Q4 2024 IAC Inc and Angi Inc Earnings Call

Cause you to ask questions to ask a question here if I start in one of your telephone keypad into its all your question. Please press Star then two please note today's event is being recorded I would now like to turn the conference over to Christopher helping executive Vice President CFO and COO of IAC. Please go ahead.

We followed by zero.

After introductory remarks, there will be an opportunity to ask questions.

To ask a question you May press Star then one on your telephone keypad into each all your question. Please press Star then two.

Please note today's event is being recorded.

Thank you and good morning, everyone, Christopher helping here and welcome to the IAC and Angi, Inc. Fourth quarter earnings call. Joining me today are Barry Diller Senior executive Chairman of IAC, Joey Levin CEO of IAC, and chairman of <unk>, and Jeff kept CEO of MGM supplemental to our quarterly earnings releases IAC and angi have each public shareholder letters, which are currently available on the Investor relations sections.

Christopher: I would now like to turn the conference over to Christopher help them Executive Vice President and CFO and COO of IAC. Please go ahead.

Thank you.

Christopher: Good morning, everyone, Christopher helping here and welcome to the IAC and Angi, Inc. Fourth quarter earnings call. Joining me today are Barry Diller senior executive and chairman of IAC, Joey Levin CEO of IAC, and Chairman of AMG, Inc, and Jeff Kip CEO of Angi, Inc. Supper.

Their respective websites, we will not be reading the shareholder letters on this call I will shortly turn the call over to Barry and then Joey to make a few introductory remarks, followed by Q&A before we get to that I'd like to remind you that during this presentation. We may make certain statements that are considered forward looking under the federal Securities laws. These forward looking statements may include statements related to our outlet strategy and future performance and are based on our current expectations and information.

Christopher: Supplemental to our quarterly earnings releases, IAC and angi have each public shareholder letters, which are currently available on the investor relations sections of their respective websites.

Currently available to us actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties, including those contained in our most recent quarterly report on Form 10-Q are most of these most recent annual report on Form 10-K and in subsequent reports that we file with the SEC. The information provided on this conference call should be considered in light of such risks will also discuss.

Christopher: We will not be reading the shareholder letters on this call.

Speaker Change: I will shortly turn the call over to Barry and then Joey to make a few introductory remarks, followed by Q&A.

Speaker Change: Where we get to that I'd like to remind you that during this presentation. We may make certain statements that are considered forward looking under the federal Securities laws. These forward looking statements may include statements related to our outlook strategy and future performance and are based on our current expectations and on information currently available to us.

Certain non-GAAP measures, which as a reminder include adjusted EBITDA, which we will refer to today as EBITDA for simplicity during the call I'll refer you to our earnings releases, the IAC and angi shareholder letters, our public filings with the SEC and again to the Investor Relations section of our respective websites for all comparable GAAP measures and full reconciliations for all material non-GAAP measures and now I will turn it over to our senior exec.

Speaker Change: Actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties, including those contained in our most recent quarterly report on Form 10-Q, our most our most recent annual report on Form 10-K and in the subsequent reports that we.

Barry Diller: Different chairman Barry Diller.

Speaker Change: Thank you Chris.

Barry Diller: The executive but its Mike stone.

Speaker Change: Talk with you. This morning I haven't been on one of these calls and I think a little more than 10 years, hopefully will not want me to wait another 10 years before I do it again, but what I wanted to do really is to review, what's really happened to this company over the last couple of years.

Speaker Change: File with the SEC.

Speaker Change: The information provided on this conference call should be considered in light of such risks will also discuss certain non-GAAP measures, which as a reminder include adjusted EBITDA, which we will refer to today as EBITDA for simplicity during the call.

Barry Diller: About two years ago.

Speaker Change: Of course, we realized that our two two of our principal businesses.

Speaker Change: And potash were troubled here's what the troubles, we had taken a anti <unk>.

Speaker Change: I'll refer you to our earnings releases, the IAC and angi shareholder letters, our public filings with the SEC and again to the Investor relations sections of our respective websites for all comparable GAAP measures and full reconciliations for all material non-GAAP measures and now I will turn it over to our senior.

Speaker Change: Which are the prior year at about $260 million of EBITDA.

Speaker Change: Down to $35 million.

Speaker Change: Our capex shot up to $115 million.

Speaker Change: On top that Meredith.

Speaker Change: Uh huh.

Speaker Change: Initial plant after the acquisition was we thought we would do $450 million.

Barry Diller: Decorative and chairman Barry Diller.

Speaker Change: EBITDA.

Barry Diller: Thank you, Chris, Yes, definitely very senior executive, but it's nice to.

Speaker Change: Actually the plot for that particular year.

Speaker Change: And a half years ago three years ago.

Barry Diller: Talk with you. This morning I haven't been on one of these calls and I think a little more than 10 years hopefully.

Speaker Change: It went from 335 down to 230.

Speaker Change: So.

Speaker Change: I felt about it Joey Levin our.

Speaker Change: Our colleagues that we were really in a crisis and we had to fix these two principal businesses. So we essentially stopped everything we did not want to do things that either Oh.

Barry Diller: <unk>.

Barry Diller: Want me to wait another 10 years before I do it again, but what I wanted to do really is to review.

What's really happened in this company over the last couple of years.

Speaker Change: Either extended the amount of work we had to do into other areas to work is important.

Barry Diller: About.

Barry Diller: Two years ago.

Speaker Change: I knew that we had to hit the ground and we're really spending we bought the time it would take certainly a year, maybe two to get these businesses back to performing.

Barry Diller: We.

Barry Diller: Of course, we realized that our two two of our principal businesses.

Barry Diller: Andrey.

Speaker Change: And so we froze everything basically other fans attending to that.

Barry Diller: And thought gosh, we're troubled here's what the troubles or.

Speaker Change: Those two businesses and getting them back on track with it.

Barry Diller: We had taken Angie.

Speaker Change: They need to be at.

Barry Diller: Which.

Speaker Change: Andrey.

Barry Diller: <unk>.

Speaker Change: Of course, you all know, but I really want to put this in context, because I do think it is it is at least from my point of view it clarifies what the company has been doing at.

Barry Diller: The prior year.

Barry Diller: At about $260 million of EBIT.

Barry Diller: Down to $35 million.

Barry Diller: Our capex shot up to $115 million.

Speaker Change: In these last couple of years.

Speaker Change: And where we are now and where I think we will be in the future.

Barry Diller: On top that Meredith.

Barry Diller: Uh huh.

Speaker Change: First thing we did if it looks like the CEO of Angi with Joey live in.

Barry Diller: The.

Barry Diller: Initial plant.

Speaker Change: Who was kind of also obviously at that time. He was the CEO of IC, but we said, okay. We will take all the other areas. So you can concentrate on fixing Angie we immediately got rid of the low quality at a low margin revenue, which reduced our revenue, but can we stop the capital expenditures.

Barry Diller: After the acquisition was we thought we would do $450 million.

Barry Diller: And EBITDA.

Barry Diller: Actually.

Barry Diller: For that particular year.

Barry Diller: And a half years ago three years ago.

Barry Diller: <unk> went from $3 35 down to 230.

Speaker Change: Anything near that level I think we went from 115, if I recall correctly I said correctly earlier to about 50, and what happened is that of course, the profit and the cash flow.

Barry Diller: So.

Barry Diller: I felt it.

Speaker Change: Joey live in and our our colleagues that we were really in a crisis and we had to fix these two principal businesses.

Speaker Change: Back onto a positive track.

Speaker Change: We also appointed drift up to be the CEO. He had been running the international business is really well.

Speaker Change: And and at the essence, Andrew you like all these entities are there product companies and we have to fix the product all of that work has been in train for these last couple of years.

Barry Diller: So we essentially stopped everything we did not want to.

Speaker Change: Do things that either Oh.

Speaker Change: Either extended the amount of work we had to do into other areas that weren't as important we we.

Speaker Change: And as you know is back as you can see from the figures. It is back from where it was a lot of the things that happened to entry where you know some of them were self inflicted some of them more grandiose plans there to do get into the services business ourselves etcetera, which well good ideas.

Speaker Change: Knew that we had to hit the ground and we're really spend than we thought at the time it would take.

Speaker Change: Certainly a year maybe two.

Speaker Change: We're not executing well at all and so Joey and now Jeff went in and took the thing down to I think kind of gets stubs and have built it back up where it can outperform and then hopefully next year, you'll see real revenue growth. So that's the Arqiva Nancy.

Speaker Change: Get these businesses back to performing.

Speaker Change: And so we froze everything basically other than attempting.

Speaker Change: Those two businesses and getting them.

Speaker Change: I thought that Meredith Oh, we reverse the traffic declines they are up I think traffic's up about 8%.

Speaker Change: Back on a track where they were where.

Speaker Change: They needed to be.

Speaker Change: At Angi <unk>.

Speaker Change: Some of this of course, you all know, but I I I.

Speaker Change: With the integration as you well know could you talk about integration and.

Speaker Change: I really want to put this in context because I.

Speaker Change: And the synergies and all of that they can talk a good game, but when you get right down to it if it's a tough slog and it was a very difficult year and a half.

Speaker Change: I do think it is a it is at least.

Speaker Change: From my point of view.

Speaker Change: Dash.

Speaker Change: It clarifies what the company has been doing.

Speaker Change: I think that's it.

Speaker Change: In these last couple of years.

Speaker Change: Great makes us get this whole thing and trained.

Speaker Change: And where we are now.

Speaker Change: That's a pretty extended dumps of what was going to die.

Speaker Change: And where I think we will be in the future.

Speaker Change: It kind of spot on because we thought we had a a game plan for the.

Speaker Change: First thing we did is we replace the CEO of Angi with Joey live in.

Speaker Change: Properties surface properties be able to gain advertising grab a greater value than anyone else.

Speaker Change: Uh huh.

Speaker Change: Kind of also obviously at that time he was the CEO of IC, but we said, okay. We will take all the other areas of IC you concentrate on fixing.

Speaker Change: And and she's done I'll, just give you just one.

Speaker Change: One stops very well so.

Speaker Change: Since my one thing on stocks, which is digital.

Speaker Change: Digital revenue growth.

Speaker Change: Angie.

Speaker Change: Very stark.

Speaker Change: We immediately got rid of at the low quality and a low margin revenue.

Speaker Change: It was in Q2 of 'twenty two.

Speaker Change: I'm, just gonna reach a consecutive six seven quarters down seven down 13%.

Speaker Change: Which reduced our revenue book and we stopped the capital expenditures.

Speaker Change: Around 50%.

Speaker Change: At anything near that level I think we went from 115, if I recall correctly I said correctly earlier.

Barry Diller: Barry I think we yes.

Speaker Change: To about 50.

Speaker Change: Operator, it looks like obviously the owner we have lost your audio Sir.

Speaker Change: And what happened is that of course, the profit and the cash flow.

Anthony: Okay Anthony here.

Anthony: Alright, well hopefully we will get the audio back there and the good news on that is various remarks, where were very consistent with some of the things that I was gonna say hopefully I can pick up.

Speaker Change: Went back onto a positive track.

Speaker Change: Uh huh.

Speaker Change: We also appointed Jeff Kip to be the CEO. He had been running the international business is really well.

Anthony: Where he left off.

Speaker Change: And and at the essence and are you like all these entities, they're they're they're they're product companies and we have to fix the product.

Anthony: First of all thank.

Anthony: Thank you Barry. Thank you, it's Chris Thank you to Jeff and everybody for being on this call I looked in my first one of these calls within Q4 of 2000 Thirteen's Ive been doing these calls for 12 years and this is I think he is one of these calls but only actually one of those whatever it may be D. So this is a it's a treat for all of US if we can get him back on the line are in our thinking that connection.

Speaker Change: All of that work has has been in train for these last couple of years.

Speaker Change: And and she now is back as you can see from the figures. It is back from where it was a lot of the things that happened to entry where you know.

Anthony: Plenty of ups and downs.

Anthony: But that's through businesses come and go since then but it's nice to have the operations really on the upswing right. Now we finished the year 2024, very strong we had a nearly 250 million increase in cash flow year on year at almost 300 million of cash flow, that's rising businesses and the real.

Speaker Change: Some of them were self inflicted some of them work grandiose plans to get into the services business or ourselves etcetera, which while good ideas, we're not executing well at all and so Joey and now Jeff.

Anthony: Real momentum right now behind it isn't it is especially that there is an antibody that actually outgrowing the market and Angie is anted. Almost there are you know we're looking at growth next year as we've discussed and the good news is we've had enough progress in the business in terms of just.

Speaker Change: Went in and.

Speaker Change: Took the thing down to I think kind of at the stubs and have built it back up where it can outperform and then hopefully.

Speaker Change: Delivering the customer experience they own the unit economics are addressing the cost in Opex and Capex I think we've had enough to work with and Angie that we were really able to rip off. This last quarter. We were they were disappointing quarters argue wanted to really be able to report that last mandate and and get the product experienced oh lead to where we want it to be and that means we can start building again and Ah, that's what Jeff and I are an inherent human antibody.

Speaker Change: Next year, you'll see real revenue growth so.

Speaker Change: That's the Arqiva Nancy.

Speaker Change: On top that Meredith.

Speaker Change: Uh huh.

Speaker Change: Uh huh.

Speaker Change: We reversed the traffic declines that are up I think traffic's up about 8%.

Speaker Change: And as that portfolio to now we're back on offense and that's true for both IC and Angie and I think at the very end prison everybody at ice you are incredibly excited about that and definitely Andy as well our soon to be at Andy as well incredibly excited to be back on offense and Oh, that's a great place to be so.

Speaker Change: With the integration.

Speaker Change: Well no.

Speaker Change: About integration and.

Speaker Change: And the synergies and all of that they can talk a good game, but when you get right down to it it's it's a tough slog.

Speaker Change: And it was a very difficult year, and a half is and as potash.

Speaker Change: Unless we connected Barry in Lenexa, Kansas, Oh, let's go to questions.

Speaker Change: Yes.

Speaker Change: They've invested in.

Speaker Change: I don't know if it's a bit of a background yep. Okay. Let's go to the question queue, operator and take the first question.

Speaker Change: Great makes us get this whole thing and train.

Speaker Change: As a brief reminder to ask a question. Please press Star then one on your telephone keypad. Our first question today comes from Cory Carpenter with Jpmorgan. Please go ahead.

That should really have done so well or which is the thing that.

Speaker Change: It got us to five.

Speaker Change: I had one for each of you Julian you talked about your motivation from BTG stent, maybe for Jeff, What's giving you confidence in terms of improving through the year just like the ones you guys coming in below your prior expectations, maybe for Chris can you just talk to the next investments in process.

Speaker Change: It was we thought we had.

Speaker Change: Our game plan for <unk>.

Speaker Change: Oh properties surface properties.

Speaker Change: Are you able to gain advertising grab a greater value than anyone else.

Speaker Change: Thank you Josh for me. Thank you.

Speaker Change: Yeah, Thanks, Cory I think.

Speaker Change: And and she's done I'll, just give you just one or two stops very well so.

Speaker Change: To answer your question is both of course, a personal and professional element and a lot of overlap with those things, but the personal side and there comes a point, where you start to optimize for freedom and that time for me.

Speaker Change: So this is my one thing on stocks, which is.

Speaker Change: I'm incredibly excited about it and on the professional side, Andy just still has asymmetrical upside I believe and I know how hard it's been it isn't a bid business, but is it fair to say before the good news is I think we've done most of the art stuff. We've pulled out most of the challenging things and we know it's believe me no fun to sit in front of all of you and owns the biggest states in there about some sizable chunks of revenue, but that really especially with.

Speaker Change: Digital revenue growth.

Speaker Change: I found this very stark.

Speaker Change:

Speaker Change: This is Q2 of 'twenty two.

Speaker Change: I'm just going to read you a consecutive six seven quarters down seven down 13%.

Speaker Change: About 15% down.

Speaker Change: The changes I've talked about in the letter on January 13th is now behind Us and.

Speaker Change: That means we have the.

Speaker Change: I think the paint in the rearview mirror and now we finally to focus on building again in that building process with a product that makes us proud is the funding to do and I'm really excited to do it.

Barry Diller: Barry I think we.

Speaker Change: Thanks, Cory I'll just take the spin process questions. We filed the registration statement on January 27th once it declared effective we will continue our finalized separation agreements between the companies will also make additional filings with the SEC as necessary.

Speaker Change: Operator it.

Speaker Change: It looks like Mr. Builder, we have lost your audio Sir.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Alright, well hopefully we will get.

Speaker Change: Very focused on closing right now on March 31, but we continue to work through customary legal and tax considerations along with certain operational details at the end of the day. The goal is a seamless and successful transition to Orient you to being a standalone public company and as we said around process for 331 regarding your balance sheet. The current plan is not to make any dividends. So we would spend angie with its current cash balance of 416 million.

Speaker Change: The audio back there and the.

Speaker Change: Good news on that is Barry's remarks, where we're very consistent with some of the things that I was going to say, so hopefully I can pick up.

Speaker Change: Pick up.

Speaker Change: He left.

Speaker Change: <unk>.

Speaker Change: And $500 million of attractively priced bonds with that I'll pass to Jeff. Thanks, Chris Sikora I'll take your question on Q1, and the 'twenty 'twenty five outlook and I'll, probably throw in place bisexual as well our Q1 outlook is a little below what we estimated about three months ago at the time, we assume that the first quarter would be a world framed by the FCC order and we got ready we fully implemented consumer choice consistently.

First of all.

Speaker Change: Thank you to Barry Thank you to address that.

Speaker Change: Thank you to Jeff and everybody for being on this call.

Speaker Change: I looked in my first one of these calls was in Q4 of 2000 Thirteen's Ive been doing these calls for 12 years and this is I think nearly my 50th one of these calls, but only actually one of those was ever with BD. So this is a treat for all of US if we can get him back on the line are in the.

Speaker Change: The FCC order on January 13th at a couple of weeks ahead of the orders effective date.

Speaker Change: Just because of the order, but also because we know and we know it is clearly the best thing for our customers and the business long term.

Speaker Change: Taking that connection obviously, we have plenty of ups and downs.

Speaker Change: Steadily moving towards the implementation of the FCC order really only accelerated are about as.

Speaker Change: Barry took us through and businesses come and go since then but but it's nice to have the operations really on the upswing right. Now we finished the year 2024, very strong we added nearly $250 million increase in cash flow year on year to almost $300 million in cash flow.

Speaker Change: As we noted in the letter the experience the improved experience has been an evidence for awhile homeowner mps's double digits better when they choose the probe and winter automatic and frozen win believe 60% more often when they are chosen and with our unmatched.

Speaker Change: So we looked at that data. We said this is clearly the right thing since we made the change we've gotten very positive feedback from our customers.

Speaker Change: That's our IC business is.

Speaker Change: And the there's just real momentum right now behind the businesses, especially dot fashion, Andy adapt actually outgrowing the market and Angie is andy's almost there.

Speaker Change: The dynamics in the marketplace and improvement of the market experiences only confirmed all of his prior analysis and our conviction of the change.

Speaker Change: On January 24th at the lab.

Speaker Change: <unk> at the courts vacated the FCC rule change and.

Speaker Change: We're looking at growth next year as we've discussed in and the good news is we've had enough progress in the business in terms of just.

Speaker Change: We however, still going ahead, we're sticking with the change we're making our competition is not this is creating some short term disruption in the market and the impact on our first quarter, but long term, we consider ourselves very well competitively positioned.

Speaker Change: Yeah.

Speaker Change: Delivering the customer experience nailing the unit economics.

Speaker Change: Addressing the cost in Opex and Capex is that we've had enough to work with Angie that we were really able to rip off this last quarter or this current quarter's argue one we're really able to rip off that last band aid.

Speaker Change: In the marketplace with a significantly better customer experience.

Speaker Change: So going forward.

Speaker Change: Obviously real time adjusting to the changes in the marketplace, given the regulatory shifts, but theres a number of factors that give us high confidence or build through 2035 and back to growth in 'twenty 'twenty six versus the first quarter is our toughest comp of the year. We're sunsetting a few hundred basis points of non choice revenue in our proprietary channels that we got rid of at the end of the first quarter last year, and we don't have to compare that for the rest of 2025, secondly, we have a number of product builds.

Speaker Change: And and get the product experience will lead to where we want it to be and that means we can start building again and.

Speaker Change: That's what Jeff and I are.

Speaker Change: And the entire team at Angi are incredibly excited to do that.

Speaker Change: <unk> marketing efficiency matching and monetization that we have clear data behind it will add revenue and profit as we build through the year.

Speaker Change: As I've said for a quarter or two and now we're back on offense and I think that's true for both IAC and angi and I think a.

Speaker Change: Thirdly, our single pro product initiatives referenced in the letter on the last call is going to lead to growth in revenue per monetized transaction by the second half of the year as we sunset our legacy ads pricing structures.

Speaker Change: Aerie and Chris and everybody at IC are incredibly excited about that and Jeff Knight, Andy as well are seem to be at Andy as well incredibly excited to be back on offense and.

Speaker Change: We expect to steadily returned to growth in our proprietary ESR channels. This year would be fully growing in places like RCM unbranded as ours are growing today as your dot com <unk> was only down single digits today, and its 90% of our brand organic traffic and so we expect to continue building through the year and reach growth in 2006 on the flip side, our third party as far as are going to take a significant step down in 'twenty 'twenty five, but because we're doing at the beginning of the year we expect.

Speaker Change: That's a great place to be so.

Speaker Change: Unless.

Speaker Change: We connected Barry in the next second or so let's go to questions.

Speaker Change: Yes, Sir.

Speaker Change: I'm, sorry, I didn't know that Mr Bill or back on yet.

Speaker Change: It to be flat in 2000 <unk>. The two together give you growth. Finally, we expect increased homeowner repeat and pro retention because of the impact of homeowners choice on the experience on both sides of the marketplace. So net.

Speaker Change: Let's go to the question queue, operator, and take the first question.

Speaker Change: Absolutely and as a brief reminder to ask a question. Please press Star then one on your telephone keypad.

Speaker Change: Q1 is going be down a little versus what we said a few months ago and down in the low 20% year over year, but we got even more confidence in revenue improvement across the year and a return to growth in 'twenty 'twenty six and very much I have confidence in our competitive position, we're able to take in the quality of the customer experience going to able to deliver over the long term. So we think that there is going to deliver value to our customers value to our shareholders and our strong next couple of years. Thank.

Speaker Change: First question today comes from Cory Carpenter with Jpmorgan. Please go ahead.

Cory Carpenter: Thanks, Good morning, I had one for each of you I think on Angi Julian start with you could you talk about your motivations for movie.

Speaker Change: With the spin maybe.

Speaker Change: Maybe for Jeff, what's giving you confidence in trends improving through the year. Despite the <unk> guide coming in below your prior expectations and if a Chris could you just talk to the next steps in the spin process in <unk> printing take any cash from Angie. Thank you.

Speaker Change: Thank you Jeff.

Speaker Change: Next question.

Absolutely. Our next question today comes from John Blackledge with Cowen. Please go ahead great.

John Blackledge: Great. Thanks, and good luck with the move to questions for Chris first could you talk about the drivers of <unk> revenue and EBITDA and maybe walk through the 125 in fiscal 'twenty five puts and takes for <unk> revenue and EBITDA Guide and then second question would be how given <unk> strong balance sheet and the ramping free cash flow how should we think about capital allocation and then what the upcoming Andrew standing joined Gilead moving.

Speaker Change: Sure I'll start thanks Corey.

Speaker Change: To answer your question Theres both of.

Speaker Change: Of course, a personal and professional element and a lot of overlap with those things, but on the personal side that I think there comes a point in life, where you start to optimize for freedom and in that time for me I decided it now and I'm I'm incredibly excited about it and on the professional side. Andy you just still has asymmetrical upside I believe and I know how hard.

Speaker Change: Over to Angie as executive Chairman and how should we think about kind of the management transition at IC. Thank you. Yes. Thank you John so starting with <unk> on our last earnings call, we talked about a sluggish both consumer traffic and advertiser spend we're headed up to and through the U S. Election, we were cautiously optimistic at the time, both the ramp back up after the political landscape is sorted and we saw that November traffic was excellent for us.

Speaker Change: It's been a it.

Speaker Change: It is in this business, but as I started to say before the good news is I think we've done most of the hard stuff. We've pulled out most of the challenging things and we know it's believe me nobody is sitting in front of all of you and on some big mistakes and rip out some sizeable chunks of revenue but.

Speaker Change: Notably on our food sites as new logo likes to say Thanksgiving and the Super Bowl for Allrecipes traffic in December was lower mainly due to the lack of celebrity and entertainment news of people and some less robust holiday momentum in the home category on the advertising front, we saw many advertisers come back into the premium and programmatic markets in mid November net result of all of that for the third quarter, we posted 3% core sessions growth of 3% digital advertising growth real bright spot.

Speaker Change: That really especially with the changes you have talked about in the letter on January 13th is now behind us and.

Speaker Change: That means that.

Speaker Change: I think the pains in the rearview mirror and now we finally get to focus on building again and.

Speaker Change: In the quarter was performance marketing, which grew 22% led by exceptional ecommerce performance. It was great to see this area grow strongly after a couple of sluggish quarters and it highlights <unk> industry, leading ability to convert consumer interest into sales for our retail partners and then finally licensing continued a strong growth led by our open AI and Apple news partnerships together. These three revenue lines blended a 10 percentage or revenue growth above the range we were forecasting.

Speaker Change: That building process with a product that makes us proud is a fun thing to do and I'm really excited to do it.

Speaker Change: Thanks, Cory I'll, just take the spin process questions.

Speaker Change: We filed the registration statement on January 27th once declared effective we will continue to a finalized separation agreements between the companies will also make additional filings with the SEC as necessary.

Speaker Change: Looking at 2025, we view all three digital revenue growth areas as healthy and strongly positioned.

Speaker Change: In aggregate, we're expecting 10% plus digital revenue growth for the year with high single digit growth in Q1, a few factors contribute to slightly lower first quarter growth in those high single digits. It's more challenging January and February comps Easter, which is a key holiday for a shift this year into Q2 from Q1 last year and there is one less day due to the lead here the second quarter conventionally sets up stronger with easier comps in the Easter benefit on the digital advertising.

Speaker Change: We are very focused on closing right now on March 31, but we continue to work through customary legal and tax considerations along with certain operational details at the end of the day. The goal is a seamless and successful transition to for AMG to being a standalone public company.

Front, we're expecting mid single digit traffic growth for the year and mid single digit monetization growth will also generate incremental revenue from the launch of decipher plus where we will be seeing third party, we'd be selling third party inventory using our proprietary targeting technology, we're testing with select advertisers this quarter and we'll scale it up throughout the year and inform its marketing and license easier both gross holiday for the year Tdm continues to manage its cost structure and thoughtfully.

Speaker Change: And as we said we're on process for $3 31 regarding the <unk> balance sheet. The current plan is not to make any dividends. So we would spin Angie with its current cash balance of $416 million and $500 million of attractively priced bonds with that I'll pass to Jeff. Thanks, Chris.

Speaker Change: Oh and by the severance in the fourth quarter due to head count reductions to reallocate resources for the year, we're forecasting 40% plus digital incremental EBITDA margins, which combined with 10% digital revenue growth and 10% revenue declines in our print segment lead to our guide of $3 30 to $3 50, a total EBITDA of 3 million of total EBITDA when accounting note as noted in our release, we will have a significant gain.

Jeff: Laura I'll take your question in Q1, and the 'twenty to 'twenty five outlook I'll, probably throw in 2026, a little as well our Q1 outlook is a little below what we estimated about three months ago at the time, we assume that the first quarter would be a world framed by the FCC order and we got ready we fully.

Speaker Change: The ones that we obviously gain in the first quarter of 2025 of approximately $36 million associated with a highly favorable lease buyout. Our adjusted EBITDA guidance excludes this gain Barry I'll turn it over to you. We just got the question about capital allocation and how that changed in the context of our strong balance sheet.

Jeff: <unk> consumer choice consistent with the FCC order on January 13th that's a couple of weeks ahead of the orders effective date.

Jeff: Not just because of the order, but also because we know and we've known it is clearly the best thing for our customers in the business long term.

Speaker Change: This is all very odd for me because I didn't hear my opening.

Speaker Change: Remark.

Jeff: We've been steadily moving towards this implementation of the FCC order really only accelerated our path.

Speaker Change: We got your opening remarks up through angi in the very beginning of <unk> and then we sort of lost you. When you were going through the quarterly growth rates of <unk> starting to point to that's where we lost you.

Jeff: As we noted in the letter.

Jeff: We experience.

Jeff: The improved experience has been evidenced for awhile homeowner NPS is double digits better when they choose the pro then when there are automatic and froze when the lead 60% more often when Theyre chosen then whether auto matched.

Speaker Change: Okay.

Speaker Change: Ah, yes, well technology umbrella so about how many minutes again, because I went on for about 20 minutes.

Speaker Change: I think the key would be to pivot to pivot to the capital allocation section and talk through thoughts on M&A and buyback because we didn't get to that and thats.

Jeff: So we looked at that data. We said this is clearly the right thing since we've made the change we've gotten very positive feedback from our customers.

Speaker Change: Okay.

Speaker Change: Is it all because we're not in the same room so.

Speaker Change: The easiest.

Speaker Change: Did I cover the turnaround and so you have got that.

Jeff: We've observed the dynamics in the marketplace and the improvement in the market experienced only confirm all of this prior analysis and our conviction in the change.

Andrew: Yes, yes, good afternoon, Andrew and most of that debt.

Speaker Change: Yes.

Speaker Change: And then I'll talk about the Yankees.

Speaker Change: No we didnt get Andy Smith, Alright, So let me pick up there I'm, sorry, everybody but.

Jeff: On January 24th.

Jeff: At the last minute the courts vacated the FCC rule change.

Speaker Change: Technology sales.

Speaker Change: They also put some on what you're kind of depend upon it so.

Jeff: <unk>.

Jeff: We however, still going ahead, we're sticking with the change we're making our competition is not this is creating some short term disruption in the market at an impact on our first quarter, but long term.

Speaker Change: What have you heard or not.

Speaker Change: Two years, turning around these businesses, which is why I froze everything.

Speaker Change: We didn't want to be distracted during this period.

Speaker Change: And.

Speaker Change: As you certainly know about our.

Jeff: We consider ourselves very well competitively position.

Speaker Change: Decades of spinning off companies aren't conglomerate with an anti conglomerate, it's kind of like that.

Jeff: In the marketplace with a significantly better customer experience.

Speaker Change: That concept, which I believe the business is when they got to be of sufficient size to be spun off and be independent.

Jeff: So going forward.

Speaker Change: There's nothing more for it and that obviously could do really for angi, Joey and running the business our.

Jeff: We're obviously real time adjusting to the changes in the marketplace, given the regulatory shifts, but theres a number of factors that give us high confidence or build through 2025 and back to growth in 2026 first the first quarter is our toughest comp of the year.

Speaker Change: Complete confidence in that become a very good job in getting it to the state where can continue to grow and also can we come to me and said I really like our business in my own my own store.

Speaker Change: I totally respect that and encourage that and.

Speaker Change: And we have the vehicle to do so make no sense for us to keep answering partially topic, one majority, but still be a public company either in or out I think.

Jeff: We're sunsetting, a few hundred basis points of non choice revenue in our proprietary channels that we got rid of at the end of the first quarter last year, and we don't have to compare to that for the rest of 2025.

Speaker Change: It is the perfect time to do the spin off and I'm glad that I think it'll happen.

Speaker Change: Somebody correct me, but I think it's March 31.

Jeff: Secondly, we have a number of product builds impacting marketing efficiency matching and monetization that we have clear data behind that will add revenue and profit as we build through the year.

Speaker Change: It'll happen.

Speaker Change: And so as I said before I did freeze everything we were running burning cash in 'twenty two.

Speaker Change: One for Burton costs, now, having 352 million of cash flow. This year, we purify the company we sold assets.

Jeff: Thirdly, our single pro product initiatives referenced in the letter on the last call is going to lead to growth in revenue per monetized transaction by the second half of the year as we sunset our legacy ads pricing structures.

We bought MGM before this period.

Speaker Change: Leave it MTM is a bad idea.

Speaker Change: It's run like a product where you can watch it has a superb management.

Jeff: Fourthly, we expect to steadily returned to growth in our proprietary ESR channels. This year be fully growing in 2026, our SCM unbranded Srs are growing today <unk> dot com SCO is only down single digits. Today. It is 90% of our own brand organic traffic and so we expect to continue building through the year.

Speaker Change: No one will ever duplicate Las Vegas anywhere else in the World, We have 40 plus percent of the market.

Speaker Change: It cannot be disintermediation by any technology theres nothing between it and its customer and serving its customers as you know these hotels run at 90 plus percent capacity.

Speaker Change: And the B.

Speaker Change: Future for MCM building at 10 plus billion dollar resort in Japan, the only gaming resort in the entire country in Osaka, which will open.

Jeff: <unk> and reach growth in 2026.

Jeff: On the flip side, our third party.

Speaker Change: Let's take some years to build it but.

Jeff: <unk> are going to take a significant step down in 2025, but because we're doing it at the beginning of the year, we expect it to be flat in 2026 and the two together gives you growth.

A great flag for MGM is going to plan other flags around the world, it's going to simplify itself over the next year like it's been conflict.

Speaker Change: Overly complex for people to understand it's wildly undervalued and I think that it's just.

Jeff: Finally.

Jeff: We expect increased homeowner repeat and pro retention because of the impact of a homeowner choice on the experience.

Speaker Change: How lucky do you get to be able to found the company at a time when it was.

Speaker Change: It was all shut down in Las Vegas, when we came on it was open we're going to buy and advantageously.

Jeff: On both sides of the marketplace. So net.

Jeff: Q1 is going to be down a little versus what we said a few months ago and down in the low 20% year over year, but we've got even more confidence in revenue improvement across the year and a return to growth in 2026 and.

Speaker Change: A lot of stocks, particularly to do so.

Speaker Change: <unk>.

Speaker Change: I think the idea of having CDM.

Speaker Change: And the position of the DD Amazon.

