IAC’s fourth quarter was marked by a year-on-year revenue decline but a modest beat on top-line consensus, while non-GAAP profit fell sharply short of Wall Street’s expectations. Management attributed the quarter’s results to rapid declines in traditional web traffic, ongoing print weakness, and the effects of AI-driven changes in digital publishing. CEO Barry Diller emphasized, “People grew digital revenue by 14%, defying the expectations of all the digital publishing doubters,” underscoring the company’s ability to deliver growth despite industry headwinds. The company’s ongoing transition toward diversified, off-platform revenue streams was cited as a key mitigator against further declines.

Is now the time to buy IAC? Find out in our full research report (it’s free for active Edge members).

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 From IAC’s Q4 Earnings Call

• Ross Sandler (Barclays) questioned the sustainability of non-session-based revenue growth; CEO Neil Vogel pointed to investments in new distribution channels and a shift away from Google dependency as key enablers.
• Jason Helfstein (Oppenheimer) asked about M&A strategy and the rationale behind recent MGM investments; Chairman Barry Diller highlighted MGM’s unique asset base and long-term value potential, while indicating limited appetite for new acquisitions at current valuations.
• Justin Patterson (KeyBanc) focused on the scalability of new consumer experiences at People and investment levels; Vogel described early success in app engagement and branded games, with further resource reallocation planned for these initiatives.
• John Blackledge (TD Cowen) sought clarity on EBITDA guidance drivers and free cash flow conversion; COO and CFO Christopher Halpin detailed the impact of litigation expenses and working capital normalization on the outlook.
• Cory Carpenter (JPMorgan) inquired about the Google litigation timeline and business simplification progress; management outlined expectations for litigation costs and ongoing efforts to streamline operations and reduce overhead.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory analyst team will be monitoring (1) the pace at which IAC’s new direct-to-consumer products and digital apps gain traction, (2) the resolution and potential financial impact of ongoing Google ad tech litigation, and (3) the ability of emerging platforms like D/Cipher and Vivian to drive incremental growth and profitability. Execution on off-platform monetization and continued cost discipline will also be critical to future performance.

IAC currently trades at $36.53, in line with $36.80 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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