IAC InterActive (IAC) 12 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Christopher Halpin	executive
Joseph Levin	executive
Cory Carpenter	analyst
John Blackledge	analyst
Eric Sheridan	analyst
Jason Helfstein	analyst
James Heaney	analyst
Ross Sandler	analyst
Justin Patterson	analyst
Youssef Squali	analyst
Thomas Champion	analyst

Call transcript

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Operator

Welcome to the IAC and Angi Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]

Please note today's event is being recorded. I would now like to turn the conference over to Christopher Halpin, Executive Vice President, CFO and COO of IAC. Please go ahead.

Christopher Halpin

you. Thank everyone. morning, Good and the here, Inc. and welcome Halpin IAC to Angi Christopher Quarter Call. Fourth Earnings

today their Senior and currently Chairman Investor Joining of Barry quarterly which of are me Diller, are to Supplemental each respective Levin, and Kipp, sections our of Relations published Angi Inc.; letters Inc. IAC releases, Executive the CEO IAC have Angi available and IAC websites. on of earnings Jeff of CEO Angi Joey Chairman and shareholder

letters to shareholder turn followed the this few reading call. to shortly be not will remarks will on the Barry I We introductory Q&A. by and make over call then Joey a

the like presentation, statements forward-looking securities include we our to certain and laws. statements are make may Before and outlook, our on to related based performance you current under us. that information that future to expectations we that, strategy on federal may are available during and this I'd These statements get to forward-looking remind currently differ Form uncertainties, Actual and the or on our the SEC. to annual risks outcomes of quarterly and results most in a reports number recent file in on statements most materially from in we our XX-Q, these implied report with report future those due XX-K contained expressed including and Form results the subsequent recent may that considered

and of comparable reconciliations respective measures public letters, IAC the Investor websites for material Relations a refer measures refer for as I'll full filings considered of will such light section as earnings and which, EBITDA should our you releases, include risks. the which our in with and provided discuss all measures. the information SEC simplicity the to be shareholder The non-GAAP also certain our again, this call. today for conference non-GAAP GAAP all call on adjusted to We'll during we Angi reminder, EBITDA, to

Diller. And now Executive and it Barry Senior over I our Chairman, turn will to

Unknown Executive

do but think and executive, And will on another talk you very than I calls, definitely years. more with not haven't Yes, little Thank you, I two the really to to it's am this About businesses, couple me I of nice really X morning. a the years of principal you happened is senior XX want these company what's to wait Chris. review I been Dotdash of what this do But wanted hopefully, in XX I to one our it that last of realized we, troubled. were years before -- our again. over Angi and years. course, ago,

to at taken what $XXX Angi, Here's million about had year of prior which EBITDA troubles were. the the We down $XX million.

up Meredith, Our thought years actually, felt the CapEx plot from to ago, initial businesses. were million. [ $XXX we a went we ago, we we plot particular I years Dotdash to do was principal year, So XXX. two crisis. after did million XXX really in Joey shot in would ] our $XXX X as the had Levin and fix that acquisition X.X down EBITDA, these that On to for the And colleagues

get time hit at had we take and want of these We thought do the not either things to maybe and did it really to year amount we ground X back to X So businesses knew either we We essentially spend the certainly we performing. do extended that would to important. had areas everything. other the work as weren't stopped that that into to

be need it froze those track to where we so everything businesses on attending getting X than And back they basically them and a other

we last from of it the couple I the at clarifies doing some in has where At in is, company and Angi in be you are course, of where view, least, will this point my been of future. what I and think -- to because now we do all know, but I these this, put want really think of context years it

First did IAC. was the kind Levin, CEO replaced that of with of who of also, was Joey Angi is time, we he CEO thing the we obviously, at

said, of near of take revenue IAC, areas a all okay, on which fixing got reduced immediately margin quality Angi. capital other low We concentrate level. at the expenditures we'll the we we and low revenue, you the rid -- but and our But anything stopped that

XXX is said went or about correctly think on recall from I if back -- happened course, I XX. profit flow And went and the to earlier, positive track. the that, I we to correctly of , cash what a

had all running these Kip, be well. essence, CEO. fix are the we entities, to had really businesses And to international the at and been the product. product they We Jeff the also like He appointed Angi, companies,

get were All to where in that Angi plans for train business last it of the the And were -- self-inflicted, of been et couple ideas from were has of that was of well executed which, were good things all. grandiose lot back some at from to it ourselves, them can these them back, happened as is the some now while you work into not cetera, is services years. A see figures, of Angi

revenue have And now thing where it perform. think, built now And it next year, its kind and took in hopefully, of Joey to, real studs see Jeff so the growth. went can back you'll down and I then and up

X%. we the -- arc that's the Meredith, traffic about Angi. up They're think On I of Dotdash declines. reversed traffic is up So

it, of and as know, about talk good tough can integration when down you and With and it was get people a at all a talk game game. else. all But [Audio properties, to able a when how for synergies which be the integration, we that, slog years plan they to you it's was a Gap] gain Dotdash properties, had difficult we than value advertising service as anyone a thought greater right X.X very

