IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $4.08B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -12.78%
• EPS Growth: -343.35%
• Country: US
• Employees: 9,500
• Sector: Communication Services
• Sector Strength: 80
• Industry: Interactive Multi-Media
• EPS (TTM): -6.44
• Shares Outstanding: 77,493,835
• 10 Day Avg. Volume: 1,244,896
• 30 Day Avg. Volume: 1,319,534
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.06
• Price to Cash Flow (P/CF): 9.20
• P/FCF Ratio: 9.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $67.56
• Price Target Upside: 37.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

IAC's overall stock score reflects its mixed financial performance, positive technical analysis, and strategic earnings call guidance. Strengths include a solid balance sheet and positive market momentum. However, challenges in profitability and valuation concerns due to a negative P/E ratio weigh on the score.

Positive Factors

Digital Revenue Growth

Dotdash was a bright spot again in the quarter, with proforma digital revenue growth of 9.5% vs. prior expectations in the 7-8% range.

Free Cash Flow

IAC is expected to generate significant free cash flow of $292 million in 2025, rising to $295 million in 2026, the most in over a decade.

Strategic Initiatives

Investors appeared to be placated by commentary around a focus on internal reinvestment, along with the clear statement that buybacks are once again on the table.

Negative Factors

Price Target Adjustment

The price target is decreased to $64 from $70, based on a sum-of-the-parts analysis and the impact of lower numbers.

Quarterly Revenue Decline

4Q24 revenue is forecast to decline 11.8% year-over-year, reflecting declines in ANGI, Search, and Emerging & Other revenues.

Revenue Guidance

The outlook had a lot more noise, but the general takeaway was a relatively underwhelming 1Q25 revenue guide for both DDM and Care.

IAC/InteractiveCorp. Business Overview & Revenue Model

Company Description

IAC/InteractiveCorp (IAC) is a leading media and internet company that operates a diverse collection of businesses across various sectors, including digital media, online services, and technology products. With a focus on innovation and growth, IAC has built a robust portfolio of brands and companies, leveraging its expertise in digital transformation to deliver value to consumers and stakeholders. The company's core products and services span online dating, digital publishing, home services, and video platforms, establishing IAC as a significant player in the digital landscape.

How the Company Makes Money

IAC/InteractiveCorp generates revenue through a variety of channels aligned with its diverse business portfolio. A substantial portion of its income is derived from digital advertising across its media platforms and websites, which attract significant user engagement and traffic. Additionally, IAC earns money through subscription services and premium memberships, particularly in its online dating segment with brands like Match Group, which includes popular dating platforms such as Tinder and Match.com. The company also benefits from transaction fees and service charges in its home services and marketplaces segment. IAC's strategic acquisitions and investments in high-growth potential companies further contribute to its financial performance, enabling it to capitalize on emerging opportunities in the digital space. Key partnerships and collaborations with other tech and media companies bolster its market presence and revenue-generating capabilities.

IAC/InteractiveCorp. Financial Statement Overview

Summary

IAC/InteractiveCorp demonstrates a mixed financial performance. The income statement highlights challenges with profitability and inconsistent revenue growth. The balance sheet is a strength, with a solid equity position and no current debt burden. Cash flow analysis indicates improving free cash flow and solid operating cash flow, though historical volatility suggests potential risks. Overall, while the company has a strong financial foundation, it faces challenges in achieving consistent profitability and growth.

Income Statement

The income statement reveals fluctuating revenue and profitability. The gross profit margin remains strong, indicating efficient cost management relative to revenue. However, the net profit margin is negative in recent years due to declining net income, highlighting profitability challenges. Revenue growth is inconsistent, with some years experiencing declines, pointing to potential market or operational issues. The negative EBIT and EBITDA margins suggest operating inefficiencies and potential restructuring needs.

