Thread by @borrowed_ideas

1/ Thread: $IAC/ $ANGI 3Q'21 Update

Probably not the best idea to post an earnings thread on Friday evening, but for the sake of consistency, let me post anyway.

Here are my notes.

2/ Dotdash

"Dotdash executed phenomenally well growing revenue double digits for 18 straight quarters while expanding margins and generally outpacing the growth of its competitors"

"Dotdash content has a relevant shelf life measured not in days or hours, but months or years."

3/ "of Dotdash’s top 25 advertisers in 2019, all
have spent in 2020 nearly all have spent in 2021 and their spend has grown 29%."

Not much of an impact of IDFA.

"Those advertisements perform cookie or not"

4/ On Meredith deal: "The two businesses are also complementary in how they generate revenues."

This whole paragraph makes me think there is a lot of low hanging fruits for Dotdash/IAC to work on Meredith.

5/ Long-term margins for Dotdash+Meredith is likely to be similar to what Dotdash has posted historically. LTM operating margin for Dotdash is 26.2%.

Tough comp expected, but expects 20% topline growth LT.

Expects $450 mn Adj. EBITDA from digital publishing in 2023.

6/ $ANGI

"Good news is Angi is growing, bad news is HomeAdvisor is still declining. But overall, the trend toward Angi is encouraging The Angi brand now comprises almost 60% of North America revenue up from less than 40% this time last year"

7/ "the services business up 160% year-on-year, about half of that organic, half of it from our Roofing acquisition."

The three things ANGI thinks about:

8/ Some changes in disclosure given their focus on services. Now revenue is segmented in Angi Ads and leads, and Angi Services.

I've been following ANGI for a year, and still requires quite a bit of an effort to follow/understand the numbers with all these changes. Not fun.

9/ sounds like Angi's roofing acquisition is showing good signs, and they may be willing to acquire more to create liquidity in the marketplace.

10/ expects 35% margin for core ads and leads business. Higher take rate/margins for low ticket items and lower take rate/margin for jobs >$10k jobs.

"This is about margin dollars"

11/ "I don't know any large consumer marketplace that's been built recently that doesn't have payments as a core part of the product. So we're going to continue to push on that."

Some discussions on payments and financing as well.

12/ "We have so much opportunity in data that it is almost embarrassing."

13/ Care dot com

Subscribers are up ~33%. As people start going back to work, some macro tailwinds are there.

14/ Following the Meredith deal, IAC expect to have $1.5 Bn pro-forma. IAC also has some Turo warrants which they expect to exercise at some point.

End/ All my twitter threads can be found here: mbi-deepdives.com/twitter-thread…

Have a great weekend, everyone!