IAC/Interactivecorp
NASDAQ:IAC
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IAC/Interactivecorp
IAC/Interactivecorp is a multifaceted American holding company that has evolved its business model to thrive in the dynamic digital landscape. Established as a technology conglomerate, IAC operates by acquiring and nurturing a diverse portfolio of businesses primarily centered around digital content, e-commerce, and services. Its ecosystem includes popular brands such as Vimeo, Angi (formerly Angie’s List), and Care.com. IAC's approach to business is akin to being a venture capitalist within the digital realm, constantly seeking out new opportunities for growth either by incubating new companies internally or acquiring promising ventures. The company excels at identifying undervalued digital assets, leveraging its expertise to grow these businesses, and eventually spinning them off to maximize shareholder value. This aggressive strategy has been a cornerstone of IAC's operations, allowing it to stay ahead in the competitive tech world.
The revenue model of IAC is as varied as its portfolio, encompassing subscription services, advertising, and service fees. Companies like Angi generate income from premium membership plans and lead referrals for home service professionals, while Care.com charges for premium job postings and subscriptions that offer detailed access to caregiver databases. Vimeo, on the other hand, primarily earns through its subscription plans that cater to professional video creators and businesses seeking platform and hosting services. IAC’s diversified revenue streams across its many ventures create a robust financial framework, enabling it to effectively manage risks associated with shifts in market demands or consumer preferences. This strategic diversification not only fuels IAC's prowess in scaling its subsidiaries profitably but also ensures its resilience and adaptability in a tech-driven marketplace.
IAC/Interactivecorp is a multifaceted American holding company that has evolved its business model to thrive in the dynamic digital landscape. Established as a technology conglomerate, IAC operates by acquiring and nurturing a diverse portfolio of businesses primarily centered around digital content, e-commerce, and services. Its ecosystem includes popular brands such as Vimeo, Angi (formerly Angie’s List), and Care.com. IAC's approach to business is akin to being a venture capitalist within the digital realm, constantly seeking out new opportunities for growth either by incubating new companies internally or acquiring promising ventures. The company excels at identifying undervalued digital assets, leveraging its expertise to grow these businesses, and eventually spinning them off to maximize shareholder value. This aggressive strategy has been a cornerstone of IAC's operations, allowing it to stay ahead in the competitive tech world.
The revenue model of IAC is as varied as its portfolio, encompassing subscription services, advertising, and service fees. Companies like Angi generate income from premium membership plans and lead referrals for home service professionals, while Care.com charges for premium job postings and subscriptions that offer detailed access to caregiver databases. Vimeo, on the other hand, primarily earns through its subscription plans that cater to professional video creators and businesses seeking platform and hosting services. IAC’s diversified revenue streams across its many ventures create a robust financial framework, enabling it to effectively manage risks associated with shifts in market demands or consumer preferences. This strategic diversification not only fuels IAC's prowess in scaling its subsidiaries profitably but also ensures its resilience and adaptability in a tech-driven marketplace.
Digital Revenue Growth: People Inc. delivered 9% digital revenue growth in Q3, marking its 8th consecutive quarter of growth and hitting the high end of guidance.
Profitability: People Inc. reported $72 million in digital EBITDA and 27% margins, with total adjusted EBITDA of $75 million, above the high end of guidance.
Google Traffic Decline: Google Search now drives only 24% of core sessions, down from 54% two years ago, but overall audience and revenue have been maintained through diversification.
AI & Platform Deals: People Inc. signed a pay-per-use AI content licensing deal with Microsoft and expects more such deals, including with OpenAI.
Cost Actions & Guidance: A 6% workforce reduction and other cost management supported profitability; full-year adjusted EBITDA guidance for People Inc. was slightly lowered to $325–340 million.
Share Buybacks: IAC repurchased $100 million of shares in Q3 and $300 million year-to-date, about 8% of shares outstanding, and intends to continue buybacks.
MGM Investment: IAC now owns 24% of MGM and sees it as deeply undervalued, planning to increase its stake.
Noncore Asset Sales: IAC plans to sell noncore assets within 3–6 months to further strengthen its cash position.
