On August 6, 2024, IAC Inc (IAC, Financial) released its 8-K filing for the second quarter of 2024. IAC Inc (IAC) is an internet media company with segments that include Angi (33% of total revenue), Dotdash Meredith (39%), search (14%), and emerging and other (14%). The firm spun off the narrow-moat dating app provider Match Group in the second quarter of 2020 and the no-moat video software provider Vimeo in the second quarter of 2021.
Performance Overview
IAC Inc (IAC, Financial) reported a revenue of $949.5 million for Q2 2024, a 15% decline from $1,111.6 million in Q2 2023. The company posted an operating loss of $12 million, a significant improvement from the $55.5 million loss in the same period last year. Adjusted EBITDA increased by 24% to $87.3 million, up from $70.2 million in Q2 2023.
Segment Highlights
Dotdash Meredith: Digital revenue grew by 12% to $238 million, marking the second consecutive quarter of double-digit growth. However, print revenue declined by 7%. The segment's total operating income increased by $36 million to $18 million, and Adjusted EBITDA rose by 23% to $66.4 million.
Angi Inc: Revenue decreased by 10% to $315 million, driven by declines in the domestic business. However, operating income increased by $25 million to $9 million, and Adjusted EBITDA surged by 115% to $42.2 million.
Search: Revenue plummeted by 43% to $101.8 million, primarily due to a 46% decrease at Ask Media Group. Operating income and Adjusted EBITDA both decreased by $9.3 million to $4.6 million.
Emerging & Other: Revenue fell by 38% to $107.5 million, reflecting the sale of Roofing and Mosaic Group. Operating loss was $6.4 million compared to an income of $2.1 million in Q2 2023.
Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Growth |
|---|---|---|---|
| Revenue | $949.5 million | $1,111.6 million | -15% |
| Operating Loss | $(12.0) million | $(55.5) million | 78% |
| Net Loss | $(142.2) million | $(89.0) million | -60% |
| Adjusted EBITDA | $87.3 million | $70.2 million | 24% |
Key Financial Achievements
Despite the revenue decline, IAC Inc (IAC, Financial) achieved significant improvements in operating metrics. The company's total operating loss improved by 78% to $12 million, and Adjusted EBITDA increased by 24% to $87.3 million. These metrics are crucial for value investors as they indicate the company's ability to manage costs and improve profitability even in challenging market conditions.
Cash Flow and Liquidity
For the six months ended June 30, 2024, net cash provided by operating activities increased by $21 million to $149 million. Free Cash Flow surged by $97 million to $117 million, primarily due to higher Adjusted EBITDA and lower capital expenditures.
Challenges and Outlook
The company faces challenges in its Search and Emerging & Other segments, with significant revenue declines. The unrealized loss on investment in MGM Resorts International also impacted the net loss, which widened to $142.2 million from $89 million in Q2 2023. These challenges highlight the volatility and risks associated with IAC Inc (IAC, Financial)'s diverse portfolio.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from IAC Inc for further details.
