Documentos de Académico
Documentos de Profesional
Documentos de Cultura
RATING: Buy
Price Target: $98.00
Victor Anthony
Summary
va@topekacapitalmarkets.com
Tel: 212-709-5734
STOCK DATA
Price
$75.68
Price Target
$98.00
$6,304
52-Week Range
$42.50 - $80.64
Shares (mil)
83.3
ADTV (000)
823
$6,097
$331
$0.96
Yield
1.5%
Key Points
Attractive Industry Dynamics. The industry is characterized by predictable and recurring
subscription based fees, add-on advertising revenues, incremental transaction fees,
inherent operating leverage, low capital requirements, and high incremental cash flow
margins. Network effects are present and high re-subscription rates drive down customer
acquisition costs.
FINANCIAL DATA
LT EPS CAGR
11.1%
2013A
2014E
2015E
EV/Sales
2.0
1.9
1.7
P/E Ratio
18.4x
19.4x
16.1x
EV/EBITDA
10.2x
9.6x
8.2x
2013A
2014E
2015E
Q1
742.2
732.0E
797.6E
Q2
799.4
812.1E
885.9E
Q3
756.9
826.2E
903.3E
Q4
724.5
836.7E
914.3E
3,493.9E
3,023.0
3,207.1E
3,501.0E
REVENUE ($M)
FY December
Previous
FY
EPS
FY December
2013A
2014E
2015E
Q1
0.83
0.53E
0.73E
Q2
0.95
1.02E
1.26E
Q3
1.29
1.16E
1.34E
Q4
1.04
1.18E
1.37E
4.67E
4.11
3.90E
4.71E
Previous
FY
EPS: Adjusted EPS
Favorable Trends. A rising singles market, increasing favorable opinions of online dating,
and mobile adoption are driving growth trends. The result of the return to secular growth
should be more private companies accessing the equity capital markets, further industry
consolidation by the leaders, and increased funding by financial sponsors.
Match.com is Best Positioned. Match is the king of paid subscribers, with over two times
more paying subscribers than the next highest competitor, which is based in China. The
company has a collection of assets that cut across most online dating models and has
a commanding 20% share of global industry revenues (the next largest at a 5% share).
Match.com's high brand equity, its role as the industry consolidator, management's keen
focus on technology, and attractive assets such as Tinder and OkCupid, should allow the
company to grow its dominance over time.
A Margin Expansion Story. We see Match.com growing revenues and EBITDA at healthy
growth rates over the next five years, with revenue growing at a 9% CAGR and EBITDA
growing at an 11% CAGR. EBITDA margins expand by +300bps over the next five years
driven by operating leverage at standalone Match.com U.S., greater mix of high margin
OkCupid revenues, and increased profitability at Meetic and other developing sites.
Monetization of Tinder would lead to more margin upside. Our estimates are conservative,
in that they are below management's aspirational EBITDA goal of $500mm in 2016, and
the potential for subscriber growth to exceed 5 million over the next five years. A DCF of
Match.com points to an enterprise value of $4.7B, with additional future upside tied to
monetization of Tinder, and the value of Dailymotion and Tudor as part of Match Group.
Risks to our Match estimates include competition, inefficient marketing spend, and legal
matters.
Valuation
IACI trades at 9.6x 2014 EV/EBITDA. Our $98 price target is based on a SOTP valuation analysis
using what we believe are reasonable EBITDA-based and revenue-based multiples for the
segments.
IAC/InterActiveCorp
March 12, 2014
Executive Summary
In this report we present to investors a comprehensive investment overview of the online
dating/personals industry. The industry was once thought to be mature, but is now returning
to secular growth, driven by favorable demographic, social, and technological trends such as
mobile. The industry is characterized by predictable and recurring subscription based fees,
add-on advertising revenues, incremental transaction fees, inherent operating leverage, low
capital requirements, and high incremental cash flow margins. Network effects are present
and high re-subscription rates drive down customer acquisition costs leading to strong cash
flow growth. As the leader in the industry, Match.com is best positioned to capitalize on the
growth resurgence, in our view. Match is the king of paid subscribers, with two times more
paying subscribers than the next highest competitor, which is based in China. We have taken
up our 5-year Match.com revenue and EBITDA growth CAGRs to 9% and 11%, respectively,
from 7% and 8%, previously. Our IACI SOTP based price target increases to $98 from $78.
We recommend investors purchase shares of IACI in anticipation of a Match spin-off. A DCF
of Match.com points to an enterprise value of $4.7B, with additional future upside tied to
monetization of Tinder and value for DailyMotion and Tudor as part of Match Group.
We continue to believe that with the corporate re-organization announced on December 19,
2013, IAC has taken the first steps to spin-off Match.com. The reorganization would include
a newly created Match Group, consisting of IAC's Match businesses, Tutor.com, DailyBurn,
and IAC's investment in Skyllzone. Current IAC CEO Greg Blatt will become Chairman of
Match Group and Sam Yagan, the current CEO of Match, will become CEO of Match Group.
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IAC/InterActiveCorp
March 12, 2014
The Secular Growth Argument in One Chart The Singles Market is Growing. Most
measures estimate that there are over 90 million single adults in the U.S. To illustrate the
opportunity for the online personals industry, we analyzed the trend of the U.S. unmarried
population using data from the Census Bureau. Per the data, 47% of the U.S. was unmarried
in 2012 compared to 42% in 1994, illustrating an expanding market opportunity for the
online personals industry.
Exhibit 1. IAC: U.S. Unmarried Population
48%
47% 47%
47%
46%
46%
46%
45%
45%
2005
2006
45%
45%
46% 46%
44%
44%
44%
44%
44%
44%
44%
43%
43%
42%
42%
41%
40%
1994
1995
1996
1997
1998
1999
2000
2001
2004
2007
2008
2009
2010
2011
2012
Familiarity With Online Dating Has Increased. According to a Pew Research Center study,
the percentage of Americans who were familiar with online dating in 2013 jumped to 42%
from 31% in 2005. And as well, the percentage of adult Americans who know someone who
has been in a long-term relationship or has been married with someone they met through
online dating has increased to 29% in 2013 from 15% in 2005.
Exhibit 2. Familiarity with online dating through others, 2005-2013
80%
60%
+11pts
42%
40%
31%
29%
+14pts
20%
15%
0%
Know someone who has used online dating
2005
Source: Pew Research Center's Internet & American Life Project; Courtland Brooks; Topeka Capital Markets
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IAC/InterActiveCorp
March 12, 2014
Favorable Opinions Of Online Dating Have Also Increased. According to the same Pew
Research Center survey, the percentage of adult Americans who believe online dating is a
good way to meet people jumped 15 percentage points to 59% in 2013 from 44% in 2005,
and 53% believe that online dating will allow uses to find a better match versus 47% in 2005.
Conversely, the percentage of adult Americans who believe users of online dating are
desperate declined to 21% in 2013 from 29% in 2005.
Exhibit 3. Opinions of Online Dating, 2005-2013
80%
59%
60%
53%
47%
44%
40%
32%
29%
21%
20%
n/a
0%
Online dating is a good
way to meet people
2013
Source: Pew Research Center's Internet & American Life Project Spring Tacking Survey,
Under-penetrated Internet Category. Although the offline category has almost entirely
shifted to the Internet, relative to the overall Internet, online dating has a small share of
overall unique visitor traffic. In the U.S., online dating unique visitors average 17-18 million
and represent 8% of total Internet unique visitors. Globally, the penetration rate is similar.
This compares to online travel, which has a 39% share of unique visitors in the U.S. and
globally. This is a bullish scenario, in our view, implying that online dating remains underpenetrated within the Internet itself and there is more room to expand.
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IAC/InterActiveCorp
March 12, 2014
Exhibit 4. Online Dating vs. Online Travel Unique Visitors Penetration, Desktop Only
45.0%
39.6%
40.0%
38.7%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
8.4%
8.1%
5.0%
0.0%
U.S. Unique Visitor Penetration
Online Dating
Competition See Detailed Competition Grid At The End of This Report. The online
personals industry is highly competitive with thousands of competing websites across the
globe. There are websites such as Match.com, that cater to a broad demographic, to very
niche focused sites based on race, religion, ethnicity, and other demographic data. While
competition is rife, as with all things Internet, scale matters, as the large players benefit from
network effects.
eHarmony. eHarmony is the second largest online personals site in the U.S. in terms
of revenues and paid memberships and one of most visible from a brand equity
perspective. The company pioneered the long-form dating questionnaire and then
uses proprietary algorithms to find potential matches based on the user responses.
The site claims more marriages than any other online dating site. After a series of
management changes, the founder of the firm, Neil Clark Warren, who appears in
eHarmonys TV commercials, is now back as CEO of the company. The 175 person
company plans to leverage its expertise in matching online daters to finding
matches for jobs.
Sparks Networks (LOV-$5.09:NR). Sparks Networks is popular not for its name but
for the sites that it owns Jdate.com and Christian Mingles, both of which have
high brand equity. The near 300K paying sub base is spread across over 20 niche
dating sites. The company is currently the subject of a shareholder activist who is
seeking to replace the current board of directors.
Graph Search. We can see how Facebooks (FB-$70.10:Buy) Graph Search could
offer a compelling alternative to the online dating sites given the relatively simple
searches users can conduct, such as Single female friends of XX who live in San
Francisco. Contact can then be initiated by sending the Facebook user a message.
While the service is compelling and adds a layer of personalization, that is, you are
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IAC/InterActiveCorp
March 12, 2014
making contact with someone whom you may not know but is a friend of a friend, it
has not caught on with users. Most users we speak with are unaware that this type
of search can be conducted on Facebook. There is opportunity for Match and
others, as they can advertise their services against those searches.
Zoosk. According to Bloomberg, online dating site Zoosk, has picked bankers to
initiate an IPO. The dating company leverages Facebook to drive subscriber growth
and claims more than 40 million active members. Zoosk reported that 1Q13
revenues topped $40 million and 2011 revenues were $90 million. Users can initiate
contact for free but subsequent contacts require a premium service.
In the U.S. Match.com, inclusive of all their owned and operated sites, had 5.4 million unique
visitors, 68% higher than the next highest, Zoosk, which had 3.2 million unique visitors,
followed by POF at 2.8 million, and the Spark Network of sites at 2.8 million.
Exhibit 5. Top U.S. Dating Sites by Unique Visitors, November 2013
Unique Visitors, mn
5.4
5
4
3
3.2
2.8
2
1
1
0.8
0.78
0.57
0.5
0.17
0.125
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IAC/InterActiveCorp
March 12, 2014
35%
31%
30%
25%
18%
20%
16%
15%
10%
6%
5%
5%
4%
3%
3%
1%
1%
0%
Match.com The King of Paid Memberships. Based on available data, Match.com had the
highest number of paid members, with core Match (ex-Meetic), ending 2013 with 2.54
million paying members, 84% higher than the next largest site, Jiayuan.com (DATE$8.05:NR), which is based in China. The participant subscriber base below sums to 6.85
million.
Exhibit 7. Online Dating Sites Based on Paid Memberships, as of December 2013
4.00
3.50
Paying Subs, mn
3.00
3.36
2.54
2.50
2.00
1.38
1.50
1.00
1.00
0.82
0.29
0.50
0.00
Total
Match.com, Jiayuan.com
Match.com Ex-Meetic
eHarmony
Meetic
Spark
Networks
Match.com, ex-Meetic had the fastest paid subscriber growth in 2013, with growth of 24%
YoY, led by Matchs developing sites OkCupid, Speeddate, DateHookup, Twoo, and Match
International. In total, Matchs subscriber base grew 19% YoY in 2013. Spark Networks grew
13% YoY, Jiayuan.com grew 12% YoY, and Meetic grew 6% YoY.
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IAC/InterActiveCorp
March 12, 2014
25%
24%
19%
20%
15%
13%
12%
10%
6%
5%
0%
Match.com, ExMeetic
Total
Match.com
Spark Networks
Jiayuan.com
Meetic
Economics Of The Online Dating Industry. The underlying unit economics of the industry are
attractive with high-single to double digit annual sub growth, APRU in high teens to low
$20s, high churn but high repeat subscribers, and high cash flow margins for the leaders in
the space.
Churn. Unlike other subscriber based models like cable television, the online dating
sites are surprisingly hush-hush about their churn rates. However, we understand
that industry monthly churn rates average in the high-teens to 20%. While the
monthly churn can be high relative to other subscriber based models, resubscriptions can constitute a high percentage of the subscriber base at any point in
time, and is as high as 50% for Match.com U.S. standalone. The participants do not
provide gross subscribers, cancellations, and customer acquisitions costs in addition
to the churn, so it is difficult to calculate the life-time value of a subscriber.
However, we understand that a typical subscriber can last up to three years on the
premium sites with a payback on marketing in less than one year.
ARPU. Per monthly subscriber fees average $15 to $25 per month for most sites,
with the premium sites like Match.com averaging at the upper end of that range.
There appears to be an industry wide effort amongst the sites to push discounted
longer-duration subscription plans, which provides better revenue predictability
and increased cash collection from the subscriber overtime, but lower ARPU.
Match.com, specifically, engages in price optimization or dynamic pricing where
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IAC/InterActiveCorp
March 12, 2014
they price differently in different markets with different prices for certain packages.
