IAC Inc | research notes

IAC Inc.: A Technology and Media Powerhouse Shaking Up Industries

Introduction IAC Inc., formerly known as InterActiveCorp, is a global technology and media conglomerate that has been shaping industries for over two decades. With a diverse portfolio of businesses spanning online advertising, internet services, video streaming, and digital commerce, IAC has emerged as a dominant force in the digital realm.

History and Evolution IAC was founded in 1995 by media mogul Barry Diller. Initially focused on internet software and services, the company gradually expanded into various digital sectors. In 2008, IAC underwent a major restructuring, spinning off several businesses to focus on its core competencies: online advertising, internet services, and media.

Online Advertising: Match Group IAC's online advertising business is primarily driven by Match Group. Match Group operates a vast portfolio of online dating platforms, including Tinder, Match.com, Hinge, and OKCupid. With millions of users worldwide, Match Group generates significant advertising revenue and has become one of the leading players in the online dating industry.

Internet Services: Ask Media Group IAC's internet services division operates Ask Media Group, a search engine and information provider. Ask Media Group's flagship product, Ask.com, remains a popular search engine, particularly for queries related to entertainment, trivia, and general knowledge.

Media: Vimeo and Dotdash Meredith IAC's media business encompasses two major vertical segments: video streaming and digital publishing. Vimeo, a professional video hosting and sharing platform, has become a popular destination for filmmakers, artists, and video creators. Dotdash Meredith, the result of IAC's acquisition of Meredith Corporation in 2021, is a leading digital publisher with a portfolio of well-known brands such as People, Better Homes & Gardens, and Health.

Digital Commerce: HomeAdvisor IAC's digital commerce business is primarily represented by HomeAdvisor, a leading online marketplace connecting homeowners with home improvement professionals. HomeAdvisor facilitates the process of finding, scheduling, and hiring contractors for a wide range of home improvement projects.

Culture and Innovation IAC fosters a culture of innovation and encourages its employees to embrace new technologies and push the boundaries of digital products and services. The company's headquarters in New York City serve as a hub for collaboration and creativity, with a focus on data-driven decision-making and agile development practices.

Financial Performance IAC has consistently delivered strong financial performance over the years. In 2022, the company reported revenue of $4.7 billion, a 13% increase from the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $1.3 billion, representing a 22% growth.

Global Reach IAC has a global presence, with operations in over 100 countries. The company's products and services reach hundreds of millions of consumers worldwide, solidifying its position as a major player in the global digital landscape.

Conclusion IAC Inc. has established itself as a leading technology and media powerhouse, continuously reshaping industries through its innovative products and services. With a strong financial performance, a culture of innovation, and a global reach, IAC is poised to continue its dominance in the digital realm for years to come.

Business Model of IAC Inc.

IAC Inc. is an American media and internet company that owns a portfolio of online and offline brands across various industries. Its business model is based on a combination of subscription revenue, advertising revenue, and affiliate revenue.

Subscription Revenue:

• IAC generates a significant portion of its revenue from subscription fees for its digital products and services.
• These include streaming services like Vimeo, dating apps like Match.com, and productivity tools like Slack.
• IAC operates a subscription economy by acquiring and growing brands that offer recurring revenue streams.

Advertising Revenue:

• IAC also generates substantial advertising revenue from its digital properties.
• Its brands include popular websites and apps like The Daily Beast, Tinder, and Angi.
• IAC sells display ads, video ads, and sponsored content on these platforms, leveraging its large user base to attract advertisers.

Affiliate Revenue:

• IAC earns affiliate revenue by partnering with other businesses to promote their products and services.
• Its brands often include affiliate links within their content or apps, earning a commission for each purchase or lead generated.

Advantages over Competitors:

1. Diversified Portfolio:

• IAC's diversified portfolio of brands across different industries provides resilience and reduces volatility in its revenue streams.
• Its businesses are not reliant on a single market or product category, making it less susceptible to economic downturns or competitive threats.

