IAC (IAC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 15% year-over-year to $949.5 million, with Adjusted EBITDA up 24% to $87.3 million and operating loss narrowing to $12 million, reflecting improved profitability at Dotdash Meredith and Angi Inc. despite revenue declines.

• Net loss attributable to shareholders widened to $142.2 million, impacted by a $179.3 million unrealized loss on the MGM Resorts International investment.

• Dotdash Meredith saw strong traffic and monetization growth, with Digital revenue up 12% and programmatic ad rates up 36% year-over-year, outperforming the digital ad market.

• Angi Inc. improved profitability through operational efficiency and cost controls, with Adjusted EBITDA more than doubling to $42.2 million despite a 10% revenue decline.

• The company is prioritizing disciplined M&A and capital allocation, with ongoing efforts to enhance value and consider share repurchases.

Financial highlights

• Q2 2024 revenue was $949.5 million, down 15% year-over-year, with Dotdash Meredith revenue up 3% to $425.2 million and Angi Inc. revenue down 10% to $315.1 million.

• Adjusted EBITDA rose 24% to $87.3 million, with Dotdash Meredith up 23% to $66.4 million and Angi Inc. up 115% to $42.2 million.

• Operating loss improved to $12 million from $55.5 million in Q2 2023.

• Net loss attributable to shareholders was $142.2 million, or $(1.71) per share.

• Free Cash Flow for the first half of 2024 increased to $117.3 million.

Outlook and guidance

• DDM expects at least 15% digital revenue growth and 25%+ EBITDA growth in Q3, with continued momentum in traffic, monetization, and licensing.

• Angi anticipates Q3 revenue declines of about 15% year-over-year, but guides to over $30 million in Adjusted EBITDA, reflecting ongoing investments in customer experience.

• 2024 capital expenditures are expected to be 40–50% lower than 2023, mainly due to the prior year’s real estate acquisition.

• Management expects existing cash, equivalents, and positive cash flows to be sufficient for normal operations and commitments over the next twelve months.

• Performance marketing at DDM is expected to return to growth in the second half of the year.