IAC Interactive Has Gone On Sale With Catalysts Looming
Alpha Gen Capital • 10 Comments
Alpha Gen Capital • 10 Comments
IAC/InterActive Corp.: Unlocking The Value Of Tinder - A VC Valuation Exercise
Samuel Harrison • 17 Comments
Samuel Harrison • 17 Comments
Thu, Nov. 3, 8:04 AM
- Shares of Match Group (NASDAQ:MTCH) plunged 12% after its revenue growth disappointed investors’ lofty expectations.
- Rapid growth at Tinder continued to fuel results, adding 284,000 paid subscribers in the third quarter, bringing it to more than 1.5 million users.
- That surge was ahead of the 200,000 increase expected by Wall Street analysts on average.
- Still, investors had likely braced for an even bigger improvement based on recent numbers coming out of app-tracking services, market sources said.
- What’s more, Match Group’s businesses elsewhere looked weaker, including its Princeton Review test-prep service and OKCupid, which appears to be getting cannibalized by Tinder, said BTIG Research analyst Brandon Ross.
- Read more @ NY Post »
Wed, Nov. 2, 4:49 PM
Tue, Nov. 1, 5:35 PM
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Tue, Oct. 11, 3:31 PM
Tue, Sep. 13, 11:27 AM
- Lions Gate Entertainment (LGF -1.4%) has stepped in as the first Hollywood studio to license its programs to the global TV store set up by streamer Vimeo (IAC -1.2%).
- That includes hits like Mad Men and Orange is the New Black but covers virtually all of Lions Gate's nearly 80 series, from Weeds to Nurse Jackie and many more.
- At least some of the studio's movie titles (possibly including such hits as The Hunger Games series) will also join the platform on a U.S. rental basis sometime after launch -- which is set for Oct. 18 in Cannes.
- IAC's Barry Diller says more deals are coming for Vimeo's store: "They are the first of many top Hollywood studios we expect to attract in the months to come.”
Wed, Jul. 27, 4:47 PM
Tue, Jul. 26, 5:35 PM
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Wed, May 4, 5:19 PM
- IAC/InterActive (NASDAQ:IAC): Q1 EPS of $0.42 beats by $0.07.
- Revenue of $819.18M (+6.0% Y/Y) beats by $15.13M.
- Shares +0.01% AH.
Wed, May 4, 11:42 AM
- Match Group (MTCH +22.9%) is soaring after beating Q1 estimates and providing in-line full-year sales guidance, and taking parent InterActiveCorp (IAC +9.7%) along for the ride.
- On its earnings call, the Match.com/OkCupid/Tinder parent guided for 2016 dating revenue of $1.1B-$1.14B, and for non-dating revenue to rise slightly from a 2015 level of $112M. When combined, the figures are in-line with a 2016 revenue consensus of $1.23B. Adjusted EBITDA is expected to rise to $410M-$425M from 2015's $278.7M.
- Match, which along with IAC was hammered following its Q4 report, saw dating revenue (lifted by Tinder's growth and the PlentyOfFish acquisition) rise 24% Y/Y to $260.4M. Paid members rose 36% Y/Y to 5.1M, with Tinder topping 1M paid members.
- Average daily revenue per paid member (ARRPU) fell 10% Y/Y to $0.54, and non-dating revenue was roughly flat due to lower-than-expected SAT test prep course volume. Free cash flow rose to $68.5M from $35.6M a year ago.
- IAC's Q1 report arrives this afternoon.
- Match: Q1 results, earnings release
Tue, May 3, 5:35 PM
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Sun, Apr. 17, 8:56 PM
- With tomorrow's deadline arriving for bidders for core assets of Yahoo (NASDAQ:YHOO), the long-shot bid of Time Inc. (NYSE:TIME) won't be among them, as the company decided fixing the business was too big a task, The Wall Street Journal reports. (It would have also faced severe leveraging trying to swallow the business.)
- With a number of bidders bowing out as expected, Verizon (NYSE:VZ) is indeed a front-runner among the few firms moving forward. Aligning somewhat with a number of other media reports (and rumors), now bowing out for sure are Alphabet (GOOG, GOOGL), Comcast (NASDAQ:CMCSA), AT&T (NYSE:T) and IAC/InteractiveCorp (NASDAQ:IAC), the Journal says.
- It appears Verizon's biggest competition may come from private equity (Bain Capital, TPG, Advent International), reinforcing the strength of Verizon's bid. It was unclear whether KKR would stay in the bidding, and the Daily Mail (OTCPK:DMTGY) may still be in, but with P-E help.
- Now read Why Verizon Is The Clear Front-Runner To Buy Yahoo »
Wed, Feb. 3, 7:30 PM
- Shortly after Yahoo (NASDAQ:YHOO) confirmed it's exploring "additional strategic alternatives" while pushing ahead with a reverse spinoff of its core business, the FT reports Bain, TPG, and other P-E firms are weighing potential bids for core Yahoo. The paper adds AT&T (NYSE:T) and InterActiveCorp (NASDAQ:IAC) "are also believed to be examining the company."
- Many firms are expected to make full or partial bids for core Yahoo. CFO Ken Goldman: "A number of companies have said they want to look at us, and there are a number of private equity firms that are interested in looking at us. I’m not saying that we’ve received offers ... I’m saying parties have expressed interest in us. And what we’re saying is that we’ll be open [to] that.”