I'll just one, well. you -- don't I stats very Angi's just do And give

X%, I'm Difficulty] just QX going revenue down 'XX. I down So to is of stark. [indiscernible], X, consecutive which [Technical growth a the very This read XX%. this you digital X quarters, found is

Operator

Mr. audio, like lost have your Diller, looks we sir. It

Joseph Levin

consistent is Barry, we can things we're going up get can Well, previous remarks, I audio pick hear hopefully, you where that say, the news the And it? will very I with left off. that he the there. some was to back of on hopefully, so good

Thank these Chris. you, of thank to Thank in First you Jeff in you my for was call. Barry. looked to this of I all, and of on QX first everybody X being XXXX. calls

think, these for my of doing years, is, those been calls, calls X BD. was I've only XXth and actually So but with this these of ever I XX X

we both the at we've outgrowing almost in for there. enough And the really Angi business in to -- quarter delivering now, And I off as as think everybody fully band and last well QX, progress to Angi. true [indiscernible] line And treat this and strong. be current at if I year product a a so entire Barry addressing offense. we've us on to experience, X now. all is Jeff So can back economics, excited in nearly Dotdash had the just I there's soon rip of on team good are or that. get at And finished we I incredibly to we last experience incredibly that's $XXX back and are -- and to $XXX off or the a now get year-on-year the are are million real very ICE's this right able for rip that such And increase and of back that's Angi customer be had We I And year that at news think terms growth market. Angi and is a do. what where is Chris as next discussed. means of businesses, offense. OpEx and the to said to had nailing flow we're looking And the we've the we're again. the and million to place this And it well, the enough we CapEx, can behind really them that's IC especially quarter be. excited able were in We quarter right and be. Jeff XXXX that and momentum excited to is the businesses. just the aid. great to incredibly And start with on unit as building Angi for Angi the flow Angi. Dotdash cash and that about IC almost want cash cost for And and

unless So second let's connect the or next go we questions. to so, to Barry in

Operator

Diller on back Yes, do yet. not sir. have sorry, Mr. I

Unknown Executive

Okay.

queue, go operator, the first question to and question. the Let's take

Operator

first with Carpenter Cory today [Operator Our Instructions] comes from question JPMorgan.

Cory Carpenter

steps giving to with for expectations? in and And despite you I I below you. Jeff, any one guide the the on you had spin? think, moving talk Angi in you, each the your XQ Could is Joe, motivations the improving I year for could Maybe for trends prior Chris, see Angi. Angi. next spin what's start cash you if in just take through planning I talk to the with from process confidence about of coming from your through

Joseph Levin

Thanks, I'll start. Sure. Cory.

behind finally is the in asymmetrical your I a those no big me, decided revenue. you both I'm out But freedom in us. get and some product point that a to I a there that -- time it's changes letter believe is focus process overlap on to the in and mirror on for And And really a upside, XX excited means I the about and side, personal in stuff. to that I question, all course, do, own sizable and personal in fun Angi think thing believe. with incredibly -- to business, the chunks And and building Jeff a do where that of of We've on that a we how element there's I'm rearview January talked most to it's as answer I things. But And I now things. really, but sit lot start -- comes mistakes especially still fun us a excited the -- done and optimize the the of we've think pains professional of the it. And you with side, to building life and with think now some the challenging think this hard I know me, for it and again. is, of say most proud front rip now, makes now before, been. of pulled on hard news just has I of it. know professional it the is I about started to we out

Christopher Halpin

just we'll We'll companies. the continue also filed the as January XX. SEC Thanks, spin the with declared on Cory. it's additional agreements to make take Once necessary. questions. the between statement separation registration I'll process effective, We finalize filings

Angi And XX, March with the through we make any on and We now a seamless be and [indiscernible] plan successful certain tax stand-alone details. goal to continue operational a to to regarding legal but said, day, is we transition considerations work the the in as on the are of along we're very for focused closing right in customary is public sheet, At -- not XXX company. on for balance process current Angi dividends. to end

$XXX its spin we priced with cash of and Jeff. that, attractively million of With Angie bonds. So balance current pass to would $XXX I'll million

Unknown Executive

Thanks, Chris.

outlook, So throw I'll QX on question as your in well. and little XXXX and Cory, a I'll XXXX the probably take

will [indiscernible] we months order world and the assume on -- XX. below order Our we accelerated weeks order the little orders get At clearly be known Not effective we've ahead order would customers FCC of We've implemented but with our the time, estimated ready is framed and and path. because a consistent couple best business the the a moving because consumer That's would take. only what also towards the ago. long implementation know FCC outlook and we thing January about term. the been our steady by X for it's this we we FCC choice just fully of of the QX really

choose they when been lead letter, Homeowner we has an than more double Pros for pro improved better they're is often when -- the the in experience the a experience chosen win As the while. the digits evidence and MPS auto when they're automated. matched, they're XX% than when noted

customers, and marketplace is And this we're analysis the made at experience So thing improvement confirmed January change. sticking change this and [indiscernible] to the in only has said all positive we've from with market since the -- our very change, and On last gotten prior feedback still the the making. we've we've in of vacated we, the FCC are going dynamics we looked observed we the right at our rule conviction the and that data, however, the We're ahead. 'XX, change. clearly

in not quarter. long in short-term term, impact -- experience. creating our is ourselves marketplace first positioned we is very disruption with this on market the consider some customer an better significantly well the competition and Our But competitively a

adjusting we're in us given going high real forward, number XXXX. a back the XXXX there's build marketplace factors to obviously So the in but of time the that growth or shift, confidence changes to through give regulatory and