Depending on adoption, ARPU could be positively or negatively impacted leading to
short-term variability in ARPU, but we suspect the basis for dynamic pricing is to
have ARPU trend up, while still capturing subs at the lower-end. Incremental add-on
services like pay to promote profiles employed by the sites could drive-up ARPU
trends.
Revenue. Revenue is derived from the monthly subscriber fees described above,
fees for add-on services, fees for offline events (aids retention, increases ARPU),
and advertising fees, which are mostly branded ads from what we can see. Most
free sites eventually push subscribers into premium pay packages for access to
greater services. Ashley Madison has a different model, whereby users pay an
upfront fee for credits which they then use for services like emailing members.
Marketing Margin Cash Flow Growth Trade-offs. Direct marketing is likely the
most important P&L item on the cost side as it is used to drive subscriber and
revenue growth in subsequent periods. The larger sites like Match.com and
eHarmony advertise heavily on television and almost all use online search to drive
traffic. Lately, we have noticed sites advertising aggressively on Facebook, namely
Zoosk. Partnerships and affiliate relationships to drive traffic are often considered
part of the marketing funnel for most sites. ROI is monitored heavily with most sites
pulling back spend when channels become inefficient. There is a trade-off quarterto-quarter with marketing spend and margins, with periods of increased marketing
denting margins and vice-versa. However, most sites are resolved to spending
heavily on efficient marketing channels in order to drive profit growth longer-term
and are willing to sacrifice margins quarter-to-quarter to achieve their goal.
Capital Expenditures. Capital expenditure requirements for online dating sites are
relatively low compared to other Internet based models, averaging about 3% of
sales.
Working Capital. Working capital is a source of cash for the established firms and
can vary between 3%-5% of sales. As the sites shift to longer-duration plans, the
working capital benefit should increase over-time.
Sizing The Market. The U.S. dating industry is estimated to be a $2 billion market in the U.S.,
according the IBISWorld report, and they expect the industry to add an additional $300
million in revenues annually, to reach to $2.3 billion in 2016, for a CAGR of 4%. Given the
rapid rise of mobile dating applications that could capitalize on advertising and quick up-sell
opportunities, we believe those numbers will prove conservative and we can likely see a
growth CAGR close to double digits over the same time frame.
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IAC/InterActiveCorp
March 12, 2014
$2.3B
$2,250
$2,200
$2,150
$2,100
$2,050
$2.025B
$2,000
$1,950
$1,900
$1.87B
$1,850
$1,800
$1,750
2011
2012
2013
2014
2015
2016
U.S. mobile dating revenues at $254 million in 2013, represented 13% of total U.S. dating
services revenues. Mobile revenues are projected to grow at a 14% CAGR to reach 16% of
total U.S. total revenues.
Exhibit 10. U.S. Mobile Dating Revenue
$ in Millions
$400
14% CAGR
$350
$373
$295
$254
$300
$213
$250
$165
$200
15%
14%
14%
12%
13%
10%
11%
9%
$150
8%
$109
6%
$100
$50
18%
16% 16%
$333
4%
$43
2%
$0
0%
2009
2010
2011
2012
2013
2014
2015
2016
Page 10
IAC/InterActiveCorp
March 12, 2014
International estimates are sketchy. Industry forecasters like Metaflake suggest that the
worldwide revenue market stands at $4 billion, including $318 million from China, $130
million from India, and 170 million in the U.K. For lack of other sources we will consider
that estimate for our market share estimates. Match.com and its sites come in a
commanding first with 20% share of the global markets revenues, followed by eHarmony at
a 5% share, and Zoosk, which has reportedly filed IPO documents, coming in third at 4%
global revenue market share.
Exhibit 11. Online Dating Global Revenue Market Share
Match.com ,
20%
eHarmony, 5%
Zoosk, 4%
Sparks
Networks, 2%
Ashleymadison,
3%
Jiayuan, 2%
Other, 65%
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IAC/InterActiveCorp
March 12, 2014
Classification
Core
Core
Core
Developing
Developing
NM
Developing
Developing
Developing
Revenue Model
Primarily Paid subscriptions; online advertising
Primarily Paid subscriptions; online advertising
Primarily Paid subscriptions; online advertising
Online advertising, paid subscritptions
Online advertising, paid subscritptions
Paid subscriptions
None today, but likely through online advertising
Primarily Paid subscriptions; online advertising
Primarily Paid subscriptions; online advertising
Page 12
IAC/InterActiveCorp
March 12, 2014
Match.com ended 2013 with 3.357 million paid subscribers, +19.4% YoY, including 1.964
from Core Match, +8.9% YoY, 578 million from developing sites, +140.8% YoY, and 815
million from Meetic, +6% YoY. The Core Match consists of Match.com in the United States,
Chemistry.com and People Media. Match Developing consists of OkCupid, Singlesnet
(Kiss.com), SpeedDate, DateHookup, Twoo, Tinder, and Match International Ex-Meetic.
Exhibit 13. Match.com Paid Subscribers by Type
4,000
3,357
3,500
2,812
Subscribers (mn)
3,000
2,696
815
2,500
769
762
1,818
578
2,000
270
318
1,500
240
1,000
1,470
1,664
1,803
1,964
2011
2012
2013
500
2010
Core Paid Subscribers
Meetic
Core average revenue per subscriber has oscillated between the high teens to the low
twenty dollar range over the past few years. The all-in blended ARPU, which includes core,
developing, and Meetic subs and revenue, averages in the low $20 range.
Exhibit 14. Match.com Core, Meetic, and Blended ARPU
$28.00
$26.00
$25.95
$23.71
$24.00
$22.00
$20.92
$23.25
$20.00
$18.00
$17.95
$16.00
$14.00
$12.00
$11.97
$10.00
2Q13
3Q12
4Q11
1Q11
2Q10
3Q09
Core ARPU
Blended ARPU
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IAC/InterActiveCorp
March 12, 2014
Matchs core subscriber growth trumped core revenue growth in the past five quarters.
Exhibit 15. Match.com Core Quarterly Sub and Revenue Growth
25%
21.7% 22.0%
20%
15.0%
15%
18.0%
16.7%
16.0%
16.4%
10.0%
13.2%
10%
9.5%
8.0%
12.3%
8.4%
9.0%
8.0%
8.9%
12.2%
11.9%
8.1%
5%
7.2%
5.2%
4.5%
6.0%
4.5%
0%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Core Subscriber Growth
IAC provides the change in absolute marketing spending for Match in the quarterly and
annual filings. Marketing spend declined in 2009 following the great recession. Spend
jumped significantly in 2012 due to increased marketing spending for Meetic. Despite the
dramatic ramp in spending in 2012, margins went up.
Exhibit 16. Match.com Change in Match.com Marketing Spend
$100.0
40.0%
$88.2
33.2%
$80.0
30.3%
32.2%
35.8%
35.0%
33.9%
30.0%
27.4%
$60.0
$49.6
25.0%
20.0%
$40.0
$20.0
$16.8
$15.1
$12.8
15.0%
10.0%
$0.0
2008
-$20.0
2009
-$10.2
2010
2011
2012
2013
5.0%
0.0%
EBITDA Margins
Page 14
IAC/InterActiveCorp
March 12, 2014
Why Investors Should Be Enthusiastic About Tinder. Online dating app Tinder has grown
rapidly, reaching 750 million swipes per day in February, up from 400 million in November
2013, with 10 million matches per day, according to the founders at the Upfront Summit in
late February 2014. An average user spends 60 minutes per day on the app and 57% of
active users use the app daily and an average of seven times a day, according to the
founders. Early in the apps start, 90% of the users were between the ages of 18-24, now
that number has been reduced to 51%, with 32% of the user base falling between the ages
of 25-34, and 7% between the ages of 13-17, the balance over the age of 35. The founders
have turned their focus to international with the U.K. and Brazil adding 1 million users in the
past two months. The site is not being monetized but we see Match layering ads onto the
site in between the swipes, both graphic as well as video, leading to an enormous revenue
opportunity for Match.com. In addition, the founders have implied that they could move the
model to other non-dating business services.
The numbers in the following exhibit appear outdated given the recent comments from the
founders on daily usage. However, it illustrates how rapidly the app has grown over the past
year.
Exhibit 17. Tinder Monthly Active Users
7.0
40%
6.0
43%
50%
40%
4.09
4.0
30%
2.94
25%
1.59
2.0
1.0
6.63
40%
5.0
3.0
44%
0.43
0.11
0.71
0.29
0.63
2013 Q1
2013 Q2
2013 Q3
20%
1.77
10%
0.0
0%
2013 Q4
2014 Q1
Source: appmtr
The following set of exhibits show Match.coms pricing schema, additional upsell services,
the added benefits to becoming a paid subscriber, and a list of current events. Pricing could
change dynamically depending on region, therefore the prices listed below, which are for
New York City in the first week of March 2014, could differ from other regions of the U.S.
Matchs other sites generally have lower pricing packages.
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IAC/InterActiveCorp
March 12, 2014
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March 12, 2014
$1,000
$788
$800
$200
$883
$714
$518
$600
$400
$1,151
$1,070
$366
$100
$401
$343
$133 $167
$104
$242
$282
$324
$366
$406
$443
$0
2008
2009
2010
2011
2012
Revenue, $mn
2013
2014E
2015E
2016E
2017E
EBITDA, $mn
4.4M Subs in 5yrs Versus 5-6M Aspirational Goal By Company. The growth will be driven at
the top from subscriber growth which we expect to grow at a 5.6% five year CAGR. IAC
ended 2013 with 3.357 million subscribers, up 19% over the prior year. See Exhibit 13 for
more detail. IACs management has stated publicly that they expect subscribers to reach 5
million or even 6 million over the next five years, hence our estimate of 4.417 million
subscribers at the end of 2018 could prove conservative.
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IAC/InterActiveCorp
March 12, 2014
4,000
3,357
3,500
3,000
2,696
2,812
2011
2012
4,109
4,280
4,417
2017E
2018E
3,608
2,500
1,789
2,000
1,500
1,347
1,377
2008
2009
1,000
500
2010
2013
2014E
2015E
2016E
Paid Subscribers, mn
We expect the blended company ARPU to grow at a measured 2% pace through to 2018, and
remain in the low $20 range. While we do see pricing as a longer-term lever, we do think
that the optimum price for online dating has been set in the market place and we are
unlikely to see a material step-up in pricing over the years. The move in the industry to
discounted longer-duration subscription plans is healthy for the business but pressures
ARPU. In addition, competition in the space is likely to keep pricing growth in check. Pricing
levers include events and pricing optimization or segmentation could potentially lead to
more affluent subscribers paying more for added services or for the base service.
Furthermore, add-on services, such as subscribers paying for premium placement of their
profiles should aid ARPU growth overtime.
Exhibit 23. Match.com ARPU Outlook
$24.00
$23.00
$22.00
$21.00
$20.00
$19.00
$18.00
2008
2009
2010
2011
2012
2013
Blended APRU
2014E
Core ARPU
+300 Basis Points of Margin Improvement Over The Next Five Years. Perhaps the best part
of the model is the expectation for meaningful EBITDA margin expansion over the next five
years driven by increasing margins at Meetic, other core sites, and developing sites.
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IAC/InterActiveCorp
March 12, 2014
Management has stated that it expects the developing sites to contribute as much profit as
Meetic in 2014. The standalone Match.com U.S. site itself has very high margins likely north
of 40% and OkCupid has even higher margins due to its advertising based model, added
transactions, which as a percentage of revenues now eclipse OkCupids advertising revenues.
Advertising costs at OkCupid are minimal compared to standalone Match. Standalone Match
has inherently high margins as incremental subscribers get spread against the fixed costs
base. As these two sites become a bigger part of the mix, overall margins come up. Meetic,
Chemistry.com, and People Media all have lower margins compared to core Match.com. Our
expectations are that margins will improve at these sites over the coming years but never
matching the core Match.com site. Further, Tinder is all cost at the moment, so when
monetization kicks in, it will be margin accretive to the group.
Margins levers include leverage on fixed costs, more efficient marketing, and subscriber
growth. Margins increased 840 basis points over the past five years. Moving forward, we
expect EBITDA margins to increase from 35.8% in 2013 to 38.9% in 2018, a 314 basis point
improvement. Incremental EBITDA margins in 2013 were a healthy 53.8% but we see mid40% incremental margins over the next few years.
Exhibit 24. Match.com EBITDA and OIBA Margin Forecast
55%
53.8%
50%
46.8%
44.6%
45%
40%
33.9%
35%
30%
35.8%
36.7%
44.0%
37.4%
30.3%
33.3%
30.5%
30.2%
31.6%
2010
2011
2012
37.9%
45.1%
38.4%
38.9%
36.9%
33.2% 32.2%
27.4%
43.3%
34.2%
35.2%
35.8%
36.4%
27.5%
25%
25.0%
20%
2008
2009
EBITDA Margins
OIBA Margins
Page 20
IAC/InterActiveCorp
March 12, 2014
And again in 2Q13, CEO Greg Blatt said: I think in the U.S., there is nothing that we need
that we dont have. That doesnt mean there arent things we would buy under the right
circumstances because we do think that, in general, we are good at operating these
businesses and there are real efficiencies to owning multiple business. They have tended not
to be so much on the cost side, more on the competency side. But we know there is cost to be
gotten to. So I think over time, in the U.S., you can see more consolidation. But it will be
100% opportunistic. In terms of Europe, as weve said, we are looking to add new brands
and new things. So I think you could see a little more there. And globally, each market is its
own thing and I think there is lots of opportunity for M&A internationally and were very
much looking at all that stuff.
