IAC’s first quarter results were met with a negative market reaction, reflecting disappointment over both revenue and non-GAAP earnings that fell short of Wall Street expectations. Management attributed the underperformance primarily to sluggish digital advertising, particularly in the programmatic segment, and softer consumer traffic. CEO Neil Vogel noted, “The spot markets have been really erratic...advertising is confidence. Some days, people are feeling confident and some days, they’re not.” The company also highlighted operational progress in its core businesses—including Dotdash Meredith and Care—but acknowledged ongoing macroeconomic uncertainty affecting consumer and advertiser sentiment.
Is now the time to buy IAC? Find out in our full research report (it’s free).
IAC (IAC) Q1 CY2025 Highlights:
- Revenue: $570.5 million vs analyst estimates of $809.2 million (8.6% year-on-year decline, 29.5% miss)
- Adjusted EBITDA: $50.9 million vs analyst estimates of $6.72 million (8.9% margin, significant beat)
- EBITDA guidance for the full year is $267.5 million at the midpoint, above analyst estimates of $251.5 million
- Operating Margin: 6.3%, up from -10.2% in the same quarter last year
- Market Capitalization: $2.91 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions IAC’s Q1 Earnings Call
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Jason Helfstein (Oppenheim): Asked about key product priorities for Dotdash Meredith and capital allocation strategy. CEO Neil Vogel highlighted product launches like the People app and D/Cipher Plus, while COO and CFO Christopher Halpin reiterated a balanced approach between share repurchases and M&A.
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John Blackledge (TD Cowen): Inquired about Q1 revenue trends and the impact of macro factors on DDM’s advertising. Halpin pointed to tough comps and weak programmatic markets, while Vogel noted “premium revenue hold together really, really well.”
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James Heaney (Jefferies): Asked about the strategic objectives for new D/Cipher leadership. Vogel explained that Lawson’s commercial background positions D/Cipher to scale its contextual ad targeting beyond IAC’s owned properties.
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Cory Carpenter (JPMorgan): Queried the impact of Google’s decision to not phase out cookies. Vogel responded that the change has minimal impact, as D/Cipher’s contextual targeting does not rely on cookies, and may even benefit from the stability.
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Tom Champion (Piper Sandler): Sought clarity on Care.com’s consumer-side challenges and improvements. Halpin detailed Care’s focus on product upgrades, pricing flexibility, and more efficient marketing to regain growth in 2026.
Catalysts in Upcoming Quarters
In the upcoming quarters, our team will monitor (1) the commercial rollout and advertiser adoption of D/Cipher Plus, (2) the performance of new direct-to-consumer digital products and their impact on traffic diversification, and (3) progress in optimizing Care.com’s consumer platform and marketing efficiency. Updates on M&A and capital allocation will also be important indicators of IAC’s ability to create shareholder value amid macro headwinds.
IAC currently trades at $36.61, up from $35.38 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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