IAC Q4 2025 IAC Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 IAC Inc Earnings Call
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I would now like to turn the conference over to Christopher Halpin coo and CFO. Please go ahead.
Thank you. Good morning, everyone. Christopher Halpin here and welcome to the Ia. Fourth quarter, earnings call joining me today are barry Diller. The chairman and Senior, executive of IAC and Neil Vogel CEO of people Inc.
Casey is published a presentation on the investor relations section of our website today. Entitled Q4 earnings presentation on this call. Barry Neil, and I will provide some introductory remarks referencing that presentation and then open it up to 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 current expectations and on information 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 annual report on form 10K. And in the subsequent reports, we filed with the SEC.
The information provided on this conference call should be considered in light of such risks. We'll also discuss certain non-gaap measures, which is a reminder, include adjusted ibida, which will refer to today as ibitta for Simplicity during the call.
I'll also refer you to our earnings. Releases investor presentations are public filings with the SEC and again to the investor relations section of our website for all comparable. Gaap measures in full reconciliation for material non-gaap measures. And now I'll hand it over to Barry.
Morning, everyone.
We have a solid fourth quarter uh at the company. It was a confident finish to a year that we that was defined by Focus and execution people grew digital Revenue by 14%
To find the expectations of all the digital Publishers and doubters.
People's financial performance amid. Increasing AI disruption speaks really loudly. AI overviews are now appearing on most of our queries and we're delivering record results as I've said before, people have prepared for this disruption for years, and with Brands able to travel, where the audiences are not just our sites and apps, but across all social, media news platforms, video events,
We're expanding with the surge of new products and experiencing where and and experiences wherever audiences engage but at its core. Our strategy of people is not to rely on a Daily Grind of conventional digital publishing to propel our future.
As I, uh, talked about last time that I was on this call, we're in the process of inverting, these iconic, traditional content businesses into entirely new consumer businesses. Products that stand on their own and revenue streams with stronger. Immunity against this intermediation. This isn't hypothetical. We're on our way, right? Right now, working through several Concepts at Southern tea, this this C iconically, wonderful magazine, that is beloved by its audience. And uh, and has a uh, a product
Product. But
But often describes the experience of Southern tea, a particular kind of tea that you only get in the South. We're going to do introduce, uh, Southern peas Southern tea as a product that we will own and then distribute.
The, uh, the the process and come up with products and services that we can brand and then we can promote through our, how many books? Do we distribute any a year? Like, 350 million.
Yeah, in the neighborhood. Yeah.
In the neighborhood. Why did I get the ZIP code?
No, no, that's that's right, that's exactly. That's exactly right. Yes.
So we we not only, we have that. So we have these books adding the page 2 Pages, 3 Pages costs virtually, nothing. So we can sell through a unique ways almost anything that no 1 else can do and we've got that's that's just for we want to do Standalone page ads but we also can do editorial, uh, about these products of ours. So if we get, I if C inconceivable to me that we can't take these books that know more about their domains than anybody else.
Anywhere. So, chat GPT knows everything. And and and and and if if it does out of it long before, we will have figured out new business lines that you can't disintermediate by AI. But what I'm saying is we know so much about all these domains and we can use that creatively to say. All right. What is possible for us to do out of that knowledge that we can
Can create a new product or service. I think that is the gold mine of of uh of people in the ensuing years.
The other pillar is MGM.
Uh and uh as we had said, we increased our ownership of MGM.
We repurchased more IA in the quarter, we bought about 1%. I think it is of MGM, so we could get to 25%, which is an important
uh, actual uh, accounting milestone for us. Uh,
We've uh, bought stock back, uh, of 337 million.
in 26, we're going to continue to evaluate 5x as we always do opportunistically and we are
Ever mindful of this huge discount in the value of IC.
We really do have a formative. I really do believe.
Deeply believe we have a real growth injured in people. Uh we are out competing anyone else in digital publishing.
And with all the headwinds and all the things that are that happen to digital publishing and Publishing in general that are downsides for us, every 1 of them seem to be upside, that's our different distinction.
Anyway, if it ain't obvious, I am bullish on what 26,000 store and with that, I'm anxious to get to your questions and I hope Chris will be relatively brief in his remarks.
Thank you, BD. Um,
I'll start talking on page 5 of the presentation about people's financial performance. It was a strong quarter across the board with the business delivering 14% digital Revenue growth driven by solid execution across all 3 Revenue categories, advertising, Performance, Marketing and Licensing.
Advertising grew 9% in the quarter returning to growth and doing. So, despite a 13% decline in core sessions, Neil will go in more depth on this front. But this highlights the success of the off-platform strategy and the strength of people's Brands, amidst AI, headwinds
Performance Marketing, grew 17% in the quarter, over the important holiday period reflecting both excellent execution by Neil's team and the strength of the consumer.
Barry Diller: which is more IAC in the quarter. We bought about 1%, I think it is, of MGM, so we could get to 25%, which is an important, actual, accounting milestone for us. We've bought stock back, about $337 million. In 2026, we're gonna continue to evaluate buybacks, as we always do, opportunistically, and we are ever mindful of this huge discount in the value of IAC. We really do have a formative, I really do believe, deeply believe, we have a real growth engine in People. We are outcompeting anyone else in digital publishing, and with all the headwinds and all the things that happened to digital publishing and publishing in general, that are downsides, for us, every one of them seem to be upsides. That's our different distinction.
Barry Diller: which is more IAC in the quarter. We bought about 1%, I think it is, of MGM, so we could get to 25%, which is an important, actual, accounting milestone for us. We've bought stock back, about $337 million. In 2026, we're gonna continue to evaluate buybacks, as we always do, opportunistically, and we are ever mindful of this huge discount in the value of IAC. We really do have a formative, I really do believe, deeply believe, we have a real growth engine in People. We are outcompeting anyone else in digital publishing, and with all the headwinds and all the things that happened to digital publishing and publishing in general, that are downsides, for us, every one of them seem to be upsides. That's our different distinction.
So we could get to 25% which is an important.
Finally licensing, grew 36% driven by robust engagement with our content across Apple news, and content, syndication partners, and the new AI content partnership with meta contributed, a little bit to growth as well.
Actual accounting milestone for us.
Uh huh.
We've uh, bought stock back, uh, of 337 million.
In 26, we're going to continue to evaluate BuyBacks as we always do opportunistically.
And we are.
The print segment declined, 23% as expected, due partly to 20 million of Revenue in the prior period, from political advertising, which we flagged previously and partly to the continued. Sectoral decline in print adjusted. Ibiza was solid in the quarter growing 9% in digital when you adjust for severance expense a year ago and with with incremental digital margins at 26%,
Ever mindful of this huge discount in the value of IA.
We really do have a formative. I really do believe.
Print produced 13 million of adjusted ebit on the quarter down from a year ago for the reason stated earlier, but more than enough to offset 9 million of corporate expenses.
Deeply believe we have a real growth injury in people.
Uh, we are out competing anyone else in digital publishing.
so the fourth quarter cap to solid year 1.8 billion of Revenue, 1.1 billion of that digital Revenue growing 10%,
Barry Diller: Anyway, if it ain't obvious, I am bullish on what 26 has in store, and with that, I'm anxious to get to your questions, and I hope Chris will be relatively brief in his remarks.
Barry Diller: Anyway, if it ain't obvious, I am bullish on what 26 has in store, and with that, I'm anxious to get to your questions, and I hope Chris will be relatively brief in his remarks.
And with all the headwinds and all the things that happen to digital publishing, and publishing in general, that are downsides for us, every one of them seems to be upside—that's our different distinctions.
Christopher Halpin: Thank you, BD. I'll start talking on page 5 of the presentation about People's Financial Performance. It was a strong Q4 across the board, with the business delivering 14% digital revenue growth, driven by solid execution across all three revenue categories: advertising, performance marketing, and licensing. Advertising grew 9% in the quarter, returning to growth and doing so despite a 13% decline in core sessions. Neil will go in more depth on this front, but this highlights the success of the off-platform strategy and the strength of People's brands amidst AI headwinds. Performance marketing grew 17% in the quarter over the important holiday period, reflecting both excellent execution by Neil's team and the strength of the consumer.
Chris Halpin: Thank you, BD. I'll start talking on page 5 of the presentation about People's Financial Performance. It was a strong Q4 across the board, with the business delivering 14% digital revenue growth, driven by solid execution across all three revenue categories: advertising, performance marketing, and licensing. Advertising grew 9% in the quarter, returning to growth and doing so despite a 13% decline in core sessions. Neil will go in more depth on this front, but this highlights the success of the off-platform strategy and the strength of People's brands amidst AI headwinds. Performance marketing grew 17% in the quarter over the important holiday period, reflecting both excellent execution by Neil's team and the strength of the consumer.
Anyway, if it ain't obvious, I am bullish on what 26,000 stores, and with that, I'm anxious to get to your questions and I hope Chris will be relatively brief in his remarks.
Thank you Bey. Um,
I'll start talking on page 5 of the presentation about people's financial performance. It was a strong quarter across the board with the business delivering 14% digital Revenue growth driven by solid execution across all 3 Revenue categories, advertising, Performance, Marketing and Licensing.
331 million for the year reflecting the exclusion of the 41 million in gains from lease buyouts and the 15 million in third quarter, Severance and digital full year, ibitta margins were essentially flat year-over-year at 28% with that. I will hand it to Neil to go deeper into people's strategy and performance. Hi guys. Thanks Chris. Thanks Barry. I I too will go against my nature and be as brief as I can. And hit the highlights here. Uh, we had a we had a really strong quarter as you guys all know, the publishing and web ecosystem has been changing dramatically and we've been working hard to change along with it the strategies we've outlined you and have been talking about. They're working as as Chris and Barry said we had 14% digital Revenue growth in the quarter. It's a testament to the strength of the brands, truly, the strength of the brands and our team's execution, uh, key is the diversity of our Revenue models and the breadth of the industry sectors in which we compete, is also a real strength, and I think importantly, in Q4 alongside our growth, we continue to invest heavily.
Advertising grew 9% in the quarter, returning to growth and doing so despite a 13% decline in core sessions. Neil will go in more depth on this front. But this highlights the success of the off-platform strategy and the strength of people's brands, amidst AI headwinds.
Christopher Halpin: Finally, licensing grew 36%, driven by robust engagement with our content across Apple News and content syndication partners, and the new AI content partnerships with Meta contributed a little bit to growth as well. The print segment declined 23%, as expected, due partly to $20 million of revenue in the prior period from political advertising, which we flagged previously, and partly to the continued sectoral decline in print. Adjusted EBITDA was solid in the quarter, growing 9% in digital when you adjust for severance expense a year ago, and with incremental digital margins at 26%. Print produced $13 million of adjusted EBITDA in the quarter, down from a year ago for the reasons stated earlier, but more than enough to offset $9 million of corporate expenses.
Chris Halpin: Finally, licensing grew 36%, driven by robust engagement with our content across Apple News and content syndication partners, and the new AI content partnerships with Meta contributed a little bit to growth as well. The print segment declined 23%, as expected, due partly to $20 million of revenue in the prior period from political advertising, which we flagged previously, and partly to the continued sectoral decline in print. Adjusted EBITDA was solid in the quarter, growing 9% in digital when you adjust for severance expense a year ago, and with incremental digital margins at 26%. Print produced $13 million of adjusted EBITDA in the quarter, down from a year ago for the reasons stated earlier, but more than enough to offset $9 million of corporate expenses.
Performance Marketing, grew 17% in the quarter, over the important holiday period reflecting both excellent execution by Neil's team and the strength of the consumer.
In a raft of new products and services. Some of which you can see here on this, uh, slide which I believe is Page 6 in your deck, the new food and wine classic in Charleston exceed. Our expectations, we had our most successful media cycle in the history of the rejuvenated. Sexiest Man Alive franchise. A very important franchise for people. And in Styles, popular, the intern social video, franchise has become a real blueprint for, uh, what we're able to do all platforms and we made Solid progress, which I'm sure we'll get to in the Q&A on an initiative as we
Finally licensing, grew 36% driven by robust engagement with our content across Apple news, and content, syndication partners, and the new AI content partnership with meta contributed, a little bit to growth as well.
We discussed, like, decipher and my recipes, and the People app, and there's a lot more to come. As BD said, uh, we are energized. Uh, we feel really good about where we are and we did all this in the face of a lot of disruption. Let's go to the next slide and we can talk through that. We delivered this quarter.
The print segment declined 23%, as expected, due partly to $20 million of revenue in the prior period from political advertising, which we flagged previously, and partly to the continued sectoral decline in print adjusted. EBITDA was solid in the quarter, growing 9% in digital when you adjust for severance expense a year ago, and with incremental dig...
Digital margins at 26%.
In despite of a very challenging environment to core web sessions, looking at the core sessions, we're down, 13% year-over-year on the quarter, the biggest contributor to that is a 50% drop in Google search referrals over the last 2 years.
Christopher Halpin: So the Q4 capped a solid year, $1.8 billion of revenue, $1.1 billion of that digital revenue growing 10%. Aggregate adjusted EBITDA was $331 million for the year, reflecting the exclusion of the $41 million in gains from lease buyouts and the $15 million in Q3 severance. Digital full-year EBITDA margins were essentially flat year-over-year at 28%. With that, I will hand it to Neil to go deeper into People's strategy and performance.
Chris Halpin: So the Q4 capped a solid year, $1.8 billion of revenue, $1.1 billion of that digital revenue growing 10%. Aggregate adjusted EBITDA was $331 million for the year, reflecting the exclusion of the $41 million in gains from lease buyouts and the $15 million in Q3 severance. Digital full-year EBITDA margins were essentially flat year-over-year at 28%. With that, I will hand it to Neil to go deeper into People's strategy and performance.
uh, this quarter, we also saw a little softness in um,
Print produced $13 million of adjusted EBIT on the quarter, down from a year ago for the reason stated earlier, but more than enough to offset $9 million of corporate expenses.
so, the fourth quarter cap to solid year,
Neil Vogel: Hi, guys. Thanks, Chris. Thanks, Barry. I too will go against my nature and be as brief as I can and hit the highlights here. We had a really strong quarter. As you guys all know, the publishing and web ecosystem has been changing dramatically, and we've been working hard to change along with it. The strategies we've outlined to you and have been talking about, they're working. As Chris and Barry said, we have 14% digital revenue growth in the quarter. It's a testament to the strength of the brands, truly the strength of the brands and our team's execution. Key is the diversity of our revenue models, and the breadth of the industry sectors in which we compete is also a real strength.
Chris Halpin: Hi, guys. Thanks, Chris. Thanks, Barry. I too will go against my nature and be as brief as I can and hit the highlights here. We had a really strong quarter. As you guys all know, the publishing and web ecosystem has been changing dramatically, and we've been working hard to change along with it. The strategies we've outlined to you and have been talking about, they're working. As Chris and Barry said, we have 14% digital revenue growth in the quarter. It's a testament to the strength of the brands, truly the strength of the brands and our team's execution. Key is the diversity of our revenue models, and the breadth of the industry sectors in which we compete is also a real strength.
Non search traffic sources, mainly driven by declines in Google discover, which is their version of Apple news which had been a contributor to non Search growth earlier in the year. However, offsetting the effects, of course, sessions decline. It's a continued rapid growth in our off platform and distributed audiences. You can see off platform views, have nearly doubled in the last 2 years and grew 43% last quarter a year over year. There's a real momentum here. This is the continuation of a pronounced shift in our business. We are aligning our efforts and resources to connect with audiences where they are now. We are going where the people are Our Brands have great momentum across everything from Instagram, to Apple news to Tik Tok to YouTube, as well as real cultural clout in our 10 pole events and our operated properties. And the non-section based growth is underpinning. Our financial story and the next slide really gets some color on that.