2007
1,287
0.8%
2008
1,347
4.7%
2009
1,377
2.2%
2010
1,789
29.9%
2011
2,696
50.7%
2012
2,812
4.3%
2013
3,357
19.4%
2014E
3,608
7.5%
2015E
3,895
8.0%
2016E
4,109
5.5%
2017E
4,280
4.2%
2018E
4,417
3.2%
APRU
y/y Growth %
$22.68
7.8%
$23.13
2.0%
$20.96
-9.4%
$21.10
0.6%
$19.25
-8.7%
$21.59
12.2%
$21.29
-1.4%
$21.12
-0.8%
$21.74
2.9%
$22.29
2.5%
$22.87
2.6%
$23.47
2.7%
2.0%
Revenues
y/y Growth %
$349
12.1%
$366
4.8%
$343
-6.3%
$401
17.0%
$518
29.3%
$714
37.7%
$788
10.5%
$883
12.0%
$979
10.9%
$1,070
9.4%
$1,151
7.5%
$1,225
6.4%
9.2%
EBITDA
y/y Growth %
OIBA Margin
Incremental EBITDA Margins
$86
21.4%
24.7%
40.5%
$100
16.4%
27.4%
83.9%
$104
3.5%
30.3%
-15.3%
$133
28.4%
33.2%
50.6%
$167
25.5%
32.2%
28.9%
$242
44.9%
33.9%
38.3%
$282
16.6%
35.8%
53.8%
$324
14.9%
36.7%
44.6%
$366
13.0%
37.4%
44.0%
$406
10.9%
37.9%
43.3%
$443
8.9%
38.4%
45.1%
$477
7.8%
38.9%
46.8%
11.1%
OIBA
$78
$91
y/y Growth %
23.7%
16.5%
OIBA Margin
22.5%
25.0%
Incremental OIBA Margin
40.0%
76.8%
Source: Company Reports; Topeka Capital Markets
$94
3.1%
27.5%
-12.3%
$122
29.7%
30.5%
48.1%
$156
28.0%
30.2%
29.2%
$226
44.4%
31.6%
35.5%
$262
16.1%
33.3%
48.7%
$302
15.2%
34.2%
42.1%
$344
14.0%
35.2%
44.0%
$383
11.4%
35.8%
42.5%
$419
9.3%
36.4%
44.2%
$453
8.1%
36.9%
45.8%
11.5%
Paid Subscribers
y/y Growth %
Discounted Cash Flow Analysis Yields $4.9B Enterprise Value For Match.com. A DCF with a
WACC of 9%, a terminal growth rate of 3%, and a 10x implied terminal year multiple on
EBITDA, yields an Enterprise Value of $4.7 billion for Match. Our WACC estimate is based on
the average Beta for several media and Internet subscriber based. Capital expenditures
averaged 3% for Match in the years that IAC reported it (2006-2008). We assume the same
today. We also assume working capital of 3% of sales, which is consistent in other sub based
models on the Internet.
We also provide a matrix that shows the sensitivity of Matchs DCF valuation to various
assumptions, i.e., the range of fair values based on WACCs of 7.0%-11% and terminal growth
rates of 2.25%-3.75%. The extremely bullish scenario implies a value of $8.5 billion, and the
bearish scenario implies a value of $3.3 billion for fiscal year-end 2014.
Page 21
IAC/InterActiveCorp
March 12, 2014
2014
3,608
$883
$324
($130)
$15
($26)
$26
$210
2015
3,895
$979
$366
($147)
$15
($29)
$29
$235
2016
4,109
$1,070
$406
($162)
$15
($32)
$32
$259
2017
4,280
$1,151
$443
($177)
$16
($35)
$35
$281
2018
4,417
$1,225
$477
($191)
$16
($37)
$37
$303
2019
4,539
$1,295
$511
($204)
$17
($39)
$39
$324
$210
$3,610
$216
$3,934
$218
$4,289
$217
$4,675
$214
$5,095
$210
$5,554
$1,076
$3,610
$4,685
$1,299
Match WACC
Perpetual Growth Rate
Terminal Multiple =(1+G)/(WACC-G)
Implied Terminal Year Multiple on EBITDA
9.0%
3.0%
17x
11x
TV
$511
($204)
$17
($39)
$39
$324
$4,685
7.0%
8.0%
9.0%
10.0%
11.0%
$3,697.15 $3,262.74
$3,792.19 $3,334.37
$3,893.79 $3,410.35
$4,002.64 $3,491.08
$4,119.56 $3,577.01
$4,245.47 $3,668.67
$4,381.45 $3,766.65
Risks To Our Match.com Estimates. (1) Competition. Competition is by far the biggest risk
faced by Match.com. There are thousands of websites, both paid and free, that are vying for
users. A few competitors are looking to access the capital markets for funding that could
make them more competitive. In addition, given the growth resurgence, financial sponsors
are more willing to back start-ups in the space that could compete with Match.com. Rising
competition could force management to significantly increase marketing spending, which, in
turn, would put pressure on our margin assumptions. Of late, investors have been concerned
that the rise of Tinder could stunt the growth rate of the paid subscriber business. We note
that Match.com has faced similar concerns from the rise of free sites in the past and it has
weathered that concern. We think the same for the rise of app focused sites like Tinder. The
value proposition that the paid sites offer such as the ability to dive into profiles, send
personal emails, see higher quality profiles from users who have a higher level of
commitment to online dating, and fraud review, remain attractive to subscribers and we do
not see that changing. Moreover, the paid sites subscriber growth remained strong along
with the rapid rise of Tinder and other similar apps. While we can never say that Tinder will
not cannibalize Match we do see a different use case for both, with Match used by those
seeking longer-term relationships rather than hookups, and in many cases the two could be
Page 22
IAC/InterActiveCorp
March 12, 2014
complementary products. We heard similar concerns with OkCupid, but OkCupid has been
complimentary to standalone Match, serving as a source of customer acquisition for
standalone Match. Bottom line is that historically younger users will trend towards the free
sites and move up the funnel to paid sites as the age or as their experience demands greater
ways to interact with users. Match has said that almost 50% of its subscribers have used
another service for meeting someone online. (2) Inefficient marketing spending. There is a
strong correlation between subscriber growth and marketing spend. If marketing spending
and channels prove inefficient, subscriber growth, revenue growth, and EBITDA growth
would suffer. (3) Negative Headlines Related to Bad/Criminal Dating Experiences.
Match.com is frequently on the receiving end of lawsuits tied to matches and then dates
that result in criminal activity. These suits damage the brand and have the potential to sway
positive public opinion of online dating.
IACI Valuation
We have updated our sum-of-the-parts analysis to reflect our new estimates for Match.com,
and an increase in our target multiple ranges for Match to 12x-13x from 10x-11x, previously.
In addition, we have switched our valuation on Local to a revenue based multiple from an
EBITDA based multiple previously and increased our Media and Other target revenue
multiple to 2x from 1x previously. The change increases our price target on IACI from $78 to
$98. We believe a sum-of-the-parts valuation analysis is the best way to underscore the true
value of IACs shares, given the different risk and cash flow profiles of the various business
segments within the portfolio.
Exhibit 27. IAC: Sum-of-the-parts Valuation
2015
3 yr EBITDA Low High
Low
EBITDA/(Rev for Local, M&O) CAGR '13-'16 Multiple Multiple Enterprise Value
IAC
Search
Match
Local (Revenues) /1
Media and Other (Revenue)
Total IAC
Corporate
Total IAC Enterprise Value
Add: Cash & Equivalents, &Investments, Other
Less: Debt
Equity Value
Diluted Shares
Fair Value per Share
Current Share price
Upside/(Downside)
$430
$366
$326
$378
$1,501
($60)
11%
13%
NA
NA
% of
Total EV
per Share
High
Enterprise Value
% of
Total EV per Share
5.0x
12.0x
1.5x
2.0x
5.5x
13.0x
2.0x
2.0x
$2,151
$4,397
$489
$756
$7,793
28.2%
57.8%
6.4%
9.9%
$25.82
$52.79
$5.87
$9.08
$93.56
$2,366
$4,764
$652
$756
$8,537
28.3%
57.0%
7.8%
9.0%
$28.40
$57.19
$7.83
$9.08
$102.50
3.0x
3.0x
($179)
$7,614
$1,286
($1,080)
$7,820
83.3
$94
$75.68
24%
(2.3)%
($2.15)
$91.41
$15.44
($12.97)
($179)
$8,359
$1,286
($1,080)
$8,565
83.3
$103
$75.68
36%
(2.1)%
($2.15)
$100.35
$15.44
($12.97)
$102.83
$98
$76
30%
Page 23
IAC/InterActiveCorp
March 12, 2014
Interestingly, we still believe that there will be upside to our price target when the Search
business gets revalued, and other assets such as Vimeo get to their true valuation. For
instance, Vimeo, has greater than 120 million unique visitors and 22 million registered
users. On the 3Q13 call, IAC stated that Vimeo crossed the 400K subscriber mark and TTM
revenues grew 65% to $37 million. A few simplified but credible assumptions on those
numbers (listed in the table below) show that Vimeo can grow revenues to greater than $67
million. Applying a reasonable 5x revenue multiple to those revenues get us to a $462
million valuation, which would be more than half the valuation of the Media & Other
segment we model in our sum-of-the-parts.
Exhibit 28. Vimeo Valuation
TTMRevenue, $mn
y/y
Subscribers
$37
65%
400,000
Assumptions:
Assume Subs Grew 65% YoYas Well
Then, Beginning Subs were 242K
Hence, Average Subs were 321K
Thus, APRU is $115
Beginning Subs
1 Yr Growth Rate
Ending Subs, 2014
ARPU, +3% YoY
Revenues, mn, 2014
400,000
40%
560,000
$121
$67.6
Beginning Subs
1 Yr Growth Rate
Ending Subs, 2015
ARPU, +3% YoY
Revenues, mn, 2015
560,000
30%
728,000
$127
$92.3
Revenue Multiple
Valuation, $mn
Source: Company Reports; Topeka Capital Markets
5.0x
$462
Page 24
IAC/InterActiveCorp
March 12, 2014
Match.com
Chemistry.com
People Media
OkCupid
Singlesnet
Meetic
Tinder
Twoo
Description
Sites Owned
Subscribers
1.964M at end of
The worlds largest online dating site. Launched in Match.com, Chemistry.com,
4Q13 but includes
1995; Services 24 countries and territories and
People Media, Meetic, Tinder, Chemistry.com and
host websites in 15 different countries.
SinglesNet, OkCupid
People Media
A premium service offering Launched in 2006.
Matches members using an algorithim based on
chemistry and compatibility methods. Designed by
Dr. Helen Fisher, a professor of Anthropology.
Part fo Match.com's Core websites
Chemistry.com
24 Sites in Total. OurTime,
Operator of several demographic targeted datings BlackPeopleMeet.com, &
websites. Acquired by IAC from American Capital SingleParentMeet.com are the
in July 2009 for $80M. Site reportedly recorded marquee sites. Others include:
BBPeopleMeet.com,
$11.6M in EBITDA in 2008 off 255K paying
CatholicPeopleMeet.com,
members. Powers AOL Personals. Part of
Match.com's Core Websites. People Media claims JPeopleMeet.com,
20K members join each week.
LoveAndSeek.com.
An ad-supported online personals service. Also
subscriptions for premium svcs. Features membercreated quizzes and mutliple choice questions.
Part of Match.com's Developing sights. Acuqired
by IAC in February 2011 for $50M.
Acquired by Match in February, 2010 by IAC
"more as a value acquisition than a strategic one".
Had 3M UVs at time of acquisition according to
TechCrunch
A European online dating company based in
France amd established in 16 European
Countries. Meetic was founded in 2001. In June
2009, Match contributed the European operations
of Match.com to Meetic in exchange for a 27%
interest in Meetic and a 5M Euro note. In early
2014, IAC acquired the remaining publicly traded
shares of Meetic for $72mm.
A widely popular mobile app that uses a user's
Facebook profile to show potential matches. Users
swipe right if they like a picture of someone and
swipe left if they do not. If both parties like each
other a private chat box appears when they can
have a conversation.
A social discovery website that allows users to
meet new people. Launched in March 2011 and
available in 200 countries. Acquired by Match in
January 4, 2013 for $25M in cash plus potential
additional consideration of up to $113.8m (using
12/31/2013 FX rate) that is contingent upon a
combination of earnings performance and user
growth thru 12/31/2015.
As of December
2013, 13M people
had taken the
Chemistry.com
personality test.
VC Backers
Revenue Model
Subcription Plan
Full Price one month Minimum $42.99/month; Basic Plan-12mth for
$19.99/mth; 6mth for $20.99/mth; 3mth for
$23.99/mth; Bundle Plans -12mth for
$20.99/mth; 6mth for $23.99/mth; 3mth for
$26.99/mth. Bundle Plan includes email
Paid subscriptions; read notification, First Impressions,
branded ads as well Highlighted Profile.
