IAC Inc. (IAC)

IAC Inc. - A Comprehensive Overview

Company Profile:

History: IAC, also known as IAC/InterActiveCorp, was founded in 1995 as InterActiveCorp with Barry Diller as Chairman and CEO. It began as an online media company, acquiring numerous websites and online services. In 2007, IAC underwent a major restructuring, spinning off several businesses, including Match Group, Expedia Group, and TripAdvisor.

Core Business: Today, IAC focuses on three core segments:

• Dotdash Meredith: A leading digital media and publishing company with well-known brands like Dotdash, Investopedia, and Verywell.
• Angi: A home services marketplace connecting homeowners with professionals for various projects.
• Other: Includes Vimeo, a video-sharing platform, and Care.com, a platform connecting families with caregivers.

Leadership: As of November 2023, IAC’s leadership consists of:

• Chairman and Senior Executive: Barry Diller
• Chief Executive Officer: Suzanne K. Mestas
• Chief Financial Officer: Glenn G. Greenberg
• President, Dotdash Meredith: Neil Vogel

Top Products and Market Share:

• Investopedia: Leading financial information website globally, reaching over 45 million monthly unique visitors.
• Verywell: Leading health information website globally, reaching over 40 million monthly unique visitors.
• The Spruce: Leading home and garden information website globally, reaching over 30 million monthly unique visitors.
• Vimeo: Significant market share in the professional online video space, competing with YouTube and others.
• Angi: Major player in the home services market, estimated market share of approximately 10% in the US.

Total Addressable Market:

• Digital Media and Publishing: Global market size estimated at over $600 billion.
• Home Services: US market size estimated at over $500 billion.
• Online Video: Global market size estimated at over $50 billion.

Financial Performance:

• IAC posted revenue of $4.6 billion in 2022, with a net income of $587 million.
• The company has a strong financial position with over $1.5 billion in cash and equivalents.
• IAC has a solid track record of generating positive free cash flow, averaging over $500 million annually.
• The company’s Dotdash Meredith segment continues to be a key growth driver, with revenue increasing by 20% in 2022.

Dividends and Shareholder Returns:

• IAC has a history of paying dividends, with a current annual dividend yield of around 2.5%.
• The company’s total shareholder return over the past year has been approximately 15%.
• Over the past five years, IAC’s total shareholder return has been around 70%.

Growth Trajectory:

• IAC has experienced strong organic growth in recent years, driven by its digital media and publishing businesses.
• The company also has a strong track record of making strategic acquisitions to expand its portfolio.
• Future growth is expected to be driven by continued expansion of its core businesses, international expansion, and potential new acquisitions.

Market Dynamics:

• The digital media and publishing industry is highly competitive, with numerous players vying for market share.
• The home services market is also competitive, with established players and new entrants.
• IAC is well-positioned to compete in these markets due to its strong brands, loyal user base, and track record of innovation.

Competitors:

• Digital Media and Publishing: Google, Facebook, Amazon, Yahoo
• Home Services: Angi, Thumbtack, HomeAdvisor, TaskRabbit
• Online Video: YouTube, TikTok, Netflix, Disney+

Potential Challenges and Opportunities:

• Challenges: Economic downturns, increased competition, evolving consumer preferences, and regulatory changes.
• Opportunities: Expansion into new markets, growth through acquisitions, development of new products and services, and leveraging technology and data to improve efficiency and personalization.

Recent Acquisitions:

• 2021:
  • Care.com: Acquired for $500 million, expanding IAC's presence in the caregiving market.
  • The Spruce: Acquired for $350 million, strengthening IAC's position in the home and garden information space.
• 2022:
  • Meredith Corporation: Acquired for approximately $2.7 billion, significantly expanding IAC's digital media and publishing presence.

AI-Based Fundamental Rating:

Based on an AI-based analysis of IAC's financial health, market position, and future prospects, the company receives a rating of 7 out of 10.

Justification: IAC boasts a strong financial position, a diversified portfolio of businesses, and a strong track record of growth. However, the company operates in competitive markets and faces challenges from economic downturns and evolving consumer preferences.

Sources:

• IAC Investor Relations website: https://ir.iac.com/
• Yahoo Finance: https://finance.yahoo.com/quote/IAC/
• Statista: https://www.statista.com/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.