In This Article:
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Digital Revenue Growth (DDM): Increased by 7% in Q1.
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EBITDA Growth (DDM): Increased by 46%, excluding a one-time lease gain.
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Lease Termination Gain: $36 million book gain from terminating a long-term lease for $43 million in cash payments.
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Share Repurchase: Repurchased 4.5 million shares and increased authorization by 10 million shares.
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Cash at IAC: $900 million.
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Net Operating Losses (NOLs): $800 million available to offset taxable gains.
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Daily Beast Revenue Growth: Increased by 72% while achieving profitability.
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Settlement Contribution: $200,000 beyond insurance coverage for match separation litigation.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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IAC Inc (NASDAQ:IAC) completed the full spin-off of Angi, marking the creation of its 10th independent company.
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Dotdash Meredith (DDM) grew digital revenue by 7% and increased EBITDA by 46%, excluding a one-time lease gain.
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The company repurchased 4.5 million shares and increased its share repurchase authorization by 10 million shares.
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The Daily Beast achieved a 72% revenue growth while reaching profitability.
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IAC Inc (NASDAQ:IAC) reaffirmed its full-year 2025 adjusted EBITDA guidance across all its businesses.
Negative Points
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Despite progress, IAC Inc (NASDAQ:IAC) shares are trading below the value of its 23% stake in MGM and $900 million in cash.
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Programmatic pricing has softened, running flat year-over-year after being up for much of the previous year.
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The macroeconomic outlook remains uncertain, with potential impacts on consumer spending and advertiser demand.
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Care.com has faced challenges with product deficiencies and inefficiencies in marketing spend.
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The programmatic market has seen a decline in pricing due to factors like the exit of major advertisers.
Q & A Highlights
Q: Can you talk about the key priorities that could drive 2026 TDM revenue growth and how should we think about capital allocation going forward? A: Neil Vogel, CEO of Dotdash Meredith, highlighted several projects aimed at driving 2026 revenue growth, including the launch of the People app, a project around recipes called My Recipes, and Decipher Plus for ad targeting. Christopher Halpin, CFO and COO, mentioned that capital allocation will focus on M&A opportunities, with continued evaluation of share buybacks. The company aims to balance between share repurchases and strategic investments.
Q: Can you discuss the 1Q trends and 2Q revenue guidance for DDM Digital? A: Christopher Halpin explained that Q1 saw a 7% digital revenue growth, with licensing leading at 30% growth. For Q2, they expect 7% to 9% digital revenue growth, driven by stable traffic and strong categories offsetting tariff uncertainties. Premium demand remains stable, and they are closely monitoring macroeconomic impacts on advertiser brand spend.