Speaker Change: Outperforming its peers.

Speaker Change: Competitors.

Jeff: Very much have confidence in the competitive position, we are able to take in the quality of the customer experience, we're going to be able to deliver over the long term.

Speaker Change: I'm going to ask you one more question.

Speaker Change: The other thing Thats, giving you the status of the traffic between traffic CDM.

Speaker Change: I think you were halfway halfway through that.

Jeff: So we think that this is going to deliver value to our customers value to our shareholders at a strong next couple of years.

Speaker Change: Exactly when we lost you right alright, well good halfway or is really the worst of it. So let me go from a halfway back to that next halfway good for.

Speaker Change: Thank you Jeff Operator next question.

Speaker Change: For six quarters, we went down to 714 15, 10% beginning in the fourth quarter of 'twenty three plus nine fourth quarter first quarter 13, 12% then 60% in the fourth quarter just in up to 10%.

Speaker Change: Absolutely. Our next question today comes from John Blackledge with TV Cowen. Please go ahead.

John Blackledge: Great Thanks, and Joe Good luck with the move.

Speaker Change: Incredible reversal.

Speaker Change: Two questions for Chris.

Speaker Change: Sure.

Speaker Change: First could you talk about the drivers of <unk> revenue and EBITDA and maybe walk through the <unk> 25 in fiscal 'twenty five puts and takes.

Speaker Change: It is in it.

Speaker Change: Difficult to integrate and transition also kicked by.

Speaker Change: AD market itself, having a decline, but it is an excellent asset.

Speaker Change: For <unk> revenue and EBITDA Guide and then second question would be you know kind of given IAC strong balance sheet and the ramping free cash flow how should we think about capital allocation and then what the upcoming angi spend enjoying Joey moving over to Angie as executive Chairman, how should we think about you know kind of the management transition.

Speaker Change: The bedrock of IC, DDI and MTM plus we have.

Speaker Change: Obviously.

Speaker Change: Well now our balance sheet is very strong.

Speaker Change: As I said earlier.

Speaker Change: I froze everything just leave it that.

Speaker Change: We're not buying stock back during this period, because I do think we deserve to until we've got in our business is shaping up and confident about our business I'm not going to talk about what we will do but I will talk about one thing which is the fact that I did stop at that stopping has ended.

Speaker Change: I see thank you.

Speaker Change: Yes, Thank you John.

Speaker Change: So starting with Tdm on our last earnings call, we talked about how sluggish both consumer traffic and advertisers spend we're headed up to and through the U S election.

Speaker Change: And I'm not going to foresee things because what I, just said I hope, it's fairly obvious but I hope you understand the reason I did stop it and wanted us to freeze can only pay attention to our businesses and getting them straightened out getting the whole corporate structure straightened out.

Speaker Change: Were cautiously optimistic at the time, both would ramp back up after the political landscape with sorted and we saw that November traffic was excellent for us most notably on our food sites as Neil Vogel likes to say Thanksgiving as the Super Bowl for all recipes traffic in December was slower mainly due to a lack of celebrity and entertainment.

Speaker Change: Now in a situation where that phase has finished I think.

Speaker Change: We are pressured by.

Speaker Change: These recently announced event as far as what are we going to what our capital. There are areas I think of <unk> invest in there are also all sorts of opportunities whether it's by building history. This company has been God knows endless starts of five businesses.

Speaker Change: Is it people and some less robust holiday momentum in the home category on the advertising front, we saw many advertisers come back into the premium and programmatic markets in mid November net result of all that for the third quarter, we posted 3% core sessions growth and 3% digital advertising growth real bright spot in the quarter was performed.

Speaker Change: And that landscape, while I think you know the internet field fairly covered but where we're going to look at anything to talk to walk or whatever and we're not anxious.

Speaker Change: We will do this as we've done it before and tell us a good idea and if we think it makes sense. We will go forward with it and we've at least our history has shown that in doing that.

Speaker Change: Marketing.

Speaker Change: Which grew 22% led by exceptional ecommerce performance. It was great to see this area grow strongly after a couple of sluggish quarters and it highlights <unk> industry, leading ability to convert consumer interest.

Speaker Change: <unk> built assets and value and that's what me and Chris Russell <unk>, our head of M&A are dedicating themselves to do in addition to.

The work that we'll continue to do with our principal asset of BPM and our involvement with MTM. So okay. I hope still on with you after having almost almost twice that was perfect. You answered you answered John's question, while there Barry Thank you.

Speaker Change: Into sales for our retail partners and then finally licensing continued its strong growth led by our open AI and Apple news partnerships.

Speaker Change: Together these three revenue lines blended a 10% digital revenue growth above the range. We were forecasting looking to 2025, we view all three digital revenue growth areas as healthy and strongly positioned.

Speaker Change: Thank you John Operator next question.

Speaker Change: Absolutely. Our next question comes from Eric Sheridan with Goldman Sachs. Please go ahead.

Eric Sheridan: Thank you so much for taking the question maybe two if I could first of all the energy team understood on the three pillar dynamic with respect to 25 going into 'twenty six I wonder if we get a little bit more color on what investors should expect in terms of some of the headwinds starting with the potential tailwind for the business that we should be monitoring from the outside in terms of that transformation of coal across those three pillars, and specifically with the transition to a single product and platform how to think about some of the integral.

Speaker Change: In aggregate, we're expecting 10% plus digital revenue growth for the year.

Speaker Change: With high single digit growth in Q1, a few factors contribute to a slightly lower first quarter growth in those high single digits.

Speaker Change: More challenging January and February comps, Easter, which is a key holiday for a shifts this year into Q2 from Q1 last year and there's one less day due to the leap year, the second quarter, Conversely sets up stronger with easier comps in the Easter benefit on.

Eric Sheridan: <unk> dynamics are moving towards that and what it might mean for sort of improving the quality overall on the platform that would be number one and then Barry maybe following up on your answer great to have the opportunity to speak.

Speaker Change: You see has changed over the years in terms of taking stakes in companies that continue rubbing operating businesses. When you think about the framework you just laid out about investing for the long term and IC. How should we think about what your priorities are with respect to operating businesses I suppose maybe investing in businesses like we saw examples of MGM and terrific. Thank you.

Speaker Change: On the digital advertising front, we're expecting mid single digit traffic growth for the year.

Speaker Change: And mid single digit monetization growth.

Speaker Change: Also generate incremental revenue from the launch of decipher plus where we will be seeing third part we'd be selling third party inventory using our proprietary targeting technology. We're testing this with select advertisers this quarter and we'll scale it up throughout the year, and then performance marketing and licensing should both grow solidly for the year.

Eric Sheridan: So we.

Your first question, Eric I've been trying to sum up a little bit what I said before which is we have been progressively improving the product and building our proprietary traffic back to growth. Our SCM proprietary ICM has returned to growth, we expect our proprietary growth to move and improve through the year and get to growth in slide 26.

Eric Sheridan: Consensus choices taken a big chunk out of our third party business, but that business is now going to be stable going forward. So the two together get us to growth going forward on the pro side. Our retention has improved materially we're literally bringing 700 basis points more of the proactive in 'twenty, we brought 700 basis points more of the <unk> active in 2043, and 2024 compared to what we brought to play to win.

Speaker Change: <unk> continues to manage its cost structure thoughtfully as shown by the severance in the fourth quarter due to head count reductions to reallocate resources for.

Speaker Change: For the year, we're forecasting 40% plus digital incremental EBITDA margins, which combined with 10% digital revenue growth and then 10% revenue declines in our print segment lead to our guide of $3 30 to $3 50 of total EBITDA $3 million of total EBITDA.

Eric Sheridan: While our.

Eric Sheridan: Physician is coming down and thus, we're not netting network growth yet those forces will cross going forward, particularly with the incremental changes in customer experience. So we expect the pro network to inflect the growth again as well so the two of those things combined.

Barry Diller: When accounting note as noted in the release, we will have a significant gain a barry I just hand it over to you. Once we will have a significant gain in the first quarter of 2025 of approximately $36 million associated with a highly favorable lease buyout, our adjusted EBITDA guidance excludes this gain.

Eric Sheridan: And that we will take our trajectory back to north of 20 <unk> in terms of single pro product Theres a couple of pieces to it one is moving all of our pros to a single platform with a single product and pricing structures that allow us to run our operations more and more efficiently reduce time to market reduce overhead and make our acquisition and marketing more efficient secondly, it's going to as I said before sunset. Some pricing structure is going to pave the way to grow our revenue per monetized transaction.

Barry Diller: Barry I'll turn it over to you.

Just got a question about capital allocation and how that changed in the context of our strong balance sheet.

Eric Sheridan: Half of the year, which will be another lift in our incremental progress back to growth in terms of integration risk. We've now done five migrations are of comparable size in Europe, we're pretty season to this will likely take a little disruption, but we'll also get back pros from the old product. We do it every time, we do it in Europe.

Barry Diller: Alright. This is all very odd for me because youll have to I've been.

Speaker Change: Did you hear my opening remark.

Speaker Change: We got your opening remarks up through angi in the very beginning of Tdm and then we started last you when you were going through the.

Eric Sheridan: This is basic operations for us and so we expect of course, there can be a little noise in the system, but we actually expect to come out better and move forward. While there I think I covered all of the pieces of your question I got very well said, let's go to Barry.

Speaker Change: Quarterly growth rates of ADM.

Speaker Change: The 22, that's where we lost it.

Barry Diller: As far as operating businesses.

Speaker Change: Oh nice.

Barry Diller: But any way it comes.

Speaker Change: Yeah, well technology gorilla.

Leif.

Barry Diller: Forever, but once the business gets up to scale, you don't want to be spun out to be independent.

Speaker Change: So about how how how many minutes in cause I went on for about 20 minutes and then.

Barry Diller: I'm on the phone.

Barry Diller: I think companies that have multiple operating businesses and foreign offerings into the market. So.

Speaker Change: I've heard nothing.

Speaker Change: I think the key would be to pivot to pivot to the capital allocation section and talk through thoughts on M&A and buyback because we didn't get to that and that's.

Barry Diller: Basically.

Those companies were standing on their own and.

Barry Diller: Okay.

Barry Diller: As we look into the future possibilities.

Speaker Change: Alright.

Speaker Change: This is all because we're not in the same room so.

Barry Diller: I'm sure there'll be operating businesses.

Speaker Change: And the easiest, but Oh did did I cover the turnaround Andrey and Doctor.

Barry Diller: We will operate for a period of time.

Barry Diller: Long I think probably people, who have failed and we will dispose of them. If they succeed we will send them out.

Barry Diller: Thank you. Thank you operator.

Speaker Change: Yes, yes.

Speaker Change: Next question.

Speaker Change: Through angi and most of that debt.

Speaker Change: Absolutely. Your next question comes from Jason <unk> with Oppenheimer. Please go ahead. Thank.

Speaker Change: And terrorism.

Speaker Change: And did I talk about the anti spam.

Jason: Hey, Thanks for taking the questions two questions. Maybe this is the peripheral buried in the second the follow up are doing great.

Speaker Change: No we didnt get Andy Smith, Alright, So let me pick up there and I'm, sorry, everybody but.

Speaker Change: Maybe I'll ask in that order. So just Gary I think one of the questions. We keep getting from investors would be how would you characterize IC kind of post <unk> and he's been a voice to lean more into multi year bet.

Speaker Change: Yes.

Speaker Change: Technology.

Speaker Change: Sales in just a moment you kind of dependent upon it.

Speaker Change: Are you more focused on realizing the Carlsbad and returning the maximum amount of cash and value to shareholders. So just let's start with that question and then I'll just follow up on that.

Speaker Change: So uh huh.

Speaker Change: Whether you've heard or not.

Speaker Change: We spent those.

Speaker Change: Two years, turning around these businesses, which is why I froze everything.

Well.

Speaker Change: You'll see what we do in the next period as I say I stopped us.

Speaker Change: I didn't want to be distracted during this period.

Speaker Change: From using our capital to return it to shareholders for the reasons I said before.

Speaker Change: Uh huh.

Speaker Change: And.

Speaker Change: As you certainly know about our.

Speaker Change: That period has ended and so it's always going to be a balance.

Speaker Change: Somehow.

Speaker Change: Do you think the first opportunity to.

Speaker Change: Decades of spinning off companies or conglomerate, that's an anti conglomerate kind of like that.

Speaker Change: You're investing in your current business is I think there's a real opportunity.

Speaker Change: Inside <unk> and all sorts of areas and I think that May take some capital I think also again, we have a clean slate, we don't have any drag on us we don't have any problem. So to speak all of that sounds can solve so all of our attention can go to seeking new opportunities and they always come if you're I'm not inpatient and outpatient so we will see it will be.

Speaker Change: That concept.

Speaker Change: These are businesses when they get to be of sufficient size, they ought to be spun off and be independent.

Speaker Change: There was nothing more further denies it could do.

Speaker Change: For Angi, Joey and Jeff running the business.

Speaker Change: Complete confidence in them they've done a very good job in getting it to the state where it can get them to grow.

Clearly a mix between returning.

Speaker Change: And also Joey come to me and said I really like a business of my own I'd like my own store and I.

Speaker Change: Capital to shareholders and seeking opportunity.

Speaker Change: Thank you and then Joey now that digital revenue is growing double digits at Meredith.

Speaker Change: I totally respect that and encourage that and and we have the vehicle to do so it made no sense for us to keep Angie partially to have its own majority, but still be a public company, either where innerwear out.

Speaker Change: What are your plans to transition to focus on top of funnel and find ways to further leverage content and drive more engagement and impressions and how do you and do you think that can accelerate revenue over the next few years. Thanks.

Speaker Change: Thanks, Jason we always look at the business is advancing two key drivers in parallel traffic as youre talking about and monetization quantity and price for traffic there is definitely top of funnel elements.

Speaker Change: But.

Speaker Change: It is the perfect time to do the spin off.

Speaker Change: And I'm glad that I think it'll happen.

Speaker Change: Somebody correct me, but I think it's March 31st since the date correct that it'll happen.

Speaker Change: A few key stripe strategic priorities. One is we talked about in the letter we talked about previously a direct consumer relationships where.

Speaker Change: <unk> and.

Speaker Change: Where we engender traffic through new products E Mail and marketing another is continuing to offer premium content.

Speaker Change: So as I said before I did freeze everything we were running burning cash in 'twenty two.

Speaker Change: Behind our industry, leading brands that we optimized for different platforms. So I think Apple news, Google discover social media things like that and then the last one which I mentioned earlier decipher plus.

Speaker Change: We've gone from burning cash and not having $352 million of cash flow this year.

Speaker Change: We purify the company we've sold assets.

Speaker Change: In our partnership with open AI and also on our own we've mapped comparable third party sites that have the same signal of intent that decipher utilizes from the signals developed on our own properties do target and deliver ads with the launch of decipher plus we will now be offering our advertisers and agencies the ability to increase thereby by using our targeting off platform. We believe this will provide.

Speaker Change: We bought MGM before this period.

Speaker Change: I believe that MGM is.

Speaker Change: Okay.

Speaker Change: It is run like a paddock Felipe watch it has superb management.

Speaker Change: No one will ever duplicate Las Vegas.

Speaker Change: Anywhere else in the World, we have 40 plus percent of the market.

Speaker Change: Additional value and utility to advertisers, while also opening up new budgets for <unk>. We're ramping this up steadily and believe it can be large and attractive business on the monetization side of the equation. There are three core elements continuing to be best in class on premium direct sales and Thats all about performance services et cetera for our advertisers. The second is improve and continue to broaden our programmatic efforts to take advantage of the auction market and then continue to <unk>.

Speaker Change: It cannot be disintermediation by any technology.

Speaker Change: There is nothing between it and its customer and serving its customers as you know these hotels run at 90 plus percent capacity.

Speaker Change: And the.

Speaker Change: Right and lead the market on performance marketing, we felt great about the last quarter with 22% growth keep a chunk of that.

Speaker Change: The future for MCM building, a 10 plus billion dollar resort in Japan, the only gaming resort in the entire country in Osaka, which will open.

Speaker Change: Drive as much traffic and grow revenue per session in terms of higher growth rates that you asked about our guide is 10% plus digital revenue growth this year and going forward, but we believe in the power of our platform and the incremental growth opportunities. It provides so we will keep pushing.

Speaker Change: Let's take some years to build it but it.

Speaker Change: <unk> is a great flag for M. G M. It's going to plant other flags around the world, it's going to simplify itself over the next period I think it's been complicated a little overly complex for people to understand.

Speaker Change: Thank you Jason Operator next question.

Speaker Change: Our next question today comes from James <unk> with Jefferies. Please go ahead.

Speaker Change: Great I think that can you break down the results.

Speaker Change: Is there any additional detail you can get <unk>.

Speaker Change: It's wildly undervalued.

Speaker Change: Results between enterprise and consumer and what the impact on Gordon.

Speaker Change: And I think that it's just.

Speaker Change: Okay, Yes, so we broke out carries its own segment. This quarter. This is a business. We bought in 2020 and have spent a lot of time and energy rebuilding the platform and advancing it and we will talk about our further efforts there they're estimating business lines, it's consumer business, where individuals and families directly subscribe to <unk> dot com to be matched with caregivers and find home care.

Speaker Change: Consistent.

Speaker Change: How lucky do you get to be able to have found a company at a time when it was.

Speaker Change: It was all shut down in Las Vegas, when we came upon it wasn't open were able to buy and advantageously.

Speaker Change: Bought back a lot of it stock continued to do so.

Speaker Change: And I just couldn't I.

Speaker Change: And then enterprise business, where companies pay care to provide benefits to their employees. The company's can purchase backup care days that employees can use to get emergency care for their child or senior if needed. They can access specialists to help support different different needs at home with their family and they can also pay for their employees to have full access to the care Dot com marketplace. The last few years of care have seen ups and downs driven by Covid <unk>.

Speaker Change: I think the idea of having D D M a.

Speaker Change: And the position of the DD Amazon.

Speaker Change: Outperforming it's it's.

Speaker Change: Its competitors.

Speaker Change: Uh huh.

Speaker Change: I'm going to ask you one more question.

Speaker Change: The thing I'm, giving you the stats of the traffic digital traffic and DDR.

Speaker Change: Load by post pandemic adjustment the enterprise business experienced a major boost during the pandemic as companies sought to help employees manage care needs with different work arrangements and get them back in the office that leveled out post pandemic right now the enterprise business has a nice tailwind behind it as employer provided support for care needs is increasingly becoming a standard bell benefit sort of table Stakes in some way.

Speaker Change: I think you were halfway halfway through that when and which is exactly when we lost you right alright, well good halfway or is really the.

Speaker Change: First of it so let me go from a halfway bad to the next halfway good.

Speaker Change: For six quarters, we went down 713, 14 and 15, 10%.

Speaker Change: The health insurance the enterprise line grew last year and should continue to be a solid performer going forward and we're one of the real leaders in that category on the consumer side, we saw greater macro tailwind into 'twenty two period than we realized and it frankly massive deficiencies in the core product experience consumer decline last year as we lap challenging comps struggled on marketing and the product lagged on conversion and renewals.

Speaker Change: Beginning in the fourth quarter were 23, plus nine fourth quarter first quarter 13, and 12% then 60% in the fourth quarter, just announced 10% I.

Speaker Change: I mean, that's an incredible reversal in IBD Emmys.

Speaker Change: Sure.

Speaker Change: It is in it.

Speaker Change: A new CEO, Brad Wilson and his team have been actively working to improve the product and focus on areas like messaging and matching and we believe the impact will be seen throughout this year it'll be a slow return to growth given the subscription product and the nature of ramping back up in reversing trends, but we love care Dot coms positioning as the industry leader with the most care seekers and caregivers in the market. We also know the consumer demand is there. The company recently released its annual state of the IND.

Speaker Change: It has to go through this difficult integration and transition also hit by.

Speaker Change: The AD market itself, having a decline.

Speaker Change: Got it.

Speaker Change: It is an excellent asset for us.

Speaker Change: Get the bedrock right now of I C.

Speaker Change: D D M and M T M plus we have.

Speaker Change: History report and the challenges of finding good child in senior care are only growing as are the cost so with an improved experience and better marketing. We think the team can seize on that opportunity and return to growth.

Speaker Change: Obviously.

Speaker Change: You all know our balance sheet is very strong.

Speaker Change: And then James next question Yeah, Great just one quickly on the corporate costs I'm, just curious what's driving that elevated level in 2005, and then how should we think about that on a normalized run rate going forward yes.

Speaker Change: As I said earlier we.

Speaker Change: I froze everything it's me, but that we're not buying stock back during this period.

Speaker Change: Because I didn't think we deserve to until we've gotten our businesses in shape and Cochrane consequence about our business not going to talk about what we will do but I will talk about one thing which is the fact that I did stop it that's stopping has ended.

Speaker Change: Obviously, you're a much higher number this year, there's a number of nonrecurring things going on in corporate this year first of all are associated with separation from IAC and movement to angi six year consulting agreement will be recognized at the time of the <unk> spend all at once and extra costs associated with the angi spend tax legal filing et cetera. Additionally, we have legacy matters that are hitting the piano.

Speaker Change: And I'm not going to foresee things because what I've just said I hope it is fairly obvious but.

Speaker Change: This year, such as ongoing litigation relating to the match group separation that will drive expenses. This year and then finally is talking about.

Speaker Change: I Hope you understand the reason I did stop it and wanted us to freeze and only pay attention to our businesses and getting them straightened out getting the whole corporate structure straightened out.

Speaker Change: Prior quarter.

Speaker Change: <unk> taken actions to streamline cost of corporate and Thats created onetime expenses. This year I would also flag when you look at 'twenty for the run rate costs were artificially masked in the reported number was lower due to a $10 million out of period insurance payment that we received in 'twenty four so in sum we are incurring roughly $50 million.

Speaker Change: Now in a situation where that phase has finished I think we are pressuring the bye bye bye bye. These recently announced events as far as what are we going to do with our capital there.

Speaker Change: Nonrecurring costs this year that will not be in the cost structure in 2006, and beyond and will provide more clarity on that as we move forward.

Speaker Change: There are areas I think of D D M invest in.

Speaker Change: There are also.

Speaker Change: Thanks, Jami operator next question.

Speaker Change: All sorts of opportunities whether it's by building a history of this company has been God knows.

Speaker Change: Absolutely. Our next question today comes from Ross Sandler of Barclays. Please go ahead.

Ross Sandler: Great very thing for hopping on the call here I guess a question for you is how involved do you want to be in the day to day at IAC and how do you feel about the management structure at the top with Joey moving over to AMG and then Chris just a follow up on the opportunity for decipher plus in non owned and operated inventory could that be material in 'twenty, five and what kind of impact.

Speaker Change: Endless starts.

Speaker Change: Five of businesses.

Speaker Change: And that landscape, while I think you know the internet field is fairly covered but.

Speaker Change: We're going to look at anything that talks walks or whatever.

Speaker Change: And we're not anxious.

Speaker Change: Could that have on profitability.

Speaker Change: We'll we'll do this as we've done it before tell us a good idea.

Speaker Change: Alright, I'll start quickly I have great confidence in my colleagues in terms of the day to day.

Speaker Change: And if we think it makes sense.

Speaker Change: We'll go forward with it and we've at least our history has shown.

Speaker Change: And Russell a broker to help me with that.

Speaker Change: But we really have we have.

Speaker Change: That and doing that we built assets and value and that's what me and Chris Russell.

Speaker Change: <unk> operating business, which is Super management does not need us day to day.

Speaker Change: And.

Speaker Change: Again I think this is a group that's up by the nature of the change that all of these things I think it was up.

Speaker Change: Russell <unk>, our head of M&A are dedicating themselves to do in addition to.

Speaker Change: This impressive eager and I'm going to do what we thought hopefully stimulates process, dropping a little crazy and and and and.

Speaker Change: The work will continue to do with.

Speaker Change: Our principal asset of DBM, and our involvement with M. D. M. So okay I hope still I'm with you after having out.

Speaker Change: Some of the things that I think reported which obviously.

Speaker Change: So much depends on the walk or whatever anyway, obviously.

Speaker Change: Capital allocation.

Speaker Change: Almost done this twice.

Speaker Change: And and seeking out new opportunities.

John Blackledge: That was perfect you answered and you answered John's question, while there Barry Thank you.

Speaker Change: Yes.

Speaker Change: Thank you and then Ross decipher plus we're excited about we think it can be a powerful growth driver and it really increases the company's access to two types of inventory that advertisers want the first is lookalike premium inventory in our core categories food health home, others, where we see consumer intent at scale, So <unk>, often limited by inventory and our own premium pricing on.

Speaker Change: Thank you John Operator next question.

Speaker Change: Absolutely. Our next question comes from Eric Sheridan with Goldman Sachs. Please go ahead.

Eric Sheridan: Thank you so much for taking the question maybe two if I could first for the <unk> team understood on the three pillar dynamic with respect to 25 going into 'twenty six I don't know if we get a little bit more color on what investors should expect in terms of some of the headwinds turning into potential tailwind for the business that we should be monitoring for the out.

Speaker Change: Highly performing inventory in these categories and we can do use decipher plus to identify similar performing inventory on those third party sites and by efficiently. This inventory today is being monetized on programmatic platforms at lower rates were at current buyers lack the powerful intent driven signal that decipher provides the <unk>. The second set of inventory is undervalued, yet performing impressions in our CAD.

Eric Sheridan: Side in terms of that transformation of coal across those three pillars, and specifically with the transition to a single product and platform how to think about some of the integration dynamics are moving towards that and what it might mean for sort of improving the quality overall on the platform that would be number one and then Barry maybe following up on your.

Speaker Change: <unk>.

Speaker Change: We have core advertisers, who were being priced out of inventory because of the performance and CPI is so high.

Speaker Change: And they're looking for some lower price volumes to be included in their buys we can do that and still have the decipher performance guarantees so think about it.

Speaker Change: <unk> are a great to have the opportunity to speak.

Speaker Change: IEC has changed over the years in terms of taking stakes in companies and continued rubbing operating businesses. When you think about the framework you just laid out about investing for the long term and IAC, how should we be thinking about what your priorities are with respect to operating businesses as opposed to maybe investing in businesses like we saw examples like MGM and Toro. Thank you.

Speaker Change: Aiding both elements of the price curve because of these factors. We believe we can substantially increase our supply of impressions and do it at attractive margins, while providing our.

Speaker Change: The advertisers with exceptional performance, we're ramping this offering up across 25 selling it into accounts and believe it can grow rapidly on a revenue basis on the incremental margin point.

Speaker Change: We said, we're targeting 40 plus.

Speaker Change: Digital incremental EBITDA adjusted EBITDA margins, we believe that strikes the right balance between investment in products and content on the one hand and profit growth in the other and decipher plus we believe will be supportive of those types of incremental margins.

Speaker Change: Joe.

Speaker Change: With your first question, Eric I'm going to try and sum up a little bit what I said before which is we have been progressively improving the product.

Ross Sandler: Thank you Ross operator next question.

Speaker Change: And building our proprietary traffic back to growth.

Speaker Change: Absolutely. Our next question today comes from Justin Patterson at Keybanc. Please go ahead.

Speaker Change: Our SCM proprietary RCM has returned to growth, we expect our proprietary growth to move and improve through the year and get to growth in 2026.

Justin Patterson: Great. Thank you and good morning, I wanted to hit on Jason Scott that question, a different way what do you see as the key steps to grow direct traffic more than onex the middleman.

Justin Patterson: Given these initiatives how much the financial profile of the business differ versus what we see today.

Speaker Change: Consensus choices taken.

Speaker Change: Big chunk out of our third party business, but that business is now going to be stable going forward. So the two together get us to growth going forward on the pro side, our retention has improved materially.

Speaker Change: Thanks, Thanks, Jason.

Speaker Change: So the direct to consumer effort is one that Neil and team have been driving for a while and it's an offensive plan.

Speaker Change: We know our brands are exceptional we know their trusted and we know they are sought after by consumers. We've also talked for a few quarters about our efforts to expand our content to as many platforms as possible to engage our customers and grow our touch points with consumers to be able to interact with a directly some of that has been through E Mail marketing video social media and also live events, which have worked very well from.

Speaker Change: We're literally bringing 700 basis points more of the pros active in 'twenty, we brought 700 basis points or of the pros active in 2023 into 2024 compared to what we brought from 'twenty two into 'twenty three.

Speaker Change: Both engagement and monetization perspective. This year, we're looking to continue to invest in these areas and also rollout new products initially centered on people and our industry, leading food brands to engage consumers directly and then further enhanced loyalty, which drives even deeper engagement and repeat engagement these products, which will be providing more information as we go take advantage of video personalization utility.

Speaker Change: While our acquisition is coming down and thus, we're not netting network growth yet those forces will cross going forward, particularly with the incremental changes in customer experience. So we expect the pro network to inflect the growth again as well so the two of those things are combined.

Speaker Change: And that will take our trajectory back to growth in 2026 in terms of single pro product Theres a couple of pieces to it one is.

Speaker Change: And our breadth of content and storytelling and we think we're going to offer experiences in these categories that no. One else is today with respect to financial impact.

Speaker Change: Moving all of our pros to a single platform with a single product and pricing structure is going to allow us to run our operations far more efficiently reduce time to market reduce overhead and make our acquisition and marketing more efficient.

Speaker Change: Monetization models are similar and so we don't do them well, we view them as advancing and not dilutive.

Speaker Change: To our to our overall financial efforts at <unk>.

Speaker Change: Thanks, Jeff and Jim another question.

Speaker Change: Okay. Thank you operator next question.

Speaker Change: Secondly, it's going to as I said before sunset some pricing structures, it's going to pave the way to grow our revenue per monetized transaction in the second half of the year, which will be another lift in our incremental progress back to growth in terms of integration risk. We've now done five migrations of a comparable size in Europe, we're pretty.

Speaker Change: Absolutely. Our next question comes from Youssef Squali with Securities. Please go ahead.

Speaker Change: Thank you one question for Chris and one for Barry. Please so back to the sniper now that you've been granted.

Speaker Change: And there can you maybe talk about the impact on <unk>.

Speaker Change: It seemed like conversion at pricing et cetera, and how much of that is left.

Speaker Change: I'm not talking about soccer clusters.

Speaker Change: Season that this.

Barry Diller: And then Barry.

We will likely take a little disruption, but we'll also get back pros from the old product. We do it every time, we do it in Europe.

Speaker Change: I guess now that I know that LNG is going to be spun off how do you see IC, who deal with MGM posted that does that compel you to want to do more in that category.

Barry Diller: We've just this is this is basic operations for us and so we expect of course, there to be a little noise in the system, but we actually expect to come out better and move forward well there I think I covered all the pieces yet questionnaire, that's very well said, let's go to Barry.

Speaker Change: Have there been a bunch of news coming out that Jim, but I think that our JV partner <unk>. Since you have had some changes at the top so just how do you think about that opportunity.

Speaker Change: You seem to have gotten some flexibility in your corporate structure. Thank you.

Speaker Change: Hum.

Speaker Change: Peter you want go first.

Barry Diller: As far as operating businesses.

Speaker Change: Yes sure a.

Speaker Change: Theaters, what I said before which is I think MTM is in excellent shape excellent operating results.

Speaker Change: Well take it any way it comes.

Speaker Change: I leave.

Speaker Change: So forever.

Speaker Change: And superb management team.

Speaker Change: Once the business gets up.

Andrew: Andrew I'm going to continue to.

Speaker Change: To sufficient scale it ought to be spun out and be independent and on its own.

Speaker Change: Opportunistically certainly it's been buying back stock.

Speaker Change: Knowing how undervalued is which would increase our ownership and increase our ownership as I said before I consider it to be a forever asset.

Speaker Change: I think companies that have multiple operating businesses and trying to operate each of them I think so left at that basically.

Speaker Change: And this of course, possibly could change, but I can't fathom that.

Speaker Change: And I think it's in it.

Speaker Change: Then they would if those companies quarter.

Speaker Change:

Speaker Change: Well as I said earlier.

Speaker Change: Standing on their own.

Speaker Change: I think we'll see it.

Speaker Change: And and.

Speaker Change: That is somewhat less complex going forward.

Speaker Change: Okay.

Speaker Change: <unk>.

Speaker Change: Uh huh.

Speaker Change: As we look into the into the future possibilities.

Speaker Change: I just think it's ours is ever going away.

I'm sure that they'll be operating businesses.

Speaker Change: Thank you Abby and then you said with respect to decipher.

Speaker Change: But we will operate for a period of time, but actually for.

Speaker Change: We talked before about the case studies.

Speaker Change: We've executed with our advertisers and we have over 30 case studies that prove it out what's interesting is we.

Speaker Change: For too long I think probably people have failed and we will dispose of them. If they succeed we will spin them out.

Speaker Change: We target or optimize different metrics based.

Speaker Change: Thank you. Thank you.

Speaker Change: Based on what the advertisers' goals are and giving campaign and as you know decipher today is all premium direct campaigns. So for some for some advertisers thats click through for others. Its efficiency for others. It's actually sales conversion and then some in store visits we have.

Speaker Change: Operator next question.

Speaker Change: Absolutely. Our next question comes from Jason <unk> with Oppenheimer. Please go ahead.

Speaker Change: Hey, Thanks for taking my questions two questions maybe.

Speaker Change: Maybe this is the first full bearing and the second is a follow up for Joe and Chris.

Speaker Change: Quite confident we've outperformed in all of these case studies are cookies, and then blow away non cookie based solutions. We've seen the we've talked about this last quarter that.

Speaker Change: Maybe I'll ask him that order. So just Barry I think one of the questions. We keep getting from investors would would be how would you characterize it.

Speaker Change: Campaigns that orders that include decipher are probably over half of the direct digital revenue and DDI and that trend has continued as we said last quarter that all.

Speaker Change: <unk>.

Speaker Change: Kind of post now the angi spin you're poised to lean more into multiyear back or.

Speaker Change: Or are you more focused on realizing the Carlsbad and returning kind of the maximum amount of cash and value to shareholders. So just let's start with that question and then I have just a follow up on the Meredith digital.

Speaker Change: Orders with the type of our over 50% larger than orders without the safer and that trend will continue.

