Delaware (State or other jurisdiction of incorporation) | 0-20570 (Commission File Number) | 59-2712887 (IRS Employer Identification No.) |
555 West 18th Street, New York, NY (Address of principal executive offices) | 10011 (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | the Company created two new segments, Publishing and Applications, primarily from the businesses previously included in the Search & Applications segment. The businesses within the new Publishing segment include About.com, Dictionary.com, Investopedia and The Daily Beast (previously included in the Media segment), as well as Ask.com, ASKfm and CityGrid. The businesses within the new Applications segment include the Company's direct-to-consumer downloadable desktop and mobile applications operations (B2C), including SlimWare and Apalon, and its partnership operations (B2B). |
• | the Match Group segment includes the businesses of Match Group, Inc., which completed its initial public offering on November 24, 2015. |
• | the Video segment, formerly the Media segment, includes Vimeo and DailyBurn (previously included in The Match Group segment), as well as Electus, IAC Films, CollegeHumor and Notional. The Daily Beast, previously included in the Media segment, was moved to the new Publishing segment. |
• | HomeAdvisor is now reported as its own segment; it was previously included in the eCommerce segment, which has been eliminated. |
• | the newly created Other segment includes ShoeBuy (previously included in the eCommerce segment) and PriceRunner (previously included in the Search & Applications segment). |
Exhibit No. | Description | |
99.1 | Press Release of IAC/InterActiveCorp, dated January 21, 2016. | |
99.2 | Supplemental financial information. |
IAC/INTERACTIVECORP | |||
By: | /s/ Gregg Winiarski | ||
Name: | Gregg Winiarski | ||
Title: | Executive Vice President, General Counsel and Secretary |
• | Match Group: Match Group, Inc. (“Match Group”), which completed its initial public offering on November 24, 2015, is the world’s leading provider of dating products. Match Group operates a portfolio of over 45 brands, including Match, OkCupid, Tinder, PlentyOfFish, Meetic, Twoo, OurTime, BlackPeopleMeet and FriendScout24 and, according to data obtained from Research Now, owns four of the top five brands by unaided awareness in North America. As of September 30, 2015, Match Group (pro forma for its acquisition of PlentyOfFish, which was completed in October 2015) had approximately 59 million monthly active users and 4.7 million paid members. |
• | HomeAdvisor: A leading nationwide home services digital marketplace, HomeAdvisor helps connect consumers with home professionals in the $330 billion market for home improvement projects. As of September 30, 2015, HomeAdvisor had more than 100,000 active pre-screened and customer-rated home professionals. HomeAdvisor’s domestic business revenue growth accelerated for the 8th consecutive quarter in Q3 2015 to 46% year over year, and it has generated more than 9 million service requests over the past year, a 40% year over year increase. |
• | Video: IAC’s collection of premium digital video properties seeks to capitalize on the growing number of consumers who have cut the traditional pay TV cord - or more frequently, never had a cord to begin with. The segment is headlined by Vimeo, a preeminent video platform with over 650,000 paid subscribers as of September 30, 2015, and a rapidly growing Video on Demand (VOD) marketplace where, as of the end of Q3 2015, more than 8,000 passionate creators had uploaded nearly 27,000 titles purchased by over 1 million viewers. The segment also includes DailyBurn, a streaming video fitness service with over 100,000 paying subscribers as of September 30, 2015, as well as Electus, IAC Films, CollegeHumor and Notional, a collection of |
