IAC Inc
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
PPLI$42.08+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-07.
0001800227-24-000024
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsPrinciples of Financial ReportingCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001800227-24-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsPrinciples of Financial ReportingThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 155 previous paragraphs and 198 current paragraphs.
87 unchanged; 59 reworded; 47 added; 8 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (47)
Current report
•Dotdash Meredith revenue increased 3% to $425.2 million due to an increase of $26.1 million, or 12%, from Digital, partially offset by a decrease of $15.1 million, or 7%, from Print.
Current report
◦The Digital increase was due primarily to increases of $21.2 million, or 16%, in Advertising Revenue and $4.9 million, or 19%, in Licensing and Other Revenue, with Performance Marketing Revenue flat compared to the prior year period. The increase in Advertising Revenue was driven primarily by higher programmatic revenue as a result of higher programmatic rates and a 9% increase in Core Sessions and an increase in premium advertising sold through the Dotdash Meredith sales team in the Home/Consumer Packaged Goods, Retail and Travel categories. The increase in Licensing and Other Revenue was due primarily to improved performance from content syndication partners including Apple News + and the addition of the OpenAI partnership, which began in May 2024. Performance Marketing Revenue was flat compared to the prior year perioddue primarily to a 17% increase in affiliate commerce commission revenue, offset by a decrease in Performance Marketing revenue in the Finance category.
Current report
•Emerging & Other revenue decreased 38% to $107.5 million due primarily to the inclusion in the prior year period of $39.0 million in revenue from Mosaic Group, the assets of which were sold on February 15, 2024, and $24.5 million in revenue from Roofing, which was sold on November 1, 2023.
Current report
•Angi Inc. revenue decreased 12% to $620.5 million driven by decreases of $79.1 million, or 13%, from Ads and Leads and $16.9 million, or 27%, from Services, partially offset by an increase of $9.4 million, or 16% from International.
Current report
◦The Ads and Leads decrease was due primarily to a decreases of $93.8 million, or 22%, in consumer connection revenue and $3.4 million, or 13%, in membership subscription revenue, partially offset by an increase of $18.2 million, or 13%, in advertising revenue. The decrease in consumer connection revenue and the increase in advertising revenue were due primarily to thefactors described above in the three-month discussion. The decrease in membership subscription revenue was due primarily to declines in Monetized Transactions and service professionals in the Angi Inc. network.
Current report
◦The International increase was due primarily to thefactors described above in the three-month discussion.
Current report
•Search revenue decreased 36% to $210.2 million due to a decrease of $115.5 million, or 40%, from Ask Media Group due primarily to thefactor described above in the three-month discussion.
Current report
Cost of revenue in 2024 decreased from 2023 due primarily to decreases of $48.5 million from Search and $32.3 million from Emerging & Other.
Current report
•The Search decrease was due primarily to a decrease in traffic acquisition costs of $71.4 million at Ask Media Group due primarily to thefactor described above in the three-month discussion.
Current report
•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $42.1 million in expense from Roofing, a decrease in expense of $13.9 million from Mosaic Group, and a decrease in compensation expense of $5.6 million at Care.com due to a reduction in headcount.
Current report
•The Dotdash Meredith decrease was due primarily to a decrease of $20.8 million from Print, partially offset by an increase of $5.4 million from Digital.
Current report
◦The Digital increase was due primarily to an increase of $6.6 million in compensation expense due primarily to an increase in headcount.
Current report
Selling and marketing expense in 2024 decreased from 2023 due to decreasesof$50.6 million from Angi Inc.,$20.6 million from Emerging & Other and $17.8 million from Search, partially offset by an increase of $7.4 million from Dotdash Meredith.
Current report
•The Emerging & Other decrease was due primarily to a decrease in expense of$14.6 million from Mosaic Group due to the sale of its assets on February 15, 2024 and the inclusion in the prior year period of$4.8 million in expense from Roofing, which was sold on November 1, 2023.
Current report
Selling and marketing expense in 2024 decreased from 2023 due to decreasesof $93.1 million from Angi Inc., $34.1 million from Emerging & Other and$32.3 million from Search, partially offset by an increase of$16.4 million from Dotdash Meredith.
Current report
•The Angi Inc. decrease was due primarily to decreases of$88.8 million from Ads and Leads and$5.4 million from Services.
Current report
◦The Ads and Leads decrease was due primarily to decreases of $73.7 million and $10.9 million in advertising expense and compensation expense, respectively. The decreases in advertising expense and compensation expense was due primarily to thefactors described above in the three-month discussion.
Current report
◦The Services decrease was due primarily to decreases of $2.9 million and $1.5 million in compensation expense and third-party wages, respectively. The decrease in compensation expense was due primarily to a reduction in headcount. The decrease in third-party wages was due primarily to streamlined fulfillment operations.
Current report
•The Emerging & Other decrease was due primarily to a decrease in expense of$21.1 million from Mosaic Group due to the sale of its assets on February 15, 2024, and the inclusion in the prior year period of$11.6 million in expense from Roofing.