Paid subscriptions
Varies by site
Meetic, MeeticAffinity,
MatchAffinity, lexamore.nl,
lexa.nl, neu.de, Partner.de,
neu.at, DatingDirect.com,
DatingDirectAffinity, meeticgay,
cleargay.
815K subs
Paid subscriptions
None as of date of
this report
NA
NA
twoo.com
Paid Subscriptions
NA
Claiming 13M
registered members
Paid Subscriptions
Paid subscriptions
2013 Revenues
7.1M
$225M in 2013
17.8M
780K
1M
Page 25
IAC/InterActiveCorp
March 12, 2014
Description
Sites Owned
Meetme (MEET)
eHarmony
Zoosk
Ashleymadison
POF
Subscribers
N/A
VC Backers
Revenue Model
ATA Ventures, Amidzad
Partners, Canaan
Partners, Bessemer
Venture Partners,
Crosslink Capital,
Keating Capital,
Subscription Fee
Average Paying
Subscriber
292.7K in 2013;
259.2K (2012);
196.3K (2011);
161.6K in 2010
US Venture Partners,
First Round Capital,
Norwest Venture
Partners
Online advertising;
subscriptions
LikeIt.com
Qiming Venture
Partners. By Christina
Chao , PEdaily.cn.
Avalanche, LLC
2013 Revenues
25.9m registered
member;
approximately 1M
paying subs
40m registered
members
Average monthly
active accounts in
4Q13 was 4.92M;
Average monthly
paying accounts in
4Q13 was 1.382M;
has over 100M
registered accounts
Subcription Plan
3.2M
6.5M
$69.4M in revenues in
2013; $61.7m (2012);
$48.5m (2011); $40.9m
(2010)
1M
1.25M
$46.7m (2012)
$10.7m (2011)
$6.1m (2010)
NA
NA
Approximately $200mm
800K
1.2M
1.5M
2.8M
6.1M
18.4M
500K
Page 26
IAC/InterActiveCorp
March 12, 2014
Page 27
IAC/InterActiveCorp
March 12, 2014
2009
$1,364.324
-5.6%
2010
$1,636.815
20.0%
2011
$2,059.444
25.8%
2012
$2,800.933
36.0%
1Q13
$742.249
15.9%
2Q13
$799.411
17.5%
3Q13
$756.872
5.9%
4Q13
$724.455
-5.3%
2013
$3,022.987
7.9%
1Q14E
$732.037
-1.4%
2Q14E
$812.093
1.6%
3Q14E
$826.220
9.2%
4Q14E
$836.701
15.5%
2014E
$3,207.051
6.1%
2015E
$3,501.029
9.2%
2016E
$3,984.892
13.8%
Cost of Revenue
Gross Profit
y/y growth %
Gross Profit Margin
$455.297
$909.027
-5.3%
66.6%
$593.816
$1,042.999
14.7%
63.7%
$761.244
$1,298.200
24.5%
63.0%
$992.470
$1,808.463
39.3%
64.6%
$255.082
$487.167
16.8%
65.6%
$272.822
$526.589
18.6%
65.9%
$248.856
$508.016
12.3%
67.1%
$222.574
$501.881
1.4%
69.3%
$999.334
$2,023.653
11.9%
66.9%
$251.728
$480.309
-1.4%
65.6%
$277.225
$534.868
1.6%
65.9%
$271.660
$554.560
9.2%
67.1%
$256.831
$579.871
15.5%
69.3%
$1,057.444
$2,149.607
6.2%
67.0%
$1,154.044
$2,346.985
9.2%
67.0%
$1,313.208
$2,671.684
13.8%
67.0%
Operating Expenses
Selling and marketing expense
y/y growth %
% of revenues
General and administrative expense
y/y growth %
% of revenues
Product development expense
y/y growth %
% of revenues
$459.945
1.9%
33.7%
$289.620
-17.8%
21.2%
$62.147
-13.1%
4.6%
$492.206
7.0%
30.1%
$316.500
9.3%
19.3%
$65.097
4.7%
4.0%
$614.174
24.8%
29.8%
$328.728
3.9%
16.0%
$78.760
21.0%
3.8%
$898.761
46.3%
32.1%
$396.013
20.5%
14.1%
$101.869
29.3%
3.6%
$242.914
10.5%
32.7%
$98.026
6.8%
13.2%
$33.582
43.0%
4.5%
$247.153
16.0%
30.9%
$103.515
12.2%
12.9%
$34.052
47.3%
4.3%
$248.282
4.9%
32.8%
$75.977
-19.9%
10.0%
$35.232
43.8%
4.7%
$225.782
-1.4%
31.2%
$97.254
-17.0%
13.4%
$36.929
20.0%
5.1%
$964.131
7.3%
31.9%
$374.772
-5.4%
12.4%
$139.795
37.2%
4.6%
$239.945
-1.2%
32.8%
$84.586
-13.7%
11.6%
$70.864
111.0%
9.7%
$251.021
1.6%
30.9%
$92.592
-10.6%
11.4%
$40.840
19.9%
5.0%
$270.889
9.1%
32.8%
$94.004
23.7%
11.4%
$19.949
-43.4%
2.4%
$260.579
15.4%
31.1%
$95.052
-2.3%
11.4%
$51.710
40.0%
6.2%
$1,022.434
6.0%
31.9%
$366.234
-2.3%
11.4%
$183.363
31.2%
5.7%
$1,115.879
9.1%
31.9%
$395.632
8.0%
11.3%
$148.896
-18.8%
4.3%
$1,241.880
11.3%
31.2%
$425.460
7.5%
10.7%
$182.623
22.7%
4.6%
Depreciation expense
Amortization of intangibles/non-cash marketing
Goodwill impairment
Total Operating Expenses
y/y growth %
% of revenues
$63.690
$173.379
$917.924
$1,966.705
92.4%
144.2%
$63.897
$27.472
$28.032
$993.204
-49.5%
60.7%
$56.719
$22.057
$0.000
$1,100.438
10.8%
53.4%
$52.481
$35.771
$0.000
$1,484.895
34.9%
53.0%
$14.016
$14.078
$0.000
$402.616
13.6%
54.2%
$17.036
$18.137
$0.000
$419.893
21.2%
52.5%
$13.489
$13.032
$0.000
$386.012
3.1%
51.0%
$14.368
$14.596
$0.000
$388.929
-5.1%
53.7%
$58.909
$59.843
$0.000
$1,597.450
7.6%
52.8%
$14.400
$14.500
$0.000
$424.295
5.4%
58.0%
$14.400
$14.500
$0.000
$413.352
-1.6%
50.9%
$14.400
$14.500
$0.000
$413.743
7.2%
50.1%
$14.400
$14.500
$0.000
$436.242
12.2%
52.1%
$57.600
$58.000
$0.000
$1,687.631
5.6%
52.6%
$57.600
$58.000
$0.000
$1,776.007
5.2%
50.7%
$59.328
$59.740
$0.000
$1,969.031
10.9%
49.4%
Operating Income
y/y growth %
Margin
($1,057.678)
1607.0%
-77.5%
$49.795
-104.7%
3.0%
$197.762
297.2%
9.6%
$323.568
63.6%
11.6%
$84.551
34.7%
11.4%
$106.696
9.5%
13.3%
$122.004
56.3%
16.1%
$112.952
32.4%
15.6%
$426.203
31.7%
14.1%
$56.014
-33.8%
7.7%
$121.515
13.9%
15.0%
$140.817
15.4%
17.0%
$143.629
27.2%
17.2%
$461.976
8.4%
14.4%
$570.978
23.6%
16.3%
$702.653
23.1%
17.6%
Interest income
$10.218
Interest expense
($5.823)
Equity in losses of unconsolidated affiliates
($14.014)
Other income, net
$100.607
Earnings (loss) from continuing operations before income taxes($966.690)
$1.666
($1.437)
($25.676)
($1.662)
$22.686
$0.000
$0.000
($36.300)
$10.060
$171.522
$0.000
$0.000
($25.345)
($9.161)
$289.062
$0.000
($7.663)
($0.091)
$1.658
$78.455
$0.000
($7.658)
($1.078)
($0.004)
$97.956
$0.000
($7.623)
($3.253)
$16.719
$127.847
$0.000
($10.652)
($2.193)
$11.936
$112.043
$0.000
($33.596)
($6.615)
$30.309
$416.301
$0.856
($10.652)
($2.193)
$0.000
$44.025
$0.824
($10.652)
($2.193)
$0.000
$109.494
$0.849
($10.652)
($2.193)
$0.000
$128.821
$0.885
($10.652)
($2.193)
$0.000
$131.669
$3.414
($42.608)
($8.772)
$0.000
$414.009
$3.534
($42.608)
($8.772)
$0.000
$523.131
$3.863
($54.001)
($8.772)
$0.000
$643.743
($1.866)
0.2%
0
($968.556)
($32.079)
-141.4%
0
($9.393)
$4.047
2.4%
0
$175.569
($119.215)
-41.2%
0
$169.847
($25.746)
-32.8%
0
$52.709
($39.416)
-40.2%
0
$58.540
($36.126)
-28.3%
0
$91.721
($33.214)
-29.6%
0
$78.829
($134.502)
-32.3%
0
$281.799
($15.409)
-35.0%
0
$28.616
($38.323)
-35.0%
0
$71.171
($45.087)
-35.0%
0
$83.734
($46.084)
-35.0%
0
$85.585
($144.903)
-35.0%
0
$269.106
($183.096)
-35.0%
0
$340.035
($225.310)
-35.0%
0
$418.433
$0.000
($11.356)
$140.768
($37.023)
$0.000
($3.992)
$0.000
($9.051)
$0.000
($0.944)
$0.000
($1.068)
$0.000
$3.914
$0.000
$0.024
$0.000
$1.926
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($979.912)
504.7%
-71.8%
$94.352
-109.6%
5.8%
$171.577
81.8%
8.3%
$160.796
-6.3%
5.7%
$51.765
48.6%
7.0%
$57.472
32.2%
7.2%
$95.635
135.8%
12.6%
$78.853
88.0%
10.9%
$283.725
76.5%
9.4%
$28.616
-44.7%
3.9%
$71.171
23.8%
8.8%
$83.734
-12.4%
10.1%
$85.585
8.5%
10.2%
$269.106
-5.2%
8.4%
$340.035
26.4%
9.7%
$418.433
23.1%
10.5%
$1.090
($978.822)
526.6%
-71.7%
$5.007
$99.359
-110.2%
6.1%
$2.656
$174.233
75.4%
8.5%
($1.530)
$159.266
-8.6%
5.7%
$1.872
$53.637
55.6%
7.2%
$0.818
$58.290
34.5%
7.3%
$1.305
$96.940
138.1%
12.8%
($1.936)
$76.917
88.8%
10.6%
$2.059
$285.784
79.4%
9.5%
$0.000
$28.616
-46.6%
3.9%
$0.000
$71.171
22.1%
8.8%
$0.000
$83.734
-13.6%
10.1%
$0.000
$85.585
11.3%
10.2%
$0.000
$269.106
-5.8%
8.4%
$0.000
$340.035
26.4%
9.7%
$0.000
$418.433
23.1%
10.5%
($6.99)
($6.99)
($0.09)
($0.09)
$2.02
$1.86
$1.97
$1.82
$0.63
$0.60
$0.70
$0.68
$1.10
$1.07
$0.95
$0.91
$3.38
$3.25
$0.34
$0.33
$0.86
$0.82
$1.01
$0.96
$1.03
$0.98
$3.24
$3.09
$4.10
$3.91
$5.04
$4.81
($7.06)
($7.06)
551.0%
$0.93
$0.93
-113.2%
$2.01
$1.85
97.5%
$1.85
$1.71
-7.3%
$0.64
$0.61
63.3%
$0.70
$0.67
42.9%
$1.17
$1.13
161.9%
$0.93
$0.88
104.0%
$3.42
$3.29
92.5%
$0.34
$0.33
-46.4%
$0.86
$0.82
21.5%
$1.01
$0.96
-14.5%
$1.03
$0.98
11.3%
$3.24
$3.09
-6.1%
$4.10
$3.91
26.4%
$5.04
$4.81
23.1%
$73.454
-72.3%
5.4%
$92.966
26.6%
5.7%
$208.784
124.6%
10.1%
$244.465
17.1%
8.7%
$72.738
51.2%
9.8%
$82.875
1.9%
10.4%
$111.441
65.2%
14.7%
$91.072
37.5%
12.6%
$358.126
46.5%
11.8%
$46.438
-36.2%
6.3%
$88.992
7.4%
11.0%
$101.555
-8.9%
12.3%
$103.406
13.5%
12.4%
$340.391
-5.0%
10.6%
$411.320
20.8%
11.7%
$491.784
19.6%
12.3%
Adjusted EPS
y/y growth %
$0.51
-71.5%
$0.83
61.0%
$2.14
158.1%
$2.57
20.5%
$0.83
63.9%
$0.95
11.3%
$1.29
82.3%
$1.04
48.4%
$4.11
59.6%
$0.53
-36.0%
$1.02
7.0%
$1.16
-9.7%
$1.18
13.5%
$3.90
-5.2%
$4.71
20.8%
$5.63
19.6%
138.599
138.599
106.274
106.274
86.777
94.343
86.23725
93.07975
84.218
87.38
83.609
86.563
83.094
86.072
83.016
86.971
83.48425
86.7465
83.016
86.971
83.016
86.971
83.016
86.971
83.016
86.971
83.016
86.971
83.016
86.971
83.016
86.971
142.958
112.381
97.775
94.97575
87.667
87.073
86.602
87.325
87.16675
87.39125
87.39125
87.39125
87.39125
87.39125
87.39125
87.39125
Page 28
IAC/InterActiveCorp
