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]
IAC(IAC) - 2025 Q2 - Earnings Call Transcript