1.8 billion of Revenue, 1.1 billion of that digital Revenue growing 10% aggregate adjusted. Evita was 331 million for the year, reflecting the exclusion of the 41 million in gains from lease buyouts and the 1534 quarter. Severance and digital full year, ibitta margins were essentially flat year-over-year at 28% with that. I will hand it to Neil to go deeper into people's strategy and performance. Hi guys. Thanks Chris. Thanks Barry. I I too will go against my nature and be as brief as I can and hit the highlights here. We had a, we had a really strong quarter as you guys all know, the publishing and web ecosystem has been changing dramatically and we've been working hard to change along with it the strategies we've outlined you and have been talking about. They're working as as Chris and Barry said we had 14% digital Revenue growth in the quarter. It's a testament to the strength of the brands, truly the strength of the brands, and our team's execution, a key is the diversity of our Revenue models and the breadth of the industry, sectors in which
Neil Vogel: And, I think importantly, in Q4, alongside our growth, we continued to invest heavily in a raft of new products and services, some of which you can see here on this slide, which I believe is page 6 in your deck. The new Food & Wine Classic in Charleston exceed our expectations. We had our most successful media cycle in the history of the rejuvenated Sexiest Man Alive franchise, a very important franchise for People. And InStyle's Popular, the interim social video franchise, has become a real blueprint for what we're able to do off platform. And we made solid progress, which I'm sure we'll get to in the Q&A, on initiatives we discussed, like D/Cipher, MyRecipes, and the People app, and there's a lot more to come, as BD said.
Chris Halpin: And, I think importantly, in Q4, alongside our growth, we continued to invest heavily in a raft of new products and services, some of which you can see here on this slide, which I believe is page 6 in your deck. The new Food & Wine Classic in Charleston exceed our expectations. We had our most successful media cycle in the history of the rejuvenated Sexiest Man Alive franchise, a very important franchise for People. And InStyle's Popular, the interim social video franchise, has become a real blueprint for what we're able to do off platform. And we made solid progress, which I'm sure we'll get to in the Q&A, on initiatives we discussed, like D/Cipher, MyRecipes, and the People app, and there's a lot more to come, as BD said.
You go to flight 8, you I see deck, this slide clearly shows that our non session based Revenue sources are now the fastest growing part of our business. Again, non session based revenue revenue, not based on web sessions. Now, comprises about 38% of total, digital revenue, and I grew 37% year-over-year in Q4. This growth is led by decipher our events businesses Creator and social models, including the feed, feed acquisition, uh, our deep partnership with apple moves and our AI licensing deals. Uh, at the same time,
Neil Vogel: We are energized, we feel really good about where we are, and we did all this in the face of a lot of disruption. Let's go to the next slide, and we can talk through that. We delivered this quarter in spite of a very challenging environment to Core Sessions. Looking at the Core Sessions, we're down 13% year-over-year in the quarter. The biggest contributor to that is a 50% drop in Google Search referrals over the last two years. This quarter, we also saw a little softness in non-search traffic sources, mainly driven by declines in Google Discover, which is their version of Apple News, which had been a contributor to non-search growth earlier in the year. However, offsetting the effects of Core Sessions decline is a continued rapid growth in our off-platform and distributed audiences.
Neil Vogel: We are energized, we feel really good about where we are, and we did all this in the face of a lot of disruption. Let's go to the next slide, and we can talk through that. We delivered this quarter in spite of a very challenging environment to Core Sessions. Looking at the Core Sessions, we're down 13% year-over-year in the quarter. The biggest contributor to that is a 50% drop in Google Search referrals over the last two years. This quarter, we also saw a little softness in non-search traffic sources, mainly driven by declines in Google Discover, which is their version of Apple News, which had been a contributor to non-search growth earlier in the year. However, offsetting the effects of Core Sessions decline is a continued rapid growth in our off-platform and distributed audiences.
We compete is also a real strength, and I think importantly, in Q4, alongside our growth, we continue to invest heavily in a raft of new products and services. Some of which you can see here on this, uh, slide, which I believe is page 6 in your deck. The new Food and Wine Classic in Charleston exceeded our expectations. We had our most successful media cycle in the history of the rejuvenated Sexiest Man Alive franchise—a very important franchise of People and in Styles, popular. The Intern social video franchise has become a real blueprint for, uh, what we're able to do off platform, and we made solid progress—which I'm sure we'll get to in the Q&A—on initiatives, as we discussed, like Decipher, and My Recipes, and the People app. And there's a lot more to come. As Speedy said, uh, we are energized, uh, we feel really good about where we are, and we did all this in the face of a lot of disruption. Let's go to the next slide and we can talk through that. We delivered this quarter.
Despite of a very challenging environment to core web sessions, looking at the core sessions, we're down, 13% year-over-year on the quarter, the biggest contributor to that is a 50% drop in Google search referrals over the last 2 years.
Uh, this quarter, we also saw a little softness in, um,
Sessions based Revenue with 62% of total revenue and grew at 4% uh year-over-year. We absorbed the declines in Google referral traffic by delivering. Great premium sales quarter across Our Brands and showed continued strength in our Performance Marketing business. The brands are still super strong and advertisers, uh, and marketers are really interested in these Brands both in the new environments and in the traditional environments, look, this is this is the model for our future strong growth from non session-based revenue streams led by a growth in all platform audiences and decipher and executing against our session. Based businesses while absorbing we continue to clients and referral traffic from Google and other platforms, we're, we're super proud of this quarter. We have a solid model as BD talked about. We got a lot of a lot of seeds planted and we're excited and we had a clear path in front of us. We've got a ton to do, but we got the teams and we think we have a real strategy to succeed.
So with that, I will uh, kick it back to Chris. Uh, thanks Neil. Moving to page 10. Let's talk through performance at our other Consolidated businesses.
Neil Vogel: You can see off-platform views have nearly doubled in the last two years and grew 43% last quarter, year-over-year. There's real momentum here. This is a continuation of a pronounced shift in our business. We are aligning our efforts and resources to connect with audiences where they are now. We are going where the people are. Our brands have great momentum across everything from Instagram to Apple News, to TikTok, to YouTube, as well as real cultural clout in our tentpole events and our operated properties. And the non-session-based growth is underpinning our financial story, and the next slide really gets some color on that. If you go to slide 8 in the IAC deck, this slide clearly shows that our non-session-based revenue sources are now the fastest-growing part of our business.
Neil Vogel: You can see off-platform views have nearly doubled in the last two years and grew 43% last quarter, year-over-year. There's real momentum here. This is a continuation of a pronounced shift in our business. We are aligning our efforts and resources to connect with audiences where they are now. We are going where the people are. Our brands have great momentum across everything from Instagram to Apple News, to TikTok, to YouTube, as well as real cultural clout in our tentpole events and our operated properties. And the non-session-based growth is underpinning our financial story, and the next slide really gets some color on that. If you go to slide 8 in the IAC deck, this slide clearly shows that our non-session-based revenue sources are now the fastest-growing part of our business.
13%, Enterprise Revenue declined for the quarter.
This decline is exacerbated by some particularly robust client usage and out of period, client true-ups, in Q4 24.
We believe both consumer and Total Care revenue and aggregate will return to growth by mid year.
Neil Vogel: Again, non-session-based revenue, revenue not based on web sessions, now comprises about 38% of total digital revenue, and it grew 37% year-over-year in Q4. This growth is led by D/Cipher, our events businesses, creator and social models, including the Feedfeed acquisition, our deep partnership with Apple News, and our AI licensing deals. At the same time, sessions-based revenue was 62% of total revenue and grew at 4% year-over-year. We absorbed the declines in Google referral traffic by delivering great premium sales quarter across our brands and showed continued strength in our performance marketing business. The brands are still super strong, and advertisers and marketers are really interested in these brands, both in the new environments and the traditional environments. Look, this is, this is the model for our future.
Neil Vogel: Again, non-session-based revenue, revenue not based on web sessions, now comprises about 38% of total digital revenue, and it grew 37% year-over-year in Q4. This growth is led by D/Cipher, our events businesses, creator and social models, including the Feedfeed acquisition, our deep partnership with Apple News, and our AI licensing deals. At the same time, sessions-based revenue was 62% of total revenue and grew at 4% year-over-year. We absorbed the declines in Google referral traffic by delivering great premium sales quarter across our brands and showed continued strength in our performance marketing business. The brands are still super strong, and advertisers and marketers are really interested in these brands, both in the new environments and the traditional environments. Look, this is, this is the model for our future.
Care adjusted, Evita was excellent, in 19 million for the quarter generating 22% IBA margins normalized on a year-over-year basis. Profitability was essentially flat uh as Karen Kurt 9 million in legal charges and 2.1 2.5 million in Severance in the fourth quarter last year.
You go to slide 8 now, I see deck, this slide clearly shows that our non session based Revenue sources are now the fastest growing part of our business. Again, non session based revenue revenue, not based on web sessions. Now, comprises about 38% of total, digital revenue, and I grew 37% year-over-year in Q4. This growth is led by decipher our events businesses Creator and social models, including the feed, feed acquisition, uh, our deep partnership with apple moves and our AI licensing deals. Uh, at the same time,
Emerging in other Revenue, grew 18% and flipped to profitability with 3 million in adjusted ibida. The revenue growth was the output of strong performance at The Daily Beast, where revenues grew 50%, and at Vivian, which grew in the fourth quarter for the first time since Q3 24 and has regained its momentum.
Neil Vogel: Strong growth from non-session-based revenue streams, led by our growth in off-platform audiences at D/Cipher, and executing against our session-based businesses while absorbing continued declines in referral traffic from Google and other platforms. We're super proud of this quarter. We have a solid model, as Beadie talked about. We got a lot of seeds planted, and we're excited, and we got a clear path in front of us. We've got a ton to do, but we got the teams, and we think we have a real strategy to succeed. So with that, I will kick it back to Chris.
Neil Vogel: Strong growth from non-session-based revenue streams, led by our growth in off-platform audiences at D/Cipher, and executing against our session-based businesses while absorbing continued declines in referral traffic from Google and other platforms. We're super proud of this quarter. We have a solid model, as Beadie talked about. We got a lot of seeds planted, and we're excited, and we got a clear path in front of us. We've got a ton to do, but we got the teams, and we think we have a real strategy to succeed. So with that, I will kick it back to Chris.
Both businesses were profitable in the quarter and the year-over-year picture further, improved due to the resolution of the Legacy legal matter. We mentioned on our earning, our last earnings call finally corporate adjusted ibida was 23 million down from a year ago and last quarter, as we continue to reduce our overhead, uh, and get back into the mid, 80 million range on an annualized basis. Turning to the next page, we'll talk about guidance.
Sessions based Revenue with 62% of total revenue and grew at 4% uh, year-over-year. We absorbed through the clients in Google referral traffic by delivering. Great premium sales quarter across Our Brands and show continued strength that our Performance Marketing business. The brands are still super strong and advertisers, uh, and marketers are really interested in these Brands both in the new environments and the traditional environments. Look, this is this is the model for our future, strong growth from non session-based revenue streams led by our growth and all platform audiences and decipher and executing against our session. Based businesses while absorbing we continue to clients and referral traffic from Google and other platforms, we're, we're super proud of this quarter. We have a solid model as BD talked about. We got a lot of a lot of seeds planted and we're excited and we had a clear path in front of us. We've got a ton to do, but we got the teams and we think we have a real strategy to succeed.
Christopher Halpin: Thanks, Neil. Moving to page 10, let's talk through performance at our other consolidated businesses. Care saw a 9% revenue decline in the quarter, driven by softness in enterprise, which we highlighted last quarter. Consumer revenue declined 4%, steady with last quarter, and we continue to see the benefits of Care's product improvements, marketing investment, and add-on offerings bearing fruit. On the enterprise side, as employers have tightened their benefits spend, many have adjusted their existing programs, leading to a 13% enterprise revenue decline for the quarter. This decline is exacerbated by some particularly robust client usage and out-of-period client true-ups in Q4 2024. We believe both consumer and total Care revenue in aggregate will return to growth by midyear. Care-adjusted EBITDA was excellent at $19 million for the quarter, generating 22% EBITDA margins.
Chris Halpin: Thanks, Neil. Moving to page 10, let's talk through performance at our other consolidated businesses. Care saw a 9% revenue decline in the quarter, driven by softness in enterprise, which we highlighted last quarter. Consumer revenue declined 4%, steady with last quarter, and we continue to see the benefits of Care's product improvements, marketing investment, and add-on offerings bearing fruit. On the enterprise side, as employers have tightened their benefits spend, many have adjusted their existing programs, leading to a 13% enterprise revenue decline for the quarter. This decline is exacerbated by some particularly robust client usage and out-of-period client true-ups in Q4 2024. We believe both consumer and total Care revenue in aggregate will return to growth by midyear. Care-adjusted EBITDA was excellent at $19 million for the quarter, generating 22% EBITDA margins.
So with that, I will uh, kick it back to Chris. Uh, thanks Neil. Moving to page 10. Let's talk through performance at our other Consolidated businesses.
I IEC is always managed our businesses for the long term, not on a quarterly basis. At a high level. We will stop providing quarterly guidance as we do, not believe it's productive for our businesses to focus on short-term results. Particularly people as it navigates fundamental shifts in its industry, we want our businesses to remain focused on execution, and long-term value creation. And this change also reflects proactive feedback from some investors as in the past, we make changes to our guidance. Based on what we believe is best for the businesses, and our shareholders, we will help how however continue to provide annual guidance as summarized on page 11.
Care saw 9% Revenue declines in the quarter driven by softness and Enterprise which we highlighted last quarter, consumer Revenue declined, 4% steady with last quarter and we continue to see the benefits of car's product improvements, marketing investment and add-on. Offerings bearing fruits on the Enterprise side, as employers have tightened their benefits, spend
many of adjusted their existing programs leading to a 13%, Enterprise Revenue decline for the quarter.
For People Inc, we expect both digital revenue and digital adjusted Eva to grow mid to high single digits. For the year, we are forecasting approximately 15 million in litigation expenses. This year related to our Google adtech litigation which will result in corporate expense. Exceeding print adjusted EBA by that amount.
This decline is exacerbated by some particularly robust client usage and out of period, client true-ups in Q4 2424.
We believe both Consumer and Total Care revenue and aggregate will return to growth by mid-year.
Christopher Halpin: Normalized on a year-over-year basis, profitability was essentially flat, as Care incurred $9 million in legal charges and $2.1-$2.5 million in severance in the fourth quarter last year. Emerging and other revenue grew 18% and flipped to profitability, with $3 million in Adjusted EBITDA. The revenue growth was the output of strong performance at The Daily Beast, where revenues grew 50%, and at Vivian, which grew in the fourth quarter for the first time since Q3 2024 and has regained its momentum. Both businesses were profitable in the quarter, and the year-over-year picture further improved due to the resolution of the legacy legal matter we mentioned on our last earnings call.
Chris Halpin: Normalized on a year-over-year basis, profitability was essentially flat, as Care incurred $9 million in legal charges and $2.1-$2.5 million in severance in the fourth quarter last year. Emerging and other revenue grew 18% and flipped to profitability, with $3 million in Adjusted EBITDA. The revenue growth was the output of strong performance at The Daily Beast, where revenues grew 50%, and at Vivian, which grew in the fourth quarter for the first time since Q3 2024 and has regained its momentum. Both businesses were profitable in the quarter, and the year-over-year picture further improved due to the resolution of the legacy legal matter we mentioned on our last earnings call.
Absent litigation expense. We would expect them to offset when rolled up that produces, our guidance range of 310 to 340 million of total adjusted ebit off for People Inc, I would note this range implies digital adjusted EV but uh, of 325 to 35 355 million for the year compared to 315 million in 2025. We are expecting care adjusted Eva, 45 to 55 million with consumer returning, the Top Line.
Their adjusted, Evita was excellent, in 19 million for the quarter generating 22%. EBA margins normalized on a year-over-year basis. Profitability was essentially flat uh as Karen Kurt 9 million in legal charges and 2.1 2.5 million in Severance in the fourth quarter last year.
Growth by the middle of the year.
Emerging and other revenue grew 18% and flipped to profitability with $3 million in adjusted EBITDA. The revenue growth was the output of strong performance at The Daily Beast, where revenues grew 50%, and at Vivian, which grew in the fourth quarter for the first time since Q3 '24 and has regained its momentum.
Christopher Halpin: Finally, corporate-adjusted EBITDA was $23 million, down from a year ago and last quarter, as we continue to reduce our overhead, and get back into the mid-80 million range on an annualized basis. Turning to the next page, we'll, we'll talk about guidance. IAC, IAC has always managed our businesses for the long term, not on a quarterly basis. At a high level, we will stop providing quarterly guidance, as we do not believe it's productive for our businesses to focus on short-term results, particularly People, as it navigates fundamental shifts in its industry. We want our businesses to remain focused on execution and long-term value creation, and this change also reflects proactive feedback from some investors. As in the past, we make changes to our guidance based on what we believe is best for the businesses and our shareholders.
