• by Ray Schultz , November 11, 2024

IAC, the parent company of Dotdash Meredith, is exploring the spinoff of its 85% interest in Angi, a home improvement brand, to IAC shareholders. 

That would be the 10^th fully standalone public company to come from IAC. 

“In the event of an Angi spin, we will be a smaller IAC, and our corporate costs will need to reflect that,” CEO Joey Levin wrote in a letter to shareholders. “We’ll be reviewing corporate costs with an Angi spin-off in mind;”

IAC made this announcement in tandem with releasing its Q3 financials. The company generated $978.7 million, a 16% decline YoY. 

Its net loss was $245.7 million, an improvement of the $390.5 experienced in Q3 2023. 

Angi saw a 16’% decline in revenue YoY to $295 million. But its operating income grew by $16 million to $8 million.

Dotdash Meredith (DDM) saw its digital revenue jump by 16% to $246 million. This was the third consecutive quarter of double-digit growth. 

However, print revenue fell by 6% to $199 million. Total sales reached $439.5 million, a 5% rise YoY. 

“The election and politics took up most of the consumer’s attention in October (we don’t accept political ads), with some advertisers holding spend until the election passed, so growth will slow a bit in the fourth quarter,” Levin continued. “But we’ve already begun to see traffic and advertisers return, and we expect solid growth during November and December.”

Levin added, “Both premium sales and programmatic monetization were excellent in the quarter, driven by the scale of DDM’s platform, the performance of our inventory, and the grit of our sales team. Though Performance Marketing declined 7% in the quarter with some softness in consumer finance categories, we expect our commerce business will push a return to growth in Q4. 

Commenting on AI, Levin noted, “AI answers appeared in roughly 20% of DDM’s relevant searches in the quarter and the impact on overall traffic remained minimal, but we remain vigilant on protecting our intellectual property.”