2. Agile Acquisition Strategy:

• IAC is known for its aggressive acquisition strategy, acquiring promising startups and established businesses to expand its portfolio.
• This allows IAC to quickly enter new markets and leverage the expertise of acquired teams.

3. Strong Brand Recognition:

• IAC owns several well-known and established brands, such as Match.com, Vimeo, and Investopedia.
• These brands have a loyal customer base and recognition, giving IAC a competitive edge in its respective markets.

4. Subscription Focus:

• IAC's emphasis on subscription revenue provides stable and predictable cash flow.
• By acquiring brands with recurring revenue streams, IAC reduces its dependency on advertising and affiliate revenue.

5. Data-Driven Marketing:

• IAC has access to a vast amount of data from its user base, which it leverages for targeted marketing and personalized experiences.
• This data allows IAC to optimize its marketing campaigns and increase conversion rates.

Outlook of IAC Inc.

Background:

IAC Inc. (NASDAQ: IAC) is an internet and media holding company that focuses on digital advertising, subscription services, and home services. It owns and operates a portfolio of widely recognizable brands, including Match Group, Vimeo, HomeAdvisor, and Angi.

Recent Performance and Financials:

• Revenue: IAC reported revenue of $1.37 billion in the third quarter of 2023, a 10% year-over-year increase.
• Net Income: The company's net income reached $145 million in Q3 2023, representing a 14% increase from the same period in 2022.
• EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $247 million, an 8% year-over-year growth.

Portfolio Overview:

IAC's portfolio consists of:

• Match Group: A leading online dating company that operates popular brands such as Tinder, Match.com, Hinge, and OkCupid.
• Vimeo: A video hosting platform for creators and professionals.
• Angi: A home services platform that connects homeowners with local contractors.
• Subscription: Digital subscription services offered through brands like Dotdash Media, Daily Beast, and The Wrap.
• Other: Other businesses include lending and real estate investments.

Growth Drivers:

• Online Dating: Match Group continues to dominate the online dating market, with high user engagement and revenue growth.
• Home Services: Angi is expanding its services and benefiting from increased home improvement demand.
• Streaming: Vimeo is expanding its content library and investing in original programming.
• Subscription Growth: IAC's subscription services are witnessing strong subscriber growth, driven by high-quality content and value-added features.

Challenges:

• Competition: IAC faces significant competition in all its business segments, including from companies like Google, Netflix, and Spotify.
• Regulatory Changes: The company is subject to regulatory scrutiny in areas such as data privacy and online advertising.
• Economic Headwinds: A potential economic slowdown could impact consumer spending and advertising budgets.

Valuation and Analyst Sentiments:

• Valuation: IAC's current market capitalization is approximately $12.5 billion. The stock trades at a forward price-to-earnings ratio (P/E) of 18.
• Analyst Sentiments: Most analysts hold a Buy or Hold rating on IAC stock, citing its strong portfolio, growth prospects, and financial stability.

Overall Outlook:

IAC Inc. is well-positioned to continue its growth trajectory in the digital advertising, subscription, and home services markets. The company's diverse portfolio, strong brands, and innovation pipeline should enable it to navigate challenges and capitalize on industry opportunities. While the economy remains uncertain, IAC's focus on consumer engagement, data-driven marketing, and operational efficiency should support its long-term performance.

Similar Companies to IAC Inc:

1. InterActiveCorp (IAC)

• https://iac.com/
• IAC is a conglomerate that owns a diverse portfolio of media and internet brands, including Ask, Vimeo, The Match Group, and IAC Applications.
• Review: IAC is a well-established company with a strong track record of growth and innovation. It offers a wide range of products and services that appeal to a broad customer base.

2. Expedia Group

• https://www.expedia.com/
• Expedia Group is a global travel company that owns and operates several online travel agencies, including Expedia, Vrbo, and Travelocity.
• Review: Expedia Group provides a convenient and comprehensive platform for booking travel. Its large inventory and user-friendly interface make it a popular choice for travelers.

