IAC Inc
For the period ended Sep 30, 2024. Filed Nov 12, 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.
Sep 30, 2024 · Filed Nov 12, 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 2024-06-30; filed 2024-08-07.
0001800227-24-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsPrinciples of Financial ReportingCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001800227-24-000046
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 198 previous paragraphs and 209 current paragraphs.
73 unchanged; 92 reworded; 40 added; 25 removed; 8 previous and 4 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 (40)
Current report
Angi
Current report
•Dotdash Meredith revenue increased 5% to $439.5 million due to an increase of $34.4 million, or 16%, from Digital, partially offset by a decrease of $12.7 million, or 6%, from Print.
Current report
•Angi revenue decreased 16% to $296.7 million driven by decreases of $50.8 million, or 17%, from Ads and Leads and $6.3 million, or 21%, from Services, partially offset by an increase of $2.5 million, or 9% from International.
Current report
•Angi revenue decreased 13% to $917.2 million driven by decreases of $129.9 million, or 15%, from Ads and Leads and $23.1 million, or 25%, from Services, partially offset by an increase of $11.9 million, or 13% from International.
Current report
•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $57.1 million in expense from Roofing, which was sold on November 1, 2023, a decrease in expense of $24.5 million from Mosaic Group, the assets of which were sold on February 15, 2024, and decreases in compensation expense of $8.3 million at Care.com due to a reduction in headcount and production costs of $1.7 million at IAC Films.
Current report
◦The Digital increase was due primarily to increases of $11.6 million in compensation expense, $2.7 million in traffic acquisition costs and $1.7 million in content costs. The increase in compensation expense was due primarily to an increase in headcount. The increase in traffic acquisition costs was due primarily to a new contractual relationship to increase programmatic rates. The increase in content costs was due primarily to an investment in video production.
Current report
•The Emerging & Other decrease was due primarily to a decrease in expense of$16.7 million from Mosaic Group, assets of which were sold on February 15, 2024, the inclusion in the prior year period of$4.7 million in expense from Roofing, which was sold on November 1, 2023, and a decrease of $1.7 million in advertising expense at Care.com due primarily to lower television advertising spend.
Current report
•The Dotdash Meredith increase was due primarily to increases of$6.8 million from Digital and$3.7 million from Print.
Current report
◦The Digital increase was due primarily to increases of $2.1 million in compensation expense and $2.0 in online marketing spend. The increase in compensation expense was due primarily to increases in salary, commissions and employee benefits.
Current report
◦The Print increase was due primarily to an increase of $3.3 million in offline marketing spend primarily as a result of expense related to the promotion of Dotdash Meredith's inaugural Food & Wine Charleston event in September 2024.
Current report
•The Angi decrease was due primarily to decreases of$135.2 million from Ads and Leads and$5.0 million from Services, partially offset by an increase of$3.7 million from International.
Current report
◦The International increase was due primarily to an increase of $3.3 million in advertising expense due primarily to an increase in online advertising spend to increase brand awareness.
Current report
•The Emerging & Other decrease was due primarily to a decrease in expense of$37.8 million from Mosaic Group, the assets of which were sold on February 15, 2024, the inclusion in the prior year period of$16.3 million in expense from Roofing, which was sold on November 1, 2023, and a decrease in advertising expense of $2.5 million at Care.com due primarily to thefactor described above in the three-month discussion.
Current report
•The Search decrease was due primarily to decreases of $41.1 million in online marketing spend and $3.3 million in compensation expense at Ask Media Group. The decrease in compensation expense was due primarily to a reduction in headcount.
Current report
General and administrative expense in 2024 decreased from 2023 due primarily to decreases of $21.9 million from Angi,$5.3 million from Emerging & Other and$4.6 million from Corporate, partially offset by an increase of$5.8 million from Dotdash Meredith.
Current report
•The Corporate decrease was due primarily to a $10.0 million benefit in 2024 related to a favorable settlement of a legal matter, partially offset by an increase in compensation expense and higher professional fees.
