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Q1 2025 Earnings Call Presentation May 2025
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NON-GAAP FINANCIAL MEASURES This presentation contains references to certain non-GAAP measures. Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements, if applicable. The reconciliations between GAAP measures and non-GAAP measures are included in the Appendix to this presentation. FORWARD-LOOKING STATEMENTS This presentation may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipates," "estimates," "expects," "plans" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: the future financial performance of IAC and its businesses, business prospects and strategy, the anticipated benefits of the completed Angi Inc. spin-off, the reorganization of IAC’s leadership, anticipated trends and prospects in the industries in which IAC’s businesses operate and other similar matters. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: (i) our ability to market our products and services in a successful and cost-effective manner, (ii) the display prominence of links to websites offering our products and services in search results, (iii) changes in our relationship with (or policies implemented by) Google, (iv) our ability to compete with generative artificial intelligence technology and the related disruption to marketing technologies, (v) the failure or delay of the markets and industries in which our businesses operate to migrate online and the continued growth and acceptance of online products and services as effective alternatives to traditional products and services, (vi) our continued ability to develop and monetize versions of our products and services for mobile and other digital devices, (vii) unstable market and economic conditions (particularly those that adversely impact advertising spending levels and consumer confidence and spending behavior), either generally and/or in any of the markets in which our businesses operate, as well as geopolitical conflicts, (viii) the ability of our Digital business to successfully expand the digital reach of our portfolio of publishing brands, (ix) our continued ability to market, distribute and monetize our products and services through search engines, digital app stores, advertising networks and social media platforms, (x) risks related to our Print business (declining revenue, increased paper and postage costs, reliance on a single supplier to print our magazines and potential increases in pension plan obligations), (xi) our ability to establish and maintain relationships with quality and trustworthy caregivers, (xii) our ability to access, collect, use and protect the personal data of our users and subscribers, (xiii) our ability to engage directly with users, subscribers, consumers, professionals and caregivers on a timely basis, (xiv) the ability of our Chairman and Senior Executive and certain members of his family to exercise significant influence over the composition of our board of directors, matters subject to stockholder approval and our operations, (xv) risks related to our liquidity and indebtedness (the impact of our indebtedness on our ability to operate our business, our ability to generate sufficient cash to service our indebtedness and interest rate risk), (xvi) our inability to freely access the cash of DDM and its subsidiaries, (xvii) dilution with respect to investments in IAC, (xviii) our ability to compete, (xix) our ability to build, maintain and/or enhance our various brands, (xx) our ability to protect our systems, technology and infrastructure from cyberattacks (including cyberattacks experienced by third parties with whom we do business), (xxi) the occurrence of data security breaches and/or fraud, (xxii) increased liabilities and costs related to the processing, storage, use and disclosure of personal and confidential user information, (xxiii) the integrity, quality, efficiency and scalability of our systems, technology and infrastructure (and those of third parties with whom we do business), (xxiv) changes in key personnel and risks related to leadership transitions and (xxv) changes to our capital deployment strategy. Certain of these and other risks and uncertainties are described in IAC’s filings with the Securities and Exchange Commission (the “SEC”), including the most recent Annual Report on Form 10-K filed with the SEC on February 28, 2025, and subsequent reports that IAC files with the SEC. Other unknown or unpredictable factors that could also adversely affect IAC's business, financial condition and results of operations may arise from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward-looking statements we may make. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. MARKET AND INDUSTRY DATA We obtained the market and certain other data used in this presentation from our own research, surveys or studies conducted by third parties and industry or general publications, and other publicly available sources. We have not independently verified such data, and we do not make any representations as to the accuracy of such information. NO OFFER OR SOLICITATION This presentation does not constitute a solicitation of a proxy, consent or authorization with respect to any securities of IAC. This presentation also does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities will be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom. TRADEMARKS This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM © or ® symbols, but we will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. 2
