IAC Reports Revenue Drop Due to Declining Search Traffic Amidst AI Changes

Reported about 13 hours ago

IAC reported a quarterly revenue decline of 8% to $589.8 million, missing Wall Street expectations as traffic to its ad-supported search and content sites fell 41%. This downturn was attributed to changes in Google's algorithms and the increasing use of AI Overviews that reduced traditional search traffic. Despite the overall revenue drop, IAC's People unit posted a 9% increase in digital revenue, fuelled by performance marketing growth and a new AI licensing deal with Microsoft.

Source: YAHOO

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