3. The Walt Disney Company

• https://thewaltdisneycompany.com/
• The Walt Disney Company is a diversified entertainment and media conglomerate that owns and operates several theme parks, movie studios, and streaming services.
• Review: Disney is a well-known and trusted brand that offers a wide range of family-friendly entertainment. Its theme parks, movies, and TV shows appeal to audiences of all ages.

4. Alphabet Inc.

• https://abc.xyz/
• Alphabet Inc. is the parent company of Google, YouTube, and other technology businesses.
• Review: Google and its products are essential tools for everyday life. Its search engine, Gmail, and YouTube dominate their respective markets.

5. Meta Platforms

• https://about.meta.com/
• Meta Platforms is the parent company of Facebook, Instagram, and WhatsApp.
• Review: Meta's social media platforms are used by billions of people worldwide. They enable users to connect with friends, share news and experiences, and stay entertained.

Origins:

• 1985: IAC was founded as CitySearch by Jonathan Ledecky and Michael Jones.
• 1994: CitySearch went public, raising $27 million.

Acquisitions and Expansion:

• 1995: Acquired Ticketmaster and acquired Match.com.
• 1996: Acquired Home Shopping Network (HSN).
• 1998: Acquired Ask Jeeves.
• 2003: Acquired CollegeHumor and Evite.
• 2005: Acquired About.com.
• 2006: Acquired Vimeo and Dictionary.com.
• 2010: Acquired Gawker Media.

Rebranding and Restructuring:

• 2012: Rebranded from InterActiveCorp to IAC.
• 2013: Spun off HSN as a separate company.
• 2015: Spun off Angie's List as a separate company.
• 2016: Spun off Match Group as a separate company.
• 2017: Spun off Vimeo as a separate company.

Recent History:

• 2018: Acquired Dotdash (formerly About.com).
• 2019: Acquired Serious Eats.
• 2020: Acquired Apartment List.
• 2021: Acquired Daily Burn and The Daily Beast.
• 2022: Acquired Meredith Corporation, including magazines such as Better Homes & Gardens and People.

Key Executives:

• Barry Diller (Chairman and CEO)
• Joey Levin (CEO, IAC Search & Applications)
• Doug Hirsch (CEO, IAC Publishing)
• Jeff Vinik (CEO, IAC Financial Services)

Business Model:

IAC operates as a diversified holding company with businesses in various industries, including:

• Search and Applications (e.g., Ask Jeeves, Dictionary.com)
• Publishing (e.g., Dotdash, The Daily Beast)
• FinTech (e.g., LendingTree)
• Home Services (e.g., Apartment List)
• Media and Entertainment (e.g., Vimeo, Serious Eats)

IAC's strategy focuses on acquiring and developing businesses with strong brands and leadership positions in their respective markets.

2022

• January: IAC acquired Dotdash Meredith, a digital media company, for $2.7 billion.
• February: IAC announced a $2 billion stock buyback program.
• March: IAC launched Angi Financial, a home improvement financing platform.
• April: IAC acquired Vimeo, a video hosting and sharing platform, for $2.75 billion.
• July: IAC sold its stake in MGM Resorts International for $1.6 billion.
• October: IAC acquired Meredith Xcelerated Marketing, a data-driven marketing company.

2021

• January: IAC acquired Care.com, a family care platform, for $500 million.
• March: IAC launched Searchlight Pictures, a film distribution and production company.
• June: IAC acquired LifeLock, an identity theft protection company, for $2.3 billion.
• September: IAC acquired Match Group, an online dating company, for $1.7 billion.
• October: IAC announced the spin-off of ANGI Homeservices, its home services business.

2020

• January: IAC acquired SingSnap, a karaoke app, for $200 million.
• February: IAC launched Peacock, a streaming service, in partnership with NBCUniversal.
• June: IAC acquired HomeAdvisor, a home improvement platform, for $1.4 billion.
• October: IAC launched IAC Search & Media, a search and advertising business.
• November: IAC announced a $1 billion stock buyback program.

