IAC’s second quarter was met with a negative market reaction, as revenue came in below Wall Street’s consensus and fell year-on-year. Management attributed the shortfall primarily to ongoing declines in Google-driven web traffic and evolving search algorithms, which have forced the company to accelerate its push into diversified audience channels. CEO Neil Vogel acknowledged the persistent headwinds from changes in Google search and AI-powered competition, emphasizing that “we run this business as if Google from search is going to go to zero.” The company pointed to investments in new product lines and broader distribution channels as both a source of higher costs and a foundation for future resilience.

Is now the time to buy IAC? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From IAC’s Q2 Earnings Call

• John Blackledge (TD Cowen) asked about the trajectory of owned-and-operated sessions and off-platform views; CEO Neil Vogel responded that O&O sessions may be flat to slightly up, while off-platform growth will continue, though at a slower rate as the base expands.
• Eric Sheridan (Goldman Sachs) inquired about the rationale for rebranding as People Inc.; CEO Vogel explained that the new name better reflects the company’s ambition for platform-scale reach and premium brand positioning.
• Daniel Pfeiffer (JPMorgan) questioned the impact of Google AI Overviews on traffic; Vogel noted exposure is now over half of relevant searches, emphasizing IAC’s strategy to connect directly with audiences and advertisers to mitigate this effect.
• Stephen Ju (UBS) asked why Care.com isn’t growing faster given its small market share; CFO Halpin cited the need to improve product experience, adopt new pricing models, and expand into additional care verticals like senior and pet care.
• Jason Helfstein (Oppenheimer) queried about long-term digital revenue growth; Vogel confirmed a 10% long-term target, driven by ongoing monetization improvements and growth in off-platform and events businesses.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the ramp-up and monetization of D/Cipher+ and other proprietary ad platforms, (2) engagement trends and revenue contributions from new app launches like the People app and Care.com enhancements, and (3) progress on audience diversification away from Google Search. Capital allocation decisions, including M&A and potential divestitures, will also be key indicators of strategic execution.

IAC currently trades at $34.29, down from $39.51 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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