• by Ray Schultz , November 8, 2022

IAC, parent of Dotdash Meredith, reported mixed results for its third quarter.  

Overall revenue for the company totaled 41% growth YoY. However, the operating loss grew to $124.7 million, versus $32 million for the same quarter in 2021. 

The company reported $467.1 million in Q3 revenue for Dotdash Meredith, up from $65.2 million. However, that 51% increase was due principally to the acquisition of Meredith. Otherwise, there was a 19% pro forma decline, and Dotdash Meredith suffered an operating loss of $95.5 million. 

Dotdash Meredith’s digital revenue declined by 13% from quarter to quarter to $220.7 million. That drop was due to “lower advertising rates due to macro headwinds impacting Retail, Home Goods, Beauty and Entertainment advertisers,” the firm states.  

Also affecting the picture was the Meredith integration impact, including site migrations and sales force consolidation. And, the firm faced softening consumer demand that affected its affiliate commerce and performance marketing revenue, primarily related to financial services products. 

Print revenue totaled $251.5 million, with no comparison available.

Print has been “a source of strength for the company,” said IAC CEO Joey Levin. 

Levin adds, “Aggregate Print revenue declined 24% in Q3, but that is overwhelmingly due to the elimination of 8 titles following the February restructuring as we continue to manage to profitability. Our go-forward portfolio of 7 core print titles generated profit while growing revenue 29% in Q3 on a same-store basis, highlighting both advertiser demand for these titles and the returns of the product investments we made.”

Dotdash Meredith is on track to deliver $240 million to $250 million of adjusted EBITDA excluding “one-time costs for the integration and restructuring. This is a big drop from the $300 million Adjusted EBITDA we expected previously, with the decline reflective of both the challenges of the integration and the current digital advertising market environment.” 

Meanwhile, IAC’s Angi Inc. internet services subsidiary increased its Ads and Leads revenue by 7% YoY, and saw total revenue of $498 million, 8% growth YoY.