Current report
•The Dotdash Meredith increase was due primarily to a $6.2 million increase in non-payroll related taxes resulting primarily from the inclusion in the prior year period of $8.0 million related to the reversal of certain pre-acquisition indemnification liabilities related to the 2021 acquisition of Meredith.
Current report
General and administrative expense in 2024 decreased from 2023 due primarily to decreases of $46.4 million from Dotdash Meredith,$41.8 million from Angi,$4.4 million from Corporate and $3.5 million from Emerging & Other.
Current report
•The Angi decrease was due primarily to decreases of $30.6 million from Ads and Leads and $12.5 million from Services.
Current report
◦The Services decrease was due primarily to decreases of $7.3 million in compensation expense, $1.1 million in software license and maintenance costs and $1.0 million in third-party wages. The decrease in compensation expense was due primarily to a reduction in headcount. The decreases in software license and maintenance costs and third-party wages are due primarily to reduced costs related to customer support services.
Current report
•The Corporate decrease was due primarily to the factors 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 $13.4 million of expense from Roofing, which was sold on November 1, 2023, a decrease in expense of $4.4 million from Mosaic Group, the assets of which were sold on February 15, 2024, and decreases of $4.0 million in compensation expense at Newco (IAC's former incubator company), due primarily to a reduction in headcount, and $3.1 million in consulting costs at IAC Films, partially offset by increases at Care.com of $11.1 million of legal-related expenses related to the resolution of certain legal matters and $8.0 million in compensation expense due primarily to an increase in headcount.
Current report
Product development expense in 2024 decreased from 2023 due primarily to a decrease of $5.7 million from Emerging & Other, partially offset by increases of $2.8 million from Angi and $1.7 million from Dotdash Meredith.
Current report
•The Angi increase was due primarily to an increase of $1.0 million from Ads and Leads primarily as a result of an increase in software license and maintenance costs.
Current report
•The Dotdash Meredith increase was due primarily to an increase at Digital, resulting from an increase in compensation expense due to an increase in headcount.
Current report
Product development expense in 2024 decreased from 2023 due primarily to a decrease of $11.1 million from Emerging & Other, partially offset by an increase of $4.7 million from Dotdash Meredith.
Current report
•The Emerging & Other decrease was due primarily to decreases of $4.4 million in outsourced personnel costs at Care.com,$4.3 million in expense from Mosaic Group, the assets of which were sold on February 15, 2024, and $2.2 million in compensation expense at Vivian Health.
Current report
•The Dotdash Meredith increase was due primarily to an increase of$5.7 million from Digital due primarily to an increase of $9.7 million in compensation expense, partially offset by decreases of $2.4 million in outsourced personnel costs and $2.0 million in software license and maintenance costs. The increase in compensation expense is due to an increase in headcount, which was partially offset by a reduction in outsourced personnel costs due to a reduction in the use of third-party contractors. The decrease in software license and maintenance costs was due primarily to a reduction in software contract renewals.
Current report
See "Note 2—Financial Instruments and Fair Value Measurements" to the financial statements included in "Item 1—Consolidated Financial Statements" for additional information on the 2023 Mosaic Group goodwill impairment, the Dotdash Meredith Digital 2023 indefinite-lived intangible asset impairment and the Dotdash Meredith 2023 leasehold improvements and furniture and equipment impairment charge.
Current report
◦The Other (unallocated corporate costs) Adjusted EBITDA loss increase was due primarily to the inclusion in the prior year period of $8.0 million related to the reversal of certain pre-acquisition indemnification liabilities related to the 2021 Meredith acquisition.
Current report
•Angi Adjusted EBITDA increased 27% to $35.4 million due to an increase in Adjusted EBITDA of $10.1 million from Ads and Leads, partially offset by an increase in Adjusted EBITDA losses of $2.5 million from Other (corporate unallocated costs).
Current report
◦The Other (corporate unallocated costs) Adjusted EBITDA losses increase was due primarily to an increase in compensation expense.
