IAC (NASDAQ:IACI) swung to a fourth-quarter profit over a year ago loss on Wednesday, helped by continued growth in its search segments, and gaining market share in the online dating, matching industry.
The internet company, which operates websites such as Match.com, Chemistry.com, Ask.com and Citysearch, posted net income of $87 million, or 90 cents a share, compared with a loss of $1 billion, or $7.94 a share, in the same quarter last year.
Excluding onetime items, the company booked earnings of 26 cents a share, narrowly missing average analyst estimates polled by Thomson Reuters of 34 cents.
Revenue for the New York-based company was $451.4 million, up 27% from $355.7 million a year ago, beating the Street’s view of $429.71 million.
Sales were led by double digit growth in its search, match and other media segments, up 29%, 30% and 29%, respectively, further helped by 8% growth in its ServiceMagic unit.
Search sales, the company’s largest segment by revenue, climbed on stronger revenue per query and queries from distributed and proprietary toolbars.
Adding to IAC’s match segment in future quarters will be OkCupid, which the company said Wednesday will be added to the unit by $50 million in cash, plus potential future payments contingent upon performance.
Greg Blatt, IAC’s chief executive, said both OkCupid and Match booked record growth in 2010. Coordinating the adjacent business models, he said, will help fuel continued growth.