IAC/Interactive (IACI) Wednesday morning posted Q1 revenue of $332 million, down 10% from a year ago, but a bit above the consensus at $329.7 million. However, the company lost two cents a share in the quarter on an adjusted basis, worse than the Street estimate for a break-even quarter.
IACI said the weak quarter reflected “broader economic pressures on advertising,” as well as actions taken at Ask.com to improve the user experience which have reduced monetization near term.
IACI bought back 3 million shares for an average $15.15 apiece in the quarter. At quarter end, the company had $2 billion in cash an securities, with just $98.5 million in long-term debt. The company’s market cap is just $2.25 billion; which highlights the usual question for Barry Diller’s Internet conglomerate: what is he going to do with the cash?
No doubt he will use some of it for acquisitions; the fear is that he’ll sink most of it into some ill-advised transaction. Today, the company announced the acquisition of Urbanspoon, an online restaurant guide that aggregates restaurant reviews. Terms of the deal were not disclosed.
IACI Wednesay morning is down 2 cents, at $15.96.