Business Segments (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020		2019
Segment Revenue:
Marketplaces	$	18,741	$	20,838
Media		14,124		13,200
Total revenue	$	32,865	$	34,038

Segment Operating Expenses:
Marketplaces(1)	$	20,533	$	22,149
Media(1)		10,380		9,591
Add:
Corporate expenses(2)		7,329		7,927
Consolidated operating expenses	$	38,242	$	39,667

Segment Operating Contribution:
Marketplaces(3)	$	(1,792)	$	(1,311)
Media(3)		3,744		3,609
Deduct:
Corporate expenses(2)		(7,329)		(7,927)
Acquisition, disposition and realignment costs(4)		—		—
Adjusted EBITDA(5)	$	(5,377)	$	(5,629)

Reconciliation to consolidated pre-tax income (loss):
Adjusted EBITDA(5)	$	(5,377)	$	(5,629)
Add (deduct):
Interest income (expense), net		(66)		118
Other (expense) income, net		10		(7)
Depreciation and amortization(6)		(2,487)		(2,716)
Stock-based compensation(7)		(2,704)		(1,921)
Acquisition, disposition, realignment and contingent payment costs(8)		—		(90)
Loss before income taxes	$	(10,624)	$	(10,245)

(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 March 31,
	2020		2019
Domestic	$	29,386	$	28,272
International		3,479		5,766
Total revenue	$	32,865	$	34,038