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Business Segments (Tables)
 9 Months Ended
Sep. 30, 2019
Business Segments  
Schedule of financial performance of our operating segments and reconciliation to consolidated operating loss

 

 

The financial performance of our operating segments and reconciliation to consolidated operating loss is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 

 

Nine months ended September 30, 

 

 

 

2019

 

2018

 

2019

 

2018

 

Segment Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketplaces

 

$

23,327

 

$

24,712

 

$

63,354

 

$

65,334

 

Media

 

 

16,703

 

 

16,744

 

 

46,503

 

 

44,189

 

Total revenue

 

$

40,030

 

$

41,456

 

$

109,857

 

$

109,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Expenses:

 

 

 

    

 

 

 

 

 

 

 

 

 

Marketplaces(1)

 

$

22,512

 

$

24,386

 

$

65,194

 

$

65,498

 

Media(1)

 

 

10,039

 

 

10,185

 

 

29,585

 

 

25,636

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses(2)

 

 

7,179

 

 

6,774

 

 

22,343

 

 

20,363

 

Consolidated operating expenses

 

$

39,730

 

$

41,345

 

$

117,122

 

$

111,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution:

    

 

 

    

 

 

    

 

 

    

 

 

 

Marketplaces(3)

 

$

815

 

$

326

 

$

(1,840)

 

$

(164)

 

Media(3)

 

 

6,664

 

 

6,559

 

 

16,918

 

 

18,553

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses(2)

 

 

(7,179)

 

 

(6,774)

 

 

(22,343)

 

 

(20,363)

 

Acquisition, disposition and realignment costs(4)

 

 

 —

 

 

17

 

 

 —

 

 

241

 

Adjusted EBITDA(5)

 

$

300

 

$

128

 

$

(7,265)

 

$

(1,733)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to consolidated pre-tax income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(5)

 

$

300

 

$

128

 

$

(7,265)

 

$

(1,733)

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

39

 

 

114

 

 

217

 

 

160

 

Other (expense) income, net

 

 

(6)

 

 

(59)

 

 

 6

 

 

(92)

 

Depreciation and amortization(6)

 

 

(2,362)

 

 

(2,687)

 

 

(7,740)

 

 

(7,588)

 

Stock-based compensation(7)

 

 

(2,460)

 

 

(2,502)

 

 

(6,590)

 

 

(7,386)

 

Acquisition, disposition, realignment and contingent payment costs(8)

 

 

 —

 

 

(1,016)

 

 

(90)

 

 

(1,555)

 

Loss before income taxes

 

$

(4,489)

 

$

(6,022)

 

$

(21,462)

 

$

(18,194)

 

(1)

Segment operating expenses reflects operating expenses that are directly attributable to the operating segment, not including corporate and unallocated expenses, and also excluding the following: (a) depreciation expense; (b) amortization of intangible assets; (c) share-based compensation expense; (d) interest and other income (expense); (e) income taxes; and (f) contingent payments to certain key employees/equity holders of acquired businesses.

 

(2)

Corporate expenses include operating expenses that are not directly attributable to the operating segments, including: corporate information technology, marketing, and general and administrative support functions, and also excludes the following: (a) depreciation expense; (b) amortization of intangible assets; (c) share-based compensation expense; (d) interest and other income (expense); and (e) income taxes.

 

(3)

Segment operating contribution reflects segment revenue less segment operating expenses. Operating contribution has certain limitations in that it does not take into account the impact to the statement of operations of certain expenses and is not directly comparable to similar measures used by other companies.

 

(4)

Represents such items, when applicable, as (a) legal, accounting and other professional service fees directly attributable to acquisition, disposition or corporate realignment activities, (b) employee severance, and (c) other payments attributable to acquisition, disposition or corporate realignment activities, excluding contingent payments to certain key employees/equity holders of acquired businesses.

 

(5)

Adjusted EBITDA reflects net income (loss) excluding interest (income) expense, income tax expense (benefit), and certain other non-cash or non-recurring items impacting net income (loss) from time to time, principally comprised of depreciation and amortization, stock-based compensation, contingent payments to certain key employees/equity holders of acquired businesses and other payments attributable to acquisition, disposition or corporate realignment activities.

 

(6)

Represents depreciation expense of our long-lived tangible assets and amortization expense of our finite-lived intangible assets, including amortization expense related to our investment in media content assets, included in our GAAP results of operations.

 

(7)

Represents the expense related to stock-based awards granted to employees as included in our GAAP results of operations.

 

(8)

Represents such items, when applicable, as (a) legal, accounting and other professional service fees directly attributable to acquisition, disposition or corporate realignment activities, (b) employee severance, (c) contingent payments to certain key employees/equity holders of acquired businesses and (d) other payments attributable to acquisition, disposition or corporate realignment activities.

Summary of Revenue by Geographic Region

 

Revenue by geographic region, as determined based on the location of our customers or anticipated destination of use, is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 

 

Nine months ended September 30, 

 

 

2019

    

2018

    

2019

    

2018

Domestic

 

$

35,041

 

$

35,343

 

$

94,336

 

$

91,181

International

 

 

4,989

 

 

6,113

 

 

15,521

 

 

18,342

Total revenue

 

$

40,030

 

$

41,456

 

$

109,857

 

$

109,523