Q4 2024 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$33.61Last close (Feb 11, 2025)
Post-Earnings Price$34.93Open (Feb 12, 2025)
Price Change
$1.32(+3.93%)
- Dotdash Meredith (DDM) is seeing strong digital revenue growth, with expectations of 10%+ digital revenue growth in 2025 driven by multiple factors such as robust performance marketing growth (up 22% in Q4 2024) and the successful integration of licensing partnerships. Additionally, the launch of D/Cipher Plus is anticipated to provide a new revenue stream and enhance advertising offerings, potentially leading to 40%+ digital incremental EBITDA margins.
- IAC has significantly improved its financial position, transitioning from burning cash in 2022 to generating $352 million of cash flow in 2024. With a strong balance sheet and increasing free cash flow, the company is poised to invest in growth opportunities and contemplate capital returns to shareholders, signaling a positive outlook for future value creation.
- Positive momentum at Angi, with management confident about returning to growth in 2026. Initiatives include moving to a single product and platform, enhancing customer experience, and expecting increased homeowner repeat and pro retention. The company anticipates that these efforts will lead to growth in revenue per monetized transaction by the second half of the year, setting the stage for a solid growth trajectory.
- Delayed Return to Growth in Key Segments: IAC expects certain segments, such as Angi's Pro network, to only return to growth in 2026, indicating potential near-term challenges in achieving growth targets. While retention has improved, acquisition is coming down, and the forces will only cross going forward.
- Elevated Corporate Costs Impacting Profitability: IAC is incurring approximately $50 million of nonrecurring corporate costs in 2025, including expenses associated with management changes, such as Joey Levin's move to Angi and associated consulting agreement, costs related to the Angi spin-off, and ongoing litigation from the Match Group separation. These elevated costs may negatively impact profitability in the near term.
- Execution Risks Due to Management Transition: With Joey Levin moving to Angi as Executive Chairman and Barry Diller expressing reliance on a "fresh and eager" team, there may be execution risks for IAC. The management transition could pose challenges in strategic direction and operational effectiveness.