IAC (IAC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 16% year-over-year to $938.7 million, with net loss narrowing to $243.7 million and Adjusted EBITDA up 7% to $107.4 million; operating income improved by $49 million to $16.3 million.

• A potential spin-off of Angi is under consideration, aiming to create two focused companies and allow Angi to pursue its own strategy with improved profitability and cash flow.

• Dotdash Meredith Digital posted 16% revenue growth, while Print revenue fell 6%; overall DDM revenue grew 5% and Adjusted EBITDA rose 1%.

• Care.com is now reported as a separate segment, showing scale and leadership in its category, with significant potential for product and conversion improvements.

• Net loss attributable to shareholders narrowed 38% year-over-year, with diluted loss per share at $2.93.

Financial highlights

• Q3 2024 revenue was $938.7 million, down 16% year-over-year, driven by declines in Search (down 47%), Angi (down 16%), and Emerging & Other (down 36%).

• Adjusted EBITDA for Q3 2024 was $107.4 million, up 7% year-over-year, with a margin of 11.4%.

• DDM digital advertising revenues grew 26% in Q3, with overall digital revenue up 16%.

• Q3 2024 included a $346.3 million unrealized pre-tax loss on the MGM Resorts International investment.

• Cash, cash equivalents, and marketable securities totaled $1.7 billion at September 30, 2024.

Outlook and guidance

• DDM guides Q4 digital revenue to mid to high single digits due to softer October, but expects a return to 10% digital revenue growth baseline in 2025.

• Angi expects a revenue dip in Q1 2025 due to regulatory changes, but anticipates sequential improvement and growth in 2026, with profitability held steady in 2025.

• 2024 capital expenditures are expected to be 45–50% lower than 2023, mainly due to the prior year’s real estate acquisition.

• The company expects existing cash and positive cash flows to fund normal operating requirements for the next twelve months.

• Care.com will be reported as a separate segment starting Q4 2024.