IAC Inc. (IAC): history, ownership, mission, how it works & makes money

A Brief History of IAC Inc.

IAC Inc. (IAC) has undergone significant transformations since its inception. As of 2024, IAC operates as a diversified holding company with interests in various segments including digital media, home services, and online marketing.

Company Overview

Founded in 1995, IAC has evolved through numerous acquisitions and divestitures, positioning itself as a leader in the digital economy. The company is publicly traded on the NASDAQ under the ticker symbol IAC.

Financial Performance

For the second quarter ending June 30, 2024, IAC reported total revenue of $949.5 million, which reflects a decrease of 15% compared to the same period in 2023, when revenue was $1.1 billion. The decline was attributed to decreases in various segments, particularly in Angi Inc. and Dotdash Meredith.

Segment Performance

The company’s two main segments, Dotdash Meredith and Angi Inc., showed varied performance in the first half of 2024.

Debt and Cash Position

As of June 30, 2024, IAC had total outstanding debt of $2.03 billion. This includes $1.53 billion from Dotdash Meredith Term Loans and $500 million in senior notes from Angi Inc. The company maintained cash and cash equivalents of $1.60 billion, a notable increase from $1.30 billion at the end of 2023.

Stock Performance

IAC's stock has experienced fluctuations in 2024, with a reported loss per share of $1.71 for Q2, compared to a loss of $1.07 in Q2 2023. The company has engaged in share repurchase activities, with approximately 3.7 million shares remaining under its repurchase authorization as of August 2024.

Market Trends and Challenges

The digital media landscape is rapidly evolving, with increasing competition and changing consumer behaviors impacting revenue streams. IAC's focus on enhancing its digital offerings and optimizing its operational efficiencies remains crucial in navigating these challenges.

Recent Developments

In 2024, IAC announced strategic partnerships, including collaborations with content syndication partners such as Apple News + and OpenAI, to bolster its digital revenue streams.

The company continues to adapt its business model to meet the demands of the digital marketplace while striving to maintain profitability amidst a challenging economic environment.

A Who Owns IAC Inc. (IAC)

Ownership Structure

As of 2024, IAC Inc. (IAC) has a diverse ownership structure composed of institutional investors, individual shareholders, and company insiders. The ownership distribution is as follows:

Major Shareholders

The following table outlines the major shareholders of IAC as of June 30, 2024:

Insider Ownership

Insider ownership remains significant, with key executives holding a notable portion of shares. The following table provides details on insider ownership:

Recent Stock Performance

IAC's stock performance has undergone fluctuations throughout 2024. As of June 30, 2024, the stock price is approximately $51.00, with a market capitalization of around $4.2 billion. The stock has experienced a year-to-date decline of about 15%.

Investments and Asset Holdings

IAC holds significant investments in various subsidiaries and public companies:

Financial Overview

For the six months ended June 30, 2024, IAC reported:

• Revenue: $1.88 billion
• Net Loss: $(96.5) million
• Cash and Cash Equivalents: $1.7 billion
• Debt: $1.5 billion

The company's operational segments include Dotdash Meredith, Angi, and Search, contributing to its diversified business model. IAC continues to focus on strategic investments and optimizing its portfolio for future growth.

IAC Inc. (IAC) Mission Statement

IAC Inc. (IAC) is committed to empowering individuals to live their best lives through technology and innovation. The company focuses on leveraging advanced digital solutions to enhance user experiences across its diverse portfolio of brands.

Core Values

• Innovation: IAC strives to lead in innovation by continuously improving its products and services.
• Integrity: The company emphasizes ethical practices and transparency in its operations.
• Customer Focus: IAC prioritizes customer satisfaction and aims to meet the evolving needs of its users.
• Diversity and Inclusion: IAC is dedicated to fostering a diverse workforce and an inclusive environment.

Financial Overview

As of June 30, 2024, IAC reported significant financial metrics that reflect its operational strategies and market position:

Strategic Initiatives

IAC's strategy includes diversifying its portfolio through acquisitions and investments in technology-driven companies. The company aims to enhance its market share in the digital sector while optimizing operational efficiencies.

