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Forbes
07-05-2025
- Business
- Forbes
IAC's Recent Spin Of ANGI Sharpens Focus
(Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images On May 5, 2025, IAC Inc. (NASDAQ: IAC, $34.09; Market Capitalization: $2.7 billion) reported 1Q25 results. IAC's performance marked a transitional yet strategically active quarter, reflecting both operational progress and macro-driven challenges. The company completed the spin-off of Angi Inc., sharpened its focus on core assets, and reinforced shareholder value through significant share repurchases. Dotdash Meredith (DDM) continued to outperform peers with resilient digital growth, strong brand engagement, and promising innovation in contextual ad tech, despite softer programmatic trends. faced headwinds from weaker consumer subscriptions but is undergoing a product and pricing overhaul to reignite growth. The Search segment showed early signs of stabilization, while Emerging & Other segment benefited from The Daily Beast's turnaround. Management reaffirmed its full-year guidance, citing stable premium ad demand and disciplined cost control, while remaining cautious amid economic uncertainty and evolving digital advertising dynamics. IAC Price Performance Spin-Off Details and Top 5 Shareholders Spin-Off Research Total revenue declined 8.6% YoY to $570.5 million (-29.5% vs consensus). The Search segment saw a steep 35.2% YoY drop, mainly due to reduced visitors to ad-supported search and content websites. Emerging & Other revenue fell 46.2% YoY, due to the Mosaic Group asset sale. declined 3.9% YoY due to a lower subscriptions impacting consumer revenue, partly offset by enterprise revenue growth from increase in backup care utilization. DDM showed a modest 0.7% YoY growth driven by increased revenue from the digital segment, offset by a decline in revenue in the print segment. Adjusted EBITDA rose sharply by 825.5% YoY to $50.9 million, beating consensus by 276.2%, with margins improving 804bps to 8.9%, mainly due to Dotdash Meredith's strong digital segment and a $36.0 million lease termination gain. The Emerging & Other segment also reduced losses significantly, aided by the absence of prior-year's severance and transaction costs. Operating profit stood at $35.8 million, versus a $63.4 million loss last year, driven by a $64.0 million improvement in Dotdash Meredith's operating income. However, the company posted a net loss of $216.8 million (vs. $45.0 million profit in 1Q24), primarily due to a $324.3 million unrealized loss on its MGM investment. Diluted loss per share stood at $2.64 (1Q24: gain of $0.51 per share). For FY25, IAC expects Adj. EBITDA in the range of $240.0-295.0 million and total operating income to be around $75.0-150.0 million. For 2Q25, IAC expects DDM to grow digital revenues by 7.0-9.0% YoY with $67.0–73.0 million in EBITDA. is projected to see a 5.0- 8.0% YoY revenue decline and $3.0–5.0 million in EBITDA. Search is expected to generate $75.0–80.0 million in revenue and $4.0–5.0 million in EBITDA. Emerging & Other is forecasted to earn ~$15.0 million in revenue with EBITDA losses of $5.0–10.0 million. Earlier, on April 1, 2025, Angi Inc. and IAC Inc. started regular-way trading. ANGI opened at $15.03, made an intraday high of $15.83, and a low of $14.56, before closing at $14.70. IAC opened at $37.96, made an intraday high of $39.47, and a low of $37.76 before closing at $39.26. On January 13, 2025, IAC announced that its Board of Directors had approved a plan to spin off its entire stake in ANGI. On February 14, 2025, IAC filed Form S-3, disclosing the deal overview and separation agreement. Subsequently, on March 10, 2025, IAC announced the record and distribution dates for the planned spin-off. IAC's recent spin-off of ANGI sharpens its strategic focus on scalable, high-margin businesses, echoing its successful history with Match Group and Vimeo. Dotdash Meredith remains a key growth driver, leveraging premium ad rates in sectors like beauty, tech, and pharmacy. Innovations like the D/Cipher tool enhance ad targeting without cookies, boosting efficiency. Strategic partnerships with OpenAI and Apple News+ are expanding licensing and syndication revenues. This repositioning is expected to drive operational leverage and unlock shareholder value through a potential re-rating. IAC's diversified portfolio and disciplined capital allocation further strengthen its long-term investment appeal. Considering the significant upside post-recent correction, we revise our rating on IAC to BUY from HOLD, while maintaining a target price of $42.00 per share. Key Data Spin-Off Research Key highlights of