• | Publishing: Launched in December 2015, IAC Publishing brings together some of the web’s most trusted publishers, including premium brands About.com, Dictionary.com, Investopedia and The Daily Beast which, as of December 2015, collectively reached more than 100 million monthly users domestically. As one of the world’s largest digital publishers, IAC Publishing is well positioned to take advantage of the $66 billion a year spent on digital advertising in the U.S. alone. The segment also includes Ask.com, ASKfm and CityGrid. |
• | Applications: At the end of Q3 2015, IAC Applications saw its apps collectively downloaded more than 1 million times a day, making it one of the largest and most profitable distributors of utility-focused browser, desktop and mobile apps in the world. This segment includes direct-to-consumer downloadable desktop and mobile applications, including SlimWare (subscription desktop software) and top iOS developer Apalon, and IAC’s partner-facing applications business. At the end of Q3 2015, the direct-to-consumer business alone had 35 million daily active users spread across 115 products on desktop, 2.8 million daily active users spread across 53 products on mobile, and 1.3 million paid subscribers to SlimWare software products. |
2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q1 | Q2 | Q3 | Q4 | YTD | YTD | |||||||||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Match Group | $ | 235,069 | $ | 248,817 | $ | 268,971 | $ | 209,785 | $ | 211,906 | $ | 227,581 | $ | 238,996 | $ | 888,268 | $ | 803,089 | |||||||||||||||||
HomeAdvisor | 75,844 | 94,150 | 99,435 | 61,033 | 74,693 | 75,405 | 72,410 | 283,541 | 239,471 | ||||||||||||||||||||||||||
Publishing | 179,025 | 154,447 | 178,701 | 192,957 | 193,583 | 198,294 | 206,715 | 791,549 | 803,141 | ||||||||||||||||||||||||||
Applications | 197,467 | 190,801 | 193,278 | 198,395 | 194,559 | 189,621 | 194,132 | 776,707 | 834,636 | ||||||||||||||||||||||||||
Video | 46,472 | 40,720 | 60,125 | 36,222 | 37,609 | 50,412 | 58,211 | 182,454 | 161,457 | ||||||||||||||||||||||||||
Other | 38,853 | 42,318 | 38,173 | 41,959 | 44,228 | 41,163 | 60,484 | 187,834 | 182,615 | ||||||||||||||||||||||||||
Inter-segment elimination | (218 | ) | (121 | ) | (122 | ) | (104 | ) | (263 | ) | (245 | ) | (194 | ) | (806 | ) | (1,422 | ) | |||||||||||||||||
Total | $ | 772,512 | $ | 771,132 | $ | 838,561 | $ | 740,247 | $ | 756,315 | $ | 782,231 | $ | 830,754 | $ | 3,109,547 | $ | 3,022,987 | |||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||||||||
Match Group | $ | 27,040 | $ | 40,522 | $ | 58,356 | $ | 40,696 | $ | 57,465 | $ | 62,868 | $ | 67,538 | $ | 228,567 | $ | 221,333 | |||||||||||||||||
HomeAdvisor | (3,997 | ) | 1,589 | 6,095 | 81 | 1,185 | (41 | ) | (164 | ) | 1,061 | 284 | |||||||||||||||||||||||
Publishing | 19,376 | 10,160 | 14,149 | 25,531 | 26,100 | 26,702 | 32,190 | 110,523 | 119,484 | ||||||||||||||||||||||||||
Applications | 38,906 | 52,631 | 46,539 | 39,640 | 45,313 | 48,789 | 45,218 | 178,960 | 214,916 | ||||||||||||||||||||||||||
Video | (20,469 | ) | (10,457 | ) | (5,655 | ) | (12,925 | ) | (9,919 | ) | (8,784 | ) | (11,718 | ) | (43,346 | ) | (24,144 | ) | |||||||||||||||||
Other | (541 | ) | (399 | ) | 195 | 632 | 2,016 | (96 | ) | 5,556 | 8,108 | (344 | ) | ||||||||||||||||||||||
Corporate | (25,196 | ) | (31,277 | ) | (32,549 | ) | (21,943 | ) | (26,470 | ) | (28,485 | ) | (28,248 | ) | (105,146 | ) | (105,326 | ) | |||||||||||||||||
Total | $ | 35,119 | $ | 62,769 | $ | 87,130 | $ | 71,712 | $ | 95,690 | $ | 100,953 | $ | 110,372 | $ | 378,727 | $ | 426,203 | |||||||||||||||||
Stock-based compensation expense: | |||||||||||||||||||||||||||||||||||
Match Group | $ | 6,299 | $ | 11,626 | $ | 13,057 | $ | 4,997 | $ | 5,809 | $ | 5,804 | $ | 4,241 | $ | 20,851 | $ | 12,228 | |||||||||||||||||
