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]

Financial Data and Key Metrics Changes - The company reported a solid fourth quarter with digital revenue growth of 14%, driven by strong execution across advertising, performance marketing, and licensing [5][14] - Adjusted EBITDA for the quarter grew 9% in digital, with digital margins at 26% [16] - For the full year, total revenue reached $1.8 billion, with digital revenue accounting for $1.1 billion and growing 10% year-over-year [17] Business Line Data and Key Metrics Changes - Advertising revenue grew by 9% despite a 13% decline in core sessions, indicating success in the off-platform strategy [14] - Performance marketing saw a 17% increase during the holiday period, reflecting strong consumer engagement [14] - Licensing revenue surged by 36%, aided by partnerships with Apple News and Meta [15] Market Data and Key Metrics Changes - The print segment experienced a decline of 23%, attributed to a prior period's political advertising revenue and ongoing sectoral declines [16] - Core web sessions fell by 13% year-over-year, primarily due to a 50% drop in Google Search referrals over the last two years [20] Company Strategy and Development Direction - The company is focused on transforming traditional content businesses into new consumer products and revenue streams that are less susceptible to disintermediation [6][12] - New product initiatives include Southern Living and Food & Wine, aimed at creating unique consumer experiences and leveraging existing brand strengths [6][8] - The strategy emphasizes off-platform audience engagement, with non-session-based revenue now comprising about 38% of total digital revenue and growing 37% year-over-year [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, particularly in the face of AI disruption, and highlighted the strength of their brands [5][12] - The outlook for 2026 is optimistic, with expectations for People Inc to exceed conservative guidance due to strong momentum [34] - The company plans to continue evaluating buybacks and is mindful of the current undervaluation of IAC [13] Other Important Information - The company will stop providing quarterly guidance to focus on long-term value creation, while still offering annual guidance [27] - The expected litigation expenses related to Google AdTech litigation are projected at approximately $15 million for the year [28] Q&A Session Summary Question: Can you elaborate on the key drivers of non-session-based revenue growth? - Management indicated that the growth is driven by diversifying traffic sources and developing new distribution channels, moving away from reliance on Google [36][38] Question: What are IAC's M&A aspirations? - Management expressed interest in finding unique opportunities but noted that currently, there are no exciting prospects on the horizon [51][53] Question: How scalable are the new curated experiences? - Management emphasized the importance of direct relationships with audiences and advertisers, highlighting successful new initiatives like MyRecipes and the People app [64][66] Question: What is the outlook for the Care segment? - The Care segment is expected to return to growth by midyear, with ongoing improvements in product offerings and marketing investments [25] Question: Can you provide insights on the ad market? - Management rated the current ad market as a six out of ten, noting solid performance in health, pharma, and travel sectors, while some macro-exposed sectors are facing challenges [95]

IAC (NasdaqGS:IAC) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsBarry Diller - Chairman and Senior ExecutiveChristopher Halpin - EVP, COO and CFOEric Sheridan - Managing Director and co-leader of the Technology, Media, and Telecommunications (TMT) groupJason Helfstein - Managing Director and Head of Internet ResearchNeil Vogel - CEOConference Call ParticipantsCorey Carpenter - Executive Director and Senior Equity Research AnalystJames Heaney - Senior Vice President and Lead Analys ...

IAC (NasdaqGS:IAC) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Speaker3Please note this event is being recorded. I would now like to turn the conference over to Christopher Halpin, COO and CFO. Please go ahead.Speaker1Thank you. Good morning, everyone. Christopher Halpin here, and welcome to the IAC fourth quarter earnings call. Joining me today are Barry Diller, the Chairman and Senior Executive of IAC, and Neil Vogel, CEO of People Inc. IAC has published a presentation on the investor relations se ...

