SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

The Company manages its business and reports its financial results through the following three operating and reportable segments: Home, Consumer and Insurance. Characteristics which were relied upon in making the determination of the reportable segments include the nature of the products, the organization's internal structure, and the information that is regularly reviewed by the chief operating decision maker for the purpose of assessing performance and allocating resources. The Company changed its reportable segments in the fourth quarter of 2019 and previously reported segment results have been revised to conform to the Company's reportable segments at March 31, 2020.

The Home segment includes the following products: purchase mortgage, refinance mortgage, home equity loans and lines of credit, reverse mortgage loans, and real estate. The Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products such as credit repair and debt settlement. The Insurance segment consists of insurance quote products. Revenue from the resale of online advertising space to third parties and revenue from home improvement referrals, and the related variable marketing and advertising expenses, are included within the Other category.

The following tables are a reconciliation of segment profit, which is the Company's primary segment profitability measure, to income before income taxes and discontinued operations. Segment cost of revenue and marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses, that are directly attributable to the segments' products. This measure excludes overhead, fixed costs and personnel-related expenses. For the Other category, segment cost of revenue and marketing expense also includes the portion of cost of revenue attributable to costs paid for advertising re-sold to third parties.



	Three Months Ended March 31, 2020
	Home		Consumer		Insurance		Other			Total
	(in thousands)
Revenue	$	79,174	$	119,924	$	82,737	$	1,249		$	283,084
Segment cost of revenue and marketing expense	43,263		76,825		52,204		1,577			173,869
Segment profit	35,911		43,099		30,533		(328		)	109,215
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)										13,166
Brand and other marketing expense										22,755
General and administrative expense										32,082
Product development										10,963
Depreciation										3,378
Amortization of intangibles										13,757
Change in fair value of contingent consideration										(8,122		)
Severance										158
Litigation settlements and contingencies										329
Operating income										20,749
Interest expense, net										(4,834		)
Other income										—
Income before income taxes and discontinued operations										$	15,915



	Three Months Ended March 31, 2019
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	63,437	$	120,729	$	67,092	$	11,132	$	262,390
Segment cost of revenue and marketing expense	39,516		66,755		39,228		10,373		155,872
Segment profit	23,921		53,974		27,864		759		106,518
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									10,334
Brand and other marketing expense									26,355
General and administrative expense									31,117
Product development									10,166
Depreciation									2,482
Amortization of intangibles									13,427
Change in fair value of contingent consideration									14,592
Severance									54
Litigation settlements and contingencies									(207		)
Operating loss									(1,802		)
Interest expense, net									(5,468		)
Other income									68
Loss before income taxes and discontinued operations									$	(7,202	)