NASDAQ$IAC

IAC Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

IAC's Q3 2022 earnings reflected revenue increase and strategic progress.

IAC reported a revenue increase of 6% to $1.3 billion, driven by growth at Dotdash Meredith and Angi Inc., while facing challenges at Care.com. The company is focused on investing in growth initiatives and managing costs effectively.

  • IAC revenue increased 6% year-over-year to $1.3 billion.
  • Dotdash Meredith revenue grew 7%, driven by digital advertising and print subscription growth.
  • Angi Inc. revenue increased 16% year-over-year.
  • Care.com revenue decreased 13% year-over-year.

Headline financials

Total Revenue

$1.3B

Previous: $924M+40.8%
EPS (adj)

-$0.74

Previous: $0.65-213.8%
Capital Expenditures

-$113M

Previous: -$69.4M-62.6%
Free Cash Flow

-$177M

Previous: -$8.71M-1928.0%
Net Income

-$63.8M

Previous: $60.7M-205.2%
Operating Income

-$125M

Previous: -$32.1M-288.8%
Gross Profit

$847M

Previous: $593M+43.0%
Cash & Equivalents

$1.61B

Previous: $3.4B-52.8%
Total Assets

$10.4B

Previous: $9.43B+10.8%

Revenue & EPS history

IAC · Revenue · Quarterly

$1.3B

Q3 2022+40.8%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

IAC · $282M total across 3 segments · Q3 2022

  • Search
    $167M
  • Care.com
    $76.3M
  • Emerging & Other
    $39M

Forward guidance

IAC expects continued revenue growth in key segments, driven by strategic investments and operational improvements. The company anticipates ongoing challenges in certain areas but remains focused on long-term value creation.

Tailwinds

  • Continued growth in Dotdash Meredith's digital advertising revenue.
  • Expansion of Angi Inc.'s service offerings and user base.
  • Focus on profitability and cost management across all segments.
  • Investment in emerging businesses with high growth potential.
  • Strong balance sheet providing flexibility for strategic initiatives.

Headwinds

  • Ongoing challenges in the Care.com business due to market competition.
  • Potential impact of macroeconomic factors on consumer spending.
  • Increased marketing expenses to drive growth in key segments.
  • Uncertainty regarding regulatory changes affecting the online services industry.
  • Integration risks associated with acquisitions and strategic partnerships.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.1%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+17.0%

Q2 2018

Best reaction

-16.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.2%-2.4%-6.4%
Q4 2025+2.9%-0.8%+2.9%
Q3 2025-1.7%+2.1%+11.1%
Q1 2025-3.6%+4.7%+2.6%
Q4 2024+5.8%+14.7%+8.7%
Q3 2024-9.9%-12.2%-13.5%
Q2 2024+7.7%+9.9%+14.4%
Q1 2024-1.2%-1.2%-10.2%
Q4 2023+9.0%+11.4%+0.1%
Q3 2023+1.3%+2.5%+8.4%
Q2 2023-16.8%-13.0%-20.0%
Q1 2023+10.9%+6.8%+8.2%
Q4 2022+3.6%+1.0%-2.4%
Q3 2022-4.5%+10.0%+2.3%
Q2 2022-5.9%-2.6%-17.6%
Q1 2022+2.5%+5.6%+14.5%
Q4 2021-8.2%-16.8%-21.4%
Q3 2021-5.3%-8.1%-17.1%
Q2 2021-0.9%-2.8%-2.0%
Q1 2021+3.7%+1.9%-1.1%
Q4 2020+1.2%+7.9%+1.0%
Q3 2020+6.6%+1.7%+11.0%
Q2 2020-9.1%-7.2%-5.3%
Q1 2020+3.5%+4.8%+24.3%
Q4 2019-3.8%-7.0%-22.0%
Q3 2019-0.6%-0.8%-2.7%
Q2 2019+10.1%+5.1%+5.0%
Q1 2019+2.6%+0.1%+1.1%
Q4 2018+4.4%+7.6%+0.5%
Q3 2018-5.5%-8.7%-9.1%
Q2 2018+17.0%+22.6%+29.1%
Q1 2018+3.3%+4.2%+14.0%
Q4 2017-5.1%-1.1%+13.3%
Q3 2017-2.9%-3.9%-3.7%
Q2 2017+7.0%+1.4%+8.0%
Q1 2017+1.6%+4.5%+12.1%
Q4 2016+5.9%+9.4%+7.4%
Q3 2016+0.8%+0.1%+1.0%
Q2 2016-4.9%-2.8%-5.4%
Q1 2016+12.2%
Q4 2015+3.0%
Q3 2015-0.6%
Q2 2015-1.2%
Q1 2015+2.7%
Q4 2014+1.9%
Q3 2014+0.1%
Q2 2014-5.2%
Q1 2014+0.4%
Q4 2013+2.5%
Q3 2013+3.5%
Q2 2013+1.0%
Q1 2013-0.9%
Q4 2012+0.5%
Q3 2012-0.3%
Q2 2012+1.2%
Q1 2012-0.3%
Q4 2011+3.2%
Q3 2011-3.7%
Q2 2011-6.0%
Q1 2011-0.2%
Q4 2010+0.4%
Q3 2010+0.2%
Q2 2010+0.9%
Q1 2010+0.2%

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