Q1 2024 Angi Inc and IAC Inc Joint Earnings Call Transcript
Key Points
- IAC Inc (IAC) reported a strong quarter with significant progress in growing profit and free cash flow, positioning the company well for future capital deployment.
- The company announced a new partnership with OpenAI, expected to enhance the ChatGPT experience and drive incremental users to IAC properties, potentially opening new opportunities in the AI ecosystem.
- Dotdash Meredith digital revenue grew by 13%, led by a 19% increase in digital advertising, indicating robust performance and effective monetization strategies.
- Licensing revenue returned to growth at 9%, driven by strong performances at Apple News and syndication partners, transitioning from a previous headwind to a potential tailwind.
- The appointment of Jeff Kip as CEO of Angi Inc. is seen positively, given his deep involvement and successful track record with the business, which is expected to focus on delivering high-quality service and driving growth.
- Performance marketing only grew by 3% in the quarter, pulled down by a 30% decline in services such as financial products, indicating challenges in this segment that need addressing.
- The company faces ongoing challenges with traffic declines from Facebook, which has aggressively shifted to retain more audience on its platform, impacting referral traffic to IAC properties.
- Despite strong profitability, Angi Inc. continues to experience revenue declines, necessitating further strategic adjustments to stabilize and return to growth.
- The broader advertising market, while strengthening, is not described as 'hot' or 'on fire', suggesting that there may be limited upside potential in the short term.
- There are ongoing macroeconomic factors affecting segments like childcare in the Care.com business, which could impact growth and recovery in these areas.
Good day and welcome to the IAC, Angi First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Christopher Halpin, CFO and COO of IAC. Please go ahead.
Thank you. Good morning, everyone, Christopher Halpin here and welcome to the IAC and Angi Inc. First Quarter Earnings Call. Joining me today is Joey Levin, CEO of IAC and Chairman of Angi Inc., and Jeff Kip, CEO of Angi Inc. Similar to last quarter, supplemental to our quarterly earnings releases, IAC has also published its quarterly shareholder letter, which is currently available on the Investor Relations section of IAC's website. We will not be reading the shareholder letter on this call.
I will shortly turn the call over to Joey to make a few brief introductory remarks and then we will open it up for Q&A. Before we get to that, I'd like to remind you that during this presentation, we may discuss our outlook and future performance.
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