People Partners With Meta To Bring Real-Time Lifestyle Content To Meta AI

Let’s dig into the relative performance of IAC and its peers as we unravel the now-completed Q3 digital media & content platforms earnings season.

AI-driven content creation, personalized media experiences, and digital advertising are evolving, which could benefit companies investing in these themes. For example, companies with a portfolio of licensed visual content or platforms facilitating direct monetization models could see increased demand for years. On the other hand, headwinds include growing regulatory scrutiny on AI-generated content, with many publishers balking at anything that gets no human oversight. Additional areas to navigate include the phasing out of third-party cookies, which could make traditional ways of tracking the online behavior of consumers (a secret sauce in digital marketing) much less effective.

The 6 digital media & content platforms stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1.3% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.9% since the latest earnings results.

IAC

Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.

IAC reported revenues of $589.8 million, down 8.1% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

IAC delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 6.1% since reporting and currently trades at $34.56.

Read our full report on IAC here, it’s free for active Edge members.

Best Q3: Getty Images

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Getty Images reported revenues of $240 million, flat year on year, in line with analysts’ expectations. The business had a very strong quarter with a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9% since reporting. It currently trades at $1.57.

Is now the time to buy Getty Images? Access our full analysis of the earnings results here, it’s free for active Edge members.

Rumble

Founded in 2013 as a champion for content creator rights and free expression, Rumble is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.

Rumble reported revenues of $24.76 million, down 1.2% year on year, falling short of analysts’ expectations by 7.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and EPS in line with analysts’ estimates.

Rumble delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 14.3% since the results and currently trades at $6.73.

Read our full analysis of Rumble’s results here.

Stride

Formerly known as K12, Stride is an education technology company providing education solutions through digital platforms.

Stride reported revenues of $620.9 million, up 12.7% year on year. This result beat analysts’ expectations by 0.7%. Taking a step back, it was a slower quarter as it recorded full-year revenue guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.

Stride pulled off the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update among its peers. The stock is down 58.6% since reporting and currently trades at $63.50.

Read our full, actionable report on Stride here, it’s free for active Edge members.

WEBTOON

Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.

WEBTOON reported revenues of $378 million, up 8.7% year on year. This print lagged analysts' expectations by 1.1%. Overall, it was a slower quarter as it also recorded revenue guidance for next quarter missing analysts’ expectations significantly and a slight miss of analysts’ revenue estimates.

The stock is down 19.3% since reporting and currently trades at $13.58.

Read our full, actionable report on WEBTOON here, it’s free for active Edge members.