HomeAdvisor | 420 | 420 | 410 | — | — | 138 | 420 | 558 | — | ||||||||||||||||||||||||||
Publishing | — | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||||||||
Applications | — | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||||||||
Video | 147 | 147 | 50 | 164 | 161 | 161 | 161 | 647 | 633 | ||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | (29 | ) | |||||||||||||||||||||||||
Corporate | 12,045 | 13,756 | 13,492 | 4,452 | 10,582 | 11,229 | 11,315 | 37,578 | 40,171 | ||||||||||||||||||||||||||
Total | $ | 18,911 | $ | 25,949 | $ | 27,009 | $ | 9,613 | $ | 16,552 | $ | 17,332 | $ | 16,137 | $ | 59,634 | $ | 53,005 | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q1 | Q2 | Q3 | Q4 | YTD | YTD | |||||||||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||||||||||||||||
Depreciation: | |||||||||||||||||||||||||||||||||||
Match Group | $ | 7,045 | $ | 6,622 | $ | 6,137 | $ | 5,778 | $ | 5,570 | $ | 5,774 | $ | 8,425 | $ | 25,547 | $ | 20,202 | |||||||||||||||||
HomeAdvisor | 1,551 | 1,589 | 1,627 | 1,401 | 1,545 | 1,591 | 1,983 | 6,520 | 5,174 | ||||||||||||||||||||||||||
Publishing | 2,507 | 2,423 | 2,363 | 3,130 | 3,823 | 2,417 | 2,486 | 11,856 | 14,822 | ||||||||||||||||||||||||||
Applications | 1,042 | 1,188 | 1,302 | 1,292 | 1,213 | 1,093 | 787 | 4,385 | 4,346 | ||||||||||||||||||||||||||
Video | 198 | 226 | 289 | 277 | 215 | 218 | 189 | 899 | 1,133 | ||||||||||||||||||||||||||
Other | 549 | 575 | 700 | 417 | 425 | 485 | 497 | 1,824 | 3,714 | ||||||||||||||||||||||||||
Corporate | 2,676 | 2,877 | 3,207 | 2,523 | 2,466 | 2,555 | 2,581 | 10,125 | 9,518 | ||||||||||||||||||||||||||
Total | $ | 15,568 | $ | 15,500 | $ | 15,625 | $ | 14,818 | $ | 15,257 | $ | 14,133 | $ | 16,948 | $ | 61,156 | $ | 58,909 |
Amortization of intangibles: | |||||||||||||||||||||||||||||||||||
Match Group | $ | 3,877 | $ | 5,901 | $ | 4,352 | $ | 1,837 | $ | 1,684 | $ | 3,320 | $ | 4,554 | $ | 11,395 | $ | 17,125 | |||||||||||||||||
HomeAdvisor | 1,190 | 1,102 | 772 | 2,465 | 2,468 | 3,197 | 1,432 | 9,562 | 9,915 | ||||||||||||||||||||||||||
Publishing | 4,770 | 4,754 | 4,563 | 6,698 | 6,977 | 7,830 | 7,076 | 28,581 | 27,643 | ||||||||||||||||||||||||||
Applications | 1,581 | 1,573 | 1,573 | — | 787 | 400 | 1,334 | 2,521 | — | ||||||||||||||||||||||||||
Video | 423 | 379 | 377 | 256 | 698 | 635 | 510 | 2,099 | 981 | ||||||||||||||||||||||||||
Other | 714 | 702 | 701 | 723 | 792 | 1,069 | 1,184 | 3,768 | 4,179 | ||||||||||||||||||||||||||
Corporate | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total | $ | 12,555 | $ | 14,411 | $ | 12,338 | $ | 11,979 | $ | 13,406 | $ | 16,451 | $ | 16,090 | $ | 57,926 | $ | 59,843 | |||||||||||||||||
Acquisition-related contingent consideration fair value adjustments: | |||||||||||||||||||||||||||||||||||
Match Group | $ | (11,011 | ) | $ | (1,223 | ) | $ | 755 | $ | (27 | ) | $ | 727 | $ | (14,281 | ) | $ | 669 | $ | (12,912 | ) | $ | 343 | ||||||||||||
HomeAdvisor | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Publishing | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Applications | 4,020 | (6,297 | ) | (1,513 | ) | — | — | — | 326 | 326 | — | ||||||||||||||||||||||||
Video | (5 | ) | (2,430 | ) | (202 | ) | — | (200 | ) | — | (15 | ) | (215 | ) | — | ||||||||||||||||||||
Other | — | — | — | — | — | — | (566 | ) | (566 | ) | — | ||||||||||||||||||||||||
Corporate | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total | $ | (6,996 | ) | $ | (9,950 | ) | $ | (960 | ) | $ | (27 | ) | $ | 527 | $ | (14,281 | ) | $ | 414 | $ | (13,367 | ) | $ | 343 | |||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||||||||
Match Group | $ | 33,250 | $ | 63,448 | $ | 82,657 | $ | 53,281 | $ | 71,255 | $ | 63,485 | $ | 85,427 | $ | 273,448 | $ | 271,231 | |||||||||||||||||
HomeAdvisor | (836 | ) | 4,700 | 8,904 | 3,947 | 5,198 | 4,885 | 3,671 | 17,701 | 15,373 | |||||||||||||||||||||||||