Chris Halpin: Finally, corporate-adjusted EBITDA was $23 million, down from a year ago and last quarter, as we continue to reduce our overhead, and get back into the mid-80 million range on an annualized basis. Turning to the next page, we'll, we'll talk about guidance. IAC, IAC has always managed our businesses for the long term, not on a quarterly basis. At a high level, we will stop providing quarterly guidance, as we do not believe it's productive for our businesses to focus on short-term results, particularly People, as it navigates fundamental shifts in its industry. We want our businesses to remain focused on execution and long-term value creation, and this change also reflects proactive feedback from some investors. As in the past, we make changes to our guidance based on what we believe is best for the businesses and our shareholders.
Our search segment which comprises ask Media or AMG a search monetization business has innovated while navigating a complex and challenging search ecosystem for more than a decade. A reminder that our search segment is managed for margin not growth and has not been an area of strategic focus at IE for a long time as it is steadily shrunk in size and materiality as disclosed in our recent AK, we are in negotiations with Google which supplies paid listings to AMG to extend our relationship and the outcome of those. Negotiations will likely determine the future of the business at present. We are guiding to a range of negative 5 million to positive 10 million of adjusted ebita.
Both businesses were profitable in the quarter, and the year-over-year picture further improved due to the resolution of the legacy legal matter. We mentioned on our last earnings call, finally, corporate adjusted EBITDA was $23 million, down from a year ago and last quarter, as we continue to reduce our overhead and get back into the mid-$80 million range on an annualized basis. Turning to the next page, we'll talk about guidance.
And we expect to know a lot more over the next 90 days.
Emerging in others, should continue to grow Top Line. Thanks to Vivian and The Daily Beast.
And we are expecting 0 to 10 million of ebata there and finally corporate expenses expected to be 80 to 90 million. And we will continue to work to come in at the bottom of that range.
Christopher Halpin: We will however, continue to provide annual guidance, as summarized on page 11. For People Inc., we expect both digital revenue and digital adjusted EBITDA to grow mid to high single digits for the year. We are forecasting approximately $15 million in litigation expenses this year related to our Google Ad Tech litigation, which will result in corporate expense exceeding print-adjusted EBITDA by that amount. Absent the litigation expense, we would expect them to offset. When rolled up, that produces our guidance range of $310 to 340 million of total adjusted EBITDA for People Inc. I would note, this range implies digital-adjusted EBITDA of $325 to 355 million for the year, compared to $315 million in 2025.
Chris Halpin: We will however, continue to provide annual guidance, as summarized on page 11. For People Inc., we expect both digital revenue and digital adjusted EBITDA to grow mid to high single digits for the year. We are forecasting approximately $15 million in litigation expenses this year related to our Google Ad Tech litigation, which will result in corporate expense exceeding print-adjusted EBITDA by that amount. Absent the litigation expense, we would expect them to offset. When rolled up, that produces our guidance range of $310 to 340 million of total adjusted EBITDA for People Inc. I would note, this range implies digital-adjusted EBITDA of $325 to 355 million for the year, compared to $315 million in 2025.
Finally page, 12 summar, is our continued buyback activities as Barry mentioned with our purchases since last or earnings. We have bought back 337 million of our shares over the past 12 months and reduced our share count by 10% with that. Let's go to questions. Operator first question
Feedback from some investors. As in the past, we make changes to our guidance. Based on what we believe is best for the businesses and our shareholders, we will help however continue to provide annual guidance as summarized on page 11.
We will now begin the question and answer session to ask a question. You may press star then 1 on your telephone keypad. If you're using a speaker-phone please pick up your handset before pressing the keys to withdraw your question. Please press star and then 2, our first question comes from Ross. Sandler with Barkley's, please go ahead.
For People Inc, we expect both digital revenue and digital adjusted EBA to grow mid- to high-single digits. For the year, we are forecasting approximately $15 million in litigation expenses this year related to our Google Ad Tech litigation, which will result in corporate expense exceeding print adjusted EBA by that amount.
Christopher Halpin: We are expecting Care-adjusted EBITDA of $45 to 55 million, with consumer returning to top-line growth by the middle of the year. Our search segment, which comprises Ask Media Group, or AMG, a search monetization business, has innovated while navigating a complex and challenging search ecosystem for more than a decade. A reminder that our search segment is managed for margin, not growth, and has not been an area of strategic focus at IAC for a long time, as it has steadily shrunk in size and materiality. As disclosed in our recent 8-K, we are in negotiations with Google, which supplies paid listings to AMG, to extend our relationship, and the outcome of those negotiations will likely determine the future of the business.
Chris Halpin: We are expecting Care-adjusted EBITDA of $45 to 55 million, with consumer returning to top-line growth by the middle of the year. Our search segment, which comprises Ask Media Group, or AMG, a search monetization business, has innovated while navigating a complex and challenging search ecosystem for more than a decade. A reminder that our search segment is managed for margin, not growth, and has not been an area of strategic focus at IAC for a long time, as it has steadily shrunk in size and materiality. As disclosed in our recent 8-K, we are in negotiations with Google, which supplies paid listings to AMG, to extend our relationship, and the outcome of those negotiations will likely determine the future of the business.
Absent litigation expense. We would expect them to offset when rolled up that produces, our guidance range of 310 to 340 million of total, adjusted ebit for People Inc. I would note this range implies digital adjusted EV but, uh, of 325 to 35 355 million for the year compared to 315 million in 2025.
We are expecting a care-adjusted EVA of $45 to $55 million, with consumers returning and top line growth by the middle of the year.
Our search segment which comprises ask Media or AMG a search monetization business has innovated while navigating a complex and challenging search ecosystem for more than a decade. A reminder that our search segment is managed for margin not growth and has not been an area of strategic focus at IAC for a long time as it is steadily shrunk in size and materiality.
Uh, growth rate for uh people overall, thank you. Uh, wait, wait, wait, wait, wait, needle before you do. I just want to say, 1 thing about the uh, growth and and people for next year. Uh, I yes, we're conservative. And when we come out with guidance, a silly process, that why all of us engage in it? I do not know, but nevertheless, there we are. Uh, I would be very disappointed. If people did not exceed, that number people has momentum, uh, it is getting these areas that were developing are going to take time to develop but that machine is so well-run. Uh and I think it's going to produce more than you are saying in your guidance. So I know you'll all get mad at me but that is what uh, life is for.
Christopher Halpin: At present, we are guiding to a range of -$5 million to $10 million of Adjusted EBITDA, and we expect to know a lot more over the next 90 days. Emerging and other should continue to grow top line, thanks to Vivian and The Daily Beast, and we are expecting $0 to $10 million of EBITDA there. Finally, corporate expense is expected to be $80 to $90 million, and we will continue to work to come in at the bottom of that range. Finally, page 12 summarizes our continued buyback activities, as Barry mentioned. With our purchases since last earnings, we have bought back $337 million of our shares over the past 12 months and reduced our share count by 10%.... With that, let's go to questions. Operator, first question, please.
Chris Halpin: At present, we are guiding to a range of -$5 million to $10 million of Adjusted EBITDA, and we expect to know a lot more over the next 90 days. Emerging and other should continue to grow top line, thanks to Vivian and The Daily Beast, and we are expecting $0 to $10 million of EBITDA there. Finally, corporate expense is expected to be $80 to $90 million, and we will continue to work to come in at the bottom of that range. Finally, page 12 summarizes our continued buyback activities, as Barry mentioned. With our purchases since last earnings, we have bought back $337 million of our shares over the past 12 months and reduced our share count by 10%.... With that, let's go to questions. Operator, first question, please.
And we expect to know a lot more over the next 90 days.
Emerging in others should continue to grow Topline. Thanks to Vivian and The Daily Beast.
It's a week, it's a week and look, I the truth is. We want expectations, expectations are good and the rough. Go back to your, uh, question, what, what is fueling that is from, from a high level? We're we're going where the audiences are.
And if you look back like 5 years ago, this is going to be probably a longer answer than you wanted.
We were like, 70% of our traffic was from Google Search. Now it's like 30, right?
Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star and then two. Our first question comes from Ross Sandler with Barclays. Please go ahead.
Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star and then two. Our first question comes from Ross Sandler with Barclays. Please go ahead.
And we are expecting zero to 10 million of IBA there. And finally corporate expenses expected to be 80 to 90 million. And we will continue to work to come in at the bottom of that range. Finally page, 12 summar is our continued buyback activities as Barry mentioned with our purchases since last or earnings. We have bought back 337 million of our shares over the past 12 months and reduced our share count by 10% with that. Let's go to questions. Operator first question
We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.
People would look at the the internet that we compete in and they and they would say, oh my God, you guys are, you guys are too much Google. How can this say you're not Diversified enough? We would look at the market and say 90% of the web started at Google. We're bad at this like we're not good enough at 70 we should be better and what that did was gave us a really tight and close view into Google and we instrumented our business to work with Google which at the time was the dominant Source. Now that gave us 2 skills 1, we realized very very quickly.
[Analyst] (Barclays): Hey, guys. Neil, could we go back to slide 8 and the non-session-based revenue growing 37%? Could you just elaborate on, like, what are the key drivers of that line, and how do we feel about that in 2026 in the context of the mid- to high-single-digit growth rate for People overall? Thank you.
To withdraw your question. Please press star and then 2, our first question comes from Ross. Sandler with Barkley's, please go ahead.
Ross Sandler: Hey, guys. Neil, could we go back to slide 8 and the non-session-based revenue growing 37%? Could you just elaborate on, like, what are the key drivers of that line, and how do we feel about that in 2026 in the context of the mid- to high-single-digit growth rate for People overall? Thank you.
Barry Diller: Neil, before you— Wait, wait, wait, wait, wait, Neil, before you do, I just wanna say one thing about the growth and People for next year. Yes, we're conservative, and when we come out with guidance, a silly process that, why all of us engage in it, I do not know, but nevertheless, there we are. I would be very disappointed if People did not exceed that number. People has momentum. It is getting... These areas that we're developing are gonna take time to develop, but that machine is so well-run, and I think it's gonna produce more than you are saying in your guidance. So I know you'll all get mad at me, but that is what life is for.
Barry Diller: Neil, before you— Wait, wait, wait, wait, wait, Neil, before you do, I just wanna say one thing about the growth and People for next year. Yes, we're conservative, and when we come out with guidance, a silly process that, why all of us engage in it, I do not know, but nevertheless, there we are. I would be very disappointed if People did not exceed that number. People has momentum. It is getting... These areas that we're developing are gonna take time to develop, but that machine is so well-run, and I think it's gonna produce more than you are saying in your guidance. So I know you'll all get mad at me, but that is what life is for.
When Google started to change and that wasn't going to be the best source and 2. We were very early on it. So what we were able to do, 2 2 and a half years ago is we were jumping up and down and saying Google Zero internally and what it gave us to do is we developed all of these new skills and the payoff of these new skills is now we developed all these new distribution channels for our content for our audiences. Whether it's whether it's social, whether it's reaching people through events, whether it's reaching people, uh, through things like decipher, we had a sense of what the market was going and we're going with it.
The audiences are going in that direction and the advertisers are going in that direction, and we're going in that direction. And we feel like we've put together a really, really interesting pool of assets. It's different for every brand to address this and again, the proofs in the numbers, and we feel really good about what we've done. Um,
So that would be my answer.
Yeah.
Next question, thank you.
In the next question. Comes from Jason Health. With Oppenheimer. Please go ahead.
Uh, Hey guys, Neil could we go back to this slide 8 and uh, the non session based Revenue growing 37%, could you just elaborate on, like what are the key drivers of that line? And how do we feel about that in 2026 and the context of the, uh, mid to high singles? Uh, growth rate for uh, people overall. Thank you, uh, wait, wait, wait, wait, wait, needle before you do. I just want to say, 1 thing about the, uh, growth and and people for next year. Uh, I yes, we're conservative. And when we come out with guidance, a silly process, that why all of us engage in it? I do not know, but nevertheless, there we are. Uh, I would be very disappointed. If people did not exceed, that number people has momentum, uh, it is getting it, these areas that we're developing are going to take time to develop but that machine is so well-run. Uh, and I think it's going to produce more
Christopher Halpin: It's a we. It's a we.
Chris Halpin: It's a we. It's a we.
Barry Diller: It's a we.
Barry Diller: It's a we.
Then you are saying in your guidance, so I know you'll all get mad at me, but that is what, uh, life is for.
Neil Vogel: And look, the truth is, we want expectations. Expectations are good. And so Ross, to go back to your question, I think what is fueling that is from a high level, we're going where the audiences are. And if you look back, like, five years ago, and this is gonna be probably a longer answer than you wanted, we were like, 70% of our traffic was from Google Search, now it's, like, 30%, right? People would look at the internet that we compete in, and they would say, "Oh, my God, you guys are, you guys are too much Google. How can this say you're not diversified enough?" We would look at the market and say, "90% of the web started at Google. We're bad at this.
Neil Vogel: And look, the truth is, we want expectations. Expectations are good. And so Ross, to go back to your question, I think what is fueling that is from a high level, we're going where the audiences are. And if you look back, like, five years ago, and this is gonna be probably a longer answer than you wanted, we were like, 70% of our traffic was from Google Search, now it's, like, 30%, right? People would look at the internet that we compete in, and they would say, "Oh, my God, you guys are, you guys are too much Google. How can this say you're not diversified enough?" We would look at the market and say, "90% of the web started at Google. We're bad at this.
It's a Wii, it's a Wii. And look, the truth is, we want expectations, expectations are good and the rough to go back to your, uh, question, what, what is fueling that is from, from a high level? We're we're going where the audiences are.
And if you look back like 5 years ago, this is going to be probably a longer answer than you wanted.
Thank you. Um, just to 2, Barry first, um, on m&a, without being specific, but maybe in generalities, what are the types of assets that I see is interested in? Um, and obviously, we've all read about, um, you know, speculation of zero potential interest in CNN, and with that, if, if that was something, would that be done through IAC or outside of IAC, which is generally, talk about m&a, aspirations and then just secondly maybe Barry just review your uh investment thesis on MGM. And you know why? It felt that that was a good deployment of capital right now. Um, as opposed to saving the capital for BuyBacks or or uh m&a thanks.
We were like, 70% of our traffic was from Google Search. Now it's like 30%, right? People would look at the internet that we can compete in, and they would say, oh my God, you guys are—you guys are too much Google.
I'll start with MGM, its kind of self-evident. We bought the stock at uh uh what dollar level Chris.
Neil Vogel: Like, we're not good enough at 70, we should be better." And what that did was gave us a really tight and close view into Google, and we instrumented our business to work with Google, which at the time was the dominant source. Now, that gave us two skills. One, we realized very, very quickly when Google started to change, and that wasn't gonna be the best source. And two, we were very early on it. So what we were able to do 2, 2.5 years ago, is we were jumping up and down and saying Google Zero internally. And what it gave us to do is we developed all of these new skills, and the payoff of these new skills is now.
Neil Vogel: Like, we're not good enough at 70, we should be better." And what that did was gave us a really tight and close view into Google, and we instrumented our business to work with Google, which at the time was the dominant source. Now, that gave us two skills. One, we realized very, very quickly when Google started to change, and that wasn't gonna be the best source. And two, we were very early on it. So what we were able to do 2, 2.5 years ago, is we were jumping up and down and saying Google Zero internally. And what it gave us to do is we developed all of these new skills, and the payoff of these new skills is now.
About 40 million.
No, no, no 40 million.
No, our total purchase of MGM stock. Our total equity in MGM is oh, we bought a billion 3,
And it's valued at.
2, 2.2 billion.
One, we realized very, very quickly.
So that's the answer to that. Uh, that's not the full answer.
Yes, we've done very well.
We bought it at the right time. We recognized it as a a as something that we had interest in, but since we bought it and we bought more since that initial purchase
Neil Vogel: We developed all these new distribution channels for our content, for our audiences, whether it's social, whether it's reaching people through events, whether it's reaching people through things like D/Cipher. We had a sense of where the market was going, and we're going with it. The audiences are going in that direction, and the advertisers are going in that direction, and we're going in that direction. And we feel like we've put together a really, really interesting pool of assets. It's different for every brand to address this. And again, the proof's in the numbers, and we feel really good about what we've done. So that would be my answer.
