IAC/InterActiveCorp (IAC) satisfies inquisitive minds. The internet conglomerate owns more than 150 brands, including search engine Ask.com, local guide Citysearch (part of advertising network CityGrid Media), dating site Match.com, About.com, video service Vimeo, and home service provider network HomeAdvisor. Other IAC holdings include Shoebuy.com, Dictionary.com, and a majority stake in Connected Ventures, the parent company of entertainment site CollegeHumor.com. It also operates current affairs Web magazine Daily Beast and publishes Newsweek magazine through its majority-owned The Newsweek/Daily Beast Company.
The company operates through six main business segments: Match Group, HomeAdvisor, Publishing, Applications, Video, and Other.
Match Group (32% of IAC's total revenue in 2015) includes the dating and non-dating businesses. Match Group operates a dating business that consists of a portfolio with more than 45 brands (available in 38 languages). Brands include Match, OkCupid, PlentyOfFish, Tinder, Meetic, Twoo, OurTime, BlackPeopleMeet and FriendScout24. It also operates a non-dating business through Match Group’s ownership of The Princeton Review, which provides a variety of educational test preparation, academic tutoring and college counseling services.
Applications (24%) consists of Consumer (direct-to-consumer downloadable desktop applications, including SlimWare, and Apalon, which houses mobile applications); and Partnerships (business-to-business partnership operations). Applications businesses provide search services and a variety of utility applications to users.
HomeAdvisor (10%) provides home services digital marketplace that helps connect consumers with home professionals across the US, as well as in France and the Netherlands, under various brands. HomeAdvisor connects consumers, by way of proprietary and patented technologies, with home services professionals, most of whom are pre-screened and customer rated.
Video (7%) consists primarily of Vimeo and DailyBurn, as well as Electus, IAC Films, CollegeHumor, and Notional.
Other (6%) consists of ShoeBuy.com, an Internet retailer of footwear and related apparel and accessories, and PriceRunner, a shopping comparison website.
Focused in the areas of search, applications, online dating, local and media, IAC's family of websites is one of the largest in the world, with more than a billion monthly visits across more than 30 countries.
IAC has operations in North America, Europe, Latin America, Australia, and Asia. The US accounted for 74% of total revenue in 2015.
Sales and Marketing
The company markets its services through a wide variety of activities including traditional marketing, television advertising, print advertising, and radio advertising, public relations, and e-mail campaigns. It spent about $1.2 billion on advertising and marketing promotions during fiscal 2015.
A significant component of the company's revenue is attributable to a services agreement with Google. In fiscal 2015 IAC earned revenue of about $1.3 billion from Google.
The company has recorded an increasing trend in net revenues over the last five years.
In fiscal 2015, net revenue was $3.23 billion, up by 4% compared to 2014 due to sales increases in all the company’s segments except for Publishing and Applications.
Match Group revenue increased driven by higher Dating revenue attributable to growth in Direct revenue. Direct revenue growth was primarily driven by higher average paid member count in both North America and International results, due mainly to Tinder, partially offset by lower average revenue per paying user due to brand mix shifts and foreign exchange effects. Non-dating revenue increased due to the full year contribution from The Princeton Review, which was acquired in 2014.
HomeAdvisor revenue rose due to growth of HomeAdvisor's US business, partially offset by international declines due primarily to the restructuring of certain European operations in 2014. HomeAdvisor domestic revenue growth was driven by higher service requests and an increase in paying service professionals.
Publishing revenue decreased due to lower Ask & Other revenue, partially offset by higher Premium Brands revenue. Ask & other revenue decreased primarily to a drop in revenue from Ask.com and certain legacy businesses. Premium Brands revenue increased due primarily to strong growth at About.com and Investopedia.
Applications revenue decreased due to a decline in Partnerships, partially offset by Consumer growth driven by higher revenue from downloadable desktop applications (including SlimWare) and a full year contribution from the Apalon mobile applications business, which was acquired in 2014.
Video revenue grew due primarily to strong growth from Vimeo, DailyBurn, and Electus.
Other revenue decreased due to lower revenue from PriceRunner.
In fiscal 2015, IAC's net income of $119.47 million was down 71% compared to 2014. This decrease was due to an increase of $82 million in amortization of intangibles (related to certain trade names of certain Ask & Other direct marketing brands, including Ask.com); $45.8 million in stock-based compensation expense; and $14.1 million in goodwill impairment. This was partially offset by an increase in gains of $2.1 million in acquisition-related contingent consideration fair value adjustments and a decrease in earnings from discontinued operations.
Cash from operating activities was $349.4 million, down 18%, due to the changes in income taxes payable, accounts receivable, and other assets.
In 2015 the company extended its service agreement with Google. 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. HomeAdvisor partnered with Google to allow homeowners to book appointments with home service professionals through Google search results.
That year it opened offices in Indianapolis and Downtown Denver.
In addition IAC has been expanding its business and brands portfolio through acquisitions.
Mergers and Acquisitions
In 2015, the company acquired Plentyoffish Media, a leading provider of subscription-based and ad-supported online personals servicing North America, Europe, Latin America and Australia, for $575 million.
That year IAC made a bid to acquire Angie's List which was rejected.