IAC, Inc.: Can Its Traffic Growth & Monetization Efforts Drive Sustained Revenue Growth?

IAC’s recent earnings outlined significant changes and challenges, highlighting both strategic adjustments and the impact of previous business decisions. The company has faced considerable difficulties in two of its principal businesses: Angi Inc. and Dotdash Meredith. For Angi Inc., the shift from a previous $260 million EBITDA to just $35 million was a primary concern. Management undertook significant restructuring, including leadership changes and a refocus on core operations. The past aggressive expansion into the services sector and high capital expenditures proved detrimental, reducing profits and cash flow. Following these adjustments, Angi appears to be stabilizing financially and operationally, setting the stage for potential growth next year. However, the short-term financial outlook was affected by the FCC order, impacting the first quarter’s guidance.