Angi Stock

Angi Inc. (Angi) connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping.

During the year ended December 31, 2022, over 220,000 domestic service professionals actively sought consumer leads, completed jobs or advertised work through Angi Inc. platforms. Additionally, consumers turned to at least one of the company’s businesses to find a service professional for approximately 29 million projects during the year ended December 31, 2022.

Segments

In the fourth quarter of 2022, the company’s segment presentation was changed to reflect out four operating segments, which now include: Ads and Leads, Services, Roofing, and International (includes Europe and Canada); and the various businesses within those segments operate under multiple brands, including Angi, HomeAdvisor, Handy, Total Home Roofing, Angi Roofing, MyBuilder, and Travaux.com.

Domestic Businesses

In the United States, the company, through several differentiated experiences, provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matching consumers with independently established home services professionals engaged in a trade, occupation and/or businesses that customarily provides such services and provides consumers with tools to communicate with service professionals and pay for related services: an Ads and Leads experience where service professionals pay for connections to consumers; a Services experience where consumers make payment through the Angi platform for a specific job and the Angi platform assigns that job to a service professional who completes it and receives a portion of the job fee; and a Roofing business that provides roof replacement and repair services directly to consumers.

Ads and Leads Overview

This business connects consumers with service professionals for local services through the company’s nationwide online directory of service professionals across more than 500 service categories, as well as provides consumers with valuable tools, services and content (including verified reviews of local service professionals), to help them research, shop and hire for local services. Consumers can access the company’s nationwide online directory and related basic tools and services free of charge upon registration, as well as by way of purchased membership packages. The company’s Ads business also sells term-based website and mobile and digital magazine advertising to service professionals, as well as provides them with quoting, invoicing, and payment services. The company’s Leads digital marketplace service connects consumers with service professionals nationwide for home repair, maintenance, and improvement projects. The company’s Leads business provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, as well as instantly book appointments online, connect with service professionals instantly by telephone, and access several home services-related resources, such as cost guides for different home services projects.

Consumer Services

Consumers can search for a service professional in the company’s nationwide online directory and/or be matched with a service professional through the company’s digital marketplace and certain third-party affiliate platforms. They also have access to related basic tools and services, ratings, reviews, and certain promotions. This includes consumers access to Angi’s online True Cost Guide, which provides project cost information for more than 400 project types nationwide, as well as a library of home services-related content consisting primarily of articles about home improvement, repair and maintenance, tools to assist consumers with the research, planning and management of their projects and general advice for working with service professionals.

Matches are made by way of the company’s proprietary algorithm, based on several factors (including the type of services desired, location and the number of service professionals available to fulfill the request). Depending on the nature of the service request and the path through which it was submitted, consumers are generally matched with service professionals from the Leads digital marketplace, a Services service professional or a combination of Ads and Leads service professionals (as and if available for the given service request). In all cases, service professionals may contact consumers with whom they have been matched with directly and consumers can generally review profiles, ratings and reviews of presented service professionals and select the service professional whom they believe best meets their specific needs. Consumers are under no obligation to work with any service professional(s) referred by or found through any Angi branded or third-party affiliate platform. Consumers are responsible for booking the service and for paying the service professional directly, which can be done by consumers independently.

Consumers can rate Angi service professionals listed in the company’s nationwide directory on a one- to five- star rating scale based on a variety of criteria, including overall experience, availability, price, quality, responsiveness, punctuality and professionalism and other criteria, depending on the type of service provided. Ratings on each applicable criterion are weighted across all reviews submitted for the service professional to produce such professional’s overall rating on Angi. Consumers can also provide a detailed description of their experiences with service providers. Ratings and reviews cannot be submitted anonymously, and there are processes in place to prevent service professionals from reporting on themselves or their competitors, as well as to detect fraudulent or otherwise problematic reviews.