the conference call (1Q25) Strategic Moves & Capital Allocation • IAC completed the spin-off of Angi Inc., marking its 10th independent company creation. • Repurchased 4.5 million shares for $200 million; new 10 million share repurchase authorization approved. • Management emphasized capital deployment flexibility, with M&A and share buybacks both active considerations. Income Statement • Revenue declined 8.6% YoY to $570.5 million, but operating income swung to a $35.8 million profit from a $63.4 million loss. • Net loss of $216.8 million was driven by a $324.3 million unrealized loss on MGM shares. Segment Performance • DDM: Digital revenue grew 7.0% YoY to $224 million; print declined 7.0% to $174 million. Adjusted EBITDA surged 166.0% to $80.0 million, aided by a $36 million non cash lease termination gain. • Revenue declined 3.9% to $88.9 million due to lower consumer subscriptions. Adjusted EBITDA fell 12.0% to $14.5 million. Product and pricing improvements are underway. • Search: Revenue dropped 35.2% to $70.3 million, driven by lower traffic acquisition at Ask Media and Desktop. Adjusted EBITDA fell 31.0%. • Emerging & Other: Revenue fell 46.2% to $18.3 million, largely due to the Mosaic Group sale. Margin & Cost Analysis • Gross margin improved due to lower cost of revenue and reduced amortization. • Corporate expenses declined due to a $35.0 million reversal of stock-based compensation tied to the former CEO's departure. • Free cash flow turned negative at -$4.6 million, impacted by a $21.6 million lease termination payment and higher capex. Product & Innovation • DDM launched the PEOPLE app and MyRecipes platform, targeting younger and food-focused audiences. • Decipher Plus, a contextual ad targeting platform, is gaining traction and expected to be a 2026 growth driver. • AI integration is expanding across Vivian Health, and DDM, enhancing matching, targeting, and customer service. Guidance & Outlook • FY25 Adjusted EBITDA guidance reaffirmed at $240–$295 million. • DDM expects to grow digital revenue 7–10% for the year; Q2 guidance is 7–9%. • and Search are expected to remain challenged in Q2 but will show signs of stabilization. Risks & Market Dynamics • Programmatic ad pricing has softened, while premium ad demand remains stable, supported by pharma, tech, and beauty sectors. • Macroeconomic uncertainty, tariff impacts, and consumer sentiment are being closely monitored. • Google's AI Overviews and search algorithm changes are being managed; DDM's reliance on Google traffic has dropped from 60% to ~33%. Revenue Trend and Adjusted EBITDA vs. Margin Trend Spin-Off Research 1Q25 Total revenue fell 8.6% YoY to $570.5 million (-29.5% vs consensus). Search segment revenue decreased 35.2% YoY to $70.3 million, mainly due to reduced visitors to ad supported search and content websites. Emerging & Other segment revenue declined 46.2% YoY to $18.3 million, largely due to the decline in revenue on account of the Mosaic Group sale. revenue declined 3.9% YoY to $88.9 million, due to a decline in consumer revenue driven by lower subscriptions, offset by growth in enterprise revenue due to an increase in back-up care utilization. Dotdash Meredith segment revenue grew 0.7% YoY to $393.1 million, driven by increased revenue from the digital segment, offset by a decline in revenue in the print segment. Adjusted EBITDA increased significantly by 825.5% YoY to $50.9 million (+276.2% vs consensus), and corresponding margins improved by 804bps to 8.9%, mainly due to Dotdash Meredith's strong performance, including a $36 million lease termination gain and improved digital and print margins. Additionally, the Emerging & Other segment reduced its losses significantly, aided by the absence of prior-year severance and transaction-related costs, further contributing to the overall EBITDA growth. Operating profit of $35.8 million (-194.2% vs consensus), against an operating loss of $63.4 million, primarily due to a $64 million improvement in Dotdash Meredith's operating income driven by higher digital and print profitability, and additionally reduced losses in Emerging & Other segments further supported the turnaround. Net loss of $216.8 million (1Q24: profit of $45.0 million), primarily due to a $324.3 million unrealized loss on its investment in MGM Resorts International, reversing a $163.8 million gain in the prior year. Diluted loss per share came in at $2.64 (1Q24: $0.51 earnings per share). 