Speaker Change: It is an important feature in an overall direct advertising campaign. We also were thrilled that being able to integrate open AI technology, we can utilize video and images in our targeting and our scoring for even better contextual performance and we expect to continue on a dance that you said on your question on that and again this is going out.

Speaker Change: Digital bank.

Speaker Change: Well.

Speaker Change: You'll see what we do in the next period as I say I stopped us from from using our capital to return it to shareholders for the reasons I said before.

Speaker Change: You saw the announcement with Amgen, we could still do nice really nice momentum in the business that I think we were talking about on the product side for a while they talked about how that materializes into the business.

Speaker Change: That period has ended.

Speaker Change: And so it's always going to be a balance.

Speaker Change: You take the first opportunity.

Speaker Change: And MGM and bet MGM, both a big relationship with ethane both of the CEO and the chair chairperson levels, though David.

Speaker Change: Investing in your current business I think there's a real opportunity.

Speaker Change: Inside D DM and all sorts of areas and I think that May take some capital I think also again, we have a clean slate, we don't have any drag on us we don't have any problems. So to speak all of that stuff has been solved.

Speaker Change: Expect anything to change that thank you.

Speaker Change: Operator next question.

Speaker Change: Our next question today comes from Nick Jones of citizens JMP. Please go ahead.

Nick Jones: Great. Thanks for taking my question I guess, just a couple on.

Speaker Change: Learnings from AI.

Speaker Change: And just focused on kind of improving the questioning and matching and then touch on your father's increased focus on kind of Egencia AI.

Speaker Change: So all of our attention Couldnt go.

Speaker Change: Seeking new opportunities and they always come if you're not in patient and I'm not patient. So we will see.

Speaker Change: As you think about the kind of angi playbook going forward is that going to play a role in kind of improving matching I guess the same question for <unk> Dot com. Thanks.

Speaker Change: Yeah I'll start with.

Speaker Change: Clearly a mix between returning.

Speaker Change: Yes, unequivocally that Jeff talked about that a little bit in his letter I think I've said for a while and we're not sure whether this happens or not but is it for a while that they wanted to.

Speaker Change: Capital to shareholders and seeking opportunity.

Speaker Change: Things that could happen to angi and Android user interface would be if consumers adopt a conversational UI and obviously, they're doing that is to some of our significant extent with GBT and similar but that's the ideal UI for us to get the right information from consumers about job and of course, the better for me to get a job of better managing we can do and then on top of that AI is a better technology for <unk>.

Speaker Change: Thank you. Thank you and then Joey Chris now the digital revenues growing double digits at Meredith.

Speaker Change: Digital what are your plans to transition.

Speaker Change: On top of funnel and find ways to further leverage our content and drive more engagement and impression and how do you and do you think that can accelerate revenue over the next few years.

Speaker Change: Starting data to allow for better matching but if we can get that conversational UI adopted broadly and consumers are comfortable with that I think that that is.

Jason Oppenheimer: Yes, thanks, Jason.

Speaker Change: Net very positive for angi and the user experience. It yes, I would just say effectively that becomes agenda.

Speaker Change: We always look at the business is advancing two key drivers in parallel traffic as youre talking about and monetization quantity and price.

Where we're effectively serving the agent we're matching with the pro and so that's where we see this going as we leverage those tools and technology and I think I'll, just say broadly across the portfolio. We said this for a while where you have proprietary datasets.

Jason Oppenheimer: For traffic there is definitely top of funnel elements.

Jason Oppenheimer: A few key stripe strategic priorities. One is we talked about in the letter and we've talked about previously is direct consumer relationships.

Speaker Change: Application of AI optimization and analysis, you'll have enhanced things like matching on our marketplaces be at Angi care Vivien elsewhere, and we are seeing is those applications and then secondly, onboarding sign ups service request generation nurse.

Jason Oppenheimer: Where we engender traffic through new products E mail and marketing.

Jason Oppenheimer: Another is continuing to offer premium content.

Jason Oppenheimer: Behind our industry, leading brands that we optimized for different platforms. So think Apple news, Google discover social media things like that.

Speaker Change: Information it Vivian all of these these open information entry activities as well as classic customer service functions, you can see where the puck is going do to VII opportunities.

Jason Oppenheimer: And then the last one which we mentioned a little earlier decipher plus.

Speaker Change: And another question, Okay, operator last night.

Jason Oppenheimer: In our partnership with open AI and also on our own we've mapped comparable third party sites.

Speaker Change: And our last question today comes from Tom Champion with Piper Sandler. Please go ahead.

Tom Champion: Good morning, Thanks for all the candor and the comments I guess.

Jason Oppenheimer: That have the same signal of intent that decipher utilizes from the signals developed on our own properties to target and deliver ads with the launch and decipher plus we will now be offering our advertisers and agencies the ability to increase thereby by using our targeting off platform.

Speaker Change: Chris I'd love to hear a little bit more about.

Speaker Change: The verticals within <unk>, and just maybe the trends that unfolded in 14, and what Youre seeing thus far.

Speaker Change: An interesting comment on.

Speaker Change: Digital AD revenue, taking place via spend commitments and maybe that portion overlaps with decipher.

Speaker Change: And so with the site for seemingly growing well.

Speaker Change: Kind of curious if you have more revenue visibility.

Jason Oppenheimer: We believe this will provide additional value and utility to advertisers. While also opening up new budgets for D. D. M. Ramping this up steadily and believe it can be a large and attractive business on the monetization side of the equation. There are three core elements continuing to be best in class on premium direct sales and Thats all about performance.

Hopefully that makes sense, maybe just a final question for Joe If I can Joey I think you ran the search business way back when and.

Speaker Change: I'd just be curious as you have observed open AI in search of all of what you think about the future of search broadly. Thank you.

Speaker Change: Yeah, that's a big one, but you're going to end up.

Tom Champion: Slipped in there Tom you go first.

Jason Oppenheimer: <unk> service etcetera for our advertisers. The second is improved and continue to broaden our programmatic efforts to take advantage of the auction market and then continue to innovate and lead the market on performance marketing, we felt great about the last quarter with 22% growth keep chugging.

Speaker Change: Answer that question, yes, that's fine.

Tom Champion: I point, you had and then we can go to the big concepts. So Tom you know a few things.

Speaker Change: We described the AD market is fine right now.

Tom Champion: We definitely saw the momentum pick back up after the.

Speaker Change: After the political freeze.

Speaker Change: People broadly advertisers agencies broadly I think we'd say are are more short term in their commitments move quickly, but they've got things to sell and brands to build and we're seeing that.

Jason Oppenheimer: Thus drive as much traffic and grow revenue per session in terms of.

Jason Oppenheimer: <unk> growth rates that you asked about our guide is 10% plus digital revenue growth this year and going forward, but we believe in the power of our platform.

Speaker Change: Across categories No no major.

Speaker Change: The trends that we would note from the past, we've got clearly health home.

Jason Oppenheimer: The incremental growth opportunities. It provides so we will keep pushing.

Speaker Change: Food and beverage finance others.

Jason Oppenheimer: Thank you Jason Operator next question.

Speaker Change: We'd love to see some momentum returned in finance over time.

Speaker Change: Absolutely and the next question today comes from James.

Speaker Change: Health is fine.

Speaker Change: Jefferies. Please go ahead.

Speaker Change: And what we'll continue to monitor how the economy grows decipher plays in the direct premium of ancillary our goal is to roll it into more through product enhancements into.

James: Great. Thanks, guys can you breakdown the results at <unk> Dot Com is there any additional detail you can get divergent results between enterprise and consumer and what to expect going forward in a nice kind of a follow up question.

Speaker Change: More on.

Speaker Change: On demand AD buying and Thats something that the team is working on.

Speaker Change: Okay, Yes.

Speaker Change: You'll be able to serve advertisers in both places so we are <unk>.

Speaker Change: So we broke out carries its own segment. This quarter. This is a business we bought in 2020 and have.

Speaker Change: <unk> on the current AD market, but cautious as always given the geopolitical volatility and everything that has been a hallmark of the last few years.

Speaker Change: We spent a lot of time and energy.

Speaker Change: Building the platform.

Speaker Change: Yes, so I'll answer a little bit anecdotally in and then maybe broader but.

Speaker Change: Advancing it.

Speaker Change: We will talk about our further efforts there.

Speaker Change: As I start searches now and as many people I know start searches now and increasing share is certainly going to.

Speaker Change: Two main business lines, it's consumer business, where individuals and families directly subscribe to care dot com to be matched with caregivers and find home care and then its enterprise business, where companies pay care to provide benefits to their employees. The company's can purchase backup care days that in.

Speaker Change: The AI platforms, and that's because of the good efficient experience and.

Speaker Change: That experience to continue to gain share it's a meaningful evolution from the 10 blue links and we've been looking for that meaningful evolution to done Bluelinx for a long time and I think that is.

Speaker Change: <unk> can use to get emergency care for their child Theyre senior if needed. They can access specialists to help support different care different needs at home and with their family and they can also pay for their employees to have full access to the care dot com marketplace.

Speaker Change: So found advancement I think one of the keys in that is those user interfaces whether there.

Speaker Change: Voice or or sort of AI conversation than they were used to.

Speaker Change: <unk> four fewer answers and that means that wasn't going to be important there and we think about that in the context of IC and <unk> and in the context of impaired in the context of Angi is you got to be the best in the category with the best content and for those I think you are in a very good position and if you're further into the tail I think that's a much harder position and.

Speaker Change: The last few years at care have seen ups and downs driven by Covid, then followed by post pandemic adjustment.

Speaker Change: The enterprise business experienced a major boost during the pandemic as companies sought to help employees manage care needs with differing work arrangements and get them back in the office that leveled out post pandemic right now the enterprise business has a nice tailwind behind it as employer provided support.

Speaker Change: So I think that these models or <unk> and those user interfaces continue to take care for awhile, and then sort of concentrate audience around the very best in a more meaningful way.

Speaker Change: Thank you. Thank you Tom Thank you operator and everyone. Thank you all for a decade or more of these and we left from here. Thank you. Thank you and an honor.

Speaker Change: Sure.

Speaker Change: <unk> needs is increasingly becoming a standard benefit sort of table Stakes in some way similar to health insurance. The enterprise line grew last year and should continue to be a solid performer going forward.

Speaker Change: Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Speaker Change: And we're one of the real leaders in that category on the consumer side, we saw greater macro tailwind into 'twenty two period than we realized and it frankly mask some deficiencies in the core product experience consumer declined last year as we lap challenging comps.

Speaker Change: Struggled on marketing and the product lagged unconverted and renewals new CEO, Brad Wilson and his team have been actively working to improve the product focused on areas like messaging and matching and we believe the impacts will be seen throughout this year it'll be a slow return to growth given the subscription product.

Speaker Change: And the nature of ramping back up in reversing trends, but we loved care dot coms positioning as the industry leader with the most care seekers and caregivers in the market. We also know the consumer demand is there. The company recently released its annual state of the industry report and the challenges of finding good child in senior care are only growing.

Speaker Change: As are the costs, so with an improved experience and better marketing.

Speaker Change: We think the team can seize on that opportunity and returned to growth.

Speaker Change: And then James next question Yeah.

Speaker Change: Great just one quickly on the corporate costs, just curious what's driving that elevated level in 2025, and then how should we think about that on a normalized run rate going forward.

Speaker Change: Yeah.

Speaker Change: We guided.

Speaker Change: You have a much higher number this year, there's a number of nonrecurring things going on in corporate this year first or are associated with joey's separation from IAC and.

Speaker Change: Movement to Angi <unk>.

Speaker Change: Six year consulting agreement will be recognized at the time of the angi spin all at once.

Speaker Change: <unk> costs associated with the angi spend tax legal filing et cetera.

Speaker Change: Additionally, we have legacy matters that are hitting the P&L. This year, such as ongoing litigation relating to the match group separation that will drive expenses. This year and then finally as I talked about.

Speaker Change: In the prior quarter.

Speaker Change: We have taken actions to streamline costs at corporate.

Speaker Change: And that's created one time expenses this year.

Speaker Change: I'd also flag when you look at 'twenty for the run rate costs were artificially masked in the reported number was lower due to a $10 million out of period insurance payment that we received in 'twenty four so in sum we are incurring roughly $50 million.

Speaker Change: Nonrecurring costs this year that will not be in the cost structure in 26 and beyond.

Speaker Change: We will provide more clarity on that as we move forward.

Speaker Change: Thanks, James Operator next question.

Speaker Change: Absolutely. Our next question today comes from Ross Sandler of Barclays. Please go ahead.

Speaker Change: Great very thanks for hopping on the call here I guess a question for you is how involved do you want to be in the day to day at IAC and how do you feel about the management structure.

Speaker Change: With with Joey moving over to energy and then Chris just a follow up on the opportunity for this site for Clos and non owned and operated inventory could that be material in 'twenty, five and what kind of impact could that have on profitability deal.

Speaker Change: All right I'll start quickly I have great confidence in my colleagues.

Speaker Change: In terms of the day to day.

Speaker Change: Chris helping and Russell are both going to help me with that but.

Speaker Change: But we really have we.

Speaker Change: We have one prime operating business, which goes superb management does not need us day to day.

And I think again I think this is a group that just by the nature of the changed at all of these things I think it was.

Speaker Change: As a freshman eager.

Speaker Change: And I'm Gonna do what I've always thought hopefully stimulate the process drive people crazy and.

Speaker Change: And and and.

Speaker Change: And pay attention to the things that I think are important which obviously.

Speaker Change: I mean, it's obviously too much today I don't know why but whatever anyway, obviously, it involves capital allocation and and and and and seeking out new opportunities.

Speaker Change: Yes.

Speaker Change: Thank you and then Ross decipher plus we're excited about.

Speaker Change: We think it can be a powerful growth driver it really increases the company's access to two types of inventory that advertisers want. The first is look alike premium inventory in our core categories food health home, others, where we see consumer intent at scale, So etfs offer.

Speaker Change: And limited by inventory and our own premium pricing on on highly performing inventory in these categories and we can do use decipher plus to identify similar performing inventory on those third party sites and buy it efficiently. This inventory today is being monetized on programmatic platform.

Speaker Change: Arms at lower rates.

Speaker Change: Where current buyers lack the powerful intent driven signal that decipher provides to <unk>. The second set of inventory is undervalued, yet performing impressions in our categories.

Speaker Change: So we have core advertisers, who are being priced out of <unk> inventory because of the performance and CPI is so high.

Speaker Change: And they're.

Speaker Change: They are looking for some lower price volume to be included in their buys we can do that and still have the decipher performance guarantee so think about it is as.

Speaker Change: Aiding both elements of the of the price curve because of these factors. We believe we can substantially increase our supply of impressions and do it at attractive margins.

While providing our advertisers with exceptional performance, we're ramping this offering up across 25 selling it into accounts and believe it can grow rapidly on a revenue basis on the incremental margin point.

Speaker Change: We said, we're targeting 40 plus.

Speaker Change: Digital incremental EBITDA or adjusted EBITDA margins, we believe that strikes the right balance between investment in products and content on the one hand and profit growth on the other end.

Speaker Change: And decipher plus we believe will be supportive.

Speaker Change: Of those types of incremental margins.

Speaker Change: Thank you Ross operator next question.

Speaker Change: Absolutely. Our next question today comes from Justin Patterson of Keybanc. Please go ahead.

Justin Patterson: Great. Thank you good morning, I wanted to hit on Jason's Dot Dash question a different way.

Justin Patterson: Do you see as the key steps to grow direct traffic more and eliminates the middleman and then as you execute on these initiatives how might the financial profile of the business differ versus what we see today. Thank you.

Justin Patterson: Thanks, Thanks, Jason Justin.

Speaker Change: So the direct to consumer effort is one that Neil and team have been driving for awhile and it's an offensive plan.

Speaker Change: We know our brands are exceptional we know their trusted and we know they are sought after by consumers. We've also talked for a few quarters about our efforts to expand our content to as many platforms as possible.

Speaker Change: To engage our customers and to grow our touch points with consumers to be able to interact with a directly.

Speaker Change: Some of that has been through E mail marketing.

Speaker Change: Social media and also live events, which have worked very well from.

Speaker Change: Both engagement and monetization perspective.

Speaker Change: This year, we're looking to continue to invest in these areas and also rollout new products initially centered on people.

Speaker Change: And our industry, leading food brands.

Speaker Change: To engage consumers directly and then further enhanced loyalty, which drives even deeper engagement and repeat engagement.

Speaker Change: These products, which will be providing more information as we go take advantage of video personalization utility and our breadth of content and storytelling and we think we're going to offer experiences in these categories that no one else has today with.

Speaker Change: With respect to financial impact.

Speaker Change: The monetization models are similar.

Speaker Change: And so we don't view them, well, we view them as advancing and not dilutive.

Speaker Change: To our to our overall financial effort to CDM.

Speaker Change: Thanks, Jeff did you have another question.

Speaker Change: No that's it thank you.

Speaker Change: Okay. Thank you operator next question.

Speaker Change: Absolutely. Our next question comes from Youssef Squali with <unk> Securities. Please go ahead.

Speaker Change: Excellent. Thank you one question for Chris and one for Barry. Please so Chris back to decipher now that you've integrated open AI Tech in there can you maybe talk about the impact on <unk>.

Speaker Change: That <unk> seem like version at pricing et cetera, and how much of that is left.

Speaker Change: When you view I'm not talking about the soccer plus just the soccer on the owned and operated and then Barry.

Speaker Change: I guess now that I know that.

Speaker Change: And she is going to be spun off how do you see.

Speaker Change: IC, who these mood MGM posted that does that compel you to want to do more with that category.

Speaker Change: Or how they're being a bunch of news coming out that MGM is I think the other JV partner <unk>. Since you have had some changes at the top so just how do you think about that opportunity.

Speaker Change: Now that.

Speaker Change: You seem to have gotten some flexibility in your corporate structure. Thank you.

Peter: Peter you want to go first.

Peter: Yes sure.

Speaker Change: What I've said before which is I think MGM is in excellent shape excellent operating results.

And superb management team.

Speaker Change: Hmm.

Speaker Change: MGM is going to continue to.

Speaker Change: Opportunistically.

Speaker Change: Certainly it's been buying bracket sockets.

Speaker Change: To do so knowing how undervalued what it is.

Speaker Change: We will increase our ownership we may increase our ownership as I said before I consider it to be a four ever asset.

Speaker Change: Conditions of course, possibly could change I can't fathom that and I think it's in it.

Speaker Change: I also said earlier.

Speaker Change: Ah.

Speaker Change: I think we'll see it.

Speaker Change: Something that yes.

Speaker Change: Less complex going forward.

Speaker Change: But.

Speaker Change: I just think it's.

Speaker Change: It's ours ever going away.

Speaker Change: Thank you.

Speaker Change: And then you said with respect to decipher.

Speaker Change: We've talked before about the case studies.

Speaker Change: We've executed with.

Speaker Change: Our advertisers and we have over 30 K studies that.

Speaker Change: Prove it out what's interesting is we.

Speaker Change: We target or optimize different metrics.

Speaker Change: Based on what the advertisers' goals are in the given campaign and as you know decipher today is all premium.

Speaker Change: Direct campaigns.

Speaker Change: So for some for some advertisers thats click through for others its efficiency for others, It's actually sales conversion and then some in.

Speaker Change: In store visits we have.

Speaker Change: We are quite confident we've outperformed in all of these case studies are cookies.

Speaker Change: Cookies, and then blow away non cookie based solutions, we've seen the we talked about this last quarter that.

Speaker Change: Campaigns that orders that include decipher.

Speaker Change: Our over provide over half of the direct digital revenue.

Speaker Change: India and that trend has continued as has we said last quarter that.

Speaker Change: Orders with decipher are over 50% larger than orders without the safer and that trend will continue.

Speaker Change: It is an important feature in an overall direct advertising campaign we.

Speaker Change: We also are thrilled that being able to integrate open AI technology, we can.

Speaker Change: Utilize video and images in our targeting and our scoring for even better contextual.

Speaker Change: Performance and we expect to continue in advance that.

Speaker Change: On your question on that MGM is going out the.

Speaker Change: You saw the announcements from bet MGM, a week or two ago nice really nice momentum in the business. The things we were talking about on the product side for a while they they talked about how that has materialized into the business.

Speaker Change: And MGM and bet MGM, both very great relationship within teams both at the CEO and that your chair person level as though David and so we wouldn't expect anything to change there.

Speaker Change: Thank you.

Speaker Change: Operator next question.

Operator: Our next question today comes from Nick Jones and citizens JMP. Please go ahead.

Operator: Great. Thanks for taking the question I guess, just a couple on.

Operator: Learnings from AI.

Speaker Change: Andrew is focused on kind of improving the questioning and matching.

Speaker Change: And then 25, there is increased focus on kind of a gentle AI.

Speaker Change: As you think about the kind of A&D playbook going forward is that going to play a role in kind of improving matching and I guess the same question for care dotcom.

Speaker Change: Yeah, I'll start and our view is yes on improving matching which Jeff talked about that a little bit in his letter I think I've said for a while and we're not sure whether this happens or not but is it for a while that one of the best things that could happen to Angie Angie user interface would be if consumers adopt.

Speaker Change: Conversational UI.

Speaker Change: Obviously, they are doing that at just two <unk>.

Speaker Change: We're a significant extent with chat GPT in similar but.

Speaker Change: That's the ideal UI for us to get there.

Speaker Change: The right information from consumers about a job and of course, the better information, we get about a job the better matching we can do and then on top of that AI is better technology for or.

Speaker Change: Shorting data to allow for better matching but if we can get that conversational UI adopted broadly and consumers are comfortable with that I think that that is.

Speaker Change: Net very positive for angi and the user experience.

Speaker Change: I would just say effectively that.

Speaker Change: That becomes agenda.

Where we're effectively serving as the agent we're matching with the pro and so that's where we see this going as we leverage those tools and technology.

Speaker Change: And Nick I would just say broadly across the portfolio. We said this for a while.

Speaker Change: Where you have proprietary datasets.

Speaker Change: The application of AI optimization and analysis.

Speaker Change: You will have it will enhance things like matching on our marketplaces be at Angi care Vivian elsewhere.

Speaker Change: We are seeing those those applications and then secondly, onboarding sign ups service request generation nurse.

Speaker Change: Information it Vivian.

Speaker Change: All of these these open information entry activities as well as classic customer service functions, you can see where the puck is going.

Speaker Change: Due to the AI.

Speaker Change: Opportunities.

Speaker Change: And do you have another question.

Speaker Change: Operator last question.

Speaker Change: And our last question today comes from Tom Champion with Piper Sandler. Please go ahead.

Tom Champion: Hi, good morning, Thanks for all the candor and the comments I guess.

Tom Champion: Chris I'd love to hear a little bit more about.

Tom Champion: The verticals within DDS, and just maybe the trends that unfolded in <unk> and what youre seeing thus far.

Tom Champion: An interesting comment on.

Tom Champion: Digital AD revenue, taking place via spend commitments and maybe that portion overlaps with decipher.

<unk> opportunity to ask questions to ask a question you May Press Star then one of your telephone keypad Intuit's. All your question. Please press Star then two please note today's event is being recorded I would now like to turn the conference over to Christopher help them Executive Vice President CFO and COO of IAC. Please go ahead. Thank.

To ask a question you May Press Star then one on your telephone keypad Intuit's. All your question. Please press Star then two.

Tom Champion: And so with with the cipher seemingly growing well.

Note today's event is being recorded.

Tom Champion: Kind of curious if you have more revenue visibility.

Christopher: I'd like to turn the conference over to Christopher helping executive Vice President CFO and COO of IAC. Please go ahead. Thank.

Speaker Change: Hopefully that makes sense, maybe just a final question for Joe if I can.

Christopher: Thank you and good morning, everyone, Christopher helping here and welcome to the IAC and Angi, Inc. Fourth quarter earnings call. Joining me today are Barry Diller Senior executive Chairman of IAC, Joey Levin CEO of IAC, and chairman of <unk> and Jeff kept CEO of Angi, Inc. Supplemental to our quarterly earnings releases IAC and angi have each public shareholder letters, which are currently available on the Investor relations sections.

Thank you good morning, everyone, Christopher helping here and welcome to the IAC and Angi, Inc. Fourth quarter earnings call. Joining me today are Barry Diller Senior executive Chairman of IAC, Joey Levin CEO of IAC, and chairman of <unk>, and Jeff kept CEO of MGM supplemental to our quarterly earnings releases IAC and angi have each published shareholder letters, which are currently available on the Investor Relations section.

Speaker Change: Joanne I think you ran the search business way back when and.

Speaker Change: I'd just be curious as you have observed open AI and in search evolve what what do you think about the future of search broadly. Thank you.

Speaker Change: Because that's a big one big one then just just wanted to let slip in there Tom.

Christopher: Their respective websites, we will not be reading the shareholder letters on this call I will shortly turn the call over to Barry and then Joey to make a few introductory remarks, followed by Q&A before we get to that I'd like to remind you that during this presentation. We may make certain statements that are considered forward looking under the federal Securities laws. These forward looking statements may include statements related to our outlet strategy and future performance and are based on our current expectations and on information.

Their respective websites, we will not be reading the shareholder letters on this call I will shortly turn the call over to Barry and then Joey to make a few introductory remarks, followed by Q&A before we get to that I'd like to remind you that during this presentation. We may make certain statements that are considered forward looking under the federal Securities laws. These forward looking statements may include statements related to our outlook strategy and future performance and are based on our current expectations and on information.

Speaker Change: Earth fare, yes, why not.

Answer to that question, yes, that's fine.

Speaker Change: The point you had it and then we can go to the big concepts.

Tom Champion: So Tom you know a few things.

Speaker Change: Yeah.

Speaker Change: We described the AD market as fine right now.

Currently available to us actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties, including those contained in our most recent quarterly report on Form 10-Q are most of these are our most recent annual report on Form 10-K and in subsequent reports that we file with the SEC. The information provided on this conference call should be considered in light of such risks will also discuss.

Currently available to us actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties, including those contained in our most recent quarterly report on Form 10-Q, our most recent annual report on Form 10-K and in subsequent reports that we file with the SEC. The information provided on this conference call should be considered in light of such risks will also discuss.

Speaker Change: We definitely saw the momentum pick back up after the.

Speaker Change: After the political freeze.

Speaker Change:

People broadly or so advertisers agencies broadly I think we'd say are our more.

Short term and their commitments move quickly.

Christopher: Certain non-GAAP measures, which as a reminder include adjusted EBITDA, which we will refer to today as EBITDA for simplicity during the call I'll refer you to our earnings releases, the IAC and angi shareholder letters, our public filings with the SEC and again to the Investor relations sections of our respective websites for all comparable GAAP measures and full reconciliations for all material non-GAAP measures and now I will turn it over to our senior exec.

Certain non-GAAP measures, which as a reminder include adjusted EBITDA, which we will refer to today as EBITDA for simplicity during the call I'll refer you to our earnings releases, the IAC and angi shareholder letters, our public filings with the SEC and again to the Investor relations sections of our respective websites for all comparable GAAP measures and full reconciliations for all material non-GAAP measures and now I will turn it over to our senior.

Speaker Change: But they've got things to sell and brands to build and we're seeing that.

Speaker Change: Across categories No no major.

Speaker Change: The trends.

Speaker Change: Trends that we would note from the past, we've got clearly health home.

Speaker Change: Food and beverage.

Barry Diller: And chairman Barry Diller.

Speaker Change: Finance others.

Barry Diller: And chairman Barry Diller.

Christopher: Thank you Chris.

Barry Diller: Thank you Chris.

Christopher: It's a very senior executive, but it's nice to.

Speaker Change: We'd love to see some some momentum returned in finance over time.

Barry Diller: Executive, but it's nice to.

Christopher: Talk with you. This morning I haven't been on one of these calls and I think a little more than 10 years, hopefully will not want me to wait another 10 years before I do it again, but what I wanted to do really is to review, what's really happened to this company over the last couple of years.

Barry Diller: Talk with you this morning.

Barry Diller: This call can I think a little more than 10 years hopefully.

Speaker Change: <unk>.

Speaker Change: Health is fine.

Barry Diller: I don't want me to wait for another 10 years before I do it again, but I wanted to do really is to review what's really happened in this company over the last couple of years.

Speaker Change: And we will continue to monitor how the economy grows.

Decipher plays in the in the direct premium.

Christopher: About two years ago.

Barry Diller: About two years ago.

Christopher: We of course, we realized that our two two of our principal businesses.

Barry Diller: We of course, we realized that our tool to our principal businesses.

Speaker Change: Advanced cell area, our goal is to roll it into more through product enhancements into.

Christopher: Andrey and bought dash were troubled here's what the troubles, where we have taken to Andrey <unk>.

Barry Diller: Pantry and thought that were troubled here's what the tunnels, where we have taken to Andrey <unk>.

Speaker Change: More on.

Speaker Change: On demand.

Speaker Change: AD buying and that's something that the team is working on.

Christopher: Which.

The prior year.

Barry Diller: Which.

Barry Diller: The prior year at about $260 million of EBITDA.

About $260 million of EBITDA.

Speaker Change: And be able to serve advertisers in both places. So we are you know.

Christopher: Down to $35 million.

Barry Diller: Down to $35 million.

Christopher: Our capex shot up to $115 million.

Speaker Change: Constructive on the on the current AD market.

Barry Diller: Our capex shot up to $115 million.

Meredith: On top that Meredith.

Barry Diller: On top that Meredith.

Speaker Change: But cautious as always given the geopolitical volatility and everything that has been a hallmark of the last few years.

Meredith: The initial plant after the acquisition was we thought we would do $450 million.

Barry Diller: The the initial plant after the acquisition was we thought we would do $450 million.

Meredith: And EBITDA.

Barry Diller: EBITDA.

Speaker Change: Yeah, So I'll answer a little bit anecdotally and in and then maybe broader but.

Meredith: Actually the plot for that particular year.

Barry Diller: Actually the plot for that particular year.

Meredith: And a half years ago three years ago went from 335 times at June 30.

Barry Diller: And a half years ago three years ago.

Barry Diller: It went from 335 down to 230.

Speaker Change: As I.

Meredith: So.

Meredith: I felt about it Joey Levin at R. R.

So I.

Barry Diller: Is it Joey live in our.

Speaker Change: Churches, now and as many people I know started searches now and increasing share is certainly going to.

Meredith: Our colleagues that we weren't really in a crisis and we had to fix these two principal businesses.

Barry Diller: Colleagues that were really in a crisis and we had to fix these two principal businesses. So we essentially stopped everything we did not want to do things that either Oh.

Meredith: Essentially stopped everything we did not want to do things that are either either extended the amount of work we had to do into other areas that weren't as important.

Speaker Change: The AI platforms, and that's because it's a good efficient experience and.

Barry Diller: I either extended the amount of work we had to do it to other areas that weren't as important.

Meredith: We.

Speaker Change: I expect that experience to continue to gain share.

Meredith: Knew that we had to hit the ground I don't really spend and we bought the time it would take certainly a year, maybe two to get these businesses back to performing.

Barry Diller: We knew.

Barry Diller: Knew that we had to hit the ground I don't really spend than we thought at the time it would take certainly a year maybe to get these businesses back to performing.

Speaker Change: It's a meaningful evolution from the 10 blue links and we've been looking for that meaningful evolution did attend bluelinx for a long time and I think that is.

Meredith: And so we froze everything basically other fans attending.

Barry Diller: So we froze everything basically other fans attending.

Meredith: Those two businesses and getting them back on track with where we're.

Speaker Change: Profound advancement I think that one of the keys in that is those user interfaces whether there.

Barry Diller: Those two businesses and getting them back on track with it were where they needed to be.

They need to be at.

Meredith: Andrey.

Barry Diller: Andrey.

Meredith: Of course, you all know, but I really want to put this in context, because I do think it is it is at least from my point of view it clarifies what the company has been doing at.

Speaker Change: Of course, you all know, but I really want to put this in context, because I do think it is a it is at least from my point of view.

Speaker Change: Voice or or sort of.

Speaker Change: AI conversation I think that we're used to.

Barry Diller: Clarifies what the company has been doing anything.

Meredith: In these last couple of years.

Speaker Change: At space for fewer answers and.

Speaker Change: In these last couple of years.

Meredith: And where we are now and where I think we will be in the future.

Speaker Change: And where we are now and where I think we will be in the future.

Speaker Change: That means that wasn't going to be important there and we think about that in the context of of IAC in DM and in the context of care and in the context of Angi is you got to be the best in the category with the best content and for those I think you're in a very good position.

Meredith: First thing we did is it looks like the CEO of Angi with Joe We live in.

Speaker Change: First thing we did as we replaced the CEO of Angi when shall we live in.

Meredith: Who was kind of also obviously at that time. He was the CEO of IC, but we said, okay. We will take all the other areas. So you can concentrate on fixing Angie we immediately got rid of the low quality at a low margin revenue, which reduced our revenue, but can we stop the capital expenditures.

Speaker Change: Who was kind of also obviously if that thought he was the CEO of IC, but we said, okay. We will take all the other areas of IC you concentrate on fixing Angie we.

Speaker Change: Immediately got rid of the low quality at a low margin revenue, which reduced our revenue, but we stopped the capital expenditures.

Speaker Change: And if you're you're further into the Teo I think that's a.

Speaker Change: A much harder position and.

Meredith: Anything near that level I think we went from 115, if I recall correctly I said correctly earlier to about 50, and what happened is that of course, the profit and the cash flow.

Speaker Change: At anything near that level I think we went from 115, if I recall correctly or separately earlier to about 50, and what happened is that of course, the profit and the cash flow went back onto a positive track. We also appointed drift yep that'd be the CEO. He had been running the international business is really well and and at the essence Andrea.

Speaker Change: And so I think that these models are this all ends and those user interfaces continue to take share for awhile, and then sort of concentrate audience around the <unk>.

Meredith: Back onto a positive track.

Meredith: We also appointed Jeff dip to be the CEO. He had been running the international business is really well.

Speaker Change: Very bad in the in a more meaningful way.

Meredith: And at the essence and like all of these entities are there product companies and we have to fix the product all of that work has been in train for these last couple of years.