Current report
•Emerging & Other Adjusted EBITDA increased 23% to $16.0 million due primarily to profits at both The Daily Beast and Vivian Health in 2024 compared to losses in 2023 and the inclusion in the prior year period of Adjusted EBITDA losses of $2.0 million at Roofing, which was sold on November 1, 2023, partially offset by $3.7 million in profits in 2023 at Mosaic Group, the assets of which were sold on February 15, 2024.
Current report
•Corporate Adjusted EBITDA loss decreased 27% to $15.1 milliondue primarily to a $10.0 million benefit in 2024 related to a favorable settlement of a legal matter, partially offset by higher professional fees and an increase in compensation expense.
Current report
•Corporate Adjusted EBITDA loss decreased 10% to $60.7 million due to the factors described above in the three-month discussion.
Current report
Interest expense was relatively flat compared to the prior year period.
Current report
Interest expense increased, principally at Dotdash Meredith, due primarily to an increase in the average interest rates over the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023, partially offset by a decrease in the debt outstanding on the Dotdash Meredith's Term Loans.
Current report
For the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
Current report
Income tax benefit
Current report
In 2024, the effective income tax rate is higher than the statutory rate due primarily to the valuation allowance release for foreign net operating losses and state taxes. Following the purchase of the remaining noncontrolling interests of a foreign subsidiary, we reorganized related business operations, which resulted in the release of a valuation allowance for foreign net operating losses in the amount of $31.3 million as a discrete item in the third quarter because we are now forecasting the utilization of the net operating losses within the foreseeable future.
Removed paragraphs (25)
Previous report
Angi Inc.
Previous report
•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 report
•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 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.
Previous 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.
Previous report
◦The Digital increase was due primarily to an increase of $6.6 million in compensation expense due primarily to an increase in headcount.
Previous 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.
Previous report
•The Angi Inc. decrease was due primarily to decreases of$88.8 million from Ads and Leads and$5.4 million from Services.
Previous 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.
Previous report
•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 report
◦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 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.
Previous 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.
Previous 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.
Previous report
◦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 report
Product development expense in 2024 decreased from 2023 due primarily to decrease of $5.4 million from Emerging & Other.
Previous 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.
Previous 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.
Previous report
•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 report
◦The Services Adjusted EBITDA increase was due primarily to lower operating expenses due to a reduced overall cost base as a result of exiting complex and less profitable offerings.
Previous report
•Corporate Adjusted EBITDA loss decreased 2% to $45.5 million due primarilyto lower legal-related expenses.
Previous report
For the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023
Previous report
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.
Previous report
For the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023
Previous report
Income tax benefit (provision)
Reworded paragraphs (92)
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 June 30, 2024, the Company’s economic interest and voting interest in Angi Inc. were 84.9% and 98.2%, respect ively;
Current wording
•Angi Inc. ("Angi")- a publicly traded company that connects quality home professionals with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. On November 1, 2023, Angi 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 has three operating segments: (i) Ads and Leads, (ii) Services and (iii) International (includes Europe and Canada). At September 30, 2024, the Company’s economic interest and voting interest in Angi were 85.3% and 98.3%, respect ively;
Previous wording
•Mosaic Group, a leading developer and provider of global subscription mobile applications. The assets of Mosaic Group were sold on February 15, 2024, which was accounted for as a sale of a business, for approximately $160 million;
Current wording
•Mosaic Group, a leading developer and provider of global subscription mobile applications for periods prior to the sale of its assets on February 15, 2024, which was accounted for as a sale of a business, for approximately $160 million;
Previous wording
•Roofing (previously included within the Angi Inc. segment), a provider of roof replacement and repair services, for periods prior to its sale on November 1, 2023; and
Current wording
•Roofing (previously included within the Angi segment), a provider of roof replacement and repair services, for periods prior to its sale on November 1, 2023; and
Previous wording
•Ads and Leads Revenue- primarily comprises domestic revenue from consumer connection revenue for consumer matches, revenue from service professionals under contract for advertising and membership subscription revenue from service professionals and consumers.
Current wording
•Ads and Leads Revenue- primarily comprises domestic revenue from consumer connection revenue for consumer matches, revenue from professionals under contract for advertising and membership subscription revenue from professionals and consumers.
