NEW YORK, June 5, 2025 /PRNewswire/ -- IAC Inc. (NASDAQ: IAC) ("IAC") announced today that its wholly owned subsidiary, Dotdash Meredith Inc. ("DDM"), has agreed to sell $400 million aggregate principal amount of 7.625% senior secured notes due 2032 (the "Notes") in a private offering (the "Offering").  The Notes will bear interest at an interest rate of 7.625% per annum and will be issued at 100.00% of their face value.  DDM's obligations under the Notes will be guaranteed on a senior secured basis by cert ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA guidance of $330 million to $350 million for the full year, with a trailing basis of $309 million [40][41] - Free cash flow conversion remains strong, with a minor amount of capital expenditures and working capital [41] - The company has a net credit facility of $1.2 billion to $1.4 billion and aims to deleverage below four times leverage by year-end [41] Business Line Data and Key Metrics Changes - Dotdash Meredith is the number one digital and print publisher in America, with over $1.8 billion in majority digital revenue [23] - The company has seen consistent digital revenue growth, reporting a 7% increase in the first quarter and guiding for 7% to 9% growth for Q2 [39][40] - Care.com has flat revenue over the last few years, but the company expects improvements with a new management team and better marketing strategies [47] Market Data and Key Metrics Changes - The company noted strength in premium direct advertising revenue, particularly in health and beauty sectors, while experiencing weakness in food and beverage and parts of retail [60] - Programmatic advertising prices have stabilized after initially rising, indicating a shift in market dynamics [60] - MGM Resorts is viewed as undervalued, trading at about 3.3 times the current value of its properties, with significant upside potential [44] Company Strategy and Development Direction - The company is focused on capital allocation, including stock buybacks and strategic acquisitions, while also considering opportunistic divestitures [18][54] - Management changes have been made to enhance execution and focus on free cash flow [15][16] - The company aims to unlock the perceived value of its private assets and reduce the discount at which its equity trades [13][14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong performance in direct premium advertising and a solid position heading into the latter part of the year [62] - The company anticipates some softness in Q2 and Q3 but expects relative strength in Q4, with no significant recession predicted [56] - Management highlighted the importance of resolving tariff issues to improve market conditions [62] Other Important Information - The company has a strong cash position with $900 million available at the holding company level [13] - The integration challenges faced by Dotdash Meredith have been addressed, leading to improved performance [10] - The company is actively exploring M&A opportunities across various stages and sectors, particularly in leisure, entertainment, and media [21] Q&A Session Summary Question: Can you walk through the macro environment regarding tariffs? - Management noted that there was strength in March, but volatility has since increased, with premium direct advertising remaining solid despite some weakness in other sectors [59][60] Question: Is there a path for IAC to take a controlling stake in Turo? - Management indicated that taking a controlling stake is not a priority, focusing instead on executing current opportunities [63] Question: Are there discussions with other large language model developers? - Management confirmed ongoing discussions with various developers, with OpenAI being the most advanced partner [64][65]

Group 1 - IAC will participate in the 53rd Annual TD Cowen Technology, Media and Telecom Conference on May 29, 2025, with CFO Christopher Halpin scheduled for a fireside chat at 9:05 a.m. ET [1] - A live audio webcast and replay of the fireside chat will be available to the public on IAC's investor relations website [1] Group 2 - IAC is a company that builds and evolves businesses, having emerged from a single seed over two decades ago into 10 independent, publicly traded companies [2] - The company is guided by principles of financially-disciplined opportunism and is currently comprised of category-leading businesses such as Dotdash Meredith and Care.com, along with strategic equity positions in MGM Resorts International and Turo Inc. [2] - IAC is headquartered in New York City [2]

