SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company has one reportable segment, its lending operating segment. Its additional operating segments—auto, education and home services—are included in the "Other" category in the reconciliation of segment information below.

The expenses presented below for the lending segment and the operating segments shown in the Other category include allocations of certain corporate expenses that are identifiable and directly benefit those segments. The unallocated expenses included in the "Corporate" category are those corporate overhead expenses that are not directly attributable to an operating segment and include: finance, legal, executive technology support and human resources.

Adjusted EBITDA, a non-GAAP measure, is the primary metric by which the chief operating decision maker evaluates the performance of the Company's businesses, on which its 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 and severance expenses, (5) litigation settlements and contingencies and legal fees for certain patent litigation, (6) adjustments for significant acquisitions or dispositions, and (7) one-time items. For the periods presented in this report, there are no adjustments for one-time items, except for a $0.9 million related to a discretionary cash bonus payment to employee stock option holders during the three months ended March 31, 2013.

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):

	Three Months Ended March 31, 2014
	Lending		Other			Corporate			Total
Revenue	$	36,928	$	3,108		$	—		$	40,036
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	1,545		120			—			1,665
Selling and marketing expense	25,619		1,830			—			27,449
General and administrative expense	1,246		782			4,105			6,133
Product development	1,623		309			—			1,932
Depreciation	363		293			99			755
Amortization of intangibles	—		28			—			28
Restructuring and severance	148		15			39			202
Litigation settlements and contingencies	—		—			7,707			7,707
Total costs and expenses	30,544		3,377			11,950			45,871
Operating income (loss)	6,384		(269		)	(11,950		)	(5,835		)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		28			—			28
Depreciation	363		293			99			755
Restructuring and severance	148		15			39			202
Loss on disposal of assets	—		8			—			8
Non-cash compensation	599		265			752			1,616
Litigation settlements and contingencies	—		—			7,707			7,707
Adjusted EBITDA	$	7,494	$	340		$	(3,353	)	$	4,481
Operating loss									$	(5,835	)
Interest expense									—
Loss before income taxes									$	(5,835	)

	Three Months Ended March 31, 2013 (a)
	Lending		Other			Corporate			Total
Revenue	$	25,673	$	2,407		$	—		$	28,080
Costs and expenses:
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)	7,055		(1,087		)	(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	$	7,842	$	(485	)	$	(3,271	)	$	4,086
Operating loss									$	(246	)
Interest expense									(7		)
Loss before income taxes									$	(253	)

(a) For comparative purposes, revenue from and expenses related to personal loan offerings have been recast from the "Other" category to the lending segment.