Service Professional Services

The company’s Ads and Leads business sells term-based website, mobile, and magazine advertising to certified service professionals, as well as provides them with a variety of services and tools, including quoting, invoicing, and payment services. In order to become a certified service professional in the Angi network, service professionals must satisfy certain criteria. Generally, service professionals with an average consumer rating below a ‘3’ are not eligible for certification. In addition to retaining the requisite member rating, service professionals must validate their home services experiences and the owners or principals of businesses affiliated with service professionals must pass certain criminal background checks and attest to applicable state and local licensure requirements.

Once eligibility criteria are satisfied, service professionals become certified and can purchase term-based advertising contracts and be matched with consumers. If a certified service professional fails to meet any eligibility criteria during the applicable contract term, refuses to participate in the company’s complaint resolution process, and/or engages in what the company determine to be prohibited behavior through any Angi platform, existing advertising and exclusive promotions will be suspended, and the related advertising contract will be subject to termination.

Certified service professionals rotate among the first service professionals listed in the company’s nationwide online directory search results for an applicable category (together with their company name, overall rating, number of reviews, certification badge and basic profile information), with non-certified service professionals appearing below certified service professionals in directory search results. Certified service professionals can also provide exclusive promotions to members. When consumers choose to be matched with a service professional, the company’s proprietary algorithm will determine where a given service professional appears within related results.

Service professionals pay fees for consumer matches, at their election, and subscription fees for Leads memberships, which are available for purchase through the company’s sales force. The basic annual membership package includes membership in the company’s digital marketplace, as well as access to consumer matches (for which additional fees are generally paid) and a listing in the company’s online directory and certain other affiliated directories. Basic annual membership also includes a business profile page on HomeAdvisor.com and Angi.com, a mobile application and access to various online tools designed to help service professionals more effectively market to, manage and connect with, consumers with whom they have been matched.

Once a member, service professionals must maintain at least a three-star customer rating. If a service professional fails to meet any eligibility criteria during the membership term, refuses to participate in the complaint resolution process, or engages in what the company determine to be prohibited behavior through any Angi platform, the service professional is subject to being removed from the Angi network.

Services Overview

Through the company’s Services business, the company provides a pre-priced offering service, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly. When consumers request household services directly through Services platforms, requests are fulfilled by independently established home services providers engaged in a trade, occupation and/or business that customarily provide such services.

Consumer Services

Consumers can submit requests for work to be done on the Handy and Angi platforms and referrals will be made based on the type of service desired, location and the date and time the consumer wants the service to be provided. In addition, consumers who purchase furniture, electronics, appliances and other home-related items from select third-party retail partners online (and in certain markets, in store) can simultaneously purchase assembly, installation and other related services to be fulfilled by Services service professionals, which are then paid for by the consumer directly through the applicable third-party retail partner platform.

Service Professional Services

Services service professionals are provided with access to a pool of consumers seeking service professionals and must validate their home services experiences, as well as attest to holding the requisite license, and maintain an acceptable rating to remain on Services platforms. In addition, the owner(s) or principal(s) of such service provider must pass certain criminal background checks. Access to Service platforms will be revoked for service professionals that repeatedly receive low customer satisfaction ratings.

Roofing Overview

The business within the company’s Roofing segment provides roof replacement and repair services, primarily in Florida (and, to a lesser extent, in Arizona and Texas). Requests for roof replacement and repair services are fulfilled via Angi Roofing, LLC, the entity that was formed by Angi in July 2021 to acquire certain assets and liabilities of Total Home Roofing, LLC.

Consumer Services

Roofing consumers are identified through lead generation services, as well as organically through consumers that reach out directly, who are able to receive roof replacement services.

Service Professional Services

Angi Roofing contracts with independent roofing professional in each market to fulfil the services.

