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1/n Live tweeting $IAC analyst day - First Question: Capital allocation. 1 - prioritize existing businesses. 2 - now more than ever, new opptys/categories more likely (we have cash + capacity). Will look in any area and any stage.
2 - Thoughts on recovery? New normal or back to old normal? He thinks video is a great way to interact. Vimeo in a good spot.
3 - Top priorities? $ANGI and fixed price model. Good early positive momentum. huge oppty. Vimeo - confirming market is as big as they think it is in video. Required a leap of faith 6 months ago. And then what to do with the $4bn. Those are the top 3.
4 - Hurdle for M&A vs. buybacks? Timeframe? Answer: I can& #39;t be more specific on buybacks. Depends on market, stock price, opportunities for M&A. Last time they were in a similar position they bought back huge amounts of stock. It& #39;s something we will always look at.
5 - Over to $ANGI CEO - Think they had an exceptional quarter. Good on revenue side. Service request side good (and lowering costs). Friction on provider capacity. Sees demand coming back. Many providers having difficulty re-hiring labor.
6 - $ANGI Will introduce financing options. Plan to offer payment processing options for service providers.
7 - Long discussion on fixed price model. Angi experimenting with higher price offerings - build a deck for $1000, for example. They think this is a $200bn market.
8 - Advertising mix? Don& #39;t intend to take away spend from google. Want more customers to come to them direct (web, app, payments, recurring services).
$ANGI argues there is no downside to service providers to be on the fixed price platform - there is no cost to the service provider - they can accept the job or not. Getting pricing right is critical.
$ANGI - Demand for installs of swimming pools up 90%+ y/y in June.
$ANGI - Confident in 20% growth; ambitions are higher.
Going to circle back to the Vimeo and Dotdash portions via transcript. But http://Care.com"> http://Care.com CEO Tim Allen is on now.
http://Care.com"> http://Care.com Highlighting safety measures ("carecheck" background checks, geotracking, etc). Tons of tailwinds for Care at Work (enterprise). Seeing rise in demand for childcare as a corporate benefit (akin to health benefits). Well-positioned for nanny/long-term.
http://Care.com"> http://Care.com CEO: "Offline is our biggest competitor." Lots of upside/optionality in childcare and senior care (and even pet care). "We& #39;re not even in the bottom of the first inning yet."
$IAC CFO& #39;s concluding remarks from investor event. Like having a high cash balance - it is a strategic weapon. On the SOTP discount - have always said it will take care of itself over time. Will try continue to be transparent (ie, days like today).
$IAC CFO: SPACs are trading at premiums to cash; why should investors put a discount on our cash!? (paraphrasing)
IAC: Areas for internal investment: ANGI: Will tilt to investing for growth rather than letting margins expand. Focus on payments. Vimeo: could be profitable in 2021; could pour more capital into growth and delay profitability. Internal debate.
Dotdash: 24% margins last yr. More margin there. http://Care.com"> http://Care.com was a 10% margin business when public. Nowhere near optimizing for margins there right now under IAC& #39;s ownership. Will invest to accelerate that rather than focus on margins for now.
IAC CFO an M&A - We have a lot of internal opportunities, so don& #39;t need to buy anything else. But, we would like to and probably will buy more businesses. We think like owners. Won& #39;t let cash burn a hole in our pockets.
Question: When are you going to spin $ANGI? When are you going to do a partial IPO and/or spin of Vimeo?