Speaker Change: Thank you. Thank you Tom Thank you operator and everyone.

Speaker Change: All of these entities, they're they're they're they're private companies and we have to fix the product.

Speaker Change: Thank you all for four.

Speaker Change: Decade or more of these and good.

Speaker Change: All of that work has been in train for these last couple of years and answering now is back as you can see from the figures. It is back from where it was a lot of the things that happened to entry where you know some of them were self inflicted some of the more grandiose landscape. If you get into the services business ourselves etcetera, which well good ideas, we're not executing well at all and so Joey.

Speaker Change: Good luck from here. Thank you. Thank you.

Meredith: And answering now is back as you can see from the figures. It is back from where it was a lot of the things that happened to entry where you know some of them were self inflicted some of the more grandiose plans are to do get into the services business ourselves etcetera, which well good ideas.

Speaker Change: And in honor.

Speaker Change: Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Meredith: We're not executing well at all and so Joey and now Jeff went in and took the thing down to I think kind of gets clubs and have built it back up where it can outperform and then hopefully next year, you'll see real revenue growth. So that's the Ark advancing on.

Speaker Change: Now Jeff went in and took the thing down to I think kind of studs and have built it back up where can outperform and then hopefully next year, you'll see real revenue growth. So that's the Ark advancing.

Meredith: I thought that Meredith Oh, we reverse the traffic declines they are up I think traffic's up about 8% with.

Speaker Change: On top of that Meredith Oh, we've reversed the traffic declines they were up I think traffic's up about 8%.

Speaker Change: The integration is slowing though could you talk about integration.

Speaker Change: The integration is falling out could you talk about integration.

Speaker Change: And the synergies and all of that they can talk a good game, but when you get right down to it if it's a tough slog and it was a very difficult year and a half is and as potash.

Speaker Change: The synergies and all of that they can talk a good game, but when you get right down to it if it's a tough slog and it was a very difficult year and a half is and as potash.

Speaker Change: I think that's it.

Speaker Change: I think that's it.

Speaker Change: Great makes us get this whole thing and trained.

Speaker Change: Great makes us get this whole thing and trained.

Speaker Change: That's a pretty exciting done so well.

Speaker Change: Definitely we got into them so well it was just the.

It kind of spike.

Speaker Change: Thought we had a a game plan for how full.

Speaker Change: Got it.

Speaker Change: She was we thought we had a a game plan for <unk>.

Speaker Change: Oh properties surface properties be able to gain advertising, rather greater value than anyone else and and she's done I'll just give you. This.

Speaker Change: Properties surface properties be able to gain advertising at a greater value than anyone else.

Speaker Change: And and she's done I'll, just give you just one or two stops very well so.

Speaker Change: One or two stops very well so.

Speaker Change: She was my one thing on stocks, which is.

Speaker Change: This is my one thing on stocks, which is.

Speaker Change: Digital revenue growth.

Speaker Change: The digital revenue growth.

Speaker Change: Very stark.

Speaker Change: It's very stark.

Speaker Change: It was Q2 of 'twenty two.

It was in Q2 of 'twenty two.

Speaker Change: I'm just gonna read two consecutive six seven quarters down seven down 13%.

Speaker Change: I'm, just gonna reach a consecutive six seven quarters down seven down 13%.

Speaker Change: Around 50%.

About 50%.

Whereas in getting them back on track with it.

They needed to be.

At Angi <unk>.

Some of this of course, you all know, but I I I I really want to put this in context because.

Okay.

Speaker Change: Barry I think we yes.

All right.

Speaker Change: I think we.

Operator, it looks like obviously, though where we have lost your audio Sir.

Speaker Change: Yes.

That's what you all know.

I do think it is a it is it is at least.

Speaker Change: Looks like obviously, though where we have lost your audio Sir.

Speaker Change: Okay, Barry can you hear.

Yeah.

Speaker Change: Okay very good.

Speaker Change: Yeah.

From my point of view.

Thank.

Speaker Change: Alright, well hopefully we will get the audio back there in the <unk>.

Got it.

It clarifies what the company has been doing.

All right well hopefully we will get the audio back there and the good news on that is various remarks, where we're very consistent with some of the things that I was gonna Facebook, where I can pick up pick up where he left off.

Is it.

What did you do it in a way.

In these last couple of years.

Speaker Change: News on that is various remarks, where were very consistent with some of the things that I was gonna say hopefully I can pick up.

Company has been through our App.

And where we are now.

And these laughing now.

And where I think we will be in the future.

Speaker Change: Pick up where he left off.

And we are.

Speaker Change: First of all.

We are now.

Speaker Change: First of all.

First thing we did is we replaced the CEO of Angi with Joey live in.

Speaker Change: Thank you to Barry Thank you to Chris Thank you to Jeff and everybody for being on this call I looked in my first one of these calls within Q4 of 2000 Thirteen's Ive been doing these calls for 12 years and they said I think he is one of these calls, but only actually one of those would ever with B D. So this is a free for all of US if we can get him back on the line are in the thinking that connection.

And where I think it is.

Speaker Change: Barry. Thank you would address that thank you to Jeff and everybody for being on this call I looked in my first one of these calls was in Q4 of 2000 Thirteen's Ive been doing these calls for 12 years and this is I think he is one of these calls, but only actually one of those would ever with B D. So this is a industry for all of US if we can get him back on the line are in the making that connection.

Oh really.

Sure.

Who was.

It looks like the C band.

Kind of also obviously at that time he was the CEO of IC, but we said, okay. We will take all the other areas of IC you concentrate on fixing.

Joey.

No.

I believe we're kind of a lot.

See you all.

Goodbye.

Uh huh.

Speaker Change: Plenty of ups and downs and took us through businesses come and go since then but it's nice to have the operations really on the upswing right. Now we finished the year 'twenty 'twenty four very strong we had a nearly 250 million increase in cash flow year on year to almost 300 million of cash flow, that's rising businesses and the real.

Angie.

Other areas.

Speaker Change: Plenty of ups and downs.

We are immediately got rid of at the low quality and a low margin revenue.

And trade on fixed.

Speaker Change: Gary took us through businesses come and go since then but it's nice to have the operations really on the upswing right. Now we finished the year 2024, very strong we had a nearly 250 million increase in cash flow year on year to almost 300 million of cash flow matter for IC businesses.

Not really.

Got rid of.

Which reduced our revenue, but and we stopped the capital expenditures are at anything near that level. I think we went from 115, if I recall correctly I said correctly earlier to about 50.

Oh My God.

It was due.

Okay.

Speaker Change: Real momentum right now behind the businesses, especially <unk> and Andy that actually outgrowing the market and Angie is Andy is almost there are you know we're looking at growth next year as we discussed and the good news is we've had enough progress in the business in terms of just.

Speaker Change: There's real momentum right now behind the businesses, especially not that and Andy that has that grown.

Sure.

I heard that right.

Speaker Change: On the market and Angie is Andy is almost there are you know we're looking at that growth next year as we've discussed and the good news is we've had enough progress in the business in terms of just delivering a customer experience. The only unit economics addressing the opex and Capex I think we've had enough to work with and Angie that we were really able to rip off this last quarter were disappointing quarters argue wanted to really be able to report that last.

If you allow me to first of all correctly.

And what happened is that of course, the profit and the cash flow.

Earlier and two of them.

Is that Oh.

Speaker Change: Delivering a customer experience on the unit economics are addressing the cost in Opex and Capex I think we've had enough to work with Angie that we were really able to rip off. This last quarter. We were they were disappointing quarters argued wanted to really enable to about that last mandate and and get the product experience Oh lead to where we want it to be and that means we can start building again and Ah, that's what Jeff and I are.

Yeah.

What happened is that right.

Get back onto a positive track.

Our cash flow.

We also appointed Jeff Kip to be the C. E O. He had been running the international business is really well.

Oh boy.

Okay rock to feed it.

Got it.

Yes.

Speaker Change: Mandates and and get the product experience lead to where we want it to be and that means we can start building again and.

And and at the essence and like all these entities there.

He has been an international.

It really was.

And at that time on their.

Speaker Change: That's what Jeff and I are and the entire team and Andy aren't terribly excited to do in Central Florida, which is an hour back on offense and that's true for both IAC and Angi and I think at the very end prison everybody at ice you are incredibly excited about that and Jeff Knight, Andy as well our entity. It Andy is why I'm incredibly excited to be back on offense and Uh huh.

Their product companies and we had to fix the product.

Yeah.

Speaker Change: Andrea.

Speaker Change: Right.

Oh, and I picked it up from there.

Speaker Change: And as that portfolio now we're back on offense and that's true for both IC and Angie and I think a very in prison everybody at ICU are incredibly excited about that and definitely Andy as well are so entity it Andrew as well incredibly excited to be back on offense and Oh, that's a great place to be so.

All of that work has has been in train for these last couple of years.

They're they're all of that work hasn't got pads profit in Ukraine.

The Warriors house and been in place now.

And and she now is back as you can see from the figures. It is back from where it was a lot of the things that happened to energy where you know.

Yeah.

Yeah.

And it is.

His work.

A lot of them.

Speaker Change: Great place to be so.

Where we're not.

Speaker Change: Unless we connected Barry inland second yourself, let's go to questions.

Some of them were self inflicted some of them work grandiose plans there to do get into the services business ourselves etcetera, which while good ideas, we're not executing well at all and so Joey and now Jeff.

Speaker Change: Unless we connected Barry Engle next secondary so let's go to questions.

And a lot of them.

And you know where I am.

Speaker Change: Yes.

Speaker Change: Yes sure.

Sorry, I just thought that this would go.

Just a little more granularly.

Speaker Change: Her background Yep, Okay, let's go to the question queue, operator, and take the first question absolutely.

Speaker Change: I'm, sorry, I forgot that Mr Bill or back on yet Okay. Let's go to the question queue, operator and take the first question.

Yeah.

So.

Speaker Change: Absolutely and as a brief reminder to ask a question. Please press Star then one on your telephone keypad. Our first question today comes from Cory Carpenter with Jpmorgan. Please go ahead.

Speaker Change: As a brief reminder to ask a question. Please press Star then one of your telephone keypad. Our first question today comes from Cory Carpenter with Jpmorgan. Please go ahead.

Well if you go to.

The idea is.

And we're now executing well at all.

Went in and.

Cory Carpenter: Good morning, I have one for Julian.

And now the thing.

Took the thing down to I think kind of at stubs and have built it back up where it can now perform and then hopefully.

Speaker Change: I had one for.

Speaker Change: So Lisa you talked about your motivation from BTG mix than maybe for Jeff, What's giving you confidence in terms of improving through the year just like the ones you guys coming in below your prior expectations either for Chris can you just talk to the next investments in process.

Speaker Change: Julian.

And.

Speaker Change: Amortization.

Took the thing that happens.

I mean for just what's giving you confidence in terms of bringing good year.

Now.

Speaker Change: Coming in below your prior expectation.

I'd have to Hilton.

Next year, you'll see real revenue growth so.

And now.

Speaker Change: Could you talk to the nurse Anesthetists and process.

It really all wrapped up.

Cory Carpenter: Any cash for me thank you.

Oxford.

That's the arc of ANZ.

Speaker Change: Thank you.

Cory Carpenter: Sure I'll start thanks, Corey I think.

Okay.

Corey: Thanks Corey.

I thought that Meredith.

So.

Cory Carpenter: To answer your question is of course, a personal and professional element in a lateral I think those things are on the personal side I think there comes a point, where you start to optimize the freedom and that time from me I, just I didn't know and I'm incredibly excited about it and on the professional side, Andy just Doe has asymmetrical upside I believe and I know how hard it's been ignored it isn't it that business, but as I tried to say before the good news is I think we've done most of the art stuff we've pulled.

Speaker Change: To answer your question is both.

Goodbye.

Speaker Change: Of course, the personal and professional element in <unk> and.

Oh Gosh Meredith.

We reversed the traffic declines they are up I think traffic's up about 8% or would they the integration as you all know when people talk about integration.

Speaker Change: A lot overlap with those of you on the personal side.

Speaker Change: Like we start to optimize the freedom and that came from yes, I didnt own them.

Travel decline thereafter.

Try not to draw down in Florida.

Speaker Change: Thinking about it and on the professional side, Andy just still has asymmetrical upside I believe and I know how hard it's been at.

Okay.

And just go with it.

And the synergies and all of that they can talk a good game, but when you get right down to it it's it's a tough slog.

Well no.

Speaker Change: It's been a business, but it is fair to say before the good news is I think we've done most of the art stuff, we pulled out most of the challenging things.

And then.

Cory Carpenter: Most of the challenging things and we know it believe me Nobody said in front of all of you and owns the biggest states in there about some sizable chunks of revenue, but that it really especially with the changes you have talked about in the letter on January 13th is now behind Us and.

Okay.

Okay.

And it was a very difficult year, and a half is and as tough dash.

Speaker Change: Believe me nobody to sit in front of all of you and also the mistakes and rip out some sizeable chunk of revenue, but that it really especially with the things you have talked about in the letter on February 13th.

Do you get right down to it.

Yeah.

Yeah.

As you can talk to us.

I have invested in it.

Okay.

Speaker Change: Find us and.

Cory Carpenter: That means we have the I think the paint in the rearview mirror and now we finally just focused on building again in that building process with a product that makes us proud is a fun thing to do and I'm really excited to do it.

Speaker Change: That means we have the I think the pain in the rearview mirror and now we finally got to focus on building again in that building process with a product that makes us proud is a fun thing to do and I'm really excited to do it.

Great makes us get this whole thing and trained on.

I think that's right.

Great.

Right right.

Does it really fit in the dumps are lower which is the thing that got us to buy.

This whole thing and trained.

Got it.

Speaker Change: Thanks, Larry I'll, just take the spin process questions. We filed the registration statement on January 27th once it is declared effective we will continue to finalize separation agreements between the companies will also make additional filings with the SEC as necessary.

No that's it really.

Speaker Change: Yeah, I'll just take the spin process questions. We filed the registration statement on January 27th and once it is declared effective we will continue to finalized separation agreements between the companies will also make additional filings with the SEC as necessary.

It was we thought we had.

Okay.

Our game plan for <unk>.

But we had planned for.

Oh properties surface properties.

Gameplay in Baltimore.

Uh huh.

Are you able to gain advertising grab a greater value than anyone else.

These properties.

Speaker Change: Very focused on closing right now on March 31, but we continue to work through customary legal and tax considerations along with certain operational details at the end of the day. The goal is a seamless and successful transition to Orient you to being a standalone public company and as we said Ron process were 331 regarding <unk> balance sheet. The current plan is not to make any dividends. So we would spend angie with its current cash balance of 460 million.

Speaker Change: We are very focused on closing right now on March 31, but we continue to work through customary legal and tax considerations along with certain operational details at the end of the day. The goal is a seamless and successful transition to Orient you to being a standalone public company and as we said Ron process for 331 regarding Energy's balance sheet. The current plan is not to make any dividends. So we would spin Angie with its current cash balance of $460 million.

Yeah.

Advertising.

And and she's done I'll, just give you just one I don't do stops very well so.

Hey, Dan.

I was keeping him and what he has done really well.

So this is my one thing on stops which is.

Just.

One I don't want to go back.

Well so.

Our digital revenue growth.

One of them.

Which is.

We haven't found as very stark.

Speaker Change: And $500 million of attractively priced bonds with that I'll pass to John Thanks, Chris So Cory I'll take your question on Q1, and the 'twenty 'twenty five outlook and I'll, probably throw in 'twenty three six a little as well our Q1 outlook is a little below what we estimated three months ago at the time, we assume that the first quarter would be a world framed by the FCC order and we got ready we fully implemented consumer choice consistent with.

Oh, sorry.

Cool.

Speaker Change: And $500 million of attractively priced bonds with that I'll pass to Jeff. Thanks, Chris So Cory I'll take your question on Q1, and the 25 outlook and I'll, probably throw in places such as little as well our Q1 outlook is a little below what we estimated about three months ago at the time, we assume that the first quarter would be a world framed by the FCC order and we got ready we fully implemented consumer choice consistent with <unk>.

This is Q2 of 'twenty two.

It's been a couple years too.

I'm just gonna read your consecutive six seven quarters down seven down 13%.

This is Josh.

It's a great set up for a better range.

Yes.

Six seven quarters seven 9%.

About 15% down.

Got it.

50.

Yeah.

Speaker Change: CC order on January 13th at a couple of weeks ahead of the orders effective date.

Speaker Change: <unk> order on January 13th at a couple of weeks ahead of the orders effective date.

Speaker Change: Not just because of the order, but also because we know and we know it is clearly the best thing for our customers in the business long term, we've been steadily moving towards the implementation of the FCC order really only accelerated our path.

Speaker Change: Not just because of the order, but also because we know and we've known is clearly the best thing for our customers in the business long term, we've been steadily moving towards the implementation of the FCC order really only accelerated about.

[noise] Barry I think.

Barry I think we.

Operator, it looks like Mr. Builder, we have lost your audio Sir.

Speaker Change: As we noted in the letter the experience the improved experience, it's been evidenced for awhile homeowner NPS is double digits better when they choose <unk> when they're automatic and frozen win believe 60% more often when they are chosen and with our unmatched.

Okay.

Okay.

Speaker Change: As we noted in the letter the experience the improved experience has been evidenced for awhile homeowner mps's double digit better when they choose the probe and when there are automatic and frozen win believe 60% more often when they are chosen and with our unmatched.

Okay.

Yeah.

Sure.

Okay.

Yeah.

Alright, well hopefully we will get.

Oh.

The audio back there and the.

Yeah.

Speaker Change: So we look at that data. We said this is clearly the right thing since we made the change we've gotten very positive feedback from our customers.

Yeah.

Speaker Change: So we looked at that data. We said this is clearly the right thing since we made the change we've gotten very positive feedback from our customers.

Good news on that is various remarks, where we're very consistent with some of the things that I was going to say, so hopefully I can pick up.

Audio gap there.

No.

Yes.

The good news on that.

Speaker Change: The dynamics in the marketplace and the improvement in market experience and has only confirmed all of his prior analysis and our conviction of the change.

Speaker Change: The dynamics of the marketplace any improvement in market experience and has only confirmed all of his prior analysis and our conviction of the change.

Okay.

Okay.

Pick up where he left off.

Okay.

Speaker Change: On January 24th.

Yes.

Speaker Change: On January 24th at the lab.

Uh huh.

Speaker Change: <unk> at the court vacated the SEC rule change and.

First of all thank.

Speaker Change: <unk> at the court vacated the SEC rule change and.

Yes.

Thank you to Barry Thank you Chris.

Speaker Change: We however, still going ahead, we're sticking with the change we're making our competition is not this is creating some short term disruption in the market and the impact on our first quarter, but long term, we consider ourselves very well competitively positioned in the marketplace with a significantly better customer experience.

Thank you.

Speaker Change: We however, still going ahead, we're sticking with the change we're making our competition is not this is creating some short term disruption in the market and the impact on our first quarter, but long term, we consider ourselves very well competitively positioned in the marketplace with a significantly better customer experience.

Thank you to Jeff and everybody for being on this call I looked in my first one of these calls was in Q4 of 2013. So I've been doing these calls for 12 years and this is I think nearly my 50th one of these calls, but only actually one of those was ever with BD. So this is a this is a treat for all of US if we can get him back on the line are in the.

Uh huh.

Yes.

Thank you everybody for hanging on that.

Right right.

The first one.

Okay.

Hum.

Speaker Change: So going forward, we're obviously real time adjusting to the changes in the marketplace, given the regulatory shifts, but theres a number of factors that give us high confidence or build through 2035 and back to growth in 2036 for the first quarter is our toughest comp of the year. We're sunsetting a few hundred basis points of non choice revenue in our proprietary channels that we got rid of at the end of the first quarter last year, and we don't have to compare that to the rest of 'twenty five.

Okay.

Speaker Change: So going forward, we're obviously real time adjusting to the changes in the marketplace, given the regulatory shifts, but theres a number of factors that give us high confidence or build through 2035 and back to growth in 2036 for the first quarter is our toughest comp of the year. We're sunsetting a few hundred basis points of non choice revenue in our proprietary channels that we got rid of at the end of the first quarter last year and were up compared to that for the rest of 25.

Okay.

Actually.

Yeah.

Thinking that connection.

For all of it.

We have plenty of ups and downs and as Barry took us through and businesses come and goes since then but but it's nice to have the operations really on the upswing right. Now we finished the year 2024, very strong we had a nearly $250 million increase in cash flow year on year to almost $300 million of cash flow.

Uh huh.

Okay.

Yes.

Yes.

Okay.

Yes.

Yeah.

Speaker Change: Secondly, we have a number of product builds impacting marketing efficiency matching and monetization that we have clear data behind it will add revenue and profit as we build through the year.

Right.

Speaker Change: Secondly, we have a number of product builds impacting marketing efficiency matching and monetization that we have clear data behind it will add revenue and profit as we build through the year.

Operator.

Yes.

Please go.

Yeah.

Speaker Change: Thirdly, our single pro product initiatives referenced in the letter on the last call is going to lead to growth in revenue per monetized transaction by the second half of the year as we sunset our legacy ads pricing structures.

For IC businesses.

Okay.

Thirdly, our single pro product initiatives referenced in the letter on the last call is going to lead to growth in revenue per monetized transaction by the second half of the year as we sunset our legacy ads pricing structures.

Okay.

And the there's just real momentum right now behind the businesses, especially dot dash and Andy that they actually outgrowing the market and Angie is and he's almost there are you know we're looking at growth next year as we've discussed in and the good news is we've had enough progress in the business in terms of just.

Okay.

Okay.

And real metrics.

Speaker Change: We expect to steadily return to growth in our proprietary ESR channels. This year before growing in place like RCM unbranded as ours are growing today as your dot com <unk> was only down single digits today, and its 90% of our branded organic traffic and so we expect to continue building through the year and reach growth in 2000, <unk> <unk> on the flip side, our third party <unk> is going to take a significant step down in <unk> five but because we are doing at the beginning of the year we expect.

Speaker Change: Fortunately, we expect to steadily return to growth in our proprietary ESR channels. This year before growing in 'twenty six RCM unbranded as ours are growing today, Andrew Dot Com <unk> was only down single digits today, and its 90% of our branded organic traffic and so we expect to continue building through the year and reach growth in 2006 on the flip side. Our third party <unk> is going to take a significant step down in <unk> five but because we are doing at the beginning of the year.

And especially done.

Okay.

AMC.

Yes.

Yeah.

Great.

Yeah.

Uh huh.

As we progress in the business.

Delivering the customer experience nailing the unit economics are addressing the Pos in Opex and Capex I think we've had enough to work with Angie that we were really able to rip off this last quarter. We were at this current quarter. Sorry, Q1, we were really able to rip off that last band aid and and get the product experience.

Okay.

Yeah.

Speaker Change: It to be flat in 2000 <unk>. The two together give you growth finally, we expect increased AUM and pro retention because of the impact of homeowners choice on the experience on both sides of the marketplace. So net.

It could be that kind of thing.

Speaker Change: Expect it to be flat in 2000 <unk>. The two together give you growth finally.

Okay.

So we essentially stopped everything we did not want.

Speaker Change: We expect increased homeowner repeat and pro retention because of the impact of homeowners choice on the experience on both sides of the marketplace. So net.

Okay.

Yeah.

to do things that either

Okay.

Speaker Change: Q1 is going be down a little versus what we said a few months ago and down in the low 20% year over year, but we've got even more confidence in revenue improvement across the year and a return to growth in 'twenty 'twenty six and very much I have confidence in our competitive position, we're able to take in the quality of the customer experience going to able to deliver over the long term. So we think that there is going to deliver value of our customers value to our shareholders and our strong next couple of years. Thank.

Speaker Change: I very much appreciate your work and I look forward to working with you next week.

Yeah.

Speaker Change: Q1 is going be down a little versus what we said a few months ago of down in the low 20% year over year, but we've got even more confidence in revenue improvement across the year and a return to growth in 0.6 and very much confidence in our competitive position, we're able to take in the quality of the customer experience going to able to deliver over the long term. So we think that this is going to deliver value of our customers value to our shareholders and our strong next couple of years. Thank.

Okay.

Fully to where we want it to be and that means we can start building again and Ah that's what Jeff and I are are in and the entire team and Andy are incredibly excited to do.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: As I said for a quarter or two and now we're back on offense and I think that's true for both IAC and Angi, and I think Barry and Chris and everybody at ICR incredibly excited about that and Jeff and I and Andy as well are seem to be at Andy as well incredibly excited to be back on offense and.

Speaker Change: Hi.

Speaker Change: Yes.

Jeff: Thank you Jeff.

Speaker Change: Next question.

Speaker Change: Yeah.

Jamie: Thank you Jamie operator next question.

John Blackledge: Absolutely. Our next question today comes from John Blackledge Cowen. Please go ahead, great. Thanks, and good luck with the move to questions for Chris first could you talk about drivers of <unk> revenue and EBITDA and maybe walk through the 125 in fiscal 'twenty five puts and takes for <unk> revenue and EBITDA Guide and then second question would be given <unk> strong balance sheet and the ramping free cash flow.

Speaker Change: Absolutely. Our next question today comes from John Blackledge Cowen. Please go ahead, great. Thanks, and good luck with the move to questions for Chris first could you talk about drivers of <unk> revenue and EBITDA and maybe walk through the 145 in fiscal 'twenty five puts and takes for <unk> revenue and EBITDA Guide and then second question would be you know kind of get in IAC strong balance sheet and the ramping free cash flow.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Great.

And everybody.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Hum.

Speaker Change: That's a that's a great place to be so.

Speaker Change: Excellent.

Speaker Change: Uh huh.

Speaker Change: Unless.

Speaker Change: That's a good place.

Speaker Change: We connect the Berry and <unk> secondary so let's go to questions.

John Blackledge: How do we think about capital allocation and then with the upcoming Andrew standing joined Gilead moving over to Angie as executive Chairman and how should we think about you know kind of the management transition at IC. Thank you yeah. Thank you John So starting with <unk> on our last earnings call, we talked about a sluggish both consumer traffic and advertiser spend we're headed up to and through the U S. Election, we were cautiously optimistic at the time, both would ramp back up after the.

Speaker Change: To be.

Speaker Change: Yes.

Speaker Change: How do we think about capital allocation and then with the upcoming Andrew standing joined Joe moving over to Angie as executive Chairman and how should we think about you know kind of the management transition at ICR. Thank you yeah. Thank you John So starting with <unk> on our last earnings call, we talked about a sluggish both consumer traffic and advertiser spend we're headed up to and through the U S. Election, we were cautiously optimistic at the time, both would ramp back up after the.

Speaker Change: Thank you.

Speaker Change: We connected Barry.

Speaker Change: Yes, Sir.

Speaker Change: Let's go to questions.

Speaker Change: I do know that Mr Biller back on yet.

Speaker Change: Sure.

Speaker Change: Okay, Let's go to the question queue, operator, and take the first question.

Speaker Change: Okay Alright.

Speaker Change: All right.

Speaker Change: Let's go to the.

Speaker Change: Absolutely and as a brief reminder to ask a question. Please press Star then one on your telephone keypad. Our first question today comes from Cory Carpenter with Jpmorgan. Please go ahead.

Speaker Change: Yeah.

Speaker Change: Absolutely not.

John Blackledge: Political landscape with sorted and we saw that November traffic was excellent for us most notably on our food sites as new logo likes to say Thanksgiving and the Super Bowl for Allrecipes traffic in December was lower mainly due to a lack of celebrity entertainment news that people in some less robust holiday momentum in the home category on the advertising front, we saw many advertisers come back into the premium and programmatic markets in mid November net result of all of that for the <unk>.

Speaker Change: Political landscape with sorted and we saw that November traffic was excellent for us most notably on our food sites as Neil Vogel likes to say Thanksgiving into the Super Bowl for all recipes traffic in December was lower mainly due to a lack of celebrity entertainment user people and some lesser robust holiday momentum in the home category on the advertising front, we saw many advertisers come back into the premium and programmatic markets in mid November net result of all of that for the third.

Speaker Change: Sure.

Speaker Change: First question today comes from.

Julia: Thanks, Good morning, I had one for each of you I think on LNG Julia start with you could you talk about your motivations for movie.

Speaker Change: Great.

Speaker Change: Understood.

Speaker Change: With the spin maybe for Jeff, what's giving you confidence in terms of improving through the year. Despite the <unk> guide coming in below your primary expectations and if a Chris could you just talk to the next steps in the spin process.

Speaker Change: Could you talk about utilization.

Speaker Change: She spent.

Speaker Change: Yeah.

John Blackledge: Quarter, we posted 3% core sessions growth and 3% digital advertising growth real bright spot in the quarter with performance marketing, which grew 22% led by exceptional ecommerce performance. It was great to see this area grow strongly after a couple of sluggish quarters and it highlights <unk> industry, leading ability to convert consumer interest into sales for our retail partners and then finally licensing continued its strong growth led by our <unk> and Apple news partnerships today.

Speaker Change: It's Mike.

Speaker Change: Quarter, we posted 3% core <unk> growth of 3% digital advertising growth real bright spot in the quarter with performance marketing, which grew 22% led by exceptional ecommerce performance. It was great to see this area grow strongly after a couple of sluggish quarters and it highlights <unk> industry, leading ability to convert consumer interest into sales for our retail partners and then finally licensing continued its strong growth led by our <unk> and Apple news partnerships today.

Speaker Change: Yeah.

Speaker Change: He is planning to take any cash from Angie. Thank you.

Speaker Change: Chris could you just talk to that.

Speaker Change: It's been the ICC.

Corey: Sure I'll start thanks Corey.

Speaker Change: Yes.

Speaker Change: Alright.

Speaker Change: To answer your question Theres, both are of course, a personal and professional element and a lot of overlap with those things, but on the personal side that I think there comes a point in life, where you start to optimize for freedom and at that time for me I decided it now and I'm I'm incredibly excited about it and on the professional side, Andrew just still has asymmetrical.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: Okay.

Speaker Change: Okay.

John Blackledge: These three revenue lines blended at 10 percentage or revenue growth above the range. We were forecasting looking at 'twenty 'twenty five we view all three digital revenue growth areas as healthy and strongly positioned in.

Speaker Change: Okay.

Speaker Change: These three revenue lines blended at 10 percentage of revenue growth above the range. We were forecasting looking at 2025, we do all three digital revenue growth areas as healthy and strongly positioned in <unk>.

Speaker Change: Alright.

Speaker Change: Okay.

Speaker Change: Hey, guys.

Speaker Change: Okay.

John Blackledge: In aggregate, we're expecting 10% plus digital revenue growth for the year with high single digit growth in Q1, a few factors contribute to slightly lower first quarter growth in those high single digits. It's more challenging January and February comps Easter, which is a key holiday for a shifts this year into Q2 from Q1 last year and there is one less day due to leap year, the second quarter conventionally setup stronger with easier comps in the Easter benefit on the digital advertising.

Speaker Change: Okay.

Speaker Change: Aggregate, we're expecting 10% plus digital revenue growth for the year with high single digit growth in Q1, a few factors contribute to slightly lower first quarter growth in those high single digits. It's more challenging January and February comps Easter, which is a key holiday for a shifts this year into Q2 from Q1 last year and there is one less day due to leap year and second quarter conventionally setup stronger with easier comps in the Easter benefit on the digital advertising front.

Speaker Change: Upside I believe and I know how hard it's been <unk>.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: It is in this business, but.

Speaker Change: Okay.

Speaker Change: As I started to say before the good news is I think we've done most of the hard stuff. We've pulled out most of the challenging things and we know it's believe me no fun to sit in front of all of you in and own some big mistakes and rip out some sizeable chunks of revenue but.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Thank you.

Speaker Change: Good morning.

Speaker Change: Yeah.

Speaker Change: No.

Speaker Change: Okay.

John Blackledge: Front, we're expecting mid single digit traffic growth for the year.

Yeah.

Speaker Change: We're expecting mid single digit traffic growth for the year and mid single digit monetization growth will also generate incremental revenue from the launch of decipher plus where we will be seeing third party, we'd be selling third party inventory using our proprietary targeting technology, we're testing with select advertisers this quarter and we'll scale it up throughout the year and informs marketing and license fees for both gross holiday for the year EDM continues to manage its cost structure and thoughtfully as shown.

Speaker Change: Yeah.

John Blackledge: Mid single digit monetization growth will also generate incremental revenue from the launch of the site for plus where we will be seeing third party, we'd be selling third party inventory using our proprietary targeting technology, we're testing with select advertisers this quarter and we'll scale it up throughout the year and informs marketing and license easier both gross holiday for the year <unk> continues to manage its cost structure and thoughtfully as shown by the severance in the fourth quarter due to head count reductions to reallocate.

Speaker Change: Okay.

Speaker Change: That is really especially with the changes you have talked about in the letter on January 13th is now behind us and.

Speaker Change: Okay.

Speaker Change:

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: That means we have the I think the pains in the rearview mirror and now we finally get to focus on building again and that.

Speaker Change: That is right.

Speaker Change: Okay.

Speaker Change: The rearview mirror.

Speaker Change: That building process with a product that makes us proud is a fun thing to do and I'm really excited to do it.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: The severance in the fourth quarter due to head count reductions to reallocate resources for the year, we're forecasting 40% plus digital incremental EBITDA margins, which combined with 10% digital revenue growth and a 10% revenue declines in our print segment led to our guide of $3 30 to $3 50 of total EBITDA 3 million total EBITDA when accounting note as noted in the release, we will have a significant gain.

Speaker Change:

John Blackledge: Resources for the year, we're forecasting 40% plus digital incremental EBITDA margins, which combined with 10% digital revenue growth and 10% revenue declines in our print segment led to our guide of $3 30 to $3 50 of total EBITDA 3 million total EBITDA when accounting note as noted in the release, we will have a significant gain.

Speaker Change: Uh huh.

Speaker Change: Crowd is up.

Speaker Change: Thanks, Cory I'll just take the spin process questions. We filed the registration statement on January 27th once it declared effective we will continue to have a finalized separation agreements between the companies will also make additional filings with the SEC as necessary.

Speaker Change: Thank you.

