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IAC Inc. (IAC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $989.3M (-6% y/y), operating income was $50.6M (vs. loss in Q4’23), Adjusted EBITDA was $142.0M (-9% y/y); net loss was $(199.0)M due to a $(287.4)M unrealized loss on MGM, driving diluted EPS to $(2.39) .
  • Dotdash Meredith delivered its fourth consecutive quarter of double-digit Digital revenue growth (+10% to $310.6M) and +10% Print; segment operating income was $87.3M and Adjusted EBITDA $130.1M, with severance costs of $13M affecting both OI and EBITDA .
  • Angi EBITDA fell 23% y/y to $31.8M and revenue declined 11% y/y to $267.9M; Care.com grew revenue +3% to $93.7M but incurred legal accruals impacting profitability; Search revenue fell 33% to $89.2M .
  • Strategic catalyst: Board approved plan to spin off Angi; IAC expects the spin to close no sooner than March 31, 2025, with Angi spun with $416M cash and $500M bonds; management says “we’re back on offense” into 2025, and guided FY25 total Adjusted EBITDA to $345–$425M .

What Went Well and What Went Wrong

What Went Well

  • Dotdash Meredith sustained double-digit Digital revenue growth (+10%), led by +22% performance marketing (39% affiliate commerce growth), +3% advertising, and +19% licensing (OpenAI and Apple News partners), while Print also grew +10% on political ad spend and shipment timing .
  • Margin and cost execution: Dotdash Meredith operating income improved by $105.4M y/y, aided by lower intangible amortization and severance-reallocation; digital incremental EBITDA up 6% despite severance, signaling operating leverage .
  • Management tone: “We finished the year 2024 very strong… we’re back on offense… Dotdash is outgrowing the market” (Joey Levin), indicating confidence in product resets and growth initiatives at Dotdash Meredith and Angi .

What Went Wrong

  • Search revenue declined 33% y/y to $89.2M, driven by lower Ask Media Group traffic acquisition and legacy Desktop declines; segment EBITDA fell to $6.0M .
  • Angi’s Ads & Leads and Services both fell y/y; transacting professionals down 14% and service requests down 16%, indicating near-term demand and network headwinds ahead of product changes and regulatory dynamics .
  • Corporate costs elevated (transaction/spin/legal): Corporate operating loss widened to $(42.3)M, with spin-related and professional fees contributing; MGM unrealized losses drove consolidated net loss and negative EPS volatility .

Financial Results

MetricQ2 2024Q3 2024Q4 2024Consensus Estimate (Q4 2024)
Revenue ($M)$949.5 $938.7 $989.3 N/A — SPGI consensus unavailable
Operating Income / EBIT ($M)$(12.0) $16.3 $50.6 N/A — SPGI consensus unavailable
Net (Loss)/Earnings ($M)$(142.2) $(243.7) $(199.0) N/A — SPGI consensus unavailable
Diluted EPS ($)$(1.71) $(2.93) $(2.39) N/A — SPGI consensus unavailable
Adjusted EBITDA ($M)$87.3 $107.4 $142.0 N/A — SPGI consensus unavailable
EBIT Margin (%)(1.3%) 1.7% 5.1% N/A — SPGI consensus unavailable

Note: SPGI consensus was unavailable due to data access limits; comparisons vs estimates cannot be provided at this time.

Segment revenue and EBITDA

Segment ($M)Q4 2023 RevenueQ4 2024 Revenuey/yQ4 2023 Adj. EBITDAQ4 2024 Adj. EBITDAy/y
Dotdash Meredith$475.9 $522.1 +10% $123.5 $130.1 +5%
Angi Inc.$300.4 $267.9 -11% $41.4 $31.8 -23%
Care.com$91.3 $93.7 +3% $8.6 $7.9 -8%
Search$133.5 $89.2 -33% $7.5 $6.0 -19%
Emerging & Other$59.1 $16.6 -72% $(0.4) $(6.7) N/M
Corporate———$(23.8) $(27.1) +14%
Total IAC$1,058.0 $989.3 -6% $156.8 $142.0 -9%

KPIs and operating metrics

KPIQ4 2023Q4 2024y/y
Dotdash Digital Advertising Revenue ($M)$185.5 $191.8 +3%
Dotdash Performance Marketing Revenue ($M)$71.1 $86.5 +22%
Dotdash Licensing & Other Revenue ($M)$27.0 $32.3 +19%
Dotdash Total Sessions (MM)2,789 2,666 -4%
Dotdash Core Sessions (MM)2,255 2,327 +3%
Angi Ads & Leads Revenue ($M)$246.9 $214.5 -13%
Angi Services Revenue ($M)$26.1 $24.8 -5%
Angi Service Requests (000s)4,324 3,629 -16%
Angi Monetized Transactions (000s)5,500 5,255 -4%
Angi Monetized Tx per SR1.27 1.45 +14%
Angi Transacting Professionals (000s)196 168 -14%
Care.com Consumer Revenue ($M)$50.0 $45.0 -10%
Care.com Enterprise Revenue ($M)$41.3 $48.6 +18%
Search Ask Media Group Revenue ($M)$113.9 $74.0 -35%
Search Desktop Revenue ($M)$19.6 $15.2 -23%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dotdash Meredith Adjusted EBITDA ($M)FY 2025N/A$330–$350 (excludes ~$36M non-cash Q1 lease gain) New
Angi Adjusted EBITDA ($M)FY 2025N/A$135–$150 New
Care.com Adjusted EBITDA ($M)FY 2025N/A$45–$55 New
Search Adjusted EBITDA ($M)FY 2025N/A$10–$15 New
Emerging & Other Adjusted EBITDA ($M)FY 2025N/A$(25)–$(15) New
Corporate Adjusted EBITDA ($M)FY 2025N/A$(150)–$(130); includes non-recurring fees (Match litigation, restructuring, Angi spin costs) New
Stock-based Compensation ($M)FY 2025N/A$(45)–$(35), net reduction from Joey Levin transition New
Depreciation ($M)FY 2025N/A$(120)–$(110) New
Amortization of Intangibles ($M)FY 2025N/A$(100)–$(90) New
Total Operating Income ($M)FY 2025N/A$80–$190 New
Dotdash Digital revenue growthQ1 2025N/AHigh-single digits; Adj. EBITDA $40–$45M (ex-lease gain) New
Angi revenue growthQ1 2025N/ADown low-20% y/y; Adj. EBITDA >$20M New
Care.comQ1 2025N/AMid-single digit revenue declines; Adj. EBITDA ~$10M New
SearchQ1 2025N/ARevenue $70–$80M; Adj. EBITDA $2–$3M New
Emerging & OtherQ1 2025N/ARevenue ~ $15M; Adj. EBITDA $(5)–$(10)M New