International Businesses

Through the International (Europe and Canada) segment, Angi Inc. also operates several international businesses that connect consumers with home service professionals, including Travaux, MyHammer and Werkspot, leading home services marketplaces in France, Germany and the Netherlands, respectively; MyBuilder, one of the leading home services marketplaces in the United Kingdom; the Austrian operations of MyHammer; the Italian operations of Werkspot; and Homestars, a leading home services marketplace in Canada. Angi owns controlling interests in Travaux, MyHammer, Werkspot and MyBuilder and wholly owns Homestars. The business models of the international businesses vary by jurisdiction and differ in certain respects from the business models of Angi’s various domestic businesses.

Revenue

Ads and Leads Revenue is primarily derived from consumer connection revenue, which is consisted of fees paid by service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service); advertising revenue, which includes revenue from service professionals under contract for advertising; and membership subscription revenue from service professionals and consumers. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered, and geographic location of service. Services is primarily consisted of revenue from jobs sourced directly through the platform and through retail partnerships and completed by a service professional assigned by the company’s platform. Roofing is consisted of revenue from roofing projects. International is primarily consisted of revenue from consumer connection revenue for consumer matches and membership subscription from service professionals and consumers.

Marketing

In March 2021, the company changed its name to Angi Inc. and updated one of its leading websites and brands, Angie’s List, to Angi, and concentrated its marketing investment in the Angi brand in order to focus its marketing, sales, and branding efforts to a single brand.

The company markets its various products and services to consumers primarily through digital marketing (primarily paid and free search engine marketing, display advertising and third-party affiliate agreements) as well as through traditional offline marketing (national television and radio campaigns), and e-mail. Pursuant to third-party affiliate agreements, third parties agree to advertise and promote the company’s various products and services (and those of the company’s various service professionals) on their platforms. In exchange for these efforts, these third parties are paid a fixed fee when visitors from their platforms click through and submit a valid service request through the company’s platforms, or when visitors submit a valid service request on the affiliate platform and the affiliate transmits the service request to the company. The company also markets its various products and services to consumers through relationships with select third-party retail partners and, to a lesser extent, through partnerships with other contextually related websites and direct mail.

The company markets its term-based advertising and related products offered by the company’s Ads business and the matching services and membership subscriptions offered by the company’s Leads business to service professionals primarily through the company’s sales force. These products and services are also marketed together with the company’s Services products and various directories, through paid search engine marketing, digital media advertising and direct relationships with trade associations and manufacturers.

Both generally, and in connection with the brand integration initiative, the company has made (and expect the company will continue to make) substantial investments in digital and traditional offline marketing (with continued expansion into new and existing digital platforms) to consumers and service professionals to promote the company’s products and services and drive visitors to the company’s various platforms and service professionals.

Intellectual Property

The company has several registered trademarks in the United States (the most significant of which relate to the company’s Angi and HomeAdvisor brands), as well as other trademarks in Europe and Canada, and several pending trademark applications in the United States and certain other jurisdictions. The company has also registered a variety of domestic and international domain names, the most significant of which relate to the company’s Angi brand. In addition, the company has one patent that expires in November 2035 and three patent applications pending.

Government Regulation

The company is subject to laws governing marketing and advertising activities conducted by/through telephone, e-mail, mobile devices and the Internet, including the Telephone Consumer Protection Act of 1991, the Telemarketing Sales Rule, the CAN-SPAM Act and similar state laws, as well as federal, state, and local laws and agency guidelines governing background screening.

In addition, the company is subject to various other federal, state, and local laws, rules and regulations focused on consumer protection. These laws, rules and regulations are enforced by governmental entities such as the Federal Trade Commission and state Attorneys General offices and may confer private rights of action on consumers as well.

The company is subject to and pays the Digital Services Tax in the United Kingdom, France, and Italy. Certain of the company’s businesses are subject to digital services taxes in one or more of the jurisdictions listed above and similar proposed tax laws could adversely affect the company’s business, financial condition and results of operations.

History

The company was founded in 2017. It was incorporated in the state of Delaware in 2017. The company was formerly known as Halo TopCo, Inc. and changed its name to ANGI Homeservices Inc. in 2017 and then to Angi Inc. 2021.