Current report
General and administrative expense in 2024 decreased from 2023 due primarily to decreases of $8.8 million from Angi Inc. and$4.0 million from Dotdash Meredith, partially offset by an increase of$4.3 million from Emerging & Other.
Current report
•The Angi Inc. decrease was due primarily to a decrease of $7.5 million from Ads and Leads due primarily to decreases of $6.8 million in the provision for credit losses, $1.6 million in third-party wages, $1.3 million in compensation expense and $1.2 million in professional fees, partially offset by an impairment charge recognized in the second quarter of 2024 of $4.8 million ofan ROU asset related to Angi Inc. reducing its real estate footprint. The decrease in the provision for credit losses wasdue primarily to lower revenue and improved collection rates. The decrease in third-party wages was due primarily to reduced costs related to customer support services. The decrease in compensation expense was due primarily to a reduction in headcount. The decrease in professional fees was due primarily to a decrease in legal fees.
Current report
•The Dotdash Meredith decrease was due primarily to decreases in legal-related expenses of $2.3 million and non-payroll taxes of $1.2 million from Other (unallocated corporate costs). The decrease in non-payroll taxes was due primarily to the reversal of indemnification liabilities established for tax contingencies in connection with the Meredith acquisition.
Current report
•The Emerging & Other increase was due primarily to an increase at Care.com in legal accruals of $9.5 million related to the anticipated resolution of certain legal matters and an increase of $2.9 million in compensation expense, partially offset by the inclusion in the prior year period of $4.1 million of expense from Mosaic Group, the assets of which were sold on February 15, 2024, and $3.8 million of expense from Roofing, which was sold on November 1, 2023.
Current report
General and administrative expense in 2024 decreased from 2023 due primarily to decreases of $52.2 million from Dotdash Meredith and$19.9 million from Angi Inc.
Current report
•The Angi Inc. decrease was due primarily to decreases of $15.0 million from Ads and Leads and $6.2 million from Services.
Current report
Product development expense in 2024 decreased from 2023 due primarily to a decrease of $7.3 million from Emerging & Other.
Current report
•The Emerging & Other decrease was due primarily to the inclusion of expense in the prior year period of$4.6 million from Mosaic Group, the assets of which were sold on February 15, 2024 and a decrease of $1.7 million due primarily to outsourced personnel costs at Care.com.
Current report
Product development expense in 2024 decreased from 2023 due primarily to decrease of $5.4 million from Emerging & Other.
Current report
•The Emerging & Other decrease was due primarily to a decreases of $2.9 million in outsourced personnel costs and $1.4 million in compensation expense at Care.com and Vivian Health, respectively.
Current report
Depreciation in 2024 decreased due primarily to a decrease of $10.9 million at Dotdash Meredith, partially offset by an increase of $2.3 million at Angi Inc. The decrease at Dotdash Meredith was due primarily to a decrease of $5.6 million in expense related to the acceleration of depreciation on certain assets in 2023 and the inclusion in the second quarter of 2023 of a $4.2 million write-off of certain leasehold improvements and furniture and equipment. The increase at Angi Inc. was due primarily to an impairment charge of $2.5 million recognized in the second quarter of 2024 related to certain leasehold improvements and furniture and equipment related to Angi Inc. reducing its real estate footprint.
Current report
Operating income (loss)
Current report
Operating loss decreased $119.9 million, or 63%, due primarily to an increase in Adjusted EBITDA of $51.0 million, described below, and decreases of $35.4 million in amortization of intangibles, $32.4 million in depreciation and $1.1 million in stock-based compensation expense. The decreases in the amortization of intangibles and depreciation are due primarily to the factors described above in the three-month discussion. Depreciation was further impacted by the impairment of leasehold improvements and furniture and equipment of $25.3 million related to unoccupied lease space recognized in the first quarter of 2023 at Dotdash Meredith.
Current report
•Angi Inc. Adjusted EBITDA increased 115% to $42.2 million due to increases in Adjusted EBITDA of $20.8 million from Ads and Leads and $2.3 million from International.
Current report
•Emerging & Other Adjusted EBITDA decreased $8.8 million to a loss of $3.8 million due primarily to lower profits at Care.com due primarily to an increase in legal accruals of $9.5 million related to the anticipated resolution of certain legal matters and the inclusion in the prior year period of Adjusted EBITDA of $4.3 million at Mosaic Group, the assets of which were sold on February 15, 2024.
Current report
◦The Digital Adjusted EBITDA increase was due primarily to the factors described above in the three-month discussion.
Current report
◦The Print Adjusted EBITDA decreasewas due primarily to the factors described above in the three-month discussion.
Current report
◦The Ads and Leads Adjusted EBITDA increase was due primarily to lower selling and marketing expense and general administrative expense due primarily to the factors described above in the three-month discussion, partially offset by lower revenue andimpairment charges of $6.8 million recognized in 2024 of ROU assets related to Angi Inc. reducing its real estate footprint.
