Thread by @borrowed_ideas

1/16 $IAC 4Q'21 Update

"I suspect we are currently entering a sustained new market environment for valuations, where the cost of capital will return closer to historical norms and a risk premium will return and stay for a while."

More notes from the latest letter/transcript.

2/16 Dotdash +Meredith

"When we consider acquisitions or investments one of the questions we ask ourselves is how long until we’ll know whether the investment worked...With the Meredith acquisition, we ought to know by the second year whether the acquisition was a winner."

3/16 "We will no longer govern ongoing print decisions by whether an advertiser is willing to advertise, but by whether a reader is willing to purchase"

4/16 "of the top 20 clients, I think, 2 or 3 overlap. We're very strong Finance and health care, they're very strong CPG. So that's very complementary"

"Each quarter, our top 25 advertisers, 23, 24 renew every quarter. Meredith isn't anywhere near that level."

5/16 "we target reaching Digital revenue growth goals (15 20% year over year) towards the end of 2022 and $450 million of 2023 Digital Adjusted EBITDA"

6/16 $ANGI

ANGI services was 27% of revenue in 4Q'21; was 15% of revenue in 4Q'20

Angi now back to the traffic level that Angie's List was back at.

7/16 "overall, where we're starting to get our arms around there is, is our take rate sufficient? It's gone up for the last 3 or 4 quarters, now it's stabilized at we think is a healthy rate."

8/16 "on Angi Key, which is our pay-to-save membership program, we're currently tracking over200,000 members."

9/16 Bluecrew and Vivian

One of them will be 9-figure biz, and the other will be bigger 8-figure biz this year

10/16 "just as we’ve seen in dating and home services, matching replaces searching The narrower the job category, the better the software ’s ability to match job seeker with job hirer."

In 2H, Bluecrew's revenue +85% YoY, active workplaces +90%, and active workers +100% YoY

11/16 "Vivian quickly established itself as a market leader, now facilitating ~15% of job placements in a fragmented category, representing approximately 1.5 billion in annualized labor spend. Revenue grew more than 3x in 2021 off of a small base but impressive nonetheless."

12/16 "We often frame investment opportunities around a conviction that certain types of product evolutions are inevitable, like buying a ticket or meeting someone online We believe the future in the job matching category is obvious"

13/16 $MGM

"if you believe that there's any future in Macau, if you believe that the digital business has real value, the joint venture, and if you believe that groups come back to Las Vegas at some point at scale, then it is still very, very attractively priced."

$TURO

14/16 "we own about 25-ish percent of the business, I think, right now. And the warrant is to own another 10% of the business, so 35-ish percent, I think, give or take 5% on those figures, but that's the ballpark."

15/16 Valuation

I know, I know nobody likes SOTP, but we literally have no other option here

16/16 End/ I'll cover $ADSK and $SQ next week.

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