Publishing | 26,653 | 17,337 | 21,075 | 35,359 | 36,900 | 36,949 | 41,752 | 150,960 | 161,950 | ||||||||||||||||||||||||||
Applications | 45,549 | 49,095 | 47,901 | 40,932 | 47,313 | 50,282 | 47,665 | 186,192 | 219,263 | ||||||||||||||||||||||||||
Video | (19,706 | ) | (12,135 | ) | (5,141 | ) | (12,228 | ) | (9,045 | ) | (7,770 | ) | (10,873 | ) | (39,916 | ) | (21,397 | ) | |||||||||||||||||
Other | 722 | 878 | 1,596 | 1,772 | 3,233 | 1,458 | 6,671 | 13,134 | 7,520 | ||||||||||||||||||||||||||
Corporate | (10,475 | ) | (14,644 | ) | (15,850 | ) | (14,968 | ) | (13,422 | ) | (14,701 | ) | (14,352 | ) | (57,443 | ) | (55,637 | ) | |||||||||||||||||
Total | $ | 75,157 | $ | 108,679 | $ | 141,142 | $ | 108,095 | $ | 141,432 | $ | 134,588 | $ | 159,961 | $ | 544,076 | $ | 598,303 |
2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q1 | Q2 | Q3 | Q4 | YTD | YTD | |||||||||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 75,157 | $ | 108,679 | $ | 141,142 | $ | 108,095 | $ | 141,432 | $ | 134,588 | $ | 159,961 | $ | 544,076 | $ | 598,303 | |||||||||||||||||
Stock-based compensation expense | (18,911 | ) | (25,949 | ) | (27,009 | ) | (9,613 | ) | (16,552 | ) | (17,332 | ) | (16,137 | ) | (59,634 | ) | (53,005 | ) | |||||||||||||||||
Depreciation | (15,568 | ) | (15,500 | ) | (15,625 | ) | (14,818 | ) | (15,257 | ) | (14,133 | ) | (16,948 | ) | (61,156 | ) | (58,909 | ) | |||||||||||||||||
Amortization of intangibles | (12,555 | ) | (14,411 | ) | (12,338 | ) | (11,979 | ) | (13,406 | ) | (16,451 | ) | (16,090 | ) | (57,926 | ) | (59,843 | ) | |||||||||||||||||
Acquisition-related contingent consideration fair value adjustments | 6,996 | 9,950 | 960 | 27 | (527 | ) | 14,281 | (414 | ) | 13,367 | (343 | ) | |||||||||||||||||||||||
Operating income | 35,119 | 62,769 | 87,130 | 71,712 | 95,690 | 100,953 | 110,372 | 378,727 | 426,203 | ||||||||||||||||||||||||||
Equity in (losses) income of unconsolidated affiliates | (283 | ) | (193 | ) | 398 | (1,935 | ) | (6,850 | ) | (612 | ) | (300 | ) | (9,697 | ) | (6,615 | ) | ||||||||||||||||||
Interest expense | (14,064 | ) | (15,214 | ) | (15,992 | ) | (14,064 | ) | (14,046 | ) | (14,009 | ) | (14,195 | ) | (56,314 | ) | (33,596 | ) | |||||||||||||||||
Other income (expense), net | 7,271 | (1,445 | ) | 34,000 | (23 | ) | (62,900 | ) | 4,113 | 16,023 | (42,787 | ) | 30,309 | ||||||||||||||||||||||
Earnings from continuing operations before income taxes | 28,043 | 45,917 | 105,536 | 55,690 | 11,894 | 90,445 | 111,900 | 269,929 | 416,301 | ||||||||||||||||||||||||||
Income tax (provision) benefit | (6,180 | ) | 11,968 | (40,510 | ) | (21,385 | ) | (29,889 | ) | 59,816 | (43,914 | ) | (35,372 | ) | (134,502 | ) | |||||||||||||||||||
Earnings (loss) from continuing operations | 21,863 | 57,885 | 65,026 | 34,305 | (17,995 | ) | 150,261 | 67,986 | 234,557 | 281,799 | |||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of tax | 125 | (153 | ) | 17 | (814 | ) | (868 | ) | 175,730 | 625 | 174,673 | 1,926 | |||||||||||||||||||||||
Net earnings (loss) | 21,988 | 57,732 | 65,043 | 33,491 | (18,863 | ) | 325,991 | 68,611 | 409,230 | 283,725 | |||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 4,417 | 1,573 | 568 | 2,394 | 867 | 821 | 1,561 | 5,643 | 2,059 | ||||||||||||||||||||||||||
Net earnings (loss) attributable to IAC shareholders | $ | 26,405 | $ | 59,305 | $ | 65,611 | $ | 35,885 | $ | (17,996 | ) | $ | 326,812 | $ | 70,172 | $ | 414,873 | $ | 285,784 |
"7$8DQE7RQE'^M^E_@IU[4D22214I))))3__TO54DDDE*222
M24I>7?5;!MI_QCY>2ZRAS#=G'97?6^WW/<1NQZWNN;_+]GL7I.;U#!Z?4+\[
M(JQ:BX,%ESVL;N/T6[["UN[1>2_5?J/3\?\ QBY>=?DU58;KLYS "7$8DQE7RQE'^M^E_@IU[4D22214I)))
M)3__TO54DDDE*22224I>7?5;!MI_QCY>2ZRAS#=G'97?6^WW/<1NQZWNN;_+
M]GL7I.;U#!Z?4+\[(JQ:BX,%ESVL;N/T6[["UN[1>2_5?J/3\?\ QBY>=?DU
M58;KLYS0!YJ'I0>OA[I'Q,?/A]I'Y0?OQ_J(!4@
M02!L()@@Q"#P(1PA2"%U(:$ASB'[(B