IAC’s third-quarter earnings beat analyst expectations today with revenue of $838.6 million and earnings of $1.01. Analysts were expecting earnings of 78 cents per share on revenue of $806 million.
Shares of IAC rose as much as 3.6 percent in extended trading following the report. The company’s overall revenue was up 7 percent from $782.2 million in the third quarter last year.
This is an interesting report for IAC. Earlier this month, the company’s spin-off of its dating services, Match Group, filed to go public. That left IAC with a slew of other properties like CollegeHumor and Vimeo. This time around, the company is still reporting its dating segments — which were basically disclosed in the company’s S-1 filing — as part of IAC’s earnings.
This time around, it still reported results from its Match Group holdings. The company reported that Match Group had revenue of $274.2 million in the third quarter this year, while its search and applications group brought in $377.1 million in Q3.
As part of the earnings announcement, IAC also said it would extend its partnership with Google, which includes sponsored listings and other search-related services. Its operating income from Match Group was $71.9 million, and the company’s total operating income was $87.1 million.
The company’s legacy properties like Ask.com continue to decline, not surprisingly, while applications revenue increased slightly. IAC said its revenue from websites fell 10 percent, and its operating income from its Search & Applications group $65.4 million.
[findthebest id=”1xwKRNv12cJ” title=”Iac/Interactivecorp (IACI)” width=”700″ height=”530″ url=”https://w.graphiq.com/w/1xwKRNv12cJ” link=”http://listings.findthecompany.com/l/13345377/Iac-Interactivecorp-in-New-York-NY” link_text=”Iac/Interactivecorp (IACI) | FindTheCompany”]
But revenue from its media properties grew 15 percent compared to Q3 last year due to growth from Vimeo, the company said. IAC said it brought in $57.3 in revenue for its media group, which also includes CollegeHumor. The crux here, obviously, is that video is increasingly important on the web, making Vimeo a valuable property to IAC.
On the year, the company’s stock is up 11 percent. The stock had risen as much as 39 percent on the year after it said Match Group would acquire PlentyOfFish.