IAC Inc. Q4 FY2024 earnings call

Turnaround Efforts: Angi replaced leadership, reduced low-quality revenue and CapEx, and focused on product improvement. DDM went through integration and traffic reversal, with digital revenue showing positive growth after prior declines. MGM is a strong asset with high occupancy and growth plans. Angi Spin: Registration statement filed on Jan 27, aiming to close on March 31. Focus on finalizing separation agreements and SEC filings. DDM Initiatives: Investing in direct consumer relationships, expanding content to platforms, launching D/Cipher+ for third-party inventory targeting, and managing cost structure with headcount reductions. MGM Operations: High occupancy, building a resort in Japan, undervalued, with a strong balance sheet.

Angi: Previously faced challenges with EBITDA dropping from ~$260M to $35M and high CapEx. Since then, reduced low-quality and low-margin revenue, cut CapEx, and focused on product improvement. Dotdash Meredith (DDM): Traffic reversed declines, up ~8%. Digital revenue had a turnaround with recent positive growth after prior declines. Print segment saw 10% revenue decline. EBITDA guidance for 2025 is $330M to $350M. MGM: High occupancy, building a $10B+ resort in Japan, undervalued, with a strong balance sheet.

Angi: Q1 guide below prior expectations, but confident in revenue improvement through 2025 and return to growth in 2026. Q1 down low-20s% YOY, but expect growth in 2026. DDM: 10%+ digital revenue growth in 2025, mid-single-digit traffic and monetization growth, 40%+ digital incremental EBITDA margins, total EBITDA guide $330M-$350M. MGM: Strong balance sheet, building a resort in Japan, undervalued.

Regulatory Uncertainty: Impact on Angi's operations, such as the FCC order and court vacating SEC rule change affecting Q1 performance. Integration Risks: Potential disruption during Angi's single pro product integration, though experienced in Europe. Corporate Costs: Non-recurring costs in 2025 due to Joey's separation, Angi spin costs, legacy litigation, and one-time corporate cost streamlining.

Q: Cory Carpenter on Angi spin, Jeff's confidence in 2025, and IAC's cash from spin A: Joey Levin talked about Angi's asymmetrical upside and moving to focus on building. Jeff Kip discussed Q1 guide below expectations due to regulatory changes but confidence in 2025 and 2026 growth. Chris Halpin mentioned spin registration filed, aim to close March 31, no immediate cash take from Angi.

Q: John Blackledge on DDM 4Q drivers, 2025 guide, and capital allocation A: Christopher Halpin discussed DDM 4Q revenue drivers like traffic recovery, advertising, performance marketing, and licensing. 2025 guide includes 10%+ digital revenue growth, mid-single-digit traffic and monetization growth. Barry Diller mentioned strong balance sheet and future capital allocation focus on investing in businesses and seeking opportunities.

Q: Eric Sheridan on Angi's transformation and IAC's operating businesses A: Jeff Kip talked about Angi's product improvement, proprietary traffic growth, pro retention, and single pro product integration. Barry Diller discussed operating businesses should be spun off when scaled for independence.

Q: Jason Helfstein on IAC post-Angi spin and DDM's top funnel A: Barry Diller said post-spin will balance capital return and opportunities. Christopher Halpin discussed DDM's top funnel efforts like direct consumer relationships, content expansion, and D/Cipher+ launch.

Q: James Heaney on Care.com and corporate costs A: Christopher Halpin broke down Care.com into consumer and enterprise segments, discussed enterprise growth tailwind and consumer product improvement. Corporate costs in 2025 due to Joey's separation, Angi spin, legacy litigation, and one-time streamlining.

Q: Ross Sandler on Barry's involvement and D/Cipher+ impact A: Barry Diller confident in management, will stimulate process. Christopher Halpin discussed D/Cipher+ ramping, supporting 40%+ digital incremental EBITDA margins.

Q: Justin Patterson on DDM's direct traffic and financial impact A: Christopher Halpin talked about DDM's direct traffic efforts via new products, content expansion, and no dilutive financial impact.

Q: Youssef Squali on D/Cipher's impact and MGM post-Angi spin A: Christopher Halpin discussed D/Cipher's performance in case studies, positive trends. Barry Diller said MGM is strong, undervalued, will continue opportunistically.

Q: Nick Jones on AI in Angi and Care.com A: Christopher Halpin and Joey Levin discussed AI's role in improving matching, conversational UI, and agentic AI for Angi, and AI applications across portfolio.

Q: Tom Champion on DDM verticals and Search future A: Christopher Halpin talked about DDM verticals and positive ad market momentum. Joey Levin discussed Search evolution towards AI platforms and importance of best content in categories.