Core Viewpoint - MGM International is considered a strong company with significant growth potential, currently trading at a bargain price [1] Group 1: Investment Perspective - The author identifies as a value investor focusing on special situations and small-cap companies, emphasizing a preference for long investment ideas [1] - The article reflects a belief in the strength of MGM as an investment opportunity, indicating a long position in the shares [1] Group 2: Background and Influences - The author's background is in engineering, with a transition to value investing influenced by notable figures such as Warren Buffett, Peter Lynch, and others [1] - The book "You Can Be a Stock Market Genius" by Joel Greenblatt has notably shifted the author's focus towards special situations and small-cap plays [1] Group 3: Engagement and Improvement - The author expresses a desire to connect with other investors and improve through feedback on their articles [1]

Summary of IAC FY Conference Call - May 14, 2025 Company Overview - **Company**: IAC - **Recent Changes**: Spun off ANGI, resulting in a new management structure with Chris Halpin as COO and CFO, and Barry Diller as Chairman and Senior Executive [3][5][6] Portfolio Composition - **Key Assets**: - Dotdash Meredith: Leading digital and print publisher with over $1 billion in digital revenue and $300 million in adjusted EBITDA [3][4] - 23% stake in MGM Resorts International, a major player in gaming [3][4] - Care.com: Leading online caregiver service [4] - 32% stake in Turo: Top car-sharing platform [4] - Vivien: Health care staffing platform [4] - Cash reserves of $900 million at IAC [4] Strategic Priorities Post-ANGI - **Focus Areas**: - **Execution**: Driving revenue growth and free cash flow across portfolio companies [9][10] - **Capital Allocation**: Share buybacks ($200 million so far), M&A opportunities, and strategic divestitures [10][11][12] - **Catalysts**: Pursuing actions that create shareholder value, such as the recent ANGI spin-off [12][13] Macro Environment Insights - **Current Economic Outlook**: Uncertainty exists, but no clear signs of an impending downturn; cautious optimism for Q4 [14][19] - **Advertising Trends**: Premium advertising remains strong, with some softness in specific categories [15][16] - **Consumer Spending**: Continued strength in performance marketing, with no significant signs of weakness [16][17] Dotdash Meredith (DDM) Insights - **Business State**: Strong performance with a diversified asset base and effective ad tech stack [20][21] - **Decipher Initiative**: A cookie-less targeting solution showing promising results, outperforming traditional methods [23][24][25] - **Direct-to-Consumer Strategy**: Transitioning traffic sources to enhance direct relationships with consumers [27][28][29] MGM Stake - **Investment Rationale**: MGM is viewed as a "forever asset" with significant embedded value; strong performance in both digital and physical assets [41][42][43] Care.com Performance - **Business Segments**: Strong growth in enterprise segment due to increased demand for backup care services; consumer segment facing challenges but expected to grow [44][45][48] Turo and Search Business - **Turo**: Leading car-sharing platform with significant growth potential; focus on increasing brand awareness [49][50][51] - **Search (Vivien)**: Stable performance with innovative use of AI in healthcare staffing [52][53] Capital Allocation Strategy - **Share Repurchase**: Ongoing buybacks and exploration of M&A opportunities, focusing on growth potential and strategic fit [54][55][56] - **Investment Philosophy**: Preference for control in acquisitions, with a focus on growth rather than short-term cash flow maximization [56][57] Future Outlook - **Strategic Clarity**: Enhanced focus on capital allocation and value creation for shareholders [58][59] - **Decipher's Potential**: Belief in the competitive advantage of Decipher as a transformative tool for advertising [60][61]

