SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 12—SEGMENT INFORMATION

Effective December 31, 2012, we expanded our reportable segments from one to two, consisting of mortgage and non-mortgage. The change was made as the convergence of economic similarities associated with our mortgage and non-mortgage operating segments was no longer expected. This decision was made in connection with the update of our annual budget and forecast, which occurs in the fourth quarter each year. The non-mortgage reportable segment consists of our auto, education and home services operating segments, which are not yet mature businesses and have been aggregated. Prior period results have been reclassified to conform with the change in reportable segments.

The expenses presented below for each segment include allocations of certain corporate expenses that are identifiable and directly benefit those segments. The unallocated expenses are those corporate overhead expenses that are not directly attributable to a segment and include: corporate expenses such as finance, legal, executive technology support and human resources, as well as elimination of inter-segment revenue and costs.

Adjusted EBITDA is the primary metric by which the chief operating decision maker evaluates the performance of our businesses, on which our internal budgets are based and by which management is compensated. Adjusted EBITDA is defined as operating income or loss (which excludes interest expense and taxes) adjusted to exclude amortization of intangibles and depreciation, and excluding (1) non-cash compensation expense, (2) non-cash intangible asset impairment charges, (3) gain/loss on disposal of assets, (4) restructuring expenses, (5) litigation settlements and contingencies, (6) adjustments for significant acquisitions or dispositions, and (7) one-time items.

Assets and other balance sheet information are not used by the chief operating decision maker.

Summarized information by segment and reconciliations to Adjusted EBITDA and income (loss) before income taxes is as follows (in thousands):

	For the Three Months Ended March 31, 2013:
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	25,520	$	2,560		$	—		$	28,080
Cost of revenue (exclusive of depreciation shown separately below)	1,156		173			27			1,356
Selling and marketing expense	15,160		2,095			—			17,255
General and administrative expense	978		511			5,067			6,556
Product development	950		255			—			1,205
Depreciation	374		417			94			885
Amortization of intangibles	—		43			—			43
Restructuring and severance	—		—			(2		)	(2		)
Litigation settlements and contingencies	—		—			1,028			1,028
Total costs and expenses	18,618		3,494			6,214			28,326
Operating income (loss)	6,902		(934		)	(6,214		)	(246		)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		43			—			43
Depreciation	374		417			94			885
Restructuring and severance	—		—			(2		)	(2		)
Loss on disposal of assets	—		—			25			25
Non-cash compensation	413		142			878			1,433
Discretionary cash bonus	—		—			920			920
Litigation settlements and contingencies	—		—			1,028			1,028
Adjusted EBITDA	$	7,689	$	(332	)	$	(3,271	)	$	4,086
Adjustments to reconcile to Income/loss before Taxes:
Operating income (loss)									(246		)
Interest Expense									(7		)
Income/(Loss) Before Income Taxes									$	(253	)

	For the Three Months Ended March 31, 2012:
	Mortgage			Non-Mortgage			Corporate			Total
Revenue	$	8,993		$	4,463		$	(221	)	$	13,235
Cost of revenue (exclusive of depreciation shown separately below)	699			81			16			796
Selling and marketing expense	6,996			3,666			(10		)	10,652
General and administrative expense	644			524			3,635			4,803
Product development	519			260			(5		)	774
Depreciation	392			625			207			1,224
Amortization of intangibles	—			107			—			107
Restructuring and severance	2			1			(67		)	(64		)
Litigation settlements and contingencies	—			—			222			222
Total costs and expenses	9,252			5,264			3,998			18,514
Operating income (loss)	(259		)	(801		)	(4,219		)	(5,279		)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—			107			—			107
Depreciation	392			625			207			1,224
Restructuring and severance	2			1			(67		)	(64		)
Loss on disposal of assets	26			30			4			60
Non-cash compensation	239			159			786			1,184
Litigation settlements and contingencies	—			—			222			222
Adjusted EBITDA	$	400		$	121		$	(3,067	)	$	(2,546	)
Adjustments to reconcile to Income/loss before Taxes:
Operating income (loss)										(5,279		)
Interest Expense										(121		)
Income/(Loss) Before Income Taxes										$	(5,400	)