IAC(IAC)2025-05-05 20:08Revenue Performance - DDM revenue increased 1% to $393.1 million, driven by a $14.9 million (7%) increase in Digital revenue, while Print revenue decreased by $12.1 million (7%)[155] - Digital revenue growth was primarily due to a $7.5 million (30%) increase in Licensing and Other revenue, an $11 million (11%) increase in Performance marketing revenue, and a $1.7 million (1%) increase in Advertising revenue[155] - Care.com revenue decreased by $3.7 million (4%) to $88.9 million, while Search revenue fell by $38.1 million (35%) to $70.3 million[155] - Care.com revenue decreased 4% to $88.9 million, with Consumer Revenue down 9% to $48.1 million, while Enterprise Revenue increased 3% to $37.3 million[157] - Search revenue decreased 35% to $70.3 million, primarily due to a $32.3 million (36%) decline from Ask Media Group and a $5.9 million (32%) decrease from Desktop[157] - Emerging & Other revenue decreased 46% to $18.3 million, largely due to the prior year inclusion of $17.9 million from Mosaic Group, which was sold on February 15, 2024[157] Cost and Expense Management - Cost of revenue decreased by $54.2 million (21%) to $205.3 million, reducing as a percentage of revenue from 42% in 2024 to 36% in 2025[156] - The decrease in cost of revenue was primarily due to reductions of $40.2 million from Search, $8.4 million from Emerging & Other, and $4.2 million from DDM[156] - Selling and marketing expense decreased 4% to $180.9 million, representing 32% of revenue, with notable decreases from Emerging & Other ($9.4 million) and Care.com ($2.6 million)[159] - General and administrative expense decreased 51% to $62.8 million, primarily due to a $39.3 million decrease from DDM and a $19.1 million decrease from Corporate[160] - Product development expense decreased 21% to $50.2 million, accounting for 9% of revenue, with reductions from Emerging & Other ($9.0 million) and DDM ($4.8 million)[162] Profitability and Income Metrics - Operating income increased by $99.2 million to $35.8 million, driven by a $45.3 million increase in Adjusted EBITDA and a $39.9 million decrease in stock-based compensation expense[167] - Adjusted EBITDA increased 818% to $50.9 million, with DDM Adjusted EBITDA rising 166% to $80.3 million due to cost rationalization and higher revenue[170] - The Corporate Adjusted EBITDA loss increased 71% to $42.4 million, primarily due to $14.5 million in separation benefits to the former CEO and $4.8 million in transaction-related costs[170] - The company reported a loss before income taxes of $309,115 thousand in 2025, compared to earnings before income taxes of $95,971 thousand in 2024[188] Cash Flow and Financial Position - Total cash and cash equivalents decreased from $1,381,736 thousand at December 31, 2024, to $1,159,225 thousand at March 31, 2025[190] - The company reported an unrealized loss on the investment in MGM of $324.3 million for the three months ended March 31, 2025, compared to an unrealized gain of $163.8 million in 2024[192][211] - The company generated positive cash flows from operating activities of $0.1 million for the three months ended March 31, 2025, but negative cash flows of $16.6 million when excluding DDM's contributions[205] - The company's consolidated cash and cash equivalents were $1.2 billion as of March 31, 2025, with consolidated debt of approximately $1.5 billion[206] Debt and Interest Management - DDM Term Loan A had an outstanding balance of $288.8 million as of March 31, 2025, with interest rates at 6.66%[152] - Interest expense decreased by $6,366 thousand (18%) from $34,680 thousand in 2024 to $28,314 thousand in 2025, primarily due to lower interest rates and reduced debt outstanding[171] - If Adjusted Term SOFR were to increase or decrease by 100 basis points, the annual interest expense on the DDM Term Loans would increase or decrease by $11.2 million[215] Investments and Strategic Actions - IAC completed the spin-off of Angi Inc. on March 31, 2025, resulting in Angi becoming an independent public company[143] - IAC's strategic equity positions include MGM Resorts International and Turo Inc.[141] - The company entered into an amendment to its Services Agreement with Google, extending the expiration date to March 31, 2026[153] - The fair value of the company's investment in MGM was $2.1 billion as of May 2, 2025, with a cumulative unrealized net pre-tax gain of $654.5 million through March 31, 2025[212] - The unrealized loss on investment in MGM was $324,265 thousand in 2025, a decrease of $488,016 thousand compared to a gain of $163,751 thousand in 2024, reflecting the company's accounting method for this investment[172] Shareholder Actions - The company repurchased 3.9 million shares of common stock for $179.4 million at an average price of $45.71 per share during the three months ended March 31, 2025[194][201] - Net loss attributable to IAC shareholders was $216,805 thousand in 2025, compared to net earnings of $45,031 thousand in 2024[188]