ServiceMagic Sees 21% Growth in Providers
IAC’s ServiceMagic reported today that it saw a 51 percent boost in 4Q revenues, growing from $25.3 million in 2008 to $38.2 million in 2009. The boost was accompanied by 21 percent growth in the number of home and trade providers that pay for its leads and a 46 percent gain in service requests. The addition of revenues from two new units — ServiceMagic International and Market Hardware, a search and Web site provider for verticals — also increased the pot.
Profits, however, were low at $1.2 million. They were held down by increased marketing efforts, including an expanded sales force and a major advertising campaign. Losses caused by the rapid expansion of the company’s international unit also held profits down.
ServiceMagic CEO Craig Smith is keynoting at Marketplaces 2010, March 22-24 in San Diego.