Balance Sheet

The balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The company carries no debt as of the latest report, reducing financial risk. However, past years indicate fluctuating debt levels. The return on equity has been negative in recent periods due to net losses, but the strong stockholders' equity suggests potential for future recovery and growth.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth, particularly in the latest year, contributing to financial flexibility. Operating cash flow to net income ratio is positive, reflecting effective cash generation from operations despite negative net income in some years. However, historical variability in free cash flow suggests potential volatility in cash generation capacity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.77B	3.81B	4.37B	5.24B	3.70B	2.76B
	Gross Profit
2.92B	2.75B	3.02B	3.31B	2.39B	2.04B
	EBIT
-282.02M	-4.23M	-260.76M	-362.02M	-17.61M	-272.52M
	EBITDA
-1.06B	-4.23M	1.10B	-906.45M	949.66M	486.01M
	Net Income Common Stockholders
-1.04B	-539.90M	265.94M	-1.20B	597.55M	269.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	1.80B	1.45B	1.66B	2.14B	3.59B
	Total Assets
9.55B	9.55B	10.37B	10.39B	12.61B	9.16B
	Total Debt
1.97B	1.97B	2.49B	2.05B	2.08B	712.28M
	Net Debt
168.68M	168.68M	1.19B	632.37M	-42.49M	-2.65B
	Total Liabilities
3.24B	3.97B	3.58B	3.79B	4.84B	1.78B
	Stockholders Equity
5.58B	5.58B	6.08B	5.93B	7.18B	6.60B
Cash Flow		Free Cash Flow
-172.36M	289.01M	48.16M	-222.54M	46.74M	93.86M
	Operating Cash Flow
-47.94M	354.52M	189.53M	-82.79M	136.95M	154.58M
	Investing Cash Flow
-2.97B	276.82M	-87.47M	-494.81M	-2.90B	-1.87B
	Financing Cash Flow
1.67B	-129.10M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Positive. The current price of 48.97 is above the 20-day moving average (MA) of 46.20, above the 50-day MA of 44.60, and above the 200-day MA of 48.08, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 87.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAC.

IAC/InteractiveCorp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	75 Outperform	$22.35B	19.17	79.84%	―	6.64%	69.85%
IAC	63 Neutral	$4.08B	―	-9.29%	―	-12.78%	-343.35%
MTCH	62 Neutral	$7.83B	15.67	-865.98%	0.61%	3.41%	-10.41%
TRIP	61 Neutral	$2.12B	914.55	0.55%	―	2.63%	-58.77%
Sector *	59 Neutral	$30.02B	0.85	-18.80%	4.01%	2.14%	-50.70%
ANGIV	57 Neutral	$824.01M	23.08		―	-17.69%	―
ZG	57 Neutral	$17.76B	―	-2.39%	―	14.96%	29.56%

IAC/InteractiveCorp. Corporate Events

IAC Expands Share Repurchase Program by 10 Million

On March 16, 2025, IAC Inc. announced an increase in its share repurchase program, allowing the company to repurchase up to an additional 10 million shares. This strategic move provides IAC with the flexibility to manage its capital needs and respond to market conditions, potentially enhancing shareholder value and strengthening its market position.

IAC/InteractiveCorp’s Dotdash Meredith Releases Financial Statements

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, has released its consolidated financial statements for the years ending December 31, 2024, and 2023. The independent audit conducted by Ernst & Young LLP concluded that the financial statements present a fair view of the company’s financial position, adhering to U.S. accounting standards. The audit report highlights the company’s ability to continue as a going concern and notes the management’s responsibility for financial statement preparation and internal controls.

IAC/InteractiveCorp Reports Q4 2024 Financial Results

IAC announced its Q4 2024 financial results, revealing a 6% decline in total revenue compared to Q4 2023, alongside a notable operating income of $51 million. The company’s board approved the spinoff of Angi Inc., expected in the first half of 2025, and CEO Joey Levin will transition to an advisory role post-spin-off. Dotdash Meredith reported a 10% increase in digital revenue, contributing to IAC’s over $1 billion annual digital revenue, while Angi Inc. and Care.com showed varied financial performances. The company also extended a key service agreement with Google and reported increased financial flexibility due to a reduced leverage ratio.

IAC Announces Care.com as Separate Reporting Segment

On January 15, 2025, IAC Inc. announced that Care.com will now be reported as a separate segment starting from the quarter ending December 31, 2024. This change, which was reflected in the supplemental financial information for the quarter ending September 30, 2024, aims to provide clearer insights into Care.com’s performance and strategic significance within IAC’s portfolio, potentially influencing stakeholder perceptions and investment strategies.

IAC/InteractiveCorp. Announces Spin-Off and Leadership Transition

IAC Inc. announced the planned spin-off of its stake in Angi Inc. to its shareholders, transitioning CEO Joseph Levin to an Executive Chairman role at Angi while he continues as a consultant for IAC. This strategic move aims to allow both IAC and Angi to focus on their respective growth opportunities and operational strategies, with Angi benefiting from enhanced independence and IAC gaining flexibility for new ventures.