IAC (IAC) FY Conference Transcript

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]