UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 20, 2020
(Exact name of registrant as specified in charter)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act: | ||||
Title of each class | Trading Symbol | Name of exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
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ITEM 7.01 REGULATION FD DISCLOSURE.
During the quarter ended June 30, 2020, IAC/InterActiveCorp (the “Company” or the “Registrant”) realigned its reportable segments as follows:
• | the ANGI Homeservices, Vimeo and Dotdash reportable segments remain unchanged; |
• | Search is a new reportable segment, which includes Ask Media Group, which was previously a separate reportable segment (and was reported in the Emerging & Other segment in the financial statements of Old IAC/InterActiveCorp prior to the Match Separation), and Desktop, which was previously included in the Applications reportable segment; and |
• | Emerging & Other, which consists of Care.com, Mosaic Group, which was previously included in the Applications reportable segment, Bluecrew, Nursefly, The Daily Beast, IAC Films and the following businesses for periods prior to their sales: College Humor Media, which was sold on March 6, 2020, and CityGrid, Dictionary.com and Electus, which were sold in the fourth quarter of 2018. |
Attached and incorporated herein by reference as Exhibit 99.1 is certain supplemental financial information reflecting the realignment of the Company’s reportable segments described above. Exhibit 99.1 is being furnished by the Registrant pursuant to Regulation FD.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit No. | Description | |
Supplemental financial information. | ||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
IAC/INTERACTIVECORP | |||
By: | /s/ GLENN H. SCHIFFMAN | ||
Name: | Glenn H. Schiffman | ||
Title: | Executive Vice President and Chief Financial Officer | ||
Date: July 20, 2020
3
Exhibit 99.1
The tables below reflect the realignment of the Company's reportable segments described in Item 7.01 of this Form 8-K.
2018 | 2019 | 2020 | |||||||||||||||||||||||||
FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
ANGI Homeservices | $ | 1,132,241 | $ | 303,443 | $ | 343,896 | $ | 357,358 | $ | 321,508 | $ | 1,326,205 | $ | 343,650 | |||||||||||||
Vimeo | 159,641 | 43,581 | 45,713 | 52,145 | 54,576 | 196,015 | 56,968 | ||||||||||||||||||||
Dotdash | 130,991 | 33,961 | 37,728 | 40,285 | 55,620 | 167,594 | 44,120 | ||||||||||||||||||||
Search | 823,950 | 196,044 | 193,900 | 185,664 | 166,576 | 742,184 | 154,419 | ||||||||||||||||||||
Emerging & Other | 286,586 | 64,253 | 67,579 | 69,988 | 72,287 | 274,107 | 85,042 | ||||||||||||||||||||
Inter-segment eliminations | (361 | ) | (62 | ) | (131 | ) | (58 | ) | (53 | ) | (304 | ) | (75 | ) | |||||||||||||
Total | $ | 2,533,048 | $ | 641,220 | $ | 688,685 | $ | 705,382 | $ | 670,514 | $ | 2,705,801 | $ | 684,124 | |||||||||||||
Operating Income (Loss): | |||||||||||||||||||||||||||
ANGI Homeservices | $ | 63,906 | $ | (3,641 | ) | $ | 11,403 | $ | 24,726 | $ | 6,157 | $ | 38,645 | $ | (16,296 | ) | |||||||||||
Vimeo | (35,594 | ) | (17,784 | ) | (11,616 | ) | (11,155 | ) | (11,366 | ) | (51,921 | ) | (14,589 | ) | |||||||||||||
Dotdash | 18,778 | 3,047 | 7,010 | 3,695 | 15,269 | 29,021 | 2,411 | ||||||||||||||||||||
