Financial Performance - Consolidated revenue for Q1 2025 was $690 million, representing a 16% decrease year-over-year and a 6% decrease sequentially [3][6] - The company reported a net loss of $1 million, or ($0.03) per diluted share, compared to a net income of $17 million, or $0.45 per diluted share in Q1 2024 [6][26] - Adjusted diluted EPS for the quarter was $0.45, down 54% from $0.97 in the same quarter a year ago [3][12] Segment Performance - Revenue from the Nurse and Allied Solutions segment was $413 million, down 20% year-over-year and 9% sequentially [7] - The Physician and Leadership Solutions segment reported revenue of $174 million, an 8% decrease year-over-year but a 1% increase sequentially [8] - Technology and Workforce Solutions segment revenue was $102 million, a decrease of 9% year-over-year and 4% sequentially [9] Operational Highlights - Cash flow from operations was strong at $93 million, allowing the company to reduce debt by $60 million, resulting in a net leverage ratio of 3.1:1 [8][13] - The company achieved improved bookings driven by technology and process improvements, particularly in locum tenens revenue, which showed sequential growth [8] - AMN Healthcare was recognized in Modern Healthcare's 2025 Innovators Awards for its WorkWise workforce technology suite and AMN Passport mobile career platform [8] Guidance and Outlook - For Q2 2025, the company expects consolidated revenue to be between $645 million and $660 million, which is projected to be 11-13% lower than the prior year [14][15] - The guidance includes anticipated revenue declines across all segments, with Nurse and Allied Solutions expected to decrease by 14-17% year-over-year [15] - Gross margin for Q2 2025 is expected to be between 28.5% and 29.0% [14]

Financial Data and Key Metrics Changes - Consolidated gross profit for Q1 2025 was $22 million, a 7.9% increase over Q1 2024, marking the highest gross profit in the past twelve quarters [21] - Adjusted EBITDA for Q1 2025 was $7.8 million, compared to $6.2 million for Q1 2024, reflecting a growth of 14.4% [21] - Adjusted EPS for Q1 2025 was $0.63, up from $0.53 in Q1 2024, indicating an 18.9% increase [21] Business Line Data and Key Metrics Changes - In healthcare, gross profit for Q1 2025 was $12.2 million, compared to $11.1 million in Q1 2024, growing 10.2% [21] - Engineering gross profit for Q1 2025 was $6.2 million, up from $5.5 million in Q1 2024, a growth of 12.4% [22] - In IT, life sciences, and data solutions, gross profit for Q1 2025 was $3.6 million, down from $3.8 million in Q1 2024, a decline of 5.3% [25] Market Data and Key Metrics Changes - School revenue for Q1 2025 was $37.3 million, compared to $31.9 million in Q1 2024, reflecting a growth of 16.7% [22] - Non-school revenue for Q1 2025 was $6 million, slightly down from $6.3 million in Q1 2024, but would have been $5.5 million versus $5.1 million if excluding a large long-term care group [22] Company Strategy and Development Direction - The company is focused on cultivating the next generation of leadership and enhancing operational efficiency to ensure long-term success [4] - There is a strong emphasis on revenue expansion and new client acquisition, particularly in the healthcare and engineering sectors [6][9] - The company is capitalizing on technological advancements in AI and machine learning, with a significant expansion in manufacturing across its life sciences client base [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, focusing on secular themes that can drive growth [30] - The outlook for the business is strong, with expectations of continued low double-digit growth in adjusted EBITDA throughout fiscal 2025 [26] - Management anticipates Q4 2025 will produce the highest adjusted EBITDA quarter for the year [26] Other Important Information - The company has retired over 300,000 shares year-to-date, bringing the total repurchase over the last five years to nearly half of shares outstanding [20] - The balance sheet remains clean with significant financial flexibility and resilient organic growth [20] Q&A Session Summary Question: Is political policy uncertainty affecting the business? - Management indicated that they have not encountered significant issues related to the macroeconomic environment and are focused on leveraging secular themes for growth [30] Question: Regarding healthcare gross margins, is the lower margin due to legacy business? - Management clarified that the lower gross margin is more of a quarterly fluctuation rather than a trend, with expectations for improvement in Q2 [32][33]