Previous wording
•Services Revenue -primarily comprises domestic revenue from pre-priced offerings by which the consumer requests services through an Angi Inc. platform and Angi Inc. connects them with a service professional to perform the service.
Current wording
•Services Revenue -primarily comprises domestic revenue from pre-priced offerings by which the consumer requests services through an Angi platform and Angi connects them with a professional to perform the service.
Previous wording
•International Revenue - primarily comprises revenue generated within the International segment (consisting of businesses in Europe and Canada), including consumer connection revenue for consumer matches and membership subscription revenue from service professionals and consumers.
Current wording
•International Revenue - primarily comprises revenue generated within the International segment (consisting of businesses in Europe and Canada), including consumer connection revenue for consumer matches and membership subscription revenue from professionals and consumers.
Previous wording
•Service Requests - are (i) fully completed and submitted domestic service requests for connections with Ads and Leads service professionals, (ii) contacts to Ads and Leads service professionals generated via the service professional directory from unique users in unique categories (such that multiple contacts from the same user in the same category in the same day are counted as one Service Request) and (iii) requests to book Services jobs in the period.
Current wording
•Service Requests - are (i) fully completed and submitted domestic service requests for connections with Ads and Leads professionals, (ii) contacts to Ads and Leads professionals generated via the professional directory from unique users in unique categories (such that multiple contacts from the same user in the same category in the same day are counted as one Service Request) and (iii) requests to book Services jobs in the period.
Previous wording
•Monetized Transactions- are (i) Service Requests that are matched to a paying Ads and Leads service professional in the period and (ii) completed and in-process Services jobs in the period; a single Service Request can result in multiple monetized transactions.
Current wording
•Monetized Transactions- are (i) Service Requests that are matched to a paying Ads and Leads professional in the period and (ii) completed and in-process Services jobs in the period; a single Service Request can result in multiple monetized transactions.
Previous wording
•Transacting Service Professionals ("Transacting SPs") - are the number of (i) Ads and Leads service professionals that paid for consumer matches or advertising and (ii) Services service professionals that performed a Services job, during the most recent quarter.
Current wording
•Transacting Professionals ("Transacting Pros" formerly known as Transacting Service Professionals or "Transacting SPs") - are the number of (i) Ads and Leads professionals that paid for consumer matches or advertising and (ii) Services professionals that performed a Services job, during the most recent quarter.
Previous wording
•Selling and marketing expense -consists primarily of advertising expenditures, which include online marketing expenditures, including fees paid to search engines, social media sites, other online marketing platforms, app platforms and partner-related payments to those who direct traffic to the brands within our Angi Inc. segment, offline marketing expenditures, which primarily consists of costs related to television advertising, compensation expense (including stock-based compensation expense) and other employee-related costs for sales force and marketing personnel, subscription acquisition costs related to Dotdash Meredith, outsourced personnel and consulting costs and service guarantee expense at Angi Inc.
Current wording
•Selling and marketing expense -consists primarily of advertising expenditures, which include online marketing expenditures, including fees paid to search engines, social media sites, other online marketing platforms, app platforms and partner-related payments to those who direct traffic to the brands within our Angi segment, offline marketing expenditures, which primarily consists of costs related to television advertising, compensation expense (including stock-based compensation expense) and other employee-related costs for sales force and marketing personnel, subscription acquisition costs related to Dotdash Meredith, outsourced personnel and consulting costs and service guarantee expense at Angi.
Previous wording
•General and administrative expense -consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in executive management, finance, legal, tax, human resources and customer service functions, rent expense and facilities cost (including impairments of right-of-use assets or "ROU assets"), fees for professional services, provision for credit losses and software license and maintenance costs. The customer service function at Angi Inc. and Care.com includes personnel who provide support to its service professionals and caregivers, respectively, and consumers.
Current wording
•General and administrative expense -consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in executive management, finance, legal, tax, human resources and customer service functions, rent expense and facilities cost (including impairments of right-of-use assets or "ROU assets"), fees for professional services, provision for credit losses and software license and maintenance costs. The customer service function at Angi and Care.com includes personnel who provide support to its professionals and caregivers, respectively, and consumers.