Speaker Change: Right.

Speaker Change: Right.

Speaker Change: Hey, Bill.

Speaker Change: Evan.

Barry Diller: The ones that we have a significant gain in the first quarter of 2025 of approximately $36 million associated with a highly favorable lease buyout. Our adjusted EBITDA guidance excludes this gain Barry I'll turn it over to you. We just got a question about capital allocation and how that changed in the context of our strong balance sheet.

Great.

Speaker Change: However, the ones that we got a significant gain in the first quarter of 2025 of approximately $36 million associated with a highly favorable lease buyout, our adjusted EBITDA guidance excludes this gain.

Speaker Change: Uh huh.

Speaker Change: Nothing additional.

Speaker Change: We are very focused on closing right now on March 31, but we continue to work through customary legal and tax considerations along with certain operational details at the end of the day. The goal is a seamless and successful transition to four LNG to being a standalone public company.

Speaker Change: Sure.

Speaker Change: I'll turn it over to you.

Speaker Change: Okay.

Speaker Change: Just got a question about capital allocation and how that changed in the context of our strong Valley. Alright. This is all very odd for me because youll have to augment it.

Speaker Change: Great.

Speaker Change: Okay.

Speaker Change: Okay.

Barry Diller: Alright. This is all very odd for me because I didn't.

Speaker Change: Maryland.

Speaker Change: The duration of use.

Barry Diller: Here in my opening remark.

Speaker Change: Here in my opening remark.

Barry Diller: We got your opening remarks up through angi in the very beginning of <unk> and then we start <unk>. When you were going through the quarterly growth rates of <unk> starting to point to that's where we lost you.

Speaker Change: Yes.

Speaker Change: We got your opening remarks up through angi in the very beginning of <unk> and then we start a lot you. When you were going through the quarterly growth rates of <unk> starting.

Speaker Change: England.

Speaker Change: And as we said we're on process for $3 31 regarding Amg's balance sheet. The current plan is not to make any dividends. So we would spin Angie with its current cash balance of $416 million and $500 million of attractively priced bonds with that I'll pass it to Jeff Thanks, Chris Corr.

Speaker Change: Oriented.

Speaker Change: Perfect.

Speaker Change: Okay.

Speaker Change: Starting to point to that's where we lost you.

Speaker Change: Okay.

Barry Diller: Oh nice.

Speaker Change: Regarding Egypt.

Speaker Change: Oh nice.

Barry Diller: Yes, well technology umbrella so about how many minutes again, because I went on for about 20 minutes.

Speaker Change: Yes, well technology Brown with hot so about how how many minutes again, because I went on for about 20 minutes.

Speaker Change: Yes.

Speaker Change: He was financed.

Speaker Change: Cash balance.

Speaker Change: <unk> heard nothing.

Speaker Change: Right.

Speaker Change: I've heard nothing.

Speaker Change: The key would be to pivot to pivot to the capital allocation section and talk through thoughts on M&A and buyback because we didn't get to that.

Speaker Change: $500 million.

Speaker Change: I think it would be a pivot dependent to the capital allocation section and talk through thoughts on M&A and buyback is that we didn't get to that and thats.

Speaker Change: It's being.

Speaker Change: Being priced bonds with that.

Speaker Change: I'll take your question in Q1, and the 'twenty to 'twenty five outlook I'll, probably throw in 2026, a little as well our Q1 outlook is a little below what we estimated about three months ago at the time, we assume that the first quarter would be a world framed by the FCC order and we got ready we fully implement.

Speaker Change: Okay.

Speaker Change: Obviously this at all because we're not in the same room. So.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: This is all because we're not in the same room.

Speaker Change: Okay.

Speaker Change: The easiest but.

Speaker Change: Outlook.

Speaker Change: The easiest but did.

Speaker Change: Did I cover the turnaround and so you can stop that.

Speaker Change: Did I cover the turnaround and thinking about that.

Speaker Change: Our Q1 outlook is a little bit.

Speaker Change: Yes, yes got the angi and most of that debt.

Speaker Change: Yes, yes.

Speaker Change: Yes.

Speaker Change: Angie and most of that that non tariff.

Speaker Change: Terry.

Speaker Change: Months ago right.

Speaker Change: And if I talk about the Yankees.

Speaker Change: And if I can talk about the anti spam.

Speaker Change: No we didn't get any sense, alright, so let me pick up there and I'm sorry to everybody but.

Speaker Change: The first quarter.

Speaker Change: No we didn't get anything alright, so let me pick up there I'm sorry, everybody but.

Speaker Change: Good consumer choice consistent with the FCC order on January 13th that's a couple of weeks ahead of the orders effective date.

Speaker Change: By the end of July.

Speaker Change: Got it.

Speaker Change: Yeah.

Speaker Change: Technology sales.

Speaker Change: Technology sales.

Speaker Change: Right.

Speaker Change: Just a moment you kind of depend upon it so.

Speaker Change: That's at the moment, you're kind of depend upon it so.

On January <unk>.

Speaker Change: Not just because of the order, but also because we know and we've known it is clearly the best thing for our customers in the business long term.

Speaker Change: What have you heard or not.

Speaker Change: Yeah.

Speaker Change: What have you heard or not.

Speaker Change: Okay.

Speaker Change: Two years, turning around these businesses, which is why froze everything you'd want to be distracted during this period.

Speaker Change: Almost two years turning around these businesses, which is why froze everything.

Speaker Change: Sure.

Speaker Change: No no that's clearly.

Speaker Change: Been steadily moving towards this implementation of the FCC order really only accelerated our path.

Speaker Change: We didn't want to be distracted during the period.

Speaker Change: And.

Speaker Change: No.

Speaker Change: And.

Speaker Change: As you certainly know about our.

Speaker Change: Okay.

Speaker Change: As you certainly know about our.

Speaker Change: Okay.

Implementation of the FCC order.

Speaker Change: As we noted in the letter.

Speaker Change: Decades of spinning off companies aren't conglomerate with an anti conglomerate, it's kind of like.

Speaker Change: Decades of spinning off companies or conglomerate, but then have that conglomerate, it's kind of like.

Speaker Change: Experience.

Speaker Change: The improved experience has been evidenced for awhile homeowner NPS is double digits better when they choose the pro than when their auto matched and pros when believe 60% more often when theyre chosen then when they're automatic.

Speaker Change: As noted in the letter.

Speaker Change: That concept, which I believe is because this is when they got to be of sufficient size they want to be spun off and be independent.

Speaker Change: That concept, which I believe the businesses when they've got to be of sufficient size, they ought to be spun off and be independent.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: There's nothing more for it and that obviously could do really for angi, Joey and Jeff with running the business.

Speaker Change: Yes.

Speaker Change: Nothing more further device you could do Rudy Franz Joey and Jeff with running the business.

Speaker Change: Yes.

Speaker Change: Better.

Speaker Change: Confidence in that they've done a very good job in getting it to the state where can continue to grow and also can we come to me and said I really like a business of my own and I like my own store.

Speaker Change: Thank you.

Speaker Change: Complete confidence and that makes them a very good job in getting it to say, we're continuing to grow and also can we come to me and said I really like a business of my own I'd like my own store.

Speaker Change: Okay.

Speaker Change: Frozen.

Speaker Change: Thanks.

Speaker Change: So.

Speaker Change: Joe.

Speaker Change: We looked at that data. We said this is clearly the right thing since we've made the change we've gotten very positive feedback from our customers.

Speaker Change: I totally respect that and encourage that.

Speaker Change: I totally respect that and encourage that and.

Speaker Change: Yes.

Speaker Change: And we have the vehicle to do so make no sense for us to keep answering partially topic, one majority, but still be a public company either innerwear out I think.

Speaker Change: That data.

Speaker Change: And we have the vehicle to do so make no sense for us to keep Andrew partial eating habits.

Speaker Change: Right.

Speaker Change: We've observed the dynamics in the marketplace and the improvement in the market experienced only confirmed all of this prior analysis and our conviction in the change.

Speaker Change: We've gotten very positive feedback.

Speaker Change: Majority, but it'll be a public company outerwear innerwear out I think.

Speaker Change: It is the perfect time to do the spin off and I'm glad because I think it'll happen.

Speaker Change: Okay.

Speaker Change: It is the perfect time to do the spin off and I'm glad because I think it will happen.

Speaker Change: Alright.

Speaker Change: Yeah.

Speaker Change: Great.

Speaker Change: If somebody correct me, but I think it's March 30, <unk> to date correct it will happen.

Speaker Change: Perfect.

Speaker Change: On January 24th.

Speaker Change: Somebody correct me, but I think it's March 31st is today frankly it'll happen.

Speaker Change: Prior analysis.

Speaker Change: At the last minute the court vacated the FCC rule change.

Speaker Change: Okay.

Speaker Change: So as I said before I did freeze everything we were running burning cash in 'twenty two we've gone from burning cash now having 352 million of cash flow. This year, we purify the company we sold assets.

Speaker Change: One.

Speaker Change: And.

Speaker Change: So as I said before I did freeze everything we were running burning cash in 'twenty two.

Speaker Change: Perfect.

Speaker Change: <unk>.

Speaker Change: And the last minute Unfortunately.

Speaker Change: We however, still going ahead, we're sticking with the change we're making our competition is not this is creating some short term disruption in the market and an impact on our first quarter, but long term.

Speaker Change: Yeah.

Speaker Change: One for Brian Cashman, now, having 352 million of cash flow this year.

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: However.

Speaker Change: The company was sold assets.

Speaker Change: We bought MGM before this period.

Speaker Change: Perfect.

Speaker Change: We bought MGM before this period.

Speaker Change: We're making it a comprehensive.

Speaker Change: Believe it MTM is.

Speaker Change: The MTM is a bad idea.

Speaker Change: Good morning.

Speaker Change: I'm, sorry, I missed it.

Speaker Change: Okay.

Speaker Change: Unlike a product where you can watch it has a superb management no one will ever duplicate Las Vegas anywhere else in the World, We have 40 plus percent of the market.

Speaker Change: MTM, it's run like a product where you can watch it has a superb management.

Speaker Change: We consider ourselves very well competitively positioned.

Speaker Change: The impact of them.

Speaker Change: In the marketplace with a significantly better customer experience.

Speaker Change: For ourselves very well.

Speaker Change: No one will ever duplicate Las Vegas anywhere else in the World, We have 40 plus percent of the market.

Speaker Change: Okay.

Speaker Change: Marketplace with significantly better customer experience.

Speaker Change: So going forward.

Speaker Change: It cannot be disintermediation by any technology.

Speaker Change: It cannot be disintermediation by any technology theres nothing between it and its customer and serving its customers as you know these hotels run at 90 plus percent capacity.

Speaker Change: We're obviously real time adjusting to the changes in the marketplace, given the regulatory shift, but theres a number of factors that give us high confidence or build through 2025 and back to growth in 2026 first the first quarter is our toughest comp of the year.

Speaker Change: Okay.

Speaker Change: Nothing between it and its customer and serving its customers as you know these hotels run at 90 plus percent capacity.

Speaker Change: Yes.

Speaker Change: Hey, Jonathan.

Speaker Change: And the.

Speaker Change: Jason.

Speaker Change: And the few.

The future for MCM building 10, plus billion dollar resort and span the only gaming resort in the entire country in Osaka, which will open.

Speaker Change: Hi.

Speaker Change: Future for MCM building 10, plus billion dollar was Oregon span the only gaming resort in the entire country in Osaka, which will open.

Speaker Change: There is a note.

Speaker Change: Right.

Speaker Change: We bought back.

Speaker Change: Some years to build it but it is a great flag for MGM is going to plan other flags around the world, it's going to simplify itself over the next year like it's been a little.

Speaker Change: We're sunsetting, a few hundred basis points of non choice revenue in our proprietary channels that we got rid of at the end of the first quarter last year, and we don't have to compare to that for the rest of 2025. Secondly, we have a number of product builds impacting marketing efficiency matching and monetization that we have clear data behind that will add revenue and.

Speaker Change: The first quarter.

Speaker Change: Let's take some years to build it but.

Speaker Change: It's a great flag for MGM is going to plan other flags around the world, it's going to simplify itself over the next period I think it's been conflicts a little overly complex for people to understand.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: <unk>.

Speaker Change: Overly complex for people to understand it's wildly undervalued and I think that it's just.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Like last year.

Speaker Change: It's wildly undervalued and I think that it's just.

Speaker Change: Sure.

Speaker Change: You have to get them done.

Speaker Change: How lucky do you get to be able to found a company at a time when it was.

Speaker Change: Secondly, we are somewhat cautious.

Speaker Change: How lucky to get to be able to found a company at a time when it was.

Speaker Change: The market today.

Speaker Change: It was all shut down in Las Vegas, when we came on it was open we're going to buy and advantageously.

Speaker Change: Profit as we build through the year.

Speaker Change: Okay.

Speaker Change: It was all shut down in Las Vegas, when we came upon it was opened we were able to buy and advantageously bought back a lot of stocks continue to do so.

Speaker Change: Got it.

Speaker Change: Thirdly, our single pro product initiatives referenced in the letter on the last call was going to lead to growth in revenue per monetized transaction by the second half of the year as we sunset our legacy ads pricing structures.

Speaker Change: Revenue and profit.

Speaker Change: A lot of stocks, particularly to do so.

Speaker Change: Right.

Speaker Change: <unk>.

Speaker Change: Okay.

Speaker Change: I think the idea of having CDM.

Speaker Change: And I just couldn't.

Speaker Change: Okay.

Speaker Change: I think the idea of having CDM.

The position of the DD Amazon.

Speaker Change: Okay.

Speaker Change: And the precision of the DD Amazon.

Speaker Change: Outperforming its peers.

Speaker Change: Okay.

Speaker Change: Outperforming its.

Speaker Change: Competitors.

Speaker Change: Its competitors.

Speaker Change: As we sunset our legacy.

Speaker Change: Fourthly, we expect to steadily returned to growth in our proprietary ESR channels. This year it'd be fully growing in 2026, RCM unbranded Srs are growing today <unk> dot com SCO is only down single digits today, and its 90% of our own brand organic traffic and so we expect to continue building through the year.

Speaker Change: I do.

Speaker Change: I'm going to ask you one more question.

Speaker Change: I'm going to ask you one more question that I get to the thing that's giving you. The fact that the traffic between traffic CDM.

Speaker Change: The other thing Thats, giving you the status of the traffic between traffic CDM.

Speaker Change: Okay.

Speaker Change: Lee.

Speaker Change: Okay.

Speaker Change: I think you were halfway halfway through that which is exactly when we lost you right alright, well good halfway or is really the worst of it. So let me go from a halfway back to that next halfway good for.

Speaker Change: Okay.

Speaker Change: Right.

Speaker Change: Fear.

Speaker Change: I think you were halfway halfway through that.

Speaker Change: When we lost you right alright, well good halfway.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: The worst of it so let me go from halfway back to that next halfway good for six quarters. We went down to 713, 14, and 15, 10% beginning in the fourth quarter of 'twenty, three plus nine fourth quarter first quarter 13, and 12% then 60% in the fourth quarter just enough, 10% I mean, that's an incredible reversal.

Speaker Change: Yes.

For six quarters, we went down to 714 15, 10% beginning in the fourth quarter of 'twenty three plus nine fourth quarter first quarter 13, 12% then 60% in the fourth quarter just another 10%.

Speaker Change: Great.

Speaker Change: 90%.

Speaker Change: <unk> and reach growth in 2026.

Speaker Change: Exactly.

Speaker Change: We continue building and reach.

Speaker Change: On the flip side, our third party.

Speaker Change: <unk> are going to take a significant step down in 2025, but because we're doing it at the beginning of the year, we expect it to be flat in 2026, and the two together give you growth.

Speaker Change: Okay.

Speaker Change: Incredible reversal.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Alrighty.

Speaker Change: Yes.

Speaker Change: It has to.

Speaker Change: Okay.

Speaker Change: Bye bye.

Speaker Change: It's difficult to integrate and transition also kicked by.

Speaker Change: Yes.

Speaker Change: It has to go through this difficult integration and transition also kicked by.

Speaker Change: Yeah.

Speaker Change: Finally.

Speaker Change: Okay.

Speaker Change: AD market itself, having a decline, but it is an excellent asset.

Speaker Change: We expect increased homeowner repeat and pro retention because of the impact of homeowners choice on the experience.

Speaker Change: The AD market itself, having a decline but it.

Speaker Change: Okay.

Speaker Change: Finally.

Speaker Change: It is an excellent bathroom.

Speaker Change: The bedrock breakout with IC, DDI and MTM plus we have.

Speaker Change: Okay.

Speaker Change: Get the bedrock right now of IC D D M and M. P M plus we have.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: On both sides of the marketplace. So net.

Speaker Change: Obviously.

Speaker Change: Choice.

Speaker Change: Q1 is going to be down a little versus what we said a few months ago and down in the low 20% year over year, but we've got even more confidence in revenue improvement across the year and a return to growth in 2026 and very much have confidence in the competitive position, we are able to take in the quality of the customer experience, we're going to be able to deliver over the long term.

Speaker Change: Obviously.

Speaker Change: You all know our balance sheet is very strong.

Speaker Change: Alright.

Speaker Change: Mark.

Speaker Change: You will know our balance sheet is very strong.

Speaker Change: As I said earlier.

Speaker Change: Yes.

Speaker Change: Richard.

Speaker Change: As I said earlier.

Speaker Change: I froze everything if need it that we're not buying stock back during this period because I can think we deserve to until we've got in our business is shaping up and confidence that our business I'm not going to talk about what we will do but I will talk about one thing which is the fact that I did stop it that's stopping has ended.

Speaker Change: I froze everything that we're not buying stock back during this period, because I do think we deserve to until we've got in our business is shaping up and confidence about our business I'm not going to talk about what we will do but I will talk about one thing which is the fact that I did stop it that's stopping have ended.

Speaker Change: Okay.

Speaker Change: What do you.

Speaker Change: Right.

Speaker Change: Youre right.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: And I'm not going to foresee things because what I, just said I hope, it's fairly obvious but.

Speaker Change: Okay.

Speaker Change: So we think that this is going to deliver value to our customers value to our shareholders and our strong next couple of years.

Speaker Change: And I'm not going to foresee things cause retrofit I hope is fairly obvious but.

Speaker Change: That's right.

Speaker Change: Okay.

Speaker Change: I Hope you understand the reason I did stop it and wanted us to freeze can only pay attention to our businesses and getting them straightened out getting the whole corporate structure straightened out.

Speaker Change: So.

Speaker Change: I Hope you understand the reason I did stop it and wanted us to freeze can only pay attention to our businesses and getting them straightened out getting the whole corporate structure straightened out we're now in a situation where that stays has finished.

Speaker Change: Yes.

Speaker Change: Thank you Jeff.

Speaker Change: Sure.

Speaker Change: And there's a strong nexus going forward here.

Speaker Change: Operator next question.

Speaker Change: Okay.

Speaker Change: Absolutely. Our next question today comes from John Blackledge with TV Cowen. Please go ahead.

Speaker Change:

Speaker Change: Now in a situation where that phase has finished I think we are pressured by.

Speaker Change: Operator.

Speaker Change: Great.

Speaker Change: Yeah.

Speaker Change: Great Thanks, and Joe Good luck with the move.

Speaker Change: These recently announced event as far as what are we going to what our capital. There are areas I think of <unk> invest in there are also all sorts of opportunities whether it's by building history. This company has been God knows endless starts of five businesses.

Speaker Change: John.

Speaker Change: Bye Bye bye.

Speaker Change: Judy.

And then as far as what are we going to what our capital there are areas I think of BD and invest in there are also all sorts of opportunities whether it's by building history. This company has been God knows endless starts of five businesses.

Two questions for Chris <unk>.

Speaker Change: Alright. Thanks.

Speaker Change: Yes.

Speaker Change: Could you talk about the drivers of <unk> revenue and EBITDA and maybe walk through the <unk> 25 in fiscal 'twenty five puts and takes for Tdm revenue and EBITDA Guide and then second question would be you know kind of given IAC strong balance sheet and the ramping free cash flow, how should we think about capital allocation.

Speaker Change: Yeah.

Speaker Change:

Speaker Change: Okay.

Speaker Change: Yeah.

Okay.

Speaker Change: I mean, we've lost <unk>.

Speaker Change: And that landscape, while I think you know the internet field fairly covered but where we're going to look at anything to talk to walk or whatever and we're not anxious.

Speaker Change: The only part.

Speaker Change: And that landscape, while I think you know the internet fueled a fairly covered but where we're going to look at anything to talk to walk or whatever and we're not anxious.

Speaker Change: Okay.

Speaker Change: For dementia.

Speaker Change: All right.

Speaker Change: Sure.

Speaker Change: Thank you.

Speaker Change: Oh geez.

Speaker Change: <unk> and then what the upcoming angi spend enjoying Joey moving over to Angie as executive Chairman, how should we think about kind of the management transition at IAC. Thank you.

Speaker Change: We will do this as we've done it before that was a good idea and if we think it makes sense. We will go forward with it and at least our history have shown that in doing that.

Speaker Change: Absolutely.

Speaker Change: We will do this as we've done it before how much of a good idea and if we think it makes sense. We will go forward with it and we.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Restart history have shown that in doing that.

Speaker Change: Yeah.

Speaker Change: Got it.

Speaker Change: We've built assets and value and that's what me and Chris <unk>, our head of M&A are dedicating themselves to do in addition to.

Speaker Change: We've built assets and value and that's what Liam Griffin repertoire of M&A are dedicating themselves to do in addition to the work that we'll continue to do with our principle of DBM and our involvement with nvme. So okay I hope still with you after having.

Speaker Change: Yeah.

Speaker Change: Yes. Thank you John so starting with <unk> on our last earnings call, we talked about how sluggish both consumer traffic and advertiser spend we're headed up to and through the U S election.

Speaker Change: Okay.

Okay.

Speaker Change: The work that we'll continue to do with our principal happen a BPM and our involvement with MTM. So okay. I hope still on with you after having almost almost twice that was perfect. You answered you answered John's question, while there Barry Thank you.

Speaker Change: Starting with <unk>.

Speaker Change: Yeah.

Speaker Change: On our last earnings call.

Speaker Change: Okay.

Speaker Change: Were cautiously optimistic at the time, both would ramp back up after the political landscape of assorted <unk>.

Speaker Change: Right.

Speaker Change: Almost almost twice that was perfect you answered you answered John's question, while there Barry Thank you.

Speaker Change: You bet.

Speaker Change: Possibly optimistic at the time.

Speaker Change: Thank you John Operator next question.

Speaker Change: And we saw that November traffic was excellent for us most notably on our food sites as Neil Vogel likes to say Thanksgiving as the Super Bowl for all recipes traffic in December was slower mainly due to a lack of celebrity and entertainment news it people and some less robust holiday momentum in the home category on the advertising.

Speaker Change: Yep.

Speaker Change: Thank you John Operator next question.

Speaker Change: Absolutely. Our next question comes from Eric Sheridan with Goldman Sachs. Please go ahead.

Speaker Change: Got it.

Speaker Change: Absolutely. Our next question comes from Eric Sheridan with Goldman Sachs. Please go ahead. Thank.

Speaker Change: We saw that.

Speaker Change: Right.

Eric Sheridan: Thank you so much for taking the question maybe two if I could first of all the energy team understood on the three pillar dynamic with respect to 25 going into 'twenty six I wonder if we get a little bit more color on what investors should expect in terms of some of the headwinds starting with the potential tailwind for the business that we should be monitoring from the outside in terms of that transformation of coal across those three pillars, and specifically with the transition to a single product and platform how to think about some of the integral.

Eric Sheridan: Thank you so much for taking the question maybe two if I could first of all the energy team understood on the three pillar dynamic with respect to 25 going into 'twenty six I wonder if we get a little bit more color on what investors should expect in terms of some of the headwinds starting to potential tailwind for the business that we should be monitoring from the outside in terms of that transformation of coal across those three pillars, and specifically with the transition to a single product and platform how to think about some of the integrates.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Thanks.

Speaker Change: Yeah.

Speaker Change: December.

Speaker Change: Thank you to go after that.

Speaker Change: Pete.

Speaker Change: Rising front, we saw many advertisers come back into the premium and programmatic markets in mid November net result of all of that for the third quarter, we posted 3% core sessions growth and 3% digital advertising growth a real bright spot in the quarter was performance marketing.

Speaker Change: Holiday.

Speaker Change: Hum.

Speaker Change: Advertising front.

Eric Sheridan: <unk> dynamics are moving towards that and what it might mean for sort of improving the quality overall on the platform that would be number one and maybe following up on your answer great to have the opportunity to speak.

Speaker Change: Yeah.

Eric Sheridan: <unk> dynamics are moving towards that and what it might mean for sort of improving the quality overall on the platform that would be number one and then Barry maybe following up on your answer a great to have the opportunity to speak.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: For the third quarter, we posted a 3%.

Speaker Change: Okay.

Eric Sheridan: You see has changed over the years in terms of taking stakes in companies to continue driving operating businesses. When you think about the framework you just laid out about investing for the long term and IC. How should we think about what your priorities are with respect to operating businesses I suppose maybe investing in businesses like we saw examples of MGM and terrific. Thank you.

Speaker Change: Which grew 22% led by exceptional ecommerce performance. It was great to see this area grow strongly after a couple of sluggish quarters and it highlights <unk> industry, leading ability to convert consumer interest.

Speaker Change: A real bright spot.

Eric Sheridan: You see has changed over the years in terms of taking stakes in companies and continue driving operating businesses. When you think about the framework you just laid out about investing for the long term and IC. How should we think about what your priorities are with respect to operating businesses I suppose maybe investing in businesses like we saw examples of MGM and <unk>. Thank you.

Speaker Change: Marketing.

Speaker Change: To what extent.

Speaker Change: Good afternoon.

Speaker Change: This area of growth.

Joe.

Speaker Change: Industry, leading.

Speaker Change: Into sales for our retail partners and then finally licensing continued its strong growth led by our open AI and Apple news partnerships.

Eric Sheridan: So.

Speaker Change: With your first question, Eric I've been trying to sum up a little bit what I said before which is we have been progressively improving the product and building our proprietary traffic back to growth. Our SCM proprietary ICM has returned to growth, we expect our proprietary growth to move and improve through the year and get the growth of only 26.

Speaker Change: Thanks for your interest.

Eric Sheridan: With your first question, Eric I've been trying to sum up a little bit what I said before which is we have been progressively improving the product and building our proprietary traffic back to growth. Our proprietary <unk> has returned to growth, we expect our proprietary growth to move and improve through the year and get to growth of 236.

Speaker Change: Life sales.

Speaker Change: And then behind you.

Speaker Change: This strong growth led by Anthony.

Speaker Change: Gather these three revenue lines blended a 10% digital revenue growth above the range. We were forecasting looking to 2025, we view all three digital revenue growth areas as healthy and strongly positioned.

Speaker Change: The other revenue lines.

Speaker Change: Tentage or revenue.

Speaker Change: The choices taken a big chunk out of our third party business, but that business is now going to be stable going forward. So the two together get us to growth going forward on the pro side. Our retention has improved materially we're literally bringing 700 basis points more of the proactive in 'twenty, we brought 700 basis points more of the <unk> active in 2023 in 2024 compared to what we brought in 'twenty two into 'twenty three.

Speaker Change: Yes.

Eric Sheridan: And the choices taken a big chunk out of our third party business, but that business is now going to be stable going forward. So the two together get us to growth going forward on the pro side. Our retention has improved materially we're literally bringing 700 basis points more of the proactive in 'twenty, we brought 700 basis points more of the <unk> active in 2023 into 'twenty 'twenty four compared to what we brought from 'twenty two into 'twenty three.

Speaker Change: Yeah.

Speaker Change: Digitally.

Speaker Change: Areas.

Speaker Change: In aggregate, we're expecting 10% plus digital revenue growth for the year with high single digit growth in Q1, a few factors contribute to a slightly lower first quarter growth in those high single digits. It's more challenging January and February comps Easter, which is a key holiday for a shifts this year into Q2 from <unk>.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: 10% plus.

Speaker Change: Here's one.

Speaker Change: Okay.

Speaker Change: In Q1.

Speaker Change: Okay.

Speaker Change: Lower first quarter.

Speaker Change: While our acquisition is coming down and thus, we're not netting network growth yet those forces will cross going forward, particularly with the incremental changes in customer experience. So we expect the pro network to inflect the growth again as well so the two of those things all combined.

Eric Sheridan: While our acquisition is coming down and thus, we're not netting network growth yet those forces will cross going forward, particularly with the incremental changes in customer experience. So we expect the pro network towards like the growth again as well so the two of those things are combined.

Speaker Change: It's more challenged Vijay.

Speaker Change: Yeah.

Speaker Change: Q1 last year and there is one less day due to the leap year, the second quarter, Conversely sets up stronger with easier comps in the Easter benefit.

Speaker Change: Consolidated.

Speaker Change: Yeah.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: And that we will take our trajectory back to north of 20 <unk> in terms of single pro product Theres a couple of pieces to it one is moving all of our pros to a single platform with a single product and pricing structures that allow us to run our operations more efficiently reduce time to market reduce overhead and make our acquisition and marketing more efficient secondly, it's going to as I said before sunset. Some pricing structure is going to pave the way to grow our revenue per monetized transaction.

Speaker Change: Second quarters, except up stronger.

Speaker Change: On the digital advertising front, we're expecting mid single digit traffic growth for the year.

Eric Sheridan: And that will take our trajectory back to grow to 20 <unk> in terms of single pro product Theres a couple of pieces to it one is moving all of our pros to a single platform with a single product and pricing structure is going to allow us to run our operations more efficiently reduce time to market reduce overhead and make our acquisition and marketing more efficient.

Speaker Change: Thanks.

Speaker Change: Do you expect the NIM.

Speaker Change: And mid single digit monetization growth will also generate incremental revenue from the launch of decipher plus where we will be seen third part we'd be selling third party inventory using our proprietary targeting technology. We're testing this with select advertisers this quarter and we'll scale it up throughout the year, and then performance marketing and licensing.

Speaker Change: Yes.

Speaker Change: For the year.

Speaker Change: Great.

Speaker Change: Got it.

Speaker Change: Walter generate.

Speaker Change: Yeah.

Speaker Change: Yeah.

Eric Sheridan: <unk> is going to as I said before sunset some pricing structure is going to pave the way to grow our revenue per monetized transaction. The second half of the year, which will be another lift in our incremental progress back to growth in terms of integration risk. We've now done five migrations are of comparable size in Europe, we're pretty season to this will likely take a little disruption, but we'll also get back pros from the old product. We do it every time, we do it in Europe.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: Second half of the year, which will be another lift in our incremental progress back to growth in terms of integration risk. We've now done five migrations are of comparable size in Europe, we're pretty season to this will likely take a little disruption, but we'll also get back pros from the old product. We do it every time, we do it in Europe.

Speaker Change: Criteria.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Both grow solidly for the year.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: <unk> continues to manage its cost structure thoughtfully as shown by the severance in the fourth quarter due to head count reductions to reallocate resources for.

Speaker Change: The license.

Speaker Change: Yeah.

Speaker Change: Sure absolutely.

Speaker Change: This is basic operations for us and so we expect of course, there can be a little noise in the system, but we actually expect to come out better and move forward. While there I think I covered all of the pieces of your question I got very well said, let's go to Barry.

Eric Sheridan: This is this is basic operations for us and so we expect of course, there could be a little noise in the system, but we actually expect to come out better and move forward. While there I think I covered all the pieces of your question I got very well said, let's go to Barry.

Speaker Change: 40.

Speaker Change: For the year, we're forecasting 40% plus digital incremental EBITDA margins, which combined with 10% digital revenue growth and then 10% revenue declines in our print segment lead to our guide of $3 30 to $3 50 of total EBITDA $3 million of total EBITDA.

Due to head count.

Speaker Change: Okay.

Speaker Change: For the year.

Speaker Change: Okay.

Speaker Change: Right.

Barry Diller: As far as operating businesses.

Speaker Change: Got it.

Barry Diller: As far as operating businesses.

Speaker Change: With you.

Barry Diller: Take it any way it comes.

Speaker Change: That'd be great.

Barry Diller: I'll take it any way it comes.

Speaker Change: I believe so.

Speaker Change: Per cent recipe.

Eric Sheridan: I believe so.

Speaker Change: Forever, but once the business gets up to scale, you don't want to be spun out to be independent and on its own.

Speaker Change: You are guiding.

Eric Sheridan: Forever, but once the business gets up to sufficient scale you don't have to be spun out can be independent on on its own.

Barry: When accounting note as noted in the release, we will have a significant gain a Barry you hand, it over to you. Once we will have a significant gain in the first quarter of 2025 of approximately $36 million associated with a highly favorable lease buyout, our adjusted EBITDA guidance excludes this gain.

Speaker Change: Totally.

Speaker Change: When accounting.

Speaker Change: I think companies that have multiple operating businesses and try to offer to the market. So.

Speaker Change: I think companies that have multiple operating businesses and trying to operate each of them do.

Speaker Change: We will.

Speaker Change: Thanks Barry.

Eric Sheridan: So.

Speaker Change: <unk>.

Speaker Change: Got it.

Speaker Change: Those companies were standing on their own and and and.

Eric Sheridan: Basically.

Eric Sheridan: And then those companies were.

Speaker Change: Hi.

Eric Sheridan: Standing on their own and and and.

Speaker Change: Hi.

Speaker Change: Yeah.

Speaker Change: As we look into the into the future possibilities.

Speaker Change: Uh huh.

Speaker Change: Okay.

Eric Sheridan: As we look into the future possibilities.

Barry I'll turn it over to you. We just got the question about capital allocation and how that changed in the context of our strong balance sheet.

Speaker Change: Our adjusted EBITDA.

Speaker Change: I'm sure there'll be operating businesses.

Speaker Change: Okay.

Eric Sheridan: I'm sure they'll be operating businesses that we will operate for a period of time, but actually we operate them for too long I think probably playbook.

Speaker Change: For a period of time, but actually we operate them for too long I think probably people have.

Speaker Change: Barry.

Speaker Change: Yeah.

