2025-05-14 14:20Summary of IAC FY Conference Call - May 14, 2025 Company Overview - Company: IAC - Recent Changes: Spun off ANGI, resulting in a new management structure with Chris Halpin as COO and CFO, and Barry Diller as Chairman and Senior Executive [3][5][6] Portfolio Composition - Key Assets: - Dotdash Meredith: Leading digital and print publisher with over $1 billion in digital revenue and $300 million in adjusted EBITDA [3][4] - 23% stake in MGM Resorts International, a major player in gaming [3][4] - Care.com: Leading online caregiver service [4] - 32% stake in Turo: Top car-sharing platform [4] - Vivien: Health care staffing platform [4] - Cash reserves of $900 million at IAC [4] Strategic Priorities Post-ANGI - Focus Areas: - Execution: Driving revenue growth and free cash flow across portfolio companies [9][10] - Capital Allocation: Share buybacks ($200 million so far), M&A opportunities, and strategic divestitures [10][11][12] - Catalysts: Pursuing actions that create shareholder value, such as the recent ANGI spin-off [12][13] Macro Environment Insights - Current Economic Outlook: Uncertainty exists, but no clear signs of an impending downturn; cautious optimism for Q4 [14][19] - Advertising Trends: Premium advertising remains strong, with some softness in specific categories [15][16] - Consumer Spending: Continued strength in performance marketing, with no significant signs of weakness [16][17] Dotdash Meredith (DDM) Insights - Business State: Strong performance with a diversified asset base and effective ad tech stack [20][21] - Decipher Initiative: A cookie-less targeting solution showing promising results, outperforming traditional methods [23][24][25] - Direct-to-Consumer Strategy: Transitioning traffic sources to enhance direct relationships with consumers [27][28][29] MGM Stake - Investment Rationale: MGM is viewed as a "forever asset" with significant embedded value; strong performance in both digital and physical assets [41][42][43] Care.com Performance - Business Segments: Strong growth in enterprise segment due to increased demand for backup care services; consumer segment facing challenges but expected to grow [44][45][48] Turo and Search Business - Turo: Leading car-sharing platform with significant growth potential; focus on increasing brand awareness [49][50][51] - Search (Vivien): Stable performance with innovative use of AI in healthcare staffing [52][53] Capital Allocation Strategy - Share Repurchase: Ongoing buybacks and exploration of M&A opportunities, focusing on growth potential and strategic fit [54][55][56] - Investment Philosophy: Preference for control in acquisitions, with a focus on growth rather than short-term cash flow maximization [56][57] Future Outlook - Strategic Clarity: Enhanced focus on capital allocation and value creation for shareholders [58][59] - Decipher's Potential: Belief in the competitive advantage of Decipher as a transformative tool for advertising [60][61]