1Q25 Valuation Spin-Off Research Investment Thesis IAC (Stub Entity) Dotdash Media to benefit from efficient resource allocation Dotdash Meredith, a key subsidiary of IAC, has demonstrated strong performance in the digital advertising sector driven by higher premium advertising rates from sectors like beauty, technology, pharmaceuticals, and retail. The company has seen a 30% increase in programmatic advertising rates, contributing significantly to its revenue growth. This was further aided by innovative ad targeting technologies and strategic partnerships. Dotdash Meredith launched D/Cipher, a groundbreaking intent-targeting tool that connects advertisers to consumers at key moments of intent without relying on cookies. This tool has been instrumental in driving higher engagement and better ad performance. By shedding ANGI, which has faced revenue declines, IAC can concentrate on areas like Dotdash Media with higher margins and growth potential. Licensing and Partnerships to add high-margin revenue streams Dotdash Meredith has strategically leveraged licensing and partnerships to enhance its revenue streams, particularly focusing on high-margin opportunities. It has entered a strategic partnership with OpenAI, which involves integrating its trusted content into ChatGPT. This includes content from iconic brands like PEOPLE, Better Homes & Gardens, FOOD & WINE, Verywell, InStyle, and Investopedia. These partnerships not only enhance revenue but also contribute to higher margins, as they involve leveraging existing content and technology infrastructure. to grow even amid economic challenges The broader healthcare and caregiving market has demonstrated strong growth potential. For instance, the UK care market, which shares similarities with operational environment, reported improved occupancy levels and fee growth in 2024, with private pay fees increasing by 10%. platform, which connects families with caregivers, is well-positioned to capitalize on the growing demand for caregiving services, driven by demographic shifts and an aging population, particularly in private pay segments, which are less susceptible to economic downturns. The resilience of the sector, even amid economic challenges, highlights the platform's potential to contribute significantly to IAC's long-term growth. Valuation IAC (Stub Entity) IAC presents a compelling investment opportunity due to its diversified portfolio, strong performance in digital advertising, and strategic focus on high-margin segments. Its key subsidiary, Dotdash Meredith has benefited from higher premium advertising rates, particularly from sectors like beauty, technology, pharmaceuticals, and retail. Innovative ad targeting technologies, such as the D/Cipher tool, have enhanced ad targeting without relying on cookies, further boosting operational performance. Strategic partnerships with companies like OpenAI and syndication partners such as Apple News+ have also played a crucial role in boosting licensing and other revenue streams. Following the completed spin-off of ANGI, IAC has sharpened its strategic focus on higher-margin segments like Dotdash Meredith, enabling more efficient operations and targeted growth initiatives. This move is consistent with IAC's successful history of unlocking value through spin-offs, as demonstrated by past separations such as Match Group and Vimeo. The spin-off has begun to reposition IAC's portfolio toward more scalable and profitable businesses and is expected to contribute to a meaningful re-rating of the company's overall valuation. We compare IAC with listed companies engaged in the Internet Media and Services business such as Ziff Davis, Inc, News Corporation, Lyft, Inc, Gannett Co., Inc., and Bright Horizons Family Solutions Inc. We believe the spin-off simplified IAC's business narrative and alleviated the persistent overhang on its shares. However, considering the current volatility in the macroeconomic environment which can impact consumer spending, we ascribe a lower EV/EBITDA (x) multiple of 14.0x and EV/Sales (x) multiple of 1.5x to arrive at an average enterprise value of $3.9 billion. Further, we deduct net debt of ~$0.4 billion to arrive at an implied equity value of $3.4 billion. Our fair value for the Stub Entity stands unchanged at $42.00 per share. Considering the significant upside post-recent correction in the stock price, we revise our rating on IAC to a BUY from HOLD. IAC Valuation Spin-Off Research Company Description IAC Inc. (IAC) IAC Inc. is a diversified holding company that operates a wide range of businesses in the media, internet, and technology sectors. Founded in 1995 and headquartered in New York City, IAC (NASDAQ: IAC) has grown through numerous acquisitions and divestitures, positioning itself as a leader in the digital economy. The company operates through Dotdash Meredith, Search, and Emerging & Other segments.