Previous 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.
Current wording
•Dotdash Meredith Term Loan A - due December 1, 2026. At September 30, 2024 and December 31, 2023, the outstanding balance of the Dotdash Meredith Term Loan A was $301.9 million and $315.0 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.
Previous wording
•Dotdash Meredith Term Loan B - due December 1, 2028. At June 30, 2024 and December 31, 2023, the outstanding balance of the Dotdash Meredith Term Loan B was $1.22 billion and $1.23 billion, respectively, and bore interest at Adjusted Term SOFR, subject to a minimum of 0.50%, plus 4.00%, or 9.43% and 9.44%, respectively. The Dotdash Meredith Term Loan B has quarterly principal payments.
Current wording
•Dotdash Meredith Term Loan B - due December 1, 2028. At September 30, 2024 and December 31, 2023, the outstanding balance of the Dotdash Meredith Term Loan B was $1.22 billion and $1.23 billion, respectively, and bore interest at Adjusted Term SOFR, subject to a minimum of 0.50%, plus 4.00%, or 9.30% and 9.44%, respectively. The Dotdash Meredith Term Loan B has quarterly principal payments.
Previous wording
•ANGI Group Senior Notes - on August 20, 2020, ANGI Group, LLC ("ANGI Group"), a direct wholly-owned subsidiary of Angi Inc., issued $500 million of its 3.875% Senior Notes due August 15, 2028, with interest payable February 15 and August 15 of each year.
Current wording
•ANGI Group Senior Notes - on August 20, 2020, ANGI Group, LLC ("ANGI Group"), a direct wholly-owned subsidiary of Angi, issued $500 million of its 3.875% Senior Notes due August 15, 2028, with interest payable February 15 and August 15 of each year.
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 (loss) earnings attributable to IAC shareholders to operating loss to Adjusted EBITDA for the three and six months ended June 30, 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 attributable to IAC shareholders to operating income (loss) to Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023.
Previous wording
The Company and Google are parties to an amended Services Agreement, which automatically renewed effective March 31, 2023 and now expires on March 31, 2025. Google has made changes to the policies under the Services Agreement and has also made industry-wide changes that have in the past and could in the future require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which have been and could be costly to address or negatively impact revenue and have had and in the future could have an adverse effect on our financial condition and results of operations.
Current wording
The Company and Google are parties to an amended Services Agreement, which automatically renewed effective March 31, 2023 and expires on March 31, 2025. Google has made changes to the policies under the Services Agreement and has also made industry-wide changes that have in the past (and could in the future) require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which have negatively impacted revenue and been costly to address (and could in the future), which have had and could have an adverse effect on our business, financial condition and results of operations.
Previous 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
Current wording
Results of Operations for the Three and Nine Months Ended September 30, 2024 Compared to the Three and Nine Months Ended September 30, 2023
Previous wording
◦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 wording
◦The Digital increase was due primarily to increases of $34.4 million, or 26%, in Advertising Revenue and $4.1 million, or 17%, in Licensing and Other Revenue, partially offset by a decrease of $4.1 million, or 7%, 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, Pharmaceuticals and Retail categories, as well as higher programmatic revenue as a result of an increase in programmatic rates and a 14% increase in Core Sessions. The increase in Licensing and Other Revenue was due primarily to the addition of the OpenAI partnership, which began in May 2024 and improved performance in the case of content syndication partners including Apple News+. The decrease in Performance Marketing Revenue was due primarily to declines primarily in the Finance category, partially offset by affiliate commerce commission revenue growth.
Previous 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.
Current wording
◦The Print decrease was due primarily to decreases of $6.0 million, or 11%, in advertising revenue, $5.0 million, or 6%, in subscription revenue and $4.0 million, or 13%, in newsstand revenue. The decreases in advertising revenue, subscription revenue and newsstand 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 of audience from print to digital format and platforms.
Previous 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.