Neil Vogel: We developed all these new distribution channels for our content, for our audiences, whether it's social, whether it's reaching people through events, whether it's reaching people through things like D/Cipher. We had a sense of where the market was going, and we're going with it. The audiences are going in that direction, and the advertisers are going in that direction, and we're going in that direction. And we feel like we've put together a really, really interesting pool of assets. It's different for every brand to address this. And again, the proof's in the numbers, and we feel really good about what we've done. So that would be my answer.
uh, I had become absolutely convinced that
This collection of, uh, extraordinary properties, 40% of Las Vegas is owned by MGM.
Uh, the infrastructure of Las Vegas can never be duplicated.
When Google started to change and that wasn't going to be the best source and 2. We were very early on it. So what we were able to do, 2 2 and a half years ago is we were jumping up and down and saying Google's, you know, internally and what it gave us to do is we developed all of these new skills and the payoff of these new skills is now we developed all these new distribution channels for our content for our audiences. Whether it's whether it's social, whether it's reaching people through events, whether it's reaching people, uh, through things like decipher, we had a sense of where the market was going and we're going with it.
every, every
every, every piece of what they do,
Is something that you can iterate on that, you can improve that you can innovate.
The audiences are going in that direction and the advertisers are going in that direction, and we're going in that direction. And we feel like we've put together a really, really interesting pool of assets. It's different for every brand to address this and again, the proofs in the numbers, and we feel really good about what we've done. Um,
Barry Diller: Yeah. Next question.
Barry Diller: Yeah. Next question.
uh, and give people the experience that that
So that would be my answer.
[Analyst] (Barclays): Thank you.
Ross Sandler: Thank you.
Yeah.
Operator: The next question comes from Jason Helfstein with Oppenheimer. Please go ahead.
Operator: The next question comes from Jason Helfstein with Oppenheimer. Please go ahead.
Next question, thank you.
[Analyst] (Oppenheimer): Thanks. Just two questions for Barry. First, on M&A, without being specific, but maybe in generalities, what are the types of assets that IAC is interested in? And obviously, we've all read about, you know, speculation of your potential interest in CNN, and would that, if that was something, would that be done through IAC or outside of IAC? But just generally talk about M&A aspirations. And then just secondly, maybe Barry, just review your investment thesis on MGM and, you know, why it felt that that was a good deployment of capital right now, as opposed to saving the capital for buybacks or M&A. Thanks.
Jason Helfstein: Thanks. Just two questions for Barry. First, on M&A, without being specific, but maybe in generalities, what are the types of assets that IAC is interested in? And obviously, we've all read about, you know, speculation of your potential interest in CNN, and would that, if that was something, would that be done through IAC or outside of IAC? But just generally talk about M&A aspirations. And then just secondly, maybe Barry, just review your investment thesis on MGM and, you know, why it felt that that was a good deployment of capital right now, as opposed to saving the capital for buybacks or M&A. Thanks.
Somewhat actually been hurt in the last couple of years, but uh, by by its own hand. I think the
And the next question comes from Jason Helfstein with Oppenheimer. Please go ahead.
Las Vegas, always said to people, you come here and there is value here.
Thanks, um, just 2, 2 questions for Barry first, um, on m&a, without being specific. But maybe in generalities, what are the types of assets that I see is interested in? Um, and obviously, we've all read about, um, you know, speculation of zero potential interest in CNN, and with that, if, if that was something, would that be done through IAC, or outside of IAC? Which
We've all heard of who inexpensive hotel rooms Etc. There are some inexpensive but I think the, I think the, the, the the, the town, uh, really overplayed gouged in in, in certain areas and, and I, I'm pretty sure that
Pretty sure that's going to turn.
Value will come back at the value area of part of the business.
Barry Diller: I'll start with MGM. It's kind of self-evident. We bought the stock at what dollar level, Chris?
Barry Diller: I'll start with MGM. It's kind of self-evident. We bought the stock at what dollar level, Chris?
Generally, talk about M&A aspirations, and then just secondly, maybe Barry, just review your investment thesis on MGM and, you know, why it felt that that was a good deployment of capital right now, as opposed to saving the capital for buybacks or M&A. Thanks.
Neil Vogel: $40 million.
Neil Vogel: $40 million.
I'll start with MGM—it's kind of self-evident. We bought the stock at, uh, uh, what dollar level, Chris?
About 40 million.
Barry Diller: No, no, no.
Barry Diller: No, no, no.
Neil Vogel: Forty million.
Neil Vogel: Forty million.
Barry Diller: No, our total purchase of MGM stock. Our total equity in MGM is how much?
Barry Diller: No, our total purchase of MGM stock. Our total equity in MGM is how much?
No, no, no 40 million.
Neil Vogel: Oh, oh, we bought $1.3 billion.
Neil Vogel: Oh, oh, we bought $1.3 billion.
Barry Diller: It's valued at what now?
Barry Diller: It's valued at what now?
no, our total purchase of MGM stock, our total equity in MGM is, how much, oh, we bought a billion 3,
Neil Vogel: $2.2 billion.
Neil Vogel: $2.2 billion.
And it's valued at.
Barry Diller: So that's the answer to that. But that's not the full answer. Yes, we've done very well. We bought it at the right time. We recognized it as something that we had interest in. But since we bought it, and we've bought more since that initial purchase, I have become absolutely convinced that this collection of extraordinary properties, 40% of Las Vegas is owned by MGM. The infrastructure of Las Vegas can never be duplicated. Every piece of what they do is something that you can iterate on, that you can improve, that you can innovate without huge amounts of capital, and give people the experience that somewhat actually been hurt in the last couple of years, but by its own hand, I think.
Barry Diller: So that's the answer to that. But that's not the full answer. Yes, we've done very well. We bought it at the right time. We recognized it as something that we had interest in. But since we bought it, and we've bought more since that initial purchase, I have become absolutely convinced that this collection of extraordinary properties, 40% of Las Vegas is owned by MGM. The infrastructure of Las Vegas can never be duplicated. Every piece of what they do is something that you can iterate on, that you can improve, that you can innovate without huge amounts of capital, and give people the experience that somewhat actually been hurt in the last couple of years, but by its own hand, I think.
2, 2, 2.2 billion.
We are very much in the the luxury part of the business and that, uh, has has done well, and, and as we begin this period, I think of innovation. I think we're going to turn. I think we're going to turn the town on in a way, it has not been turned on, at least in the most exciting way other than the, uh, wonderful sphere that has been planted here. So my my belief in Las Vegas in that no 1's. Going to get between the the excitement and entertainment of Las Vegas.
So that's the answer to that, uh, but that's not the full answer.
Yes, we've done very well. Uh, we bought it at the right time. We recognized it as uh, as something that we had interest in, but since we bought it and we bought more since that initial purchase
By any technical uh means of AI unless we are all in a simulation and nothing else matters. So that's Las Vegas. Then we are developing a resort in Osaka in Japan. Only gaining Resort of huge, huge, 12 billion dollars scale.
Uh, I had become absolutely convinced that this collection of, uh, extraordinary properties. 40% of Las Vegas is owned by MGM.
That uh, it's long dated or come into play until 2930, but when it does, it's going to be 1 of those golden assets.
Uh, the infrastructure of Las Vegas can never be duplicated.
uh, every every
Every piece of what they do.
Is something that you can iterate on that, you can improve that you can innovate.
Without huge, huge amounts of capital.
uh, and give people the experience that that
Barry Diller: Las Vegas always said to people, "You come here, and there is value here," as we've all heard of how inexpensive hotel rooms, et cetera. There are some inexpensive, but I think the town really overplayed, gouged in certain areas. And I'm pretty sure that's gonna turn. Value will come back, but the value area of the part of the business. We are very much in the luxury part of the business, and that has done well. And as we begin this period, I think, of innovation, I think we're gonna turn the town on in a way it has not been turned on, at least in the most exciting way, other than the wonderful Sphere that has been planted here.
So I am I I I I can't, if I look around, you say, what would interest me in m&a would be to find another opportunity like this 1. By the way, I haven't found it. I don't think it's on the Horizon, by the way. I don't really think that right now is, uh, is the time for us to be? Uh, uh. I wouldn't we never squander around. But putting like, bets down on on things that are not
Barry Diller: Las Vegas always said to people, "You come here, and there is value here," as we've all heard of how inexpensive hotel rooms, et cetera. There are some inexpensive, but I think the town really overplayed, gouged in certain areas. And I'm pretty sure that's gonna turn. Value will come back, but the value area of the part of the business. We are very much in the luxury part of the business, and that has done well. And as we begin this period, I think, of innovation, I think we're gonna turn the town on in a way it has not been turned on, at least in the most exciting way, other than the wonderful Sphere that has been planted here.
Somewhat actually been hurt in the last couple of years, but uh, by by its own hand, I think it is the Las Vegas always said to people you come here and there is value here.
That don't do not have its kind of a bromide. You never want to do it if you don't have potential. But right now, I really don't see anything at a price. That would be rational to pay, and I don't see anything that's really particularly exciting. We've got the, we've got a company that's got people, which I, I, I, I
I can only overdo, so I'll
We've all heard of who inexpensive hotel rooms Etc. There are some inexpensive but I think the I think the, the, the the, the town, uh, really overplayed gouged in in, in certain areas and and I I'm pretty sure that I'm pretty sure that's going to turn. Value will come back at the value area of the part of the business.
Not do more than I did before and what I think of the potential of people and we've got MGM and we got cash to uh continue to increase our ownership in both of those.
Uh, and yes an opportunity may come along, but, but I like the hand we have right now.
So that's a long-winded answer. Did I answer the first part of your question? Oh,
well, you asked about CNN.
We are very much in though, the luxury part of the business and that, uh, as as done well, and and as we begin this period, I think of innovation. I think we're going to turn. I think we're going to turn the town on in a way, it has not been turned on, at least in the most exciting way other than the uh wonderful.
Barry Diller: So my belief in Las Vegas is that no one's gonna get between the excitement and entertainment of Las Vegas by any technical means of AI, unless we are all in a simulation and nothing else matters. So that's Las Vegas. Then, we are developing a resort in Osaka, in Japan, only gaming resort of huge, huge $12 billion scale. That, it's long dated, it won't come into play until 2029-2030, but when it does, it's gonna be one of those golden assets. So I am, I can't - if I look around and say, "What would interest me in M&A?" Would be to find another opportunity like this one. By the way, I haven't found it. I don't think it's on the horizon, by the way.
Barry Diller: So my belief in Las Vegas is that no one's gonna get between the excitement and entertainment of Las Vegas by any technical means of AI, unless we are all in a simulation and nothing else matters. So that's Las Vegas. Then, we are developing a resort in Osaka, in Japan, only gaming resort of huge, huge $12 billion scale. That, it's long dated, it won't come into play until 2029-2030, but when it does, it's gonna be one of those golden assets. So I am, I can't - if I look around and say, "What would interest me in M&A?" Would be to find another opportunity like this one. By the way, I haven't found it. I don't think it's on the horizon, by the way.
Sphere that has been planted here. So my my belief in Las Vegas in that no 1's. Going to get between the the excitement and entertainment of Las Vegas.
I've been interested in CNN for years. Uh, I think it's less than 50/50. I'll get the opportunity, but it could, the hand could play that way. Uh, we'll know in the next months as the Paramount sky dance Warner, Discovery Netflix diorama plays out. Um,
I I I suspect that if it happened it would be on the personal side, not through iic but that's really unpredictable at the moment.
I think that's the rather full some answer to your question. Thanks.
By any technical, uh, means of AI, unless we are all in a simulation and nothing else matters. So that's Las Vegas. Then we are developing a resort in Osaka, in Japan. Only gaining resort of huge, huge, $12 billion scale.
Uh, it’s long-dated—it won’t come into play until 2930. But when it does, it’s going to be one of those golden assets.
Thank you. Uh, BD. Yeah, just 1 point, I'd add to for investors. Um, you know, great results released by bet MGM today, uh, reflecting the, the performance there and and solidity. Um, so you know another, another leg to the mg. What I don't get is how you all people. I'm not, you know, I'm not, oh God, here I found.
Barry Diller: I don't really think that right now is the time for us to be. I wouldn't—we'd never squander around, but putting, like, bets down on things that don't, do not have... It's kind of a bromide. You never wanna do it if you don't have potential. But right now, I really don't see anything at a price that would be rational to pay, and I don't see anything that's really particularly exciting. We've got, though, we've got a company that's got People, which I can only overdo, so I'll not do more than I did before, in what I think of the potential with People. And we've got MGM, and we've got cash to continue to increase our ownership in both of those.
Barry Diller: I don't really think that right now is the time for us to be. I wouldn't—we'd never squander around, but putting, like, bets down on things that don't, do not have... It's kind of a bromide. You never wanna do it if you don't have potential. But right now, I really don't see anything at a price that would be rational to pay, and I don't see anything that's really particularly exciting. We've got, though, we've got a company that's got People, which I can only overdo, so I'll not do more than I did before, in what I think of the potential with People. And we've got MGM, and we've got cash to continue to increase our ownership in both of those.
Like that person God forbid. I what I don't understand of the entire investment Community is. Here, you have a situation where, uh, we invested not a huge amount but we invested hundreds of millions of dollars in bed, MGM that MGM lost. Uh,
Uh, and and people were critical of it and uh, for several years and it took us of course. It took us some time to get it together.
So I am I I, I can't, if I look around, you say, what would interest me in m&a would be to find another opportunity like this 1. By the way, I haven't found it. I don't think it's on the Horizon, by the way. I don't really think that right now is, uh, is the time for us to be? Uh, uh. I wouldn't we never squander around. But putting like, bets down on on things that are not
Why doesn't everybody say oh my freaking God?
That is a turn.
That don't do not have its kind of a bromide. You never want to do it if you don't have potential. But right now, I really don't see anything at a price. That would be rational to pay, and I don't see anything that's really particularly exciting. We've got the, we've got a company that's got people, which I, I, I, I, I,
And, and this year's projections.
I can only overdo, so I'll
Are much higher than that.
Nobody pays attention to it. I surely don't get it. But you know,
eventually, uh, truth speaks
Barry Diller: And yes, an opportunity may come along, but, but I like the hand we have right now. So that's a long-winded answer. Did I answer the first part of your question? Oh, well, you asked about CNN. I've been interested in CNN for years. I think it's less than 50/50. I'll get the opportunity, but it could, the hand could play that way. We'll know in the next months as the Paramount, Skydance, Warner Discovery, Netflix drama plays out. I suspect that if it happened, it would be on the personal side, not through IAC, but that's really unpredictable at the moment. I think that's the rather fulsome answer to your question.
Barry Diller: And yes, an opportunity may come along, but, but I like the hand we have right now. So that's a long-winded answer. Did I answer the first part of your question? Oh, well, you asked about CNN. I've been interested in CNN for years. I think it's less than 50/50. I'll get the opportunity, but it could, the hand could play that way. We'll know in the next months as the Paramount, Skydance, Warner Discovery, Netflix drama plays out. I suspect that if it happened, it would be on the personal side, not through IAC, but that's really unpredictable at the moment. I think that's the rather fulsome answer to your question.
Not do more than I did before in what I think of the potential of people, and we've got MGM and we've got cash to, uh, continue to increase our ownership in both of those.
Uh, thank you nationally.
Uh, and yes, an opportunity may come along, but I like the hand we have right now.
Thank you. Uh, thanks Jason uh operator next question.
So that's a long-winded answer. Did I answer the first part of your question? Oh,
In the next question comes from Justin Patterson with KeyBank. Please go ahead.
Well, we asked about CNN, I've been interested in CNN for years. Uh, I think it's less than 50/50. I'll get the opportunity, but it could, the hand could play that way. Uh, we'll know in the next months as the Paramount sky dance Warner, Discovery Netflix diarama plays out. Um,
I suspect that if it happened, it would be on the personal side, not through Icy, but that's really unpredictable at the moment.
Christopher Halpin: Thank you, BD. J- Yeah, just one point I'd add for investors, you know, great results released by BetMGM today, reflecting the performance there and solidity. So, you know, another leg to the MGM-
Chris Halpin: Thank you, BD. J- Yeah, just one point I'd add for investors, you know, great results released by BetMGM today, reflecting the performance there and solidity. So, you know, another leg to the MGM-
I think that's the rather full some answer to your question. Thanks.