The quarter for the end quarter and we toughest to year. of non-choice sunsetting have our few first year proprietary basis at don't got a is We're channels that last we our of comp points first the rid revenue hundred of the in [indiscernible].

through year. data efficiency, monetization behind a builds will impacting Secondly, matching profit have we the clear and build number that of product revenue marketing we have we add and that as

on call half monetized by to the return Pro the we our year steadily as Thirdly, the our year of SR in channels in to legacy fully letter lead ads in our pricing XXXX. referenced revenue growth this be last expect the and growing per going to second proprietary we to sunset product structures. in single growth is initiative Fourthly, transaction

are is XX% unbranded today single only our of unbranded is growing today. SRs traffic. SEM SEO down Angi.com organic and Our digits

through And so continue the and we building expect growth reach in XXXX. to year

down together SRs significant we're the flat the doing year, But growth. in of be our going the you XXXX, take because step it third-party are a it On expect in to beginning we flip side, X to and give the at XXXX.

retention pro we experience expect on and a both marketplace. the repeat the the of of of impact sides homeowner choice because homeowner increased Finally, on

able low So net the ago and across got But down a much percent months return going long versus we're deliver take to customer XXXX. XXs little confidence of we've a improvement QX quality in be we're is And competitive very we to in confidence able and revenue the going year-over-year. a over the year more be the even position down growth experience said the to have to few what in to and term. in

that think deliver this value strong we to our years. at to shareholders of So a our next customers, is couple value to

Operator

John with Our QTD next question comes from Cowen. Blacklode

John Blackledge

for the good Joey, questions with Two Chris. And luck move.

capital XQ flow. then think the as moving and given of First, allocation? and should then be 'XX could you And at and sheet Executive DDM Chairman, revenue about Angi question free talk balance How kind 'XX and DDM think transition would the And walk revenue and upcoming EBITDA we should about ramping EBITDA. and the guide? with cash fiscal for we drivers XQ of the puts the of spin And second Joey through management about strong maybe Angi over kind takes how IAC? IAC's to

Christopher Halpin

Yes. Thank John. you,

landscape as to optimistic of food the up likes sorted. both saw was is that. was DDM on to in our Thanksgiving and cautiously on excellent all up some talked was us, less holiday celebrity with political our November starting news were consumer time December spend lack and at notably for at Traffic we're [indiscernible] the traffic for a advertiser we category. the Bowl robust people sites how last the most ramp home say, momentum Super the and in mainly slower, recipes. due call, entertainment sluggish and earnings headed to through So traffic back we after would election. about both We U.S. And

the strongly in a marketing, digital performance. A digital X and sessions result grow the finally, revenue advertising blended saw which great and front, its couple quarter our consumer was the Apple to AI by range premium back above see then real sluggish our it we X% of all we retail and by for DDM's growth highlights that for lines sales in area were into industry-leading we growth It ability forecasting. e-commerce quarters XX% many quarter, mid-November. Together, these after this led bright posted third licensing partnerships. advertising the convert performance to growth come and XX%, advertisers grew led into strong markets a of growth. interest Net was And Open News exceptional the X% revenue continued spot partners. On programmatic core

growth quarter QX last into shifts this more first in Easter, we Looking we're and revenue growth challenging aggregate, a holiday there's X key year. QX areas which from with positioned. factors as all view February X leap strongly and expecting year those growth single for single-digit A to the to digital to In few It's growth digits. revenue is for in XX% plus contribute high the day XXXX, year. January and due year in digital healthy high less a lower slightly QX. comps

second The the in sets Easter up with easier comps benefit. quarter stronger conversely

On advertising targeting launch year the performance third-party expecting we'd it solidly year. select to headcount Plus front, to structure of growth. by and as traffic incremental the should where to resources. we testing for Decipher quarter, also We're cost continues seeing proprietary mid-single-digit shown due its marketing inventory and the we're quarter mid-single-digit will and we'll manage technology. DDM grow reallocate -- advertisers the up throughout with the generate this And monetization fourth from year. scale thoughtfully reductions be revenue severance licensing selling digital our using the then both for this We'll growth in third be the

of million have incremental and in release, a to $XXX then EBITDA For as the revenue -- gain will one I it of hand EBITDA. million the EBITDA, total note, Barry, you over significant $XXX accounting total One we of noted margins, $XXX second. in to XX% to million year, we're lead digital forecasting Print segment, XX% guide with declines which revenue XX% our plus digital combined growth our

in approximately lease million quarter We highly $XX XXXX buyout. with associated a have favorable of a first significant of the gain

it about how question guidance the the you. EBITDA I'll balance We allocation of to got context excludes just adjusted capital in strong turn Barry, this sheet. that changes Our over gain. and our