Search | 151,425 | 40,088 | 31,705 | 28,758 | 21,796 | 122,347 | (220,563 | ) | |||||||||||||||||||
Emerging & Other | (26,627 | ) | (17,252 | ) | (12,527 | ) | 8,520 | (531 | ) | (21,790 | ) | (17,870 | ) | ||||||||||||||
Corporate | (136,053 | ) | (38,641 | ) | (39,745 | ) | (40,632 | ) | (47,733 | ) | (166,751 | ) | (45,431 | ) | |||||||||||||
Total | $ | 35,835 | $ | (34,183 | ) | $ | (13,770 | ) | $ | 13,912 | $ | (16,408 | ) | $ | (50,449 | ) | $ | (312,338 | ) | ||||||||
Stock-based compensation expense: | |||||||||||||||||||||||||||
ANGI Homeservices | $ | 97,078 | $ | 19,282 | $ | 17,520 | $ | 8,784 | $ | 22,669 | $ | 68,255 | $ | 25,575 | |||||||||||||
Vimeo | — | — | — | — | — | — | — | ||||||||||||||||||||
Dotdash | — | — | — | — | — | — | — | ||||||||||||||||||||
Search | — | — | — | — | — | — | — | ||||||||||||||||||||
Emerging & Other | 919 | — | — | — | — | — | 25 | ||||||||||||||||||||
Corporate | 50,408 | 15,393 | 18,087 | 15,801 | 16,802 | 66,083 | 11,581 | ||||||||||||||||||||
Total | $ | 148,405 | $ | 34,675 | $ | 35,607 | $ | 24,585 | $ | 39,471 | $ | 134,338 | $ | 37,181 | |||||||||||||
2018 | 2019 | 2020 | |||||||||||||||||||||||||
FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||||||||
Depreciation: | |||||||||||||||||||||||||||
ANGI Homeservices | $ | 24,310 | $ | 6,999 | $ | 8,796 | $ | 11,244 | $ | 12,876 | $ | 39,915 | $ | 12,138 | |||||||||||||
Vimeo | 1,200 | 193 | 132 | 39 | 114 | 478 | 58 | ||||||||||||||||||||
Dotdash | 969 | 226 | 218 | 216 | 314 | 974 | 210 | ||||||||||||||||||||
Search | 3,311 | 526 | 486 | 419 | 385 | 1,816 | 320 | ||||||||||||||||||||
Emerging & Other | 969 | 168 | 175 | 203 | 169 | 715 | 302 | ||||||||||||||||||||
Corporate | 11,634 | 3,028 | 3,086 | 2,888 | 3,049 | 12,051 | 2,464 | ||||||||||||||||||||
Total | $ | 42,393 | $ | 11,140 | $ | 12,893 | $ | 15,009 | $ | 16,907 | $ | 55,949 | $ | 15,492 | |||||||||||||
Amortization of intangibles: | |||||||||||||||||||||||||||
ANGI Homeservices | $ | 62,212 | $ | 14,539 | $ | 13,713 | $ | 14,169 | $ | 13,061 | $ | 55,482 | $ | 12,980 | |||||||||||||
Vimeo | 6,349 | 1,391 | 2,020 | 3,119 | 3,123 | 9,653 | 3,123 | ||||||||||||||||||||
Dotdash | 1,637 | 3,877 | 1,147 | 3,115 | 1,467 | 9,606 | 4,390 | ||||||||||||||||||||
Search | 28,169 | — | — | — | — | — | 21,400 | ||||||||||||||||||||
Emerging & Other | 8,714 | 2,534 | 2,346 | 2,142 | 2,105 | 9,127 | 3,866 | ||||||||||||||||||||
Corporate | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 107,081 | $ | 22,341 | $ | 19,226 | $ | 22,545 | $ | 19,756 | $ | 83,868 | $ | 45,759 | |||||||||||||
Acquisition-related contingent consideration fair value adjustments: | |||||||||||||||||||||||||||
ANGI Homeservices | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Vimeo | — | — | — | — | — | — | — | ||||||||||||||||||||
Dotdash | — | — | — | — | — | — | — | ||||||||||||||||||||
Search | — | — | — | — | — | — | — | ||||||||||||||||||||
Emerging & Other | 1,136 | 1,529 | 1,617 | (16,139 | ) | (6,745 | ) | (19,738 | ) | (6,282 | ) | ||||||||||||||||
Corporate | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 1,136 | $ | 1,529 | $ | 1,617 | $ | (16,139 | ) | $ | (6,745 | ) | $ | (19,738 | ) | $ | (6,282 | ) | |||||||||
Goodwill impairment: | |||||||||||||||||||||||||||
ANGI Homeservices | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Vimeo | — | — | — | — | — | — | — | ||||||||||||||||||||
