IAC stock falls after third-quarter earnings
Shares of IAC/InterActiveCorp. were down 1.9% in after-hours trading after the company beat third-quarter revenue expectations and announced plans to report additional product segments going forward. The company reported net income of $145.8 million, or $1.49 a share, down from $179.6 million, or $1.79 a share, a year earlier. The company attributed the drop in net income to a tax benefit that IAC received in the year-ago period. Revenue increased to $1.1 billion from $828.4 million a year earlier, whereas analysts surveyed by FactSet were expecting $1.07 billion. The company also said that it would begin breaking out results for its video-streaming platform Vimeo and publishing business DotDash starting next quarter. Vimeo saw accelerating revenue growth in the latest quarter, Chief Financial Officer Glenn Schiffman told MarketWatch, and its subscriber base grew 10% in the quarter. Schiffman said that the company sees "some real blue ocean out there" particularly in attracting businesses that are focused on video content. He also said that the company, which owns the majority of Match Group Inc. shares, has "no one thing or single use" in mind for a $2 special dividend that Match announced Tuesday. The company expects that the forthcoming breakout of Vimeo and DotDash revenue will "simplify the story to show strong performance throughout the entire portfolio," according to Schiffman. IAC shares have gained 44% over the past 12 months, while the S&P 500 has risen 8.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.