IAC(US:IAC)2023-08-09 18:32Financial Data and Key Metrics Changes - The company reported a significant revenue decline in Angi, attributed to a strategic shift towards optimizing customer experience over short-term revenue [15][16] - Year-to-date, Angi generated $55 million in cash flow, indicating a $110 million increase compared to the previous year [94] Business Line Data and Key Metrics Changes - Dotdash Meredith achieved 1% digital growth in June, driven by strong performance marketing, and reached stability in sessions and traffic [20][21] - The company expects flat to slightly negative revenue growth in Q3 for Dotdash Meredith, with a strong outlook for Q4 [22][23] Market Data and Key Metrics Changes - The advertising market remains soft, with a noted improvement in programmatic market conditions compared to earlier in the year [48] - Categories showing strength include retail, beauty, style, travel, and auto, while finance and telecom continue to struggle [50] Company Strategy and Development Direction - The company is focused on building exceptional products that enhance customer experience and drive long-term retention [10][12] - Angi is restructuring demand channels to improve customer experience and retention of service professionals [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the changes made in Q2, expecting benefits in the coming quarters [17] - The company is preparing for a more offensive strategy in 2024, focusing on product innovation and improving the homeowner experience [59][94] Other Important Information - The company is leveraging generative AI to enhance content creation and improve user personalization [102][104] - There is an ongoing focus on protecting intellectual property rights in the context of generative AI and LLM training [105][106] Q&A Session Summary Question: What drove the larger-than-expected revenue decline in Angi in Q2? - Management indicated that the decline was due to a strategic shift towards optimizing customer experience, which involved restructuring demand channels [15][16] Question: What are the revenue trends at Dotdash Meredith exiting Q2? - Management reported 1% digital growth in June and expects flat to slightly negative revenue growth in Q3, with a strong outlook for Q4 [20][22] Question: How does the company view competition from social media platforms? - Management acknowledged competition for attention but sees it as an opportunity to enhance their own social media presence and video content [45][47] Question: What is the outlook for Angi's growth? - Management believes Angi can return to growth in 2024, focusing on improving retention and conversion rates [94][96] Question: How is the company utilizing generative AI? - The company is using generative AI to improve content production efficiency and enhance user personalization [102][104] Question: What is the company's stance on protecting its content in the context of AI? - Management emphasized the importance of protecting intellectual property rights and engaging in productive conversations within the ecosystem [105][106]