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IAC Today: Four Leaders in Large & Growing Consumer Categories 3 IAC spans diverse industries and business stages—from small seeds to category leaders— and includes real estate assets and cash ready to deploy Cash on Hand 2 $0.9B Publishing #1 digital & print publisher in America Global Entertainment #1 digital marketplace for care in America Holistic Family Care ~23% Stake1 S&P 500® global gaming & entertainment leader Car Sharing ~32% Stake1 #1 digital marketplace for peer-to-peer car sharing Search A leading collection of search & reference brands Other IAC HQ Building 1 As of 3/31/2025 2 IAC cash and cash equivalents balance as of 3/31/2025, excluding DDM
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4 We Are Trading at a Substantial Discount 4 Today’s Market Value IAC Share Price $35.31 Shares Outstanding¹ (M): 80.8 Equity Value $2.9B Less: MGM Stake (@ $31.97/sh)2 ($2.1)B Less: IAC Cash3 ($0.9)B Enterprise Value: ($0.1)B 1 Fully Diluted Shares Outstanding as of 5/2/25 2 IAC has approximately $800 million in NOLs to offset against the MGM taxable unrealized gain as of 5/2/25 3 IAC cash and cash equivalents balance as of 3/31/2025, excluding DDM 4 Revenue and Adjusted EBITDA for trailing twelve months ended 3/31/25 5 DDM net debt and leverage as of 3/31/25 $1B Digital Revenue $309M of Adj. EBITDA4 $1.2B Net Debt 4.0x Leverage5 $366M of Revenue $43M of Adj. EBITDA4 ~$600M of combined basis Investors Are Effectively Acquiring These Private Holdings for Free ~$800M of NOLs
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Our Game Plan 5 Management changes at IAC, Care & Daily Beast Corporate cost rationalization FCF generation/de- levering Strategic add-ons Build new platforms Capital Return 4.5%/$200M repurchase New 10M share authorization Opportunistic Divestitures Bluecrew Angi spin-off completed; IAC’s 10th fully independent company Proven Framework for Creating Long-Term Shareholder Value M&A Mosaic Group Business Execution CatalystsCapital Allocation
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Back to Building in 2025: Our M&A Philosophy 6 Our DNA Our Core Interests Our Advantages Barry Diller-led culture of curiosity, creativity & ambition Deep, seasoned leadership bench Track record of scaling digital consumer businesses Operational excellence Strategic, transformative M&A Leisure Entertainment & Media Travel & Hospitality Sustainable market tailwinds Catalyst potential Flexible, permanent capital Forever mentality Expansive outlook Deep understanding of the consumer Opportunistic “We are freshened as far as what we are going to do with our capital… there are all sorts of opportunities, whether it's buy, build… We'll do this as we've done it before. Tell us a good idea, and if we think it makes sense, we’ll go forward with it.” – Barry Diller, February 12, 2025, IAC Earnings Call
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2025 Guidance 7 ($ in M) FY 2025 Outlook1 Adjusted EBITDA DDM2 $330-$350 Care.com 45-55 Search 10-15 Emerging & Other (25-15) Corporate (120-110) Total $240-$295 Stock-based compensation expense3 (30-25) Depreciation (35-30) Amortization of intangibles (100-90) Total Operating income $75-$150 1 As of Q1 2025 Earnings on 5/2/2025 2 Excludes approximately $36M non-cash gain from a lease termination in Q1 2025 3 FY 2025 stock-based compensation expense reflects the net reduction in Q1 2025 of approximately $35M of stock- based compensation expense due to the provisions of the January 13, 2025 Employment Transition Agreement between IAC and our former CEO Additional Q2/FY 2025 Observations ▪ DDM – In Q2 we expect Digital revenue growth of 7%-9% and total Adjusted EBITDA between $67- $73M. For the full year, we expect Digital revenue growth between 7%-10% given the current volatility in the macro economic environment. ▪ Care.com – In Q2 we expect revenue declines of 5%-8% and Adjusted EBITDA between $3-$5M. ▪ Search – In Q2 we expect revenue of $75-$80M and Adjusted EBITDA of $4-$5M. ▪ Emerging & Other – In Q2 we expect revenue around $15M and Adjusted EBITDA losses between $5-$10M. FY 2025 includes certain non-recurring expenses for certain legacy businesses. ▪ Corporate – 2025 FY Adjusted EBITDA losses reflects severance and related expenses due to headcount reductions and several non-recurring expenses, including costs related to the former IAC CEO’s departure and Angi Inc. spin-off. Most of these expenses were recorded in Q1 2025.
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8 Appendix
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GAAP to Non-GAAP Reconciliation: DDM 9 1Includes a gain of $36M related to the termination of a lease for certain unoccupied office space which otherwise would have expired in 2032. Twelve Months Ended March 31, 2025 ($ in M, rounding differences may occur) Digital Print Corporate Total Operating Income (Loss) $166 $38 ($32) $171 Stock -based compensation 10 2 12 24 Depreciation 14 6 7 27 Amortization of intangibles 105 18 - 124 Adjusted EBITDA $295 $64 ($14) $345 Certain DDM items1 - - (36) (36) Adjusted EBITDA excluding certain DDM items $295 $64 ($50) $309
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GAAP to Non-GAAP Reconciliation: Care 10 ($ in M, rounding differences may occur) LTM Q1'25 Operating Income (Loss) $29 Stock -based compensation 4 Depreciation 5 Amortization of intangibles 5 Adjusted EBITDA $43
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IAC Q2 2025 Outlook 11 Emerging ($ in M, rounding differences may occur) DDM Care.com Search & Other Operating income (loss) $30-$41 $0-$2 $4-$5 ($11-$6) Depreciation 5 1 - - Stock-based compensation expense 7 1 - 1 Amortization of intangibles 25-20 1 - - Adjusted EBITDA $67-$73 $3-$5 $4-$5 ($10-$5)