About Glenn Orchard
In a September 2021 CNBC interview, Angi CEO Oisin Hanrahan discussed a shift in consumer behavior toward booking home services through the company's mobile app, comparing it to how consumers use Uber or DoorDash. He reported that Angi's services business generated $55 million in revenue in Q1 2021, a 66% year-over-year increase, achieved without spending on consumer marketing. Hanrahan noted a correlation between Angi's business and the housing market, but said that during the pandemic, many people invested in their existing homes despite low housing activity. He stated that millennials, with $1.8 trillion in excess savings, are increasingly buying fixer-uppers and suburban homes that require immediate renovations, which benefits Angi.
Hanrahan also addressed the company's European operations, saying Angi recently invested in re-platforming its technology stack there and expressed optimism about the region's reopening. He acknowledged a shortage of skilled labor in the construction sector and described a career as a skilled trades professional as an excellent choice with strong earning power. Hanrahan added that educating people about these careers helps Angi grow capacity, noting that the company's peak daily work volume rose from $300,000 in April 2020 to over $1 million in April 2021.
Source: AI-verified profile updated from Glenn Orchard's recent appearances.
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Transcript (11 segments)
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Interviewer0:00
And he joins us now for a first on CNBC interview. Welcome, Glenn. Nice to see you.
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Glenn Orchard0:06
Great to be here. Thanks so much for having me.
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Interviewer0:09
So that 13% revenue growth, especially booming services growth up 66%. What's driving it? What are people buying at the moment? What services?
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Glenn Orchard0:21
Yeah, we're really seeing this shift towards our services business where consumer behavior has just changed. You think about the old way of doing things where you call a friend or a neighbor and ask for a referral. Consumers who booked cars on Uber or bought food on Instacart or DoorDash just want to press a button inside the Angie mobile app and make a booking for a home service. That's really driving that change in behavior. As you said, we saw $55 million in revenue from our services business, where we sell the service directly to the consumer in Q1, up 66% year-on-year. The really interesting part is we did that without dropping a single dime on consumer marketing. So that business is growing 66% year on year at a $200 million run rate without us spending on consumer marketing, and it really speaks to this shift towards people buying home services online. That's really exciting for us.
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Interviewer1:19
How correlated is your business to the housing market? We've seen a boom in demand for homes, first-time buyers getting into the market, especially millennials, rising prices. Your stock has done well but not quite as well as some of these housing stocks. So how tied are they?
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Glenn Orchard1:35
Look, there's definitely some correlation here, but at the same time, we saw during the pandemic very little housing activity and yet we saw so many people investing in the home that they were already in. We're excited about the next 12 to 18 months. Exactly as you said, we've got millennials coming into the market, $1.8 trillion in excess savings on the sidelines. But the interesting thing about what millennials are buying, because the housing market is so tight, we're not seeing them buy the houses they traditionally would. They're not buying the new builds because there just aren't enough of them. So instead, we're seeing more and more first-time buyers buy fixer-uppers, buy homes outside the centers in the suburbs, where they actually need to invest quite a lot right out of the gate to get work done in their home. That's obviously good for our business.
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Interviewer2:23
Is that theme playing out in places like Europe as well, or is it slightly different? I saw you had good growth there from a smaller base, but what are the themes at play?
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Glenn Orchard2:32
Yeah, our European story is a little different. We invested a lot recently in re-platforming that business, really pulling together the technology stack it's running on, and we're really excited about what's going to happen in Europe as Europe kind of reopens. Definitely a lag there in terms of the vaccine rollout, so we're excited about what's going to happen there over the next 12 months.
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Interviewer2:52
What about the people that provide the services, the people that get hired? How are you finding that trend as the economy does reopen and more people get hired? Disappointing jobs report today, but clearly more people are coming back to work.
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Glenn Orchard3:08
Yeah, more people are coming back to work, more people are getting off the sidelines. I think that as you said, the jobs report today a little disappointing. There is still a shortage, clearly a shortage of skilled labor in the construction sector. For people who are considering a shift in careers or considering where to go, a skilled trades professional is an excellent career choice. The more we can do to educate folks on how great a career choice that is and the earning power that has, the easier it is for us to go out and continue to grow capacity, help people take care of their homes. 130 million plus homes in the United States, they all require maintenance, they all require work. Over the last year in our energy services business, last April our peak day was about $300,000 in a single day of work done. In April of this year, our peak day was over a million dollars of work done in a single day. So we are bringing on more capacity into the energy network and really helping our customers get more work done.
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Interviewer4:15
Shepard Smith here. Thanks for watching CNBC on YouTube.