Speaker Change: And just got.

Speaker Change: Both of them if they succeed we will send them out.

Speaker Change: Application.

Eric Sheridan: Dispose of them if they succeed we will send them out.

Speaker Change: Alright. This is all very odd for me because youll have to I've been.

Speaker Change: Thank you. Thank you operator next question absolutely.

Speaker Change: Pardon me.

Contact.

Thank you. Thank you operator next question.

Speaker Change: Awesome.

Speaker Change: Absolutely. Our next question comes from Jason <unk> with Oppenheimer. Please go ahead. Thank.

Speaker Change: Did you hear my opening remark.

Speaker Change: Our next question comes from Jason <unk> with Oppenheimer. Please go ahead.

Speaker Change: Perfect.

Speaker Change: Hey, Thanks for taking the questions two questions maybe just the peripheral buried in the second the follow up are doing great.

Speaker Change: We got your opening remarks up through angi in the very beginning of DBM and then we started last you when you were going through the.

Speaker Change: Did you hear Mike.

Jason: Hey, Thanks for taking the questions. Two question. Maybe this is the personal batteries in the second the follow up for doing correct.

Speaker Change: Uh huh.

Speaker Change: Okay.

Speaker Change: Maybe I'll ask in that order. So just Gary I think one of the questions. We keep getting from investors would be how would you characterize kind of post not Andrew as many boys to lean more into multi year bet.

Speaker Change: Maybe I'll ask in that order. So just Gary I think one of the questions. We keep getting from investors would be how would you characterize kind of post out and are you seeing any bleed to lean more into multiyear bets.

Speaker Change: Okay.

Yeah.

Speaker Change: Okay.

Speaker Change: Quarterly growth rates of DM.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: The 22, that's where we lost it.

Speaker Change: Alright.

Speaker Change: Thank you Sir.

Speaker Change: Are you more focused on realizing the combat and returning the maximum amount of cash and value to shareholders. So just let's start with that question and then I'll just follow up on that.

Speaker Change: Oh nice.

Speaker Change: The 22.

Speaker Change: Are you more focused on realizing the combat and returning the maximum amount of cash and value to shareholders. So just let start with that question and then just a follow up on American.

Speaker Change: Ah, yes, well technology gorilla.

Speaker Change: Hi.

Speaker Change:

Speaker Change: Alright.

Speaker Change: Robert.

Speaker Change: So about how.

Speaker Change: That's helpful.

Speaker Change: Well.

Speaker Change: Many minutes in cause I went on for about 20 minutes and then.

Well.

Speaker Change: Okay.

Speaker Change: You'll see what we do in the next period as I say I stopped us.

Speaker Change: You'll see what we do in the next period as I say I stopped us.

Speaker Change: Uh huh.

Speaker Change: I heard nothing.

Speaker Change: Yes.

Speaker Change: From using our capital to return it to shareholders for the reasons I said before.

Speaker Change: I think the key would be to pivot to pivot to the capital allocation section and talk through thoughts on M&A and buyback because we didn't get to that and thats.

Speaker Change: And then.

Speaker Change: Using our capital to return it to shareholders for the reasons I said before.

That period has ended and so it's always going to be a balance.

Speaker Change: Thank you.

Speaker Change: About theory.

Speaker Change: It has ended.

Speaker Change: Capital allocation.

Speaker Change: So it's always going to be a balance.

Speaker Change: Do you think the first opportunity to.

Speaker Change: The first opportunity.

Speaker Change: You're investing in your current business, if I could just real.

Speaker Change: Todd.

Speaker Change: You're investing in your current business is I think there's a real opportunity.

Speaker Change: This is this is all because we're not in the same room. So.

Speaker Change: The real opportunity.

Speaker Change: Buyback.

Speaker Change: Inside EDM and all sorts of areas and I think that May take some capital I think also again, we have we don't have any drag on us we don't have any problem. So to speak all of that sounds can solve so all of our attention can go to seeking new opportunities and they always come if you're I'm not inpatient and outpatient so we will see it will be.

Speaker Change: So that's.

Speaker Change: Inside EDM, all sorts of areas and I think that May take some capital I think also again, we have clean slate, we don't have any drag on us we don't have any problem. So to speak all of that stuff has been solved so all of our attention can go to seeking new opportunities and they always if youre not inpatients and outpatient so we will see it will be.

Speaker Change: Yes.

Speaker Change: Alright.

Speaker Change: I think the easier but.

Speaker Change: This is al.

Speaker Change: Right.

Speaker Change: Did I cover the turnaround Andrey and Doctor.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yes, yes.

Speaker Change: Turnarounds.

Speaker Change: Through angi and most of that debt.

Speaker Change: Uh huh.

Speaker Change: And terrorists.

Speaker Change: And did I talk about the anti spam.

Speaker Change: And most of that debt.

Speaker Change: No.

Speaker Change: Yeah.

Speaker Change: Clearly a mix between returning.

Speaker Change: No we didnt get the anti spin alright, So let me pick up there I'm sorry, everybody but.

Speaker Change: And we'd like to talk about.

Speaker Change: Clearly a mix between returning.

Speaker Change: Capital to shareholders and seeking opportunities.

Speaker Change: Yes.

Speaker Change: Capital to shareholders and seeking opportunity.

Speaker Change: Oh no.

Speaker Change: Thank you and then Joey grip now that digital revenue is growing double that Meredith.

Speaker Change: Gordon.

Joey Levin: Okay. Thank you Joey.

Speaker Change: Uh huh.

Speaker Change: Pick up there.

Speaker Change: Yes.

Joey Levin: Digital revenues growing double digits at Meredith.

Speaker Change: Technology.

Speaker Change: Sorry, everybody.

Speaker Change: What are your plans to transition to focus on top of funnel and find ways to further leverage content and drive more engagement and impressions and how do you and do you think that can accelerate revenue over the next few years. Thanks.

Speaker Change: Sales in just a moment you've kind of depend upon it.

Speaker Change: Okay.

Speaker Change: What are your plans to transition to focus on top of funnel and find ways to further leverage content and drive more engagement and impressions and how do you and do you think that can accelerate revenue over the next few years. Thanks, Jason We always look at the business is advancing two key drivers in parallel traffic because youre talking about and monetization quantity and price for traffic there is definitely top of funnel elements.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: So uh huh.

Speaker Change: Sales.

Speaker Change: Whether you heard or not.

Speaker Change: Okay.

Speaker Change: We spent.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Two years, turning around these businesses, which is why I froze everything.

Speaker Change: Thanks, Jason we always look at the business is advancing two key drivers in parallel traffic as youre talking about and monetization quantity and price for traffic there is definitely top of funnel elements.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Turning around these businesses.

Speaker Change: Didn't want to be distracted during this period.

Speaker Change: Required.

Speaker Change: Right.

Speaker Change: Sure.

Speaker Change: Yeah.

Speaker Change: And.

Speaker Change: As you certainly know about our.

Speaker Change:

A few key stripe strategic priorities. One is we talked about in the letter we talked about previously a direct consumer relationships where.

Speaker Change: A few key stripe strategic priorities. One is we talked about in the letter and we talked about previously a direct consumer relationships.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: Certainly know about.

Speaker Change: Somehow.

Speaker Change: Where we engender traffic through new products E Mail and marketing another is continuing to offer premium content behind.

Speaker Change: Decades of spinning off companies or conglomerate, that's an anti conglomerate kind of like that.

Speaker Change: Uh huh.

Speaker Change: Where we engender traffic through new products E Mail and marketing another is continuing to offer premium content.

Speaker Change: Great.

Speaker Change: Okay.

Speaker Change: Behind our industry, leading brands that we optimize for different platform. So think Apple news, Google discovered social media things like that and then the last one which I mentioned earlier decipher plus.

Speaker Change: That concept, which I believe the business is when they get to be of sufficient size, they ought to be spun off and be independent.

Speaker Change: And if I can go on.

Speaker Change: Our industry, leading brands that we optimized for different platforms. So think Apple news, Google discover social media things like that and then the last one which I mentioned earlier as the site for plus.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: There was nothing more further denies it could do.

Speaker Change: Do you have sufficient stock.

Speaker Change: Yeah.

Speaker Change: In our partnership with open AI and also on our own we've mapped comparable third party sites that have the same signal of intent that decipher utilizes from the signals developed on our own properties do target and deliver ads with the launch of decipher plus we will now be offering our advertisers and agencies the ability to increase thereby by using our targeting our platform. We believe this will provide it.

Speaker Change: For Angi, Joey and Jeff running the business.

Speaker Change: Okay.

Speaker Change: In our partnership with <unk> AI and also on our own we've mapped comparable third party sites that have the same signal of intent that decipher utilizes from the signals developed on our own properties to target and deliver ads with the launch of decipher plus we will now be offering our advertisers and agencies the ability to increase thereby by using our targeting off platform. We believe this will provide additional.

Speaker Change: Yeah, I mean not really.

Speaker Change: Complete confidence in them they've done a very good job in getting it to the state we're going to grow.

Speaker Change:

Speaker Change: Hi, Josh.

Speaker Change: Richard.

Speaker Change: No.

Speaker Change: And also Joe had come to me and said I really like a business of my own I'd like my own store and I.

Speaker Change: All right.

Speaker Change: Okay.

Speaker Change: And most of them.

We've come to be it's hard for new licenses.

Speaker Change: I totally respect that and encourage that and we had the vehicle to do so it made no sense for us to keep Angie partially to have its own majority, but still be a public company, either where innerwear out.

Speaker Change: Thanks.

Speaker Change: Alright.

Speaker Change: <unk> value and utility to advertisers, while also opening up new budgets for <unk>. We're ramping this up steadily and believe it can be a large and attractive business on the monetization side of the equation. There are three core elements continuing to be best in class on premium direct sales and Thats all about performance services et cetera for our advertisers. The second is improved and continue to broaden our programmatic efforts to take advantage of the auction market and then continue to innovate.

Speaker Change: Right.

Speaker Change: Value and utility to advertisers, while also opening up new budgets for <unk>. We're ramping this up steadily and believe it can be large and attractive business on the monetization side of the equation. There are three core elements continuing to be best in class on premium direct sales and Thats all about performance services et cetera for our advertisers. The second is improved and continue to broaden our programmatic efforts to take advantage of the auction market and then continue to innovate.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: So.

Speaker Change: Yeah.

Speaker Change: Her out.

Speaker Change: Think that.

Speaker Change: I'd be a public company.

Speaker Change: It is the perfect time to do the spin.

Speaker Change: I think Dan.

Speaker Change: Sure.

Speaker Change: And I'm glad that I think it will happen.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Somebody correct me, but I think it's March 31st since the date correct that it'll happen.

Speaker Change: Sure.

Speaker Change: And lead the market on performance marketing, we felt great about the last quarter with 22% growth keep a chunk of that.

Speaker Change: Good question Mark.

Speaker Change: Lead the market on performance marketing, we felt great about the last quarter with 22% growth keeps chugging.

Speaker Change: Great.

Speaker Change: Bye bye.

Speaker Change: And.

Speaker Change: Drive as much traffic and grow revenue per session in terms of higher growth rates that you asked about our guide is 10% plus digital revenue growth this year and going forward, but we believe in the power of our platform and the incremental growth opportunities. It provides so we will keep pushing.

Speaker Change: <unk> <unk> Andy.

Speaker Change: So as I said before I did freeze everything we were running burning cash in 'twenty two.

Speaker Change: Drive as much traffic and grow revenue per session in terms of higher growth rates that you asked about our guide is 10% plus digital revenue growth this year and going forward, but we believe in the power of our platform and the incremental growth opportunities. It provides so we will keep pushing thank.

Speaker Change: Or.

Speaker Change: Every so often.

Speaker Change: It's freeze everything.

Speaker Change: We've gone from burning cash now having $352 million of cash flow this year.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Thank you Jason Operator next question.

Speaker Change: We purified the company we've sold assets.

Speaker Change: My family.

Speaker Change: Thank you Jason Operator next question.

Speaker Change: Absolutely. Our next question today comes from James <unk> with Jefferies. Please go ahead.

Speaker Change: <unk>.

Speaker Change: This year.

Speaker Change: Our next question today comes from James <unk> with Jefferies. Please go ahead.

Speaker Change: We bought MGM before this period.

Speaker Change: So that area at all.

Speaker Change: Can you break down the results.

Speaker Change: Great I think that can you break down the result.

Speaker Change: I believe that MGM is.

Speaker Change: Yeah.

Speaker Change: Is there any additional detail you can get <unk> results between enterprise and consumer.

Speaker Change: Is there any additional detail you can get divergent results between enterprise and consumer and what's the impact on Gordon.

Speaker Change: Period.

Speaker Change: I mean <unk>.

Speaker Change: I have a problem.

Felipe: It is run like a paddock Felipe watch it has superb management.

Gordon: Second Gordon.

Speaker Change: Okay, Yes, so we broke out carries its own segment. This quarter. This is a business. We bought in 2020 and have spent a lot of time and energy rebuilding the platform and advancing it and we will talk about our further efforts there that estimate business lines, it's consumer business, where individuals and families directly subscribe to care dot com to be matched with caregivers and find homecare and.

Speaker Change: Watch MCM.

Speaker Change: Okay, Yes, so we broke out carries its own segment. This quarter. This is a business. We bought in 2020 and have spent a lot of time and energy rebuilding the platform and advancing it and we will talk about our further efforts there they're estimating business lines, it's consumer business, where individuals and families directly subscribe to care dot com to be matched with caregivers and find home care.

Speaker Change: Traumatic sleep.

Speaker Change: No one will ever duplicate Las Vegas.

Speaker Change: Yeah.

Thanks, Mike.

Speaker Change: Anywhere else in the World, we have 40 plus percent of the market.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Also in the year.

Speaker Change: It cannot be disintermediation by any technology.

Speaker Change: Good morning.

Speaker Change: Yeah.

Mike: There is nothing between it and its customer and serving its customers as you know these hotels run at 90 plus percent capacity.

Speaker Change: Exactly.

Speaker Change: Mike.

Speaker Change: Enterprise business, where companies pay care to provide benefits to their employees. The company's can purchase backup care days that employees can use to get emergency care for their child or senior if needed. They can access specialists to help support different different needs at home with their family and they can also pay for their employees to have full access to the care Dot com marketplace. The last few years of care have seen ups and downs driven by Covid then followed.

Speaker Change: <unk> got some great things.

Speaker Change: And then enterprise business, where companies take care to provide benefits to their employees. The company's can purchase backup care days that employees can use to get emergency care for their childs senior if needed. They can access specialists to help support different different needs at home with their family and they can also pay for their employees to have full access to the care Dot com marketplace. The last few years of care have seen ups and downs driven by Covid then fall.

Speaker Change: Heightened surfing.

Speaker Change: No.

Speaker Change: And the B.

Speaker Change: Hotels.

Speaker Change: Plus percent capacity.

Speaker Change: The future for MCM building, a 10 plus billion dollar resort in Japan, the only gaming resort in the entire country in Osaka, which will open.

Speaker Change: Uh huh.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Plus.

Speaker Change: Okay.

Speaker Change: Great.

Speaker Change: <unk> resort.

Speaker Change: Let's take some years to build it but.

Speaker Change: By post pandemic adjustment the enterprise business experienced a major boost during the pandemic as companies sought to help employees manage care needs with different work arrangements and get them back in the office that leveled out post pandemic right now the enterprise business has a nice tailwind behind it as employer provided support for care needs is increasingly becoming a standard benefit sort of table Stakes in some way similar to.

Speaker Change: Load by post pandemic adjustment the enterprise business experienced a major boost during the pandemic as companies sought to help employees manage care needs with different work arrangements and get them back in the office that leveled out post pandemic right now the enterprise business has a nice tailwind behind it as employer provided support for care needs is increasingly becoming a standard bell benefit sort of table Stakes in some way similar.

Speaker Change: Good luck.

Speaker Change: <unk> is a great flag for MGM is going to plan other flags around the world, it's going to simplify itself over the next period I think it's been complicated a little overly complex for people to understand.

Speaker Change: Great.

Speaker Change: Got it.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Around the world.

Speaker Change: I'm sorry.

Speaker Change: It's wildly undervalued.

Speaker Change: It can be accomplished.

Speaker Change: How are you.

Speaker Change: And I think that it's just it's just.

Speaker Change: I think wildly undervalued.

Speaker Change: Health insurance the enterprise line grew last year and should continue to be a solid performer going forward.

Speaker Change: The health insurance the enterprise line grew last year and should continue to be a solid performer going forward.

Speaker Change: How lucky do you get to be able to have found a company at a time when it was.

Speaker Change: Dan.

Speaker Change: Yeah.

Speaker Change: The real leaders in that category on the consumer side, we saw greater macro tailwind into 'twenty two period than we realized and it frankly massive deficiencies in the core product experience consumer decline last year as we lap challenging comps struggled on marketing and the product lagged on conversion and renewals new CEO, Brad Wilson and his team have been actively working to improve the product and focus on areas like messaging and matching.

Speaker Change: One of the real leaders in that category on the consumer side, we saw a greater macro tailwind into 'twenty two period than we realized and it frankly massive deficiencies in the core product experience consumer declined last year as we lap challenging comps struggled on marketing and the product lagged on conversion and renewals new CEO, Brad Wilson and his team have been actively working to improve the product and are focused on areas like messaging and matching.

Speaker Change: Okay.

Speaker Change: What would be able to okay.

Speaker Change: It was all shut down in Las Vegas, when we came upon it wasn't open were able to buy and advantageously spot.

Speaker Change: Prior to the time, where it was.

Speaker Change: Okay.

Speaker Change: All shut down.

Speaker Change: Came upon it.

Speaker Change: <unk> bought back a lot of it stock continued to do so.

Speaker Change: No.

Speaker Change: And.

Speaker Change: Stop.

Speaker Change: I just couldnt I think the idea of having DBM.

Speaker Change: So.

Speaker Change: And we believe the impact will be seen throughout this year it'll be a slow return to growth given the subscription product and the nature of ramping back up in reversing trends, but we love care Dotcoms positioning as the industry leader with the most care seekers and caregivers in the market. We also know the consumer demand is there. The company recently released its annual state of the industry report and the challenges of finding good child in senior care are only growing as are the costs. So we can improve.

Yeah.

Speaker Change: And we believe the impact will be seen throughout this year it'll be a slow return to growth given the subscription product and the nature of ramping back up in reversing trends, but we love care Dotcoms positioning as the industry leader with the most care seekers and caregivers in the market. We also know the consumer demand is there. The company recently released its annual state of the industry report and the challenges of finding good child in senior care are only growing as are the costs. So we can improve.

And the position of the DD Amazon.

Speaker Change: I think the idea.

Speaker Change: Yeah Dan.

Speaker Change: Outperforming its.

Speaker Change: Uh huh.

Speaker Change: The atmosphere.

Speaker Change: Its competitors.

Speaker Change: The true outperforming.

Speaker Change: Sure.

Speaker Change: I'm going to ask you one more question.

Speaker Change: Thanks, David.

Speaker Change: Sure.

Speaker Change: Did I get to the thing I'm, giving you the status of the traffic digital traffic D D M.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: The thing that we're giving you the status of the traffic.

Speaker Change: Okay.

Speaker Change: Experience and better marketing.

Speaker Change: I think you were halfway halfway through that win which is exactly when we lost you right alright, well good halfway or is really the.

Speaker Change: <unk> experience and better marketing.

Speaker Change: The team can seize on that opportunity and return to growth.

Speaker Change: Okay.

Speaker Change: I think the team can seize on that opportunity and returned to growth and.

Speaker Change: Yeah.

Speaker Change: And then James next question Yeah, Great just one quickly on the corporate costs I'm, just curious what's driving that elevated level in 2005, and then how should we think about that on a normalized run rate going forward yes.

Speaker Change: Okay.

Speaker Change: And then James next question Yeah, Great just one quickly on the corporate costs, just curious what's driving that elevated level in 2005, and then how should we think about that on a normalized run rate going forward yeah.

Speaker Change: Is it halfway.

Speaker Change: Right.

Exactly when the last year.

Speaker Change: First of it so let me go from a halfway back to that next halfway good.

Speaker Change: Okay.

Speaker Change: Not really.

Speaker Change: The worst of it so let me.

Speaker Change: Four six quarters, we went down 713, 14 and 15, 10%.

Speaker Change: Obviously, you're a much higher number this year, there's a number of nonrecurring things going on in corporate this year first of all are associated with.

Speaker Change: We guided obviously, you're a much higher number this year, there's a number of nonrecurring things going on in corporate this year first our associated with separation from IAC and movement to Angi six year consulting agreement will be recognized at the time of the angi spin all at once and extra costs associated with the angi spend tax legal filing et cetera.

Speaker Change: Sure.

Speaker Change: For next quarter.

Speaker Change: Beginning in the fourth quarter were 23, plus nine fourth quarter first quarter 13, and 12% then 60% in the fourth quarter, just announced 10% I mean, that's an incredible reversal in the medium is as is.

Speaker Change: Okay.

Speaker Change: Separation from IAC and movement to Angi six year consulting agreement will be recognized at the time of the spin all at once and extra costs associated with the angi spend tax legal filing et cetera. Additionally, we have legacy matters that are hitting the P&L. This year, such as ongoing litigation relating to the match group separation that will drive expenses. This year and then finally is talking about.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Hi.

Speaker Change: Okay.

Speaker Change: Well for <unk>.

I'm proud of them.

Speaker Change: I'm here.

Speaker Change: So.

Speaker Change: That's a good accretable reversal in P M.

Speaker Change: Actually we have legacy matters that are hitting the P&L. This year, such as ongoing litigation relating to the match group separation that will drive expenses. This year and it finally has talked about in the <unk>.

Speaker Change: It is in it.

Speaker Change: Okay.

Speaker Change: It has to go through this difficult integration and transition also hit by the AD market itself, having a decline but.

Speaker Change: [laughter] right.

Speaker Change: In the prior quarter, we have taken actions to streamline cost of corporate and Thats created onetime expenses. This year I would also flag when you look at 'twenty for the run rate costs were artificially masked in the reported number was lower due to a $10 million out of period insurance payment that we received in 'twenty four so in sum we are incurring roughly $50 million.

Speaker Change: Sure.

Speaker Change: Hi.

Speaker Change: Prior quarter, we have to.

Speaker Change: Alright.

Speaker Change: Taken actions to streamline cost of corporate and <unk>.

Speaker Change: Okay.

Speaker Change: Oh Oh.

Speaker Change: It is an excellent asset for us.

Speaker Change: It has created onetime expenses. This year I would also flag when you look at 'twenty for the run rate costs were artificially masked in the reported number was lower due to a $10 million out of period insurance payment that we received in 2004. So in sum we are incurring roughly $50 million.

Speaker Change: All right.

Speaker Change: Uh huh.

Speaker Change: Get the bedrock right now of I C D.

Speaker Change: Right right.

Speaker Change: D D M an MTM plus we have.

Speaker Change: Yeah.

Speaker Change: Right now.

Speaker Change: Have.

Speaker Change: Obviously.

Speaker Change: <unk> and MTS.

Speaker Change: Non recurring cost this year that will not be in the cost structure in 2006, and beyond and will provide more clarity on that as we move forward.

Speaker Change: We have oh.

Speaker Change: Nonrecurring costs this year that will not be in the cost structure in 2000, and beyond and will provide more clarity on that as we move forward.

Speaker Change: You all know our balance sheet is very strong.

Speaker Change: Okay.

Speaker Change: Strong.

Speaker Change: As I said earlier.

Speaker Change: Our balance sheet metrics.

Speaker Change: Thanks, Jami operator next question absolutely.

Speaker Change: Thanks, James Operator next question.

Speaker Change: Absolutely. Our next question today comes from Ross Sandler of Barclays. Please go ahead.

Speaker Change: I froze everything it's mean that we're not buying stock back during this period.

Speaker Change: Right.

Speaker Change: Our next question today comes from Ross Sandler of Barclays. Please go ahead.

Speaker Change: Uh huh.

Ross Sandler: Great very thing for hopping on the call here I guess a question for you is how involved do you want to be in the day to day at IAC and how do you feel about the management structure at the top with our with Joey moving over to AMG and then Chris just a follow up on the opportunity for decipher plus in non owned and operated inventory could that be material in 'twenty, five and what kind of impact.

Speaker Change: It's everything.

Speaker Change: Because I didn't think we deserve to until we've gotten our businesses in shape and Cochrane confidence about our business not going to talk about what we will do but I will talk about one thing which is the fact that I did stop it that's stopping has ended.

Ross Sandler: Great very things were on the call here I guess a question for you is how involved you want to be in the day to day at IAC and how do you feel about the management structure at the top with with Joey moving over to Andrew and then Chris just a follow up on the opportunity for <unk> plus in non owned and operated inventory because that would be material in 'twenty, five and what kind of impact.

Speaker Change: Alright.

Speaker Change: In this period.

Speaker Change: Right.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: I talked about.

Speaker Change: Got that.

Speaker Change: I did.

Speaker Change: And I'm not going to foresee things because what I've just said I hope it is fairly obvious but.

Speaker Change: I cannot pinpoint.

Speaker Change: Could that have on profitability.

Speaker Change: Cause.

Speaker Change: Could that have on profitability.

Speaker Change: Thanks.

Speaker Change: Alright, I'll start quickly I have great confidence in my colleagues in terms of the day to day.

Ross Sandler: <unk>.

Speaker Change: I Hope you understand the reason I did stop it and wanted us to freeze and only pay attention to our businesses and getting them straightened out getting the whole corporate structure straightened out.

Speaker Change: Uh huh.

Ross Sandler: Alright, I'll start quickly Oh, I have great confidence in my colleagues.

Speaker Change: Yeah.

Speaker Change: On top of it.

Speaker Change: Great.

Ross Sandler: In terms of the day to day, helping.

And Russell a broker to help me with that.

Speaker Change: Got it.

Ross Sandler: And Russell a broker to help me with that.

Speaker Change: I wanted to ask sort of free trade.

Speaker Change: But we really have we have.

Speaker Change: Ladies and gentlemen.

Ross Sandler: We really have.

Speaker Change: <unk> operating business, which is Super management does not need us day to day.

Speaker Change: Multiple times during that straightened out.

Ross Sandler: One operating business was superb management that is not in USA today.

Speaker Change: Now in a situation where that phase has finished I think we are freshman bye bye bye. These recently announced events as far as what are we going to do with our capital there.

Speaker Change: And.

Speaker Change: I'm sorry.

Speaker Change: Again I think this is a group that's up by the nature of the change that all of these things I think it was up is eager and I'm going to do what we thought hopefully stimulates process, dropping a little crazy and and and and.

Ross Sandler: And.

Ross Sandler: And again I think this is a group that took by the nature of the change that all of these things I think it was up.

Speaker Change: Now turning to our restaurant.

Speaker Change: Bye bye.

Speaker Change: Correct.

Ross Sandler: Eager and I'm going to do what I've always thought hopefully stimulate process throughout the globe.

Speaker Change: Our capital amount.

Speaker Change: There are areas I think of D D M invest in.

Ross Sandler: And and and.

Speaker Change: Alright.

Speaker Change: On top of that.

Speaker Change: One of the things that I think reported which obviously, obviously I mean, it's obviously too much but I don't know why but whatever anyway, obviously all.

Ross Sandler: And that's one of the things that I think reporting, which obviously, obviously, it's obviously too much to say on the walk or whatever anyway, obviously.

Speaker Change: There are areas like.

Speaker Change: There are also all sorts of opportunities whether it's buy build the history of this company has been God knows.

Speaker Change: No that's good.

Speaker Change: Okay.

Speaker Change: Right.

Speaker Change: Capital allocation.

Speaker Change: Three of them.

Ross Sandler: Capital allocation and and and.

Speaker Change: And and seeking out new opportunities.

Speaker Change: I don't know that there is a history of it.

Speaker Change: <unk> starts of buys of businesses.

Ross Sandler: And seeking out new opportunities.

Speaker Change: Oh God.

Speaker Change: Yes.

Ross Sandler: Yes.

Thank you and then Ross decipher plus we're excited about we think it can be a powerful growth driver and it really increases the company's access to two types of inventory that advertisers want the first is lookalike premium inventory in our core categories food health home, others, where we see consumer intent at scale. So <unk> is often limited by inventory and our own premium pricing on.

Speaker Change: All right.

Speaker Change: And that landscape, while I think you know the internet field is fairly covered but.

Ross Sandler: Thank you and then Ross decipher plus we're excited about we think it can be a powerful growth driver. It really increases the company's access to two types of inventory that advertisers want the first is lookalike premium inventory in our core categories food health home, others, where we see consumer intent at scale, So <unk>, often limited by inventory and our own premium pricing on.

Speaker Change: Okay.

Speaker Change: Uh huh.

Speaker Change: Our Nashville.

Speaker Change: Hello.

Speaker Change: We're we're going to look at anything that talks walks or whatever and we're not anxious. We'll we'll do this as we've done it before tell us a good idea.

Speaker Change: Okay.

Speaker Change: Oh come on.

Speaker Change: We're growing.

Speaker Change: Okay.

Speaker Change: Uh huh.

Speaker Change: And we're not.

Speaker Change: Highly performing inventory in these categories and we can do use decipher plus to identify similar performing inventory on those third party sites and by efficiently. This inventory today is being monetized on programmatic platforms at lower rates.

Speaker Change: Sure.

Speaker Change: And if we think it makes sense, we'll go forward with it and we've at least our history has shown.

Ross Sandler: Highly performing inventory in these categories and we can do use decipher plus to identify similar performing inventory on those third party sites and by efficiently. This inventory today is being monetized on programmatic platforms at lower rates were at current buyers lack the powerful intent driven signal that decipher provides tdm. The second set of inventory is undervalued, yet performing impressions in our category.

Speaker Change: Thank you.

Speaker Change: Hello, everyone.

Speaker Change: Yeah.

Speaker Change: It makes sense.

Speaker Change: Okay.

Speaker Change: That in doing that.

Speaker Change: Thank God that these.

Speaker Change: We built assets and value and that's what me and Chris.

Speaker Change: Our history.

Speaker Change: Current buyers lack the powerful intent driven signal that decipher provides tdm. The second set of inventory is undervalued, yet performing impressions in our categories.

Speaker Change: Oh Wow.

Yeah.

Russell: Russell <unk>, our head of M&A are dedicating themselves to do in addition to.

Speaker Change: Mark.

Speaker Change: Hey.

Speaker Change: Oh I'm sorry.

Speaker Change: Sorry.

Speaker Change: We have core advertisers, who are being priced out of inventory because of the performance and CPI is so high.

Ross Sandler: <unk>.

Speaker Change: Our dedicated.

Ross Sandler: So we have core advertisers, who are being priced out of <unk> inventory because of the performance and CPI is so high.

Work will continue to do with.

Speaker Change: Partners.

Mark: Our principal asset of D D M and our involvement with MGM. So okay I hope still with you after having out.

Speaker Change: Got.

Speaker Change: Got that.

Speaker Change: And they're looking for some lower price volumes to be included in their buys we can do that and still have the decipher performance guarantees so think about it.

Ross Sandler: And they are looking for some lower price volume to be included in their buys we can do that and still have the decipher performance guarantees. So think about it is as aiding both elements of the price curve because of these factors. We believe we can substantially increase our supply of impressions and do it at attractive margins, while providing our.

Speaker Change: Hey art.

Speaker Change: Okay.

Speaker Change: And orange.

Speaker Change: Okay.

Speaker Change: Almost done this twice.

Speaker Change: Aiding both elements of the price curve because of these factors. We believe we can substantially increase our supply of impressions and do it at attractive margins, while providing our.

Speaker Change: I'm with you.

Barry: That was perfect you answered and you answered John's question, while there Barry Thank you.

Speaker Change: Hey, Josh.

Speaker Change: And you answered John's question.

Speaker Change: Thank you John Operator next question.

Speaker Change: The advertisers with exceptional performance, we're ramping this offering up across 25 selling it into accounts and believe it can grow rapidly on a revenue basis on the incremental margin point.

Speaker Change: Thanks next question.

Ross Sandler: The advertisers with exceptional performance, we're ramping this offering up across 25 selling it into accounts and believe it can grow rapidly on a revenue basis on the incremental margin point, we said, we're targeting 40 plus.

Speaker Change: Absolutely. Our next question comes from Eric Sheridan with Goldman Sachs. Please go ahead.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Our next question comes from.

John Blackledge: Thank you so much for taking the question maybe two if I could first for the AMG team understood on the three pillar dynamic with respect to 25 going into 'twenty six wanted to if we get a little bit more color on what investors should expect in terms of some of the headwinds turning into potential tailwind for the business that we should be monitoring from the outs.

Speaker Change: We said, we're targeting 40 plus.

Speaker Change: As you can see.

Speaker Change: Digital incremental EBITDA adjusted EBITDA margins, we believe that strikes the right balance between investment in products and content on the one hand and profit growth in the other and decipher plus we believe will be supportive of those types of incremental margins.

Speaker Change: Do you like.

Ross Sandler: Digital incremental EBITDA margins EBITDA margins, we believe that strikes the right balance between investment in products and content on the one hand and profit growth in the other and decipher plus we believe will be supportive of those types of incremental margins.

Speaker Change: Thanks.

Speaker Change: Taking the question.

Speaker Change: Excuse me.

Speaker Change: Mike.

Speaker Change: Okay.

Ross Sandler: Thank you Ross operator next question.

Speaker Change: Cash wanted obviously.

Ross Sandler: Thank you Ross operator next question.

Speaker Change: Sure.

Speaker Change: Absolutely. Our next question today comes from Justin Patterson Keybanc. Please go ahead.

Speaker Change: Absolutely. Our next question today comes from Justin Patterson I keep mind. Please go ahead.

Speaker Change: Sure.

Speaker Change: Side in terms of that transformation of coal across those three pillars, and then specifically with the transition to a single product and platform how to think about some of the integration dynamics are moving towards that and what it might mean for sort of improving the quality overall on the platform that would be number one and then Barry maybe following up on your.

Speaker Change: Great. Thank you and good morning, I wanted to hit on Jason Scott that question, a different way what do you see as the key steps to grow direct traffic more than onex the middleman.