Current wording
◦The Ads and Leads decrease was due primarily to decreases of $51.7 million, or 25%, in consumer connection revenue and $2.7 million, or 21%, in membership subscription revenue, partially offset by an increase of $3.7 million, or 5%, 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 professionals. The decrease in membership subscription revenue was due primarily to a decrease in professionals in the Angi network. The increase in advertising revenue was primarily due to an increase in advertising sold through Angi's sales force.
Previous wording
◦The Services decrease was due primarily to lower Service Requests as a result of certain efforts described in Ads and Leads above.
Current wording
◦The Services decrease was due primarily to a lower amount of Service Requests as a result of certain efforts described in Ads and Leads above.
Previous wording
◦The International increase was driven by a larger service professional network and higher revenue per service professional.
Current wording
◦The International increase was driven by a larger professional network and higher revenue per professional.
Previous 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.
Current wording
•Search revenue decreased 47% to $88.3 million due to a decrease of $74.8 million, or 51%, from Ask Media Group, resulting from a reduction in marketing from affiliate partners that drove fewer visitors to our ad supported search and content websites.
Previous wording
•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 wording
•Emerging & Other revenue decreased 36% to $114.3 million due primarily to the inclusion in the prior year period of $38.7 million in revenue from Mosaic Group, the assets of which were sold on February 15, 2024, and $21.4 million in revenue from Roofing, which was sold on November 1, 2023, and a decrease in revenue of $5.8 million from Care.com.
Previous wording
•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 wording
•Dotdash Meredith revenue increased 3% to $1.3 billion due to an increase of $85.0 million, or 14%, from Digital, partially offset by a decrease of $49.0 million, or 8%, from Print.
Previous 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.
Current wording
◦The Digital increase was due primarily to increases of $76.6 million, or 20%, in Advertising Revenue and $11.0 million, or 15%, in Licensing and Other Revenue, partially offset by a decrease of $2.6 million, or 2%, 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, as well as higher programmatic revenue as a result of an increase in programmatic rates and an 10% increase in Core Sessions. The increase in Licensing and Other Revenue was due primarily to factors described above in the three-month discussion. The decrease in Performance Marketing Revenue was due primarily to a decrease in Performance Marketing revenue in the Finance and Food and Beverage categories, partially offset by affiliate commerce commission revenue growth.
Previous wording
◦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 wording
◦The Ads and Leads decrease was due primarily to decreases of $145.5 million, or 23%, in consumer connection revenue and $6.1 million, or 15%, in membership subscription revenue, partially offset by an increase of $21.9 million, or 10%, in advertising revenue. The decreases in consumer connection revenue and membership subscription revenue and the increase in advertising revenue were due primarily to thefactors described above in the three-month discussion.
Previous 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.
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 modified the Services terms and conditions resulting in net revenue reporting.
Previous wording
•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 wording
•Search revenue decreased 40% to $298.5 million due to a decrease of $190.3 million, or 44%, from Ask Media Group due primarily to thefactor described above in the three-month discussion.
Previous 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.
Current wording
•Emerging & Other revenue decreased 36% to $348.4 million due primarily to a decrease of $100.3 million in revenue ($17.8 million in 2024 compared to$118.2 million in 2023) from Mosaic Group, the assets of which were sold on February 15, 2024, the inclusion of $84.3 million in revenue from Roofing in the prior year period, which was sold on November 1, 2023, and a decrease of $7.8 million in revenue from Care.com.
Previous wording
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 wording
Cost of revenue in 2024 decreased from 2023 due primarily to decreases of $56.0 million from Search and $32.3 million from Emerging & Other.
Previous 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.
Current wording
•The Search decrease was due primarily to a decrease in traffic acquisition costs of $54.0 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 $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.
Current wording
•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $15.1 million in expense from Roofing, which was sold on November 1, 2023, a decrease in expense of $10.7 million from Mosaic Group, the assets of which were sold 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 primarily to decreases of $71.7 million from Search, $64.4 million from Emerging & Other and $15.5 million from Dotdash Meredith.
