Profit fall at Team Internet Group — Revenue and

Search monetization decline drives revenue lower.

Team Internet Group (AIM: TIG, OTCQX: TIGXF) noted preliminary 2024 financial results today.

The firm stated revenue fell 4% to $803 million in 2024, down from $837 million in 2023. Gross profit slid 2% to $188 million from $191 million. The firm’s adjusted EBITDA metric dropped 4% to $92 million.

Still, cash flow grew $2 million to $95 million.

Team Internet’s search business is the culprit for the drop.

Under fresh segmentation, the firm split the search business from comparison websites. Revenue from search, which includes domain parking and traffic arbitrage, fell 11% to $537 million.

The firm is facing increased traffic costs, while the revenue it earns from Google per visitor has steadily fallen, putting pressure on the business. This trend may continue as Google changes how advertising results are presented.

Breaking out the other parts of the business, comparison site revenue grew 43% to $63 million year over year. This is no modest feat given the pressure comparison sites are facing in Google’s search algorithm updates.

The Domains, Identity & Software segment, which includes domain registrars and registries, grew 7% to $203 million.

In other news, the firm is taking legal action against the founders of Shinez, which Team Internet bought for $41.8 million last year.

I was somewhat confused by the business, writing regarding Shinez’s network of sites at the time of buyout:

On a cursory review, the content seems rather thin and at risk of Google search results changes. You can read articles like “Here’s How to Get Red Lipstick to Stay on All Night” and “The Best State Parks for Nature Lovers in Pennsylvania.”

In November last year, Team Internet noted that the buyout was underperforming.