IAC Inc. (NASDAQ:IAC) Q4 2022 Earnings Call Transcript

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You have to figure out what this decline is. And there’s no answer but figure it out. And as long as it takes whatever it takes to figure it out, figure it out. Well low and behold, this team did incredible work and found that the there was an area where we were losing conversion, and there was a tracking pixel that was placed in somewhere that slowed down some of our pages that you pull that thing out and you’ll see a massive increase in conversion. Those are the things that we’re just digging in and finding and will yield results. I can give, that hopefully we’ll be able to give dozens of other examples of that over the course of the year. And that’s the sort of incremental work. It’s not the actually work, it’s not necessarily even the most fun stuff, although it is fun to get a win out of these things.

The people are doing all day every day. And it is basic work, but it’s work is getting done and yield real results. And again, I expect things like that, fundamental things like page feed and conversion to improve and show up over the course of the year in SEO and SEM.

Brian Fitzgerald : Thanks, Joey. Appreciate it.

Joseph Levin: Thank you. Next question.

Operator: Our next question comes from Dan Kurnos at The Benchmark Company. Please go ahead.

Dan Kurnos : Hey, thanks. Good morning. Joey, you kind of touched on a little bit just on Angi. You talked about it more in the shareholder letter. But I guess maybe if we think about your narrowed focus in services. Can you just talk a little bit more about differentiating that offering? And kind of winning in that marketplace backed by sort of the new TV brand campaign if that’s the way. Are there other creative ways to win, as you go through that more narrowed focus? And then on Dotdash, Chris, I know that the EBITDA is always a math equation that you’d like to point out. We’ve had incremental headcount reduction, we’ve had incremental synergies since the acquisition. And we know Joey called out some more cost efficiency efforts. So I guess the real question is, from a longer term perspective, you did touch on this a little bit. But is there any change to your sort of longer tailed expectations for where margins or revenue for that matter ultimately ends up?

Joseph Levin: Yeah I’ll start, and then I’ll turn it to Chris. Although I can quickly say, no, I think the answer to the second question. The first question? Yeah, it’s a great question. And there’s a few important areas in in winning in services. Obviously, everything starts with having a delightful, intuitive customer experience. One of the things that’s happening in services right now is, again, because we have this orientation around the service requests, we put our customers through the service request. And then they see our experiences after the service request. So even though we expose the services business, in a lot of areas, post service requests, the reality is that 80% of our customers or something like that, never see the services product, because it comes after the service request.

And by the way, once the service request is complete, we asked another series of questions to drive the services business. You can imagine are showing that much earlier in the process, not pushing the customers for whom it’s relevant through the service requests and sending them directly into a services experience and exposing that in the categories where we really can deliver those less complex services have lower average order value services, we can expose that actually more often and get more people to see that product and use that product. The most important thing in that area is just getting people to try it. Because again, once they try it, once they complete it, we know they’re really happy. We know they come back more often we know they use the mobile app, and the constraints on that is kind of how we’re putting it and where we’re putting it.

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