IAC Inc.: A Leader in Digital Media and Technology

As a long-time user of IAC Inc.'s suite of digital products, I am thrilled to share my overwhelmingly positive experience. IAC has consistently exceeded my expectations with its innovative platforms, exceptional customer service, and unwavering commitment to user satisfaction.

Comprehensive Digital Portfolio

IAC's vast portfolio of digital businesses covers a wide range of industries, from search engines and social media to online marketplaces and video streaming. This allows me to seamlessly access and engage with a variety of content and services under one umbrella.

Exceptional Platform Design

Each of IAC's platforms is meticulously designed with user experience in mind. The intuitive interfaces, lightning-fast loading times, and personalized recommendations make it a joy to navigate and interact with. Whether I'm browsing Ask.com for information, connecting with friends on Vimeo, or shopping on HomeAdvisor, I always appreciate the seamless and effortless experience.

Unrivaled Customer Support

IAC's customer support team is unmatched in its responsiveness, professionalism, and expertise. Whenever I have a question or encounter an issue, I can count on prompt and helpful assistance. The team goes above and beyond to resolve any concerns, ensuring that my experience remains positive.

Commitment to Innovation

IAC is constantly pushing the boundaries of digital technology. The company invests heavily in research and development, bringing groundbreaking products and features to market. This unwavering commitment to innovation has kept me engaged with IAC's platforms and looking forward to what the future holds.

Community Impact

In addition to its commercial success, IAC is actively involved in giving back to the community. Through its philanthropic initiatives, the company supports organizations dedicated to education, digital literacy, and access to healthcare. This commitment to social responsibility aligns with my values and makes me proud to use IAC's products.

Conclusion

IAC Inc. is a true leader in the digital media and technology industry. Its comprehensive portfolio, exceptional platform design, unrivaled customer support, commitment to innovation, and community impact make it an indispensable part of my digital life. I highly recommend IAC's products and services to anyone looking for a seamless and rewarding digital experience.

Discover the Power of Technology at IAC Inc: Your Gateway to Innovation

Are you ready to embark on a transformative digital journey? Join IAC Inc, the leading provider of cutting-edge technology solutions, and witness firsthand how we empower businesses and individuals alike.

Unleash the Potential of Digital Transformation

IAC Inc is your trusted partner for all your technology needs. Our team of experts leverages the latest advancements to provide tailored solutions that drive innovation and streamline operations. From cloud computing to data analytics, we have the expertise to unlock the full potential of digital transformation.

Harness the Power of Cloud Services

Migrate your business to the cloud with IAC Inc and experience the benefits of increased flexibility, scalability, and cost efficiency. Our cloud services provide seamless access to powerful computing, storage, and networking capabilities, enabling you to focus on your core business objectives.

Unlock the Value of Data Analytics

Make data-driven decisions that propel your business forward. IAC Inc's data analytics solutions empower you with insights into customer behavior, market trends, and operational efficiency. Leverage our expertise to uncover hidden opportunities and optimize your strategies.

Empower Your Workforce with Technology

Enhance your team's productivity and collaboration with IAC Inc's IT consulting services. We design and implement tailored solutions that integrate the latest technologies into your workflows, ensuring seamless communication, efficient knowledge sharing, and a positive work environment.

Elevate Your Customer Experience

Create exceptional customer experiences by partnering with IAC Inc. Our digital marketing and customer relationship management (CRM) solutions empower you to engage with your audience, build lasting relationships, and drive conversions.

Why Choose IAC Inc?

• Expertise and Experience: Our team of seasoned professionals has extensive experience in providing cutting-edge technology solutions.
• Tailored Solutions: We understand every business is unique. We work closely with you to develop tailored solutions that address your specific needs.
• Exceptional Support: Our dedicated support team is available 24/7 to ensure your technology runs smoothly and efficiently.

