People Incorporated (PPLI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 16% year-over-year to $938.7 million, but operating income improved to $16.3 million and Adjusted EBITDA rose 7% to $107.4 million.

• Net loss attributable to shareholders narrowed to $243.7 million, with diluted loss per share at $2.93.

• Dotdash Meredith Digital posted 16% revenue growth, while Print revenue fell 6%.

• The company is considering a spin-off of Angi, marking the first IAC spin in four years, to create two focused companies and allow Angi to pursue its own strategy.

• Angi's business has seen improvements in customer experience, retention, and profitability, positioning it for future growth.

Financial highlights

• Dotdash Meredith revenue rose 5% year-over-year to $439.5 million, driven by 16% digital growth and offset by a 6% print decline.

• Angi revenue dropped 16% to $296.7 million, but Adjusted EBITDA rose 27% to $35.4 million.

• Search revenue fell 47% to $88.3 million, with Adjusted EBITDA down 80%.

• Digital advertising revenues grew 26% in Q3, with strong performance in entertainment and food properties.

• Licensing revenue, primarily from the OpenAI partnership, was up $4.1 million year-over-year in Q3.

Outlook and guidance

• Q4 digital revenue is guided to mid to high single-digit growth due to softer October performance and election-related headwinds.

• DDM is expected to achieve 10% digital revenue growth as a baseline for 2025, driven by both traffic and monetization improvements.

• Angi expects a revenue dip in Q1 2025 due to regulatory changes, but sequential improvement and growth resuming in 2026.

• Profitability at Angi is expected to be stable in 2025 despite revenue volatility.

• 2024 capital expenditures are expected to be 45–50% lower than 2023, mainly due to the prior year’s real estate acquisition.