Core Insights - Bright Mountain Media, Inc. reported strong financial momentum in Q2 2025, with revenue reaching $15.4 million, an 18% increase from $13.0 million in Q2 2024, driven primarily by its advertising technology division [2][3][4] Financial Performance - Q2 2025 revenue was $15.4 million, up $2.4 million from Q2 2024, with the advertising technology division being the main contributor [3][4] - For the first half of 2025, total revenue was $29.6 million, a 16% increase from $25.5 million in the same period of 2024 [4][7] - Advertising technology revenue for Q2 2025 was approximately $5.1 million, while digital publishing revenue was approximately $359,000 [3][7] - Cost of revenue for Q2 2025 was $12.4 million, an increase of 29% from $9.6 million in Q2 2024, primarily due to increased publisher costs and direct project costs [3][5] - General and administrative expenses decreased by 24% to $4.0 million in Q2 2025 compared to $5.3 million in Q2 2024 [5][10] - The net loss for Q2 2025 was $4.1 million, a 22% improvement from a net loss of $5.2 million in Q2 2024 [5][10] Adjusted EBITDA - Adjusted EBITDA loss for Q2 2025 was $218,000, showing a 76% improvement from a loss of $920,000 in Q2 2024 [6][18] - For the first half of 2025, adjusted EBITDA was $599,000, compared to a loss of $2.0 million in the same period of 2024 [6][19] Revenue Breakdown - Revenue breakdown for Q2 2025 included approximately $5.1 million from advertising technology, $359,000 from digital publishing, $7.3 million from consumer insights, $1.7 million from creative services, and $869,000 from media services [3][7] - For the first half of 2025, advertising technology revenue was approximately $9.3 million, digital publishing revenue was approximately $942,000, consumer insights revenue was approximately $14.4 million, creative services revenue was approximately $3.2 million, and media services revenue was approximately $1.7 million [7]

Core Insights - Bright Mountain Media, Inc. reported a 14% year-over-year revenue growth in Q1 2025, reaching $14.2 million, driven primarily by its advertising technology division [2][3][6] - The gross margin increased by 36% to $4.3 million, indicating effective operational leverage and strategic execution [2][6] - The company experienced a net loss of $3.2 million, which is a 32% improvement compared to the net loss of $4.8 million in Q1 2024 [7][9] Financial Performance - Revenue for Q1 2025 was $14.2 million, up from $12.4 million in Q1 2024, an increase of $1.7 million [3][6] - Advertising technology revenue was approximately $4.2 million, while consumer insights revenue was about $7.0 million [3] - The cost of revenue rose to $9.9 million, a 7% increase from $9.3 million in the same period of 2024 [7] Operational Highlights - The increase in revenue was attributed to the advertising technology division's ability to attract high-value advertisers and onboard premium publishers [2][3] - General and administrative expenses decreased by 14% to $4.5 million compared to $5.2 million in Q1 2024 [7] - Adjusted EBITDA for Q1 2025 was $816,000, a significant increase of 173% from an adjusted EBITDA loss of $1.1 million in Q1 2024 [7][16] Company Overview - Bright Mountain Media operates a diverse portfolio that includes digital publishing, advertising technology, consumer insights, and media services [4] - The company aims to deliver a full spectrum of advertising and media services, leveraging data-driven insights [4]

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 segments [6][18] - The company repurchased 4,500,000 shares and increased share repurchase authorization by 10,000,000 shares [6][12] - IAC's shares are trading below the value of its 23% stake in MGM and $900,000,000 in cash, indicating a significant value disconnect [10] Business Line Data and Key Metrics Changes - Dotdash Meredith (DDM) grew digital revenues by 7% in Q1 and increased EBITDA by 46%, excluding a one-time lease gain [8] - Licensing revenue at DDM grew by 30%, driven 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 advertising market showed signs of stability, with premium demand remaining generally stable despite some weakness in food and beverage sectors [17] - Programmatic pricing has softened, running flat year over year after previously increasing [18] - Consumer spending through DDM's performance marketing has been solid, contrasting with weak consumer confidence numbers [16] 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] - IAC is pursuing strategic divestitures of smaller holdings to free up capital and simplify operations [13] - The strategy includes leveraging its strengths in capital investment and operational know-how to pursue acquisitions [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic outlook but remains optimistic about the company's performance and growth opportunities [6][18] - There are early signs of consumer pressure in some areas, but no significant moves have been observed yet [17] - Management is carefully monitoring the macroeconomic environment for signs of stability or weakness among consumers and brands [18] 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 [9] - The appointment of Jim Lawson as President of Decipher was highlighted as a strategic move to enhance the product's commercial potential [48][50] Q&A Session All Questions and Answers Question: Key priorities for 2026 TDM revenue growth and capital allocation - Management discussed excitement about 2026, focusing on major projects like the People app and Decipher Plus for ad targeting [22][24] - Capital allocation will balance between share repurchases and M&A opportunities, with a cautious optimism for new opportunities in the private market [27][29] Question: Q1 trends in DDM Digital revenue - Q1 saw slower growth due to tough comps and a decline in core traffic, but March showed solid growth in digital advertising [34][36] - For Q2, guidance is set at 7% to 9% digital revenue growth, with expectations of stable traffic and continued solid performance marketing [38] Question: Impact of Google partnership and programmatic softness - The Google contract is focused on search, with no cloud savings involved, and the impact of Google's AI changes is still being assessed [113][114] - Programmatic pricing has softened, with a disconnect between direct revenues and programmatic performance [18][112] Question: Learnings from OpenAI partnership and AI opportunities - The partnership with OpenAI has been productive, aiding in the rollout of products and enhancing targeting capabilities [80] - AI applications are being explored across the portfolio, with significant potential in customer service and marketing optimization [81][84] Question: Challenges in the Care business - The Care segment is focusing on improving product matching, pricing, and marketing to regain stability and growth [100][103] - Leadership changes and strategic improvements are being implemented to enhance the consumer experience [101][105]

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]