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IAC Inc.'s Main Suppliers (Upstream Service Providers)

IAC Inc. (NASDAQ: IAC) is an internet and media company operating a portfolio of brands across various sectors, including search, social media, dating, home services, and video content. The company relies on a wide range of suppliers, including technology vendors, content providers, and data analytics companies, to support its operations.

Here is a list of some of IAC Inc.'s main suppliers, along with their respective websites:

Name: Service Provided Website Amazon Web Services (AWS) Cloud Computing www.aws.amazon.com Alphabet (Google) Search Advertising, Video Hosting www.google.com Meta (Facebook) Social Advertising, Data Analytics www.facebook.com Microsoft Software Licensing, Cloud Services www.microsoft.com Netflix Video Streaming www.netflix.com Shopify E-Commerce Platform www.shopify.com ServiceNow Cloud-Based IT Management www.servicenow.com Salesforce Customer Relationship Management (CRM) www.salesforce.com Twilio Cloud Communications www.twilio.com Zendesk Customer Support Software www.zendesk.com

These suppliers play a critical role in enabling IAC Inc. to operate its businesses effectively and provide a high-quality experience to its users. The company maintains strong relationships with these suppliers and continuously evaluates its procurement strategy to ensure that it is obtaining the best value and service.

IAC/InterActiveCorp is a media and internet company that owns a portfolio of brands and businesses. Its main customers are the users of its products and services, which include:

• Consumers: Individuals who use IAC's products and services for personal use, such as search engines, social media, and streaming services.
• Businesses: Companies that use IAC's products and services for business purposes, such as advertising, data analytics, and marketing automation.

IAC's main downstream companies are the businesses that use its products and services to reach their own customers. These companies include:

• Angi: a home services marketplace that connects consumers with home improvement professionals. [Website: https://www.angi.com/]
• Blucora: a technology company that provides tax software and financial services. [Website: https://www.blucora.com/]
• Match Group: a dating company that operates popular dating apps such as Tinder, Match.com, and Hinge. [Website: https://www.matchgroup.com/]
• Vimeo: a video hosting and sharing platform. [Website: https://www.vimeo.com/]
• Dotdash Meredith: a publisher of digital and print magazines, including People, Better Homes & Gardens, and Real Simple. [Website: https://www.dotdashmeredith.com/]

These downstream companies use IAC's products and services to reach their own customers, which in turn generates revenue for IAC.

Key Revenue Streams of IAC Inc.

1. Search & Applications (74% of revenue)

• Subscription revenue: from search services (Ask.com, Vimeo, Dictionary.com) and other applications (Tinder, Match, Hinge, Angi, Care.com)
• Estimated annual revenue: $5.2 billion

2. Home Services (15% of revenue)

• Revenue from home improvement and repair services: through brands like Angi, HomeAdvisor, Handy, LawnStarter, Thumbtack
• Estimated annual revenue: $1.1 billion

3. Dating

• Subscription and other revenue: from online dating platforms (Match, Hinge, OkCupid, PlentyOfFish)
• Estimated annual revenue: $620 million

4. Media & Advertising (9% of revenue)

• Advertising revenue: from digital and offline advertising across IAC's portfolio of websites and apps
• Revenue from content creation: through media brands such as Dotdash Meredith (formerly Meredith Corporation)
• Estimated annual revenue: $590 million

5. Other (2% of revenue)

• Revenue from other businesses, including IAC Films, IAC Ventures, and its corporate segment
• Estimated annual revenue: $140 million

Total Annual Revenue: Approximately $7 billion (as of 2022)

IAC Inc. Key Partners

IAC Inc. has a wide range of key partners that play vital roles in its operations, revenue generation, and overall success. Here are some of the most notable partners:

Marriott International

• Website: https://www.marriott.com/
• Partnership: IAC's Turo subsidiary provides peer-to-peer car rental services to Marriott Bonvoy members, offering them rewards and discounts.

Live Nation

• Website: https://www.livenation.com/
• Partnership: IAC's Ticketmaster subsidiary is the exclusive ticketing partner for Live Nation's concerts and events, generating revenue through ticket sales.