Current report
◦The International Adjusted EBITDA increase was due primarily to the factor described above in the three-month discussion.
Current report
•Search Adjusted EBITDA decreased 64% to $9.0 million due primarily tofactors described above in the three-month discussion.
Current report
•Corporate Adjusted EBITDA loss decreased 2% to $45.5 million due primarilyto lower legal-related expenses.
Showing the first 40 of 47 passages. Open the source sections for the rest.
Removed paragraphs (8)
Previous report
•The Angi Inc. decrease was due primarily to a decrease of $5.9 million from Services due primarily to a $5.3 million decrease in payments to third-party professional service providers primarily reflecting the residual impact from contracts entered into prior to January 1, 2023.
Previous report
Selling and marketing expense in 2024 decreased from 2023 due to decreasesof $42.6 million from Angi Inc., $14.5 million from Search and$13.5 million from Emerging & Other, partially offset by an increase of$9.1 million from Dotdash Meredith.
Previous report
•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $6.8 million in expense from Roofing, which was sold on November 1, 2023, and a decrease in expense of $6.4 million from Mosaic Group. The decrease from Mosaic Group was due primarily to a decrease in advertising expense of $8.2 million, partially offset by an increase of $2.1 million in severance expense including related payroll taxes, both due to the sale of its assets on February 15, 2024.
Previous report
General and administrative expense in 2024 decreased from 2023 due primarily to decreases of $48.2 million from Dotdash Meredith and$11.1 million from Angi Inc.
Previous report
•The Angi Inc. decrease was due primarily to decreases of $7.4 million from Ads and Leads and $4.3 million from Services.
Previous report
Operating (loss) income
Previous report
Income tax provision
Previous report
At March 31, 2024, IAC's aggregate percentage ownership in Turo is approximately 29%, on an as-converted basis. The Company has a warrant in Turo that expires on July 23, 2024 and has the option to gross or net settle the instrument. The Company is currently assessing its options and, if gross settled, the Company expects to use approximately $200 million in cash.
Reworded paragraphs (59)
Previous wording
•Dotdash Meredith - one of the largest digital and print publishers in America. Nearly 200 million people trust us to help them make decisions, take action and find inspiration. Dotdash Meredith's over 40 iconic brands include People, Better Homes & Gardens, Verywell, FOOD & WINE, The Spruce, allrecipes, Byrdie, REAL SIMPLE, Investopedia and Southern Living. Dotdash Meredith has two operating segments: (i) Digital, which includes its digital, mobile and licensing operations; and (ii) Print, which includes its magazine subscription and newsstand operations;
Current wording
•Dotdash Meredith - one of the largest digital and print publishers in America. Nearly 200 million people trust Dotdash Meredith to help them make decisions, take action and find inspiration. Dotdash Meredith's over 40 iconic brands include People, Better Homes & Gardens, Verywell, FOOD & WINE, The Spruce, allrecipes, Byrdie, REAL SIMPLE, Investopedia and Southern Living. Dotdash Meredith has two operating segments: (i) Digital, which includes its digital, mobile and licensing operations; and (ii) Print, which includes its magazine subscription and newsstand operations;
Previous wording
•Angi Inc.- a publicly traded company that connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. On November 1, 2023, Angi Inc. completed the sale of 100% of its wholly-owned subsidiary, Total Home Roofing, LLC ("Roofing"), and has reflected it as a discontinued operation in its standalone financial statements. Roofing does not meet the threshold to be reflected as a discontinued operation at the IAC level. During the fourth quarter of 2023, IAC moved Roofing to Emerging & Other and prior period financial information has been recast to conform to this presentation. Following IAC's move of Roofing to Emerging & Other, Angi Inc. has three operating segments: (i) Ads and Leads, (ii) Services and (iii) International (includes Europe and Canada). At March 31, 2024, the Company’s economic interest and voting interest in Angi Inc. were 84.3% and 98.2%, respect ively;
Current wording
•Angi Inc.- a publicly traded company that connects quality home service professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. On November 1, 2023, Angi Inc. completed the sale of 100% of its wholly-owned subsidiary, Total Home Roofing, LLC ("Roofing"), and has reflected it as a discontinued operation in its standalone financial statements. Roofing does not meet the threshold to be reflected as a discontinued operation at the IAC level. During the fourth quarter of 2023, IAC moved Roofing to Emerging & Other and prior period financial information has been recast to conform to this presentation. Following IAC's move of Roofing to Emerging & Other, Angi Inc. has three operating segments: (i) Ads and Leads, (ii) Services and (iii) International (includes Europe and Canada). At June 30, 2024, the Company’s economic interest and voting interest in Angi Inc. were 84.9% and 98.2%, respect ively;
Previous wording
◦Licensing and Other revenue - primarily includes revenue generated through brand and content licensing agreements. Brand licensing generates royalties from multiple long-term trademark licensing agreements with retailers, manufacturers, publishers and service providers. Content licensing royalties are earned from our relationship with Apple News + as well as other content distribution relationships.
