Shares of IAC are higher on Thursday after the company reported quarterly results and said it would change the way its businesses are organized.
Q3 RESULTS: IAC on Wednesday afternoon beat analysts’ estimates, with earnings per share of $1.49 on revenue of $1.1B. Analysts had been expected EPS of 93c and revenue of $1.07B. For the quarter, IAC said ANGI Homeservices (ANGI) revenue increased 67% to $303.1M, while Match Group (MTCH) total average subscribers increased 23% to 8.1M, Vimeo subscribers increased 10% to 932,000 and SaaS revenue, excluding acquisitions, increased 29%.
VIMEO, DOT-DASH TO BECOME OWN SEGMENTS: IAC will make Vimeo its own segment Vimeo so shareholders can see progress more granularly through revenue and investment each quarter. Vimeo “has the scale and potential to now stand on its own, and we want to begin to put a spotlight on it,” Joey Levin, IAC’s chief executive officer, said in a letter to shareholders. “Vimeo always has, and always will, obsessively and relentlessly cater to the needs of creators — not advertisers, not eyeballs, not our own platform, nor anything else. We’ve focused entirely on the creators and they have rewarded Vimeo with their loyalty. The numbers bear this out — Vimeo enjoys incredible retention, an average customer lifetime of nearly 5 years, customers that upgrade over time, and new subscribers that are attracted to fresh, premium offerings at increasingly higher price points,” Levin added. Additionally, Levin said IAC is making Dot-dash its own segment next quarter, saying that the unit performs like a business “more than worthy of its own segment.” After the changes to business segments in Q4, the remaining businesses in Publishing and Video will aggregate into a catch-all segment, named “Emerging & Other” which will include both early stage and mature businesses like BlueCrew, Ask Media Group and The Daily Beast. The group may “intermittently generate cash or consume cash,” but is more focused on the “next decade than the next quarter,” it added.