Core Insights - The future of entertainment is expected to be free for consumers, with a focus on diversity in storytelling and audience tastes, moving away from traditional Hollywood norms [2][3] - Competition in the media landscape should not dictate strategy; companies should leverage their strengths and focus on unique value propositions [5][6][9] Company Overview - Anjali Sud became CEO of Vimeo at 33 and took the company public in 2021; she is now leading Fox Corp.'s Tubi, which has seen rapid growth, reaching nearly 100 million monthly active users [3] - Tubi hosted the Super Bowl, marking a significant streaming event, showcasing its growing influence in the streaming market [3] Industry Trends - The need for more tools and space for creators is driving business strategies, with a focus on enabling diverse creators to produce high-quality content [6][7] - Understanding customer needs is fundamental for developing successful business strategies [8] Leadership Philosophy - Companies should prioritize internal debate and encourage dissenting views to foster innovation [12][13] - A balance between urgency in execution and patience in vision is essential for long-term success [15] Personal Insights from Leadership - Imposter syndrome is a common experience for CEOs, and embracing authenticity can enhance leadership effectiveness [16][18] - The importance of sleep as a key factor in maintaining productivity and managing work-life balance is emphasized [20][21] Gender and Leadership - Sud aims to create opportunities for women in leadership roles, reflecting on her own experiences as a young female CEO [22]

Company Overview - IAC (NASDAQ: IAC) is a company that builds and evolves businesses, driven by curiosity and a desire to innovate or acquire new products and brands [2] - Over two decades, IAC has developed into a conglomerate with 10 independent, publicly traded companies and a legacy of exceptional leadership [2] - The company maintains a principle of financially-disciplined opportunism and is currently comprised of leading businesses such as Dotdash Meredith (DDM) and Care.com, along with strategic equity positions in MGM Resorts International and Turo Inc. [2] Upcoming Events - IAC will participate in the 53rd Annual J.P. Morgan Global Technology, Media and Communications Conference on May 14, 2025 [1] - Christopher Halpin, Executive Vice President, COO and CFO of IAC, is scheduled to present at 9:20 a.m. ET [1] - A live audio webcast and replay of the presentation will be accessible to the public on IAC's investor relations website [1]

IAC (IAC) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Company Participants Christopher Halpin - Executive VP, CFO & COOJason Helfstein - Managing Director - Head of Internet ResearchNeil Vogel - CEO, Dotdash MeredithJames Heaney - SVP - Equity ResearchCory Carpenter - Internet Equity ResearchJustin Patterson - Managing DirectorTom Champion - Director & Senior Research AanalystRobert Zeller - Equity Research AssociateLuke Meindl - Equity Research AssociateYgal Arounian - Director - Internet Equity Researc ...

Financial Data and Key Metrics Changes - Q1 2025 was described as a solid start to the year with reaffirmed full-year 2025 adjusted EBITDA guidance across all of IAC [6][18] - The company repurchased 4,500,000 shares and increased share repurchase authorization by 10,000,000 shares [6][12] - DDM (Dotdash Meredith) grew digital revenues by 7% in Q1 and increased EBITDA by 46%, excluding a one-time lease gain [8][10] Business Line Data and Key Metrics Changes - DDM's digital advertising revenue was up 1% in Q1, with premium demand remaining stable despite a decline in core traffic [35][40] - Licensing revenue led growth with a 30% increase, aided by the OpenAI license and strong performance at Apple News [36] - Performance marketing also showed strong growth at 11% [36] Market Data and Key Metrics Changes - The macroeconomic outlook remains uncertain, with consumer spending through DDM's performance marketing being solid despite weak consumer confidence [15][18] - Programmatic pricing has softened, running flat year over year after previously increasing [17][18] - The advertising base showed strength in pharma, tech, and beauty, offsetting weaknesses in food and beverage [17] Company Strategy and Development Direction - The company is focused on executing growth across its businesses and capital allocation, including share buybacks and M&A opportunities [11][12] - The strategy includes pursuing strategic divestitures of smaller holdings to free up capital [13] - The company aims to create equity value and reduce the discount between share price and intrinsic value [10][12] Management's Comments on Operating Environment and Future Outlook - Management is carefully monitoring the macroeconomic environment for signs of stability or weakness among consumers and brands [18] - The company is optimistic about future growth, particularly in 2026, with several key projects underway [22][26] - Management acknowledged the challenges in the advertising market but emphasized the strength of their brands and execution capabilities [40][41] Other Important Information - The company reached an agreement to settle litigation related to the match separation with minimal additional costs [10] - The appointment of Jim Lawson as President of Decipher was highlighted as a strategic move to enhance the product's market presence [48][50] Q&A Session Summary Question: Key priorities for 2026 TDM revenue growth and capital allocation - Management discussed ongoing projects like the People app and MyRecipes, emphasizing their focus on meeting younger audiences [22][24] - Capital allocation will balance between share repurchases and M&A opportunities, with a cautious optimism for new investments [27][28] Question: Q1 trends in DDM Digital revenue - Management noted that Q1 faced tough comparisons and a decline in core traffic, but licensing and performance marketing showed strong growth [34][36] Question: Impact of Google’s AI transition and programmatic softness - Management indicated that the impact of Google's AI changes is not significant yet, and programmatic pricing has stabilized after a period of growth [114][116] Question: Appointment of Jim Lawson and Decipher's strategy - The appointment was seen as a strategic advantage to enhance Decipher's market presence and execution capabilities [48][50] Question: AI opportunities across the IAC portfolio - Management highlighted ongoing AI applications in various segments, particularly in improving customer service and marketing efficiency [83][85]