Current wording
◦Licensing and Other revenue - primarily includes revenue generated through brand and content licensing and similar agreements. Brand licensing generates royalties from multiple long-term trademark licensing agreements with retailers, manufacturers, publishers and service providers. Content licensing royalties are earned from our relationship with Apple News + as well as other content use and distribution relationships, including utilization in large-language models and other artificial intelligence-related activities.
Previous wording
•Dotdash Meredith Term Loan A - due December 1, 2026. At March 31, 2024 and December 31, 2023, the outstanding balance of the Dotdash Meredith Term Loan A was $310.6 million and $315 million, respectively, and bore interest at an adjusted term secured overnight financing rate ("Adjusted Term SOFR") plus 2.25%, or 7.68% and 7.69%, respectively. The Dotdash Meredith Term Loan A has quarterly principal payments.
Current wording
•Dotdash Meredith Term Loan A - due December 1, 2026. At June 30, 2024 and December 31, 2023, the outstanding balance of the Dotdash Meredith Term Loan A was $306.3 million and $315 million, respectively, and bore interest at an adjusted term secured overnight financing rate ("Adjusted Term SOFR") plus 2.25%, or 7.65% and 7.69%, respectively. The Dotdash Meredith Term Loan A has quarterly principal payments.
Previous wording
•Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") - is a non-GAAP financial measure. See "Principles of Financial Reporting" for the definition of Adjusted EBITDA and a reconciliation of net earnings attributable to IAC shareholders to operating loss to Adjusted EBITDA for the three months ended March 31, 2024 and 2023.
Current wording
•Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") - is a non-GAAP financial measure. See "Principles of Financial Reporting" for the definition of Adjusted EBITDA and a reconciliation of net (loss) earnings attributable to IAC shareholders to operating loss to Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023.
Previous wording
Results of Operations for the Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2024 Compared to the Three and Six Months Ended June 30, 2023
Previous wording
•Angi Inc. revenue decreased 14% to $305.4 million driven by decreases of $43.9 million, or 15%, from Ads and Leads and $11.6 million, or 36%, from Services, partially offset by an increase of $5.4 million, or 18% from International.
Current wording
•Angi Inc. revenue decreased 10% to $315.1 million driven by decreases of $35.2 million, or 12%, from Ads and Leads and $5.3 million, or 18%, from Services, partially offset by an increase of $4.0 million, or 14% from International.
Previous wording
◦The Ads and Leads decrease was due primarily to a decrease of $52.4 million, or 25%, in consumer connection revenue, partially offset by an increase of $10.0 million, or 15%, in advertising revenue. The decrease in consumer connection revenue was due primarily to declines in Monetized Transactions as a result of fewer Transacting SPs resulting from a reduction in unprofitable sales and changes to demand channels to increase lead quality to enhance the user experience for both homeowners and service professionals and to improve profitability through greater matching efficiency and bidding optimization as evidenced by a higher ratio of Monetized Transactions per Service Request. The increase in advertising revenue was primarily driven by continued growth in sales.
Current wording
◦The Ads and Leads decrease was due primarily to a decrease of $41.4 million, or 20%, in consumer connection revenue, partially offset by an increase of $8.3 million, or 12%, in advertising revenue. The decrease in consumer connection revenue was driven by ongoing user-experience enhancements as well as lower sales and marketing spend, resulting in both lower Service Requests and lower acquisition of new service professionals. The increase in advertising revenue was primarily driven by continued growth in sales.
Previous wording
•Search revenue decreased 29% to $108.5 million due to a decrease of $42.4 million, or 32%, from Ask Media Group resulting from a reduction in marketing from affiliate partners driving fewer visitors to ad supported search and content websites.
Current wording
•Search revenue decreased 43% to $101.8 million due to a decrease of $73.1 million, or 46%, from Ask Media Group resulting from a reduction in marketing from affiliate partners driving fewer visitors to ad supported search and content websites.
Previous wording
•Dotdash Meredith revenue increased 1% to $390.5 million due to an increase of $24.5 million, or 13%, from Digital, partially offset by a decrease of $21.1 million, or 10%, from Print.
Current wording
•Dotdash Meredith revenue increased 2% to $815.7 million due to an increase of $50.6 million, or 13%, from Digital, partially offset by a decrease of $36.2 million, or 9%, from Print.
Previous wording
◦The Digital increase was due primarily to increases of $21.1 million, or 19%, in Advertising Revenue, $2.0 million, or 9%, in Licensing and Other Revenue and $1.5 million, or 3% in Performance Marketing Revenue. The increase in Advertising Revenue was driven primarily by an increase in premium advertising sold through the Dotdash Meredith sales team in the Beauty, Technology and Health and Pharmaceutical categories and higher programmatic revenue as a result of an 8% increase in Core Sessions. The increase in Licensing and Other Revenue was due primarily to improved performance from content syndication partners. The increase in Performance Marketing Revenue was due primarily to an increase in affiliate commerce commission revenue, partially offset by a decrease in Performance Marketing revenue in the Finance category.
