IAC Q4 2024 Earnings Report

Key Takeaways

IAC reported Q4 2024 revenue of $989.3 million, a 6% decline year-over-year. The company posted an operating income of $50.6 million and a net loss of $199.0 million, primarily due to a $287.4 million unrealized loss on its MGM Resorts investment. Adjusted EBITDA was $142.0 million, down 9% from Q4 2023. Dotdash Meredith continued to drive digital revenue growth, while Angi Inc. saw a decline in performance. Free cash flow for the full year increased significantly to $289 million.

Total Revenue

$989M

Previous year: $1.06B

-6.5%

EPS

-$2.39

Previous year: $3.7

-164.6%

Operating Margin

5.12%

Previous year: -3.5%

-246.3%

Adjusted EBITDA

$142M

Previous year: $157M

-9.4%

Free Cash Flow

$289M

Previous year: $48.2M

+499.6%

Cash and Equivalents

$1.8B

Previous year: $1.45B

+24.3%

Free Cash Flow

$289M

Previous year: $32.1M

+800.9%

Total Assets

$9.55B

Previous year: $10.4B

-7.9%

IAC Revenue

IAC EPS

IAC Revenue by Segment

Forward Guidance

IAC expects mixed performance in FY 2025, with continued digital growth at Dotdash Meredith but ongoing challenges in other segments. The company plans to complete the Angi Inc. spin-off in the first half of 2025.

Positive Outlook

Dotdash Meredith digital revenue expected to grow 10% in FY 2025.
IAC Board approved plan to spin off Angi Inc., improving focus.
Improved financial flexibility after Dotdash Meredith loan repricing.
Free cash flow increased significantly in FY 2024.
Cost reductions and operational efficiencies being implemented.

Challenges Ahead

Angi Inc. revenue expected to decline in Q1 2025 before improving.
Search segment revenue down significantly year-over-year.
Emerging & Other revenue expected to decline further in FY 2025.
Ongoing legal and restructuring costs impacting profitability.
CEO transition and leadership changes may create uncertainty.