IAC(US:IAC)2021-08-05 16:00Revenue Growth - Angi Services revenue grew 127% and 96% for the three and six months ended June 30, 2021, respectively, compared to the prior year periods [162]. - Total revenue earned from Google was $169.6 million and $341.4 million for the three and six months ended June 30, 2021, representing 20% and 21% of the Company's revenue, respectively [163]. - Revenue from the Services Agreement for the three and six months ended June 30, 2021 was $150.8 million and $303.3 million, representing 18% and 19% of total revenue, respectively [164]. - Angi Inc. expects significant revenue growth in Angi Services in the second half of 2021 as it expands and refines the business [162]. - The revenue from the Services Agreement within Ask Media Group was $123.2 million and $244.6 million for the three and six months ended June 30, 2021, respectively [165]. - Angi Inc. revenue increased 12% to $421.0 million, driven by a 127% increase in Angi Services revenue, resulting in 5.0 million Marketplace Monetized Transactions [174]. - Dotdash revenue increased 64% to $73.3 million, attributed to a 69% growth in Display Advertising Revenue and a 58% increase in Performance Marketing Revenue [174]. - Search revenue increased 40% to $183.6 million, with a 72% growth from Ask Media Group, partially offset by a 24% decrease from Desktop [174]. - Emerging & Other revenue increased 40% to $151.7 million, driven by contributions from Care.com and the acquisition of Lifecare [174]. Expenses and Profitability - Cost of revenue increased by $94.4 million, or 61%, to $250.2 million for the three months ended June 30, 2021, primarily due to increases from Search and Angi Inc. [176]. - Selling and marketing expenses increased by $58.4 million, or 21%, to $341.0 million for the three months ended June 30, 2021, with significant contributions from Angi Inc. and Emerging & Other [180]. - Angi Inc. has invested significantly in Angi Services, contributing to lower profitability for the three and six months ended June 30, 2021 [162]. - The company anticipates a substantial decline in B2C revenue and profits beyond 2021, while Desktop operating income is expected to increase modestly [167]. - The company has undertaken cost reduction measures and eliminated all marketing of B2C products starting March 2021, positively impacting profitability in 2021 [167]. - General and administrative expenses decreased by 25% to $174.7 million for the three months ended June 30, 2021, compared to $231.8 million in the same period of 2020 [184]. - Product development expenses increased by 32% to $61.3 million for the three months ended June 30, 2021, compared to $46.3 million in the same period of 2020 [188]. - Operating loss for Angi Inc. decreased by $50.4 million to a loss of $32.7 million for the three months ended June 30, 2021, compared to a loss of $17.6 million in the same period of 2020 [193]. - Total operating loss decreased by 71% to $28.4 million for the three months ended June 30, 2021, compared to a loss of $97.4 million in the same period of 2020 [193]. Investments and Cash Flow - The company generated $177.0 million of consolidated operating cash flows for the six months ended June 30, 2021, with Angi Inc. contributing $59.3 million [245]. - Net cash provided by operating activities attributable to continuing operations for the three months ended June 30, 2021, was $176,985,000, up from $66,298,000 in 2020 [228]. - Total cash and cash equivalents for Angi Inc. as of June 30, 2021, was $584,260,000, down from $812,705,000 at the end of 2020 [227]. - Total long-term debt as of June 30, 2021, was $494,195,000, reduced from $712,277,000 at the end of 2020 [227]. - Net cash used in investing activities attributable to continuing operations for the three months ended June 30, 2021, was $(153,920,000), compared to $(933,277,000) in 2020 [228]. - The company reported a net cash used in financing activities of $(329,415,000) for the three months ended June 30, 2021, compared to $2,467,992,000 in 2020 [228]. - The company expects to fund its normal operating requirements and capital expenditures through existing cash and expected positive cash flows from operations [248]. Market and Investment Performance - The company recognized an unrealized gain of $275.1 million on its investment in MGM Resorts International for the three months ended June 30, 2021 [205]. - The company recorded a $657.6 million unrealized gain on the investment in MGM for the six months ended June 30, 2021 [229]. - The cumulative unrealized pre-tax gain through June 30, 2021, is $1.5 billion [254]. - The carrying value of the Company's investment in MGM was $2.5 billion at June 30, 2021, representing approximately 27% of IAC's consolidated total assets [254]. - A $2.00 increase or decrease in the share price of MGM would result in an unrealized gain or loss of $118.1 million [254]. Corporate Governance and Controls - The Company's disclosure controls and procedures were evaluated and deemed effective as of the end of the reporting period [257]. - There were no changes to the internal control over financial reporting that materially affected the Company during the quarter ended June 30, 2021 [258].