Current wording
◦The Digital increase was due primarily to increases of $42.3 million, or 17%, in Advertising Revenue, $6.9 million, or 14%, in Licensing and Other Revenue and $1.5 million, or 1%, in Performance Marketing Revenue. The increase in Advertising Revenue was driven primarily by an increase in premium advertising sold through the Dotdash Meredith sales team in the Home/Consumer Packaged Goods, Retail and Technology categories and higher programmatic revenue as a result of higher programmatic rates and an 8% increase in Core Sessions. The increase in Licensing and Other Revenue was due primarily to factors described above in the three-month discussion. The increase in Performance Marketing Revenue was due primarily to an 18% increase in affiliate commerce commission revenue, partially offset by a decrease in Performance Marketing revenue in the Finance category.
Previous wording
◦The Print decrease was due primarily to decreases of $7.6 million, or 9%, in subscription revenue, $6.0 million, or 18%, in newsstand revenue and $5.4 million, or 11%, in advertising revenue. The decreases in subscription revenue, newsstand revenue and advertising revenue are all due, in part, to a reduction in the number of issues sold in the current year compared to the prior year and the ongoing migration from Print to Digital.
Current wording
◦The Print decrease was due primarily to decreases of $17.7 million, or 17%, in advertising revenue, $9.0 million, or 15%, in newsstand revenue and $7.6 million, or 5%, in subscription revenue. The decreases in advertising revenue, newsstand revenue and subscription revenue are all due, in part, to a reduction in the number of issues sold in the current year compared to the prior year and the ongoing migration from Print to Digital.
Previous wording
◦The Services decrease was due primarily to lower Service Requests as a result of certain efforts described in Ads and Leads above. In addition, the decrease in revenue reflects the residual impact from contracts entered into prior to January 1, 2023 and recognized as gross revenue in the first quarter of 2023. Effective January 1, 2023, Angi Inc. modified the Services terms and conditions resulting in net revenue reporting.
Current wording
◦The Services decrease was due primarily to lower Service Requests resulting from the factors described above in the three-month discussion. In addition, the decrease in revenue reflects the residual impact from contracts entered into prior to January 1, 2023 and recognized as gross revenue in the first quarter of 2023. Effective January 1, 2023, Angi Inc. modified the Services terms and conditions resulting in net revenue reporting.
Previous wording
•Emerging & Other revenue decreased 34% to $126.5 million due primarily to the inclusion of $38.4 million in revenue from Roofing in the prior year period, which was sold on November 1, 2023, and a decrease of $22.6 million in revenue ($17.9 million in 2024 compared to $40.5 million in 2023) from Mosaic Group due to the sale of its assets on February 15, 2024.
Current wording
•Emerging & Other revenue decreased 36% to $234.1 million due primarily to the inclusion of $62.9 million in revenue from Roofing in the prior year period, which was sold on November 1, 2023, and a decrease of $61.7 million in revenue ($17.8 million in 2024 compared to $79.5 million in 2023) from Mosaic Group due to the sale of its assets on February 15, 2024.
Previous wording
•The Search decrease was due primarily to a decrease in traffic acquisition costs of $23.8 million at Ask Media Group due primarily to a decrease in the proportion of revenue earned from affiliate partners who direct traffic to our websites.
Current wording
•The Search decrease was due primarily to a decrease in traffic acquisition costs of $47.7 million at Ask Media Group due primarily to a decrease in the proportion of revenue earned from affiliate partners who direct traffic to our websites.
Previous wording
•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $25.1 million in expense from Roofing, which was sold on November 1, 2023, a decrease in expense of $3.1 million from Mosaic Group due to the sale of its assets on February 15, 2024, and a decrease in compensation expense of $2.9 million at Care.com due to a reduction in headcount.
Current wording
•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $17.0 million in expense from Roofing, which was sold on November 1, 2023, a decrease in expense of $10.8 million from Mosaic Group due to the sale of its assets on February 15, 2024, and a decrease in compensation expense of $2.7 million at Care.com due to a reduction in headcount.
Previous wording
Cost of revenue in 2024 decreased from 2023 due to decreases of $32.1 million from Emerging & Other, $23.1 million from Search, $11.3 million from Dotdash Meredith and $4.4 million from Angi Inc.
Current wording
Cost of revenue in 2024 decreased from 2023 due primarily to decreases of $71.7 million from Search, $64.4 million from Emerging & Other and $15.5 million from Dotdash Meredith.
Previous wording
•The Dotdash Meredith decrease wasdue primarily to a decrease of $10.1 million from Print due primarily to a decrease of $11.9 million in production and distribution costs (postage, printing, paper and content) resulting from a reduction in circulation of certain publications and decreases in paper costs and freight surcharges.
