IAC saw a 5% decline in quarterly revenues, mostly due to underperforming search businesses, but their dating division has continued its strong growth.
Their total sales fell by 5.3% compared to last year, to $724.5m.
This led to shares dropping 5.5% to $65.04, their biggest one-day decline since October 30 2013.
Despite this, their dating businesses like Match, OkCupid and Tinder – that were recently separated into Match Group – saw sales increase 12% to $203.9m.
In an earning calls to investors yesterday, Gregory Blatt, Chairman of Match Group, spoke about whether Tinder would soon participate in this growth, saying:
“Tinder is still very much in investment mode. And we haven’t fixed on the timing or exact nature of the business model yet.
“It’s a dating product that has taken off as fast as any I can remember. Right now, we’re focused on doing the things necessary to make sure it takes route in an enduring way, but if does, we believe it can also be a meaningful contributor down the line.”
IAC’s decline is mostly due to recent changes by Google which led to their search division underperforming – missing estimates in three out of four quarters, and yesterday announcing an 8% decline.
Google recalibrated their search algorithms and advertising prices, so IAC sites like Ask.com were pushed down on Google’s results.
Last October, Blatt said the move: “seems to have most negatively impacted publishers with concentrations of advertising in a disparate range of categories and with a user base with less disposable income than the average Internet audience.”
IAC tried to strengthen this search business in recent years, buying About.com for $300m in 2012.