Barry Diller: What I don't get, what I don't get is how you all people, I'm not, you know, I'm not, oh, God, here I sound like that person, God forbid. What I don't understand of the entire investment community is here you have a situation where we invested not a huge amount, but we invested hundreds of millions of dollars in BetMGM. BetMGM lost. And, and people were critical of it and for several years, and it took us, of course, it took us some time to get it together. We go from, like, 170, or you can correct me with the exact figures, or loss, or, or a $200 million dollar loss in one year-
Barry Diller: What I don't get, what I don't get is how you all people, I'm not, you know, I'm not, oh, God, here I sound like that person, God forbid. What I don't understand of the entire investment community is here you have a situation where we invested not a huge amount, but we invested hundreds of millions of dollars in BetMGM. BetMGM lost. And, and people were critical of it and for several years, and it took us, of course, it took us some time to get it together. We go from, like, 170, or you can correct me with the exact figures, or loss, or, or a $200 million dollar loss in one year-
Great, thank you, uh, good morning. Uh, you're clearly excited about a lot of these Transformations going on at people how scalable are some of these new curated experiences? How do you think that changes your relationships with audiences and monetization opportunities? And how should we think about just the investment levels to support this transformation in the AI era? And then separately, just 1 on Vivion. Bill Kong was recently named CEO. Could you talk about some of his top priorities in that role? Thank you. Yeah, I'll go first and, uh, and Crystal go a second. Uh, so what I would say is the, the key to our business is, we need direct relationships with our audiences and direct relationships with their advertisers. And the things we are most excited about in the business are the things that you highlight the new things that we've launched. And look, we're we're, we're the roots of our company.
Thank you. Uh, be. Yeah, just 1 point. I'd add to for investors. Um, you know, great results released by bet MGM today, uh, reflecting the, the performance there and and solidity. Um, so you know another, another leg to the mg. What I don't get is how you all people. I'm not, you know, I'm not, oh God, here I found.
Like that person, God forbid. What I don't understand about the entire investment community is, here you have a situation where, uh, we invested—not a huge amount, but we invested hundreds of millions of dollars in BetMGM. BetMGM lost, uh,
Uh, and and people were critical of it and uh, for several years and it took us of course. It took us some time to get it together.
Christopher Halpin: Yeah.
Chris Halpin: Yeah.
Barry Diller: -to $170 million profit the next year. Why doesn't everybody say, "Oh, my freaking God! That is a turn." The and this year's projections are much higher than that. Nobody pays attention to it. I truly don't get it, but, you know, eventually, it eventually, truth speaks.
Barry Diller: -to $170 million profit the next year. Why doesn't everybody say, "Oh, my freaking God! That is a turn." The and this year's projections are much higher than that. Nobody pays attention to it. I truly don't get it, but, you know, eventually, it eventually, truth speaks.
We go from like 170 or you can correct me with the exact figures or loss uh or or a hundred million dollar loss in 1 year to 170 million profit the next year.
Why hasn't everybody say oh my freaking God?
That is a turn.
And, and this year's projections.
Or 100 year old years old. So the it was not a given. We would be great at these things and launching new things, but so far, so good. We feel very good about the momentum. We have at some of the headline things we've talked to you about. So first, let's just go through a couple of them, uh, my recipes which we launched a little bit less than a year ago, which is a recipe Locker or a place to store recipes. I think most of you guys know we're we are by far the largest player in food and recipes on the internet we have in under a year with very little to know outside marketing. Have we've got 3 million registered users who've saved 24 million recipes and we're perfecting that experience. This is an audience that advertisers love. It's a service that people love and there is no Google between us and these audiences. It's really really effective and it's it's teaching us uh a skill set and this has an incredibly bright future. It's got a great team running it also, um, you know, we've talked a little bit about the people at with you guys.
Are much higher than that.
Nobody pays attention to it. I surely don't get it. But you know,
eventually, uh, truth speaks
Christopher Halpin: Thank you,
Chris Halpin: Thank you,
Barry Diller: Which is nationally.
Barry Diller: Which is nationally.
Christopher Halpin: Thank you. Thanks, Jason. Operator, next question.
Chris Halpin: Thank you. Thanks, Jason. Operator, next question.
uh, thank you, which ising nationally
Operator: The next question comes from Justin Patterson with KeyBanc. Please go ahead.
Operator: The next question comes from Justin Patterson with KeyBanc. Please go ahead.
Thank you. Uh, thanks, Jason. Uh, operator, next question.
Justin Patterson: Great. Thank you. Good morning. You're clearly excited about a lot of these transformations going on at People. How scalable are some of these new curated experiences? How do you think that changes your relationships with audiences and monetization opportunities? And how should we think about just the investment levels that support this transformation in the AI era? And then separately, just one on Vivian. Bill Kong was recently named CEO. Could you talk about some of his top priorities in that role? Thank you.
Justin Patterson: Great. Thank you. Good morning. You're clearly excited about a lot of these transformations going on at People. How scalable are some of these new curated experiences? How do you think that changes your relationships with audiences and monetization opportunities? And how should we think about just the investment levels that support this transformation in the AI era? And then separately, just one on Vivian. Bill Kong was recently named CEO. Could you talk about some of his top priorities in that role? Thank you.
And the next question comes from Justin Patterson with KeyBank. Please go ahead.
The people that for us, I think and I'm not sure if BD has ever brought brought this up before the People app can eventually be the Hub of the entire people brand and what we've really focused on with our investment dollars is getting that experience, right? So we're we launched it again, a little less than a year ago. Uh we've got about 300,000 downloads. Our our expenditure has not been on getting uh downloads made but 300,000 is a pretty good number what we're really focused on is engagement and how can we change people's relationships?
Lowercase p with uppercase P people and here's the key stat that's interesting and the thing that gets us so enthusiastic about this on the web when someone goes to people's sort of people.com people's website, the average visit is 2 minutes long.
Neil Vogel: Yeah, I'll go first and, and Chris will go second. So what I would say is the key to our business is we need direct relationships with our audiences and direct relationships with our advertisers. And the things we are most excited about in the business are the things that you highlight, the new things that we've launched. And look, the roots of our company are 100 years old. It was not a given we would be great at these things and launching new things, but so far so good. We feel very good about the momentum we have at some of the headline things we've talked to you about. So first, let's just go through a couple of them.
Neil Vogel: Yeah, I'll go first and, and Chris will go second. So what I would say is the key to our business is we need direct relationships with our audiences and direct relationships with our advertisers. And the things we are most excited about in the business are the things that you highlight, the new things that we've launched. And look, the roots of our company are 100 years old. It was not a given we would be great at these things and launching new things, but so far so good. We feel very good about the momentum we have at some of the headline things we've talked to you about. So first, let's just go through a couple of them.
If you are in the app and you open the app and you start playing around the web experience, which is not anywhere near as good as it's going to get with the plans. We have that's a 6 Minute duration. So we are 3x the amount of time spent in the app that on the site, the typical visit then
Great, thank you, uh, good morning. Uh, you're clearly excited about a lot of these Transformations going on at people how scalable are some of these new curated experiences? How do you think that changes your relationships with audiences and modernization opportunities? And how should we think about just the investment levels of support this transformation in the AI era? And then separately, just 1 on Vivion? Bill Kong was recently named CEO. Could you talk about some of his top priorities in that role? Thank you. Yeah, I'll go first. And, uh, and Crystal goes second. Uh, so what I would say is the, the key to our business is, we need direct relationships with our audiences and direct relationships with their advertisers. And the things we are most excited about in the business. You know, things that you highlight the new things that we've launched. And look, we're we're, we're the roots of our company are 100 year old years old. So the it was not a given. We would be great at these things and launching new things but so far. So good. We feel very good about the momentum. We have at some of the headlines.
Neil Vogel: MyRecipes, which we launched a little bit less than a year ago, which is a recipe locker, a place to store recipes. I think most of you guys know we're- we are by far the largest player in food and recipes on the internet. We have, in under a year, with very little to no outside marketing, have-- we've got 3 million registered users who've saved 24 million recipes, and we're perfecting that experience. This is an audience that advertisers love, it's a service that people love, and there is no Google between us and these audiences. It's really, really effective, and it's teaching us a skill set, and this has an incredibly bright future. It's got a great team running it also. You know, we've talked a little bit about the People app with you guys.
Neil Vogel: MyRecipes, which we launched a little bit less than a year ago, which is a recipe locker, a place to store recipes. I think most of you guys know we're- we are by far the largest player in food and recipes on the internet. We have, in under a year, with very little to no outside marketing, have-- we've got 3 million registered users who've saved 24 million recipes, and we're perfecting that experience. This is an audience that advertisers love, it's a service that people love, and there is no Google between us and these audiences. It's really, really effective, and it's teaching us a skill set, and this has an incredibly bright future. It's got a great team running it also. You know, we've talked a little bit about the People app with you guys.
We launched a bit ago, uh a suite of games, we launched something called the people Puzzler, which was historically uh, in the magazine, uh, a crossroad puzzle. And we launched 2 new games, since these games have been a huge hit, people who were in the app and play a game, have a 20 minute duration in the app so you can see real traction and you can see maybe subscriptions grow out of this thing. Maybe a big ad business goes out of this thing. Maybe sponsorships do, I'm not sure but the lighting and audience with a great product is great. And and what I would say is the 2 of these things,
2 products is not a skill, every company has, we've worked very, very hard at this. We've pivoted a ton of resources away from what we've done traditionally into these 2 projects and I'll just I'll highlight 1 more while we're at it because it's something we're really proud of U at in style.
Neil Vogel: The People app for us, I think, and I'm not sure if BD has ever brought this up before, the People app can eventually be the hub of the entire People brand, and what we have really focused on with our investment dollars is getting that experience right. So we launched it again, a little less than a year ago. We've got about 300,000 downloads. Our expenditure has not been on getting downloads made, but 300,000 is a pretty good number. What we're really focused on is engagement, and how can we change people's relationship, lowercase p with uppercase P People. And here's the key stat that's interesting, and the thing that gets us so enthusiastic about this. On the web, when someone goes to People's sort of people.com, People's website, the average visit is 2 minutes long.
Neil Vogel: The People app for us, I think, and I'm not sure if BD has ever brought this up before, the People app can eventually be the hub of the entire People brand, and what we have really focused on with our investment dollars is getting that experience right. So we launched it again, a little less than a year ago. We've got about 300,000 downloads. Our expenditure has not been on getting downloads made, but 300,000 is a pretty good number. What we're really focused on is engagement, and how can we change people's relationship, lowercase p with uppercase P People. And here's the key stat that's interesting, and the thing that gets us so enthusiastic about this. On the web, when someone goes to People's sort of people.com, People's website, the average visit is 2 minutes long.
Which is a recipe Locker or a place to store recipes. I think most of you guys know we're we are by far the largest player in food and recipes on the internet we have in under a year with very little to know outside marketing. Have we've got 3 million registered users who saved 24 million recipes and we're perfecting that experience. This is an audience that advertisers love. It's a service that people love and there is no Google between us and these audiences. It's really really effective and it's it's teaching us uh a skill set and this has an incredibly bright future. It's got a great team running it also, um, you know, we've talked a little bit about the people at with you guys.
the uh, when we started doing the intern,
Uh and we do, I don't know, 6 a season and we do how many seasons, how many of these do we do a year?
Yeah, so there's so so far last year we've done 7 Seasons but a season is 6 Minute episodes.
Neil Vogel: If you are in the app, and you open the app, and you start playing around the web experience, which is not anywhere near as good as it's going to get with the plans we have, that's a 6-minute duration. So we are 3x the amount of time spent in the app than on the site for a typical visit. Then, we launched a bit ago, a suite of games. We launched something called The People Puzzler, which was historically, in a magazine, a crossword puzzle, and we've launched 2 new games since. These games have been a huge hit. People who are in the app and play a game have a 20-minute duration in the app.
Neil Vogel: If you are in the app, and you open the app, and you start playing around the web experience, which is not anywhere near as good as it's going to get with the plans we have, that's a 6-minute duration. So we are 3x the amount of time spent in the app than on the site for a typical visit. Then, we launched a bit ago, a suite of games. We launched something called The People Puzzler, which was historically, in a magazine, a crossword puzzle, and we've launched 2 new games since. These games have been a huge hit. People who are in the app and play a game have a 20-minute duration in the app.
The people at for us, I think. And I'm not sure if BD has ever brought brought up before the People app can eventually be the Hub of the entire people brand and what we've really focused on with our investment dollars is getting that experience, right? So we're we launched it again, a little less than a year ago. Uh we've got about 300,000 downloads. Our our expenditure has not been on getting uh downloads made but 300,000 is a pretty good number what we're really focused on is engagement. And how can we change people's relationships? Lowercase, b, with uppercase P people and here's the key stat. That's interesting and the thing that gets us so enthusiastic about this on the web when someone goes to people's sort of people.com people's website, the average visit is 2 minutes long.
You're fine when I'm trying to do is just educate people. So the first few uh they first they cost nothing but you'd made 50 or 80 thousand or whatever. Now for I think for its for a given season, you're up to sponsorships at the 500,700,000 level.
If you are in the app and you open the app and you start playing around the web experience, which is not anywhere near as good as it's going to get with the plans. We have that's a 6 Minute duration. So we are 3x the amount of time spent in the app that on the site for typical visits, then
I mean, when you think essentially, that's when you think about that, again, out of nothing at no real cost. This is done in-house. Basically on an iPhone, or it has been done on an iPhone, uh, and they are genuinely funny and they have reached a genuine audience.
Neil Vogel: So you can see real traction, and you can see maybe subscriptions grow out of this thing, maybe a big ad business grows out of this thing, maybe sponsorships do. I'm not sure, but delighting an audience with a great product is great. And what I would say is, the two of these things, building new products is not a skill every company has. We've worked very, very hard at this. We've pivoted a ton of resources away from what we've done traditionally into these two projects, and I'll just, I'll highlight one more while we're at it, because it's something we're really proud of. At InStyle, we've got kind of a hit on our hands, but we do a lot of social-first video.
Neil Vogel: So you can see real traction, and you can see maybe subscriptions grow out of this thing, maybe a big ad business grows out of this thing, maybe sponsorships do. I'm not sure, but delighting an audience with a great product is great. And what I would say is, the two of these things, building new products is not a skill every company has. We've worked very, very hard at this. We've pivoted a ton of resources away from what we've done traditionally into these two projects, and I'll just, I'll highlight one more while we're at it, because it's something we're really proud of. At InStyle, we've got kind of a hit on our hands, but we do a lot of social-first video.
That is that we we now have as, as what Neil has done is redeploying his forces into these new and productive areas with the with the brands that we have.
When you are doing that and you're dealing with ideation, you create new things that have nothing to do with search, with the issues of, of digital advertising or problems of digital advertising. They're their own products and we are producing them at real scale. Now, that's really exciting.
We launched a bit ago, uh, a suite of games. We launched something called the People Puzzler, which was historically, uh, in the magazine, uh, a crossword puzzle. And we launched two new games. Since, these games have been a huge hit. People who are in the app and play a game have a 20 minute duration in the app, so you can see real traction, and you can see maybe subscriptions grow out of this thing. Maybe a big ad business goes out of this thing. Maybe sponsorships do, I'm not sure. But delighting an audience with a great product is great. And what I would say is, the two of these things—building new products is not a skill every company has. We've worked very, very hard at this. We've pivoted a ton of resources away from what we've done traditionally into these two projects, and I'll just, I'll highlight one more while we're at it, because it's something we're really proud of, uh, at InStyle.
Yeah, and wrap. What is enough enough for now? Next question.
Neil Vogel: And we did a social-first video series we're currently doing called The Intern, and it's almost, it's very like The Office-y. Everyone that appears in The Intern actually works for us and works on the team, with the exception of two people who play interns at InStyle. And it has captured a zeitgeist of sort of like the Gen Z experience in an incredible way.
Neil Vogel: And we did a social-first video series we're currently doing called The Intern, and it's almost, it's very like The Office-y. Everyone that appears in The Intern actually works for us and works on the team, with the exception of two people who play interns at InStyle. And it has captured a zeitgeist of sort of like the Gen Z experience in an incredible way.
We, um, we've got kind of a hit on our hands, but we do a lot of social first video, and we did a social first video series. We're currently doing called The Intern. And it's almost, it's very like, uh, the office e, everyone that appears in the intern actually works for us and works on the team, with the exception of 2 people, who play interns at in style and it has
Barry Diller: Neil?
Barry Diller: Neil?
Neil Vogel: Let's... Yeah, sure.
Neil Vogel: Let's... Yeah, sure.
Barry Diller: When we started doing The Intern, and we do, I don't know, six a season, and we do how many seasons? How many of these do we do a year?
Barry Diller: When we started doing The Intern, and we do, I don't know, six a season, and we do how many seasons? How many of these do we do a year?
