Reuters: IAC Revenue Falls Short as AI Impacts Search Traffic

IAC's quarterly revenue fell short of Wall Street expectations, leading to a decline in its stock price during after-hours trading, according to Reuters. The media and internet company attributed the shortfall to a continued decrease in traffic to its ad-supported search and content websites. Specifically, IAC cited Google's algorithm changes and policy updates as contributing factors. These changes resulted in a 41% revenue decrease within its search unit. Furthermore, the increasing prevalence of Google AI Overviews, which provide direct answers within search results, has reduced traffic to traditional organic search listings, negatively impacting programmatic advertising revenue. Overall, IAC reported revenue of $589.8 million, an 8% decrease year-over-year, and below the $601.6 million analysts' estimate.