Financial Data and Key Metrics Changes - Q1 2025 was described as a solid start to the year, with IAC reaffirming full year 2025 adjusted EBITDA guidance across all businesses [5][16] - DDM grew digital revenues by 7% in Q1 and increased EBITDA by 46%, excluding a one-time lease gain [7][16] - The company repurchased 4,500,000 shares and increased share repurchase authorization by 10,000,000 shares [5][11] Business Line Data and Key Metrics Changes - DDM's licensing revenue grew by 30%, driven by the OpenAI license and strong performance at Apple News [34] - Performance marketing also showed strong growth at 11% [34] - The Daily Beast achieved a revenue growth of 72% while reaching profitability [8] Market Data and Key Metrics Changes - Core traffic for DDM declined by 3% in Q1, with digital advertising only up by 1% due to fewer impressions available for programmatic sales [33] - Premium demand in advertising remained stable, with strength in pharma, tech, and beauty offsetting weaknesses in food and beverage [15][33] - Programmatic pricing softened, running flat year over year after previously increasing [15] Company Strategy and Development Direction - The company is focused on executing growth across its businesses and capital allocation, including share buybacks and M&A opportunities [10][11] - IAC is pursuing strategic divestitures of smaller holdings to free up capital and simplify operations [12] - The company aims to create equity value and reduce the discount at which its shares are trading [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting solid performance in DDM despite weak consumer confidence [14][16] - The macroeconomic outlook remains uncertain, but the company is monitoring trends closely and reaffirming guidance based on current business performance [16] - Management highlighted the importance of focusing on execution and controlling what can be controlled in an unpredictable environment [16] Other Important Information - The company reached an agreement to settle litigation related to the match separation, requiring only a $200,000 contribution beyond insurance coverage [8] - IAC has $800 million in net operating losses (NOLs) that could offset taxable gains on its MGM stake [9] Q&A Session Summary Question: Key priorities for 2026 TDM revenue growth and capital allocation - Management discussed excitement about 2026, highlighting projects like the People app and MyRecipes, and emphasized the importance of capital allocation between share repurchases and M&A [18][20][25] Question: Q1 trends in DDM Digital revenue - Management noted that Q1 faced tough comparisons and a decline in core traffic, but March showed solid growth in digital advertising [30][32] Question: DDM cash flow dynamics - Management explained that DDM can dividend cash to IAC if leverage ratios are below four times total debt to EBITDA, enhancing financial flexibility [43] Question: Appointment of Jim Lawson as President of Decipher - Management expressed excitement about Jim Lawson's appointment, emphasizing his experience and the potential for Decipher Plus to drive growth [46][48] Question: Impact of Google phasing out cookies - Management indicated that the cookie phase-out is not a significant concern, as their contextual targeting capabilities remain strong [58][60] Question: Strategic priorities for Care.com - Management outlined three core priorities for Care: improving product matching, optimizing pricing and packaging, and enhancing marketing efforts [100][104]