Speaker Change: Okay.

Speaker Change: Great. Thank you good morning, I wanted to hear on Jason's question, a different way, we see it the key steps to grow direct traffic more eliminate the middleman.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: First street.

Speaker Change: Given these initiatives how much the financial profile of the business differ versus what we see today. Thank you.

Speaker Change: So quickly.

Speaker Change: Given these initiatives highlight the financial profile of the business differ versus what we see today. Thank you.

Speaker Change: Okay.

Speaker Change: So think about that.

Speaker Change: Thanks, Thanks, Jason.

Speaker Change: That.

Speaker Change: Richard.

Speaker Change: Thanks, Thanks, Jason.

Speaker Change: So the direct to consumer effort is one that Neil and team have been driving for a while and it's an offensive plan.

Speaker Change: Uh huh.

Speaker Change: So the direct to consumer effort is one that Neil and team have been driving for a while and it's an offensive plan.

Speaker Change: That was one.

Speaker Change: Hum.

Speaker Change: We know our brands are exceptional we know they are trusted and we know they are sought after by consumers. We've also talked for a few quarters about our efforts to expand our content to as many platforms as possible to engage our customers and grow our touch points with consumers to be able to interact with a directly some of that has been through E Mail marketing video social media and also live events, which have worked very well from.

Speaker Change: <unk> are great to have the opportunity to speak.

Speaker Change: We know our brands are exceptional we know their trusted and we know they are sought after by consumers. We've also talked for a few quarters about our efforts to expand our content to as many platforms as possible to engage our customers and grow our touch points with consumers to be able to interact with a directly some of that has been through E Mail marketing video social media and also live events, which have worked very well from.

Speaker Change: One.

Speaker Change: IEC has changed over the years in terms of taking stakes in companies and continued rubbing operating businesses. When you think about the framework you just laid out about investing for the long term and IAC, how should we be thinking about what your priorities are with respect to operating businesses as opposed to maybe investing in businesses like we saw examples like MGM and thorough thank you.

Speaker Change: I'm sorry.

Speaker Change: Thanks.

Speaker Change: Yes.

Speaker Change: Hey, guys.

Speaker Change: Operator.

Speaker Change: No.

Speaker Change: Got it.

Speaker Change: Excellent.

Speaker Change: Thank you.

Speaker Change: Both engagement and monetization perspective. This year, we're looking to continue to invest in these areas and also rollout new products initially centered on people and our industry, leading food brands to engage consumers directly and then further enhanced loyalty, which drives even deeper engagement and repeat engagement these products, which will be providing more information as we go take advantage of video personalization utility.

Speaker Change: Already.

Speaker Change: Both engagement and monetization perspective. This year, we're looking to continue to invest in these areas and also rollout new products initially centered on people and our industry, leading food brands to engage consumers directly and then further enhanced loyalty, which drives even deeper engagement and repeat engagement these products, which will be providing more information as we go take advantage of video personalization utility.

Speaker Change: Thanks, Josh.

Speaker Change: In businesses like we saw examples like MGM rope.

Speaker Change: Joe.

Speaker Change: With your first question, Eric I'm going to try and sum up a little bit what I said before which is we have been progressively improving the product.

Speaker Change: Okay.

Speaker Change: Eric.

Speaker Change: Sure.

Speaker Change: Yeah.

Speaker Change: And building our proprietary traffic back to growth.

Speaker Change: Yeah.

Speaker Change: Exactly.

Speaker Change: And our breadth of content and storytelling and we think we're going to offer experiences in these categories that no. One else is today with respect to financial impact.

Speaker Change: Our SCM proprietary RCM has returned to growth, we expect our proprietary growth to move and improve through the year and get to growth in 2026.

Speaker Change: Yeah.

Speaker Change: And our breadth of content and storytelling and we think we're going to offer experiences in categories that no. One else is today with respect to the financial impact.

Speaker Change: Yes.

Speaker Change: Right.

Speaker Change: Great.

Speaker Change: Alright, and your growth.

Speaker Change: Monetization models are similar and so we don't do them well, we view them as advancing and not dilutive.

Speaker Change: Consensus choices taken.

Speaker Change: Monetization models are similar and so we don't need them, we get them is advancing and not dilutive.

Speaker Change: Again, one of choice.

Speaker Change: Big chunk out of our third party business, but that business is now going to be stable going forward. So the two together get us to growth going forward on the pro side, our retention has improved materially.

Speaker Change: Excellent.

Speaker Change: To our to our overall financial efforts at <unk>.

To our to our overall financial efforts at <unk>.

Speaker Change: The big toe.

Speaker Change: Thanks, Jeff and Jim another question.

Speaker Change: Already business.

unknown: Thanks, Jeff and Jim another question.

Speaker Change: Sorry for going forward.

Thank you okay. Thank you operator next question.

Speaker Change: Okay. Thank you operator next question.

Speaker Change: Right.

Speaker Change: Absolutely. Our next question comes from Youssef Squali with Securities. Please go ahead.

Speaker Change: Absolutely. Our next question comes from Youssef Squali with Securities. Please go ahead.

Speaker Change: Pro side.

Speaker Change: We're literally bringing 700 basis points more of the pros active in 'twenty, we brought 700 basis points floor of the pros active in 2023 into 2024 compared to what we brought from 'twenty two into 'twenty three.

Speaker Change: Yes.

Speaker Change: Thank you one question for Chris and one for Barry. Please so back to the sniper now that you've been granted in the Hi Tech and there can you maybe talk about the impact on <unk>.

Speaker Change: Yes.

Speaker Change: Thank you one question for Chris and one for Barry. Please so back to the sniper now that you've been granted.

Speaker Change: Literally ringing.

Speaker Change: Brian.

Speaker Change: Frozen.

Speaker Change: And there can you maybe talk about the impact on <unk>.

Speaker Change: Okay.

Speaker Change: It seemed like conversion at pricing et cetera, and how much of that is left.

Speaker Change: Okay.

Speaker Change: Or.

Speaker Change: It seemed like conversion at pricing et cetera, and how much of that is left.

Speaker Change: Yes.

Speaker Change: I'm not talking about soccer clusters.

Speaker Change: Great.

Speaker Change: Sure.

While our acquisition is coming down and thus, we're not netting network growth yet those forces will cross going forward, particularly with the incremental changes in customer experience. So we expect the pro network to inflect to growth again as well so the two of those things are combined.

I'm not talking about soccer plus just a second one on the owned and operated and then Barry.

Barry Diller: And then Barry.

Speaker Change: Right.

Speaker Change: Yeah.

Barry Diller: I guess now that I know that LNG is going to be spun off how do you see IC, who deal with MGM posted out does that compel you to want to do more in that category.

Speaker Change: Our acquisition.

Speaker Change: I guess now that I know that LNG is going to be spun off how do you see ICT MGM posted that does that compel you to want to do more in that category.

Speaker Change: No we're not.

Speaker Change: We're not getting.

Speaker Change: Yes.

Speaker Change: Cross border.

Speaker Change: Thank you.

Barry Diller: Have there been a bunch of news coming out that I thought our JV partner <unk>. Since you have had some changes at the top so just how do you think about that opportunity.

Speaker Change: There been a bunch of news coming out that Jim, but I think that our JV partner <unk>. Since you have had some changes at the top so just how do you think about that opportunity.

Speaker Change: We expect to eat.

Speaker Change: Thanks.

Speaker Change: And that will take our trajectory back to growth in 2026 in terms of single pro product Theres a couple of pieces to it one is.

Speaker Change: Okay.

Speaker Change: Okay.

Barry Diller: You seem to have gotten some flexibility in your corporate structure. Thank you.

Speaker Change: Good night.

Speaker Change: You seem to have gotten some flexibility in your corporate structure. Thank you.

Speaker Change: Okay.

Speaker Change: Take care.

Speaker Change: Peter.

Barry Diller: Do you want go first.

Speaker Change: One in terms of single probe.

Speaker Change: Do you want go first.

Speaker Change: Moving all of our pros to a single platform with a single product and pricing structure is going to allow us to run our operations far more efficiently reduce time to market reduce overhead and make our acquisition and marketing more efficient.

Speaker Change: Yes sure theatres.

Speaker Change: Theaters, what I said before which is I think MGM is in excellent shape excellent operating results.

Speaker Change: Yes, sure a theater.

Speaker Change: Last one.

Speaker Change: Theaters, what I said before which is I think MGM is in excellent shape excellent operating results.

Speaker Change: All of our plays.

Speaker Change: Operating where product loss ratio.

Speaker Change: And superb management team.

Speaker Change: And superb management team.

Speaker Change: Thank you Mark.

Speaker Change: Andrew I'm going to continue to Opportunistically.

Speaker Change: Andrew I'm going to continue to.

Speaker Change: Reduce time to market reduced so.

Speaker Change: Secondly, it's going to as I said before sunset some pricing structures, it's going to pave the way to grow our revenue per monetized transaction in the second half of the year, which will be another lift in our incremental progress back to growth in terms of integration risk. We've now done five migrations of a comparable size in Europe, we're pretty.

Speaker Change: Opportunistically certainly has been buying back stock.

Speaker Change: Opportunistically buying.

Speaker Change: Okay.

Speaker Change: Buying back stock.

Speaker Change: Knowing how undervalued is which would increase our ownership and increase our ownership as I said before I consider it to be a forever asset.

Speaker Change: Right right exactly.

Speaker Change: Knowing how undervalued is which would increase our ownership we may increase our ownership as I said before I consider it to be a forever asset.

Speaker Change: And pricing structures.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: This of course, possibly could change, but I can't fathom that.

Speaker Change: Yeah.

Speaker Change: This is of course possible I can't talk about and I think it's in.

Speaker Change: Sure.

Speaker Change: And I think it's in it.

Speaker Change: Okay.

Speaker Change: No no.

Speaker Change: Well as I said earlier, it's a.

Speaker Change: It also.

Speaker Change: In terms of integration risk.

Speaker Change: As I said earlier.

Speaker Change: We will see you.

Speaker Change: I think we'll see it be something.

Speaker Change: Season that this will likely take a little disruption, but we'll also get back pros from the old product. We do it every time, we do it in Europe.

Speaker Change: Great.

Speaker Change: Something that is somewhat less complex going forward.

Speaker Change: Comparable.

Speaker Change: That is somewhat less complex going forward.

Speaker Change: Hum.

Speaker Change: But oh.

Speaker Change: But oh.

Speaker Change: It will likely take a little bit.

Speaker Change: I think it's it's ours is ever going away.

Speaker Change: Thank you.

Speaker Change: Yes.

Speaker Change: If you've ever gone away.

Speaker Change: Thank you Abby and then you said with respect to decipher.

Speaker Change: Sure.

Speaker Change: From the old product.

Barry: This is this is basic operations for us and so we expect of course, there to be a little noise in the system, but we actually expect to come out better and move forward well there I think I covered all the pieces of your question I think that's very well said, let's go to Barry.

Speaker Change: Thank you Abby and then you said with respect to decipher.

Speaker Change: Basic operation for Us.

Speaker Change: We talked before about the case studies.

Speaker Change: We've talked before about the case studies.

Speaker Change: Thanks.

Speaker Change: We've executed with our advertisers and we have over 30 case studies that prove it out what's interesting is.

Speaker Change: We've executed with our advertisers and we have over 30 case studies that prove it out what's interesting is we target or optimize different metrics.

Speaker Change: And so we've seen that.

Speaker Change: Of course there.

Speaker Change: So the system.

Speaker Change: We target or optimize different metrics.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: I think I covered all the pieces, yet that's very well said.

Speaker Change: On what the advertisers' goals are giving campaign and as you know decipher today is all premium direct campaigns. So for some for some advertisers thats click through for others. Its efficiency for others. It's actually sales conversion and then some in store visits we have we are quite confident we've outperformed in all of these case studies of cookies.

Speaker Change: Tom.

Speaker Change: On what the advertisers bowls are giving campaign and as you know the cycle today is all premium direct campaigns. So for some for some advertisers thats click through for others its efficiency for others, It's actually sales conversion and then some.

Speaker Change: As far as operating businesses.

Speaker Change: Okay.

Speaker Change: It will take it any way it comes.

Tom.

Speaker Change: I leave.

Speaker Change: Hi.

Speaker Change: But anyways.

Speaker Change: Forever.

Speaker Change: Aye.

Speaker Change: Once the business gets up to.

Speaker Change: Understood.

Speaker Change: To sufficient scale it ought to be spun out and be independent and on its own.

Speaker Change: In store visits we have.

Speaker Change: Luke.

Speaker Change: Oh.

Speaker Change: On the house.

Speaker Change: Confident we've outperformed in all of these case studies are cookies, and then blow away non cookie based solutions. We've seen the we've talked about this last quarter that.

Speaker Change: Okay.

Speaker Change:

Speaker Change: Then blow away non cookie based solutions, we've seen the we've talked about this last quarter.

Speaker Change: I think companies that have multiple operating businesses and trying to operate each of them I think they do so.

Speaker Change: Yeah.

Speaker Change: Commentary.

Speaker Change:

Speaker Change: Campaigns that orders that include decipher our overhead provide over half of our direct digital revenue and DDI and that trend has continued as we said last quarter that.

Speaker Change: Perfect.

Speaker Change: Campaigns that orders that include decipher our overhead provide over half of the direct digital revenue and DDI and that trend has continued as we said last quarter that.

Speaker Change: No.

Speaker Change: Less advantageously.

Speaker Change: I appreciate it.

Speaker Change: So.

Speaker Change: Then they would if those companies were.

Speaker Change: Okay.

Speaker Change: H.

Speaker Change: Standing on their own.

Speaker Change: Orders with the type of our over 50% larger than orders without the safer and that trend will continue it is an important feature and an overall direct advertising campaign. We also are thrilled to have been able to integrate open AI technology, we can utilize video and images and our targeting and our scoring for even better contextual performance and.

Speaker Change: On their own.

Speaker Change: And and and.

Speaker Change: Orders with a safer or over 50% larger than orders without the safer and that trend will continue it is an important feature and an overall direct advertising campaign. We also are thrilled to have been able to integrate open AI technology, we can utilize video and images and our targeting and our scoring for even better contextual performance and we.

Speaker Change: And our.

Speaker Change: Zero.

Speaker Change: And.

Speaker Change: As we look into the into the future possibilities.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: <unk>.

Speaker Change: I'm sure they'll be operating businesses.

Speaker Change: Okay.

Speaker Change: That's true.

Speaker Change: We will operate for a period of time, but actually operate them for too long I think probably they will have to deal then we will dispose of them.

Speaker Change: Uh huh.

Speaker Change: Sure.

Speaker Change: Right.

Speaker Change: Uh huh.

Speaker Change: We expect to continue on a dance that you said on your question on that and again this is going out.

Speaker Change: So.

Speaker Change: To continue on a dance that you said on.

Speaker Change: Succeed we will spin them out.

For too long I think.

Speaker Change: Okay.

Speaker Change: On your question on that MGM is throwing out the.

Speaker Change: We will dispose of them. Thank.

Speaker Change: Thank you. Thank you operator next question.

Speaker Change: You saw the announcement with Amgen, we couldn't do ago nice really nice momentum in the business that I think we were talking about on the product side for a while they talked about how that materializes into the business.

Speaker Change: Thank you.

Speaker Change: The announcement with Amgen to ago.

Speaker Change: Hum.

Speaker Change: Operator next question. Thank you.

Speaker Change: Nice really nice momentum in the business that I think we were talking about on the product side for a while they talk about how that materializes into the business.

Speaker Change: Absolutely. The next question comes from Jason <unk> with Oppenheimer. Please go ahead.

Speaker Change: Operator.

Speaker Change: Right.

Speaker Change: And MGM and bet MGM, both vague relationship with ethane, both the CEO and the chair chairperson levels, though David and we wouldn't expect anything to change that thank you.

Speaker Change: Hey, Thanks for taking my questions.

Speaker Change: Question comes from James.

And MGM that MGM, both of a great ratio with entering both the CEO and Mr. Chairperson levels, though David and so we wouldn't expect anything to change there. Thank you.

Speaker Change: Thanks, Doug.

Speaker Change: Two question.

Speaker Change: Yes.

Speaker Change: Maybe this is the first full bearing and the second is a follow up for Joe and Chris.

Speaker Change: Thank you.

Speaker Change: No.

Speaker Change: Okay.

Speaker Change: Maybe for Barry.

Speaker Change: Operator next question.

Maybe I'll ask in that order. So just Barry I think one of the questions. We keep getting from investors would would be how would you characterize it.

Speaker Change: Operator next question.

Our next question today comes from Nick Jones of citizens JMP. Please go ahead.

Speaker Change: Okay.

Speaker Change: Our next question today comes from Nick Jones at citizens JMP. Please go ahead.

Speaker Change:

Speaker Change: Great. Thanks for taking my question I guess, just a couple on.

Speaker Change: Gary.

Nick Jones: Great. Thanks for taking my question I guess, just a couple on.

Speaker Change: Right.

Speaker Change: <unk>.

Speaker Change: Hi.

Speaker Change: Learnings from AI.

Speaker Change: Kind of post now the angi is spending you're poised to lean more into multi year bet.

Speaker Change: Learnings from AI Andy.

Speaker Change: Okay.

Speaker Change: And just focus on kind of improving your questioning and matching and then touch on your father's increased focus on kind of <unk> AI.

Speaker Change: Right right.

Speaker Change: And you focus on kind of improving the questioning and matching and then touch on the thought there is increased focus on kind of <unk> AI.

Speaker Change: Okay.

Speaker Change: Danny.

Speaker Change: Or are you more focused on realizing the Carlsbad and returning kind of the maximum amount of kind of cash and value to shareholders. So just let's start with that question and then I have just a follow up on it.

Speaker Change: Alright.

Speaker Change: Hey.

Speaker Change: As you think about the kind of angi playbook going forward is that going to play a role in kind of improving matching and I asked the same question for Terry Thanks.

Speaker Change: Bad.

Speaker Change: As you think about the kind of angi playbook going forward is that going to play a role in kind of improving matching and I guess the same question for Terry. Thanks.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: I would.

Speaker Change: Yeah I'll start.

Speaker Change: Yes.

Speaker Change: Donna.

Speaker Change: Yeah, I'll start with our view of it yes, unequivocally asking me to talk about that a little bit in his letter I think I'd say for a while and we're not sure whether this happens or not but is it for a while that will be one of the best things that could happen to Angie Angie user interface would be if consumers adopt a conversational UI, obviously youre doing that is to some of our significant extent with GBT and similar but that the ideal UI for us to get.

Speaker Change: Yes, unequivocally that Jeff talked about that a little bit in his letter I think I've said for a while and we're not sure whether this happens or not but is it for a while that they wanted to.

Speaker Change: Thanks.

Speaker Change: Let's start with that question and then I have just a follow up on that.

Speaker Change: Well.

Speaker Change: Okay.

Speaker Change: You'll see what we do in the next period as I say I stopped us from from using our capital to return it to shareholders for the reasons I said before.

Speaker Change: Okay.

Speaker Change: Things that could happen to Angie Angie user interface would be if consumers adopt a conversational UI and obviously they are doing that is to some of our significant extent with GBT and similar but.

Speaker Change: Oh.

Speaker Change: Okay.

Speaker Change: No doubt.

Speaker Change: Okay.

Speaker Change: Got it.

Speaker Change: Capital.

Speaker Change: That period has ended.

Speaker Change: The ideal UI for us to get the right information from consumers about job and of course, the better for me to get a job of better managing we can do and then on top of that AI technology for <unk>.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: The right information from consumers about a job and of course, the better information yet about the job of better managing we can do and then on top of that AI is a better technology for <unk>.

Speaker Change: And so it's always going to be a balance.

Speaker Change: Oh.

Speaker Change: Okay.

Speaker Change: You take the first opportunity.

Speaker Change: And so I was always going to be a balance.

Speaker Change: Starting data to allow for better matching but if we can get that conversational UI adopted broadly and consumers are comfortable with that I think that that is.

Speaker Change: Investing in your current business I think there's a real opportunity.

Speaker Change: Sorting data to allow for better matching but we can get that conversational UI adopted broadly and consumers are comfortable with that I think that that is.

Speaker Change: Alright.

Speaker Change: Yeah.

Speaker Change: Inside D DM and all sorts of areas and I think that May take some capital I think also again, we have clean slate, we don't have any drag on us we don't have any problem. So to speak all of that stuff has been solved so all of our attention could go to.

Speaker Change: Investing.

Speaker Change: Net very positive for angi and the user experience.

Speaker Change: Yes.

Speaker Change: Net very positive for angi, and the user experience and I would just say effectively that becomes agenda right.

Speaker Change: Areas.

Speaker Change: Effectively that becomes agenda.

Speaker Change: So yeah I do have some capital.

Speaker Change: We are effectively starting of the agent we're matching with the pro and so that's where we see this going as we leverage those tools and technology.

Speaker Change: We are effectively starting of the agent we're matching with the pro and so that's where we see this going as we leverage those tools and technology and I think I'll, just say broadly across the portfolio. We said this for a while where you have proprietary datasets.

Speaker Change: Also.

Speaker Change: Okay.

Speaker Change: Broadly across the portfolio, we said this for a while.

Speaker Change: Do you have any.

Speaker Change: We don't have any.

Speaker Change: Where you have proprietary datasets the application of AI optimization and analysis.

Speaker Change: Alright.

Speaker Change: Got it.

Speaker Change: <unk> of AI optimization and analysis, you'll have enhanced things like matching on our marketplaces be at Angi care Vivien elsewhere, and we are seeing those applications and then secondly, onboarding sign ups service request generation nurse infer.

Speaker Change: Seeking new opportunities and they always come if you're not in patient and I'm not patient. So we will see.

Speaker Change: Okay understood.

Speaker Change: It will enhance things like matching on our marketplaces be at Angi care Vivien elsewhere, and we are seeing is those applications and then secondly, onboarding sign ups service request generation nurse.

Speaker Change: Okay.

Speaker Change: New.

Speaker Change: I can say.

Speaker Change: Carl.

Speaker Change: I'm not.

Speaker Change: Clearly a mix between returning.

Speaker Change: Nick.

Speaker Change: Yeah.

Speaker Change: Capital to shareholders and seeking opportunity.

Speaker Change: Information it Vivian all of these these open information entry activities as well as classic customer service functions, you can see where the puck is going do to VII.

Speaker Change: Sure.

Speaker Change: Information it Vivian all of these these open information entry activities as well as classic customer service functions, you can see where the puck is going do to VII opportunities.

Speaker Change: Yeah.

Speaker Change: Capital to shareholders.

Joey Chris: Thank you. Thank you and then Joey Chris now that digital revenue is growing double digits at Meredith.

Speaker Change: Yes.

Speaker Change: Adam.

Speaker Change: Thank you.

Speaker Change: <unk>.

Speaker Change: Earnings now.

Speaker Change: And another question, Okay, operator last night.

Speaker Change: Digital what are your plans to transition.

Speaker Change: And another question, Okay, operator last question.

Yes.

Speaker Change: Okay.

Speaker Change: And our last question today comes from Tom Champion with Piper Sandler. Please go ahead.

Speaker Change: On top of funnel and find ways to further leverage content and drive more engagement and impression and how do you and do you think that can accelerate revenue over the next few years.

Speaker Change: And our last question today comes from Tom Champion with Piper Sandler. Please go ahead.

Speaker Change: What are you.

Speaker Change: Okay.

Speaker Change: Yeah.

Tom Champion: Hi, good morning, Thanks for all the candor and the comments I guess.

Speaker Change: And I thought the leverage.

Tom Champion: Good morning, Thanks for all the candor and the comments I guess.

Okay.

Speaker Change: Chris I'd love to hear a little bit more about.

Speaker Change: Chris I'd love to hear a little bit more about.

Speaker Change: And how do you.

Speaker Change: The verticals within <unk> and just maybe the trends that unfolded in 14, and what Youre seeing thus far you made an interesting comment on.

Speaker Change: Yes, thanks, Jason.

Speaker Change: The verticals within <unk>, and just maybe the trends that unfolded in 14, and what Youre seeing thus far you didnt interesting comments on.

Speaker Change: No.

Speaker Change: We always look at the business is advancing two key drivers in parallel traffic as you were talking about and monetization quantity and price.

Speaker Change: Isn't it.

Speaker Change: E.

Speaker Change: Business.

Speaker Change: Digital AD revenue, taking place the ascend commitments and maybe that portion overlaps with the cipher and.

Speaker Change: Digital AD revenue, taking place via spend commitments and maybe that portion overlaps with decipher.

Speaker Change: Yeah.

Speaker Change: Traffic is up.

Speaker Change: For traffic there is definitely top of funnel elements.

Speaker Change: Okay.

Speaker Change: And so with the site for seemingly growing well.

Speaker Change: Yes.

Speaker Change: So with the site for seemingly growing well.

Speaker Change: Right.

Speaker Change: Kind of curious if you have more revenue visibility.

Speaker Change:

Speaker Change: A few key stripe strategic priorities. One is we talked about in the letter and we've talked about previously is direct consumer relationships.

Speaker Change: Yes.

Speaker Change: Curious if you have more revenue visibility.

Speaker Change: Yeah.

Eric Sheridan: Hopefully that makes sense, maybe just a final question for Joe If I can Joey I think you ran the search business way back when and.

Speaker Change: Hopefully that makes sense, maybe just a final question for Joe If I can Joey I think you ran the search business way back when and.

Speaker Change: Yes.

Speaker Change: One of them.

Speaker Change: It's about in the letter.

Speaker Change: Where we engender traffic through new products E mail and marketing.

Eric Sheridan: I'd just be curious as you have observed in AI and search evolve what do you think about the future of search broadly. Thank you.

Speaker Change: Got it.

Speaker Change: I'd just be curious as you have observed open AI and search evolve what do you think about the future of search broadly. Thank you.

Speaker Change: Where are we in here.

Speaker Change: Another is continuing to offer premium content.

Speaker Change: Product.

Speaker Change: Another.

Eric Sheridan: Yeah, that's a big one but going to end up.

Speaker Change: Behind our industry, leading brands that we optimize for different platforms. So think Apple news, Google discover social media things like that and then the last one which you mentioned a little earlier decipher plus.

Speaker Change: That's a big one.

Speaker Change: Slipped in there Tom I think if you go first.

Just slipped in there Tom anything I can go first.

Speaker Change: Right.

Tom Champion: Answer that question, yes, that's fine.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Answer that question, yes, that's fine.

Speaker Change: I point, you had and then we can go to the big concepts. So Tom you know a few things.

Speaker Change: Yeah.

Speaker Change: I point, you had and then we can go to the big concepts. So Tom you know a few things.

Apple news.

Tom Champion: We described the AD market is fine right now.

Speaker Change: Members.

Speaker Change: We described the AD market is fine right now.

Speaker Change: Hi.

Speaker Change: And then the last one you.

Speaker Change: We definitely saw the momentum pick back up after the.

Speaker Change: In our partnership with open AI and also on our own we've mapped comparable third party sites.

Speaker Change: You mentioned.

Speaker Change: We definitely saw the momentum pick back up after the.

Speaker Change: I can't.

Tom Champion: After the political freeze.

Speaker Change: Yeah.

Speaker Change: Brown interim.

Speaker Change: After the political freeze.

Tom Champion: People broadly advertisers agencies broadly I think we'd say are are more short term in their commitments move quickly, but they've got things to sell and brands to build and we're seeing that.

Speaker Change: Yeah.

Speaker Change: People broadly as advertisers agencies broadly I think we'd say are are more short term in their commitments move quickly, but they've got things to sell and brands to build and we're seeing that.

Speaker Change: Also on our own.

Speaker Change: That have the same signal of intent that decipher utilizes from the signals developed on our own properties to target and deliver ads with the launch of decipher plus we will now be offering our advertisers and agencies the ability to increase thereby by using our targeting off platform.

Speaker Change: Third parties.

Speaker Change: It seems sick.

Speaker Change: Utilizing.

Tom Champion: Across categories No no major.

Speaker Change: On our own launch.

Speaker Change: Across categories No no major.

Tom Champion: The trends that we would note from the past, we've got clearly health home.

Speaker Change: Okay.

Speaker Change: The trends that we would note from the past, we've got clearly health home.

Speaker Change: At launch.

Speaker Change: We will now.

Tom Champion: Food and beverage finance others.

Speaker Change: Right.

Speaker Change: Food and beverage finance others.

Speaker Change: Our ability to increase their pod.

We'd love to see some momentum returned in finance over time.

Speaker Change: We believe this will provide additional value and utility to advertisers. While also opening up new budgets for D. D. M. We're ramping this up steadily and believe it can be a large and attractive business on the monetization side of the equation. There are three core elements continuing to be best in class on premium direct sales and that's all about performance.

Speaker Change: We'd love to see some some momentum returned in finance over time.

Speaker Change: Hello.

Tom Champion: Health is fine.

Speaker Change: As you believed.

Speaker Change: Health is fine.

Tom Champion: And what we'll continue to monitor how the economy grows decipher plays in the direct premium of ancillary our goal is to roll it into more through product enhancements into.

Speaker Change: We advertise.

Speaker Change: And we will continue to monitor how the economy grows decipher plays in the direct premium of ancillary our goal is to roll it into more through product enhancements into.

Speaker Change: Okay.

Speaker Change: We're ramping up.

Speaker Change: Thank you.

Speaker Change: We're elements.

Speaker Change: So you've seen them.

Tom Champion: More on.

Speaker Change: Okay.

Tom Champion: On demand AD buying and Thats something that the team is working on.

Speaker Change: More on.

Speaker Change: Yes.

Speaker Change: On demand AD buying and that's something that the team is working on.

Speaker Change: Service et cetera for our advertisers the second is improve and continue to broaden our programmatic efforts to take advantage of the auction market.

Speaker Change: One last one.

Tom Champion: You'll be able to serve advertisers in both places. So we are constructive on the current AD market, but cautious as always given the geopolitical volatility and everything that has been a hallmark of the last few years.

Speaker Change: We're all about.

Speaker Change: You'll be able to serve advertisers in both places. So we are constructive on the current ad market.

Speaker Change: Et cetera.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: But cautious as always given the geopolitical volatility and everything that has been a hallmark of the last few years.

Speaker Change: Programmatic.

Speaker Change: And then continue to innovate and lead the market on performance marketing, we felt great about the last quarter with 22% growth keep chugging.

Speaker Change: Yeah.

Speaker Change: Sure.

Tom Champion: Yes, so I'll answer a little bit anecdotally in and then maybe broader but.

Speaker Change: Yeah.

Speaker Change: Yes, so I'll answer a little bit anecdotally in and then maybe broader but.

Speaker Change: Yeah.

Speaker Change: Right.

Speaker Change: Thus drive as much traffic and grow revenue per session in terms of.

Tom Champion: As I start searches now and as many people I know start searches now an increasing share is certainly going to.

Speaker Change: You're right about the last I heard that.

Speaker Change: As I start searches now and as many people I know start searches now an increasing share is certainly going to.

Speaker Change: Got it.

Speaker Change: Okay.

Speaker Change: That drive.

Speaker Change: Higher growth rates that you asked about our guide is 10% plus digital revenue growth this year and going forward, but we believe in the power of our platform.

Speaker Change: Right.

Speaker Change: No doubt.

Tom Champion: The AI platforms, and that's because of the efficient experience and.

Speaker Change: The AI platforms, and that's because it's a good efficient experience and.

Speaker Change: Great.

Speaker Change: Our guide is 10%.

Tom Champion: That experience to continue to gain share it's a meaningful evolution from the 10 blue links and we've been looking for that meaningful evolution to done Bluelinx for a long time and I think that is.

Speaker Change: Revenue growth.

Speaker Change: And the incremental growth opportunities. It provides so we will keep pushing.

Speaker Change: That experience to continue to gain share it's a meaningful evolution from the 10 blue links and we've been looking for that meaningful evolution to depend bluelinx for a long time and I think that is.

Speaker Change: Yeah.

Speaker Change: Right.

Speaker Change: Any incremental growth opportunities.

Speaker Change: Thank you Jason Operator next question.

Speaker Change: Okay.

Speaker Change: Absolutely. Our next question today comes from James.

Tom Champion: So found advancement I think one of the keys in that is those user interfaces whether there.

Speaker Change: Uh huh.

Speaker Change: So found advancement I think that one of the keys in that is those user interfaces whether there.

Speaker Change: Jefferies. Please go ahead.

Speaker Change: What is that.

Speaker Change: It comes from James.

Tom Champion: Voice or or sort of AI conversation than they were used to.

Speaker Change: Great. Thanks, guys can you break down the results at <unk> Dot Com is there any additional detail you can get.

Speaker Change: Voice or or sort of AI conversation than they were used to.

Speaker Change: Yeah.

Speaker Change: No.

Tom Champion: <unk> four fewer answers and that means that wasn't going to be important there and we think about that in the context of of IC and <unk> and in the context of impaired in the context of Angi is you got to be the best in the category with the best content and for those I think you are in a very good position and if you're further into the tail I think that's a much harder position and.

Speaker Change: Great.

Speaker Change: <unk> four fewer answers and that means that wasn't going to be important there and we think about that in the context of IC and <unk> and in the context of care in the context of Angi is you got to be the best in the category with the best content and for those I think you are in a very good position and if you're further into the tail I think that's a much harder position and.

Speaker Change: Great.

Speaker Change: Merchant results between enterprise and consumer and what you expect going forward and then I just had a follow up question.

Speaker Change: Okay.

Speaker Change: Yes.

Thank you Adam.

Speaker Change: Okay, Yes.

Speaker Change: Sure.

Speaker Change: Got it.

Speaker Change: So we broke out carrier as its own segment. This quarter. This is a business. We bought in 2020 and have spent a lot of time and energy.

Speaker Change: Alright.

Speaker Change: First quarter, yes.

Speaker Change: Jack.

Speaker Change:

Speaker Change: Yeah.

Tom Champion: So I think that these models are did LMS and those user interfaces continue to take care for awhile and then concentrate audience around the very best in a more meaningful way.

Speaker Change: Rebuilding the platform.

Speaker Change: He spent.