March 12, 2014
2009
$167.182
-2.3%
12.3%
2010
$253.476
51.6%
15.5%
2011
$365.126
44.0%
17.7%
2012
$497.445
36.2%
17.8%
1Q13
$125.308
21.2%
16.9%
2Q13
$153.689
13.1%
19.2%
3Q13
$162.890
36.0%
21.5%
4Q13
$156.073
12.8%
21.5%
2013
$597.960
20.2%
19.8%
1Q13
$99.114
-20.9%
13.5%
2Q13
$164.615
7.1%
20.3%
3Q13
$183.917
12.9%
22.3%
4Q13
$186.729
19.6%
22.3%
2014E
$634.376
6.1%
19.8%
2015E
$743.378
17.2%
21.2%
2016E
$880.225
18.4%
22.1%
$103.492
3.4%
7.6%
$189.579
83.2%
11.6%
$308.407
62.7%
15.0%
$444.964
44.3%
15.9%
$111.292
21.9%
15.0%
$136.653
10.5%
17.1%
$149.401
40.2%
19.7%
$141.705
14.9%
19.6%
$539.051
21.1%
17.8%
$84.714
-23.9%
11.6%
$150.215
9.9%
18.5%
$169.517
13.5%
20.5%
$172.329
21.6%
20.6%
$576.776
7.0%
18.0%
$685.778
18.9%
19.6%
$820.897
19.7%
20.6%
$340.707
($39.829)
$3.500
($51.900)
$252.478
15.9%
99.6%
133.2%
15.4%
$372.386
($39.954)
$0.000
$0.000
$332.432
31.7%
91.0%
107.8%
16.1%
$354.527
($51.201)
$0.000
$0.000
$303.326
-8.8%
61.0%
68.2%
10.8%
$92.362
($33.638)
$0.000
$0.000
$58.724
18.8%
46.9%
52.8%
7.9%
$135.901
($14.181)
$0.000
$0.000
$121.720
-10.3%
79.2%
89.1%
15.2%
$96.067
($16.295)
$0.000
$0.000
$79.772
-23.4%
49.0%
53.4%
10.5%
$86.631
($16.197)
$0.000
$0.000
$70.434
483.0%
45.1%
49.7%
9.7%
$410.961
($80.311)
$0.000
$0.000
$330.650
9.0%
55.3%
61.3%
10.9%
($7.643)
($16.367)
$0.000
$0.000
($24.009)
-140.9%
-24.2%
-28.3%
-3.3%
$136.074
($18.156)
$0.000
$0.000
$117.918
-3.1%
71.6%
78.5%
14.5%
$170.873
($18.472)
$0.000
$0.000
$152.401
91.0%
82.9%
89.9%
18.4%
$137.209
($18.707)
$0.000
$0.000
$118.502
68.2%
63.5%
68.8%
14.2%
$436.513
($71.702)
$0.000
$0.000
$364.811
10.3%
57.5%
63.3%
11.4%
$479.069
($78.274)
$0.000
$0.000
$400.794
9.9%
53.9%
58.4%
11.4%
$636.804
($89.092)
$0.000
$0.000
$547.712
36.7%
62.2%
66.7%
13.7%
$1.57
-1618.1%
306.0%
$2.38
51.1%
287.2%
$3.52
48.3%
165.0%
$3.26
-7.5%
126.6%
$0.67
24.7%
81.0%
$1.41
-4.8%
147.7%
$0.93
-15.8%
72.0%
$0.81
529.9%
77.7%
$3.81
17.0%
92.8%
($0.28)
-141.1%
-52.0%
$1.36
-3.6%
133.1%
$1.75
89.1%
150.8%
$1.36
68.2%
115.2%
$4.19
10.0%
107.7%
$4.61
9.9%
97.9%
$6.30
36.7%
111.9%
$2.637
$220.546
-1232.5%
131.9%
$0.137
$252.615
14.5%
99.7%
$0.000
$332.432
31.6%
91.0%
$0.000
$303.326
-8.8%
61.0%
($4.598)
$54.126
9.5%
43.2%
($4.595)
$117.125
-13.7%
76.2%
($4.574)
$75.198
-27.8%
46.2%
($6.391)
$64.043
430.1%
41.0%
($20.158)
$310.492
2.4%
51.9%
($5.878)
($29.887)
-155.2%
-30.2%
($5.897)
$112.021
-4.4%
68.1%
($5.882)
$146.519
94.8%
79.7%
($5.860)
$112.642
75.9%
60.3%
($23.517)
$341.295
9.9%
53.8%
($23.445)
$377.350
10.6%
50.8%
($30.083)
$517.629
37.2%
58.8%
$1.59
-1276.5%
309.7%
$2.38
49.4%
287.3%
$3.52
48.2%
165.0%
$3.26
-7.5%
126.6%
$0.62
15.0%
74.7%
$1.35
-8.4%
142.2%
$0.87
-20.6%
67.9%
$0.74
472.7%
70.6%
$3.58
9.8%
87.1%
($0.34)
-155.5%
-64.7%
$1.29
-4.8%
126.5%
$1.68
92.8%
145.0%
$1.30
75.9%
109.5%
$3.92
9.6%
100.8%
$4.34
10.6%
92.2%
$5.95
37.2%
105.8%
Page 29
IAC/InterActiveCorp
March 12, 2014
IAC Search
Period
Revenues
y/y growth %
% of company Revenue
2009
$649.642
-15.1%
47.6%
2010
$805.284
24.0%
49.2%
2011
$1,040.507
29.2%
50.5%
2012
$1,465.800
40.9%
52.3%
1Q13
$397.200
15.7%
53.5%
2Q13
$427.400
22.5%
53.5%
3Q13
$407.300
10.0%
53.8%
4Q13
$373.000
-7.6%
51.5%
2013
$1,604.900
9.5%
53.1%
1Q13
$379.384
-4.5%
51.8%
2Q13
$409.012
-4.3%
50.4%
3Q13
$435.106
6.8%
52.7%
4Q13
$447.783
20.0%
53.5%
2014E
$1,671.284
4.1%
52.1%
2015E
$1,819.447
8.9%
52.0%
2016E
$2,171.529
19.4%
54.5%
Operating Expenses
y/y growth %
% of Revenues
$557.100
-6.1%
85.8%
$628.738
12.9%
78.1%
$810.043
28.8%
77.9%
$1,137.600
40.4%
77.6%
$299.700
12.5%
75.5%
$325.000
19.8%
76.0%
$308.800
3.7%
75.8%
$285.600
-5.5%
76.6%
$1,219.100
7.2%
76.0%
$307.301
2.5%
81.0%
$308.972
-4.9%
75.5%
$327.706
6.1%
75.3%
$340.621
19.3%
76.1%
$1,284.600
5.4%
76.9%
$1,389.335
8.2%
76.4%
$1,647.328
18.6%
75.9%
OIBDA (EBITDA)
y/y growth %
Margin
% of company EBITDA
$135.251
-21.5%
20.8%
80.9%
$176.546
30.5%
21.9%
69.6%
$230.464
30.5%
22.1%
63.1%
$328.200
42.4%
22.4%
66.0%
$97.500
27.0%
24.5%
77.8%
$102.400
32.1%
24.0%
66.6%
$98.500
35.9%
24.2%
60.5%
$87.400
-13.8%
23.4%
56.0%
$385.800
17.6%
24.0%
64.5%
$72.083
-26.1%
19.0%
72.7%
$100.039
-2.3%
24.5%
60.8%
$107.400
9.0%
24.7%
58.4%
$107.162
22.6%
23.9%
57.4%
$386.684
0.2%
23.1%
61.0%
$430.113
11.2%
23.6%
57.9%
$524.202
21.9%
24.1%
59.6%
$31.395
4.8%
$35.754
4.4%
$25.484
2.4%
$15.000
1.0%
$3.900
1.0%
$6.400
1.5%
$3.900
1.0%
$4.000
1.1%
$18.200
1.1%
$4.000
1.1%
$4.000
1.0%
$4.000
0.9%
$4.000
0.9%
$16.000
1.0%
$16.000
0.9%
$16.480
0.8%
$103.856
-23.8%
16.0%
100.4%
$140.792
35.6%
17.5%
74.3%
$204.980
45.6%
19.7%
66.5%
$313.200
52.8%
21.4%
70.4%
$93.600
27.3%
23.6%
84.1%
$96.000
29.6%
22.5%
70.3%
$94.600
36.7%
23.2%
63.3%
$83.400
-13.5%
22.4%
58.9%
$367.600
17.4%
22.9%
68.2%
$68.083
-27.3%
17.9%
80.4%
$96.039
0.0%
23.5%
63.9%
$103.400
9.3%
23.8%
61.0%
$103.162
23.7%
23.0%
59.9%
$370.684
0.8%
22.2%
64.3%
$414.113
11.7%
22.8%
60.4%
$507.722
22.6%
23.4%
61.8%
($0.663)
($0.630)
$0.202
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($6.494)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
Depreciation
% of revenues
OIBA (EBITA)
y/y growth %
Margin
% of company OIBA
($1,064.356)
($11.806)
($1.176)
($7.400)
($6.700)
($6.700)
($6.900)
($7.300)
($27.600)
($7.300)
($7.300)
($7.300)
($7.300)
($29.200)
($29.200)
($30.076)
($967.657)
-1092.5%
-149.0%
91.5%
$128.356
-113.3%
15.9%
257.8%
$204.006
58.9%
19.6%
103.2%
$305.700
49.8%
20.9%
94.5%
$87.000
18.4%
21.9%
102.9%
$89.300
20.5%
20.9%
83.7%
$87.800
27.2%
21.6%
72.0%
$76.000
-14.7%
20.4%
67.3%
$340.000
11.2%
21.2%
79.8%
$60.783
-30.1%
16.0%
108.5%
$88.739
-0.6%
21.7%
73.0%
$96.100
9.5%
22.1%
68.2%
$95.862
26.1%
21.4%
66.7%
$341.484
0.4%
20.4%
73.9%
$384.913
12.7%
21.2%
67.4%
$477.646
24.1%
22.0%
68.0%
Page 30
2009
1,377.0
0
2.2%
30.0
2010
1,789.0
0
29.9%
412.0
-
2011
2,696.0
2012
2,812.0
50.7%
907.0
1,213.0
0.0
0.0%
88.1%
1,470.0
0
21.2%
82.2%
$0.0
0
0.0%
0.0
Core ARPU
q/q growth %
y/y growth %
Developing Business
Developing paid subscribers (000s)
q/q growth %
y/y growth %
% of total subs
Core Business
Core - paid subscribers (000s)
q/q growth %
y/y growth %
% of total subs
Core revenues
q/q growth %
y/y growth %
Revenue growth from Developing
Developing Revenues
q/q growth %
y/y growth %
Revenue growth from Developing
Developing ARPU, all in, including ad revs
q/q growth %
y/y growth %
Total APRU
q/q growth %
y/y growth %
New Registrations (000's)
% Growth
New Subscriptions - 1st Time Only (000's)
% Growth
Conversion Rate (Reg to Subs)
Revenues
y/y growth %
% of company Revenue
Operating Expenses
y/y growth %
% of Revenues
OIBDA (EBITDA)
y/y growth %
Margin
% of company EBITDA
Depreciation
OIBA (EBITA)
y/y growth %
Margin
% of company OIBA
IAC/InterActiveCorp
March 12, 2014
2Q13
3,196.0
1.8%
14.7%
56.0
3Q13
3,308.0
3.5%
17.3%
112.0
4Q13
3,357.0
1.5%
19.4%
49.0
2013
3,357.0
4.3%
116.0
1Q13
3,140.0
11.7%
11.3%
328.0
1,664.0
0.0
13.2%
61.7%
1,803.0
0.0
8.4%
64.1%
1,940.0
7.6%
8.0%
61.8%
1,945.0
0.3%
9.5%
60.9%
1,953.0
0.4%
9.0%
59.0%
1,964.0
0.6%
8.9%
58.5%
1,964.0
$338.9
0
0.0%
84.6%
$398.6
$439.9
0
10.4%
61.7%
$113.8
2.8%
4.5%
60.2%
$116.1
2.0%
6.0%
59.8%
$118.8
2.3%
7.2%
59.1%
$115.7
-2.6%
4.5%
56.7%
$464.4
$0.00
0
0.0%
$20.43
$21.20
$21.15
0
-0.2%
$20.27
-1.3%
-3.4%
$19.92
-1.7%
-2.5%
$20.32
2.0%
-1.8%
$19.69
-3.1%
-4.1%
$20.55
164.0
0.0
0.0%
11.9%
318.0
0
93.9%
17.8%
270.0
0.0
-15.1%
10.0%
240.0
0.0
-11.1%
8.5%
388.0
61.7%
45.3%
12.4%
440.0
13.4%
69.2%
13.8%
514.0
16.8%
98.5%
15.5%
578.0
12.5%
140.8%
17.2%
$0.0
0
0.0%
0.0%
$55.5
0
0.0%
13.9%
$73.2
$66.9
0
-8.6%
9.4%
$20.1
15.5%
19.6%
10.6%
$23.4
16.4%
44.4%
12.0%
$26.0
11.1%
57.6%
12.9%
$29.4
13.1%
69.0%
14.4%
$98.9
$0.00
0
0.0%
$19.20
0
0.0%
$20.76
$21.86
0
5.3%
$21.34
-8.2%
2.3%
$18.84
-11.7%
-8.1%
$18.17
-3.6%
-14.3%
$17.95
-1.2%
-22.8%
$20.15
$20.96
0.0%
-9.4%
$21.10
0.0%
0.6%
$19.25
0.0
-8.7%
$21.59
0.0
12.2%
$21.16
-2.1%
0.5%
$20.44
-3.4%
-3.6%
$20.61
0.8%
-2.7%
$20.40
-1.1%
-5.7%
$21.29
0%
0%
0%
$342.598
-6.3%
25.1%
0%
0%
0%
$400.723
17.0%
24.5%
0%
0%
0%
$518.027
29.3%
25.2%
0%
0%
0%
$713.500
37.7%
25.5%
0%
0%
0%
$188.900
8.4%
25.4%
0%
0%
0%
$194.300
8.9%
24.3%
0%
0%
0%
$201.100
12.9%
26.6%
$238.9
-10.0%
0.0%
$267.6
12.0%
0.0%
$351.0
31.1%
67.8%
$471.5
34.3%
66.1%
$137.9
3.3%
73.0%
$121.9
8.7%
62.7%
$103.698
3.5%
30.3%
62.0%
$133.099
28.4%
33.2%
52.5%
$167.054
25.5%
32.2%
45.8%
$242.000
44.9%
33.9%
48.6%
$51.000
25.0%
27.0%
40.7%
$72.400
9.2%
37.3%
47.1%
76.9%
14.1%
1Q13
3,543.1
5.5%
12.8%
186.1
2Q13
3,545.9
0.1%
10.9%
2.8
3Q13
3,604.4
1.6%
9.0%
58.5
