IAC Q4 Earnings Call Highlights

Core Insights - The company is experiencing a significant shift in its web ecosystem, with a 13% year-over-year decline in core web sessions, primarily due to a 50% drop in Google Search referrals over the past two years [1][6] - Digital revenue growth of 14% in the quarter was driven by advertising, performance marketing, and licensing, despite a 23% decline in print revenue [2][6][3] - The company is focusing on off-platform distribution, with off-platform views nearly doubling over two years and non-session-based revenue growing 37% year-over-year, now representing about 38% of total digital revenue [6][7] Financial Performance - Print revenue fell by 23%, attributed to a lack of political advertising compared to the previous year and ongoing declines in the print sector [2] - Licensing revenue increased by 36%, supported by partnerships with Apple News and Meta, while performance marketing grew by 17% during the holiday period [2][3] - The company reported adjusted EBITDA guidance for People Inc. of $310 million to $340 million, with expectations of mid- to high-single-digit growth in digital revenue and digital adjusted EBITDA [5][15] Strategic Initiatives - The company is shifting towards a strategy that includes developing standalone products and services to mitigate risks from AI-driven disintermediation, leveraging iconic content brands [8] - New initiatives include a "recipe locker" with 3 million registered users and a relaunched People app with 300,000 downloads, focusing on user engagement [19] - The company has increased its stake in MGM to 25% and repurchased $337 million of its shares, reducing the share count by approximately 10% [5][18] Guidance and Future Outlook - IAC will cease providing quarterly guidance, opting for annual targets instead, citing volatility in the industry [5][14] - The company anticipates approximately $15 million in litigation costs related to Google AdTech in 2026, which will impact corporate expenses [15] - IAC expects over 50% EBITDA-to-free-cash-flow conversion in 2026, supported by low capital expenditures and minimal cash taxes [17]