Dotdash | — | — | — | — | — | — | — | ||||||||||||||||||||
Search | — | — | — | — | — | — | 211,973 | ||||||||||||||||||||
Emerging & Other | — | — | — | — | 3,318 | 3,318 | — | ||||||||||||||||||||
Corporate | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 3,318 | $ | 3,318 | $ | 211,973 | |||||||||||||
2018 | 2019 | 2020 | |||||||||||||||||||||||||
FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||
ANGI Homeservices | $ | 247,506 | $ | 37,179 | $ | 51,432 | $ | 58,923 | $ | 54,763 | $ | 202,297 | $ | 34,397 | |||||||||||||
Vimeo | (28,045 | ) | (16,200 | ) | (9,464 | ) | (7,997 | ) | (8,129 | ) | (41,790 | ) | (11,408 | ) | |||||||||||||
Dotdash | 21,384 | 7,150 | 8,375 | 7,026 | 17,050 | 39,601 | 7,011 | ||||||||||||||||||||
Search | 182,905 | 40,614 | 32,191 | 29,177 | 22,181 | 124,163 | 13,130 | ||||||||||||||||||||
Emerging & Other | (14,889 | ) | (13,021 | ) | (8,389 | ) | (5,274 | ) | (1,684 | ) | (28,368 | ) | (19,959 | ) | |||||||||||||
Corporate | (74,011 | ) | (20,220 | ) | (18,572 | ) | (21,943 | ) | (27,882 | ) | (88,617 | ) | (31,386 | ) | |||||||||||||
Total | $ | 334,850 | $ | 35,502 | $ | 55,573 | $ | 59,912 | $ | 56,299 | $ | 207,286 | $ | (8,215 | ) | ||||||||||||
Reconciliation of net earnings (loss) attributable to IAC/InterActiveCorp equity in IAC Holdings, Inc. to operating income (loss) to Adjusted EBITDA:
2018 | 2019 | 2020 | |||||||||||||||||||||||||
FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||||||||
Net earnings (loss) attributable to IAC/InterActiveCorp equity in IAC Holdings, Inc. | $ | 246,772 | $ | (14,247 | ) | $ | 13,789 | $ | 16,466 | $ | 6,887 | $ | 22,895 | $ | (328,199 | ) | |||||||||||
Add back: | |||||||||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | 45,599 | 574 | 8,232 | 1,912 | (1,430 | ) | 9,288 | (2,372 | ) | ||||||||||||||||||
Income tax provision (benefit) | 13,200 | (29,194 | ) | (5,046 | ) | (19,079 | ) | (7,170 | ) | (60,489 | ) | (41,432 | ) | ||||||||||||||
Other (income) expense, net | (282,795 | ) | 5,417 | (33,982 | ) | 11,715 | (17,197 | ) | (34,047 | ) | 57,448 | ||||||||||||||||
Interest expense - third party | 13,059 | 3,267 | 3,237 | 2,898 | 2,502 | 11,904 | 2,217 | ||||||||||||||||||||
Operating income (loss) | 35,835 | (34,183 | ) | (13,770 | ) | 13,912 | (16,408 | ) | (50,449 | ) | (312,338 | ) | |||||||||||||||
Stock-based compensation expense | 148,405 | 34,675 | 35,607 | 24,585 | 39,471 | 134,338 | 37,181 | ||||||||||||||||||||
Depreciation | 42,393 | 11,140 | 12,893 | 15,009 | 16,907 | 55,949 | 15,492 | ||||||||||||||||||||
Amortization of intangibles | 107,081 | 22,341 | 19,226 | 22,545 | 19,756 | 83,868 | 45,759 | ||||||||||||||||||||
Acquisition-related contingent consideration fair value adjustments | 1,136 | 1,529 | 1,617 | (16,139 | ) | (6,745 | ) | (19,738 | ) | (6,282 | ) | ||||||||||||||||
Goodwill impairment | — | — | — | — | 3,318 | 3,318 | 211,973 | ||||||||||||||||||||
Adjusted EBITDA | $ | 334,850 | $ | 35,502 | $ | 55,573 | $ | 59,912 | $ | 56,299 | $ | 207,286 | $ | (8,215 | ) | ||||||||||||
The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses. The information presented above should be read in conjunction with the Company's historical combined financial statements and notes thereto found on the U.S. Securities and Exchange Commission's website at http://www.sec.gov.