Current wording
Cost of revenue in 2024 decreased from 2023 due primarily to decreases of $127.6 million from Search, $96.7 million from Emerging & Other and $12.8 million from Dotdash Meredith.
Previous wording
•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 wording
•The Search decrease was due primarily to a decrease in traffic acquisition costs of $125.4 million at Ask Media Group due primarily to thefactor described above in the three-month discussion.
Previous wording
•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 wording
•The Dotdash Meredith decrease was due primarily to a decrease of $30.5 million from Print, partially offset by an increase of $17.7 million from Digital.
Previous 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.
Current wording
◦The Print decrease was due primarily to a decrease of $38.5 million in production and distribution costs (postage, printing, paper and content) resulting from a planned reduction in printed copies of certain publications and decreases in paper costs and freight surcharges, partially offset by an increase of $6.4 million in third-party costs in connection with certain project-related revenue, including audience targeted advertising.
Previous wording
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 wording
Selling and marketing expense in 2024 decreased from 2023 due to decreasesof$44.7 million from Angi,$25.3 million from Emerging & Other and $12.6 million from Search, partially offset by an increase of $10.9 million from Dotdash Meredith.
Previous 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.
Current wording
•The Angi decrease was due primarily to a decrease of $46.4 million from Ads and Leads which was primarily the result of decreases of $40.1 million and $6.9 million in advertising expense and compensation expense, respectively. The decrease in advertising expense was due primarily to improved marketing efficiencies including optimizations to matching and online bidding that resulted in increased Monetized Transactions per Service Request as well as a decrease in offline media spend. 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 $16.4 million in online marketing spend at Ask Media Group.
Current wording
•The Search decrease was due primarily to a decrease of $11.2 million in online marketing spend at Ask Media Group.
Showing the first 40 of 92 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
◦The Print decrease was due primarily to decreases of $23.7 million, or 15%, in advertising revenue, $13.0 million, or 15%, in newsstand revenue and $12.6 million, or 5%, in subscription revenue. The decreases in advertising revenue, newsstand revenue and subscription revenue are all due to the factors described above in the three-month discussion.
Current report — wording carried from elsewhere
◦The Services decrease was due primarily to decreases of $2.7 million in compensation expense and $1.3 million in third-party wages. The decrease in compensation expense was due primarily to a reduction in headcount. The decrease in third-party wages was due primarily to reduced costs related to customer support services.
Current report — wording carried from elsewhere
At September 30, 2024, the Company's consolidated cash, cash equivalents and marketable securities, excluding MGM, were $1.7 billion, of which $395.2 million and $264.0 million was held by Angi and Dotdash Meredith, respectively. The Company's consolidated debt includes approximately $1.5 billion, which is the liability of Dotdash Meredith Inc., and $500.0 million, which is the liability of ANGI Group, a subsidiary of Angi.
Current report — wording carried from elsewhere
Angi is an independent public company with its own public shareholders and board of directors and has no obligation to provide the Company with funds. As a result, the Company cannot freely access the cash of Angi and its subsidiaries.
Rearranged previous paragraphs (8)
Previous report — wording carried 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.
Previous report — wording carried elsewhere
•The Search decrease was due primarily to a decrease of $29.8 million in online marketing spend at Ask Media Group.
Previous report — wording carried elsewhere
◦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 report — wording carried elsewhere
Product development expense in 2024 decreased from 2023 due primarily to a decrease of $7.3 million from Emerging & Other.
Previous report — wording carried elsewhere
◦The Other (unallocated corporate costs) Adjusted EBITDA loss decrease was due primarily to a decrease in legal-related expenses of $2.3 million.
Previous report — wording carried elsewhere
◦The International Adjusted EBITDA increase was due primarily to the factor described above in the three-month discussion.
Previous report — wording carried elsewhere
In 2024, the effective income tax rate is lower than the statutory rate of 21% due primarily to nondeductible compensation expense, partially offset by research credits and state taxes.
Previous report — wording carried elsewhere
On August 2, 2024, the Angi Inc. board of directors approved a new stock repurchase authorization of 25 million shares.