Unknown Attendee

you'll right. you been is I've -- hear did very all All This my to for me because -- odd remarks? have opening

Joseph Levin

through We quarterly where lost got remarks of in due opening going of Angi sort were through starting when the the lost and up very growth we of your DDM we you. then that's DDM beginning you rates

Unknown Attendee

about I technology, for in? XX many went and [indiscernible] minutes then Nice. on Well, minutes Because [indiscernible] Yes. so about how

Christopher Halpin

that, the get key and to thoughts through to and we be allocation that's... and pivot think talk section because to would the on M&A I buyback capital didn't

Unknown Attendee

because all we're This -- room. is in same not the

the Angi turnaround I did So of and this easiest. cover ain't Dotdash? the But

Joseph Levin

through most and not yes, entirely. Angi got Dotdash, of Yes,

Unknown Attendee

And [indiscernible] did I talk about

Joseph Levin

But we didn't get spin. Angi

Unknown Attendee

right. All

sorry, me I'm there just Let kind of technology depend in pick then. moment, up everybody, a but sales upon you it.

whether So period. heard which is didn't this you want businesses, everything. around X those turning why we not, be spent I froze distracted it or during years We to

is XX it spin. and no nothing majority, business. me, they that you job the think our spinning sense think that. very in how or I had I'd either I sufficient keep Joey have them. than still out really to I that's glad and the the think is correct And businesses totally an March store. be As certainly more the vehicle running get It's a when and happen done Angi Joey it good we're to to It IAC partially know really that -- my for like the that perfect I somebody They've companies of made like Angi, to company, to spun it independent. I'm me in complete come be us in getting my off own concept, respect also, begin grow. we can on to further "I or ought said, it conglomerate own happen. encourage There's Jeff decades will so. to be And could kind do a And which and for public business I where anticonglomerate. off like do but to about its of confidence to do of date will a size, it they state a believe be And but the a I it's that time we're that own.

'XX. believe management. said having million in now We the MGM We've $XXX mean a world. this the MGM MGM anywhere before, gone were I duplicate before -- from superb [indiscernible]. freeze did ever I has cash We've that year. is burning flow And I No everything. one assets. is this I bought burning like We so run will cash purified sold It cash of as We in Las else period. it company. Vegas

There's have percent and XX-plus be It it market. its cannot and customers. technology. customer of We nothing the disintermediated between its any serving by

the know, $XX-plus Osaka, which And gaming for It's run these percent great some you in take open future resort Japan, the country but the plant period. -- flag world. It's hotels a over only the to entire simplify years billion building resort to the it, flags next is MGM, at going As MGM. build a itself will let's in going capacity. to for XX-plus other in around

it's And think to it's time complex I were the think DDM for in it how thing question. I stats in been in in the able of undervalued. the going -- be more continue -- a back And position you it. came able we was do traffic I in its to I a digital buy giving wasn't. Vegas, that understand. found Did to wildly to the overly get do Las X just of of think It's you advantageously. bought to I'm a outperforming I you was [indiscernible] upon It's when at having lot It the to idea people get complex company [indiscernible] We lucky ask I did DDM traffic, is have just little so. to couldn't a a to competitors. that

Joseph Levin

lost when exactly were we you. think that -- which when halfway I you is through

Unknown Attendee

the good, really it. of All right. halfway is worst Well,

go So halfway to good. the halfway next from the back me let

I an reversal. the XX%. quarter, X, incredible And in down DDM. fourth XX%, XX%, Beginning an quarter of XX quarter, out mean, the X quarter just For plus first -- quarters, fourth X%, we that's XX%, XX% then then in XX%. fourth XX%, went XX%,

itself, and integration a through had ad very -- we of and is it the go balance having all DDM know, is MGM, for it in plus right an to also The bedrock IAC, hit difficult So But transition us. asset Obviously, market strong. is have you excellent sheet decline. our this by now it

earlier, I we this It's period me As I And deserve think our because until buying things stopping I shape us we getting understand don't said phase where to reason to we've that I during not we're I'm everything. and and I've obvious. froze back whole not just that businesses and straightened finished. in fairly our stock straightened has hope structure ended. now I going gotten and is talk out. not freeze and foresee talking hope confidence going a I has we getting because it them said, our business. will pay to situation the will but attention stop I talk it, fact thing, what about But about about which that wanted you the We're to corporate out to in did I stop businesses the only what is I'm one do that did

we're And our is done the doing build, And we'll sense, dedicating buys I this not anything at of been MGM. history themselves we'll as that shown that covered, has think it's to work capital. that's we involvement we're going M&A, buy, are think me do I we've in these in as And before, And we've least areas, think asset us principal opportunities, of -- God-knows think, makes by our we it. built our [indiscernible], if fairly starts are do idea. are and and invest assets our in to look it We'll with our company of in. value. freshened to whether to what this while of has a are the and we've whatever. we There but far Internet of field And I Chris that history all sorts events do that to as There with with talks DDM are tell anxious. what walks endless that, going forward to of do landscape, addition Head go it recently good continue or with announced at businesses.