4Q13
3,607.8
0.1%
7.5%
3.4
2014E
3,607.8
2015E
3,895.2
2016E
4,109.4
7.5%
250.8
8.0%
287.5
5.5%
214.2
2,095.2
6.7%
8.0%
59.1%
2,081.2
-0.7%
7.0%
58.7%
2,089.7
0.4%
7.0%
58.0%
2,101.5
0.6%
7.0%
58.2%
$2,101.48
$2,248.58
$2,361.01
7.0%
58.2%
7.0%
57.7%
5.0%
57.5%
$117.2
1.3%
3.0%
57.0%
$128.6
9.6%
10.7%
57.2%
$130.9
1.9%
10.2%
57.9%
$127.5
-2.6%
10.2%
56.4%
$504.2
$555.7
$606.5
8.6%
57.1%
10.2%
56.8%
9.1%
56.7%
$19.26
-2.2%
-5.0%
$20.52
6.6%
3.0%
$20.93
2.0%
3.0%
$20.28
-3.1%
3.0%
$20.67
$21.29
$21.93
0.6%
3.0%
3.0%
595.3
3.0%
53.4%
16.8%
613.2
3.0%
39.4%
17.3%
631.6
3.0%
22.9%
17.5%
650.5
3.0%
12.6%
18.0%
$650.54
$748.13
$822.94
12.6%
18.0%
15.0%
19.2%
10.0%
20.0%
$30.0
2.2%
49.5%
14.6%
$35.2
17.1%
50.3%
15.7%
$34.9
-0.7%
34.4%
15.4%
$35.6
1.8%
20.9%
15.7%
$135.7
$160.4
$185.6
37.2%
15.4%
18.2%
16.4%
15.7%
17.3%
$17.07
-4.9%
-20.0%
$19.41
13.7%
3.0%
$18.71
-3.6%
3.0%
$18.49
-1.2%
3.0%
$18.41
$19.11
$19.69
3.0%
3.0%
3.0%
$19.87
-2.6%
-6.1%
$21.13
6.3%
3.4%
$21.10
-0.2%
2.4%
$20.88
-1.0%
2.4%
$21.12
$21.74
$22.29
-1.4%
-0.8%
2.9%
2.5%
0%
0%
0%
$203.900
11.7%
28.1%
0%
0%
0%
$788.200
10.5%
26.1%
0%
0%
0%
$205.700
8.9%
28.1%
0%
0%
0%
$224.692
15.6%
27.7%
0%
0%
0%
$226.287
12.5%
27.4%
0%
0%
0%
$225.914
10.8%
27.0%
0%
0%
0%
$882.594
12.0%
27.5%
0%
0%
0%
$978.518
10.9%
27.9%
0%
0%
0%
$1,070.402
9.4%
26.9%
$127.7
12.3%
63.5%
$118.5
5.6%
58.1%
$506.0
7.3%
64.2%
$153.7
11.4%
74.7%
$138.7
13.8%
61.7%
$139.2
9.0%
61.5%
$126.8
7.0%
56.1%
$558.3
10.3%
63.3%
$612.1
9.6%
62.6%
$664.2
8.5%
62.1%
$73.400
13.8%
36.5%
45.1%
$85.400
21.3%
41.9%
54.7%
$282.200
16.6%
35.8%
47.2%
$52.042
2.0%
25.3%
52.5%
$85.972
18.7%
38.3%
52.2%
$87.119
18.7%
38.5%
47.4%
$99.139
16.1%
43.9%
53.1%
$324.271
14.9%
36.7%
51.1%
$366.432
13.0%
37.4%
49.3%
$406.192
10.9%
37.9%
46.1%
19.4%
545.0
8.9%
58.5%
0.1
58.9%
-2.8%
578.0
140.8%
17.2%
0.5
0.1
-7.8%
$9.8
$11.0
$10.8
$16.3
$4.7
$4.8
$5.0
$5.6
$20.1
$5.6
$5.6
$5.6
$5.6
$22.4
$22.4
$23.1
$94.1
3.1%
27.5%
90.9%
$122.1
29.7%
30.5%
64.4%
$156.3
28.0%
30.2%
50.7%
$225.7
44.4%
31.6%
50.7%
$46.3
24.1%
24.5%
41.6%
$67.6
8.0%
34.8%
49.5%
$68.4
14.0%
34.0%
45.8%
$79.8
21.3%
39.1%
56.3%
$262.1
16.1%
33.3%
48.6%
$46.4
0.3%
22.6%
54.8%
$80.4
18.9%
35.8%
53.5%
$81.5
19.2%
36.0%
48.1%
$93.5
17.2%
41.4%
54.3%
$301.9
15.2%
34.2%
52.3%
$344.0
14.0%
35.2%
50.2%
$383.1
11.4%
35.8%
46.7%
($2.5)
($0.2)
$0.2
($1.6)
($2.9)
$0.2
($0.4)
($0.3)
($0.6)
($1.1)
($0.6)
($0.6)
($0.6)
($0.6)
($2.4)
($2.4)
($4.4)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Amortization of Intangibles
($4.9)
($6.8)
($17.1)
($17.4)
($4.0)
($4.6)
($2.7)
($3.8)
($15.1)
($3.8)
($3.8)
($3.8)
($3.8)
($15.2)
($15.2)
($15.7)
$84.7
12.1%
0.0%
-40.0%
$115.4
36.3%
0.0%
52.8%
$137.6
19.2%
0.0%
18.9%
$205.5
49.4%
0.0%
34.8%
$41.0
37.1%
21.7%
76.0%
$58.4
2.3%
30.1%
8.2%
$64.8
15.5%
32.2%
38.0%
$81.4
30.4%
39.9%
89.2%
$245.9
19.7%
0.0%
54.1%
$42.0
2.5%
20.4%
6.2%
$76.0
30.1%
33.8%
57.8%
$77.1
19.0%
34.1%
48.9%
$89.1
9.5%
39.5%
35.2%
$284.3
15.6%
0.0%
40.7%
$326.4
14.8%
0.0%
44.0%
$365.0
11.8%
0.0%
42.0%
Page 31
IAC/InterActiveCorp
March 12, 2014
2009
$230.426
86.0%
16.9%
2010
$263.749
14.5%
16.1%
2011
$303.418
15.0%
14.7%
2012
$322.600
6.3%
11.5%
1Q13
$74.900
-2.9%
10.1%
2Q13
$84.700
0.2%
10.6%
3Q13
$62.800
-25.5%
8.3%
4Q13
$55.000
-28.3%
7.6%
2013
$277.400
-14.0%
9.2%
1Q13
$62.600
-16.4%
8.6%
2Q13
$82.004
-3.2%
10.1%
3Q13
$75.861
20.8%
9.2%
4Q13
$66.668
21.2%
8.0%
2014E
$287.133
3.5%
9.0%
2015E
$326.061
13.6%
9.3%
2016E
$354.666
8.8%
8.9%
Operating Expenses
y/y growth %
% of Revenues
$131.3
38.9%
57.0%
$245.3
86.8%
93.0%
$264.7
7.9%
87.3%
$287.5
8.6%
89.1%
$73.6
4.7%
98.3%
$80.0
14.0%
94.5%
$49.1
-33.6%
78.2%
$54.1
-25.9%
98.4%
$256.8
-10.7%
92.6%
$61.4
-16.6%
98.1%
$77.0
-3.7%
94.0%
$71.3
45.2%
94.0%
$65.2
20.6%
97.9%
$274.9
7.1%
95.8%
$310.6
13.0%
95.3%
$336.1
8.2%
94.8%
OIBDA (EBITDA)
y/y growth %
Margin
% of company EBITDA
$18.6
-36.7%
8.1%
11.1%
$18.5
-0.9%
7.0%
7.3%
$38.7
109.5%
12.7%
10.6%
$35.1
-9.2%
10.9%
7.1%
$1.3
-80.9%
1.7%
1.0%
$4.7
-67.1%
5.5%
3.1%
$13.7
33.0%
21.8%
8.4%
$0.9
-75.7%
1.6%
0.6%
$20.6
-41.3%
7.4%
3.4%
$1.2
-6.8%
1.9%
1.2%
$5.0
5.5%
6.0%
3.0%
$4.6
-66.5%
6.0%
2.5%
$1.4
58.3%
2.1%
0.8%
$12.2
-40.8%
4.2%
1.9%
$15.5
26.9%
4.7%
2.1%
$18.6
20.2%
5.2%
2.1%
Depreciation
$6.3
$7.8
$10.4
$10.2
$2.3
$2.7
$1.3
$1.3
$7.6
$1.3
$1.3
$1.3
$1.3
$5.2
$5.2
$5.4
$12.4
-52.8%
5.4%
11.9%
$10.7
-13.6%
4.0%
5.6%
$28.3
165.1%
9.3%
9.2%
$24.9
-12.0%
11.7%
5.6%
($1.0)
-125.0%
-1.7%
-0.9%
$2.0
-83.1%
2.8%
1.5%
$12.4
59.0%
18.6%
8.3%
($0.4)
-130.8%
-0.7%
-0.3%
$13.0
-47.8%
5.1%
2.4%
($0.1)
-91.2%
-0.1%
-0.1%
$3.7
83.0%
4.5%
2.4%
$3.3
-73.5%
4.3%
1.9%
$0.1
-131.1%
0.2%
0.1%
$7.0
-46.3%
2.4%
1.2%
$10.3
47.0%
3.1%
1.5%
$13.2
29.0%
3.7%
1.6%
($0.2)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
($5.0)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
($3.2)
($2.3)
($2.8)
($3.3)
($2.4)
($5.9)
($2.6)
($2.5)
($13.4)
($2.5)
($2.5)
($2.5)
($2.5)
($10.0)
($10.0)
($10.3)
$4.0
-83.4%
1.7%
-0.4%
$8.4
111.5%
3.2%
16.9%
$25.5
203.8%
8.4%
12.9%
$21.7
-15.0%
10.2%
6.7%
($3.4)
-189.5%
-5.9%
-4.0%
($4.0)
-134.2%
-5.5%
-3.7%
$9.9
35.6%
14.8%
8.1%
($2.9)
163.6%
-4.9%
-2.6%
($0.4)
-101.8%
-0.2%
-0.1%
($2.6)
-23.9%
-4.1%
-4.6%
$1.2
-129.0%
1.4%
1.0%
$0.8
-92.0%
1.0%
0.6%
($2.4)
-18.1%
-3.6%
-1.7%
($3.0)
653.7%
-1.0%
-0.7%
$0.3
-108.9%
0.1%
0.0%
$2.9
999.6%
0.8%
0.4%
OIBA (EBITA)
y/y growth %
Margin
% of company OIBA
Page 32
IAC/InterActiveCorp
March 12, 2014
2009
$125.6
-42.0%
9.2%
2010
$168.4
34.1%
10.3%
2011
$198.2
17.7%
9.6%
2012
$299.4
51.0%
10.7%
1Q13
$81.3
76.4%
11.0%
2Q13
$93.0
34.8%
11.6%
3Q13
$86.1
5.3%
11.4%
4Q13
$92.8
-9.5%
12.8%
2013
$353.2
18.0%
11.7%
1Q13
$84.5
3.9%
11.5%
2Q13
$96.5
3.8%
11.9%
3Q13
$89.4
3.8%
10.8%
4Q13
$96.7
4.2%
11.6%
2014E
$367.0
3.9%
11.4%
2015E
$378.0
3.0%
10.8%
2016E
$389.3
3.0%
9.8%
Operating Expenses
y/y growth %
% of Revenues
$181.4
-27.0%
144.4%
$187.1
3.2%
111.1%
$215.0
14.9%
108.5%
$347.9
61.8%
116.2%
$91.4
70.8%
112.4%
$99.1
28.7%
106.6%
$95.1
-0.5%
110.5%
$98.4
-19.2%
106.0%
$384.0
10.4%
108.7%
$97.5
6.7%
115.5%
$107.3
8.3%
111.2%
$91.2
-4.1%
102.1%
$99.5
1.1%
102.9%
$395.5
3.0%
107.8%
$385.8
-2.5%
102.1%
$395.4
2.5%
101.6%
OIBDA (EBITDA)
y/y growth %
Margin
% of company EBITDA
($20.3)
-37.1%
-16.1%
0.0%
($18.7)
-7.8%
-11.1%
0.0%
($16.8)
-10.1%
-8.5%
0.0%
($48.5)
188.9%
-16.2%
0.0%
($10.1)
36.5%
-12.4%
-8.1%
($6.1)
-23.8%
-6.6%
-4.0%
($9.0)
-34.8%
-10.5%
-5.5%
($5.6)
-71.0%
-6.0%
-3.6%
($30.8)
-36.5%
-8.7%
-5.2%
($13.1)
29.6%
-15.5%
-13.2%
($10.8)
77.0%
-11.2%
-6.6%
($1.8)
-79.5%
-2.1%
-1.0%
($2.8)
-49.9%
-2.9%
-1.5%
($28.5)
-7.4%
-7.8%
-4.5%
($7.8)
-72.8%
-2.1%
-1.0%
($6.0)
-22.1%
-1.6%
-0.7%
Depreciation
$2.7
$1.1
$1.6
$2.5
$0.8
$0.8
$0.9
$1.0
$3.5
$1.0
$1.0
$1.0
$1.0
$4.0
$4.0
$4.1
($23.0)
-28.5%
-18.3%
-22.2%
($19.8)
-14.1%
-11.7%
-10.4%
($18.3)
-7.2%
-9.3%
-5.9%
($51.0)
178.0%
-17.0%
-11.5%
($10.9)
39.7%
-13.4%
-9.8%
($6.9)
-19.8%
-7.4%
-5.0%
($9.9)
-31.7%
-11.5%
-6.6%
($6.6)
-67.2%
-7.1%
-4.7%
($34.3)
-32.7%
-9.7%
-6.4%
($14.1)
29.2%
-16.7%
-16.6%
($11.8)
71.0%
-12.2%
-7.9%
($2.8)
-71.3%
-3.2%
-1.7%
($3.8)
-42.4%
-3.9%
-2.2%
($32.5)
-5.2%
-8.9%
-5.6%
($11.8)
-63.8%
-3.1%
-1.7%
($10.2)
-13.5%
-2.6%
-1.2%
($0.8)
($0.6)
($0.8)
($1.0)
($0.2)
($0.2)
($0.2)
$0.0
($0.6)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
($1.4)
($34.6)
($1.1)
($7.8)
($0.9)
($0.9)
($0.9)
($0.9)
($3.6)
($0.9)
($0.9)
($0.9)
($0.9)
($3.6)
($3.6)
($3.7)
($25.2)
-52.1%
-20.1%
0.0%
($55.0)
118.0%
-32.6%
0.0%
($20.2)
-63.3%
-10.2%
0.0%
($59.8)
196.5%
-20.0%
0.0%
($12.0)
42.9%
-14.8%
-14.2%
($8.0)
-15.8%
-8.6%
-7.5%
($11.0)
-31.3%
-12.8%
-9.0%
($7.5)
-70.9%
-8.1%
-6.6%
($38.5)
-35.6%
-10.9%
-9.0%
($15.0)
24.9%
-17.7%
-26.8%
($12.7)
58.7%
-13.2%
-10.5%
($3.7)
-66.0%
-4.2%
-2.7%
($4.7)
-37.3%
-4.9%
-3.3%
($36.1)
-6.1%
-9.8%
-7.8%
($15.4)
-57.5%
-4.1%
-2.7%
($13.9)
-9.7%
-3.6%
-2.0%
OIBA (EBITA)
y/y growth %
Margin
% of company OIBA
Page 33
Corporate Expenses
Operating Expenses
y/y growth %
OIBDA (EBITDA)
y/y growth %
IAC/InterActiveCorp
March 12, 2014
2009
($1.569)
-92.0%
2010
($1.382)
-11.9%
2011
($0.737)
-46.7%
2012
($0.400)
-45.7%
1Q13
($0.100)
0.0%
2Q13
($0.100)
0.0%
3Q13
($0.400)
300.0%
4Q13
($0.300)
200.0%
2013
($0.900)
125.0%
1Q13
($0.105)
5.0%
2Q13
($0.105)
5.0%
3Q13
($0.420)
5.0%
4Q13
($0.315)
5.0%
2014E
($0.945)
5.0%
2015E
($0.992)
5.0%
2016E
($1.042)
5.0%
$52.0
6.8%
$54.6
4.9%
$55.7
2.1%
$59.0
6.0%
$12.9
-4.4%
$15.3
8.5%
$12.8
-6.6%
$17.7
0.0%
$58.7
-0.5%
$13.0
1.0%
$15.5
1.0%
$12.9
1.0%
$17.9
1.0%
$59.3
1.0%
$59.9
1.0%
$61.7
3.0%
