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]

Financial Data and Key Metrics Changes - The company reported a solid fourth quarter with digital revenue growth of 14%, driven by strong performance 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, reflecting a 10% growth [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, showcasing strong execution [14] - Licensing revenue surged by 36%, aided by engagement with content across platforms like Apple News [15] Market Data and Key Metrics Changes - Core web sessions declined by 13% year-over-year, primarily due to a 50% drop in Google Search referrals over the last two years [20] - Non-session-based revenue sources now comprise about 38% of total digital revenue, growing 37% year-over-year in Q4 [22] Company Strategy and Development Direction - The company is focused on transforming traditional content businesses into new consumer products and services, aiming for stronger revenue streams [6][12] - There is a significant emphasis on off-platform growth, with brands expanding their presence across social media and other platforms [5][21] - The company plans to continue investing in new products and services, with a focus on direct relationships with audiences and advertisers [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, 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 current guidance due to strong momentum [34] Other Important Information - The company will stop providing quarterly guidance to focus on long-term value creation, while still offering annual guidance [27][28] - The company has repurchased $337 million of its shares over the past 12 months, reducing the share count by 10% [30] Q&A Session Summary Question: Can you elaborate on the key drivers of non-session-based revenue growth? - Management highlighted that the growth is driven by diversifying distribution channels and aligning with audience trends, moving away from reliance on Google [36][38] Question: What are IAC's M&A aspirations? - Management indicated a cautious approach to M&A, focusing on opportunities that align with their current assets, particularly MGM and People [53][54] Question: How scalable are the new curated experiences? - Management emphasized the importance of direct relationships with audiences and advertisers, noting that new products like MyRecipes and the People app are showing strong engagement [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: How is the ad market performing? - Management rated the 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 [96]

Financial Data and Key Metrics Changes - The company reported a solid fourth quarter with $1.8 billion in revenue, of which $1.1 billion was digital revenue, reflecting a 10% year-over-year growth [15][14] - Adjusted EBITDA for the year was $331 million, with digital EBITDA margins remaining flat year-over-year at 28% [15][14] - In Q4, adjusted EBITDA grew 9% in digital, with incremental digital margins at 26% [14][15] Business Line Data and Key Metrics Changes - Digital revenue grew by 14% in Q4, driven by advertising (up 9%), performance marketing (up 17%), and licensing (up 36%) [13][14] - The print segment saw a decline of 23%, attributed to a prior period's political advertising revenue and ongoing sectoral decline [14] - Care revenue declined by 9% in Q4, with enterprise revenue down 13% due to tightened employer benefits spending [23] Market Data and Key Metrics Changes - Core web sessions decreased by 13% year-over-year, primarily due to a 50% drop in Google Search referrals over the last two years [19] - Non-session-based revenue sources now comprise about 38% of total digital revenue, growing 37% year-over-year in Q4 [21] - Off-platform views nearly doubled in the last two years, with a 43% year-over-year growth last quarter [20] Company Strategy and Development Direction - The company is focused on transforming traditional content businesses into new consumer products and services, aiming for stronger revenue streams [5][11] - There is a significant emphasis on off-platform strategies and expanding brand presence across social media and other platforms [4][20] - The company plans to continue evaluating buybacks and is optimistic about the growth potential in its People segment [12][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate AI disruptions and highlighted the strength of its brands [4][12] - The outlook for 2026 is bullish, with expectations for People to exceed conservative guidance due to strong momentum [32] - Management noted that the advertising market remains generally favorable, with specific strengths in health, pharma, and travel sectors [94] Other Important Information - The company will stop providing quarterly guidance to focus on long-term value creation, while still offering annual guidance [26] - The company expects litigation expenses related to Google AdTech litigation to impact corporate expenses significantly [27] - Corporate adjusted EBITDA was $23 million, down from the previous year, as the company continues to reduce overhead [24] Q&A Session Summary Question: Could you elaborate on the key drivers of non-session-based revenue growth? - Management highlighted that the growth is driven by diversifying traffic sources and developing new distribution channels, moving away from reliance on Google [34][36] Question: What are IAC's M&A aspirations? - Management indicated interest in finding unique opportunities like MGM but noted a lack of attractive options currently available [50] Question: How scalable are the new curated experiences at People? - Management emphasized the importance of direct relationships with audiences and advertisers, noting strong engagement metrics from new products like MyRecipes and the People app [61][62] Question: What is the outlook for the Care segment? - Management expects Care revenue to return to growth by midyear, driven by product improvements and marketing investments [23] Question: Can you provide an update on the Google litigation? - Management stated that the litigation is based on antitrust claims against Google, with expectations to recover significant damages [86][87]

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]