IAC/People details how they offset a decline in core sessions by monetizing quality content, packaging ads, and expanding non-session revenue through AI licensing and content partnerships, including deals with Netflix and Apple News. They emphasize efficiency gains from AI and headcount optimization and outline a multi-quarter pipeline of events and offerings to support growth into 2027.
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What actions are you taking to mitigate core session declines and how is the licensing pipeline evolving, including AI partnerships and content partnerships?
Management explicitly links the reported performance to declining “core sessions,” but argues results would be even better absent the volume decline. They say sessions would be “better but for” declining sessions, while they are positioning to monetize remaining audience value through monetization and sales execution 1.
On the ad monetization mechanics, they explain that a session leads to ad impressions being monetized in programmatic markets—so losing sessions reduces volume—but they offset this by “packaging” session-based and non-session-based ad assets and campaigns at “growing rates” 2.
They also describe a “flight to quality” dynamic: as quality content supply decreases, quality commands a premium; in their view, “our rates are up significantly” even while sessions are down, driven by content quality and performance 2. They emphasize there are “no tricks” like overloading pages with ads—describing the driver as pricing/quality rather than aggressive ad density 3.
They are actively preparing for the sessions reality “for a couple of years,” and management frames this as part of “new growth initiatives” that are “year plus” (about 1.5 years in formulation) and now moving toward monetization 1.
They state that the quarter’s results were led by non-session revenue initiatives while holding the line on session-based revenue streams 4. The “formula” they describe is: (1) “grow the non-session base” and (2) “continue to hold the line on the session-based revenue drivers” 4.
They also quantify the business mix and the goal: non-session-based revenue is about “40% of the business” and is growing nicely, while sessions-based is “a little less than 60%” they are maintaining; management targets getting above 10% total company growth via layering new growth vectors 5.
Even with “22% declines in core sessions,” they report “session based revenue was down only 1% in the quarter,” attributing the resilience to “iconic brands,” a “best-in-class sales team,” “ad tech stack,” and “ad performance” driving direct sold and programmatic rate growth 6.
They also point to a near-term growth dynamic: non-sessions-based revenue grew “at 16%” while sessions-based were “nearly flat,” describing this as a “growth dynamic for the foreseeable future” 7.
To support these initiatives without sacrificing profitability, they report shifting resources to new initiatives while delivering profitability: digital adjusted EBITDA grew “18%” and margins expanded to “26% versus 23% last year” 7.
They cite two efficiency drivers:
Management describes “a host of new initiatives” launching in the next quarter(s), including “inversion projects,” with a “steady stream of new offerings over the coming quarters” expected to contribute to growth in 2027 and beyond 6.
As examples tied to revenue drivers (including audience and brand monetization outside core sessions), they highlight:
They define licensing in their business as three components 8:
Management says they are seeing “real momentum” in AI licensing 8. Their rationale is that AI model builders need “power,” “engineers,” and “inputs,” and “increasingly… they need our inputs” as AI becomes more real-time 8.
They argue IAC/People’s content is unusually valuable for commercial topics, stating they “can’t think of any publisher that makes more high-quality content on the commercial topics that we cover than we do,” and that the value is reflected in deal activity and interest 8.
They distinguish between two types of AI deals:
They add that while they have “nothing new to tell” at the moment, there is “a lot of action around this” and they are “very optimistic” about broader recognition of their content value 8.
They explain why “people are understanding the value of our content” by pointing to their ability to restrict content access using Cloudflare blocking, requiring payment when usage is restricted 9.
They contrast this with not-yet-paying traffic sources (they mention “Google later”), indicating that where payment is required, partners “seem” to come “to the table” 9.
Licensing is cited as a key non-session revenue driver:
Beyond AI licensing, management references content distribution and partnerships such as:
Management’s core thesis is that declining “core sessions” don’t automatically destroy the earnings profile because:
In other words, the licensing pipeline evolution—especially AI licensing momentum with OpenAI/Meta/Microsoft and content licensing like Netflix—functions as a compensating revenue stream as they manage through core session declines 874.
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