HomeAdvisor saw a 650% growth in operating income with a 38% revenue growth in its second quarter.
In its quarterly report, issued July 27, the home contractor and service provider saw in the category of ‘service professionals’ growing to 128,000 paying SPs in their network, up 54% from 69,120 from 2015 2Q.
As HomeAdvisor's parent company, IAC, reports:
Revenue increased 38% to $130.2 million due primarily to 44% growth at the HomeAdvisor domestic business and 16% growth at the HomeAdvisor International business. HomeAdvisor domestic revenue growth was driven by a 54% increase in paying service professionals to approximately 128,000 and a 32% increase in service requests. Operating income increased to $11.9 million versus $1.6 million in the prior year and Adjusted EBITDA increased to $15.0 million versus $4.7 million in the prior year due to the higher revenue, notwithstanding a 32% increase in selling and marketing expenses due to continued investment
As a result, HomeAdvisor is planning on spending over $25 million on operations this year alone to, as HomeAdvisor’s CEO Chris Terril said, “improved satisfaction scores and increased likelihood for repeat business.”
For FY 2016, HomeAdvisor has predicted that, under the current market, it will gain $43-47 million according to their current outlook.