Financial Performance & Valuation - IAC's equity value is $2.5 billion[11] - IAC repurchased $100 million in shares in Q3, and $300 million, representing 8% of equity, year-to-date[9] - People Inc's digital revenue is $1.1 billion and adjusted EBITDA is $332 million[12] - People Inc's net debt is $1.2 billion, with leverage less than 4x[12] - IAC expects FY 2025 Adjusted EBITDA of $234 million to $258 million[52] Digital Segment Performance (People Inc.) - Digital revenue grew by 9% in Q3 2025, reaching $269 million[43] - Digital Adjusted EBITDA excl Certain Items grew by 9% to $72 million in Q3 2025[43] - Digital revenue has shown an 13% compound annual growth rate (CAGR) from 2023 to 2025[17] - Off-Platform Views increased with a 43% CAGR from Q3 2023 to Q3 2025[38] Strategic & Operational Initiatives - The company recognized $15 million of severance expense in Q3 related to a reduction in force (RIF) impacting approximately 6% of employees[41] - The company is delivering $65 million of run rate savings to be invested in new growth initiatives and enhance profitability[41]

Financial Data and Key Metrics Changes - IAC reported a 15% increase in adjusted EBITDA for the quarter, with guidance for full-year EBITDA set between $247 million and $285 million [7][44] - Digital revenue growth accelerated to 9% in Q2, up from 7% in Q1, marking a return to core sessions growth [5][45] - The refinancing of $1.4 billion in debt at People Inc. was completed, replacing the original acquisition capital structure with new bank debt and bonds at attractive pricing [5] Business Line Data and Key Metrics Changes - People Inc. achieved 9% digital revenue growth, with core sessions growth returning despite macro volatility [5] - MGM reported a 36% net revenue growth in Q2, with increased full-year revenue guidance to at least $2.7 billion [6] - Care.com is seeing promising signs of growth in engagement metrics following a product and brand revitalization [7][42] Market Data and Key Metrics Changes - The percentage of traffic from Google has decreased from 52% to 28%, while overall sessions have increased [31][27] - Off-platform views have become a significant revenue source, contributing to approximately one-third of digital revenue [28][29] - The digital margins for People Inc. reached just under 29% in FY 2024, with expectations for continued growth in adjusted EBITDA margins [36] Company Strategy and Development Direction - The rebranding to People Inc. aims to reflect the company's focus on premium content created by people for people, enhancing its market positioning [10][66] - The company is actively pursuing M&A opportunities and exploring strategic divestitures to bolster its cash balance [9][68] - A focus on diversifying audience sources and reducing reliance on Google traffic is central to the company's strategy [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain growth despite challenges posed by AI and changes in Google’s search algorithms [77][78] - The company anticipates continued growth in off-platform audiences and improved monetization strategies [49][56] - Management remains optimistic about the long-term revenue growth target of 10% for digital revenue, driven by various initiatives [95] Other Important Information - Care.com has relaunched its platform, enhancing user experience and aiming to drive consumer engagement [41][42] - The company is focusing on optimizing its product offerings and marketing strategies to capture a larger share of the addressable market [88][90] Q&A Session Summary Question: Can you elaborate on the trajectory of sessions, including Google Search and off-platform views? - Management expects O&O sessions to be flat to slightly up in the future, with continued growth in off-platform views [48][49] Question: What are the factors affecting the 2Q PeopleLink digital revenue? - Digital advertising grew 5%, with strong performance in performance marketing and licensing, despite some challenges in core sessions [53][54] Question: What is the current penetration of Google AI reviews? - AI reviews are present in approximately 50% to 55% of searches where the company's content appears [75] Question: What is the outlook for M&A opportunities? - The company is actively evaluating both public and private opportunities, focusing on quality defensible businesses and AI applications [68][70] Question: What factors need to be addressed for Care.com to grow faster? - The company needs to improve product experience, expand pricing and packaging options, and enhance matching capabilities between care seekers and providers [88][90]

Financial Performance & Guidance - IAC's consolidated Adjusted EBITDA grew by 15% [8] - Full-year 2025 Adjusted EBITDA guidance is between $247 million and $285 million [8] - People Inc expects Q3 2025 Digital revenue growth of 7%-9% and total Adjusted EBITDA between $68 million and $73 million [54] - For FY 2025, People Inc expects Digital revenue growth between 7%-10% [54] People Inc (Formerly Dotdash Meredith) - Digital revenue growth accelerated to 9% [8] - Digital Adjusted EBITDA margin was 24% in Q2 2025 [32] - People Inc's Digital revenue for Q2 2025 was $260 million [32] - People Inc's Digital Adjusted EBITDA for Q2 2025 was $63 million [32] Care.com - Care.com's revenue for the last twelve months ending June 30, 2025, was $360 million [46] - Care.com's Adjusted EBITDA for the last twelve months ending June 30, 2025, was $46 million [46] - Care.com expects revenue declines of 4%-7% in Q3 [54]

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 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]