SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 June 30, 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. The Company ceased reselling online advertising space during the first quarter of 2020.



	Three Months Ended June 30, 2020
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	74,123	$	37,118	$	72,919	$	166	$	184,326
Segment marketing expense	35,397		17,716		42,797		85		95,995
Segment profit (loss)	38,726		19,402		30,122		81		88,331
Cost of revenue									13,464
Brand and other marketing expense									17,926
General and administrative expense									28,489
Product development									10,812
Depreciation									3,550
Amortization of intangibles									13,756
Change in fair value of contingent consideration									9,175
Severance									32
Litigation settlements and contingencies									(1,325		)
Operating loss									(7,548		)
Interest expense, net									(4,955		)
Other income									7
Loss before income taxes and discontinued operations									$	(12,496	)



	Three Months Ended June 30, 2019
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	71,756	$	128,963	$	71,941	$	5,761	$	278,421
Segment cost of revenue and marketing expense	47,546		78,192		43,135		5,416		174,289
Segment profit	24,210		50,771		28,806		345		104,132
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									11,257
Brand and other marketing expense									22,393
General and administrative expense									27,951
Product development									10,175
Depreciation									2,559
Amortization of intangibles									14,280
Change in fair value of contingent consideration									2,790
Severance									403
Litigation settlements and contingencies									8
Operating income									12,316
Interest expense, net									(5,095		)
Other income									71
Income before income taxes and discontinued operations									$	7,292



	Six Months Ended June 30, 2020
	Home		Consumer		Insurance		Other			Total
	(in thousands)
Revenue	$	153,297	$	157,042	$	155,656	$	1,415		$	467,410
Segment cost of revenue and marketing expense	78,660		94,541		95,001		1,662			269,864
Segment profit (loss)	74,637		62,501		60,655		(247		)	197,546
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)										26,630
Brand and other marketing expense										40,681
General and administrative expense										60,571
Product development										21,775
Depreciation										6,928
Amortization of intangibles										27,513
Change in fair value of contingent consideration										1,053
Severance										190
Litigation settlements and contingencies										(996		)
Operating income										13,201
Interest expense, net										(9,789		)
Other income										7
Income before income taxes and discontinued operations										$	3,419



	Six Months Ended June 30, 2019
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	135,193	$	249,692	$	139,033	$	16,893	$	540,811
Segment cost of revenue and marketing expense	87,062		144,947		82,363		15,789		330,161
Segment profit	48,131		104,745		56,670		1,104		210,650
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									21,591
Brand and other marketing expense									48,748
General and administrative expense									59,068
Product development									20,341
Depreciation									5,041
Amortization of intangibles									27,707
Change in fair value of contingent consideration									17,382
Severance									457
Litigation settlements and contingencies									(199		)
Operating income									10,514
Interest expense, net									(10,563		)
Other income									139
Income before income taxes and discontinued operations									$	90