Second thing is having excess cash and generating incremental cash. We feel very good about where we are there. We — obviously, a prerequisite, which you highlighted already, is having an attractive valuation and believing we’ll get a good return on capital. And I think that, that box is certainly checked. It’s also, of course, making sure we have no restrictions on our ability to buy back shares, which happens periodically.
And then the — maybe harder one is the opportunity cost to our cash, which is, we’re always evaluating a lot of things. We’re evaluating new M&A for our businesses, new M&A outside of our businesses. I think the good news right now is, we have the ability to afford both and that is, to weave in your next question, a combination of the cash on our balance sheet, the incremental cash we’re generating. And we do have a very, very valuable, important stake in MGM. We have no intention of getting out of that stake. But that is — that — if you want to think about our overall liquidity and sources of liquidity that is a liquid public currency.
And so that contributes to the overall liquidity picture of IAC. Again, that doesn’t imply anything. We’re very happy with MGM, how MGM is doing and the fact that we now own over 20% of MGM, thanks to MGM being very aggressive on stock buybacks, buying back more than 1/3 of the company.
So there’s a lot that goes in there but the short answer to your question, Jason, is yes, that’s considering buybacks as the antidote to what I raised and what you highlighted is absolutely on the table.
Operator: The next question comes from Justin Patterson with KeyBanc.
Justin Patterson: Actually wanted to build off of Jason’s last question. Joey, now that you’re full-time IAC CEO and no longer wearing 2 CEO hats, would love to hear about just how you’re thinking about the evolution of IAC here. I know in the past, you talked about looking at marketplaces as your preference for M&A. We’ve obviously seen a lot of changes within the Internet landscape with GenAI. So would love to hear more about just how you’re spending your time these days and how you’re thinking about the future of IAC.
Joseph Levin: Yes. Thanks, Justin. It’s a really important question. So certainly, on the spending time part of your question, very much on capital allocation, both in our existing opportunities and new opportunities. And AI is an area where we continue to try to learn and find opportunities. I think that’s probably less likely from an M&A perspective. I think that while there are plenty of opportunities out there, I think that the sort of pure-play AI things are currently priced to perfection, which is a hard place to deploy capital.
But many businesses, including our own, as you just saw with Dotdash Meredith, are in a position to benefit from AI. And that’s certainly a factor as we think about new opportunities for IAC. I wouldn’t pick a particular sector right now. We’re learning and considering in a lot of different areas and we are opportunistic. We have historically done well with and like marketplace businesses. We understand those businesses but I wouldn’t put that as a limiter on the things that we consider.
Another area that’s done very well for us historically is the travel and leisure segment, which we’ve talked about a bunch previously and which has sort of done — outperformed other parts of the consumer wallet share for a very long time and we expect to continue benefiting from a lot of the technology trends that you see in the world. So that is an area — that has been an area of some focus.
But we’re looking pretty broadly. And I think that the priority for us in terms of M&A is certainly internal opportunities first, meaning more of what we already own, add-ons to those businesses where we can find synergies or have a unique angle on something and then new M&A. But I do expect, at some point, we will add another leg to the stool, so to speak, on new opportunities and we’re actively looking for those right now.
Operator: The next question comes from Eric Sheridan with Goldman Sachs.
Eric Sheridan: Thanks for the question and all the details. Also, I’ll echo, welcome back to Jeff into the new operating role as CEO of Angi. Maybe I’ll follow up on Dotdash Meredith. When you think about coming out of the advertising environment of last year and sort of building some momentum in the advertising environment this year, how should we be thinking about the conversion of revenue into EBITDA and the cadence of that between now and the end of the year, measured against the potential volatility up or down on revenue against things that you believe you need to invest in to make sure Dotdash Meredith, especially on the Digital side is set up for success on the longer term?
Christopher Halpin: Thanks, Eric. So a few things on that front. First, last quarter, just to re-anchor folks, when we provided the full year guidance of $280 million to $300 million of adjusted EBITDA for 2024, we said we expect essentially all of the consolidated EBITDA to come from Digital. Print EBITDA and corporate expense should roughly offset each other this year, with corporate expense pretty consistent in each quarter, around $10 million. As we expected, Print started off the year at a low profit level, $2.9 million, due to seasonality and secular revenue declines. We expect Q2 Print EBITDA to be $9 million to $11 million and then about $13 million to $15 million a quarter in the third and fourth quarters.
Turning to Digital. We like seeing the profit scale this past quarter with adjusted EBITDA for Digital growing nearly 50% and increasing adjusted EBITDA margins. Looking forward on the revenue side, we continue to feel good about 10% plus revenue growth each quarter this year. And again, that’s a combination, traffic growth, improved monetization for both advertising and performance marketing and licensing growth.
On the cost side, we’re making specific targeted investments in strategic areas. Those are clearly content that we know will perform, D/Cipher and growing the capabilities of that strategic product, and performance marketing. And we talked about our initiative to reposition performance marketing growth — for growth and particularly in the context of services.
And we think those investments will build on our strengths and position us to grow for years. The impact of those investments will be most felt in Q2. We’re forecasting incremental adjusted EBITDA margins of 30% year-over-year in Q2. And then that will be followed by 50% plus incremental margins for the third and fourth quarter as we would expect in the ordinary course. The result is, EBITDA growth each quarter and improving margins and the first half, second half weighting for the year, which is very comparable to the 1/3, 2/3 on adjusted EBITDA that we saw last year.
Operator: The next question comes from Brian Fitzgerald with Wells Fargo.
