HomeAdvisor moved into the black in the first quarter from the year-earlier period, posting $1.9 million in operating income vs. a $4 million loss during 2015's opening three months, HomeAdvisor's parent company, IAC, reported today.
That profit was powered by a 47% increase in revenue to $111.5 million, IAC's SEC filing said. Domestic business grew 59% to $94.3 million and international sales rose 13%, IAC said. Service requests grew by 51% to roughly 2,7 million, and the number of paying professionals jumped 45% to total roughly 116,000.
IAC owns a suite of technology services and apps, including Match.com, Tinder, Ask.com, Vimeo, Investopedia, and The Daily Beast. In an unusual letter to shareholders attached to the financial report, the company said it regards HomeAdvisor as one of the most promising parts of its portfolio and that it plans to keep investing in it.
IAC has spent about $80 million in TV marketing for HomeAdvisor since 2013, it said, and its TV spend in the first quarter was 70% higher than in the year-earlier period. Meanwhile, IAC said it has plowed $150 million into sales force development since 2013. It said it will continue marketing to grow brand awareness, will add salespeople for reaching out to more service providers, will expand internationally, and will continue working on innovations--particularly mobile ones.
"With 10% unaided awareness, we have opportunity to expand," IAC said. "Aided awareness has more than doubled since last year to 50%, but when we look at the competitive set, and the relative strength of our product, we know we can do better. Television marketing is still delivering what we estimate to be about $1.30 in revenue within a year for every $1 we spend. ... [O]ur Instant Connect and Instant Booking products are the best consumer and service professional experience in the industry, and we can see it in our strongly positive Net Promoter Scores. Instant Connect and Instant Booking now represents about 10% of the domestic business overall, and will continue to grow."