Financial Data and Key Metrics Changes - IAC reported a 9% digital revenue growth in Q3, marking the eighth consecutive quarter of growth, with strong performance in licensing and performance marketing [13][14] - Digital-adjusted EBITDA grew 9% pro forma to $72 million, with 27% margins, and the company expects digital revenue growth in the 7%-10% range for Q4 [30][31] - The company has a cash balance exceeding $1 billion, which will be enhanced by selling non-core assets [11][12] Business Line Data and Key Metrics Changes - People Inc. achieved a digital revenue growth of 9% in Q3, driven by its iconic portfolio of brands and strong audience engagement [14][15] - The print division saw a 15% revenue decline, but adjusted EBITDA only declined by 10%, indicating effective cost management [30] - Off-platform audience growth accelerated by 66% year-over-year, contributing significantly to revenue [22] Market Data and Key Metrics Changes - Google Search traffic as a source for core brands dropped from 54% two years ago to 24% in the latest quarter, but overall audience scale has been maintained [19][20] - Ad revenue declined by 3% in Q3, primarily due to volume-related issues rather than rate-related [21] - The macro environment appears solid for middle and upper-end consumers, while pressures are noted in the lower-end market [46][47] Company Strategy and Development Direction - IAC aims to streamline its assets, focusing on People and MGM, while divesting non-core holdings and reducing overhead [4][5] - The company is reimagining People Inc. to transition from a defensive to an offensive strategy, leveraging its brands to create new business opportunities [5][6] - MGM is viewed as a hedge against disintermediation, with a strong position in Las Vegas and a focus on digital opportunities [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of People Inc. and MGM, highlighting the potential for growth despite current challenges [13][41] - The company is optimistic about upcoming AI-related deals and the value of its content in the evolving digital landscape [23][24] - Management acknowledged the impact of Google litigation costs but views the spending as worthwhile given the potential for significant damages [40][45] Other Important Information - The company laid off about 6% of its workforce to free up capital for investments and maintain profitability goals [27] - IAC has repurchased $300 million worth of shares year-to-date, representing about 8% of its outstanding shares [33] Q&A Session All Questions and Answers Question: Current thinking on MGM's valuation and why invest through IAC - Management believes that investing in MGM through IAC offers a cheaper entry point and provides additional value from IAC's other assets [34][38] Question: One-time expense cleanup in Q3 - Management indicated that significant one-time expenses have been cleaned up and do not expect similar charges in the future [39] Question: Update on the state of the business and Google litigation - Management expressed confidence in the business's future, citing the Microsoft AI deal and the Feedfeed acquisition as positive indicators [41][42][45] Question: Macro environment observations - The macro environment is solid for middle and upper-end consumers, with some pressures noted in the lower-end market [46][47] Question: Capital allocation strategy moving forward - Management emphasized a focus on opportunistic share buybacks rather than pursuing high-priced acquisitions [49]

Summary of IAC FY Conference Call - August 13, 2025 Company Overview - **Company**: IAC (InterActiveCorp) - **Key Businesses**: - People Inc (formerly Dotdash Meredith) - Care.com - Vivien Health (healthcare staffing) - The Daily Beast - Search business - **Financial Position**: $900 million in cash at the parent level with no debt at the parent level, although there is debt at People Inc which was refinanced attractively in June [10][11][12] Rebranding and Digital Transition - **Rebranding**: Transition from Dotdash Meredith to People Inc aimed at simplifying the brand for better recognition and marketability [5][6][13][15] - **Digital Focus**: The company is transitioning from print to digital, with a significant reduction in print publications from 12-13 to 7 over three years. The print business is maintained for branding and cash flow purposes [18][19][20] - **Digital Revenue**: 64% of the company's digital revenue comes from owned and operated (O&O) websites, with a focus on diversifying traffic sources beyond Google [25][28] Growth and Future Opportunities - **Long-term Goals**: Targeting 10% digital growth, with potential upside through new brands and leveraging consumer data [31][33] - **Decipher Tool**: An ad targeting tool that utilizes first-party data to enhance advertising effectiveness, potentially increasing the total addressable market (TAM) for ad sales [33][82] - **Care.com Growth**: Aiming for 10-20% growth in the consumer segment by improving product offerings and marketing strategies [94][97] Advertising Market Insights - **Market Conditions**: The advertising market is described as "good, not great," with sector-specific performance. Health and pharma are solid, while CPG and food and beverage sectors are facing challenges [68][71] - **Programmatic Advertising**: Programmatic revenue accounts for about 25-30% of total digital revenue, with recent improvements noted in pricing and demand [75][77] Strategic Partnerships and Licensing - **LLM Licensing**: The company is exploring licensing deals with LLM (Large Language Model) providers, emphasizing the need for high-quality content and potential economic arrangements [39][41] - **Cloudflare Partnership**: A partnership aimed at blocking LLM crawlers, except for OpenAI, has led to increased discussions with other LLM providers about accessing content [40] Financial Management and Shareholder Value - **Share Repurchases**: The company has been cautious with share buybacks, having repurchased $200 million worth of stock earlier in the year, while also considering M&A opportunities [58][59] - **Corporate Overhead**: Targeting a reduction in corporate overhead expenses, aiming for a run rate of $80-90 million by year-end [63][65] Key Business Segments - **Vivien Health**: Positioned as a strategic asset in healthcare staffing with a marketplace model connecting nurses and healthcare systems, currently generating mid-eight figures in revenue [99][100] - **Care.com**: Focused on stabilizing and growing the consumer segment after a decline in subscribers, with a new CEO implementing product improvements [96][97] Conclusion - The company is optimistic about its future growth prospects, leveraging its strong brand portfolio and digital capabilities to navigate the evolving media landscape [36][56]