Latest news with #DotdashMeredith

IAC (NASDAQ:IAC) Misses Q2 Revenue Estimates

Yahoo

6 days ago

Business
Yahoo

IAC (NASDAQ:IAC) Misses Q2 Revenue Estimates

Digital media conglomerate IAC (NASDAQGS:IAC) missed Wall Street's revenue expectations in Q2 CY2025, with sales falling 7.5% year on year to $586.9 million. Its GAAP profit of $2.57 per share was significantly above analysts' consensus estimates. Is now the time to buy IAC? Find out in our full research report. IAC (IAC) Q2 CY2025 Highlights: Revenue: $586.9 million vs analyst estimates of $601.5 million (7.5% year-on-year decline, 2.4% miss) EPS (GAAP): $2.57 vs analyst estimates of -$0.31 (significant beat) Adjusted EBITDA: $74.22 million vs analyst estimates of $43.89 million (12.6% margin, 69.1% beat) Full-year EBITDA outlook lowered due to incremental costs in the People Inc. (formerly Dotdash Meredith) segment Operating Margin: 0.1%, up from -3.4% in the same quarter last year Free Cash Flow was -$7.21 million, down from $79.96 million in the same quarter last year Market Capitalization: $3.1 billion Company Overview Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ:IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and focusing on digital publishing, home services, and caregiving platforms. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $2.52 billion in revenue over the past 12 months, IAC is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, IAC's 1.5% annualized revenue growth over the last five years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. IAC's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 20.4% annually. This quarter, IAC missed Wall Street's estimates and reported a rather uninspiring 7.5% year-on-year revenue decline, generating $586.9 million of revenue. Looking ahead, sell-side analysts expect revenue to decline by 1.3% over the next 12 months. While this projection is better than its two-year trend, it's hard to get excited about a company that is struggling with demand. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Although IAC broke even this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 6.3% over the last five years. Unprofitable business services companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, IAC's operating margin rose by 10.4 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability. This quarter, IAC's breakeven margin was up 3.5 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. IAC's earnings losses deepened over the last five years as its EPS dropped 2.7% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, IAC's low margin of safety could leave its stock price susceptible to large downswings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. Sadly for IAC, its EPS declined by more than its revenue over the last two years, dropping 99.2%. This tells us the company struggled to adjust to shrinking demand. In Q2, IAC reported EPS at $2.57, up from negative $1.71 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast IAC's full-year EPS of negative $5.39 will reach break even. Key Takeaways from IAC's Q2 Results We were impressed by how significantly IAC beat analysts' EPS expectations this quarter. On the other hand, its revenue missed and the company's full-year EBITDA guidance was lowered due to incremental costs in the People Inc. (formerly Dotdash Meredith) segment. Overall, this print was mixed. Investors were likely hoping for more, and shares traded down 3.9% to $37.95 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Yahoo

6 days ago

Business
Yahoo

IAC's quarterly core profit rises after boost in digital media

(Reuters) -IAC posted a 15% rise in second-quarter core profit on Monday, helped by the steady growth of its biggest business and a reduction in operating expenses. The media and internet company, which owns brands such as Food & Wine and Investopedia, posted adjusted earnings before interest, taxes, depreciation and amortization of $51.4 million for the quarter, up from $44.8 million a year ago. Dotdash Meredith, IAC's biggest business — which was recently rebranded as People — reported a 9% growth in digital revenue for the quarter, driven by higher premium advertising in the health and pharmaceuticals, technology and travel categories. Quarterly operating expenses fell 10.6% to $586.4 million. IAC's revenue for the quarter ended June 30 came in at $586.9 million, below analysts' average estimate of $601.3 million, according to data compiled by LSEG. IAC revised its adjusted EBITDA expectations to between $247 million and $285 million for fiscal 2025, compared to its earlier forecast of $240 million to $295 million. Early in the reported quarter, IAC completed the spin-off of its majority stake in the home services unit Angi. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Dotdash Meredith rebrands as People Inc.

Axios

31-07-2025

Business
Axios

Dotdash Meredith rebrands as People Inc.

Dotdash Meredith, one of the largest publishers in America, is rebranding to People, its CEO Neil Vogel told Axios. Why it matters: People is Dotdash Meredith's most popular and recognizable title. The rebrand capitalizes on that brand equity in a way that its current name does not. "Everybody knows People," Vogel said. "When you were explaining what Dotdash Meredith was, the first thing you said was, 'Oh, we're People.'" Zoom in: The rebrand is also meant to capture the human nature of publishing, Vogel explained. "The world has moved a lot" since Dotdash acquired Meredith, he said. "So much stuff is artificial and synthesized and made with AI." "People applies to all of our brands. All the content we make, all of the events we have, and all of our experiences are driven by people," he said. Catch up quick: Dotdash Meredith's parent company IAC acquired Meredith and its roughly two dozen brands in 2021 as part of a $2.7 billion deal. At the time, it made sense to combine the brand name of Dotdash — which was already owned by IAC —with Meredith's, as a way to signify the two brands coming together under one roof. Vogel said IAC chairman Barry Diller deserves a lot of credit for pushing the company to rebrand. Dotdash Meredith is currently by far the largest company within Diller's IAC portfolio. Between the lines: Dotdash has pushed to digitize and modernize Meredith's magazine portfolio by prioritizing Meredith's strongest brands, including People, as well as Better Homes & Gardens, Food & Wine and Southern Living. Earlier this year, the company unveiled new TikTok-like People app meant to cater to younger audiences. The big picture: The rebrand is also a nod to the complex and storied history of Time Inc., the original owner of People.

Wall Street Journal

31-07-2025

Business
Wall Street Journal

A Media Giant Leans on People, a 50-Year-Old Brand, to Confront the AI Age

Dotdash Meredith is entering a new era with an old name. The company behind titles including Food & Wine and Travel + Leisure is rebranding as People Inc., a nod to its marquee publication.

Travel + Leisure

22-07-2025

Travel + Leisure

Sara Sardinha

'I take pride in showcasing Portuguese culture, traditions, gastronomy, and history, leaving people wishing to return.' VIP Access: A private bespoke journey for a family aboard The Presidential, an iconic century-old train, to the Douro Valley. Average Daily Spend : $500 : $500 Trip Planning Fees : none : none Languages Spoken: Portuguese, English, Spanish, and Italian A travel advisor can turn your trip into a seamless, tailored experience. With insider knowledge and trusted contacts, they craft itineraries that match your interests and handle all logistics, saving you time and stress. From exclusive perks to real-time problem-solving, they ensure your journey is smooth and memorable, leaving you free to enjoy the adventure. For more information, check out our Frequently Asked Questions page. Travel + Leisure, a Dotdash Meredith Brand, is a top travel media brand with a mission to inform and inspire passionate travelers. Our expert team includes a network of hundreds of writers and photographers across the globe, all providing a local eye on the best places to stay, eat, and explore. We reach an audience that takes 76 million round trips annually, offering valuable travel tips, ideas and inspiration, and products you need to get you to your destination—whether it's a small town or big city, beach or lake, national park or theme park, road trip, cruise, or long-haul flight, and everything in between. Learn more about us and our editorial process.