IAC(US:IAC)2024-05-07 20:16Revenue Performance - Dotdash Meredith's Digital revenue increased by 13% to $209.3 million, while Print revenue decreased by 10% to $185.9 million, resulting in a total revenue of $390.5 million, a 1% increase year-over-year [147]. - Angi Inc.'s total revenue decreased by 14% to $305.4 million, with Domestic Ads and Leads revenue down 15% to $249.6 million and Services revenue down 36% to $20.5 million [147]. - Total revenue for IAC decreased by 14% to $929.7 million compared to $1.08 billion in the same quarter last year [147]. - Dotdash Meredith revenue increased by 1% to $390.5 million, driven by a $24.5 million, or 13%, increase in Digital revenue, while Print revenue decreased by $21.1 million, or 10% [149]. - Angi Inc. revenue decreased by 14% to $305.4 million, with Ads and Leads down by $43.9 million, or 15%, and Services down by $11.6 million, or 36% [149]. Operational Metrics - Dotdash Meredith's Total Sessions decreased by 3% to 2.75 billion, while Core Sessions increased by 8% to 2.27 billion [147]. - Angi Inc. reported a 31% decrease in Service Requests to 4.1 million and a 15% decrease in Monetized Transactions to 5.5 million [147]. - The decrease in consumer connection revenue for Angi Inc. was primarily due to a $52.4 million, or 25%, decline in Monetized Transactions, reflecting fewer Transacting Service Professionals [149]. Expenses and Cost Management - Cost of revenue decreased by $70.965 million, or 21%, from $342.929 million in 2023 to $271.964 million in 2024, representing 29% of revenue compared to 32% in the prior year [149]. - Selling and marketing expenses decreased by $59.372 million, or 15%, from $403.297 million in 2023 to $343.925 million in 2024, maintaining 37% of revenue [151]. - General and administrative expenses decreased by $60.407 million, or 22%, from $273.076 million in 2023 to $212.669 million in 2024, representing 23% of revenue compared to 25% in the prior year [155]. - Product development expenses increased by $2.212 million, or 3%, from $84.787 million in 2023 to $86.999 million in 2024, accounting for 9% of revenue [156]. - Depreciation expenses decreased by $24.599 million, or 40%, from $36.573 million in 2023 to $61.172 million in 2024, representing 4% of revenue compared to 6% in the prior year [157]. Profitability and EBITDA - Operating loss decreased by $76.418 million, or 56%, from $135.596 million in 2023 to $59.178 million in 2024, with an increase in Adjusted EBITDA of $33.9 million [159]. - Dotdash Meredith's Adjusted EBITDA increased by $53.4 million to $30.2 million from a loss of $23.1 million, driven by a $12.6 million increase in Digital and a $49.2 million decrease in losses from Other [162]. - Angi Inc.'s Adjusted EBITDA rose by $6.3 million to $36.0 million, with contributions of $2.3 million from International, $2.2 million from Services, and $1.4 million from Ads and Leads [166]. - The Print segment's Adjusted EBITDA decreased by $8.4 million, primarily due to revenue declines [166]. - The Emerging & Other segment's Adjusted EBITDA loss increased by $19.8 million to a loss of $4.2 million, impacted by severance expenses and transaction-related costs [166]. Cash and Debt Management - As of March 31, 2024, Angi Inc. has cash and cash equivalents totaling $363.3 million, a slight decrease from $364.0 million on December 31, 2023 [181]. - Dotdash Meredith's cash and cash equivalents increased to $268.7 million from $261.6 million during the same period [181]. - IAC's total cash and cash equivalents and marketable securities reached $1.64 billion, up from $1.45 billion at the end of 2023 [181]. - IAC's long-term debt, net, stood at $1.98 billion as of March 31, 2024, a slight decrease from $1.99 billion at the end of 2023 [181]. - The Company's consolidated debt amounts to approximately $2.03 billion, with $1.53 billion in Dotdash Meredith Term Loans and $500 million in ANGI Group Senior Notes [203]. Investments and Future Outlook - The sale of Mosaic Group was completed for approximately $160 million on February 15, 2024 [133]. - The Services Agreement with Google is set to expire on March 31, 2025, which may impact future revenue [144]. - Angi Inc. completed the sale of its subsidiary Total Home Roofing on November 1, 2023, reflecting a strategic shift in its operations [133]. - The company anticipates a 40% to 50% reduction in capital expenditures for 2024 compared to $141.4 million in 2023, primarily due to prior land acquisition costs [196]. - The Company may need to raise additional capital through future debt or equity financing to make acquisitions and investments [200]. Tax and Other Financial Metrics - The income tax provision improved by $84.8 million to a provision of $54.7 million, with an effective income tax rate of 55% compared to 25% in the previous year [168]. - Interest expense decreased by $1.5 million to $38.2 million, primarily due to an increase in interest rates from 8.77% to 9.43% on Term Loan B and from 6.94% to 7.68% on Term Loan A [164]. - Other income, net increased by $11.1 million to $34.8 million, including a pre-tax gain of $29.2 million on the sale of assets of Mosaic Group [167]. - The unrealized gain on investment in MGM Resorts International decreased by $541.1 million to $704.8 million, reflecting changes in MGM's stock price [165]. - During the three months ended March 31, 2024, the Company recognized an unrealized gain of $163.8 million on its investment in MGM, compared to $704.8 million for the same period in 2023 [201].