Dotdash is IAC's fastest-growing business
Dotdash, the digital media company that houses brands like Verywell and Investopedia, is growing revenue faster than any other brand within the IAC, the publicly traded internet company that also owns Angi, The Daily Beast, and others.
Why it matters: IAC is known for growing digital brands and spinning them out once they are big enough to stand alone. Now that IAC has spun out Match Group and Vimeo, Dotdash is its fastest-growing brand in terms of revenue.
By the numbers: Like most internet companies, Dotdash saw huge advertising gains in the last quarter compared to Q2 2020, when the ad market temporarily collapsed due to COVID fears.
- In total, Dotdash's revenue increased 64% to $73.3 million. Its quarterly profit increased 150% year-over-year to $19 million.
- The company's commerce revenue is also growing, thanks to investments in new product lines tied to its home brands, like paint and storage.
- The company's audience size is comparable to other big web holding groups like Vox Media or Penske Media.
- Analysts estimate that Dotdash is worth roughly $2 billion, which makes its valuation higher than BuzzFeed's.
Catch up quick: Dotdash was created in 2017 after IAC bought and rebranded About.com from the New York Times.
- The company invested tens of millions of dollars reformatting all of About.com's content to create several new, niche brands.
- It's since acquired several new websites, like Simply Recipes, Serious Eats, Liquor.com, Treehugger, Byrdie, Brides and MyDomaine.
- It's now one of the fastest-growing and most profitable digital media holding companies.
Be smart: Dotdash is made up of sites that include evergreen service content, like tips about decorating your house or curing a cold.
- Most of its traffic referrals come from people using search engines to look for answers, tips and ideas.
- Search engine traffic is less susceptible to privacy-related ad targeting changes that other media companies are suffering from.