Is captured a, a Zeitgeist of of sort of like the Gen Z experience in an in an incredible way. Yeah sure do. Uh the uh, when we started doing the intern,
Neil Vogel: Yeah, so far last year, we've done seven seasons, but a season is-
Neil Vogel: Yeah, so far last year, we've done seven seasons, but a season is-
Uh and we do, I don't know, 6 a season and we do how many seasons, how many of these do we do a year?
Barry Diller: Just trying to-
Neil Vogel: six 3-minute episodes.
Barry Diller: Just trying to-
Neil Vogel: six 3-minute episodes.
Barry Diller: Fine. What I'm trying to do is just educate people. So the first few, first, they cost nothing, but you'd made $50,000 or $80,000 or whatever. Now, I think it's for a given season, you're up to sponsorships at the $500,000, $700,000 level?
Barry Diller: Fine. What I'm trying to do is just educate people. So the first few, first, they cost nothing, but you'd made $50,000 or $80,000 or whatever. Now, I think it's for a given season, you're up to sponsorships at the $500,000, $700,000 level?
Yeah, so there's so so far last year we've done 7 Seasons but a season is episode.
Uh, yeah. Let me and I'll just cover Vivian. Uh, Vivian is a Marketplace that sits between 2.7 million nurses on the 1 and Healthcare, um, healthcare staffing agencies and Care, uh, providers on the other. Um, it is really a great moment. It is the business has returned to growth last quarter, after facing some major sectoral, headwinds, um, it is, uh, driving forward in, um, taking share and its AI products. We think are industry changing. So, bill is the ideal leader. He's, he's grown, he's developed across product marketing and other channels and has, um, uh, really performed, uh, extremely well, Parts is excited for him to take over as CEO. And it's really about driving our AI products deeper into our customers uh, operator. Next question, please.
The next question comes from John Blackledge. With TD Cowen. Please go ahead.
Neil Vogel: That's correct, yeah.
Neil Vogel: That's correct, yeah.
Fine when I'm trying to do is just educate people. So the first few uh they first they cost nothing but Jude made 50 or 80,000 or whatever. Now for I think for its for a given season, you're up to sponsorships at the 500,700,000 level.
Barry Diller: I mean, when you think of-
Barry Diller: I mean, when you think of-
Neil Vogel: So essentially, that's-
Neil Vogel: So essentially, that's-
Uh, that's correct. Yeah.
Barry Diller: When you think about that, again, out of nothing, at no real cost, this is done in-house, basically on an iPhone, or it has been done on an iPhone. And they are genuinely funny, and they have reached a genuine audience. That is the... We now have... What Neil has done is redeploying his forces into these new and productive areas with the brands that we have. When you are doing that, and you're dealing with ideation, you create new things that have nothing to do with search, with the issues of digital advertising or problems with digital advertising. They're their own products, and we are producing them at real scale now. That's really exciting.
Barry Diller: When you think about that, again, out of nothing, at no real cost, this is done in-house, basically on an iPhone, or it has been done on an iPhone. And they are genuinely funny, and they have reached a genuine audience. That is the... We now have... What Neil has done is redeploying his forces into these new and productive areas with the brands that we have. When you are doing that, and you're dealing with ideation, you create new things that have nothing to do with search, with the issues of digital advertising or problems with digital advertising. They're their own products, and we are producing them at real scale now. That's really exciting.
Oh great, thanks. Um maybe 2 for Chris um, 1 on the people 2026 even dial. Look at at the midpoint of the range. It looks like kind of flattish even though can you unpack the guy a little bit Chris and how we should think about drivers of Eva people this year and then second question, just on C's um, free cash flow conversion. So you guys got it to 2060 but down range of 260 million to 335 million. How should we think about free cash flow conversion of Eva this year? Thank you.
I mean, when you think essentially, that's when you think about that, again, out of nothing at no real cost. This is done in-house. Basically on an iPhone, or it has been done on the iPhone, uh, and they are genuinely funny and they have reached a genuine audience. That is that we we now have as, as with Neil has done is redeploying his forces into these new and productive areas with the with the brands that we have.
Neil Vogel: Yeah, and perhaps to wrap on The Intern.
Neil Vogel: Yeah, and perhaps to wrap on The Intern.
When you are doing that and you're dealing with ideation, you create new things that have nothing to do with search, with the issues of, of digital advertising or problems of digital advertising. They're their own products and we are producing them at real scale. Now, that's really exciting.
Barry Diller: Enough for now. Enough for now. Next question.
Barry Diller: Enough for now. Enough for now. Next question.
Christopher Halpin: Yeah, let me just cover Vivian. You know, Vivian is an exciting business within emerging and other. We announced last week that Vivian founder and CEO, Parth Bhakta, has moved to chairman, and Bill Kong, our COO, is taking over as CEO. You know, Parth has done a great job building this business. It is
Chris Halpin: Yeah, let me just cover Vivian. You know, Vivian is an exciting business within emerging and other. We announced last week that Vivian founder and CEO, Parth Bhakta, has moved to chairman, and Bill Kong, our COO, is taking over as CEO. You know, Parth has done a great job building this business. It is
Yeah, and we have to wrap up. What is enough enough for now? Next question.
Uh, yeah, thanks John. Uh, on on ebita guidance. We we definitely want to explain this in detail to investors at at people. So when you compare 2025 adjusted ebit that for people to our 26 guidance, there are 2 key countervailing. Trends, you need to understand as background 25 adjusted ebit. Uh, when you remove the 41 million in lease gains, uh, and the 15 million in Severance expense was 331 million, that comprises 315 million of digital adjusted Evita and then an incremental 16 million driving from the excess of print ebita over corporate expense. So 315 and then a 16 million incremental in our 2026 guidance.
um, you know Vivian uh is a is a exciting business with
We are guiding to mid to high single-digit ebit. Dog growth off of the 315 million generated in 2025,
Within emerging and other. Uh, we announced last week that Vivian founder and CEO Part B has moved the chairman and Bill Kong our cos taking over as CEO.
Barry Diller: Okay
Barry Diller: Okay
Christopher Halpin: a clinician marketplace.
Chris Halpin: a clinician marketplace.
Operator: I am not. I'm actually at work right now. Can you-
Operator: I am not. I'm actually at work right now. Can you-
On the other hand, our guidance assumes, 15 million in Google litigation expense hitting corporate. Without that litigation cost, we expect print ebitda to equal corporate expense. So with the litigation
Christopher Halpin: Excuse me!
Chris Halpin: Excuse me!
Neil Vogel: Operator?
Neil Vogel: Operator?
Christopher Halpin: Operator.
Um you know part has done a great job building this business. It is uh a clinician marking Place Marketplace at work right now. Uh can you excuse me? Operator Operator.
Chris Halpin: Operator.
Operator: The next question comes from John Blackledge.
Operator: The next question comes from John Blackledge.
um,
What you're seeing is a 31 million. Net swing from 25 actuals to 26 guidance in the relationship between print and corporate.
Christopher Halpin: Please stop. Operator? Operator, I'm answering a question. Quickly, Vivian is a marketplace that sits between 2.7 million nurses on the one side in healthcare, healthcare staffing agencies and care providers on the other. It is really a great moment. It is, the business has returned to growth last quarter after facing some major sectoral headwinds. It is, driving forward in taking share, and its AI products, we think, are industry-changing. So Bill is the ideal leader. He's, he's grown, he's developed across product marketing and other channels and has really performed extremely well. Parth is excited for him to take over as CEO, and it's really about driving our AI products deeper into our customers. Operator, next question, please.
Chris Halpin: Please stop. Operator? Operator, I'm answering a question. Quickly, Vivian is a marketplace that sits between 2.7 million nurses on the one side in healthcare, healthcare staffing agencies and care providers on the other. It is really a great moment. It is, the business has returned to growth last quarter after facing some major sectoral headwinds. It is, driving forward in taking share, and its AI products, we think, are industry-changing. So Bill is the ideal leader. He's, he's grown, he's developed across product marketing and other channels and has really performed extremely well. Parth is excited for him to take over as CEO, and it's really about driving our AI products deeper into our customers. Operator, next question, please.
The question comes from Joe, John, operator.
Um it's that swing that leads the guidance to be in the 3 10 to 340 million range and to look flat is year-over-year.
Operator. I'm answering a question quickly. Uh, Vivian is a Marketplace that sits between 2.7 million nurses on the 1 and Healthcare, um, healthcare staffing agencies and Care, uh, providers on the other. Um, it is really a great moment. It is the business has returned to growth last quarter, after facing some major sectoral, headwinds, um, it is, uh, driving forward in, um, taking share and its AI products. We think are industry changing. So, bill is the ideal leader. He's, he's grown, he's developed across product marketing and other channels and has, um, uh, really performed, uh, extremely well, Parts is excited for him to take over as CEO. And it's really about driving our AI products deeper into our customers.
Operator: The next question comes from John Blackledge with TD Cowen. Please go ahead.
Operator: The next question comes from John Blackledge with TD Cowen. Please go ahead.
Uh, operator next question, please.
Neil Vogel: Great. Thanks. Maybe two for Chris. One on the People 2026 EBITDA outlook. At the midpoint of the range, it looks like kind of flattish EBITDA. Can you unpack the guide a little bit, Chris, and how we should think about drivers of EBITDA People this year? And then second question, just on IAC's free cash flow conversion. So you guys got it to 2026 EBITDA range of $260 million to $335 million. How should we think about free cash flow conversion of EBITDA this year? Thank you.
John Blackledge: Great. Thanks. Maybe two for Chris. One on the People 2026 EBITDA outlook. At the midpoint of the range, it looks like kind of flattish EBITDA. Can you unpack the guide a little bit, Chris, and how we should think about drivers of EBITDA People this year? And then second question, just on IAC's free cash flow conversion. So you guys got it to 2026 EBITDA range of $260 million to $335 million. How should we think about free cash flow conversion of EBITDA this year? Thank you.
The next question comes from John Blackledge. With TD Cowen. Please go ahead.
If you adjust for the Google litigation expense, we we are guiding to 325 to 355 on, uh, on digital IBA. Um, going to IA adjusted free cash flow simply, uh, there are 4 line items between IBA and free cash flow that you should think about in your models, capex, change in working capital, net interest expense taxes, capex for IAC is minor. It was 20 million last year probably 20 to 30 million in the 26 range. Um, net cash, interest expense, is the difference between the interest expense on the people debt and the interest income we make on our cash balances last year. It was 64 million of net interest expense. We would expect net interest expense to be uh, around that same number, um, assuming, you know, flat, uh, yields on cash, cash cash. Tax taxes are minimal due to our nols, so that leaves working capital, that was a major use of cash. Last year, due to 2
Christopher Halpin: Yeah, thanks, John. On EBITDA guidance, we definitely wanna explain this in detail to investors at People. So when you compare 2025 adjusted EBITDA for People to our 2026 guidance, there are two key countervailing trends you need to understand. As background, 2025 adjusted EBITDA, when you remove the $41 million in lease gains and the $15 million in severance expense, was $331 million. That comprises $315 million of digital adjusted EBITDA, and then an incremental $16 million deriving from the excess of print EBITDA over corporate expense, so $315 and then a $16 million incremental. In our 2026 guidance, we are guiding to mid- to high single-digit EBITDA growth off of the $315 million generated in 2025.
Chris Halpin: Yeah, thanks, John. On EBITDA guidance, we definitely wanna explain this in detail to investors at People. So when you compare 2025 adjusted EBITDA for People to our 2026 guidance, there are two key countervailing trends you need to understand. As background, 2025 adjusted EBITDA, when you remove the $41 million in lease gains and the $15 million in severance expense, was $331 million. That comprises $315 million of digital adjusted EBITDA, and then an incremental $16 million deriving from the excess of print EBITDA over corporate expense, so $315 and then a $16 million incremental. In our 2026 guidance, we are guiding to mid- to high single-digit EBITDA growth off of the $315 million generated in 2025.
Uh, great thanks. Um, maybe 2 for Chris. Um, 1 on the people 2026 Eva dial. Look at at the midpoint of the range. It looks like kind of flattish even doc. Can you unpack the guy a little bit Chris and how we should think about drivers of Eva do people this year? And then second question just an is um free cash flow conversion. So you guys got it to 26, V range of 260 million to 335 million. How should we think about free cash flow conversion of this year? Thank you.
Items 1, where the lease buyouts that we talked about north of 40 million dollars, as well as some unfavorable timing, um, this past year of vendor payments. Uh, and receivables looking ahead, we don't expect any similar large outflows like the lease buyouts, uh, and then working capitals should normalize. So when you roll that up, we guide to 50%. Plus ebit data, free cash flow conversion across IAC in 2026. Uh thanks John operator. Next question.
Question.
Next question comes from Corey Carpenter with JP Morgan. Please go ahead.
Uh, yeah, thanks John. Uh, on on ebita guidance. We we definitely want to explain this in detail to investors at at people. So when you compare 2025 adjusted ebit that for people to our 26 guidance, there are 2 key countervailing. Trends, you need to understand as background 25 adjusted ebit. Uh, when you remove the 41 million in lease gains, uh, and the 15 million in 7th, which is 331 million.
Hi, good morning. Thanks for the question. I had 2 wanted to ask um, you called out the 15 million spend on on the Google litigation, maybe just update us on on where you're at with that and and how you're thinking about the range of outcomes. And then Barry, I think last quarter you talked a lot about. Also the simple simplification of IC, so maybe if you could just give us an update on how you're thinking about that and you progress you've made. Thank you.
That comprises 315 million of digital adjusted ebita and then an incremental 16 million driving from the excess of print ebita over corporate expense. So 315 and then a 16 million incremental in our 2026 guidance.
Christopher Halpin: On the other hand, our guidance assumes $15 million in Google litigation expense hitting corporate. Without that litigation cost, we expect print EBITDA to equal corporate expense. So with the litigation, what you're seeing is a $31 million net swing from 25 actuals to 26 guidance in the relationship between print and corporate. It's that swing that leads the guidance to be in the $310 to 340 million range and to look flattish year-over-year. At our most important line item in our mind is digital revenue and EBITDA, and that is growing solidly. And as we said before, if you adjust for the Google litigation expense, we are guiding to $325 to 355 on digital EBITDA.
Chris Halpin: On the other hand, our guidance assumes $15 million in Google litigation expense hitting corporate. Without that litigation cost, we expect print EBITDA to equal corporate expense. So with the litigation, what you're seeing is a $31 million net swing from 25 actuals to 26 guidance in the relationship between print and corporate. It's that swing that leads the guidance to be in the $310 to 340 million range and to look flattish year-over-year. At our most important line item in our mind is digital revenue and EBITDA, and that is growing solidly. And as we said before, if you adjust for the Google litigation expense, we are guiding to $325 to 355 on digital EBITDA.
I'll do. I'll do a litigation thing quickly and then I'll I'll kick to BD. Um so again just to refresh everybody. The the lawsuit Builds on the government's antitrust case against Google where Google was found a monopolized. The ad server and AD exchange markets, right? 2 2 major Publishers, get daily mail already sued and in their cases, the Court ruled that they don't need to. Again prove what the government proved. Um, we expect to rely on that ruling. Um,
We are guiding to mid to high single-digit EBITDA growth off of the $315 million generated in 2025. On the other hand, our guidance assumes $15 million in Google litigation expense hitting corporate. Without that litigation cost, we expect print EBITDA to equal corporate expense. So with the litigation—
What you're seeing is a 31 million. Net swing from 25 actuals to 26 guidance in the relationship between print and corporate.
Um, it's that swing that leads the guidance to be in the 310 to 340 million range and to look flat is year-over-year,
Again, the costs are about $50 million. Chris is going on a great detail about that. Damages, uh, will be proved in this litigation and this phase. I, we seek to recover hundreds of millions of dollars in Damages. Um, again, it, it all depends on where this lands, but, uh, I, we look at this as an investment. Um, they've already been found, uh, to be sort of. Again, I don't know the legal term in violation of these laws, so, we'll, we'll see where it lands.
Christopher Halpin: Going to IAC Adjusted Free Cash Flow, simply, there are four line items between EBITDA and free cash flow that you should think about in your models: CapEx, change in working capital, net interest expense, taxes. CapEx for IAC is minor. It was $20 million last year, probably $20 to 30 million in the 2026 range. Net cash interest expense is the difference between the interest expense on the People debt and the interest income we make on our cash balances. Last year, it was $64 million of net interest expense. We would expect net interest expense to be around that same number, assuming, you know, flat yields on cash. Cash taxes are minimal due to our NOLs, so that leaves working capital. That was a major use of cash last year due to two items.
