IAC has released its Q4 earnings and a letter to its shareholders.
After adjusting for the major ‘Angie’s List’ transaction, operating income was $141.5 million (up 25% year-on-year) and Adjusted EBITDA was $213.3 million (up 30% year-on-year).
Match Group accounts for $378.9 million of the $950.6 million in revenue.
ANGI Homeservices accounts for $223.2 million, Video for $92.9 million, Applications for $138.8 million and Publishing for $116.9 million.
The growth of Match Group in particular was attributed to the following:
- 20% Adjusted EBITDA growth driven by higher revenue, partially offset by higher in-app purchase fees, an increase in selling and marketing expense and employee costs (due primarily to increased headcount at Tinder)
- $3.9 million higher stock-based compensation expense and a $7.3 million increase in contingent consideration adjustments in Q4 2017
Video revenue was up 40%, driven primarily by strong growth at Vimeo.
Revenue from Applications declined 12% due to a 27% decrease in Partnerships and an 8% decrease in Consumer.
Their outlook for 2018 reads:
“This year we will look to plant the seeds for future growth through the acquisition of smaller, earlier stage assets and to incubate opportunities both inside and adjacent to our existing businesses. We’ll always be active in M&A, but remain wary of bigger deals in the current market.”
Read more here.