Current wording
◦The Print decrease was due primarily to a decrease of $24.5 million in production and distribution costs (postage, printing, paper and content) resulting from a reduction in circulation of certain publications and decreases in paper costs and freight surcharges.
Previous wording
•The Angi Inc. decrease was due primarily to a decrease of$40.3 million from Ads and Leads due primarily to decreases of $31.9 million and $7.5 million in advertising expense and compensation expense, respectively. The decrease in advertising expense was due primarily to improved efficiency. The decrease in compensation expense was due primarily to a reduction in headcount.
Current wording
•The Angi Inc. decrease was due primarily to a decrease of $48.4 million from Ads and Leads due primarily to decreases of $41.8 million and $3.5 million in advertising expense and compensation expense, respectively. The decrease in advertising expense was due primarily to improved efficiency. The decrease in compensation expense was due primarily to a reduction in headcount.
Previous wording
•The Search decrease was due primarily to a decrease of $13.4 million in online marketing spend at Ask Media Group.
Current wording
•The Search decrease was due primarily to a decrease of $16.4 million in online marketing spend at Ask Media Group.
Previous wording
•The Dotdash Meredith increase was due primarily to an increase of $2.8 million in compensation expense at Digital due to an increase in headcount.
Current wording
•The Dotdash Meredith increase was due primarily to an increase of$7.0 million from Digital due primarily to increases in online marketing spend and compensation expense of $3.4 million and $2.2 million, respectively. The increase in compensation expense was due primarily to an increase in headcount.
Previous wording
•The Dotdash Meredith increase was due primarily to an increase of$11.7 million from Digital, partially offset by a decrease of$2.2 million from Print.
Current wording
•The Dotdash Meredith increase was due primarily to an increase of$18.7 million from Digital, partially offset by a decrease of$2.0 million from Print.
Previous wording
◦The Digital increase was due primarily to increases in online marketing spend and compensation expense of $6.8 million and $3.3 million, respectively. The increase in compensation expense was due primarily to an increase in headcount.
Current wording
◦The Digital increase was due primarily to increases in online marketing spend and compensation expense of $10.2 million and $5.5 million, respectively. The increase in compensation expense was due primarily to an increase in headcount.
Previous wording
◦The Print decrease was due primarily to a decrease of $4.0 million in subscription acquisition costs, partially offset by an increase of $1.0 million in compensation expense. The decrease in subscription acquisition costs was driven by lower commission payments made to third-party agents that sell magazine subscriptions resulting from the shift from print to digital subscriptions. The increase in compensation expense was due primarily to an increase in severance expense.
Current wording
◦The Print decrease was due primarily to a decrease of $2.0 million in subscription acquisition costs. The decrease in subscription acquisition costs was driven by lower commission payments made to third-party agents that sell magazine subscriptions resulting from the shift from print to digital subscriptions.
Previous wording
•The Dotdash Meredith decrease was due primarily to the inclusion in the first quarter of 2023 of an impairment charge at Other (unallocated corporate costs) of $44.7 million of an ROU asset related to unoccupied lease space and the inclusion in the first quarter of 2024 of a $2.3 million gain recognized on the sale of an aircraft. See "Note 2—Financial Instruments and Fair Value Measurements" to the financial statements included in "Item 1—Consolidated Financial Statements" for additional information about the impairment charge.
Current wording
•The Dotdash Meredith decrease was due primarily to the inclusion in the first quarter of 2023 of an impairment charge at Other (unallocated corporate costs) of $44.7 million of an ROU asset related to unoccupied lease space, a decrease of $2.3 million in legal-related expenses in the second quarter of 2024 and the inclusion in the first quarter of 2024 of a $2.3 million gain recognized on the sale of an aircraft. See "Note 2—Financial Instruments and Fair Value Measurements" to the financial statements included in "Item 1—Consolidated Financial Statements" for additional information about the impairment charge.
Previous wording
◦The Ads and Leads decrease was due primarily to decreases of $7.7 million in the provision for credit losses and $3.0 million in legal-related expenses, partially offset by animpairment charge recognized in the first quarter of 2024 of $2.0 million of an ROU asset related to Angi Inc. reducing its real estate footprint. The decrease in the provision for credit losses was due primarily to lower revenue and improved collection rates.
Current wording
◦The Ads and Leads decrease was due primarily to decreases of $14.5 million in the provision for credit losses and $4.0 million in legal-related expenses, partially offset byimpairment charges of $6.8 million recognized in 2024 of ROU assets related to Angi Inc. reducing its real estate footprint. The decrease in the provision for credit losses wasdue primarily to thefactors described above in the three-month discussion.
Previous wording
◦The Services decrease was due primarily to a decrease of $3.7 million in compensation expense due primarily to a $2.9 million decrease in stock-based compensation as a result of a reduction in headcount.