($54.3)
-50.0%
($55.9)
3.0%
($56.4)
0.9%
($59.4)
5.3%
($13.0)
-4.4%
($15.4)
8.5%
($13.2)
-4.3%
($18.0)
1.1%
($59.6)
0.3%
($13.1)
1.0%
($15.6)
1.0%
($13.3)
1.1%
($18.2)
1.1%
($60.2)
1.1%
($60.9)
1.1%
($62.7)
3.0%
Depreciation
$11.2
$8.2
$6.4
$8.6
$2.3
$2.3
$2.4
$2.5
$9.5
$2.5
$2.5
$2.5
$2.5
$10.0
$10.0
$10.3
OIBA (EBITA)
y/y growth %
($65.5)
-46.1%
($64.2)
-2.0%
($62.8)
-2.2%
($68.0)
8.3%
($15.3)
-2.5%
($17.7)
8.6%
($15.6)
-1.9%
($20.5)
2.0%
($69.1)
1.6%
($15.6)
2.2%
($18.1)
2.0%
($15.8)
1.6%
($20.7)
0.9%
($70.2)
1.6%
($70.9)
0.9%
($73.0)
3.0%
($68.3)
($83.2)
($86.4)
($81.9)
($12.6)
($11.2)
($13.8)
($13.6)
($51.2)
($13.6)
($13.6)
($13.6)
($13.6)
($54.4)
($54.4)
($56.0)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
($133.7)
-35.1%
($147.3)
10.2%
($149.2)
1.2%
($149.9)
0.5%
($27.9)
-22.5%
($29.0)
-19.2%
($29.4)
-23.8%
($34.1)
-13.5%
($120.3)
-19.7%
($29.2)
4.8%
($31.7)
9.2%
($29.4)
0.2%
($34.3)
0.6%
($124.6)
3.6%
($125.3)
0.5%
($129.1)
3.0%
Page 34
IAC/InterActiveCorp
March 12, 2014
2009
$1,245.997
$487.591
$101.834
$164.627
$2,000.049
2010
$742.099
$563.997
$119.581
$118.308
$1,543.985
2011
$704.153
$165.695
$177.030
$112.255
$1,159.133
2012
$749.977
$20.604
$229.830
$156.339
$1,156.750
1Q13
$673.757
$5.814
$235.181
$140.930
$1,055.682
2Q13
$678.725
$7.775
$235.950
$148.285
$1,070.735
3Q13
$741.652
$26.340
$209.949
$151.980
$1,129.921
4Q13
$1,100.444
$6.004
$207.408
$161.530
$1,475.386
2013
$1,100.444
$6.004
$207.408
$161.530
$1,475.386
1Q13
$1,021.511
$6.004
$272.614
$161.530
$1,461.659
2Q13
$1,084.505
$6.004
$284.809
$161.530
$1,536.848
3Q13
$1,181.982
$6.004
$275.086
$161.530
$1,624.602
4Q13
$1,245.560
$6.004
$286.027
$161.530
$1,699.121
2014E
$1,245.560
$6.004
$286.027
$161.530
$1,699.121
2015E
$1,426.659
$6.004
$363.330
$161.530
$1,957.523
2016E
$1,750.475
$6.004
$413.544
$161.530
$2,331.553
$0.000
$297.412
$999.355
$261.172
$272.930
$184.971
$4,015.889
$0.000
$267.928
$989.493
$245.044
$200.721
$192.383
$3,439.554
$0.000
$259.588
$1,358.524
$378.107
$173.752
$80.761
$3,409.865
$0.000
$270.512
$1,616.154
$482.904
$161.278
$118.230
$3,805.828
$0.000
$293.282
$1,674.220
$478.784
$157.750
$120.528
$3,780.246
$0.000
$289.493
$1,664.315
$466.161
$196.811
$124.976
$3,812.491
$0.000
$290.470
$1,672.705
$458.371
$164.170
$89.145
$3,804.782
$0.000
$293.964
$1,675.323
$445.336
$179.990
$164.685
$4,234.684
$0.000
$293.964
$1,675.323
$445.336
$179.990
$164.685
$4,234.684
$0.000
$295.931
$1,675.323
$445.336
$179.990
$164.685
$4,222.923
$0.000
$299.687
$1,675.323
$445.336
$179.990
$164.685
$4,301.869
$0.000
$303.759
$1,675.323
$445.336
$179.990
$164.685
$4,393.695
$0.000
$308.066
$1,675.323
$445.336
$179.990
$164.685
$4,472.521
$0.000
$308.066
$1,675.323
$445.336
$179.990
$164.685
$4,472.521
$0.000
$328.740
$1,675.323
$445.336
$179.990
$164.685
$4,751.596
$0.000
$358.504
$1,675.323
$445.336
$179.990
$164.685
$5,155.391
$39.173
$57.822
$193.282
$290.277
$56.375
$78.175
$222.323
$356.873
$64.398
$126.297
$343.490
$534.185
$98.314
$155.499
$355.232
$624.889
$78.168
$169.480
$343.791
$591.439
$83.294
$164.667
$362.695
$610.656
$72.966
$161.950
$366.635
$601.551
$77.653
$158.206
$351.038
$586.897
$77.653
$158.206
$351.038
$586.897
$68.727
$167.148
$339.061
$574.937
$75.400
$167.279
$368.449
$611.128
$70.622
$176.789
$400.228
$647.638
$81.149
$182.718
$405.428
$669.295
$81.149
$182.718
$405.428
$669.295
$79.344
$199.654
$443.005
$722.003
$90.310
$227.247
$504.231
$821.787
Long-term debt
Income taxes payable
Other long-term liabilities
Redeemable noncontrolling interests
Commitments and contingencies
$95.844
$450.129
$23.633
$28.180
$0.000
$95.844
$475.685
$20.350
$59.869
$0.000
$95.844
$450.533
$16.601
$50.349
$0.000
$580.000
$479.945
$31.830
$58.126
$0.000
$580.000
$481.908
$66.405
$59.254
$0.000
$580.000
$496.168
$66.081
$64.147
$0.000
$580.000
$411.172
$65.175
$32.779
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$1,080.000
$416.384
$58.393
$42.861
$0.000
$0.000
$0.223
$0.016
$11,322.993
($751.377)
$24.503
($7,468.532)
$3,127.826
$4,015.889
$0.000
$0.226
$0.016
$11,428.749
($652.018)
$17.546
($8,363.586)
$2,430.933
$3,439.554
$0.000
$0.234
$0.016
$11,280.173
($477.785)
($12.443)
($8,885.146)
$1,905.049
$3,409.865
$0.000
$0.251
$0.016
$11,607.367
($318.519)
($32.169)
($9,601.218)
$1,655.728
$3,805.828
$0.000
$0.251
$0.016
$11,606.585
($264.882)
($44.096)
($9,661.355)
$1,636.519
$3,780.246
$0.000
$0.251
$0.016
$11,604.296
($206.592)
($32.187)
($9,734.479)
$1,631.305
$3,812.491
$0.000
$0.251
$0.016
$11,585.545
($109.652)
($6.625)
($9,734.479)
$1,735.056
$3,804.782
$0.000
$0.251
$0.016
$11,562.567
($32.735)
($13.046)
($9,830.317)
$1,686.736
$4,234.684
$0.000
$0.251
$0.016
$11,562.567
($32.735)
($13.046)
($9,830.317)
$1,686.736
$4,234.684
$0.000
$0.251
$0.016
$11,604.150
($4.119)
($13.046)
($9,900.317)
$1,686.936
$4,222.923
Stockholders' Equity
Common stock
Class B convertible common stock
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive income
Treasury Stock
Total stockholders' equity (deficit)
Total Liabilities & Shareholders Equity
Source: Company Reports; Topeka Capital Markets
$0.000
$0.000
$0.000
$0.000
$0.251
$0.251
$0.251
$0.251
$0.016
$0.016
$0.016
$0.016
$11,645.733 $11,687.316 $11,728.900 $11,728.900
$67.053
$150.786
$236.371
$236.371
($13.046)
($13.046)
($13.046)
($13.046)
($9,970.317) ($10,040.317) ($10,110.317) ($10,110.317)
$1,729.690
$1,785.007
$1,842.175
$1,842.175
$4,301.869
$4,393.695
$4,472.521
$4,472.521
$0.000
$0.000
$0.251
$0.251
$0.016
$0.016
$11,895.232 $12,069.209
$576.407
$994.840
($13.046)
($13.046)
($10,390.317) ($10,678.717)
$2,068.543
$2,372.553
$4,751.596
$5,155.391
Page 35
IAC/InterActiveCorp
March 12, 2014
2011
$171.577
$3.992
$175.569
$0.000
$56.719
$22.057
$0.000
$0.000
$0.000
$88.588
($35.483)
$36.300
$0.000
$0.000
($1.974)
2012
$160.796
$9.051
$169.847
$0.000
$52.481
$35.771
$0.000
$0.000
$8.685
$85.625
$37.076
$25.345
$0.000
$0.000
$0.000
1Q13
$51.765
$0.944
$52.709
$0.000
$14.016
$14.078
$0.000
$0.000
$0.000
$12.663
($11.010)
$0.091
$0.000
$0.000
$0.000
2Q13
$57.472
$1.068
$58.540
$0.000
$17.036
$18.137
$0.000
$0.000
$0.000
$11.820
$4.273
$1.078
$0.000
$0.000
$0.000
3Q13
$95.635
($3.914)
$91.721
$0.000
$13.489
$13.032
$0.000
$0.000
$0.000
$14.365
$0.798
$3.253
$0.000
$0.000
($32.896)
4Q13
$78.853
($0.024)
$78.829
$0.000
$14.368
$14.596
$0.000
$0.000
$5.268
$14.157
($3.157)
$2.193
$0.000
$0.000
($17.712)
2013
$283.725
($1.926)
$281.799
$0.000
$58.909
$59.843
$0.000
$0.000
$5.268
$53.005
($9.096)
$6.615
$0.000
$0.000
($50.608)
1Q13
$28.616
$0.000
$28.616
$0.000
$14.400
$14.500
$0.000
$0.000
$0.000
$14.200
$0.000
($2.193)
$0.000
$0.000
$0.000
2Q13
$71.171
$0.000
$71.171
$0.000
$14.400
$14.500
$0.000
$0.000
$0.000
$14.200
$0.000
($2.193)
$0.000
$0.000
$0.000
3Q13
$83.734
$0.000
$83.734
$0.000
$14.400
$14.500
$0.000
$0.000
$0.000
$14.200
$0.000
($2.193)
$0.000
$0.000
$0.000
4Q13
$85.585
$0.000
$85.585
$0.000
$14.400
$14.500
$0.000
$0.000
$0.000
$14.200
$0.000
($2.193)
$0.000
$0.000
$0.000
2014E
$269.106
$0.000
$269.106
$0.000
$57.600
$58.000
$0.000
$0.000
$0.000
$56.800
$0.000
($8.772)
$0.000
$0.000
$0.000
2015E
$340.035
$0.000
$340.035
$0.000
$57.600
$58.000
$0.000
$0.000
$0.000
$56.800
$0.000
($8.772)
$0.000
$0.000
$0.000
2016E
$418.433
$0.000
$418.433
$0.000
$59.328
$59.740
$0.000
$0.000
$0.000
$58.504
$0.000
($8.772)
$0.000
$0.000
$0.000
($58.314)
$1.287
$57.228
($29.215)
$48.950
$10.674
$372.386
($30.991)
($22.991)
($14.384)
($10.091)
$1.864
$16.290
$354.527
($4.635)
($8.001)
($12.929)
$22.666
$7.827
$3.429
$92.362
($5.119)
($6.788)
$36.367
$22.863
($8.030)
$5.022
$135.901
$20.564
($5.127)
($29.597)
$2.607
($1.203)
$7.312
$96.067
($0.389)
($14.716)
$5.393
$1.055
($4.435)
$3.638
$86.631
$10.421
($34.632)
($0.766)
$49.191
($5.841)
$19.401
$410.961
($65.206)
$0.000
($20.903)
$0.000
$8.942
$0.000
($7.643)
($12.195)
$0.000
$36.060
$0.000
$0.131
$0.000
$136.074
$9.723
$0.000
$27.000
$0.000
$9.509
$0.000
$170.873
($10.941)
$0.000
$15.727
$0.000
$5.930
$0.000
$137.209
($78.619)
$0.000
$57.886
$0.000
$24.512
$0.000
$436.513
($77.303)
$0.000
$35.772
$0.000
$16.935
$0.000
$479.069
($50.214)
$0.000
$72.192
$0.000
$27.593
$0.000
$636.804
Investing Activities
Acquisitions, net of cash acquired
Capital expenditures
Proceeds from sales and maturities of marketable debt securities
Purchases of marketable debt securities
Proceeds from sales of investments
Purchases of long-term investments
Fund transferred to escrow for Meetic tender offer