Financial Data and Key Metrics Changes - Q1 2025 was described as a solid start to the year with reaffirmed full-year 2025 adjusted EBITDA guidance across all of IAC [6][18] - The company repurchased 4,500,000 shares and increased share repurchase authorization by 10,000,000 shares [6][12] - DDM (Dotdash Meredith) grew digital revenues by 7% in Q1 and increased EBITDA by 46%, excluding a one-time lease gain [8][10] Business Line Data and Key Metrics Changes - DDM's digital advertising revenue was up 1% in Q1, with premium demand remaining stable despite a decline in core traffic [35][40] - Licensing revenue led growth with a 30% increase, aided by the OpenAI license and strong performance at Apple News [36] - Performance marketing also showed strong growth at 11% [36] Market Data and Key Metrics Changes - The macroeconomic outlook remains uncertain, with consumer spending through DDM's performance marketing being solid despite weak consumer confidence [15][18] - Programmatic pricing has softened, running flat year over year after previously increasing [17][18] - The advertising base showed strength in pharma, tech, and beauty, offsetting weaknesses in food and beverage [17] Company Strategy and Development Direction - The company is focused on executing growth across its businesses and capital allocation, including share buybacks and M&A opportunities [11][12] - The strategy includes pursuing strategic divestitures of smaller holdings to free up capital [13] - The company aims to create equity value and reduce the discount between share price and intrinsic value [10][12] Management's Comments on Operating Environment and Future Outlook - Management is carefully monitoring the macroeconomic environment for signs of stability or weakness among consumers and brands [18] - The company is optimistic about future growth, particularly in 2026, with several key projects underway [22][26] - Management acknowledged the challenges in the advertising market but emphasized the strength of their brands and execution capabilities [40][41] Other Important Information - The company reached an agreement to settle litigation related to the match separation with minimal additional costs [10] - The appointment of Jim Lawson as President of Decipher was highlighted as a strategic move to enhance the product's market presence [48][50] Q&A Session Summary Question: Key priorities for 2026 TDM revenue growth and capital allocation - Management discussed ongoing projects like the People app and MyRecipes, emphasizing their focus on meeting younger audiences [22][24] - Capital allocation will balance between share repurchases and M&A opportunities, with a cautious optimism for new investments [27][28] Question: Q1 trends in DDM Digital revenue - Management noted that Q1 faced tough comparisons and a decline in core traffic, but licensing and performance marketing showed strong growth [34][36] Question: Impact of Google’s AI transition and programmatic softness - Management indicated that the impact of Google's AI changes is not significant yet, and programmatic pricing has stabilized after a period of growth [114][116] Question: Appointment of Jim Lawson and Decipher's strategy - The appointment was seen as a strategic advantage to enhance Decipher's market presence and execution capabilities [48][50] Question: AI opportunities across the IAC portfolio - Management highlighted ongoing AI applications in various segments, particularly in improving customer service and marketing efficiency [83][85]

Financial Data and Key Metrics Changes - Q1 2025 was described as a solid start to the year, with IAC reaffirming full year 2025 adjusted EBITDA guidance across all businesses [5][16] - DDM grew digital revenues by 7% in Q1 and increased EBITDA by 46%, excluding a one-time lease gain [7][16] - The company repurchased 4,500,000 shares and increased share repurchase authorization by 10,000,000 shares [5][11] Business Line Data and Key Metrics Changes - DDM's licensing revenue grew by 30%, driven by the OpenAI license and strong performance at Apple News [34] - Performance marketing also showed strong growth at 11% [34] - The Daily Beast achieved a revenue growth of 72% while reaching profitability [8] Market Data and Key Metrics Changes - Core traffic for DDM declined by 3% in Q1, with digital advertising only up by 1% due to fewer impressions available for programmatic sales [33] - Premium demand in advertising remained stable, with strength in pharma, tech, and beauty offsetting weaknesses in food and beverage [15][33] - Programmatic pricing softened, running flat year over year after previously increasing [15] Company Strategy and Development Direction - The company is focused on executing growth across its businesses and capital allocation, including share buybacks and M&A opportunities [10][11] - IAC is pursuing strategic divestitures of smaller holdings to free up capital and simplify operations [12] - The company aims to create equity value and reduce the discount at which its shares are trading [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting solid performance in DDM despite weak consumer confidence [14][16] - The macroeconomic outlook remains uncertain, but the company is monitoring trends closely and reaffirming guidance based on current business performance [16] - Management highlighted the importance of focusing on execution and controlling what can be controlled in an unpredictable environment [16] Other Important Information - The company reached an agreement to settle litigation related to the match separation, requiring only a $200,000 contribution beyond insurance coverage [8] - IAC has $800 million in net operating losses (NOLs) that could offset taxable gains on its MGM stake [9] Q&A Session Summary Question: Key priorities for 2026 TDM revenue growth and capital allocation - Management discussed excitement about 2026, highlighting projects like the People app and MyRecipes, and emphasized the importance of capital allocation between share repurchases and M&A [18][20][25] Question: Q1 trends in DDM Digital revenue - Management noted that Q1 faced tough comparisons and a decline in core traffic, but March showed solid growth in digital advertising [30][32] Question: DDM cash flow dynamics - Management explained that DDM can dividend cash to IAC if leverage ratios are below four times total debt to EBITDA, enhancing financial flexibility [43] Question: Appointment of Jim Lawson as President of Decipher - Management expressed excitement about Jim Lawson's appointment, emphasizing his experience and the potential for Decipher Plus to drive growth [46][48] Question: Impact of Google phasing out cookies - Management indicated that the cookie phase-out is not a significant concern, as their contextual targeting capabilities remain strong [58][60] Question: Strategic priorities for Care.com - Management outlined three core priorities for Care: improving product matching, optimizing pricing and packaging, and enhancing marketing efforts [100][104]