Chris Halpin: Going to IAC Adjusted Free Cash Flow, simply, there are four line items between EBITDA and free cash flow that you should think about in your models: CapEx, change in working capital, net interest expense, taxes. CapEx for IAC is minor. It was $20 million last year, probably $20 to 30 million in the 2026 range. Net cash interest expense is the difference between the interest expense on the People debt and the interest income we make on our cash balances. Last year, it was $64 million of net interest expense. We would expect net interest expense to be around that same number, assuming, you know, flat yields on cash. Cash taxes are minimal due to our NOLs, so that leaves working capital. That was a major use of cash last year due to two items.
No, it has potential to land, very big. So uh, as far as simplification we've been doing this for the really, the last couple of years, uh as we've cleaned up many, many things inside IAC uh closed transferred Etc. Uh, we're going to continue to do it. We're bringing down our overhead which we should. Our overhead was large because we had so many businesses that we were responsible for and so much information. We're now really down to a couple of key businesses. So you're going to see simplification for throughout the year.
Or most important, headline item in in our mind is digital revenue and ibitta and that is growing solidly. And as we said before, if you adjust for the Google litigation expense, we we are guiding to 325 to 355 on, uh, on digital ebita, um, going to IAC adjusted free cash flow simply, uh, there are 4 line items between ibida and free cash flow that you should think about in your models, capex, change in working capital, net interest expense taxes, capex for IAC is minor. It was 20 million dollars last year probably 20 to 30 million in the 26 range. Um, net cash, interest expense. Is the difference between the interest expense on the people debt.
Thank you, Corey operator, next question. And the next question comes from, are keridan with Goldman Sachs. Please go ahead.
Christopher Halpin: One were the lease buyouts that we talked about, north of $40 million, as well as some unfavorable timing this past year of vendor payments and receivables. Looking ahead, we don't expect any similar large outflows like the lease buyouts, and then working capital should normalize. So when you roll that up, we guide to 50%+ EBITDA to free cash flow conversion across IAC in 2026. Thanks, John. Operator, next question?
Chris Halpin: One were the lease buyouts that we talked about, north of $40 million, as well as some unfavorable timing this past year of vendor payments and receivables. Looking ahead, we don't expect any similar large outflows like the lease buyouts, and then working capital should normalize. So when you roll that up, we guide to 50%+ EBITDA to free cash flow conversion across IAC in 2026. Thanks, John. Operator, next question?
Thanks for taking the questions, maybe 2, if I could first with respect to the ad business, any mark-to-market views in terms of the overall macro environment, either verticals, or the way in which advertisers are spending their money, brand versus direct response in terms of how that's impacting the business right now. And then I wanted to revisit the comments you made about the forward guidance and your prepared remarks, in terms of maybe going a little bit deeper on what you think it might do to impact, uh, the operations, uh, freeing people off to think a little more medium to longer term and whether the investment Community could also expect some sort of at least qualitative commentary.
More to Market on the quarter to quarter basis. Thanks so much.
Operator: Next question comes from Corey Carpenter with J.P. Morgan. Please go ahead.
Operator: Next question comes from Corey Carpenter with J.P. Morgan. Please go ahead.
As well as some unfavorable timing, um, this past year, a vendor payments. Uh, and receivables looking ahead, we don't expect any similar large outflows like the lease buyouts, uh, and then working capital should normalize. So when you roll that up, we guide the 50%. Plus ebit data, free cash flow conversion across IHC in 2026. Uh thanks John operator. Next question.
oh sure, I'll do the ad Market first and I'll kick to Chris so I
Cory Carpenter: Hi, good morning. Thanks for the question. I, too, wanted to ask, you called out the $15 million spend on, on the Google litigation. Maybe just update us on, on where you're at with that and, and kind of how you're thinking about the range of outcomes. And then, Barry, I think last quarter you talked a lot about also the simplification of IAC. So maybe if you could just give us an update on how you're thinking about that and any progress you've made. Thank you.
Cory Carpenter: Hi, good morning. Thanks for the question. I, too, wanted to ask, you called out the $15 million spend on, on the Google litigation. Maybe just update us on, on where you're at with that and, and kind of how you're thinking about the range of outcomes. And then, Barry, I think last quarter you talked a lot about also the simplification of IAC. So maybe if you could just give us an update on how you're thinking about that and any progress you've made. Thank you.
Next question comes from Corey Carpenter with JPMorgan. Please go ahead.
Neil Vogel: I'll do the litigation thing quickly, and then I'll kick to BD. So again, just to refresh everybody, the lawsuit builds on the government's antitrust case against Google, where Google was found to have monopolized the ad server and ad exchange markets, right? Two major publishers, Gannett and Daily Mail, already sued, and in their cases, the court ruled that they don't need to again prove what the government proved. We expect to rely on that ruling. Again, the costs are about $50 million. Chris has gone in great detail about that. Damages will be proved in this litigation, in this phase. We seek to recover hundreds of millions of dollars in damages. Again, it all depends on where this lands, but we look at this as an investment.
Neil Vogel: I'll do the litigation thing quickly, and then I'll kick to BD. So again, just to refresh everybody, the lawsuit builds on the government's antitrust case against Google, where Google was found to have monopolized the ad server and ad exchange markets, right? Two major publishers, Gannett and Daily Mail, already sued, and in their cases, the court ruled that they don't need to again prove what the government proved. We expect to rely on that ruling. Again, the costs are about $50 million. Chris has gone in great detail about that. Damages will be proved in this litigation, in this phase. We seek to recover hundreds of millions of dollars in damages. Again, it all depends on where this lands, but we look at this as an investment.
Hi, good morning, thanks for the question. I had to wanted to ask um, you called out the 15 million spend on on the Google litigation, maybe just update us on on where you're at with that and, and kind of how you're thinking about the range of outcomes and then, uh, Barry. I think last quarter, you talked about about also the simplic simplification of IC. So maybe if you could just give us an update on how you're thinking about that and any progress you've made. Thank you.
Markets that helps our, our programs really perform both the traditional on platform and all platform. Our ad relationships are good and we're very much with some of the new things we're doing, we're in the ad Zeitgeist. Not only do we have like the real nuts and bolts to deliver but we've got the cool stuff too. And um
Well, I'll do. I'll do the litigation then quickly and then I'll I'll kick to BD. Um, so again just to refresh everybody. The the lawsuit Builds on the government's antitrust case against Google where Google is found a monopolized. The ad server and AD exchange markets, right? 2 2 major Publishers, get daily mail already sued and in their cases, the Court ruled that they don't need to. Again prove what the government proved. Um, we expect to rely on that ruling. Um,
Neil Vogel: They've already been found to be sort of, again, I don't know the legal term, in violation of these laws, so we'll see where it lands.
Neil Vogel: They've already been found to be sort of, again, I don't know the legal term, in violation of these laws, so we'll see where it lands.
Christopher Halpin: No, I think-
Chris Halpin: No, I think-
Neil Vogel: BD, you want to...? Yeah, go ahead.
Neil Vogel: BD, you want to...? Yeah, go ahead.
Again, the costs are about fifty million dollars. Chris is going to great detail about that. Damages, uh, will be proved in this litigation in this phase. I, we seek to recover hundreds of millions of dollars in Damages. Um, again, it all depends on where this lands but, uh, I we look at this as an investment. Um, they've already been found, uh, to be sort of. Again, I don't know the legal term in violation of these laws, so we'll, we'll see where it lands.
It's it's really helped us and I think the strongest sectors and again I can only really speak to us but some of this does trickle out to the broader Market health and Pharma has been good for us, travel Tech, uh some of the weaker sections for us or or some of the stuff you're seeing macro exposed like like food and beverage cpg. Uh, in a larger way has been very challenging. I'm sure you guys have heard about that. Um, that's really our take, look, the the, we, the market right now is good enough for us to execute and that's our main concern, perfectly sir. And then that
Operator: It has potential to land very big. So,
Barry Diller: It has potential to land very big. So,
Dan Kurnos: ...As far as simplification, we've been doing this for, really, the last couple of years, as we've cleaned up many, many things inside IAC, closed, transferred, et cetera. We're gonna continue to do it. We're bringing down our overhead, which we should. Our overhead was large because we had so many businesses that we were responsible for and so much infrastructure. We're now really down to a couple of key businesses. So you're gonna see simplification throughout the year.
Barry Diller: ...As far as simplification, we've been doing this for, really, the last couple of years, as we've cleaned up many, many things inside IAC, closed, transferred, et cetera. We're gonna continue to do it. We're bringing down our overhead, which we should. Our overhead was large because we had so many businesses that we were responsible for and so much infrastructure. We're now really down to a couple of key businesses. So you're gonna see simplification throughout the year.
No, it has potential to land very big. So,
And then on guidance look um, you know, the it's a few things 1. There are a lot of especially in People Inc, which is uh, our biggest business. There is a lot of volatility in the underlying Market. Uh, Neil has talked about, um, everything they're doing to, you know, guide the ship successfully through the choppy Waters, and they're proving that out in the data. But stressing about quarter to quarter metrics on sessions, um, individual Revenue line items, Etc.
Uh, as far as simplification we've been doing this for the really, the last couple of years. Uh, as we've cleaned up many, many things inside IAC uh closed transferred Etc. Uh, we're going to continue to do it. We're bringing down our overhead which we should. Our overhead was large because we had so many businesses that we were responsible for and so much information. We're now really down to a couple of key businesses. So you're going to see simplification for throughout the year.
Christopher Halpin: Thank you, Corey. Operator, next question.
Chris Halpin: Thank you, Corey. Operator, next question.
Operator: The next question comes from Eric Sheridan with Goldman Sachs. Please go ahead.
Operator: The next question comes from Eric Sheridan with Goldman Sachs. Please go ahead.
Eric Sheridan: Thanks for taking the questions. Maybe two, if I could. First, with respect to the ad business, any mark-to-market views in terms of the overall macro environment, either verticals or the way in which advertisers are spending their money, brand versus direct response, in terms of how that's impacting the business right now? And then I wanted to revisit the comments you made about the forward guidance in your prepared remarks in terms of maybe going a little bit deeper on what you think it might do to impact the operations, freeing people up to think a little more medium to longer term, and whether the investment community could also expect some sort of at least qualitative commentary, mark to market on a quarter-to-quarter basis. Thanks so much.
Eric Sheridan: Thanks for taking the questions. Maybe two, if I could. First, with respect to the ad business, any mark-to-market views in terms of the overall macro environment, either verticals or the way in which advertisers are spending their money, brand versus direct response, in terms of how that's impacting the business right now? And then I wanted to revisit the comments you made about the forward guidance in your prepared remarks in terms of maybe going a little bit deeper on what you think it might do to impact the operations, freeing people up to think a little more medium to longer term, and whether the investment community could also expect some sort of at least qualitative commentary, mark to market on a quarter-to-quarter basis. Thanks so much.
Thank you. Corey operator, next question. And the next question comes from Eric keridan with Goldman Sachs. Please go ahead.
Etc. We, you know, we thought it, we we came to the conclusion. It's a long walk for a short drink, and that doesn't necessarily mean downside. We surprised to the upside last quarter, uh, with very strong Revenue, it's really around head down execution, to drive the strongest best digital businesses. Um, and we'll do that on with an annual basis and and tell you what we're working towards and then to your point we will talk to your other. Your second question, we will give guidance qualitatively, not guidance, we'll give views qualitatively of what's happening in the markets, what's happening in the Dynamics and our strategy?
Thanks Eric. Uh, operator next question.
And the next question comes from, Dan, kernos with stonex. Please go ahead.
Neil Vogel: Oh, sure. I'll do the ad market first, then I'll kick to Chris. So I think we do this a lot around here. I think we put the market at a six out of ten, where it is now. It's healthy, remains generally favorable, and Q4 is pretty solid for us. I think particular to us, we have some real advantages, right? Brands matter, and in an AI world where everything is uncertain and everything's a platform and everything is UGC, the strength of brands really resonate. We're in a lot of markets; that helps. Our programs really perform, both the traditional on-platform and off-platform. Our ad relationships are good, and we're very much with some of the new things we're doing, we're in the ads digest.
Neil Vogel: Oh, sure. I'll do the ad market first, then I'll kick to Chris. So I think we do this a lot around here. I think we put the market at a six out of ten, where it is now. It's healthy, remains generally favorable, and Q4 is pretty solid for us. I think particular to us, we have some real advantages, right? Brands matter, and in an AI world where everything is uncertain and everything's a platform and everything is UGC, the strength of brands really resonate. We're in a lot of markets; that helps. Our programs really perform, both the traditional on-platform and off-platform. Our ad relationships are good, and we're very much with some of the new things we're doing, we're in the ads digest.
Thanks for checking the questions, maybe too. If I could first with respect to the ad business, any mark-to-market views in terms of the overall macro environment, either verticals, or the way in which advertisers are spending their money, brand versus direct response in terms of how that's impacting the business right now. And then I wanted to revisit the comments you made about the forward guidance and your prepared remarks, in terms of maybe going a little bit deeper on what you think it might do to impact, uh, the operations, uh, freeing people off to think a little more medium to longer term and whether the investment Community could also expect some sort of at least qualitative commentary, uh Mark to Market on the quarter to quarter basis. Thanks so much.
Yeah, great thanks. Good morning. Uh, may vote first for Neil. Um any directional way to think about sizing or helping us think about decipher plus this year and should we think of you know any announcements coming the way that you know Roku use Neilson ACR as a data and conversion layer with Amazon DSP or are there any ways that we could think about major Partnerships? And then I guess for uh, Chris just on care. Um, maybe just unpack the growth a little bit how you think it could Trend um you know over the course of the year and then more longer and then longer term just you know what are the aspirations for growth at at Care? Thank you.
So, the first was the cipher. So, we're, we're, we're obviously very excited about the cipher, it's our fastest growing off platform business, in terms of headcount, in terms of Revenue. Um, it's going to be a big driver for us. Again, it it opens up.
Neil Vogel: Not only do we have, like, the real nuts and bolts to deliver, but we've got the cool stuff, too. And it's really helped us. I think the strongest sectors, and again, I can only really speak to us, but some of this does trickle out to the broader market. Health and pharma has been good for us, travel, tech. Some of the weaker sections for us or some of the stuff you're seeing, macro exposed, like food and beverage, CPG, in a large way, has been very challenged. I'm sure you guys have heard about that. That's really our take. Look, the market right now is good enough for us to execute, and that's our main concern.
Neil Vogel: Not only do we have, like, the real nuts and bolts to deliver, but we've got the cool stuff, too. And it's really helped us. I think the strongest sectors, and again, I can only really speak to us, but some of this does trickle out to the broader market. Health and pharma has been good for us, travel, tech. Some of the weaker sections for us or some of the stuff you're seeing, macro exposed, like food and beverage, CPG, in a large way, has been very challenged. I'm sure you guys have heard about that. That's really our take. Look, the market right now is good enough for us to execute, and that's our main concern.
I'm sure I'll do the ad Market first and I'll kick to Chris. So I I think we, we do this a lot around here. I think we put the market at a, at a 6 out of 10 where it is now. It's healthy. Uh, it remained generally favorable in Q4. It's pretty solid for us. I think particularly to us, we have some real advantages, right? Brands matter and and in an AI world where everything is uncertain, and everything's a platform. And everything is ugc the strength of Brands really resonate. We're in a lot of markets that helps our our programs really perform both the traditional on platform. And all platforms, our ad relationships are good and we're very much with some of the new things we're doing, we're in the ad Zeitgeist. Not only do we have like the real nuts and bolts to deliver but we've got the cool stuff too.
and um,
It's it's really helped us and I think the strongest sectors and again I can only really speak to us but some of this does trickle out to the broader Market health and Pharma has been good for us, travel Tech, uh some of the weaker sections for us or or some of the stuff you're seeing macro exposed like, like, food and beverage cpg. Uh,
Eric Sheridan: Perfectly said.
Eric Sheridan: Perfectly said.