Dividend received from Meetic, an equity method investee
Other, net
Net cash provided by (used in) investing activities
($85.534)
($33.938)
$229.583
($586.274)
$64.046
($6.482)
$0.000
$0.000
($4.041)
($422.640)
($17.333)
($39.829)
$763.326
($838.155)
$5.324
($2.283)
$11.355
$0.000
($0.501)
($118.096)
($278.469)
($39.954)
$584.935
($203.970)
$15.214
($90.245)
$0.000
$0.000
($12.697)
($25.186)
($411.035)
($51.201)
$195.501
($53.952)
$14.194
($36.094)
$0.000
$0.000
($9.501)
($352.088)
($29.194)
($33.638)
$12.500
$0.000
$0.214
($0.975)
$0.000
$0.000
($1.051)
($52.144)
($7.719)
($14.181)
$0.002
$0.000
$0.096
($24.284)
$0.000
$0.000
($0.392)
($46.478)
($2.544)
($16.295)
$0.000
$0.000
$41.976
($1.346)
$0.000
$0.000
$10.347
$32.138
($1.233)
($16.197)
$0.000
$0.000
$27.682
($24.475)
$0.000
$0.000
$0.690
($13.533)
($40.690)
($80.311)
$12.502
$0.000
$69.968
($51.080)
$0.000
$0.000
$9.594
($80.017)
$0.000
($16.367)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($16.367)
$0.000
($18.156)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($18.156)
$0.000
($18.472)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($18.472)
$0.000
($18.707)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($18.707)
$0.000
($71.702)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($71.702)
$0.000
($78.274)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($78.274)
$0.000
($89.092)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($89.092)
Financing Activities
Purchase of treasury stock
Issuance of common stock, net of withholding taxes
Excess tax benefits from stock-based awards
Liberty Exchange
Other, net
Net cash provided by (used in) financing activities
($545.489)
$151.933
$0.796
$0.000
($12.706)
($405.466)
($539.598)
$25.939
$14.291
($217.921)
$0.079
($717.210)
($507.765)
$132.785
$22.166
$0.000
($8.751)
($372.233)
($691.830)
$262.841
$57.101
$0.000
($15.648)
$44.301
($88.605)
$0.552
$12.530
$0.000
($1.101)
($113.897)
($74.055)
($1.420)
$11.017
$0.000
($2.533)
($84.442)
($5.716)
$7.324
$2.883
$0.000
$0.248
($70.824)
($95.838)
($11.533)
$6.461
$0.000
($79.312)
$287.085
($264.214)
($5.077)
$32.891
$0.000
($82.698)
$17.922
($70.000)
$35.000
$0.000
$0.000
$0.000
($54.924)
($70.000)
$35.000
$0.000
$0.000
$0.000
($54.924)
($70.000)
$35.000
$0.000
$0.000
$0.000
($54.924)
($70.000)
$35.000
$0.000
$0.000
$0.000
($54.924)
($280.000)
$140.000
$0.000
$0.000
$0.000
($219.695)
($280.000)
$140.000
$0.000
$0.000
$0.000
($219.695)
($288.400)
$144.200
$0.000
$0.000
$0.000
($223.895)
($479.559)
($25.039)
($494.599)
($7.545)
($25.033)
($8.417)
$46.740
($3.472)
($73.679)
$2.425
$4.981
($0.090)
$57.381
($0.078)
$360.183
($4.134)
$348.866
($1.877)
($78.933)
$0.000
$62.994
$0.000
$97.477
$0.000
$63.578
$0.000
$145.116
$0.000
$181.099
$0.000
$323.816
$0.000
$5.601
($1.754)
($4.496)
$2.556
($4.966)
$0.077
$5.624
$2.743
$3.478
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
($498.997)
$1,744.994
$1,245.997
($503.898)
$1,245.997
$742.099
($37.946)
$742.099
$704.153
$45.824
$704.153
$749.977
($76.220)
$749.977
$673.757
$4.968
$673.757
$678.725
$62.927
$678.725
$741.652
$358.792
$741.652
$1,100.444
$350.467
$749.977
$1,100.444
($78.933)
$1,100.444
$1,021.511
$62.994
$1,021.511
$1,084.505
$97.477
$1,084.505
$1,181.982
$63.578
$1,181.982
$1,245.560
$145.116
$1,100.444
$1,245.560
$181.099
$1,245.560
$1,426.659
$323.816
$1,426.659
$1,750.475
Page 36
IAC/InterActiveCorp
March 12, 2014
Analyst Certification
Victor Anthony who is principally responsible for the preparation of this report with
respect to each subject security or issuer contained within this report certifies as of
the date of the report that:
(1) the recommendations and guidance expressed accurately reflects the research
analyst's personal views;
(2) no part of the compensation was, is, or will be directly, or indirectly, related to the
specific recommendations or views expressed in this report.
Company Disclosures
For up-to-date company disclosures, please click on the following link or
paste URL in a web browser: www.topekacapitalmarkets.com. Company specific
disclosures and price charts for compendium reports are available by emailing
tcmresearch@topekacapitalmarkets.com.
Investment Banking Services: Topeka Capital Markets Inc. seeks to do business with
the issuers in its research reports.
The analyst may receive direct or indirect compensation based on the performancerelated to the recommendation and guidance expressed.
The information and rating included in this report represent the long-term view as
described more fully below. The analyst may have different views regarding short
term trading strategies with respect to the stocks covered by the rating, options on
such stocks, and/or other securities or financial instruments issued by the company.
Our brokers and analysts may make recommendations to their clients, and our
affiliates may make investment decisions that are contrary to the recommendations
contained in this research report. Such recommendations or investment decisions are
based on the particular investment strategies, risk tolerances, and other investment
factors of that particular client or affiliate. From time to time, Topeka, and its
respective directors, officers, employees, or members of their immediate families
may have a long or short position in the securities or other financial instruments
mentioned in this report. We provide to certain customers on request specialized
research products or services that focus on covered stocks from a particular
perspective. These products or services include, but are not limited to, compilations,
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aware that we may issue investment research on the subject companies from a
technical perspective and/or include in this report discussions about options on
stocks covered in this report and/or other securities or financial instruments issued
by the company. These analyses are different from fundamental analysis, and the
conclusions reached may differ. Technical research and the discussions concerning
options and other securities and financial instruments issued by the company do not
represent a rating or coverage of any discussed issuer(s). The disclosures concerning
distribution of ratings and price charts refer to fundamental research and do not
Page 37
IAC/InterActiveCorp
March 12, 2014
Disclaimer
Information about our recommendations, holdings and investment decisions:
The information presented in this report is for informational purposes only. It was
prepared based on information and sources that we believe to be reliable, but we
make no representations or guarantees as to the accuracy or completeness of the
information contained herein. This report is not to be construed as an offer to sell
or a solicitation of an offer to buy any security. The opinions expressed in this report
may change without notice.
Topeka Capital Markets Inc. reports are intended for use by institutional investors.
The securities discussed in Topeka Capital Markets Inc. research reports may not be
suitable for some investors. Investors must make their own determination as to the
appropriateness of an investment in any securities referred to herein, based on their
specific investment objectives, financial status and risk tolerance. Past performance
is no guarantee of future results and the predictions made in this report may not be
met.
Topeka Capital Markets Inc. accepts no liability whatsoever for any loss or damage of
any kind arising out of the use of all or any part of this report. Topeka Capital Markets
Inc. specifically prohibits the re-distribution of this report by third parties, via the
internet or otherwise, and accepts no liability whatsoever for the actions of such third
parties in this respect. Additional information is available to clients upon request.
90
80
70
60
50
40
May-13 Jul-13
Sep-13
IAC/InterActiveCorp
Nov-13
Jan-14
Mar-14
Stock Ratings
Buy - The stock is expected to trade higher on an absolute basis or outperform relative
to the market or its peer stocks over the next 12 months.
Page 38
IAC/InterActiveCorp
March 12, 2014
Hold - The stock has average risk/reward and is expected to perform in line with the
market or its peer stocks over the next 12 months.
Sell - The stock is expected to trade lower on an absolute basis or underperform
relative to the market or its peer stocks over the next 12 months.
Count
% of total
78
48
0
61.90%
38.10%
0.00%
Source: Topeka Capital Markets
Page 39