Corey Carpenter

Corey Carpenter asked for an update on the $15 million Google litigation spend, including the current status and range of outcomes. He also asked Barry Diller for an update on the simplification of IAC, a topic discussed in the previous quarter.

Answer

Neil Vogel, CEO of People Inc, explained the Google litigation builds on the government's antitrust case, with courts ruling against Google's monopoly. He stated they seek to recover hundreds of millions in damages, viewing it as an investment. Barry Diller, Chairman and Senior Executive of IAC, confirmed that IAC's simplification efforts have been ongoing for years, involving cleaning up businesses and reducing overhead due to fewer key businesses.

Corey Carpenter requested an update on the Google AdTech litigation, including the $15 million spend and potential outcomes, and asked Barry Diller for an update on IAC's ongoing simplification efforts.

Answer

Neil Vogel, CEO of People Inc., explained that the lawsuit builds on the government's antitrust case against Google, with the court ruling that publishers don't need to re-prove Google's monopolization. He noted the $15 million cost is an investment, with potential damages in the hundreds of millions. Barry Diller, Chairman and Senior Executive of IAC, stated that simplification has been ongoing for the last couple of years, involving cleaning up, closing, and transferring businesses, and will continue throughout the year, leading to reduced overhead as IAC focuses on fewer key businesses.

Corey Carpenter asked for an update on the media environment, specifically regarding higher acquisition costs and their recent decline, with a focus on the search channel. Carpenter also inquired about Oddity's capital allocation priorities, given its healthy cash balance and the absence of share repurchases since the convertible offering.

Answer

Lindsay Drucker Mann, CFO, ODDITY, explained that while media costs generally increase, they are effectively offset by higher repeat rates and other KPI improvements, with repeat sales accounting for about two-thirds of the business. She noted an improved media environment in Q4. Regarding capital allocation, Mann highlighted the strong cash position and the convertible as efficient, patient capital, offering flexibility for buybacks and M&A, with a selective approach.

Corey Carpenter asked about the expected duration of the impact of traffic investments on VMM margins and whether these channels are ultimately expected to run at parity with existing channels. He also inquired if the 20% growth target is achievable next year given tougher comps.

Answer

Jayme Mendal (CEO, EverQuote) stated that VMM impact from new channel investments typically lasts one to two quarters for ramp-up and optimization, after which they should blend in at comparable VMM levels. Joseph Sanborn (CFO, EverQuote) acknowledged tougher comps but expressed confidence in averaging 20% growth over time and achieving the billion-dollar revenue goal organically in two to three years.