Revenue 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]

Core Insights - IAC is enhancing its corporate governance by adding Tor R. Braham to its Board of Directors in connection with the 2025 Annual Meeting of Stockholders [1][2] - The addition of Mr. Braham follows constructive engagement with shareholder Arkhouse Management Co. LP, indicating a collaborative approach to governance [2] - The Board has nominated a total of eleven candidates for election, including Mr. Braham, with a focus on creating value for shareholders [3] Corporate Governance Enhancements - The Board intends to adopt a director resignation policy for nominees who receive less than a majority of votes in uncontested elections, reflecting a commitment to accountability [4] - Mr. Braham is expected to join the newly renamed Nominating and Corporate Governance Committee, leveraging his experience in technology and capital markets [1][2] Background of Tor R. Braham - Mr. Braham has extensive experience in board service and investment banking, having served on various boards including A10 Networks and Viavi Solutions, and held senior roles at Deutsche Bank and Credit Suisse [5] - His educational background includes a J.D. from New York University School of Law and a B.A. from Columbia College, enhancing his qualifications for the Board [5] About IAC - IAC is a company focused on building and acquiring new products and brands, with a history of evolving into independent, publicly traded companies [6] - The company holds strategic equity positions in various industries, including MGM Resorts International and Turo Inc., showcasing its diversified investment strategy [6]

Wall Street expects a year-over-year decline in earnings on lower revenues when IAC (IAC) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand ...

Group 1 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 50 companies on their watchlist and has been investing personal capital for over 7 years globally [1] - The investor aims to identify asymmetric investment opportunities to achieve market-beating returns through diligent research of small to mid-cap companies [1] Group 2 - The investor holds a beneficial long position in shares of IAC and ANGI, indicating a personal investment interest in these companies [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha emphasizes that past performance does not guarantee future results and that no specific investment advice is provided [3] - The platform does not act as a licensed securities dealer or investment adviser, and the analysts may not be certified by any regulatory body [3]

Shares of IAC (IAC) have gained 2.9% over the past four weeks to close the last trading session at $44.55, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $67.62 indicates a potential upside of 51.8%.The average comprises 13 short-term price targets ranging from a low of $54 to a high of $100, with a standard deviation of $13.52. While the lowest estimate indicates an increase o ...

Financial Data and Key Metrics Changes - The company reported a nearly $250 million increase in cash flow year-on-year, reaching almost $300 million for IAC's businesses [19] - ANGI's EBITDA was significantly reduced from approximately $260 million to $35 million, while capital expenditures increased to $115 million [9] - Dotdash Meredith's digital revenue growth was reported at 10%, exceeding previous forecasts [44] Business Line Data and Key Metrics Changes - ANGI has seen improvements in product quality and cash flow, with expectations for real revenue growth in the upcoming year [12][20] - Dotdash Meredith experienced a traffic increase of about 8%, with performance marketing growing by 22% [13][44] - Care.com has two main business lines: consumer and enterprise, with the enterprise segment expected to continue growing due to increasing employer support for care needs [88] Market Data and Key Metrics Changes - The advertising market showed signs of recovery, with many advertisers returning to premium and programmatic markets in mid-November [44] - The company expects mid-single-digit traffic growth for the year and mid-single-digit monetization growth in digital advertising [46] Company Strategy and Development Direction - The company is focused on spinning off ANGI to allow it to operate independently, with confidence in its management team [54][56] - There is a strategic emphasis on improving customer experience and operational efficiency, particularly in ANGI and Dotdash Meredith [20][70] - The company plans to invest in its core businesses while also exploring new opportunities for growth [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2026, despite short-term disruptions due to regulatory changes [35][39] - The company is optimistic about the competitive positioning of ANGI and Dotdash, with expectations for improved customer experiences and operational efficiencies [36][70] Other Important Information - The company is not planning to issue dividends from ANGI at the time of the spin-off, maintaining a cash balance of $416 million and $500 million in bonds [30] - Corporate costs are expected to be elevated in 2025 due to non-recurring expenses related to the ANGI spin-off and other legacy matters [92] Q&A Session Summary Question: Could you talk about your motivations for moving to ANGI with the spin? - Joey Levin mentioned both personal and professional motivations, highlighting the asymmetrical upside potential of ANGI [26] Question: What gives you confidence in trends improving through the year despite the Q1 guide coming in below expectations? - Jeff Kip discussed the implementation of Consumer Choice and positive customer feedback, indicating a strong long-term competitive position [32][35] Question: Can you talk through the next steps in the spin process and if IAC is planning to take any cash from ANGI? - Christopher Halpin outlined the registration statement filed and the focus on a seamless transition, confirming no dividends will be issued [30] Question: What are the drivers of Dotdash Meredith's 4Q revenue and EBITDA? - Christopher Halpin explained sluggish consumer traffic and advertiser spend prior to the U.S. election, with a recovery noted in November [42] Question: How should we think about capital allocation post-ANGI spin? - Barry Diller emphasized a balance between investing in current businesses and returning capital to shareholders, indicating a clean slate for new opportunities [79] Question: What are your plans to transition to focus on top of funnel and drive more engagement at Meredith? - Christopher Halpin discussed strategies for enhancing direct consumer relationships and leveraging premium content to drive traffic and revenue [80]