Speaker Change: So I think that these models are did LMS and those user interfaces continue to take care for a while and then sort of concentrate audience around the very best in a more meaningful way.

Speaker Change: And advancing it and we will talk about our further efforts. There. There is two main business lines, it's consumer business, where individuals and families directly subscribed to care dot com to be matched with caregivers and find home care and then its enterprise business where companies pay care to provide.

Speaker Change: There have been a lot of that.

Speaker Change: Uh huh.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: References there.

Tom Champion: Thank you. Thank you Tom Thank you operator and everyone. Thank you all for.

Speaker Change: Thank you. Thank you Tom Thank you operator and everyone. Thank you all for a decade or more of these and we left from here. Thank you it's been an honor.

Speaker Change: Please go ahead.

Speaker Change: The individuals and families.

Tom Champion: Decade, or more of these and we left from here. Thank you.

Speaker Change: Right.

Speaker Change: And in honor.

Speaker Change: Okay.

Speaker Change: Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Speaker Change: We are trying to make.

Speaker Change: Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

And then.

Speaker Change: Benefits to their employees the company's can purchase backup care days that employees can use to get emergency care for their child or senior if needed. They can access specialists to help support different.

Speaker Change: We are a company.

Speaker Change: No.

Speaker Change: Thank you Karen.

Speaker Change: The company.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Your child or senior.

Speaker Change: Different needs at home and with their family and they can also pay for their employees to have full access to the care Dot com marketplace. The last few years at care have seen ups and downs driven by Covid, then followed by post pandemic adjustment the.

Speaker Change: They can access.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: And with their family and they can also pay for them.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Right.

Speaker Change: Yes.

Speaker Change: And by Covid.

Speaker Change: The enterprise business experienced a major boost during the pandemic as companies sought to help employees manage care needs with differing work arrangements and get them back in the office that leveled out post pandemic right now the enterprise business has a nice tailwind behind it as employer provided support.

Speaker Change: Okay.

Speaker Change: The enterprise business.

Speaker Change: Hearings.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: It happens.

Speaker Change: Yes.

Speaker Change: Thanks.

Speaker Change: And at.

Speaker Change: In the enterprise.

Speaker Change: For care needs is increasingly becoming a standard benefit sort of table Stakes in some way similar to health insurance. The enterprise line grew last year and should continue to be a solid performer going forward.

Speaker Change: [noise] tailwind behind it.

Speaker Change: As completely as provided.

Speaker Change: And for clarity this increasingly.

Speaker Change: Sales benefits.

Speaker Change: Sure.

Speaker Change: Enterprise sign up through last year.

Speaker Change: One of the real leaders in that category on the consumer side, we saw greater macro tailwind into 'twenty two period than we realized and it frankly massive deficiencies in the core product experience consumer declined last year as we lap challenging comps struggled on marketing and the product.

Speaker Change: Thank you.

Speaker Change: The cat one we're going to continue.

Speaker Change: All right.

Speaker Change: Thank you Sir.

Speaker Change: Yes.

Speaker Change: Consumer cemetery.

Speaker Change: Tailwind.

Speaker Change: Then we realize it.

Speaker Change: And in pricing.

Speaker Change: Our core products.

Speaker Change: Consumer decline last year.

Speaker Change: We laugh.

Speaker Change: Lagged on conversion and renewals.

Speaker Change: Traveled on marketing.

Speaker Change: New CEO, Brad Wilson and his team have been actively working to improve the product.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: New CEO Brad Wolfe.

Speaker Change: Just on areas like messaging and matching and we believe the impact will be seen throughout this year it'll be a slow return to growth given the subscription product and the nature of ramping back up in reversing trends, but we love care Dot coms positioning as the industry leader with the most care seekers and caregivers in the market.

Speaker Change: Yes.

Speaker Change: Product.

Speaker Change: Areas like matching.

Speaker Change: Matching and <unk>.

Speaker Change: We believe the impact.

Speaker Change: Yes.

Speaker Change: In terms of.

Speaker Change: Gross profit.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Fair enough.

Speaker Change: But we also know that consumer demand is there. The company recently released its annual state of the industry report and the challenges of finding good child in senior care are only growing as are the costs, so with an improved experience and better marketing.

Speaker Change: The industry leader.

Speaker Change: Okay.

Speaker Change: We also made it easier for demand was there.

Speaker Change: Yeah.

Speaker Change: The challenges of finding good.

Speaker Change: Yeah.

Speaker Change: We think the team can seize on that opportunity and returned to growth.

Speaker Change: Sure.

Speaker Change: Any assets that are most of the time.

Speaker Change: And then James next question.

Speaker Change: We think.

Richard: Community and Richard.

Speaker Change: Yes, great.

Speaker Change: One quickly on the corporate costs, just curious what's driving that elevated level in 2025, and then how should we think about that on a normalized run rate going forward.

Speaker Change: And then next question.

Speaker Change: Exactly.

Speaker Change: Yes.

Speaker Change: I'm curious.

Speaker Change: And then.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: We guided obviously, you're a much higher number this year, there's a number of nonrecurring things going on in corporate this year. The first are associated with Joey's.

Speaker Change: No.

Speaker Change: Yeah.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: There's a number of nonrecurring.

Speaker Change: Separation from IAC and.

Speaker Change: But this year.

Speaker Change: Okay.

Speaker Change: Joey.

Speaker Change: Moving to Angi is six year consulting agreement will be recognized at the time of the <unk> spin all at once next.

Speaker Change: Hi.

Speaker Change: Sure.

Speaker Change: And.

Speaker Change: In the agreement will be.

Speaker Change: Next are costs associated with the angi spend tax legal filing et cetera.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Additionally, we have legacy matters that are hitting the P&L. This year, such as ongoing litigation relating to the match group separation that will drive expenses. This year and then finally as I talked about.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Additionally, we had lately.

Speaker Change: Dan Guffey.

Speaker Change: In late March.

Speaker Change: Okay.

Speaker Change: In the prior quarter.

Speaker Change: Each year.

Speaker Change: Later.

Speaker Change: We have taken actions to streamline costs at corporate.

Speaker Change: Action.

Speaker Change: Sure.

Speaker Change: And that's created onetime expenses this year.

Speaker Change: Yes.

Speaker Change: Last year corporate.

Speaker Change: I would also flag when you look at 'twenty for the run rate costs were artificially masked in the reported number was lower due to a $10 million out of period insurance payment that we received in 2004. So in sum we are incurring roughly $50 million.

Speaker Change: I understand.

Speaker Change: When you look at 'twenty.

Speaker Change: Oh, you're asking.

Speaker Change: Just put a number was $4 million.

Speaker Change: Or you would be wrong.

Speaker Change: Okay.

Speaker Change: In sum.

Speaker Change: Nonrecurring costs this year that will not be in the cost structure in 2006 and beyond and we will provide more clarity on that as we move forward.

Speaker Change: Got it.

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: You should hear that.

Speaker Change: Beyond.

Speaker Change: Beyond Uh huh.

Speaker Change: Thanks, James Operator next question.

Speaker Change: Absolutely. Our next question today comes from Ross Sandler of Barclays. Please go ahead.

Speaker Change: Absolutely.

Speaker Change: Got it.

Speaker Change: My question today comes from Ross Sandler.

Speaker Change: Great Barry Thanks for hopping on the call here I guess a question for you is how involved do you want to be in the day to day at IAC and how do you feel about the management structure at the pump with with Joey moving.

Speaker Change: Right.

Speaker Change: Yeah.

Speaker Change: I guess.

Speaker Change: Uh huh.

Speaker Change: Okay.

Speaker Change: Oh Wow.

Speaker Change: Right.

Speaker Change: Julie.

Speaker Change: Strong.

Speaker Change: Over to Angi, and then Chris just a follow up on the opportunity for decipher plus.

Speaker Change: Hum.

Speaker Change: One.

Speaker Change: Oh Wow.

Speaker Change: Non owned and operated inventory could that be material in 'twenty, five and what kind of impact could that have on profitability.

Speaker Change: Alright.

Speaker Change: Awesome.

Speaker Change: Right.

Speaker Change: Zero.

Speaker Change: Could that have on profitability.

Speaker Change: All right I'll start quickly I have great confidence in my colleagues.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: My colleagues at home.

Speaker Change: In terms of the day to day.

Speaker Change: Uh huh.

Speaker Change: Mike.

Speaker Change: Uh huh.

Speaker Change: And Russell are both going to help me with that.

Speaker Change: Uh huh.

Speaker Change: But we really have.

Speaker Change: What's going to help me with.

Speaker Change: We have one prime operating business, which goes superb management does not need us day to day.

Speaker Change: Alrighty.

Speaker Change: Yeah.

Speaker Change: Operator.

Speaker Change: And.

Speaker Change: And Oh.

Speaker Change: Again I think this is a group that just by the nature of the changed at all of these things I think it was.

Speaker Change: Yeah.

Speaker Change: Oh I see.

Speaker Change: They get paid.

Speaker Change: Group that just by the AGM.

Speaker Change: Suppressing eager.

Speaker Change: All of the half.

Speaker Change: And I'm Gonna do what I've always thought hopefully stimulate the process drive people crazy and.

Speaker Change: All right.

Speaker Change: Okay.

Speaker Change: And I'm.

Speaker Change: Right.

Speaker Change:

Speaker Change: Alright.

Speaker Change: Hum.

Speaker Change: And pay attention to the things that I think are important which obviously.

Speaker Change: Okay.

Speaker Change: Exactly.

Speaker Change: It's obviously too much today, I don't know why but whatever anyway, obviously.

Speaker Change: Okay.

Speaker Change: All right.

Speaker Change: Anyway.

Speaker Change: Uh huh.

It involves capital allocation, and and and and and seeking out new opportunities.

Speaker Change: The board.

Speaker Change: Hum.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: And and and seeking out yes.

Speaker Change: Yes.

Thank you and then Ross decipher plus we're excited about.

Speaker Change: Yeah.

Speaker Change: And then Ron.

Speaker Change: We think it can be a powerful growth driver and it really increases the company's access to two types of inventory that advertisers want the first is lookalike premium inventory in our core categories food health home, others, where we see consumer intent at scale, so <unk> off.

Speaker Change: Right.

Speaker Change: Yeah.

Speaker Change: Right.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Laurie.

Speaker Change: Laurie.

Speaker Change: Okay.

Speaker Change: And limited by inventory and our own premium pricing on on highly performing inventory in these categories and we can do use decipher plus to identify similar performing inventory on those third party sites and by efficiently. This inventory today is being monetized on programmatic platform.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: You mean.

Speaker Change: I did.

Speaker Change: Hi, Lisa.

Speaker Change: Yeah.

Speaker Change: Got it.

Speaker Change: And we use it.

Speaker Change: Got it.

Speaker Change: It didn't.

Speaker Change: Hi.

Speaker Change: Programmatic.

Speaker Change: <unk> at lower rates.

Victoria.

Speaker Change: Where current buyers lack the powerful intent driven signal that decipher provides to DDS. The second set of inventory is undervalued, yet performing impressions in our categories.

Speaker Change: Alright.

Speaker Change: Right.

Speaker Change: At this point.

Speaker Change: Right.

Speaker Change: Driven the second.

Speaker Change: Under.

Speaker Change: Okay.

Speaker Change: So we have core advertisers, who were being priced out of DDA and inventory because of the performance and CPI is so high.

Speaker Change: So yes.

Speaker Change: Right.

Speaker Change: Yep.

Speaker Change: Yep.

Speaker Change: Alright I would've.

Speaker Change: Beforehand.

Speaker Change: And they're looking for some lower price volume to be included in their buys we can do that and still have the decipher performance guarantee so think about it is as.

Speaker Change: Alright.

Okay.

Speaker Change: Alright.

Speaker Change: Great.

Speaker Change: Alright.

Speaker Change: I did.

Speaker Change: Aiding both elements of the price curve because of these factors. We believe we can substantially increase our supply of impressions and do it at attractive margins.

Speaker Change: Safer or easier.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Research and clients.

Speaker Change: Yeah.

Speaker Change: Increased.

Speaker Change: While providing our advertisers with exceptional performance, we're ramping this offering up across 25 selling it into accounts and believe it can grow rapidly on a revenue basis on the incremental margin point.

Speaker Change: You would have otherwise.

Speaker Change: Well providing ramping.

Speaker Change: We're ramping.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: We said, we're targeting 40 plus.

Speaker Change: Got it.

Speaker Change: Or do you handle margin.

Speaker Change: Digital incremental EBITDA or adjusted EBITDA margins, we believe that strikes the right balance between investment in products and content on the one hand and profit growth on the other end.

Speaker Change: John Edwards.

Speaker Change: Yep.

Speaker Change: Is that right.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: That's not.

Speaker Change: And decipher plus we believe will be supportive of.

Speaker Change: Yeah.

Speaker Change: I like what.

Speaker Change: Those types of incremental margins.

Speaker Change: We believe we'll be supportive thank you.

Speaker Change: Thank you Ross operator next question.

Speaker Change: Great.

Speaker Change: Yeah.

Speaker Change: Absolutely. Our next question today comes from Justin Patterson with Keybanc. Please go ahead.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Our next question today comes from Justin Patterson.

Speaker Change: Great. Thank you good morning.

Speaker Change: Good morning.

Speaker Change: The hit on Jason's Dot Dash question, a different way what do you see it as a key steps to grow direct traffic more and eliminates the middleman and then as you execute on these initiatives how might the financial profile of the business differ versus what we see today. Thank you.

Speaker Change: Got that.

Speaker Change: Oh.

Speaker Change: Got it.

Speaker Change: Alright.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Rosemont.

Speaker Change: And as you have to do that.

Speaker Change: Financial profile.

Speaker Change: Thanks, Thanks, Jason Justin.

Speaker Change: Thanks, Justin.

John Blackledge: So the direct to consumer effort is one that Neil and team have been driving for awhile and it's an offensive plan.

Speaker Change: So did you.

Speaker Change: Absolutely.

Speaker Change: Good morning.

Speaker Change: One that <unk> been.

Speaker Change: We know our brands are exceptional we know theyre trusted and we know they are sought after by consumers we.

Speaker Change: Driving for us.

Speaker Change: That plan.

Speaker Change: Got it.

Speaker Change: Humors, we know there.

Speaker Change: We've also talked for a few quarters about our efforts to expand our content to as many platforms as possible to engage our customers and to grow our touch points with consumers to be able to interact with it directly.

Speaker Change: Yeah.

Speaker Change: Also.

Speaker Change: Sure.

Speaker Change: Our efforts to engage.

Speaker Change: And in growth.

Speaker Change: With consumer engagement.

Speaker Change: Good points.

Speaker Change: Some of that has been through E mail marketing.

Speaker Change: Yeah.

Speaker Change: Some of that is.

Speaker Change: Social media and also live events, which have worked very well from.

Speaker Change: Okay.

Speaker Change: Video.

Speaker Change: Both engagement and monetization perspective. This year, we're looking to continue to invest in these areas and also rollout new products initially centered on people.

Speaker Change: Yes.

Speaker Change: Right.

Speaker Change: It's very well from.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: And badger.

Speaker Change: Okay.

Speaker Change: And our industry, leading food brands to engage consumers directly and then further enhanced loyalty, which drives even deeper engagement and repeat engagement these products, which will be providing more information as we go take advantage of video personalization utility and our breadth of content and.

Speaker Change: Okay.

Speaker Change: People to engage.

Speaker Change: And then.

Speaker Change: E <unk>.

Speaker Change: Further enhanced loyalty product will be fine.

Speaker Change: And it affects which board.

Speaker Change: Information is already there.

Speaker Change: Median progression for San Jose.

Speaker Change: Storytelling, and we think we're going to offer experiences in these categories that no. One else has today with respect to financial impact.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: We're gonna offered with your executive.

Speaker Change: No.

Speaker Change: Hum.

Speaker Change: The monetization models are similar.

Speaker Change: Impact.

Speaker Change: So we don't view them.

Speaker Change: Yeah.

Speaker Change: H.

Speaker Change: We view them as advancing and not dilutive.

Speaker Change: So we don't do that.

Speaker Change: To our to our overall financial efforts with EDM.

Speaker Change: Yeah.

Speaker Change: You are.

Speaker Change: Thanks, Justin do you have another question.

Speaker Change: Our overall.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: Thank you. Thank you.

Speaker Change: Okay. Thank you operator next question.

Speaker Change: Thank you.

Speaker Change: Absolutely. Our next question comes from Youssef Squali with Securities. Please go ahead.

Speaker Change: Okay.

Hum.

Speaker Change: Absolutely.

Speaker Change: Excellent. Thank you one question for Chris and one for Barry. Please so Chris back to decipher now that you've integrated open AI Tech and there can you maybe talk about the impact on <unk>.

Speaker Change: Comes from yourselves.

Speaker Change: Right.

Speaker Change: Oh.

Speaker Change: Thank you Michael.

Speaker Change: Yeah.

Speaker Change: No.

Speaker Change: Yeah.

Speaker Change: Hi.

Speaker Change: You've seen like version at pricing et cetera, and how much of that is left.

Speaker Change: Can you maybe.

Speaker Change: Right.

Speaker Change: Got it.

Speaker Change: Okay.

Speaker Change: In your view I'm not talking about the soccer plus just the soccer on the owned and operated and then Barry.

Speaker Change: Yes.

Speaker Change:

Speaker Change: Mary just a tougher on yeah.

Speaker Change: I guess now that I know that.

Speaker Change: Aye.

Speaker Change:

Speaker Change: He is going to be spun off how do you see.

Speaker Change: Yeah.

Speaker Change: IC, who these mood MGM.

Speaker Change: E.

Speaker Change: Oh Wow.

Speaker Change: Posted that does that compel you to want to do more with that category.

Speaker Change: Yeah.

Speaker Change: How are you more on that.

Is that right.

Speaker Change: How they're being a bunch of news coming out that MGM is I think the other JV partner <unk> seems to have had some changes at the top so just how do you think about that opportunity.

Speaker Change: Yeah.

Speaker Change: All right.

Speaker Change: Aren't you.

Speaker Change: Yeah.

Speaker Change: Yeah.

Hum.

Speaker Change: Okay.

Speaker Change: Now that.

Speaker Change: Now how do you.

Speaker Change: You seem to have gotten some flexibility in your corporate structure. Thank you.

Speaker Change: Yeah.

Speaker Change: You seem to have gotten some flexibility in your query.

Speaker Change: Do you want to go first.

Speaker Change: Yes sure.

Speaker Change: Yes.

Speaker Change: E D.

Speaker Change: What I've said before which is I think MGM is in excellent shape excellent operating results.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Okay cool.

Speaker Change: Oh is excellent.

Speaker Change: And superb management team.

Speaker Change: Excellent.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Hum.

Speaker Change: MGM is going to continue to.

Speaker Change: Yeah.

Speaker Change: Oh.

Speaker Change: Opportunistically.

Speaker Change: Andrea.

Speaker Change: Sure.

Speaker Change: Certainly it's been buying back stock.

Speaker Change: Do so knowing how undervalued it is which will increase our ownership we may increase our ownership as I said before I consider it to be a forever asset.

Speaker Change: Cool.

Speaker Change: Yes.

Speaker Change: Great.

Speaker Change: Thank you.

Speaker Change: Year to date.

Speaker Change: All right.

Speaker Change: Sure.

Speaker Change: Sure.

Speaker Change: Conducive of course, possibly could change I can't fathom that.

Speaker Change: Alright.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: And I think it's in.

Speaker Change: Go ahead Mike.

Speaker Change: You're talking about.

Speaker Change: It.

Speaker Change: I also said earlier.

Speaker Change: Okay.

Speaker Change: Uh huh.

Speaker Change: Okay.

Speaker Change: I think we will see it.

Speaker Change: Got it.

Speaker Change: Uh huh.

Speaker Change: Something that is.

Speaker Change: Less complex going forward.

Speaker Change: Yes.

Speaker Change: Uh huh.

Speaker Change: But.

Speaker Change: Hi, Mike.

Speaker Change: I just think it is.

Speaker Change: Uh huh.

Ours is ever going away.

Speaker Change: Hi, good morning.

Speaker Change: I just think it's it's.

Abby: Thank you Abby and then you said with respect to decipher.

Speaker Change: Absolutely.

Speaker Change: I used to.

Speaker Change: Thank you.

Speaker Change: We've talked before about the case studies.

Speaker Change: And then.

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: We've.

Speaker Change: Do you want.

Speaker Change: Executed with.

Speaker Change: <unk> studies.

Speaker Change: Our advertisers and we have over 30 case studies that.

Okay.

Speaker Change: Yeah.

Speaker Change: Prove it out what's interesting is we.

Speaker Change: 30.

Speaker Change: Dirty case study target.

Speaker Change: We target or optimize different metrics.

Speaker Change: Yes.

Speaker Change: Based on what the advertisers' goals are in the given campaign and as you know decipher today is all premium.

Speaker Change: Yeah.

Speaker Change: Alright.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Paul.

Speaker Change: As you know.

Speaker Change: Direct campaigns.

Speaker Change: Today.

So for some for some advertisers that's click through for others its efficiency for others, it's actually sales conversion and then some.

Yes.

Speaker Change: Correct.

Speaker Change: Oh.

Speaker Change: Hum.

Speaker Change: Thanks.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: In store visits.

Speaker Change: Export sales conversion yes.

Speaker Change: We have.

Speaker Change: We are quite confident we've outperformed in all of these case studies.

Speaker Change: We have.

Speaker Change: Okay.

Speaker Change: And then blow away non cookie based solutions, we've seen the we've talked about this last quarter that.

Speaker Change: And.

Speaker Change: Okay.

Speaker Change: Cookie.

Speaker Change: Hi.

Speaker Change: Yes.

Speaker Change: We've seen the we talked last.

Speaker Change: Campaigns that orders that include decipher.

Speaker Change: Okay.

Speaker Change: Excellent.

Speaker Change: Our over provide over half of the direct digital revenue in DDS and that trend has continued as has we said last quarter that.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Indeed.

Speaker Change: I don't think.

Speaker Change: Revenue.

Speaker Change: And you'd add.

Speaker Change: Orders with decipher are over 50% larger than orders without decipher and that trend will continue.

Speaker Change: Merger.

Speaker Change: Okay.

Speaker Change: 2%.

Speaker Change: Well that many quarters without.

Speaker Change: It is an important feature in an overall direct advertising campaign. We also are thrilled that being able to integrate open AI technology, we can.

Speaker Change: Sure.

Speaker Change: All right.

Speaker Change: I wouldn't.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: We also are thrilled.

Speaker Change: Utilize video and images in our targeting and our scoring for even better contextual.

Speaker Change: Great.

Speaker Change: We end up.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: And our topic.

Speaker Change: Performance and we expect to continue in advance that Youssef on your question on that MGM is going out the.

Yeah.

Speaker Change: Thanks.

Speaker Change: Goodbye.

Speaker Change: Oh, yes.

Speaker Change: You saw the announcements from bet MGM.

Speaker Change: Yes.

Speaker Change: Uh huh.

Speaker Change: Two ago, nice really nice momentum in the business. The things we were talking about on the product side for a while they talked about how that has materialized into the business.

Speaker Change: Okay.

Speaker Change: Nice.

Speaker Change: It's available.

Speaker Change: Yeah.

Speaker Change: And.

Speaker Change: Uh huh.

Speaker Change: Got it.

Speaker Change: MGM and bet MGM bodes very great relationship with <unk>, both at the CEO and the chair chair person level as though David and so we wouldn't expect anything to change there.

Speaker Change: You are right.

Speaker Change: Okay.

Speaker Change: Yep.

Speaker Change: Her level of Astellas.

Speaker Change: Thank you.

Speaker Change: Operator next question.

Speaker Change: Changing.

Speaker Change: Our next question today comes from Nick Jones at citizens A&P. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Great.

Speaker Change: Yeah.

Speaker Change: Question today comes from Nick Jones.

Speaker Change: Great. Thanks for taking the question I guess, just a couple on.

Speaker Change: Hum.

Speaker Change: Okay.

Speaker Change: For.

Speaker Change: Learnings from AI.

Speaker Change: Yeah.

Speaker Change: And is focused on kind of improving the questioning and matching.

Speaker Change: Got it.

Speaker Change: P J.

Speaker Change: Got it.

Speaker Change: And then touch on refi, there's increased focus on kind of a gentle AI.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Uh huh.

Speaker Change: Do you think about the kind of A&D playbook going forward is that going to play a role in kind of improving matching and I guess the same question for care Dot com.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: No problem.

Speaker Change: Sure.

Speaker Change: Finally.

Speaker Change: Through the match.

Speaker Change: Yes, I'll start and our view is yes on improving matching it to Jeff talked about that a little bit in his letter I think I've said for a while and we're not sure whether this happens or not but I sit for a while that one of the best things that could happen to Angie Angie user interface would be if consumers adopt.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Got you.

Speaker Change: Wow it for a while.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: <unk>.

Speaker Change: They're doing that to some or a significant extent with chat GPT in similar but.

Speaker Change: Yes.

Speaker Change:

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: That's the ideal UI for us to get.

Speaker Change: Yes.

Speaker Change: The right information from consumers about a job and of course, the better information, we get about a job the better matching we can do and then on top of that AI is better technology for four.

Speaker Change: Right.

Speaker Change: Yes.

Speaker Change: Alright.

Speaker Change: Yeah.

Speaker Change: Yeah.

Yes.

Speaker Change: And then after that.

Speaker Change: Shorting data to allow for better matching but if we can get that conversational UI adopted broadly and consumers are comfortable with that I think that that is.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Uh huh.

Speaker Change: Okay.

Net very positive for angi and the user experience.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Yes, very well.

Speaker Change: Say effectively.

Speaker Change: Right.

Speaker Change: The easier too.

Speaker Change: Becomes agenda.

Speaker Change: I would just say.

Speaker Change: We're effectively serving as the agent we're matching with the pro and so that's where we see this going as we leverage those tools and technology.

Speaker Change: Sure.

Speaker Change: That's great.

Speaker Change: Yeah.

Speaker Change: Well, that's we're always yes.

Speaker Change: And Nick I would just say broadly across the portfolio. We said this for a while.

Speaker Change: Yes.

Speaker Change: For a while.

You have proprietary datasets.

Speaker Change: Nick.

Speaker Change: Right.

Speaker Change: For a while the Apple.

Speaker Change: The application of AI optimization and analysis.

Speaker Change: D J.

Speaker Change: The Apple.

Speaker Change: You will have it will enhance things like matching on our marketplaces be at Angi care Vivian elsewhere.

Speaker Change: Mandates.

Speaker Change: Yeah.

Speaker Change: If you see it.

Speaker Change: And <unk> maybe.

Speaker Change: Yes.

Speaker Change: And we are seeing those those applications and then secondly.

Speaker Change: Okay.

Speaker Change: Exactly.

Speaker Change: Onboarding sign ups service request generation nurse.

Speaker Change: On E sign applications, and then secondly on boarded.

Speaker Change: Information it Vivian.

Speaker Change: Uh huh.

Speaker Change: Yes.

Speaker Change: All of these these open information entry activities as well as classic customer service functions, you can see where the puck is going.

Speaker Change: Yes.

Speaker Change: Ah patient.

Speaker Change: All right.

Speaker Change: Yes.

<unk> and <unk>.

Speaker Change: Oh, no customer service too.

Speaker Change: Due to the AI ops.

Speaker Change: Where the puck is going.

Speaker Change: Opportunities.

Speaker Change: And do you have another question.

Speaker Change: Due to <unk>.

Speaker Change: Okay.

Operator last question.

Speaker Change: Oh do you have another question.

Tom Champion: And our last question today comes from Tom Champion with Piper Sandler. Please go ahead.

Speaker Change: Okay.

Speaker Change: Hum.

Speaker Change: Yeah.

Speaker Change: Sure.

Speaker Change: Hi, good morning, Thanks for all the candor and the.

Speaker Change: Comes from.

Speaker Change: Good morning.

Speaker Change: Yeah.

Speaker Change: The comments I guess.

Speaker Change: Comment.

Speaker Change: Thanks for all the candor.

Chris Corr: Chris I'd love to hear a little bit more about.

Speaker Change: Hum.

Speaker Change: The verticals within DDS, and just maybe the trends that unfolded in <unk> and what youre seeing thus far.

Speaker Change: Hi, Chris.

Speaker Change: We're about.

Speaker Change: Right.

Speaker Change: It just seems like ours.

Speaker Change: An interesting comment on.

Speaker Change: Hum.

Speaker Change: Hum.

Speaker Change: Digital AD revenue, taking place via spend commitments and maybe that portion overlaps with decipher.

Speaker Change: <unk>.

Speaker Change: Did you add.

Speaker Change: All right.

Speaker Change: Isn't it.

Speaker Change: Okay.

Speaker Change: And so with with decipher seemingly growing well.

Speaker Change: Smith.

Speaker Change: Poor shape.

Speaker Change: Sure.

Speaker Change: Kind of curious if you have more revenue visibility.

Speaker Change: You go to sleep.

Speaker Change: Alrighty.

Speaker Change: Hopefully that makes sense, maybe just a final question for Joe if I can.

Speaker Change: Hopefully.

Speaker Change: All right.

Speaker Change: Oh, yes.

Speaker Change: Joey I think you ran the search business way back when and.

Speaker Change: Yeah.

Speaker Change: No question.

Speaker Change: Yes.

Speaker Change: Thank you.

Speaker Change: I'd just be curious as you have observed open AI and search evolve.

Speaker Change: Just curious when you are.

Speaker Change: Be curious when you think about the curved open AI.

Speaker Change: Think about the future of search broadly thank you.

Speaker Change: Well I think you would think about the future of sort of interesting.

Tom Champion: Because that's a big one and then just just wanted to let slip in there Tom.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yeah.

Chris Corr: First Chris Yes, why not think about the answer to that question, Yes, that's fine.

Speaker Change: Yes.

Speaker Change: Excellent.

Speaker Change: Yeah.

Speaker Change: The point you had it and then we can go to the big concepts.

Speaker Change:

Speaker Change: So Tom a few things.

Speaker Change: I think that we can go.

Speaker Change: We described the AD market as fine right now.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: We definitely saw the momentum pick back up after the.

Speaker Change: Got it.

Speaker Change: Uh huh.

Speaker Change: Alrighty.

Speaker Change: After the political freeze.

Speaker Change: With that.

Speaker Change: <unk> after it.

Speaker Change: People broadly or so advertisers agencies broadly I think we'd say are our more.

Speaker Change: You know after the vote.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: And the current agents.

Speaker Change: Short term and their commitments move quickly, but they've got things to sell and brands to build and we're seeing that.

Speaker Change: Okay.

Speaker Change: As a whole.

Speaker Change: Sure <unk> got in there.

Speaker Change: All right.

Speaker Change: Got it.

Speaker Change: Across categories No no major.

Speaker Change: No.

Speaker Change: <unk> seen that.

Speaker Change: The.

Speaker Change: Across categories.

Speaker Change: Trends that we would note from the past, we've got clearly health home.

Speaker Change: We would.

Speaker Change: Got it.

Speaker Change: Trends there.

Speaker Change: The food and beverage.

Speaker Change: You've got familiar with that.

Speaker Change: Finance others.

Speaker Change: Yeah.

Speaker Change: Yep Yep.

Speaker Change: We'd love to see some some momentum returned in finance over time.

Speaker Change: Yeah.

Speaker Change: Yep.

Speaker Change: Yeah.

Speaker Change: M C.

Speaker Change: <unk>.

Speaker Change: Health is fine.

Speaker Change: No.

Speaker Change:

Speaker Change: And we'll continue to monitor how the economy grows.

Speaker Change: That will help you.

Speaker Change:

Speaker Change: Decipher plays in the in the direct premium Advair.

Speaker Change: Wade.

Speaker Change: Right.

Okay.

Speaker Change: Advanced cell area, our goal is to roll it into more through product enhancements into.

Speaker Change: Exactly.

Speaker Change: Uh huh.

Speaker Change: Well.

Speaker Change: More.

Speaker Change: And two more.

Speaker Change: On demand.

Speaker Change: Brought on demand.

Speaker Change: AD buying and that's something that the team is working on.

Speaker Change: Yes.

Speaker Change: On demand.

Speaker Change: And be able to serve advertisers in both places so we are.

Speaker Change: Yeah.

Speaker Change:

Speaker Change: It serves a trepid.

Speaker Change: Constructive on the on the current AD market.

Speaker Change: We are.

Speaker Change: But cautious as always given the geopolitical volatility and everything that has been a hallmark of the last few years.

Speaker Change: Okay.

Speaker Change: That market.

Speaker Change: Yeah.

Speaker Change: Otherwise getting political volatility.

Speaker Change: Artillery and everything that yet.

Speaker Change: Yeah, So I'll answer a little bit anecdotally and in and then maybe broader but.

Speaker Change: Anecdotally.

Speaker Change: Yeah. So.

Speaker Change: Totally.

Speaker Change: As I.

Speaker Change: Maybe broader.

Speaker Change: Start.

Speaker Change: It is now and as many people I know start searches now and increasing share is certainly going to the.

Speaker Change: Oh.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Alright.

Speaker Change: And.

Speaker Change: The AI platforms.

Speaker Change: Are you going.

Speaker Change: And that's because it's a good efficient experience and I expect that experience to continue to gain share.

Speaker Change: Yeah.

Speaker Change: Good.

Speaker Change: Okay.

Speaker Change: Net.

Speaker Change: Okay.

Speaker Change: I like that.

Speaker Change: It's a meaningful evolution from the 10 blue links and we've been looking for that meaningful evolution to the 10 Bluelinx for a long time and I think that is.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change:

Uh huh.

Speaker Change: Yes.

Speaker Change: Profound advancement I think that one of the keys in that is those user interfaces whether there.

Speaker Change: Hum.

Speaker Change: Is inbound.

Speaker Change: Units.

Speaker Change: Okay.

Speaker Change: Voice or or sort of a.

Speaker Change: Is that.

Speaker Change: Oh boy.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: A conversation I think that we're used to.

Speaker Change: Or.

Speaker Change: We have space for fewer answers and.

Speaker Change: Yes.