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IAC/InteractiveCorp. (IAC)
NASDAQ:IAC
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IAC/InteractiveCorp.
(NASDAQ:IAC)
58Neutral
Positive Factors
Company Spin-off
IAC shares rose by ~6%, presumably as funds took positions ahead of the Angi spin targeted for the start of 2Q25.
Digital Revenue Growth
Dotdash was a bright spot again in the quarter, with proforma digital revenue growth of 9.5% vs. prior expectations in the 7-8% range.
Negative Factors
Revenue Decline
4Q24 revenue is forecast to decline 11.8% year-over-year, reflecting declines in ANGI, Search, and Emerging & Other revenues.
IAC/InteractiveCorp. (IAC) vs. S&P 500 (SPY)
Market Cap
$3.71B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-12.78%
EPS Growth-343.35%
CountryUS
Employees9,500
SectorCommunication Services
Sector Strength83
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)-6.44
Shares Outstanding77,493,835
10 Day Avg. Volume1,228,623
30 Day Avg. Volume1,155,041
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.95
Price to Cash Flow (P/CF)8.20
P/FCF Ratio8.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$68.50Price Target Upside53.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
IAC/InteractiveCorp. Business Overview & Revenue Model
Company DescriptionIAC is an Internet media company with segments that include ANGI Homeservices (51% of total revenue), Vimeo (9%), Dotdash (7%), applications (14%), and emerging and other (19%). The firm spun off the narrow-moat dating app provider, Match Group, in second-quarter 2020.
How the Company Makes MoneyIAC/InteractiveCorp generates revenue through a variety of channels aligned with its diverse business portfolio. A substantial portion of its income is derived from digital advertising across its media platforms and websites, which attract significant user engagement and traffic. Additionally, IAC earns money through subscription services and premium memberships, particularly in its online dating segment with brands like Match Group, which includes popular dating platforms such as Tinder and Match.com. The company also benefits from transaction fees and service charges in its home services and marketplaces segment. IAC's strategic acquisitions and investments in high-growth potential companies further contribute to its financial performance, enabling it to capitalize on emerging opportunities in the digital space. Key partnerships and collaborations with other tech and media companies bolster its market presence and revenue-generating capabilities.
IAC/InteractiveCorp. Financial Statement Overview
Summary
IAC/InteractiveCorp demonstrates a mixed financial performance. The income statement highlights challenges with profitability and inconsistent revenue growth. The balance sheet is a strength, with a solid equity position and no current debt burden. Cash flow analysis indicates improving free cash flow and solid operating cash flow, though historical volatility suggests potential risks. Overall, while the company has a strong financial foundation, it faces challenges in achieving consistent profitability and growth.Income Statement
The income statement reveals fluctuating revenue and profitability. The gross profit margin remains strong, indicating efficient cost management relative to revenue. However, the net profit margin is negative in recent years due to declining net income, highlighting profitability challenges. Revenue growth is inconsistent, with some years experiencing declines, pointing to potential market or operational issues. The negative EBIT and EBITDA margins suggest operating inefficiencies and potential restructuring needs.55
Neutral
Balance Sheet
The balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The company carries no debt as of the latest report, reducing financial risk. However, past years indicate fluctuating debt levels. The return on equity has been negative in recent periods due to net losses, but the strong stockholders' equity suggests potential for future recovery and growth.70
