IAC Inc. Reports $539.9 Million Net Loss and 13% Revenue Decline for 2024

IAC Inc. reported a net loss of $539.9 million for the year ended December 31, 2024, compared to a net income of $265.9 million in 2023. Revenue for 2024 totaled $3.8 billion, a 13% decrease from the $4.4 billion reported in 2023. The decrease was primarily driven by declines in Angi and Search segment revenue, partially offset by an increase in Dotdash Meredith revenue. Dotdash Meredith's revenue increased by 5% to $1.8 billion, primarily due to a 13% increase in digital revenue, while Angi's revenue decreased by 13% to $1.2 billion and Search revenue decreased by 38% to $387.7 million.

Significant changes compared to the prior year included a 13% decrease in overall revenue, a shift to net revenue reporting at Angi's Services segment effective January 1, 2023, and the sale of assets of Mosaic Group and Roofing for approximately $160 million and the sale of Bluecrew in 2022. The company also announced a plan to spin off its full stake in Angi Inc. to IAC stockholders via a dividend, expected to be completed by March 31, 2025. This spin-off is subject to customary conditions and final board approval.

Operational developments included approximately 168,000 transacting professionals on Angi platforms during the three months ended December 31, 2024, and approximately 17 million projects completed through Angi during the twelve months ended December 31, 2024. Dotdash Meredith reported 10,664 million total sessions and 9,062 million core sessions in 2024. Angi reported 17,184 thousand service requests and 24,381 thousand monetized transactions in 2024. As of December 31, 2024, IAC had approximately 8,300 employees, substantially all full-time and primarily based in the United States.

The decrease in revenue was attributed to various factors, including decreased advertising spending, lower service requests at Angi, and a reduction in marketing from affiliate partners at Search. The company cited the ongoing migration of audiences from print to digital platforms as a factor impacting Print revenue at Dotdash Meredith. Changes in the usage and functioning of search engines, related to generative AI technology, were also identified as a potential risk.

IAC expects 2025 capital expenditures to be 20% to 30% higher than 2024's $65.5 million, primarily due to increased capitalized software investments at Angi and Dotdash Meredith. The company believes that its existing cash and expected positive cash flows will be sufficient to fund its operating requirements for the next twelve months, but may need to raise additional capital for acquisitions and investments. The company also noted several significant risks, including those related to marketing effectiveness, reliance on search engines and Google, competition, economic conditions, cybersecurity, and the success of the Angi spin-off.