IAC INC. Page 1 of 17
IAC REPORTS Q4 2021 - Q4 REVENUE INCREASES 52% TO $1.2 BILLION
NEW YORK- February 15, 2022-IAC (NASDAQ: IAC) released its fourth quarter results today and separately posted a letter to shareholders from IAC CEO Joey Levin on the Investor Relations section of its website at ir.iac.com.
IAC SUMMARY RESULTS
($ in millions except per share amounts)
Q4 2021 | Q4 2020 | Growth | FY 2021 | FY 2020 | Growth | |||||||
Revenue | $ 1,159.4 | $ | 765.0 | 52% | $ 3,699.6 | $ 2,764.5 | 34% | |||||
Operating loss | (61.7) | (22.1) | -179% | (129.5) | (537.7) | 76% | ||||||
Unrealized gain on investment in MGM | 102.1 | 576.2 | -82% | 789.3 | 840.6 | -6% | ||||||
Net earnings | 18.7 | 509.1 | -96% | 603.3 | 269.7 | 124% | ||||||
Diluted EPS | 0.20 | 5.59 | -96% | 6.37 | 2.97 | 115% | ||||||
Adjusted EBITDA | 11.2 | 50.6 | -78% | 114.9 | 105.2 | 9% | ||||||
See reconciliations of GAAP to non-GAAP measures beginning on page 12.
Q4 2021 HIGHLIGHTS
- On December 1, 2021, Dotdash completed the acquisition of Meredith Holdings Corp. ("Meredith"), owner of brands such as PEOPLE, Better Home & Gardens, FOOD & WINE, Allrecipes, Southern Living, InStyle and REAL SIMPLE, in an all cash transaction at a purchase price of $2.7 billion. Q4 2021 and full year 2021 include December 2021 results of Meredith.
- Dotdash Meredith revenue increased 240% year-over-year to $252 million, including $170 million from Meredith post acquisition. Dotdash standalone revenue increased 11%, the 19th consecutive quarter of double-digit growth.
- Pro Forma revenue was $645 million in Q4 2021 and Pro Forma Digital revenue was $304 million (up 2% year-over-year). Full year 2021 Pro Forma Digital revenue was $1 billion, up 24% year-over-year.
- Operating loss of $30 million and Adjusted EBITDA loss of $7 million reflect transaction-related items of $73 million for associated with the acquisition of Meredith.
- Angi Inc. revenue increased 16% year-over-year to $416 million, the 5th consecutive quarter of double-digit growth.
- Angi Services revenue was $113 million in Q4 2021, increasing 116% year-over-year and up over 100% for the 3rd straight quarter. Full year 2021 Angi Services revenue was $358 million, up 120% year-over-year.
- Monetized Transactions increased 3% year-over-year to 4 million.
- Emerging & Other revenue increased 42% to $211 million reflecting:
- $87 million from Care.com, up 19% year-over-year.
- 104% year-over-year growth from Bluecrew and Vivian Health on a combined basis.
- IAC holds 59 million shares of MGM Resorts International ("MGM"). IAC's Net earnings and EPS reflect increases or decreases in MGM's share price in the quarter as unrealized gains and losses. As a result, Net earnings and EPS can be very volatile, which reduces their ability to be effective measures to assess operating performance. IAC's stake in MGM was purchased for $1.0 billion in Q2 and Q3 2020 and is worth $2.6 billion as of February 14, 2022. In addition, IAC announced on February 14, 2022 it will purchase an additional 4.5 million shares at $45 per share for a total aggregate amount of $202.5 million.
Page 2 of 17
DISCUSSION OF FINANCIAL AND OPERATING RESULTS
($ in millions, rounding differences may occur) | Q4 2021 | Q4 2020 | Growth | |||
Revenue | ||||||
Dotdash Meredith | $ | 252.4 | $ | 74.2 | 240% | |
Angi Inc. | 415.9 | 359.3 | 16% | |||
Search | 280.3 | 182.4 | 54% | |||
Emerging & Other | 211.4 | 149.2 | 42% | |||
Inter-segment eliminations | (0.5) | (0.0) | -969% | |||
Total Revenue | $ | 1,159.4 | $ | 765.0 | 52% | |
Operating(loss) income | ||||||
Dotdash Meredith | $ | (29.6) | $ | 28.4 | NM | |
Angi Inc. | (28.9) | (4.7) | -516% | |||
Search | 34.3 | 16.0 | 114% | |||
Emerging & Other | 1.2 | (8.9) | NM | |||
Corporate | (38.7) | (52.9) | 27% | |||
Total Operating loss | $ | (61.7) | $ | (22.1) | -179% | |
Adjusted EBITDA | ||||||
Dotdash Meredith | (7.4) | 30.9 | NM | |||
Angi Inc. | (3.3) | 42.0 | NM | |||
Search | 34.3 | 16.9 | 103% | |||
Emerging & Other | 11.8 | (7.1) | NM | |||
Corporate | (24.2) | (32.2) | 25% | |||
Total Adjusted EBITDA | $ | 11.2 | $ | 50.6 | -78% | |
Please refer to the IAC Q4 2021 shareholder letter for January 2022 monthly metrics.