Positive
Cash Flow
Cash flow analysis shows a positive trend in free cash flow growth, particularly in the latest year, contributing to financial flexibility. Operating cash flow to net income ratio is positive, reflecting effective cash generation from operations despite negative net income in some years. However, historical variability in free cash flow suggests potential volatility in cash generation capacity.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.77B | 3.81B | 4.37B | 5.24B | 3.70B | 2.76B | Gross Profit |
| 2.92B | 2.75B | 3.02B | 3.31B | 2.39B | 2.04B | EBIT |
| -282.02M | -4.23M | -260.76M | -362.02M | -17.61M | -272.52M | EBITDA |
| -1.06B | -4.23M | 1.10B | -906.45M | 949.66M | 486.01M | Net Income Common Stockholders |
| -1.04B | -539.90M | 265.94M | -1.20B | 597.55M | 269.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.80B | 1.80B | 1.45B | 1.66B | 2.14B | 3.59B | Total Assets |
| 9.55B | 9.55B | 10.37B | 10.39B | 12.61B | 9.16B | Total Debt |
| 1.97B | 1.97B | 2.49B | 2.05B | 2.08B | 712.28M | Net Debt |
| 168.68M | 168.68M | 1.19B | 632.37M | -42.49M | -2.65B | Total Liabilities |
| 3.24B | 3.97B | 3.58B | 3.79B | 4.84B | 1.78B | Stockholders Equity |
| 5.58B | 5.58B | 6.08B | 5.93B | 7.18B | 6.60B |
| Cash Flow | Free Cash Flow | ||||
| -172.36M | 289.01M | 48.16M | -222.54M | 46.74M | 93.86M | Operating Cash Flow |
| -47.94M | 354.52M | 189.53M | -82.79M | 136.95M | 154.58M | Investing Cash Flow |
| -2.97B | 276.82M | -87.47M | -494.81M | -2.90B | -1.87B | Financing Cash Flow |
| 1.67B | -129.10M | -223.01M | -112.65M | 1.41B | 4.35B |
IAC/InteractiveCorp. Technical Analysis
Neutral
44.56
Price Trends
43.64
Positive
45.84
Negative
48.12
Negative
Market Momentum
-0.02
Positive
50.56
Neutral
37.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Neutral. The current price of 44.56 is below the 20-day moving average (MA) of 45.31, above the 50-day MA of 43.64, and below the 200-day MA of 48.12, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 37.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IAC.
IAC/InteractiveCorp. Risk Analysis
IAC/InteractiveCorp. disclosed 32 risk factors in its most recent earnings report. IAC/InteractiveCorp. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IAC/InteractiveCorp. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $20.89B | 17.92 | 79.84% | ― | 6.64% | 69.85% | |
62 Neutral | $7.75B | 14.89 | -865.98% | 0.63% | 3.41% | -10.41% | |
62 Neutral | $1.94B | 838.79 | 0.55% | ― | 2.63% | -58.77% | |
60 Neutral | $17.29B | ― | -2.39% | ― | 14.96% | 29.56% | |
59 Neutral | $29.33B | -0.37 | -15.56% | 4.08% | 1.99% | -47.30% | |
58 Neutral | $3.71B | ― | -9.29% | ― | -12.78% | -343.35% | |
57 Neutral | $782.39M | 22.05 | 3.42% | ― | -17.69% | ― |
* Communication Services Sector Average
Performance Comparison
IAC
IAC/InteractiveCorp.
44.56
-6.65
-12.99%
ANGI
Angi
1.57
-0.98
-38.43%
EXPE
Expedia
162.11
28.92
21.71%
TRIP
TripAdvisor
13.84
-13.50
-49.38%
ZG
Zillow Group Class A
68.50
22.28
48.20%
MTCH
Match Group
30.94
-2.41
-7.23%
IAC/InteractiveCorp. Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 8.68% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant operational improvements and financial performance in IAC's key segments, particularly in the turnaround of Angi and Dotdash. However, challenges remain, including Angi's Q1 2025 outlook and high corporate costs. Overall, the positive developments slightly outweigh the negatives.Highlights
Successful Turnaround for Angi and Dotdash
IAC successfully turned around its two main troubled businesses, Angi and Dotdash, over the past two years. Angi's EBITDA improved from $35 million after a significant decline, and Dotdash saw traffic growth, reversing previous declines.
Strong Cash Flow Performance
IAC reported a nearly $250 million increase in cash flow year-on-year to almost $300 million for its businesses, indicating strong financial performance.