Christopher Halpin: On guidance, look, you know. It's a few things. One, there are a lot, especially in People Inc., which is our biggest business. There is a lot of volatility in the underlying market. Neil has talked about everything they're doing to, you know, guide the ship successfully through the choppy waters, and they're proving that out in the data. But stressing about quarter-to-quarter metrics on sessions, individual revenue line items, et cetera, we, you know, we thought we came to the conclusion, it's a long walk for a short drink. And that doesn't necessarily mean downside. We surprised to the upside last quarter with very strong revenue. It's really around head down execution to drive the strongest, best digital businesses.
In a larger way, has been very challenging. I'm sure you guys have heard about that. Um, that's really our take, look, the, the, we, the market right now is good enough for us to execute and that's our main concern.
Chris Halpin: On guidance, look, you know. It's a few things. One, there are a lot, especially in People Inc., which is our biggest business. There is a lot of volatility in the underlying market. Neil has talked about everything they're doing to, you know, guide the ship successfully through the choppy waters, and they're proving that out in the data. But stressing about quarter-to-quarter metrics on sessions, individual revenue line items, et cetera, we, you know, we thought we came to the conclusion, it's a long walk for a short drink. And that doesn't necessarily mean downside. We surprised to the upside last quarter with very strong revenue. It's really around head down execution to drive the strongest, best digital businesses.
perfectly s, and then
Which is, uh, our biggest business.
A lot of Tam for us, right? We can do CTV, we can we can basically Target using our data, which is fantastic. The open web. I I think, um, to Dimension it for you guys, I think we'd say it's, you know, of the growth the the the mid to high single digits growth 2 to 3 points of that, this year will be, uh, decipher plus. It's got real momentum. And I think we're at a place now where Jim Lawson, who, who I believe, who I know that, you know, has really found his footing. We have a real team behind this. And this is a, it's go time on this business, and, and I think you're going to see real results in it. Uh, this year we're we're, we're very, very excited about it again. It's all about our strategy. We're going where the people are. They're, they're and we're bringing advertisers with us, and we're bringing our content with us. And this is a really big part of it and Jim's doing a great job. There's a lot of energy around this, um, and then I'll put the Chris, for the rest of it. Yeah. And, and on care, um,
You know, the consumer business.
Christopher Halpin: We'll do that on an annual basis and tell you what we're working towards. And then to your point, we will talk... Or to your other, your second question, we will give guidance qualitatively. Not guidance, we'll give views qualitatively of what's happening in the markets, what's happening in the dynamics, and our strategy. Thanks, Eric. Operator, next question.
Chris Halpin: We'll do that on an annual basis and tell you what we're working towards. And then to your point, we will talk... Or to your other, your second question, we will give guidance qualitatively. Not guidance, we'll give views qualitatively of what's happening in the markets, what's happening in the dynamics, and our strategy. Thanks, Eric. Operator, next question.
There is a lot of volatility in the underlying Market Neil has talked about, um, everything they're doing to, you know, guide the ship successfully through the choppy Waters, and they're proving that out in the data. But stressing about quarter to quarter metrics on sessions, um, individual Revenue, line items, Etc. We, you know, we thought it, we, we came to the conclusion. It's a long walk for a short drink, and that doesn't necessarily mean downside. We surprised to the upside last quarter, uh, with very strong Revenue, it's really around head down execution, to drive the strongest best digital businesses. Um, and we'll do that on with an annual basis and and tell you what we're working towards and then to your point we will talk to your other. Your second question, we will give guidance qualitatively, not guidance, we'll give views qualitatively of what's happening in the markets, what's happening in the Dynamics and our strategy?
Operator: And the next question comes from Dan Kurnos with StoneX. Please go ahead.
Operator: And the next question comes from Dan Kurnos with StoneX. Please go ahead.
Thanks Eric. Uh, operator next question.
Dan Kurnos: Yeah, great. Thanks. Good morning. Maybe first for Neil, any directional way to think about sizing or helping us think about Decipher Plus this year? And should we think of, you know, any announcements coming the way that, you know, Roku used Nielsen ACR as a data and conversion layer with Amazon DSP, or are there any ways that we could think about major partnerships? And then, I guess, for Chris, just on care, maybe just unpack the growth a little bit, how you think it could trend, you know, over the course of the year, and then more longer, and then longer term, just, you know, what are the aspirations for growth at Care? Thank you.
Dan Kurnos: Yeah, great. Thanks. Good morning. Maybe first for Neil, any directional way to think about sizing or helping us think about Decipher Plus this year? And should we think of, you know, any announcements coming the way that, you know, Roku used Nielsen ACR as a data and conversion layer with Amazon DSP, or are there any ways that we could think about major partnerships? And then, I guess, for Chris, just on care, maybe just unpack the growth a little bit, how you think it could trend, you know, over the course of the year, and then more longer, and then longer term, just, you know, what are the aspirations for growth at Care? Thank you.
And the next question comes from, Dan, kernos with stonex. Please go ahead.
Revenue. Uh, and then drive on from there and then Enterprise, we're working through, you know, some some macro challenges um as uh as as employers cut back. But uh, there's also, you know, opportunities to grow employers um and new new entrance or new new, uh, customers that can come in. So our, our goal is to get back to revenue growth. Next this coming year, uh, we believe we're going to get there and, and have line of sight, uh, margins, we feel good about and and um,
Neil Vogel: I'll go first with D/Cipher. So we're obviously very excited about D/Cipher. It's our fastest-growing off-platform business in terms of headcount, in terms of revenue. It's gonna be a big driver for us. Again, it opens up a lot of TAM for us, right? We can do CTV, we can basically target using our data, which is fantastic, the open web. I think, to dimension it for you guys, I think we'd say it's, you know, of the growth, the mid to high single digits growth, 2 to 3 points of that this year will be D/Cipher Plus. It's got real momentum, and I think we're at a place now where Jim Lawson, who I know that you know, has really found his footing.
Neil Vogel: I'll go first with D/Cipher. So we're obviously very excited about D/Cipher. It's our fastest-growing off-platform business in terms of headcount, in terms of revenue. It's gonna be a big driver for us. Again, it opens up a lot of TAM for us, right? We can do CTV, we can basically target using our data, which is fantastic, the open web. I think, to dimension it for you guys, I think we'd say it's, you know, of the growth, the mid to high single digits growth, 2 to 3 points of that this year will be D/Cipher Plus. It's got real momentum, and I think we're at a place now where Jim Lawson, who I know that you know, has really found his footing.
Yeah, great. Thanks. Good morning. Uh, maybe first for Neil, um, any directional way to think about sizing or helping us think about decipher plus this year and should we think of, you know any announcements coming the way that you know, Roku used Neilson ACR as a data in conversion layer with Amazon DSP or are there any ways that we could think about major Partnerships? And then I guess for uh, Chris just on care. Um, maybe just unpack the growth a little bit how you think it could Trend um you know over the course of the year and then more longer and then longer term just you know what are the aspirations for growth at Care? Thank you.
Uh, uh, the underlying profitability on an ongoing basis care should be growing 15 to 20% given its Market position, uh, given the opportunities in both its segments and, uh, just the ever increasing need for care. Both for consumers, uh, who are really struggling with it across child senior adult pet. Um, and also, uh, employers who are increasingly viewed as a base, uh, a base benefit. Um, I, let's do the last last question, please.
Yeah, operator. Last question, question.
Oh, go first with the cipher so we're we're we're obviously very excited about decipher it's our fastest growing off platform business in terms of headcount, in terms of Revenue. Um it's going to be a big driver for us. Again it it opens up.
And the last question comes from James Heeney with Jeffrey's. Please go ahead.
Neil Vogel: We have a real team behind this, and this is it's go time on this business, and I think you're gonna see real results in it this year. We're very excited about it. Again, it's all about our strategy. We're going where the people are. They're, and we're bringing advertisers with us, we're bringing our content with us, and this is a really big part of it. And Jim's doing a great job. There's a lot of energy around this. And then I'll point to Chris for the rest of it.
Neil Vogel: We have a real team behind this, and this is it's go time on this business, and I think you're gonna see real results in it this year. We're very excited about it. Again, it's all about our strategy. We're going where the people are. They're, and we're bringing advertisers with us, we're bringing our content with us, and this is a really big part of it. And Jim's doing a great job. There's a lot of energy around this. And then I'll point to Chris for the rest of it.
Yeah, great. Um, I think a lot of them have been addressed but just, um, maybe just on the slowdown in digital Revenue growth, um, into the mid to high singles next year. Curious like any conservatism in that guide, um, any comping dynamics that you'd call out, um, driving that, or, you know, is that more of an organic slowdown, just just anything on that. And, and if you can talk about phasing, I know you're not thinking of it on a quarterly basis, but anything we should think about, um, for the year. Thank you.
A lot of Tam for us, right? We can do CTV, we can we can basically Target using our data, which is fantastic. The open web. I I think, um, to Dimension it for you guys, I think we'd say it's, you know, of the growth the the the mid to high single digits growth 2 to 3 points of that, this year will be uh, decipher plus. It's got real momentum. And I think we're at a place now where Jim Lawson who, who I believe, who I know that, you know, has really found his footing. We have a real team behind this and this is a it's go time on this business and and I think you're going to see real results in it. Uh, this year, we're we're we're
Very, very excited about it again.
Christopher Halpin: Yeah, and on Care, you know, the consumer business really was in a multi-year slowdown, partly driven by post-pandemic dynamics, and then also driven by challenges or underperformance on the product and in our marketing. We've taken steps, and Brad Wilson and team have taken steps on a number of those in the consumer, this consumer platform, starting Q2 last year, that we've talked about before. We're seeing the stability in signups. We know our comps, we start to get back to more normalized levels and lap some easier comps starting in Q2. So as we've talked about, we expect to get back to consumer growth mid-year, revenue, and then drive on from there.
Chris Halpin: Yeah, and on Care, you know, the consumer business really was in a multi-year slowdown, partly driven by post-pandemic dynamics, and then also driven by challenges or underperformance on the product and in our marketing. We've taken steps, and Brad Wilson and team have taken steps on a number of those in the consumer, this consumer platform, starting Q2 last year, that we've talked about before. We're seeing the stability in signups. We know our comps, we start to get back to more normalized levels and lap some easier comps starting in Q2. So as we've talked about, we expect to get back to consumer growth mid-year, revenue, and then drive on from there.
It's all about our strategy, we're going where the people are. They're, they're and we're bringing advertisers with us, we're bringing our content with us. And this is a really big part of it and Jim's doing a great job. There's a lot of energy around this, um, and I'll point to Chris for the rest of it. Yeah. And, and on care, um,
You know, the consumer business.
Certainly, um, you know, if you look broadly or cross 25 digital Revenue group 10% uh our guidance of mid to high single digits, reflects some conservatism as we continue to navigate, you know, broader search disruptions. Um, as Barry and Neil have said, we feel good about our positioning, we feel great about the robustness of our monetization, and the off platform strategy, and the scale of and freshness of our content. But, you know, we always want to be thoughtful at the beginning of the year on our Outlook. Um so you know, that that would be the background.
Great. Thank you. Okay, thank you. James. Thank you, everyone. Thank you. All nice to be with you.
Thank you, operator. We can conclude the call.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect
Christopher Halpin: And then enterprise, we're working through, you know, some macro challenges as employers cut back. But there's also, you know, opportunities to grow employers and new customers that can come in. So our goal is to get back to revenue growth this coming year. We believe we're gonna get there and the underlying profitability.
Chris Halpin: And then enterprise, we're working through, you know, some macro challenges as employers cut back. But there's also, you know, opportunities to grow employers and new customers that can come in. So our goal is to get back to revenue growth this coming year. We believe we're gonna get there and the underlying profitability.
Uh, really was in a multi-year Slowdown. Um, post partly driven by post-pandemic Dynamic and then also driven by um, challenges or or underperformance on the product. And in our marketing, uh, we've taken steps in the in Brad. Wilson and team have taken steps on a number of those in the consumer, uh, this consumer platform starting second quarter last year that we've talked before about, we're seeing the stability in signups. Um, we know our our comps, uh, we start to, to get back to more normalized levels, and Laps, some some easier comps starting in Q2. So, as we've talked about, we expect to get back to Consumer growth, mid-year, uh, Revenue, uh and then drive on from there and then Enterprise, we're working through, you know, some some macro challenges um as uh as as employers cut back. But uh, there's also
So you know opportunities to grow employers um and new new entrance or new new uh customers that can come in. So our our goal is to get back to revenue growth. Next this coming year, uh, we believe we're going to get there and, and have line of sight, uh, margins, we feel good about and and um,
Christopher Halpin: On an ongoing basis, Care should be growing 15 to 20%, given its market position, given the opportunities in both its segments and, just the ever-increasing need for care, both for consumers, who are really struggling with it across child, senior, adult, pet, and also, employers who are increasingly view it as a base, a base benefit.
Chris Halpin: On an ongoing basis, Care should be growing 15 to 20%, given its market position, given the opportunities in both its segments and, just the ever-increasing need for care, both for consumers, who are really struggling with it across child, senior, adult, pet, and also, employers who are increasingly view it as a base, a base benefit.
Barry Diller: I think let's do the last, last question, please.
Barry Diller: I think let's do the last, last question, please.
Christopher Halpin: Yeah, operator, last question.
Chris Halpin: Yeah, operator, last question.
Operator: The last question comes from James Heaney with Jefferies. Please go ahead.
Operator: The last question comes from James Heaney with Jefferies. Please go ahead.
Yeah, operator. Last question.
James Heaney: Yeah, great. I think a lot of them have been addressed, but just maybe just on the slowdown in digital revenue growth into the mid to high singles next year. Curious, like, any conservatism in that guide, any comping dynamics that you'd call out driving that? Or, you know, is that more of an organic slowdown? Just anything on that, and if you can talk about phasing, I know you're not thinking of it on a quarterly basis, but anything we should think about for the year. Thank you.
James Heaney: Yeah, great. I think a lot of them have been addressed, but just maybe just on the slowdown in digital revenue growth into the mid to high singles next year. Curious, like, any conservatism in that guide, any comping dynamics that you'd call out driving that? Or, you know, is that more of an organic slowdown? Just anything on that, and if you can talk about phasing, I know you're not thinking of it on a quarterly basis, but anything we should think about for the year. Thank you.
And the last question comes from James Heiny with Jefferies. Please go ahead.
Christopher Halpin: Certainly. You know, if you look broadly across 25, digital revenue grew 10%. Our guidance of mid to high single digits reflects some conservatism as we continue to navigate, you know, broader search disruptions. As Barry and Neil have said, we feel good about our positioning. We feel great about the robustness of our monetization and the off-platform strategy and the scale of and freshness of our content. But, you know, we always wanna be thoughtful at the beginning of the year on our outlook. So you know, that, that would be the background.
Chris Halpin: Certainly. You know, if you look broadly across 25, digital revenue grew 10%. Our guidance of mid to high single digits reflects some conservatism as we continue to navigate, you know, broader search disruptions. As Barry and Neil have said, we feel good about our positioning. We feel great about the robustness of our monetization and the off-platform strategy and the scale of and freshness of our content. But, you know, we always wanna be thoughtful at the beginning of the year on our outlook. So you know, that, that would be the background.
Yeah, great. Um, I think a lot of them have been addressed but just, um, maybe just on the slowdown in digital Revenue growth, um, into the mid to high singles next year. Curious like any conservatism in that guide, um, any comping dynamics that you'd call out, um, driving that, or, you know, is that more of an organic slowdown, just just anything on that. And, and if you can talk about phasing, I know you're not thinking of it on a quarterly basis, but anything we should think about, um, for the year. Thank you.
James Heaney: Great. Thank you.
James Heaney: Great. Thank you.
Certainly, um, you know, if you look broadly across 25 Digital Revenue group, 10%. Uh, our guidance of mid to high single digits reflects some conservatism as we continue to navigate, you know, broader search disruptions. Um, as Barry and Neil have said, we feel good about our positioning, we feel great about the robustness of our monetization and the off-platform strategy, and the scale of and freshness of our content. But, you know, we always want to be thoughtful at the beginning of the year on our outlook. Um, so, you know, that would be the background.
Christopher Halpin: Okay. Thank you, James. Thank you, everyone.
Chris Halpin: Okay. Thank you, James. Thank you, everyone.
Barry Diller: Thank you all. Nice to be with you.
Barry Diller: Thank you all. Nice to be with you.
Christopher Halpin: Thank you, operator. We can conclude the call.
Chris Halpin: Thank you, operator. We can conclude the call.
Great. Thank you. Okay, thank you. James. Thank you, everyone. Thank you. All nice to be with you.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Thank you, operator. We can conclude the call.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect
