Barry Diller's IAC Beats Financial Expectations as Vimeo Grows
The video-sharing site ended the third quarter with 650,000 paying subscribers, up 22 percent from a year ago.
IAC, the Internet company controlled by billionaire media mogul Barry Diller, reported better-than-expected quarterly earnings in part courtesy of impressive growth at entertainment properties like Vimeo, CollegeHumor, Electus and the Daily Beast.
Vimeo, a video-sharing site that in some ways competes with YouTube, ended the third quarter with 650,000 paying subscribers, up 22 percent from a year ago.
Overall, IAC said it earned $1.01 per share, after certain items, on $838.6 million in revenue. Analysts expected 78 cents per share on $806 million in revenue. Despite the earnings beat, IAC shares were shrinking 1 percent in after-hours trading after dropping 2 percent to $67.57 in the regular session.
IAC's "media" segment remains the online conglomerate's smallest contributor, adding $57.3 million in revenue during the quarter, up 15 percent from last year. Also, media was IAC's lone segment to report an operating loss.
Search and applications reported $377.1 million in revenue and operating income of $65.4 million; the match group, consisting of online dating sites, recorded $274.2 million in revenue and operating income of $84.3 million; and eCommerce contributed $130 million in revenue while showing $7.7 million in operating income.
Media's operating loss, meanwhile, was $8.3 million, a slight improvement over the $8.7 million operating loss the segment recorded in the same quarter a year earlier.
IAC is in the process of spinning off its Match Group Inc. as a separate company, and on Monday IAC said its initial public offering for the new company should happen by year's end.
Also on Monday, CEO Joey Levin said IAC has extended a deal with Google for sponsored listings and other online search services. IAC has used Google for 14 years so far — a relationship that has generated $10 billion in revenue for IAC — and the new agreement will keep the partnership going through March 2020.
Levin also boasted Monday that in September Vimeo was fourth in ComScore's rankings of U.S. video sites, behind Google (which owns YouTube), Facebook and Yahoo. It's the first time Vimeo ranked that high.
"While in aggregate, the net revenue from VOD buyers for Vimeo is still early, we are proving the global marketplace as more creators upload and sell quality, ad-free content directly to paying viewers through our open platform," Levin said Monday.