almost okay, after hope this So still with you I on having twice. I'm now

Christopher Halpin

Barry. And perfect. was well there, question That you [indiscernible] answered

Operator

with comes from Eric Our next Sheridan question Sachs. Goldman

Eric Sheridan

Maybe two, if I could.

the the to expect tailwinds if IAC terms Barry, platform. taking respect framework we 'XX. for saw headwinds pillar potential team, our of understood over operating get long in into in on turning improving I MGM maybe it the we [indiscernible]. in little for stakes respect going following and wanted of Angi number like for to more the business. just color then the IAC. 'XX to companies terms And of to the that what bit outside business. that thinking businesses First, like of to about we as should dynamic with When term having be with maybe in, years the what in the be on the transition your a priorities continue across pillars. some the integration and that about it a or from to sort with changed product up monitoring of of in quality towards should to overall speak. would dynamics in should some business And mean How specifically, terms platform, investing has in opposed those laid think transformation That moving be one. on single the answer, of call you great have how opportunity investing X and to we operating what might to about you investors the out think examples for the are

Unknown Executive

growth. growth up back and going to a to proprietary SEM propriety bit Eric, I been question, what sum said our first is building little returned we our your to with try So -- have has progressively SEM before, which I'm traffic improving and product

improve big going stable is third-party business to choice forward. growth be but our expect of in We is proprietary year a going the now to growth to out chunk get Consent in and that through and XXXX. move and our business,

the together growth us So forward. X going to get

into On improved brought XXX has active in of we of the [indiscernible] basis points more Pros in Pro XXXX basis side, our retention XXXX for 'XX. Pros literally compared to XXX the the bringing -- materially. We're points active

and forward, yet, cross our those incremental While not particularly forces customer will changes thus, is coming we're network growth acquisition with experience. going the netting down, in

Pro So the well. we as to growth expect again inflect network the

of combine. And those that things our to the X So in growth will XXXX. trajectory will take back

and single pros market, of product, marketing a of it. is more One reduce more operations our to to run moving efficient. make couple terms reduce us to of all a to structure far with Pro our product and In overhead efficiently, allow and a single time going single platform there's pieces our to pricing is acquisition

-- going said to the growth. second be revenue per will transaction before, our to way another incremental as the structures in pave that's going in monetized progress to half of I back it's the grow which sunset, lift pricing year, Secondly, to some our

of every for a basic In a -- in now we've We're get seasoned this just Europe. size the we old risk, of will do X back Pros time pretty us. it also at likely from this comparable but little take done integration terms Europe. it operations migrations We've is product. We disruption, we'll do in

actually move there. forward of course, noise we be to out we system, there in expect to well come the so And expect, but and better

question. your I think pieces of all I covered the

Joseph Levin

very think said. I that's well

Let's go to Barry.

Unknown Attendee

scale, way I said out it on sufficient mean and any and take forever tone. to business gets independent up Operating as I've believe, we'll to ought a spun once comes. that businesses, it be the I it be

and of each multiple have businesses think I companies operating operate try to that them.

probably we too businesses we But spin will would as those we we have standing tell out. less so. and their companies of for for I'm failed were time. a of than own. future period do actually the into will succeed, the operate operating they look If them. long, think advantageously will them sure that have possibilities, we've they on [indiscernible] that And think operate they they I I them

Operator

from with comes question next Our Oppenheimer. Jason Holstein

Jason Helfstein

Two first is then order. ask Maybe follow-up them questions. Barry just and for Joe the Chris. Maybe for I'll and that in second a

kind returning realizing now getting current multiyear beds of into spin? Angi questions was Or would value So you just Barry, poised IC of I think you the cash the characterize of would you and amount kind are maximum we to to one how the post shareholders. be from beds? of more more focused lean and keep Are investors kind the on of

follow-up with start just that on So just Then Meredith. question. let's a

Unknown Attendee

Well, you'll in we period. the next what do see

to from ended. As us for before, period I using that it shareholders I've to stopped capital return the say, reasons said has our I

be always it's to balance. so a And going

first the some I businesses? sorts in real of capital. there's of that current your I And DDM a take opportunity opportunity think may take think inside You investing in all areas.

also, again, slate. have on so drag problem, think any don't any I have don't us. to We a have We speak. we clean

of has been solved. All stuff that

come always seeking our attention -- of if I'm patient. all and they not go and So not opportunities, you're can inpatient to I'm new

clearly So returning. a see. mix between It we will be will

Unknown Executive

Capital to shareholders and seeking opportunity.

Jason Helfstein

plans years? Chris, drive And digit leverage transition on you -- of content do then, ways that growing digital and is over focus Joey, digital. impressions. more can how and the that at to double and and fan next accelerate think your What to do further to are And now Meredith, X revenue funnel you engagement revenue top

Christopher Halpin

as Traffic business the as always talking We monetization, X advancing price. and you're about look at key parallel. drivers Jason. quantity in Thanks, and Yes.

For new traffic, as priorities. elements where in direct previously products, about top letter, the engender few e-mail and through about definitely we One, traffic is key funnel and we we of strategic marketing. relationships, talked a talked consumer there's

Another for platforms. is industry-leading that premium behind brands content our offer to we continuing different optimize

things of And bit third-party our mentioned deliver that we and and own that which utilizes our our intent ads. So from think that. mapped target one, to cipher the is signal on then earlier, the Discover, we've the Google, developed In same News, like comparable sites a the partnership with on signals Plus. OpenAI also own, Apple have last properties D/Cipher social little media,

We the this buy D/Cipher advertisers opening target we additional for our believe using to our by We're increase new and steadily utility and while this business. offering can will launch and be provide attractive the ability their DDM. up now platform. Plus, also large of believe advertisers be budgets it With to value up ramping will a

et X are direct -- cetera, advertisers. be best-in-class On core to and that's the for there service, our monetization continue the side performance, elements. in sales, premium all about of equation,

traffic continue last lead is We to Thus, great forward. and marketing. the programmatic quarter market guide it growth incremental platform our in second much believe digital rates keep the in and about XX% as felt the chugging. the and provides. innovate advantage on [indiscernible] our improve to auction is then year [indiscernible] and drive The continue broaden the performance of to plus with asked market. efforts of growth, revenue XX% this going of take about, But growth terms that our it you we opportunities power and growth

will pushing. keep So we

Operator

Jefferies. comes question James Our from with Heaney next today

James Heaney

there And and get detail between rules consumer? forward? I results had the you to a just additional And enterprise [indiscernible]. [indiscernible] Is divergent question. expect going then what follow-up any

Christopher Halpin

Yes.

to So can care caregivers carriers to XXXX and bought business individuals it, it's subscribe is family about a get ups behind their for to work has out different been They boost access now, the of and access them if That adjustment. then years senior leveled to enterprise as pay marketplace. companies driven -- We're emergency home pandemic business. has It their office. lines. care. Their time then and business followed get quarter. in the help for nice talk pay This needed. and manage a to there. main downs, child. a post-pandemic backup enterprise a care arrangements efforts the purchase their by will employees. be this with and matched needs companies in of few home the then have at that have help can rebuilding further energy The out and COVID, during post consumer last families lot and to provide to broke care and needs business support care care.com employees we And use business segment back the we specialists days in tailwind platform have full directly with the advancing experienced by we to care [indiscernible] It's to where it. The their enterprise companies X employees employees spent pandemic. find different can benefits to Right in business major sought also

for needs one of continue that table line should and to benefit some care support provided the performer in a solid last similar employer ways sort becoming category. the a be enterprise is health we're real year and increasingly grew forward of to leaders insurance. standard in As going stakes

tailwind consumer realized the challenging as core in the On it year the period some and in comps, than the conversion and we we marketing product lagged lapped and struggled we deficiencies side, greater on product renewals. 'XX experience. saw on macro a Consumer declined as last

like most matching, and trends. to slow product, up return the we be ramping a back team on impacts New working industry and and year. his been have given leader growth love seen as believe the the nature CEO, focused positioning a to and areas seekers in improve subscription and the and be Brad the this Wilson will market. messaging actively throughout will Care.com's But of reversing we the care product caregivers with It

that is senior We also are its The child good growing demand are company and annual the know recently industry challenges the of as only state the consumer there. released finding report of costs. in care

And that team think better and on opportunity to we next and can So marketing, with then experience the seize return improved growth. an question? James,

James Heaney

Yes, great.

corporate the on costs. quickly one Just

normalized should we on what's elevated how Just that run that forward? level driving going about then think a And in rate curious XXXX.

Christopher Halpin

nonrecurring a of obviously, year. much year. number guided, on this corporate We this things number higher going there's a in Yes.

recognized time once. of creation spin to The the at Angi X-year and Joey's His are Angi. consulting agreement IAC the with associated first movement from at will be all

spin, filing, cetera. Next tax, costs or with associated et legal, the Angi

at have matters Additionally, Group in are this we ongoing quarter, we costs lower will also masked the taken run XX, separation insurance Match to onetime P&L in as the and artificially I'd we reported such received rate flag actions drive this as that 'XX. out-of-period then $XX litigation prior expenses year. have the the to finally, relating and was that corporate, a at were this year, about year. due costs that And that's to hitting talked the I number expenses million created streamline when legacy you payment look

sum, year move 'XX cost that will clarity $XX forward. on nonrecurring we roughly as be beyond not are in more structure of in and in that the provide million and So incurring we'll we this costs

Operator

Our today Barclays. comes question next Ross Sandler from of

Ross Sandler

that kind for impact at to inventory. Angi. the non-owned a how be could involved you question you a on with material top is then, in 'XX? Could of Chris, on feel guess management what Decipher be Plus I you at the follow-up in and to Joey and want And about for that how operated over moving Barry. the and opportunity do structure at day-to-day Great. IAC the have profitability And DDM?

