Barry Diller’s IAC Beats Financial Expectations as Vimeo Grows.
But net income fell to $65.6 million from $326.8 million a year ago as expenses rose and its year-ago earnings included gains from discontinued operations. IAC, the Internet company controlled by billionaire media mogul Barry Diller, reported better-than-expected quarterly earnings in part courtesy of impressive growth at entertainment properties like Vimeo, CollegeHumor, Electus and the Daily Beast.NEW YORK, Oct. 26, 2015 /PRNewswire/ — IAC IACI, -1.64% today announced that it has entered into a new agreement with Google which will extend their long-term relationship through March 2020. The new agreement, through which Google will continue to provide IAC and its network partners with sponsored listings and other search-related services, runs from the end of IAC’s current agreement on March 31, 2016 and continues through March 31, 2020.
The Match Group revenue increased 19%, or 25% excluding the effects of foreign exchange, driven by 17% growth in Dating Average PMC(1) to nearly 4.2 million globally and the contribution from The Princeton Review. Within Search & Applications, Applications queries and revenue increased 28% and 2%, respectively, the first quarter of revenue growth since Q3 2013, driven by 20% growth from B2C. With respect to mobile platforms, the arrangement is non-exclusive, but at a lower revenue share for IAC. “I’m extremely pleased to announce the extension of our 14-year relationship with Google,” said Joey Levin, CEO of IAC. “We’ve generated nearly $10 billion in revenue to date through the life of our partnership, and this extension makes clear that we have plenty more to deliver.
IAC’s “media” segment remains the online conglomerate’s smallest contributor, adding $57.3 million in revenue during the quarter, up 15 percent from last year. Google’s search and search advertising products remain the strongest in the world, and we believe that this renewal puts us in a solid position for the years ahead.” About IACIAC IACI, -1.64% is a leading media and Internet company.
Vimeo also expanded its Vimeo on Demand content catalog to nearly 27,000 titles from over 8,000 creators, with over one million buyers using the service in 217 countries and territories cumulatively. Benchmark Co. raised their price target on shares of IAC/InterActiveCorp from $96.00 to $100.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. This time around, the company is still reporting its dating segments — which were basically disclosed in the company’s S-1 filing — as part of IAC’s earnings.
In the eCommerce segment, HomeAdvisor domestic revenue (84% of total HomeAdvisor revenue) increased 46%, the 8th consecutive quarter of accelerated growth, driven by a 53% increase in service requests and over 30% growth in paying service professionals. Media’s operating loss, meanwhile, was $8.3 million, a slight improvement over the $8.7 million operating loss the segment recorded in the same quarter a year earlier. IAC is in the process of spinning off its Match Group Inc. as a separate company, and on Monday IAC said its initial public offering for the new company should happen by year’s end. The company reported that Match Group had revenue of $274.2 million in the third quarter this year, while its search and applications group brought in $377.1 million in Q3.
IAC declared a quarterly cash dividend of $0.34 per share, payable on December 1, 2015 to IAC stockholders of record as of the close of business on November 15, 2015. These forward-looking statements include statements relating to: future financial performance, business prospects and strategy, anticipated trends, prospects in the industries in which our businesses operate and other similar matters. One investment analyst has rated the stock with a sell rating, six have given a hold rating and eleven have issued a buy rating to the company’s stock. Levin also boasted Monday that in September Vimeo was fourth in ComScore’s rankings of U.S. video sites, behind Google (which owns YouTube), Facebook and Yahoo.
These forward‘looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. It’s the first time Vimeo ranked that high. “While in aggregate, the net revenue from VOD buyers for Vimeo is still early, we are proving the global marketplace as more creators upload and sell quality, ad-free content directly to paying viewers through our open platform,” Levin said Monday. Websites revenue decreased 10% due primarily to a decline in revenue at Ask.com and certain legacy businesses, partially offset by strong growth at About.com driven primarily by increased marketing.
Other unknown or unpredictable factors that could also adversely affect our business, financial condition and results of operations may arise from time to time. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iac-announces-extension-of-google-relationship-300166230.html The Search & Programs segment consists of: Websites through, which the Company provides search services, content as well as other services, and programs, including its direct-to-consumer downloadable programs operations (B2C), venture businesses (B2B), SlimWare and Apalon. The eCommerce section consists of an online market for matching consumers with house services professionals HomeAdvisor, and ShoeBuy, an Internet retailer of footwear and related apparel and accessories. Receive News & Ratings for IAC/InterActiveCorp Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for IAC/InterActiveCorp and related companies with MarketBeat.com’s FREE daily email newsletter.
IAC may purchase shares over an indefinite period on the open market and in privately negotiated transactions, depending on those factors IAC management deems relevant at any particular time, including, without limitation, market conditions, share price and future outlook. IAC will audiocast a conference call to answer questions regarding the Company’s third quarter 2015 results and management’s published remarks on Tuesday, October 27, 2015, at 8:30 a.m. This call will include the disclosure of certain information, including forward-looking information, which may be material to an investor’s understanding of IAC’s business.
For Adjusted EPS purposes, the impact of RSUs on shares outstanding is based on the weighted average number of RSUs outstanding, including performance-based RSUs outstanding that the Company believes are probable of vesting. These measures are among the primary metrics by which we evaluate the performance of our businesses, on which our internal budgets are based and by which management is compensated. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. IAC endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) 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 goodwill and intangible asset impairments and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements.
We believe Adjusted EBITDA is a useful measure for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Adjusted Net Income and Adjusted EPS have the same limitations as Adjusted EBITDA, and in addition, Adjusted Net Income and Adjusted EPS do not account for IAC’s former passive ownership in VUE. In addition, Free Cash Flow excludes, if applicable, tax payments and refunds related to the sales of certain businesses and investments, including IAC’s interests in VUE, an internal restructuring and dividends received that represent a return of capital due to the exclusion of the proceeds from these sales and dividends from cash provided by operating activities.
Stock-based compensation expense consists principally of expense associated with the grants, including unvested grants assumed in acquisitions, of stock options, restricted stock units and performance-based RSUs. Depreciation is a non-cash expense relating to our property and equipment and is computed using the straight-line method to allocate the cost of depreciable assets to operations over their estimated useful lives. Value is also assigned to acquired indefinite-lived intangible assets, which comprise trade names and trademarks, and goodwill that are not subject to amortization.
These adjustments can be highly variable and are excluded from our assessment of performance because they are considered non-operational in nature and, therefore, are not indicative of current or future performance or ongoing costs of doing business. The use of words such as “anticipates,” “estimates,” “expects,” “intends,” “plans” and “believes,” among others, generally identify forward-looking statements. Actual results could differ materially from those contained in these forward‑looking statements for a variety of reasons, including, among others: changes in senior management at IAC and/or its businesses, changes in our relationship with, or policies implemented by, Google, adverse changes in economic conditions, either generally or in any of the markets in which IAC’s businesses operate, adverse trends in the online advertising industry or the advertising industry generally, our ability to convert visitors to our various websites into users and customers, our ability to offer new or alternative products and services in a cost-effective manner and consumer acceptance of these products and services, operational and financial risks relating to acquisitions, changes in industry standards and technology, our ability to expand successfully into international markets and regulatory changes.