Recent Developments

In 2024, IAC has engaged in various initiatives aimed at strengthening its core business areas:

• Acquisition of new digital platforms to expand service offerings.
• Investment in marketing technologies to enhance customer engagement.
• Focus on sustainability and corporate social responsibility initiatives.

Market Position

IAC operates in a competitive landscape, focusing on sectors such as online services, media, and e-commerce. Its commitment to innovation and customer-centric solutions positions it favorably within the industry.

Conclusion

As of 2024, IAC Inc. continues to uphold its mission of leveraging technology to improve lives, while navigating the complexities of the digital market landscape.

How IAC Inc. (IAC) Works

Business Structure and Segments

IAC Inc. operates through a diversified portfolio of businesses primarily in the digital media and services sectors. As of 2024, its reportable segments include:

• Dotdash Meredith (Digital and Print)
• Angi Inc. (Ads and Leads, Services, and International)
• Search
• Emerging & Other

Financial Performance

For the second quarter of 2024, IAC reported total revenue of $949.5 million, down from $1.1 billion in the same quarter of 2023. The breakdown by segment is as follows:

Operating Costs and Expenses

The company recorded total operating costs of $961.5 million in Q2 2024, compared to $1.17 billion in Q2 2023. The costs are detailed as follows:

Earnings and Losses

IAC reported a net loss of $141.5 million for Q2 2024, compared to a net loss of $91.6 million in Q2 2023. The earnings per share (EPS) details are:

Cash Flow and Liquidity

For the six months ended June 30, 2024, IAC generated positive cash flows from operating activities of $149.1 million. The breakdown of cash flow sources includes:

Tax Position

IAC recorded an income tax benefit of $34.6 million for Q2 2024, resulting in an effective tax rate of 20%. The company has unrecognized tax benefits of $22 million as of June 30, 2024.

How IAC Inc. (IAC) Makes Money

Revenue Streams Overview

IAC Inc. generates revenue through several key segments: Dotdash Meredith, Angi Inc., Search, and Emerging & Other. As of the second quarter of 2024, total revenue was reported at $949.5 million, a decrease from $1.1 billion in the same quarter of 2023.

Dotdash Meredith

Dotdash Meredith, a key component of IAC's portfolio, focuses on digital and print media. In Q2 2024, Dotdash Meredith's digital revenue increased by $50.6 million, or 13%, to $815.7 million, primarily driven by a rise in advertising revenue and higher programmatic rates. However, print revenue declined by $36.2 million, or 9%, due to ongoing migration from print to digital.

Angi Inc.

Angi Inc. reported revenue of $315.1 million in Q2 2024, down 10% from the previous year. The decrease was mainly due to a $35.2 million drop in Ads and Leads and a $5.3 million decline in Services. International revenue, however, increased by $4.0 million, or 14%, indicating growth in international markets.

Search Segment

The Search segment experienced a significant revenue decline of 43% to $101.8 million, primarily due to a drop in marketing from affiliate partners which reduced traffic to ad-supported search and content websites.

Emerging & Other Revenue

This segment encompasses various businesses that do not meet the thresholds for separate reporting. Revenue in this category decreased by 38% to $107.5 million, largely due to the absence of $39 million from the Mosaic Group, which was sold in early 2024.

Cost Structure and Adjusted EBITDA

IAC's cost of revenue for Q2 2024 was $267.5 million, with total operating costs amounting to $961.5 million. The company reported an operating loss of $12 million. Adjusted EBITDA for the same quarter was $87.3 million, reflecting an increase from $70.2 million in Q2 2023.

Investment and Cash Flow

IAC reported net cash provided by operating activities of $149.1 million for the first half of 2024, compared to $128.3 million for the same period in 2023. Investing activities showed a significant cash inflow of $218.6 million, primarily from the sale of marketable securities and assets.

Market Trends and Strategic Positioning

IAC is actively leveraging its digital platforms to capture advertising revenue, particularly through programmatic channels. The company continues to face challenges in the print segment, which is experiencing a decline as audiences shift to digital formats. The focus on international revenue growth at Angi Inc. shows potential for expanding market share despite domestic challenges.