IAC(US:IAC)2025-05-05 20:06Financial Performance - IAC reported Q1 2025 revenue of $570.5 million, a decrease of 9% compared to Q1 2024 revenue of $624.3 million[3]. - Adjusted EBITDA for Q1 2025 was $50.9 million, reflecting an increase of 818% from $5.5 million in Q1 2024[3]. - Care.com revenue decreased by 4% to $88.9 million, with operating income remaining flat at $11.7 million[13]. - Emerging & Other revenue decreased by 46% year-over-year to $18.3 million, primarily due to the sale of Mosaic Group[12]. - IAC's net loss for Q1 2025 was $216.8 million, compared to net earnings of $45.0 million in Q1 2024[3]. - Free cash flow for Q1 2025 was negative $4.6 million, a decrease of $41.9 million year-over-year[17]. - Total revenue for Q1 2025 was $393.1 million, a slight increase of 1% compared to $390.5 million in Q1 2024[27]. - The company reported a net loss of $214.6 million for Q1 2025, compared to a net income of $44.9 million in Q1 2024[33]. - Operating income for Q1 2025 was $35.8 million, a significant improvement from an operating loss of $63.4 million in Q1 2024[33]. - The company’s accumulated deficit increased to $755.8 million as of March 31, 2025, compared to $539.0 million at the end of 2024[36]. - For Q1 2025, IAC reported a net loss from continuing operations of $229,881 thousand, compared to net earnings of $49,444 thousand in Q1 2024[37]. - The total cash used in operating activities attributable to continuing operations was $609,678 thousand in Q1 2025, a significant decrease from $209,342 thousand in Q1 2024[37]. Revenue Breakdown - Dotdash Meredith (DDM) digital revenue increased by 7% to $224 million, while print revenue decreased by 7% to $174 million[4]. - Digital revenue grew by 7% year-over-year to $224.2 million, driven by a 30% increase in licensing and other revenue[27]. - IAC's total DDM Adjusted EBITDA for Q1 2025 was $80.3 million, compared to a loss of $63.4 million in Q1 2024[42]. - Consumer Revenue consists mainly of subscription fees from families and caregivers, along with revenue from household payroll and tax support services, and contracts with businesses advertising through the platform[57]. - Enterprise Revenue is generated through annual contracts with businesses providing access to Care.com's suite of products and services as an employee benefit[58]. Share Repurchase and Cash Position - IAC repurchased 4.5 million shares for a total of $200 million since Q4 2024, with a new authorization for an additional 10 million shares[4]. - The company had $1.2 billion in cash and cash equivalents, with $917 million held by IAC and $243 million by DDM[25]. - IAC's cash and cash equivalents at the end of Q1 2025 were $1,168,339 thousand, down from $1,515,801 thousand at the end of Q1 2024[37]. - Long-term debt stood at $1.5 billion, with a net consolidated leverage ratio below 4.0x, providing increased financial flexibility[23]. - The company has a $150 million revolving credit facility with no borrowings outstanding as of March 31, 2025[24]. Future Outlook - IAC's full year 2025 outlook for Adjusted EBITDA is projected to be between $240 million and $295 million, with DDM expected to contribute $330-$350 million[38]. - Digital revenue growth for Q2 2025 is anticipated to be between 7% and 9%, with total Adjusted EBITDA expected to be between $67 million and $73 million[40]. - Care.com is expected to see revenue declines of 5% to 8% in Q2 2025, with Adjusted EBITDA projected between $3 million and $5 million[40]. - The company expects total operating income for FY 2025 to be between $75 million and $150 million[38]. - Stock-based compensation expense for FY 2025 is projected to be between $30 million and $25 million[38]. Strategic Positioning and Risks - IAC anticipates future financial performance and business prospects, including the benefits of the completed Angi Inc. spin-off and leadership reorganization[61]. - IAC holds strategic equity positions in MGM Resorts International and Turo Inc., alongside its category-leading businesses Dotdash Meredith and Care.com[62]. - Risks include the ability to market products effectively, competition with generative AI technology, and unstable market conditions affecting advertising spending[61]. - The company emphasizes financially-disciplined opportunism as a core principle guiding its evolution and growth strategy[62].