IAC Inc. (NASDAQ:IAC), a leader in media and internet, announced today that it has updated its financial reporting structure to reflect Care.com as an independent segment. This adjustment follows the company's decision during the earnings release for the quarter ending September 30, 2024, to present Care.com, previously grouped under Emerging & Other, as a distinct reportable segment starting from the quarter ended December 31, 2024.
The new financial information, which is now available on IAC's investor relations website, provides a clearer picture of Care.com's performance. This strategic move aims to offer investors and analysts more detailed insights into the operational results and financial health of the care service platform.
Care.com, an online marketplace for finding and managing family care, has shown significant growth and operational progress, prompting IAC to spotlight the platform's contribution to the company's overall performance. The segmentation highlights Care.com's increasing importance within IAC's portfolio. While IAC's stock has faced challenges with a -16.55% return over the past year, current market analysis suggests the stock may be undervalued.
IAC's decision to reclassify Care.com as a separate segment does not bring any other changes to the company's reportable segments. The supplemental financial data provided does not alter previously reported figures but offers a restructured view of the company's earnings, specifically isolating Care.com's financial outcomes.
The company has provided this supplemental information in accordance with Regulation FD, ensuring fair disclosure. It is important to note that the information contained in the current report, including the supplemental financial data, is not considered "filed" for SEC purposes and is not incorporated by reference into any other filings unless explicitly stated. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 10+ additional exclusive tips and detailed financial metrics in its Pro Research Report, available for IAC and 1,400+ other US stocks.
Simultaneously, Angi's shares surged following the spin-off announcement, with the separation expected to allow both IAC and Angi to focus on their growth opportunities. The completion of the spin-off is anticipated in the first half of 2025.
In other developments, Match Group (NASDAQ:MTCH), a subsidiary of IAC, has initiated a quarterly dividend program and a new $1.5 billion share buyback authorization. Piper Sandler has downgraded IAC's rating to neutral and reduced its price target to $54, while TD Cowen revised its price target for IAC to $77 from the previous $82, maintaining a Buy rating.
Lastly, IAC's subsidiary, Dotdash Meredith (NYSE:MDP) Inc., has successfully amended its credit agreement with JPMorgan Chase (NYSE:JPM) Bank, leading to a reduction in interest rates for its term loans.
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