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NEW YORK - IAC (NASDAQ:IAC), the media and internet company, saw its shares fall 4.4% after reporting second quarter revenue that missed analyst expectations, despite showing improved profitability and continued digital growth at its newly rebranded People Inc. division.
The company reported revenue of $586.9 million for the second quarter, falling short of the $601.35 million consensus estimate and representing a 7% decline YoY. However, IAC posted earnings per share of $2.57, a significant improvement from a loss of -$1.71 in the same quarter last year.
People Inc. (formerly Dotdash Meredith (NYSE:MDP)) was a bright spot, with digital revenue increasing 9% to $260 million, accelerating from 7% growth in the first quarter. Print revenue continued its decline, falling 9% to $174 million. The division’s operating income jumped 90% to $35 million, while Adjusted EBITDA rose 5% to $70 million.
"With seven consecutive quarters of Digital revenue growth, People Inc. continues to build and innovate, backed by premier brands, superior technology and unmatched scale," said Barry Diller, Chairman and Senior Executive of IAC.
Overall, IAC’s operating income improved to $0.6 million compared to a loss of $21.5 million in the prior-year quarter, representing a $22 million improvement. Adjusted EBITDA grew 15% to $51.4 million.
The company also provided full-year 2025 guidance, projecting operating income between $82-$140 million and Adjusted EBITDA of $247-$285 million.
People Inc. successfully refinanced its existing debt of $1.47 billion during the quarter, extending maturities until 2030 and 2032, positioning the division for continued growth following its recent rebranding that taps into the power of its flagship PEOPLE brand.
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