Page 1

August 4 , 2021 IAC IAC Q2 2021 Shareholder Letter Dear Shareholders , Page 1 of 8 In our first quarter following the Vimeo spin , we're back to building . Being small again has its benefits . Though there's less earnings to cover the corporate overhead , smaller scale means fewer bureaucratic distractions . The natural big - company inertia toward risk avoidance reverses , and we are able to focus all our resources on expansion and taking healthy new risks . We now have an ambitious team of innovators with momentum building across our portfolio , and ample resources to support them . Some worry about institutions too big to fail . We're now too small to fear failure . As usual for us , though , our general overcapitalization leaves us plenty of room to take risk without ever betting the company . Dotdash , Care.com , and our smaller and early stage businesses are growing nicely . Our investments in MGM and Turo are meaningfully exceeding our expectations at this stage . And our biggest business , Angi , is in the midst of a significant reinvestment to redefine its category which we believe , while more costly than we expected , is headed in the right direction . They say home improvement projects usually take twice as long and cost twice as much relative to expectations going in , and one of our goals at Angi is to prove that axiom false . Ironically , delivering that proof appears to be , well , taking us longer and costing us more . Each business's outlook is unique , and in aggregate represents the uniqueness of IAC - a collection of businesses using interactivity to grow in large markets . Each business creates new options , and IAC is in the business of creating valuable options for shareholders . Sometimes those options have a clear and obvious embedded value , such as when a particular business is spun - off , IPO'd or raises outside capital . And sometimes those options are less specific , such as cash not yet allocated , or a collection of businesses in a category with potential for breakout success . Every time we exercise an option ( e.g. the IPO of Match Group in 2015 , the reverse merger of