Uber

• Website: https://www.uber.com/
• Partnership: IAC's Vimeo subsidiary offers video hosting and streaming services to Uber's drivers and passengers, providing entertainment and additional revenue streams.

Deutsche Telekom

• Website: https://www.telekom.com/
• Partnership: IAC's Dotdash Meredith subsidiary provides digital content and advertising solutions to Deutsche Telekom's customers, leveraging its vast audience and content expertise.

Apple

• Website: https://www.apple.com/
• Partnership: IAC's Angi subsidiary (formerly Angie's List) offers home services and renovation information to Apple users through the App Store and HomeKit integrations.

Amazon

• Website: https://www.amazon.com/
• Partnership: IAC's HomeAdvisor subsidiary provides home improvement and maintenance services to Amazon customers via the Amazon Services platform.

Google

• Website: https://www.google.com/
• Partnership: IAC's Investopedia subsidiary offers financial education and investment guidance to Google users through search results and integrations.

Microsoft

• Website: https://www.microsoft.com/
• Partnership: IAC's AskMedia subsidiary provides search and information services to Microsoft's Bing search engine, generating advertising revenue for IAC.

Comcast

• Website: https://www.comcast.com/
• Partnership: IAC's Xfinity subscriber base provides customer reach and distribution channels for IAC's digital content and services.

Charter Communications

• Website: https://www.charter.com/
• Partnership: Similar to Comcast, Charter's cable and internet services provide IAC with a platform to distribute its content and services to a wide audience.

These key partners are crucial to IAC's business strategy, enabling the company to access new markets, scale its offerings, and enhance customer value. By leveraging the strengths and resources of these partners, IAC can accelerate its growth and maintain its position as a leading player in the digital media and services industry.

Key Cost Structure of IAC Inc

IAC Inc. is a media and internet company that operates in various segments, including digital media and advertising, search, social, and home services. The company's key cost structure includes the following:

Content and Programming Costs:

• Digital Media and Advertising: Costs associated with acquiring, producing, and distributing digital content across the company's portfolio of websites and platforms, including video, news, and entertainment.
• Search: Costs related to developing and maintaining search engine technologies, including research and development, data center operations, and crawlers.
• Social: Costs associated with operating social media platforms, including server infrastructure, content moderation, and user support.
• Home Services: Costs incurred for providing home services, such as home security, energy monitoring, and home automation.

Estimated Annual Cost:

The exact annual cost of content and programming for IAC Inc. is not publicly disclosed. However, the company reported total revenue of approximately $12.4 billion for the fiscal year 2022. A significant portion of this revenue is allocated to content and programming expenses.

Sales and Marketing Costs:

• Marketing and Advertising: Costs associated with promoting the company's products and services, including advertising campaigns, public relations, and social media marketing.
• Sales: Costs related to the salesforce, including salaries, commissions, and incentives.

Estimated Annual Cost:

IAC's sales and marketing expenses for fiscal 2022 amounted to approximately $2.4 billion.

Technology and Development Costs:

• Research and Development: Costs for developing and improving the company's technologies, including software engineering, product design, and infrastructure.
• Data Center Operations: Costs related to maintaining and operating data centers, including power, cooling, and equipment.

Estimated Annual Cost:

IAC's technology and development expenses for fiscal 2022 totaled approximately $2.1 billion.

General and Administrative Costs:

• Salaries and Benefits: Costs for compensation and benefits of employees in general and administrative roles.
• Rent and Utilities: Costs for office space, utilities, and other facility-related expenses.
• Legal and Professional Fees: Costs for legal services, accounting services, and other professional fees.

Estimated Annual Cost:

IAC's general and administrative costs for fiscal 2022 amounted to approximately $1.6 billion.

Depreciation and Amortization:

• Depreciation: Expenses associated with the allocation of the cost of tangible assets, such as buildings and equipment, over their useful lives.
• Amortization: Expenses related to the allocation of the cost of intangible assets, such as patents and trademarks, over their useful lives.

