About Iac/Interactivecorp

IAC/InterActiveCorp (IAC) satisfies inquisitive minds. The internet conglomerate owns more than 150 brands, including search engine DotDash, Dictionary.com, Investopedia, dating sites Match.com and Tinder, About.com, video service Vimeo, and home service provider network ANGI Homeservice. Other IAC holdings include Shoebuy.com, CityGrid and a majority stake in Connected Ventures, the parent company of entertainment site CollegeHumor.com. It also operates current affairs web magazine The Daily Beast. About 70% of the company's revenue comes from the US.

Operations

IAC operates through six main business segments: Match Group, ANGI Homeservice, Publishing, Applications, Video, and Other.

Match Group (40% of IAC's revenue) holds the online dating businesses. Match Group's dating portfolio of more than 45 brands (available in some 40 languages) that include Match, OkCupid, PlentyOfFish, Tinder, Meetic, Twoo, OurTime, BlackPeopleMeet, and FriendScout24.

Applications (about 20% of revenue) consists of Consumer (direct-to-consumer downloadable desktop applications, including SlimWare, and Apalon, which houses IAC's mobile applications); and Partnerships (business-to-business partnership operations). Applications businesses provide search services and a variety of utility applications to users.

ANGI Homeservice (more than 20% of revenue) provides home services digital marketplaces that help connect consumers with home professionals across the US, as well as in Austria, Canada, France, Germany, Italy, the Netherlands, and the UK, under various brands.

Video (about 10% of revenue) consists primarily of Vimeo and DailyBurn, as well as Electus, IAC Films, CollegeHumor, and Notional.

The Publishing segment (about 10% of revenue) includes Dotdash (formerly About.com), Dictionary.com, Investopedia, and The Daily Beast, as well as Ask Media Group and CityGrid.

Other (about 1% of revenue) consists of The Princeton Review, which provides a variety of educational test preparation, academic tutoring, and college counseling services; ShoeBuy.com, an internet retailer of footwear and related apparel and accessories; and PriceRunner, a shopping comparison website.

 

Geographic Reach

IAC, based in New York City, has operations in North America, Europe, Latin America, Australia, and Asia. The US accounts for 70% of revenue.

Sales and Marketing

IAC markets its services through a wide variety of activities including traditional marketing, television, print, and radio advertising, public relations, and e-mail campaigns. 

Google is IAC's biggest customer, supplying about a fifth of its revenue.

Financial Performance

Except for a hiccup in 2016, IAC's revenue has marched steadily higher over the past decade, hitting a company high in 2017. Net income has been more volatile, including three years of net losses (including 2016) in the past 10 years.

Revenue rose 5% to $3.3 billion in 2017 from $3.14 billion in 2016. The increase was driven by 48% higher sales from ANGI Homeservices (helped by the Angie's List acquisition), a 19% increase from Match Group (boosted by more subscribers to Tinder), and a 21% rise in Video (driven by the release of Oscar-nominated Lady Bird and growth at Vimeo). Applications and Other recorded less revenue year-to-year.

IAC in 2017 maintained a five-year trend in reducing cost of revenue, helping it rebound to a $304.9 million profit after losing about $41 million in 2016.

The company added to its cash holdings in 2017, building the amount on hand to $1.6 billion compared to $1.4 billion in 2016. Operations and investing activities added to the IAC's cash while the company used money in financing activities, year-to-year.

Strategy

In 2017, IAC added considerable bulk to its home services segment, acquiring Angie's List and combining it with its HomeAdvisor unit. Also added were several European home service companies. Renamed ANGI Homeservices, it became a significant part of IAC's revenue stream. The company has maneuvered sales people into position to handle increased traffic from consumers, and the additional service providers who have listed on the platform. Activity on mobile apps has increased from consumers and service providers.

In its Match unit, IAC is focused on international expansion, adding products for specific audiences, and refreshing marketing and products to reinvigorate the more mature brands in the portfolio.

The company extended its service agreement with Google in 2016 to run through 2020. IAC plans to continue to introduce new and enhanced content, products and services in response to evolving trends and technologies. It has also introduced technologies that can block the display of online advertisements across platforms (particularly and increasingly in the case with mobile platforms) and that provide users with the ability to opt out of advertising products. 

Mergers and Acquisitions

In 2017 IAC bought Angie's List for $500 million and merged it with its Home Advisor unit, creating a leading brand in the home services market. The company expects to save as much as $250 million a year by consolidating business operations. 

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Iac/Interactivecorp

555 W 18th St
New York, NY 10011-2822
Phone: 1 (212) 314-7300

Stats

  • Employer Type: Public
  • Stock Symbol: IAC
  • Stock Exchange: NASDAQ
  • CEO: Joseph Levin
  • Vice Chairman: Victor A. Kaufman
  • CEO: Joseph Levin
  • 2017 Employees: 7,000

Major Office Locations

  • New York, NY

Other Locations

  • Newark, CA
  • Oakland, CA
  • San Francisco, CA
  • West Hollywood, CA
  • Washington, DC
  • Chicago, IL
  • Vale, NC
  • Greenville, OH
  • Moscow, Russia
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