Reuters
05-05-2025
- Business
- Reuters
IAC's core profit rises on strength from Dotdash Meredith
May 5 (Reuters) - IAC (IAC.O), opens new tab reported a rise in core profit in the first quarter on Monday, driven by lower expenses and steady growth in its largest business. Dotdash Meredith, IAC's biggest business, which owns and operates top brands such as Food & Wine magazine and Investopedia, reported a 7% rise in digital revenue, thanks to higher premium advertising revenue. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. "DDM's (Dotdash Meredith) sheer scale, loyal audiences, beloved brands like PEOPLE and advertising performance continue to differentiate it from the industry and underscore its growth potential," said Barry Diller, IAC's chairman and senior executive. IAC reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $50.9 million for the quarter ended March 31, up from $5.5 million a year ago. For the first quarter, the company reported a 22% decline in operating expenses, which fell to $534.7 million. Early in April, IAC completed the spin-off of its majority stake in the home services unit Angi (ANGI.O), opens new tab. IAC's total revenue came in at $570.5 million for the first quarter, compared with $624.3 million a year earlier.
Epoch Times
29-04-2025
- General
- Epoch Times
This Is the Cake of the Season!
The classic combination of strawberries and rhubarb is delicious in this easy cake, but you can substitute 3 cups of any ripe fruit you like. Yogurt adds a creaminess that pulls the whole cake together. Strawberry-Rhubarb Upside-Down Cake With Yogurt Serves 12 Active Time: 30 minutes Total Time: 1 hour, 30 minutes 1 1/2 cups sliced rhubarb (thawed and drained if frozen) 1 1/2 cups sliced strawberries 2 tablespoons lemon juice 1 cup packed light brown sugar, divided 4 tablespoons (1/2 stick) unsalted butter, softened, divided 1 cup whole-wheat pastry or white whole-wheat flour 3/4 teaspoon baking powder 1/4 teaspoon baking soda 1/4 teaspoon salt 1/3 cup canola oil 2 large eggs 1/2 cup whole-milk plain yogurt 1 teaspoon vanilla extract 1. Preheat oven to 350 degrees F. 2. Toss rhubarb, strawberries, and lemon juice in a large bowl. 3. Heat 1/4 cup brown sugar and 2 tablespoons butter in a 10-inch ovenproof skillet, preferably cast-iron, over medium heat, stirring constantly, until the butter melts and the mixture starts to bubble, about 3 minutes. Let cool for 5 minutes. Coat the sides of the skillet with cooking spray. Using a slotted spoon, arrange the strawberry-rhubarb mixture in the pan (discard the juices left behind). 4. Whisk flour, baking powder, baking soda, and salt in a medium bowl. In another medium bowl, beat the remaining 3/4 cup brown sugar, 2 tablespoons butter, and oil with an electric mixer on medium-high speed until light and fluffy, about 1 minute. Beat in eggs, one at a time. Add yogurt and vanilla and beat until smooth. Add the flour mixture and mix on low speed just until it is incorporated. Spread the batter over the fruit. Related Stories 4/28/2025 2/19/2025 5. Bake the cake until it pulls away from the sides and the top is golden brown, 30 to 40 minutes. Let cool in the pan on a wire rack for 10 minutes. Run a knife around the edges and carefully invert the cake onto a serving platter. Let cool for at least 15 minutes more before serving. Serve warm or at room temperature. Recipe nutrition per serving: 249 Calories, Total Fat: 12 g, Saturated Fat: 3 g, Cholesterol: 43 mg, Carbohydrates: 33 g, Fiber: 3 g, Total Sugars: 20 g, Protein: 4 g, Sodium: 128 mg, Vitamin A: 181 IU. Strawberries and rhubarb add sweet and tart flavors to this delicious spring dessert. Jason Donnelly/TCA EatingWell is a magazine and website devoted to healthy eating as a way of life. Online at Copyright 2025 Dotdash Meredith. All rights reserved. Used with permission. Distributed by Tribune Content Agency, LLC. Dear Readers: We would love to hear from you. What topics would you like to read about? Please send your feedback and tips to
Epoch Times
22-04-2025
- General
- Epoch Times
Sheet-Pan Fajitas Are Great for a Weeknight Meal