Estimated Annual Cost:

IAC's depreciation and amortization expenses for fiscal 2022 totaled approximately $0.8 billion.

Total Estimated Annual Cost:

Based on the reported financial data for fiscal 2022, the estimated total annual cost structure of IAC Inc. is approximately $9 billion.

It is important to note that these cost estimates are approximations based on publicly available information. The actual cost structure of IAC Inc. may vary from year to year and may be influenced by various factors, such as changes in business strategy, market conditions, and technological advancements.

Sales Channels

IAC Inc. primarily generates revenue through the following sales channels:

• Online Advertising: This channel includes revenue from display, video, search, and social media advertising across IAC's portfolio of websites, such as Ask.com, Dictionary.com, and The Daily Beast.
• Subscription Revenue: Subscribers pay for premium content, services, and products offered by IAC's businesses, including Tinder, Match.com, and Vimeo.
• E-commerce: IAC sells products and services directly to consumers through its e-commerce platforms, such as Bluecrew, HomeAdvisor, and Shopping.com.
• Software-as-a-Service (SaaS): IAC offers SaaS products and services to businesses and consumers through its subsidiaries, including mParticle, Vimeo OTT, and Ask Media Solutions.
• Other Revenue: This category includes revenue from various sources, such as affiliate marketing, licensing, and data sales.

Estimated Annual Sales

IAC Inc. does not disclose estimated annual sales for specific channels. However, the company reports the following revenue breakdown in its financial statements:

• Revenue from Operations:
  • 2021: $4.43 billion
  • 2020: $3.42 billion
  • 2019: $3.04 billion
• Breakdown by Segment:
  • Core Home and Lifestyle (36% in 2021)
  • Search & Social (32% in 2021)
  • Subscription (22% in 2021)
  • Other (10% in 2021)

Additional Information

• Online Advertising: IAC's online advertising business is driven by the large volume of traffic generated by its websites. The company utilizes programmatic advertising technologies to target specific audiences and deliver personalized ad experiences.
• Subscription Revenue: IAC's subscription revenue is generated primarily from its dating and streaming services. The company offers a range of subscription plans that provide access to exclusive features, content, and benefits.
• E-commerce: IAC's e-commerce platforms offer a wide selection of products and services, including home improvement, healthcare, and business supplies. The company leverages its online media presence to drive traffic to its e-commerce platforms.
• SaaS: IAC's SaaS products and services provide businesses and consumers with tools and solutions for marketing, data analytics, and video streaming. The company focuses on developing innovative SaaS offerings that meet the evolving needs of its customers.

IAC Inc.'s Customer Segments and Estimated Annual Sales

1. Online Advertising

• Audience: Businesses, advertisers, and marketing agencies
• Services: Display ads, search ads, social media ads, video ads
• Estimated Annual Sales: $2.5 billion

2. Match Group

• Audience: Singles seeking romantic partners
• Services: Match.com, Tinder, Hinge, OkCupid
• Estimated Annual Sales: $1.7 billion

3. Vimeo

• Audience: Video creators, businesses, and consumers
• Services: Video hosting, editing, and marketing services
• Estimated Annual Sales: $300 million

4. Dotdash Meredith

• Audience: Women, parents, and lifestyle enthusiasts
• Services: Digital magazines, websites, and content
• Estimated Annual Sales: $650 million

5. Care.com

• Audience: Parents seeking child care, elder care, and home care services
• Services: Caregiver matching, background checks, and payment processing
• Estimated Annual Sales: $200 million

6. IAC Search & Applications

• Audience: Consumers and businesses
• Services: Ask.com search engine, Dictionary.com, Ask Toolbar
• Estimated Annual Sales: $150 million

7. ANGI Homeservices

• Audience: Homeowners and businesses
• Services: Home services marketplace, including repairs, installations, and cleaning
• Estimated Annual Sales: $200 million

8. IAC Ventures

• Audience: Early-stage technology companies
• Services: Investments and mentorship
• Estimated Annual Sales: $50 million

Total Estimated Annual Sales: $6.0 billion

Value Proposition of IAC Inc.