Page 3 of 17 | |||||
Dotdash Meredith | |||||
Revenue | |||||
Q4 2021 | Q4 2020 | Growth | |||
($ in millions; rounding differences may occur) | |||||
Revenue | |||||
Digital | $ | 163.2 | $ | 74.2 | 120% |
92.0 | - | NM | |||
Intra-segment eliminations | (2.9) | - | NM | ||
Total | $ | 252.4 | $ | 74.2 | 240% |
Pro Forma Digital | $ | 303.7 | $ | 297.6 | 2% |
Pro Forma Print | 349.1 | 376.5 | -7% | ||
Pro Forma intra-segment eliminations | (8.3) | (6.8) | -22% | ||
Pro Forma Total | $ | 644.6 | $ | 667.3 | -3% |
- Revenue increased 240% to $252.4 million due primarily to the addition of $169.9 million from Meredith post acquisition and 11% growth from the Dotdash standalone business (driven primarily by 16% growth from Display Advertising revenue)
Operating (Loss) Income and Adjusted EBITDA
Q4 2021 | Q4 2020 | Growth | |||
($ in millions; rounding differences may occur) | |||||
Operating (Loss) Income: | |||||
Digital | $ | 29.6 | $ | 28.4 | 4% |
1.1 | - | NM | |||
Other | (60.3) | - | NM | ||
Total | $ | (29.6) | $ | 28.4 | NM |
Adjusted EBITDA: | |||||
Digital | $ | 42.5 | $ | 30.9 | 38% |
10.2 | - | NM | |||
Other | (60.2) | - | NM | ||
Total | $ | (7.4) | $ | 30.9 | NM |
- Operating loss was $29.6 million compared to income of $28.4 million in Q4 2020 reflecting:
Page 4 of 17
- Adjusted EBITDA declining $38.3 million to a loss of $7.4 million due primarily to $73.0 million of transaction-related costs, including charges related to double-triggerchange-in-control payments, associated with the acquisition of Meredith
- $14.0 million higher amortization of intangibles and $4.2 million higher depreciation driven by the acquisition of Meredith
Angi Inc.
Please refer to the Angi Inc. Q4 2021 earnings release for further detail.
Search
- Revenue increased 54% to $280.3 million due to a 74% increase at Ask Media Group as a result of higher and more efficient marketing driving increased visitors to ad supported search and content websites, partially offset by a 17% decrease at Desktop (legacy desktop search software business)
- Operating income increased 114% to $34.3 million due primarily to 103% higher Adjusted EBITDA driven by the higher Ask Media Group revenue and lower Desktop marketing
Emerging & Other
- Revenue increased 42% to $211.4 million due primarily to:
- IAC Films revenue increasing $33.1 million due primarily to The Tragedy of Macbeth and The Humans
- Care.com revenue increasing 19% to $87.0 million
- Growth from Bluecrew, Vivian Health and The Daily Beast
- Operating income was $1.2 million as compared to a loss of $8.9 million in Q4 2020 reflecting:
- Adjusted EBITDA of $11.8 million as compared to a loss of $7.1 million in Q4 2020 due primarily to profits at Care.com (Q4 2020 results included $8.5 million of transaction-related items) and profits at IAC Films and Vivian Health (compared to losses in Q4 2020)
- $9.3 million higher amortization of intangibles driven by Care.com
Page 5 of 17
Corporate
- Operating loss decreased $14.2 million to $38.7 million due to:
- $8.0 million lower Adjusted EBITDA losses due primarily to lower compensation costs and $2.2 million of transaction-related costs in connection with the spin-off of Vimeo in Q4 2020
- $6.6 million lower stock-based compensation expense due primarily to a decrease in modification charges in Q4 2021 compared to Q4 2020
Income Taxes
The Company recorded an income tax benefit of $10.2 million in Q4 2021 due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards, partially offset by non-deductibletransaction-related items associated with the acquisition of Meredith. The Company recorded an income tax provision of $50.7 million in Q4 2020 for an effective tax rate of 9%, which is lower than the statutory rate due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards.
Free Cash Flow
For the twelve months ended December 31, 2021, net cash provided by operating activities attributable to continuing operations increased $5.5 million to $118.9 million due primarily to higher Adjusted EBITDA although Free Cash Flow decreased $24.0 million to $28.7 million due to higher capital expenditures.
($ in millions, rounding differences may occur) | Twelve Months Ended December 31, | ||||
2021 | 2020 | ||||
Net cash provided by operating activities attributable to continuing operations | $ | 118.9 | $ | 113.4 | |
Capital expenditures | (90.2) | (60.7) | |||
Free Cash Flow | $ | 28.7 | $ | 52.7 |
VIDEO CONFERENCE CALL
IAC and Angi Inc. will live stream a joint video conference to answer questions regarding their fourth quarter results on Wednesday, February 16, 2022, at 8:30 a.m. Eastern Time. This live stream will include the disclosure of certain information, including forward-looking information, which may be material to an investor's understanding of IAC and Angi Inc.'s business. The live stream will be open to the public at ir.iac.com or ir.angi.com.
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
IAC/InterActiveCorp published this content on 15 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2022 21:06:07 UTC.