These flank steak fajitas make for a tasty, healthy dinner in a pinch. Preheated sheet pans sizzle the meat and vegetables just like in a skillet, but with a whole lot more hands-off time. Sheet-Pan Steak Fajitas Serves 4 Active Time: 30 minutes Total Time: 45 minutes 2 tablespoons extra-virgin olive oil 1 teaspoon chili powder 1 teaspoon garlic powder 1/2 teaspoon ground cumin 1/4 teaspoon salt 1 pound flank steak, trimmed 4 cups sliced onions 2 cups sliced bell peppers 2 cups sliced poblano peppers 8 (6-inch) corn tortillas, warmed 1/2 cup guacamole Lime wedges for serving Cilantro for garnish 1. Position racks in upper and lower thirds of oven and place a large rimmed baking sheet on each; preheat to 500 degrees F. 2. Combine oil, chili powder, garlic powder, cumin, and salt in a large bowl. Rub steak with half of the spice mixture. Add onions, bell peppers, and poblanos to the bowl and toss to coat. Carefully place the steak on the pan on the top rack. Carefully spread the vegetables on the pan on the lower rack. Roast until the steak and vegetables are starting to brown, about 8 minutes. 3. Flip the steak and stir the vegetables. Turn the broiler to high and continue cooking the steak to desired doneness (an instant-read thermometer inserted in the thickest part will register 120 degrees F for medium rare) and the vegetables until charred, about 6 minutes more. Transfer the steak to a cutting board and let rest for 5 minutes. 4. Slice the steak across the grain and serve in tortillas with the vegetables and guacamole. Serve with lime wedges and cilantro, if desired. Related Stories 6/3/2024 9/30/2023 Recipe nutrition per serving: 492 Calories, Total Fat: 23 g, Saturated Fat: 6 g, Cholesterol: 92 mg, Carbohydrates: 35 g, Fiber: 8 g, Total Sugars: 9 g, Protein: 36 g, Sodium: 294 mg, Potassium: 954 mg, Phosphorus: 419 mg, Iron: 4 mg, Folate: 110 mcg, Calcium: 90 mg, Vitamin A: 3311 IU, Vitamin C: 137 mg. EatingWell is a magazine and website devoted to healthy eating as a way of life. Online at Copyright 2025 Dotdash Meredith. All rights reserved. Used with permission. Distributed by Tribune Content Agency, LLC. Dear Readers: We would love to hear from you. What topics would you like to read about? Please send your feedback and tips to
Axios
10-04-2025
- Business
- Axios
People debuts new TikTok-like app
People launched a new app Thursday meant to cater to the next generation of fans who prefer video-first mobile experiences over text-heavy articles. Why it matters: People has long been one of the most widely distributed magazines in the country. Under its new owner, Dotdash Meredith, it's moved to become a much more digitally focused brand. Since 2022, the year after Dotdash acquired People's former parent Meredith, People's social following has grown by more than 15 million across all social platforms. The big picture: While Dotdash Meredith has invested heavily in People's digital transformation to-date, the app marks its biggest effort to transform the company since its acquisition. There are more than 65 people working on the app full-time, Dotdash Meredith CEO Neil Vogel said as a testament to the company's investment. Zoom in: The new app features scrollable and swipeable original content that's bingeable for a younger audience, said Vogel. The content, which is built purposefully for the app, features exclusives that People readers can't get anywhere else, said Leah Wyar Romito, president of the entertainment and beauty & style group at Dotdash Meredith. For example, the app will be home to PEOPLE's first-ever docuseries coming this April called "The Fourth Wall." The reality show features behind-the-scenes updates on how the biggest stories at PEOPLE come to life. It will also give users exclusive content around People's tentpole franchises, like its annual "Sexiest Man Alive" cover. The app is being positioned as an antidote to doomscrolling, Wyar Romito said, while noting that Gen Z in particular is looking for a more uplifting mobile video experience. Zoom out: For now, Dotdash Meredith is focused on building great content and a loyal audience for the app. In the future, the app presents big advertising and commerce opportunities, Vogel said. e.l.f. Beauty, one of the most popular Gen Z beauty brands, has already signed on as a strategic launch app partner.