IAC Inc. is an internet and media company with a portfolio of popular brands, including Match Group, Vimeo, and Dotdash. IAC's value proposition is based on its ability to:

• Provide high-quality content and experiences to its users. IAC's brands are known for their high-quality content and engaging experiences. For example, Match Group operates some of the most popular dating websites and apps in the world, including Match.com, Tinder, and Hinge. Vimeo is a leading video hosting and sharing platform, and Dotdash is a publisher of popular websites and magazines on a variety of topics.
• Generate revenue through a variety of channels. IAC generates revenue through a variety of channels, including advertising, subscription fees, and e-commerce. This diversification of revenue streams helps to reduce risk and ensure that IAC is not overly reliant on any one source of income.
• Acquire and grow new users. IAC is constantly acquiring and growing new users for its brands. This growth is driven by a variety of factors, including organic growth, strategic acquisitions, and marketing campaigns.
• Innovate and develop new products and services. IAC is always looking for new ways to innovate and develop new products and services. This innovation is driven by a commitment to providing users with the best possible experience.

IAC's value proposition is based on its ability to provide high-quality content and experiences, generate revenue through a variety of channels, acquire and grow new users, and innovate and develop new products and services. This value proposition has helped IAC to become one of the leading internet and media companies in the world.

Key Components of IAC's Value Proposition

• High-quality content and experiences
• Diversification of revenue streams
• User growth
• Innovation

IAC/InterActiveCorp

Overview

IAC/InterActiveCorp (IAC) is a media and Internet conglomerate that operates a diverse portfolio of businesses, including internet search (Ask.com), social media (Tinder), news and information (The Daily Beast, Newsweek), and home services (Angi, HomeAdvisor).

Risks

Business Risks

• Competition: IAC faces intense competition from other media and Internet giants, such as Alphabet (Google), Amazon, and Meta (Facebook).
• Technological disruption: Rapid technological advancements and changing consumer preferences could disrupt IAC's existing businesses.
• Regulatory risks: IAC's businesses are subject to various regulations, which could impact their operations and profitability. For example, Tinder has faced legal challenges over its data collection practices.
• Content moderation: IAC's platforms host user-generated content, which poses risks related to offensive or inappropriate content, hate speech, and misinformation.

Financial Risks

• Revenue concentration: IAC's revenue is heavily concentrated in a few key businesses, such as Tinder. A decline in the performance of these businesses could significantly impact overall revenue.
• High debt: IAC carries a significant amount of debt, which increases its financial risk and limits its ability to make investments or acquire new businesses.
• Interest rate risk: IAC's debt is variable-rate, meaning that its interest expenses will fluctuate with market rates. Rising interest rates could increase its debt burden.
• Foreign currency risk: IAC operates in multiple countries, exposing it to foreign currency fluctuations that could impact its financial results.

Operational Risks

• Data breaches: IAC handles vast amounts of user data, making it a potential target for hackers and data breaches.
• Operational disruptions: IAC's businesses rely on technology and infrastructure, and disruptions to these systems could impact operations and customer experience.
• Legal and regulatory compliance: IAC's businesses must comply with numerous laws and regulations, failure to do so could result in fines, penalties, or reputational damage.
• Human capital: IAC's success depends on its employees, and the loss of key talent could negatively impact its operations.

Mitigating Factors

IAC has taken steps to mitigate these risks, including:

• Diversifying its business portfolio: IAC's diverse businesses reduce its reliance on any single source of revenue.
• Investing in technology: IAC invests in research and development to stay competitive and adapt to technological changes.
• Managing debt: IAC actively manages its debt and maintains relationships with lenders to mitigate financial risk.
• Data security: IAC implements robust cybersecurity measures and regularly reviews its data protection practices.
• Talent management: IAC values its employees and offers competitive compensation and benefits packages to retain top talent.