
Slide 15: ANGI Homeservices is Bringing the Home Services Category Online
ANGI Homeservices is Bringing the Home Services Category Online 1995 2004 2012 2019 Future Directory Lead Gen Marketplace Matching Marketplace Transacting Opportunities An gie’s List is IAC acq u ires ServiceMa gi c relau n ch ed as Pre-p riced service s for Su b scrip tion s fou n d ed Service
Slide 16: Fixed Price Service
Fixed Price Service Help for any home project is at your fingertips. Upfront Transparent Pricing Pre-p riced p rojects mean s n o h agglin g or n egotiatin g. Always get a fair p rice. Simple Scheduling Pros availab le wh en you n eed th em. No more ch asin g q u otes or p layin g p h on e tag. Guar
Slide 17: Fixed Price Paves the Path Toward Always Available
Fixed Price Paves the Path Toward Always Available Able to deliver a solution for 100% of Service Requests Always Reliable 100% satisfaction with project outcomes Always Easy A service experience that is fast and frictionless Jobs fulfilled at the touch of a button 17
Slide 18: Fixed Price Strengthens the Marketplace Model
Fixed Price Strengthens the Marketplace Model Marketing Efficiency 1 More loyal customers ▪ An average customer submits ~1.7 service requests in their first year Service Repeat (higher on mobile app) Request Usage Quality ▪ Fixed price increases service requests per customer well beyond the Liquidit
Slide 19: Financial Overview
Financial Overview
Slide 20: Company Highlights
Company Highlights Clear Industry Leader ▪ ANGI is the leading player in the $500B U.S. Home Services industry with a single digit share ▪ There are ~120M occupied households in the U.S. that each complete 6 -8 jobs per year ▪ 80%+ of home service projects are fulfilled offline through word of mouth
Slide 21: ANGI Homeservices Revenue Mix
ANGI Homeservices Revenue Mix 76% Marketplace Revenue ▪ Marketplace revenue includes: - Consumer connection revenue, which consists of fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and fe
Slide 22: ANGI Has Natural Hedges to Economic Downturns
ANGI Has Natural Hedges to Economic Downturns ▪ Highly diversified - 500 tasks - 400 geographies; no single geography represents more than single digit share of the total - No task or customer represents more than single digit share of the total ▪ The key drivers of the business are complementary -
Slide 23: 2020 Results Demonstrate Resilience of the Business
2020 Results Demonstrate Resilience of the Business (y/y growth) Marketplace Service Marketplace Monetized Marketplace Transacting Advertising Service Requests Transactions Service Professionals Professionals 7% 34% 27% 24% 11% 5% 8% 10% 8% 8% 7% 4% 11% 13% 4% 5% 4% 5% 4% 4% 4% 3% 3% 4% (12%) (8%) (
Slide 24: Historical Financials
Historical Financials (In M’s) Revenue, As Reported Adjusted EBITDA, As Reported 9.8 13.2 18.1 23.5 27.6 29.1 5% 9% 5% 22% 15% 15% $248 Marketplace Service $1,398 Adjusted EBITDA Requests $1,326 Margin $202 $206 $1,132 $736 $499 $361 $45 $39 $17 2015 2016 2017 2018 2019 LTM Q2'20 2015 2016 2017 2018
Slide 25: Appendix
Appendix
Slide 26: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES ANGI Homeservices (“ANGI”) reports Adjusted EBITDA as a supplemental measure to GAAP. This measure is one of the primary met rics by which ANGI evaluates the performance of its businesses, on which ANGI's internal budgets are based and by which management is compensated.
Slide 27: GAAP to Non-GAAP Adjusted EBITDA Reconciliation
ANGI Homeservices Inc. GAAP to Non-GAAP Adjusted EBITDA Reconciliation (In M’s) 2015 2016 2017 2018 2019 LTM 6/30/20 Revenue, As Reported (GAAP) $361.2 $498.9 $736.4 $1,132.2 $1,326.2 $1,397.6 Operating Income (Loss) (GAAP) $(1.6) $24.1 $(147.9) $63.9 $38.6 $32.2 Stock-Based Compensation $7.9 $8.9 $
Slide 28: Metrics Definitions
Metrics Definitions • Advertising & Other Revenue includes Angie’s List revenue (revenue from service professionals under contract for advertising and membership subscription fees from consumers) as well as revenue from mHelpDesk and HomeStars. • Advertising Service Professionals is the number of An