Dotdash Digital Revenue Growth
Dotdash achieved 10% digital revenue growth, driven by 3% Core Sessions growth, 3% digital advertising growth, and 22% growth in performance marketing.
Angi's Competitive Positioning with Homeowner Choice
Angi implemented consumer choice consistent with FCC orders, improving customer experience as homeowners now choose the pro 60% more often when auto-matched.
Lowlights
Challenges in Q1 2025 for Angi
Angi's Q1 2025 outlook is below prior expectations, with revenue expected to be down in the low-20s percent year-over-year. The change in the competitive landscape due to the vacated FCC order caused market disruption.
Underperformance in Care.com's Consumer Segment
Care.com's consumer business struggled due to product deficiencies and challenging comps, leading to a decline in consumer segment revenue last year.
High Corporate Costs in 2025
IAC guided to a much higher corporate cost in 2025, driven by non-recurring costs such as Joey's separation costs, Angi spin costs, and ongoing litigation.
Company Guidance
During the IAC and Angi fourth quarter 2024 earnings call, key guidance included a focus on revenue growth and operational improvements across several segments. Angi is expected to see growth in 2025, driven by improved customer experience, unit economics, and reduced costs, with an anticipated return to revenue growth by 2026. Dotdash Meredith reported a 10% growth in digital revenue, with projections of 10% plus growth for 2025, bolstered by a 40% plus incremental EBITDA margin. Care.com aims to recover from pandemic-induced fluctuations with enterprise growth and a focus on product enhancements in the consumer segment. The company also highlighted the successful integration of AI technology, particularly in their D/Cipher platform, which is expected to drive advertising efficiency and revenue. Overall, the guidance emphasized a strategic shift towards leveraging technology, improving product offerings, and capitalizing on market opportunities to enhance financial performance.IAC/InteractiveCorp. Corporate Events
Financial Disclosures
IAC/InteractiveCorp’s Dotdash Meredith Releases Financial Statements
Neutral
Feb 28, 2025
Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, has released its consolidated financial statements for the years ending December 31, 2024, and 2023. The independent audit conducted by Ernst & Young LLP concluded that the financial statements present a fair view of the company’s financial position, adhering to U.S. accounting standards. The audit report highlights the company’s ability to continue as a going concern and notes the management’s responsibility for financial statement preparation and internal controls.
Executive/Board ChangesM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
IAC/InteractiveCorp Reports Q4 2024 Financial Results
Neutral
Feb 11, 2025
IAC announced its Q4 2024 financial results, revealing a 6% decline in total revenue compared to Q4 2023, alongside a notable operating income of $51 million. The company’s board approved the spinoff of Angi Inc., expected in the first half of 2025, and CEO Joey Levin will transition to an advisory role post-spin-off. Dotdash Meredith reported a 10% increase in digital revenue, contributing to IAC’s over $1 billion annual digital revenue, while Angi Inc. and Care.com showed varied financial performances. The company also extended a key service agreement with Google and reported increased financial flexibility due to a reduced leverage ratio.
Business Operations and StrategyFinancial Disclosures
IAC Announces Care.com as Separate Reporting Segment
Neutral
Jan 15, 2025
On January 15, 2025, IAC Inc. announced that Care.com will now be reported as a separate segment starting from the quarter ending December 31, 2024. This change, which was reflected in the supplemental financial information for the quarter ending September 30, 2024, aims to provide clearer insights into Care.com’s performance and strategic significance within IAC’s portfolio, potentially influencing stakeholder perceptions and investment strategies.
Executive/Board ChangesBusiness Operations and Strategy
IAC/InteractiveCorp. Announces Spin-Off and Leadership Transition
Positive
Jan 13, 2025
IAC Inc. announced the planned spin-off of its stake in Angi Inc. to its shareholders, transitioning CEO Joseph Levin to an Executive Chairman role at Angi while he continues as a consultant for IAC. This strategic move aims to allow both IAC and Angi to focus on their respective growth opportunities and operational strategies, with Angi benefiting from enhanced independence and IAC gaining flexibility for new ventures.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.