Current wording
◦The Services decrease was due primarily to a decrease of $4.7 million in compensation expense due primarily to a $2.6 million decrease in stock-based compensation as a result of a reduction in headcount.
Previous wording
Depreciation in 2024 decreased from 2023 due primarily to a decrease of $24.8 million at Dotdash Meredith due primarily to the inclusion of an impairment charge of $25.3 million recognized in the first quarter of 2023 related to leasehold improvements and furniture and equipment resulting from unoccupied leased space. See "Note 2—Financial Instruments and Fair Value Measurements" to the financial statements included in "Item 1—Consolidated Financial Statements" for additional information about the impairment charge.
Current wording
Depreciation in 2024 decreased from 2023 due primarily to a decrease of $35.7 million at Dotdash Meredith due primarily to the inclusion of an impairment charge of $25.3 million recognized in the first quarter of 2023 related to leasehold improvements and furniture and equipment resulting from unoccupied leased space, a $4.2 million write-off of certain leasehold improvements and furniture and equipment recognized during the second quarter of 2023 and a decrease of $4.2 million in expense related to the acceleration of depreciation on certain assets in 2023. See "Note 2—Financial Instruments and Fair Value Measurements" to the financial statements included in "Item 1—Consolidated Financial Statements" for additional information about the impairment charge recognized in the first quarter of 2023.
Previous wording
Operating loss decreased $76.4 million, or 56%, due primarily to an increase in Adjusted EBITDA of $33.9 million, described below, and decreases of $24.6 million in depreciation and $17.9 million in amortization of intangibles. The decrease in depreciation was due primarily to the impairment of leasehold improvements and furniture and equipment at Dotdash Meredith of $25.3 million related to unoccupied lease space recognized in the first quarter of 2023. The decrease in the amortization of intangibles was due primarily to lower expense at Dotdash Meredith and Angi Inc. due in part to certain intangible assets becoming fully amortized, partially offset by an increase in expense as a result of a change in classification of two Dotdash Meredith Digital trade name indefinite-lived intangible assets to definite-lived intangible assets, effective January 1, 2024.
Current wording
Operating loss decreased $43.5 million, or 78%, due primarily to a decrease of $17.5 million in amortization of intangibles, an increase in Adjusted EBITDA of $17.1 million, described below, and decreases of $7.8 million in depreciation and $1.1 million in stock-based compensation expense. The decrease in the amortization of intangibles was due primarily to lower expense at Dotdash Meredith and Angi Inc. due in part to certain intangible assets becoming fully amortized, partially offset by an increase in expense as a result of a change in classification of certain Dotdash Meredith Digital trade name indefinite-lived intangible assets to definite-lived intangible assets, effective January 1, 2024. The decrease in depreciation was due primarily to a decrease of $5.6 million in expense related to the acceleration of depreciation on certain assets in 2023 and the inclusion in the second quarter of 2023 of a $4.2 million write-off of certain leasehold improvements and furniture and equipment at Dotdash Meredith, partially offset by an increase at Angi Inc. of $2.5 million due to a write-off of certain leasehold improvements and furniture and equipment.recognized in the second quarter of 2024 related to Angi Inc. reducing its real estate footprint.
Previous wording
At March 31, 2024, there was $268.5 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 3.8 years.
Current wording
At June 30, 2024, there was $255.0 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 3.8 years.
Previous wording
For a reconciliation of net earnings attributable to IAC shareholders to operating loss to Adjusted EBITDA, see "Principles of Financial Reporting." For a reconciliation of operating (loss) income to Adjusted EBITDA for the Company's reportable segments, see "Note 5—Segment Information" to the financial statements included in "Item 1—Consolidated Financial Statements."
Current wording
For a reconciliation of net (loss) earnings attributable to IAC shareholders to operating loss to Adjusted EBITDA, see "Principles of Financial Reporting." For a reconciliation of operating income (loss) to Adjusted EBITDA for the Company's reportable segments, see "Note 5—Segment Information" to the financial statements included in "Item 1—Consolidated Financial Statements."
Previous wording
•Dotdash Meredith Adjusted EBITDA increased $53.4 million to $30.2 million from a loss of $23.1 million due to a decrease in Adjusted EBITDA losses of $49.2 million from Other (unallocated corporate costs) and an increase in Adjusted EBITDA of $12.6 million from Digital, partially offset by a decrease in Adjusted EBITDA of $8.4 million from Print.
Current wording
•Dotdash Meredith Adjusted EBITDA increased 23% to $66.4 million due to an increase in Adjusted EBITDA of $12.6 million from Digital and a decrease in Adjusted EBITDA losses of $3.9 million from Other (unallocated corporate costs), partially offset by a decrease in Adjusted EBITDA of $4.2 million from Print.
Previous wording
◦The Digital Adjusted EBITDA increase was due primarily to higher revenue and continued operating leverage.
Current wording
◦The Digital Adjusted EBITDA increase was due primarily to higher revenue and continued operating expense leverage.