Earnings Call Themes & Trends

TopicQ2 2024 (prior)Q3 2024 (prior)Q4 2024 (current)Trend
AI/Technology initiativesLicensing with Apple News+, added OpenAI in May; DDM programmatic & performance marketing scaling Continued licensing growth; DDM digital +16%; core sessions +14% DDM Licensing +19% (OpenAI), launch of D/Cipher Plus and direct-to-consumer product roadmap Strengthening
Macro advertising backdropPrint decline moderating; ad spend recovering Post-election advertiser return; ad market “fine,” cautious on volatility Premium/programmatic rates higher; category mix supportive (Tech, Pharma); ad market “fine” Stabilizing
Angi product/regulatoryFocus on profitability; network metrics under pressure Considering Angi spin; SRs down, monetization per SR up Implemented homeowner choice consistent with FCC order; short-term disruption but building to 2026 growth Transition year; positioning improves
Care.comFlat revenue; legal accruals impacted EBITDA Care.com -6% y/y; enterprise tailwind emerging Segment breakout; enterprise +18%, consumer -10%; product improvements underway Mixed to improving
SearchAsk Media Group down (TAC reduced); Desktop winding down Revenue -47% y/y; restructuring charges Revenue -33% y/y; EBITDA $6M; TAC and compensation lower partially offset Structural headwinds persist
Capital allocation & structureFreeze on buybacks during turnaround Considering Angi spin; strong cash, deleveraging Freeze ended; multi-year capital deployment, MGM viewed as “forever asset” More offensive stance

Management Commentary

  • “We finished the year 2024 very strong… there’s real momentum… Dotdash is outgrowing the market… we’re back on offense” — Joey Levin .
  • “For six quarters we went down… beginning Q4’23 +9, Q1’24 +13, then 12, then 16… just about 10%… an incredible reversal [at Dotdash Meredith]… the bedrock right now of IAC, DDM and MGM… the stopping [on capital return] has ended” — Barry Diller .
  • “We filed the registration statement on January 27… focused on closing March 31… spin Angie with $416M cash and $500M bonds” — Christopher Halpin .

Q&A Highlights

  • Angi spin process and balance sheet: Registration filed; target close “3/31”; no dividend to IAC; Angi to spin with $416M cash and $500M bonds .
  • Dotdash Meredith drivers: Post-election ad spend re-accelerated; performance marketing +22%; licensing strength; 40%+ digital incremental EBITDA margins targeted for FY25 .
  • D/Cipher Plus opportunity: Expands premium-like and undervalued third-party inventory at attractive margins; supports 40%+ incremental digital EBITDA .
  • Corporate costs: ~$50M of nonrecurring items in FY25 (Match litigation, restructuring, spin costs); run-rate normalizes beyond 2025 .
  • Care.com: Enterprise tailwinds as caregiver benefits become standard; consumer rebuilding product and marketing; slow return to growth expected .
  • MGM: Considered a “forever asset”; buybacks expected to continue; IAC may increase ownership over time .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 revenue/EPS/EBITDA was unavailable due to data access limits in this session; as a result, beat/miss vs consensus cannot be assessed here.
  • Given DDM’s double-digit digital growth and segment margin leverage alongside Search and Angi headwinds, estimate revisions may bifurcate: upward pressure for DDM and cautious near-term for Angi and Search until product changes and traffic acquisition strategies fully cycle .

Key Takeaways for Investors

  • Dotdash Meredith is the primary engine: sustained double-digit Digital growth with performance marketing and licensing momentum, and targeted 40%+ incremental digital EBITDA margins in FY25 .
  • Angi faces a transition year: Q1’25 revenue down low-20% y/y, but homeowner choice and single-product migration set up improved experience/monetization and a path back to growth in 2026 .
  • Search remains structurally challenged; expect continued prudence on TAC and marketing while legacy Desktop winds down .
  • Corporate FY25 losses include sizable nonrecurring items; normalization in 2026+ should expand consolidated operating income range, with FY25 OI guided to $80–$190M .
  • Cash/liquidity strong: $1.8B cash, $2.0B long-term debt; Dotdash Meredith leverage <4.0x under credit agreement, providing flexibility for capital allocation (and a resumed “offense” posture) .
  • MGM exposure adds EPS volatility; investors should focus on operating metrics (revenue, OI, EBITDA) rather than GAAP EPS when MGM mark-to-market swings are large .
  • Near-term catalyst: Angi spin (targeted 3/31/2025) and D/Cipher Plus scaling across third-party inventory could support multiple expansion for the core Dotdash Meredith asset while clarifying IAC’s structure .