Vimeo drives IAC to an earnings beat ahead of planned spinoff

IAC/InterActiveCorp. topped quarterly earnings expectations Thursday, with its Vimeo business posting accelerating revenue growth amid continued demand for video software during the pandemic. IAC IAC, -0.91% generated first-quarter net income of $329.1 million, or $3.46 a share, whereas it posted a loss of $328.2 million, or $3.86 a share, a year earlier, when it took an impairment charge on its applications business. Analysts tracked by FactSet were modeling a 61-cent GAAP loss per share for the quarter. Revenue for IAC rose to $876 million from $684 million, while analysts surveyed by FactSet were expecting $852 million. Some of the fastest growth for IAC’s portfolio of websites and software tools came from Vimeo, which is expected to separate from IAC later this month pending approval from IAC shareholders. Vimeo, which posted its own results Wednesday afternoon, saw revenue rise 57% to $89.4 million, serving as “the star of the show,” IAC Chief Financial Officer Glenn Schiffman told MarketWatch. IAC shareholders are set to vote on Vimeo’s spinoff May 14, and if approved, Vimeo is expected to trade on the Nasdaq under the ticker VMEO starting May 25, after trading on a when-issued basis from May 18 to May 24. Schiffman said…
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