Previous wording
◦The Ads and Leads Adjusted EBITDA increase was due primarily to lower selling and marketing expense due to improved marketing efficiency and lower general administrative expense due to decreases in the provision for credit losses and legal-related expenses, partially offset by lower revenue and animpairment charge recognized in the first quarter of 2024 of $2.0 million of an ROU asset related to Angi Inc. reducing its real estate footprint.
Current wording
◦The Ads and Leads Adjusted EBITDA increase was due primarily to lower selling and marketing expense due to improved marketing efficiency and lower general administrative expense due primarily to a decrease in the provision for credit losses, partially offset by lower revenue and an impairment charge recognized in the second quarter of 2024 of $4.8 million ofan ROU asset related to Angi Inc. reducing its real estate footprint.
Previous wording
◦The International Adjusted EBITDA increase was due primarily to an increase in revenue.
Current wording
◦The International Adjusted EBITDA increase was due primarily to an increase in revenue and continued operating expense leverage.
Previous wording
•Search Adjusted EBITDA decreased 59% to $4.4 million due primarily to lower revenue, partially offset by lower traffic acquisition costs and selling and marketing expense.
Current wording
•Search Adjusted EBITDA decreased 67% to $4.6 million due primarily to lower revenue, partially offset by lower traffic acquisition costs and selling and marketing expense.
Previous wording
◦The Other (unallocated corporate costs) Adjusted EBITDA loss decrease was due primarily to the inclusion in the first quarter of 2023 of an impairment charge of $44.7 million of an ROU asset related to unoccupied lease space and the inclusion in the first quarter of 2024 of a $2.3 million gain recognized on the sale of an aircraft.
Current wording
◦The Other (unallocated corporate costs) Adjusted EBITDA loss decrease was due primarily to the inclusion in the first quarter of 2023 of an impairment charge of $44.7 million of an ROU asset related to unoccupied lease space, the inclusion in the first quarter of 2024 of a $2.3 million gain recognized on the sale of an aircraft and a decrease in legal-related expenses of $2.3 million.
Previous wording
•Angi Inc. Adjusted EBITDA increased $6.3 million to $36.0 million due to increases in Adjusted EBITDA of $2.3 million from International, $2.2 million from Services and $1.4 million from Ads and Leads.
Current wording
•Angi Inc. Adjusted EBITDA increased 59% to $78.1 million due to increases in Adjusted EBITDA of $22.2 million from Ads and Leads, $4.6 million from International and $2.5 million from Services.
Previous wording
•Emerging & Other Adjusted EBITDA decreased $19.8 million to a loss of $4.2 million due primarily to $16.5 million in severance expense and transaction-related costs related to the sale of assets of Mosaic Group on February 15, 2024 and lower profits from Care.com.
Current wording
•Emerging & Other Adjusted EBITDA decreased $28.6 million to a loss of $8.0 million due primarily to $16.5 million in severance expense and transaction-related costs related to the sale of assets of Mosaic Group on February 15, 2024 and lower profits at Care.com due to an increase in expense of $9.5 million in connection with the anticipated resolution of certain legal matters.
Previous wording
Interest expense in 2024 increased from 2023 due primarily to an increase in interest rates from 8.77% and 6.94% at March 31, 2023 to 9.43% and 7.68% at March 31, 2024 on the Dotdash Meredith Term Loan B and Dotdash Meredith Term Loan A, respectively.
Current wording
Interest expense in 2024 increased from 2023 due primarily to an increase in interest rates from 9.26% and 7.24% at June 30, 2023 to 9.43% and 7.65% at June 30, 2024 on the Dotdash Meredith Term Loan B and Dotdash Meredith Term Loan A, respectively.
Showing the first 40 of 59 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
◦The Print decrease was due primarily to decreases of $12.4 million, or 21%, in advertising revenue and $3.0 million, or 11%, in newsstand revenue. The decreases in advertising revenue and newsstand revenue are both due, in part, to a reduction in the number of issues sold in the current year compared to the prior year and the ongoing migration of audience from Print to Digital.
Current report — wording carried from elsewhere
◦The Services decrease was due primarily to lower Service Requests as a result of certain efforts described in Ads and Leads above.
Current report — wording carried from elsewhere
•The Search decrease was due primarily to a decrease of $29.8 million in online marketing spend at Ask Media Group.
Current report — wording carried from elsewhere
◦The Other (unallocated corporate costs) Adjusted EBITDA loss decrease was due primarily to a decrease in legal-related expenses of $2.3 million.
Current report — wording carried from elsewhere
•Dotdash Meredith Adjusted EBITDA increased 212% to $96.7 million due to a decrease in Adjusted EBITDA losses of $53.1 million from Other (unallocated corporate costs) and an increase in Adjusted EBITDA of $25.2 million from Digital, partially offset by a decrease in Adjusted EBITDA of $12.6 million from Print.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Product development expense in 2024 increased from 2023 due primarily to an increase of $2.2 million from Dotdash Meredith.