Unknown Attendee

think anyway, nature of crazy. and it process attention a whatever things fresh hopefully, help that allocation out know Helen involves But this today. are -- I us have thought, obviously, [indiscernible] both I'll I've always have I need much the we a quickly. don't too And is [indiscernible] and [indiscernible] I eager, right. me Chris I to to Russell colleagues by have I'm not are that And why, and I one stimulate to people new the all just what the terms in confidence day. seeking the again, group does of these we that. in start do prime going but All of my is, to is and little think important, things day-to-day, operating pay day great obviously going with which capital that and think really opportunities. this

Christopher Halpin

be And really growth that then, Plus inventory Ross, types want. D/Cipher driver. powerful a think excited the about. to Yes. company's we're X We It increases can it access of advertisers

inventory food, others look is in see first The at consumer we like our intent where health, core categories, premium home, scale.

platforms is intent-driven the efficiently. buyers at being and those D/Cipher to identify often signal lower in provides And This that today pricing programmatic sites premium DDM. current it buy rates, So by and the categories. these DDM our can where inventory use performing we monetized inventory Plus inventory lack performing inventory is highly similar limited third-party to own powerful on on on cipher

inventory performing our yet of impressions categories. set second is in undervalued, The

price So we because the performance DDM that of be inventory for their priced out performance can the is have in and And being core guarantee. they're decipher some to CPI included do buys. still We have in volume advertisers so looking are lower high. who

we factors, believe our selling it of and of this these exceptional price up with it believe can providing as of elements at Because grow So adding 'XX, advertisers can rapidly substantially do we ramping on about margins curve. impressions supply offering the while accounts both across revenue it We're think attractive and performance. into increase our a it basis.

incremental of we're incremental We adjusted the the balance content the between XX-plus other. X believe right hand Plus, supportive on and growth EBITDA that of those on we believe digital or be margins. margin targeting the EBITDA point, will said strikes And types and D/Cipher products profit On we margins. and incremental investment

Operator

Patterson next Justin KeyBanc. at Our question comes today from

Justin Patterson

Great. execute steps do as the and more to versus Jason's the on question What business And see the differ traffic grow financial middleman. in of how on I to what hit might as see eliminate these key way. you then you different we Dotdash a wanted initiatives, the today? profile

Christopher Halpin

Jason. Thanks,

Justin.

trusted consumers by a and to about and and the to we with are our that Neil platforms sought points an touch effort it driving direct-to-consumer be grow expand is customers interact have for We know also for to engage after it's to aisle, We've as know brands our to efforts exceptional. team our offensive So able and our quarters one know talked they're been We few plan. consumers. content many as directly. to possible our with they're

utility which marketing, perspective. and Some have models This on invest these that With we no directly our and to breadth monetization out and are roll impact, we both also initially experiences one food and of the has offer And as engagement areas continue looking will of of in our be industry-leading social engagement from brands further products, year, consumers more very an think advantage engage that in video, worked providing today. been live events, people loyalty, financial then similar. drives also a content we're repeat video, and and to products information these and monetization through deeper to to e-mail, storytelling. enhance even take and These is respect well to new engagement. media going categories personalization, which go, we're else which centered

them don't overall advancing DDM. them and we to to And as not -- dilutive view financial our view so efforts we

Operator

Absolutely.

with from comes Youssef Securities. Truist question next Squali Our

Youssef Squali

One question for Chris and one for please. Barry,

that open impact in et how about much of [indiscernible] to now you you've that talking So cetera? not left view? And that there. conversion, I'm D/Cipher maybe your about talk in the D/Cipher integrated Chris, you've do pricing, AI Plus, I seen on IAC in that? back spun that want [indiscernible] just Can at or MGM is like -- tech Barry, engagement is that you be I now see And category. D/Cipher see to Angi you to more compel off, with operated. then, do how now that is guess going that to Does post

some news there've [indiscernible] partner been had coming And out of bunch a [indiscernible] MGMs, changes seems have to think the how so at I other top. JV

you just about So that think you seem some corporate in do opportunity that how structure. to now gotten have flexibility your

Christopher Halpin

want go [ first? do BD you ], to

Unknown Attendee

before, what see increase undervalued been its our may team we'll and is We it think excellent which is, and stock I've results so, going it's opportunistically. to operating superb management shape, is I knowing MGM excellent continue it. ownership. how which buying sure. own will is I Certainly, back our to do in increase said to it as Yes, continue

It's think possibly something it's of but be conditions, forward. I before, And fathom less can't asset said to just never also I it it that somewhat going think think going a course, in see change, said I I I could earlier, But As that. forever consider be it's -- we'll it away. complex I ours.

Christopher Halpin

with out. before interesting studies case as executed you know, the are based advertisers' different over we then and optimize decipher or today that target we've is goals on the And advertisers, respect campaigns. have in premium metrics What's with talked that to studies it we've what given prove about we our XX is direct decipher, the And used, campaign. all case

for for it's some click-through that's others, So efficiency. advertisers,

it's in-store sales it's conversion visits. actually others, some For and then

over that that blow quarter about We have -- campaigns orders are case without seen the non-cookie-based feature in include outperformed we studies, as said XX% -- continue. trend cookies over overall provide in -- the we last half this that we've of then DDM all an we direct revenue are over We've orders -- cipher digital -- talked advertising an will that campaign. decipher and that are larger confident and D/Cipher that the or solutions. in orders quite It direct quarter trend last important is away these has than with has continued

