The Houzz IPO is coming to the market soon. The company is in the preparation stages for its public debut and announced plans to list its stock in early 2022. So, when can investors expect Houzz stock?
Houzz IPO: About the Business
Houzz is an online community of architecture, home improvement, interior design and landscaping professionals. Adi Tatarko and her husband Alon Cohen founded the company in 2009 after finding it difficult to find ideas for remodeling their home.
A website that was once a side project has now evolved into one of the top home design websites. Houzz provides home renovation and design ideas by connecting users with ample tools, resources and vendors.
The site offers a blog with various design ideas depending on the user’s style. In addition, it helps connect them with people to hire home professionals. Houzz features a directory of designers, landscapers, inspectors, welders and construction professionals. In addition, the company has its own marketplace where users can buy and sell various home products, including outdoor and indoor furniture, decor, rugs and lighting.
There are a lot of home design websites. However, Houzz is unique from other websites because users can filter results based on home-style, budget and whether a business is family-owned or environmentally friendly.
Furthermore, Houzz offers a premium subscription service, Houzz Pro. The service is a project and customer management service that helps home professionals stand out, win clients and manage projects efficiently. It offers a suite of business management and marketing software solutions that allow users to…
- manage a housing project’s life cycle
- attract and convert new clients
- create estimates
- communicate with clients
- handle billing
Contractors can schedule appointments, control budgets, analyze potential clients and work with remodelers and other professionals on the app. In addition, the premium service offers various marketing services for professionals. This includes website building and hosting, multimedia production, exclusive analytic tools and listing in Houzz’s directories.
Houzz offers services that beat the competition. Additionally, the growth of the company during the pandemic demonstrated its competitive edge. And this presents a unique opportunity for the Houzz IPO.
Houzz Capitalizes on Radical Changes Due to COVID-19
The home renovation and design business faced radical change as COVID-19 pushed the home improvement industry to go remote. Before the pandemic, design professionals relied heavily on word of mouth referrals, spreadsheets and in-mail invoices. However, the pandemic forced many contractors to work more efficiently online.
Furthermore, the home renovation and design industry faced rapid growth. People were stuck inside their homes and wanted to leverage the space to accommodate new needs. Backyards and garages became gyms and closets and kitchen tables turned into new office spaces. Contractors and design professionals faced a huge increase in demand and urgency. This was a pivotal moment for embracing tech within the design and renovation space. Tatarko noted…
[The pandemic] completely changed how people wanted things now. Immediately, despite the shortage in supplies. I think the adoption of all these tools and technology became even more critical for both homeowners and professionals.
Homeowners want to know how long it’s going to take, how much it’s going to cost me, who’s going to come to my house, what’s coming next, what it’s going to look like, and how it’s all going to work together. People always wanted that. But now they needed it urgently, because they needed to change their house in order to accommodate all these new needs.
Now, we’re seeing high adoption of [tech tools] because homeowners are demanding it that way. ‘If you come to my house, I want to get that proposal with 3D images now,’ with a full guarantee of what it’s going to look like and how it’s going to work together.
Furthermore, it looks like this technology is here to stay. Professionals now have access to clients beyond their original network with high-intent plans that were never seen before. This reflects in the company’s 60% growth in 2020 and its $4 billion valuation.
Company Lands $4 Billion Valuation Ahead of Houzz IPO
Because Houzz is still a private company, most of its finances are under wraps for now. Furthermore, the company hasn’t raised any funding since 2017.
The company’s last round of private funding raised $400 million and landed the company a $4 billion valuation. Iconiq Capital led the funding round and included investments from Sequoia, New Enterprise Associates, GGV Capital and others. With this latest round of venture capital funding, Houzz will have raised more than $650 million.
Since Houzz secured that valuation nearly five years ago, it’s difficult to predict how much the company is worth now. However, the company’s growth during the pandemic signals that the company’s value could be substantially higher now.
The company’s finances will become public when the company officially files with the SEC and paperwork becomes public. Check back here for the latest updates on financial highlights. Until then, let’s look at the filing details for the Houzz IPO…
Houzz IPO Filing Details
The company hired Goldman Sachs in October 2021 to help prepare for its IPO. At the time, the company predicted to conduct the Houzz IPO in early 2022. However, it noted that the date could be pushed back depending on market conditions.
At this time, Houzz is still in the early stages of planning its IPO. There have been no official announcements about the public debut from the company. Furthermore, the company hasn’t released its ticker symbol, number of shares or stock price.
You can watch this space for the latest Houzz stock updates as they become public. Furthermore, if IPO investing interests you, check out our step-by-step guide for companies going public: the IPO process.
Before investing, always make sure to do your research. Initial public offerings can be volatile for the first few months, while share prices fluctuate constantly.
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