- Re/code's Kara Swisher reports Yahoo has hired well-known tech i-banker Frank Quattrone to help it explore options; Goldman Sachs and Morgan Stanley are already on the payroll. "It is clear to us that what is happening inside is very dysfunctional," says an unnamed major investor talking to Swisher.
- Meanwhile, with a sale effort and job cuts already expected, Yahoo fell below $28 in regular trading following its Q4 report and myriad of job cut, writedown, and strategic review announcements. Weak guidance may have weighed: Yahoo guided in its earnings slides (.pdf) for Q1 GAAP revenue of $1.05B-$1.09B and 2016 revenue of $4.4B-$4.6B, below consensus estimates of $1.14B and $4.78B.
2016 ex-TAC revenue guidance of $3.4B-$3.6B is below 2015 ex-TAC revenue of $4.09B, which itself was below 2014's $4.4B. Non-GAAP op. income is expected to drop to $150M-$250M from 2015's $342M and 2014's $755M.
- Also of note: 1) $230M of Yahoo's $4.46B goodwill writedown was related to the $1.1B Tumblr acquisition. On the earnings call (transcript), Yahoo disclosed Tumblr failed to hit the company's $100M 2015 revenue target. 2) Along with everything else, Yahoo has begun exploring the sale of "non-strategic assets" such as patents and real estate. It estimates such sales could yield $1B-$3B in cash by year's end.
- Prior Yahoo coverage
Wed, Feb. 3, 2:13 PM
- InterActiveCorp (IAC -12%) has fallen towards $45 after posting a Q4 miss. Subsidiary Match Group (MTCH -13.5%) had made new post-IPO lows - shares fell below $10 before bouncing a little - after missing Q4 revenue estimates and beating on EPS.
Match's Q4: Match's dating revenue, lifted by Tinder's growth and the PlentyofFish acquisition (closed in early Q4) rose 14% Y/Y to $241.5M. Total revenue, which also includes the Princeton Review, rose 12% to $267.6M.
Tinder and PlentyofFish helped paid members rise by 430K Q/Q and 1.06M Y/Y to 4.61M. However, average daily revenue per paying user (ARPPU) fell by $0.09 Y/Y to $0.53. Match attributes the decline to a "shift towards lower ARPPU (but also lower marketing spend) brands such as Tinder, PlentyOfFish and OkCupid."
2.9M paid members were in North America, and 1.7M elsewhere. For the whole of 2015, Match's free cash flow rose 19% Y/Y to $179.9M.
IAC's Q4: Aside from Match's sales miss, IAC's Q4 sales were hurt by a 13% Y/Y drop in Publishing segment revenue to $179.5M, and an 8% drop in Applications segment revenue to $179.2M. A 28% drop in "Ask & Other" revenue (comes from Ask.com, CityGrid, and ASKfm) weighed on Publishing, and a 31% drop in business partnerships revenue weighed on Applications.
Premium brand publishing revenue rose 14%, and consumer Applications revenue 6%. HomeAdvisor revenue rose 27% to $91.8M (fueled by 51% U.S. growth), and video revenue 13% to $66M. Other revenue rose 7% to $64.8M.
Free cash flow fell 22% Y/Y in 2015 to $285.3M. GAAP operating costs/expenses rose 19% to $854.2M.
- Separately, the NY Post reports IAC is preparing to make a fresh bid for HomeAdvisor rival Angie's List (ANGI +10.9%). Angie's, which has surged above $9.30 today, rejected an $8.75/share IAC offer in November.
- IAC: Q4 results, details, earnings release
- Match Group: Q4 results, earnings release
Tue, Feb. 2, 5:10 PM
- Here's a breakdown of IAC's revenue and Ebitda per business unit:
- Match Group $267.6M (IAC owns ~86% of Match Group).
- Applications $179.2M.
- Publishing $179.5M.
- HomeAdvisor $91.8M.
- Video $66.0M.
- Other $64.8M.
- Adjusted Ebitda:
- Match Group $99.3M.
- Publishing $22.7M.
- Applications $41.7M.
- HomeAdvisor $5.8M.
- Video -$1.4M.
- Other $7.4M.
- Earnings call: Wed. morning at 8:45 AM ET.
- Previously: IAC/InterActive misses by $0.18, misses on revenue (Feb. 2)
Tue, Feb. 2, 4:44 PM
- IAC/InterActive (NASDAQ:IAC): Q4 EPS of $0.75 misses by $0.18.
- Revenue of $848.7M (+2.2% Y/Y) misses by $16.79M.
Thu, Jan. 21, 8:52 AM
- InterActiveCorp (NASDAQ:IACI) is restructuring into six business units: Online dating property owner Match Group (recently went public), home services marketplace HomeAdvisor, a Video unit (contains Vimeo, DailyBurn, CollegeHumor, and other properties), a Publishing unit (contains About.com, Dictionary.com, The Daily Beast, and other properties), an Applications unit (includes desktop software provider SlimWare, iOS app developer Apalon, and IAC's "partner-facing" app business), and an Other segment featuring ShoeBuy and PriceRunner. (8-K filing)
- Barry Diller's company is also changing its symbol from IACI to IAC. CEO Joey Levin: "This year will see IAC focused on continuing its track record of accelerating growth in new markets, assembling strong companies, and backing the leaders who drive them."
- The shakeup comes ahead of IAC's Feb. 2 Q4 report. It also follows remarks from Publishing unit chief Doug Leeds indicating IAC is planning Web media-related acquisitions, and a (rejected) bid for HomeAdvisor rival Angie's List.