OpenAI's also advance that video We contextual expect that. being we in and and images can continue thrilled scoring better for and we our able utilize our to to are integrate even and technology targeting performance,

Joseph Levin

with the this The from Nice -- BetMGM on about were nice product question week things [indiscernible] ago. business, that's with your Joey side you the while. momentum saw so how change announcements wouldn't BetMGM, for into at They and And anything And and [indiscernible] is very the Chairperson on CEO talking business. X and [indiscernible], the Jose, talked expect really great a -- there. on both in have we level relationship a to about or materialized MGM we out. the the the

Operator

Our Nick next question from Jones comes at [indiscernible]

Unknown Analyst

on agent AI, I of AI. and questioning focus there's guess XXXX, on And improving just a kind couple learnings in from matching. Angi's an increased on focused

play energy think a you going about going the I role question improving in kind same Care.com. guess the kind As of to of playbook matching, is for that forward,

Joseph Levin

I'll Yes. start.

his is Jeff improving on letter. in a bit view Our little about yes, talked that matching

And user right we happen get for Angi's has interface And comfortable of adopted us better or then a with that and would CPT things some But conversational one said better to information we that, matching from for allow of of are the is to consumers that we on information the that. top for course, conversational could can job, the the But a I've a sorting I and doing Obviously, best but the get do. AI better with think matching. adopt to UI about I get consumers data sure consumers that's a we're ideal for can a this not happens a for said job. if while Angi whether and similar. technology better about broadly while, and significant or not, that they're to extent be UI. that

and the net I is think that very positive Angi user experience. that, for

Unknown Attendee

AI, genetic with effectively, right, becomes a where the we're we're matching serving the effectively would agent say, that Yes, I Pro. just

and that's this technology. those going as tools see so leverage where we we And

Unknown Executive

-- we sets, Yes. application proprietary classic [indiscernible] secondly, information applications. And elsewhere. are say well [indiscernible] service And information said request data have just have at AI then Care, will it see of the for you marketplaces, AI service where Nick, seeing all will these it nurse our on like as customer broadly generation, functions, matching across And be open and portfolio. sign-ups, going I the as activities analysis, onboarding would puck to Angi optimization opportunities. things due entry enhance the can of you We those this while is the where a you

Operator

And Sandler. our Tom Champion last comes question Piper with today from

Thomas Champion

commitments place just Thanks more via interesting the thus hear the to and and I and spend that taking little an made a digital with you're for verticals the DDM you revenue in all the maybe guess, D/Cipher. comment Chris, within that comments. [indiscernible] bit XQ far, I'd portion about unfolded on ad love seeing and maybe trends overlaps what

have curious, back think you I'd search so search ran And the I sense. with you Hopefully, of future kind seemingly way revenue AI can. as for and I'm broadly? I the Maybe you Joey, Joey, if D/Cipher visibility. well, have of final just when. question if curious growing think a makes be open search about that And business what evolve, just more observed you

Unknown Executive

in don't you just go slip to first, right? [indiscernible] there, X that Why Tom, question. answer

Christopher Halpin

and to pointing big go we headed then I'll concepts. fine. be you that's can the Yes,

that ad broadly, few People think as the momentum continue we'll to the back some sorry, home, So and area, love finance, plays got the categories, term to from now. we're momentum and clearly things into and is our is to but right -- and on in that through in Health we the Tom, pick short build a places. goal on-demand fine time. into roll is things. major advertisers more in health more how note or sale others both -- serve team we'd that's would up are seeing freeze We've monitor after return more to the fine advanced direct brands finance able We broadly quickly, market to advertisers beverage, described the Decipher their We grows. it buying, and be agencies economy I to they've we'd saw over move and definitely the something sell ad got across product working food past. enhancements see and say in that no commitments, trends political -- premium

always, has years. constructive are been market, everything volatility current but hallmark the the and few the as we ad a that given cautious So geopolitical last over on

Joseph Levin

Yes.

I'll bit But And I maybe anecdotally and profound Wings the So time. advancement. that's platforms. for experience to It's know for that been share. searches start gain a meaningful the I many Ten going long AI I experience, broader. links a is then share Blue meaningful Ten we've a expect and increasing a searches is as evolution Blue people start evolution that from think that And looking And to and to efficient to continue answer as now because the it's little good, and now. a I certainly

Angi, the into those, very conversation a of I used that's the harder think the And the and you're space much have user important position. in whether they're best you're I that voice means be that one context think a fewer is in going and if that IAC of And got the to the answers. that for what's think the and you context of tail, in of we're context interfaces, be of to And position. to about that for or I in sort content. the in keys and thing with there, in AI we is think that DDM best category good care the those further

continue to And a share take way. concentrate sort models the I the think best LLM and user so while of meaningful around these a more interfaces for very that those then in audience and are

Christopher Halpin

and Thank Thank a you. more luck you, everyone, these, of operator, you good or and thank here. for Thank all decade Tom. you, from

Operator

presentation. for call. today's attending thank This you today's concludes you. all conference Thank We

You and may lines, now your disconnect day. wonderful have a

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