IAC's 2025 Q2 Earnings Call: Contradictions in AI Impact, Search Revenue, and M&A Strategy

Digital Revenue Growth and Traffic Diversification:
- People Inc. reported 9% Digital revenue growth in Q2, accelerating from 7% in Q1.
- The growth was driven by a return to core sessions growth and strategic investments in new technologies and branding, such as the rebranding to People Inc.

Google Traffic and Off-Platform Views:
- Despite a decline in Google traffic, from 52% to 28% of total traffic, the company achieved core sessions growth and increased off-platform views, with off-platform sources now contributing 36% of Digital revenue.
- This was due to proactive efforts to diversify traffic sources, including off-platform partnerships and investments in owned audiences.

Care.com Transformation:
- Care.com unveiled a new look and marketing campaign in June, with early signs of stability in core consumer metrics such as direct navigation visits and sign-ups.
- The transformation aims to optimize the product experience, improve pricing and packaging, and expand into senior and pet care sectors to unlock market potential.

MGM and BetMGM Performance:
- BetMGM reported 36% net revenue growth in Q2, with increased guidance for the full year to at least $2.7 billion of revenue and $150 million of EBITDA.
- The strong performance was attributed to MGM's diversified gaming portfolio, particularly in digital and regional markets, aligning with IAC's strategic thesis on digital gaming opportunities.