SEGMENT INFORMATION

9 Months Ended

Sep. 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 September 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 September 30, 2020
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	78,859	$	48,377	$	92,500	$	515	$	220,251
Segment marketing expense	53,693		26,730		55,457		513		136,393
Segment profit	25,166		21,647		37,043		2		83,858
Cost of revenue									13,220
Brand and other marketing expense									18,277
General and administrative expense									33,705
Product development									11,477
Depreciation									3,535
Amortization of intangibles									13,090
Change in fair value of contingent consideration									6,658
Litigation settlements and contingencies									13
Operating loss									(16,117		)
Interest expense, net									(16,617		)
Loss before income taxes and discontinued operations									$	(32,734	)



	Three Months Ended September 30, 2019
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	77,265	$	151,929	$	74,849	$	6,562	$	310,605
Segment cost of revenue and marketing expense	49,173		86,760		44,846		6,178		186,957
Segment profit	28,092		65,169		30,003		384		123,648
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									11,862
Brand and other marketing expense									19,670
General and administrative expense									30,323
Product development									10,200
Depreciation									2,696
Amortization of intangibles									13,778
Change in fair value of contingent consideration									3,839
Severance									179
Litigation settlements and contingencies									(92		)
Operating income									31,193
Interest expense, net									(4,845		)
Other income									4
Income before income taxes and discontinued operations									$	26,352



	Nine Months Ended September 30, 2020
	Home		Consumer		Insurance		Other			Total
	(in thousands)
Revenue	$	232,156	$	205,419	$	248,156	$	1,930		$	687,661
Segment cost of revenue and marketing expense	132,353		121,271		150,458		2,175			406,257
Segment profit (loss)	99,803		84,148		97,698		(245		)	281,404
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)										39,850
Brand and other marketing expense										58,958
General and administrative expense										94,276
Product development										33,252
Depreciation										10,463
Amortization of intangibles										40,603
Change in fair value of contingent consideration										7,711
Severance										190
Litigation settlements and contingencies										(983		)
Operating loss										(2,916		)
Interest expense, net										(26,406		)
Other income										7
Loss before income taxes and discontinued operations										$	(29,315	)



	Nine Months Ended September 30, 2019
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	212,458	$	401,621	$	213,882	$	23,455	$	851,416
Segment cost of revenue and marketing expense	136,235		231,707		127,209		21,967		517,118
Segment profit	76,223		169,914		86,673		1,488		334,298
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									33,453
Brand and other marketing expense									68,418
General and administrative expense									89,391
Product development									30,541
Depreciation									7,737
Amortization of intangibles									41,485
Change in fair value of contingent consideration									21,221
Severance									636
Litigation settlements and contingencies									(291		)
Operating income									41,707
Interest expense, net									(15,408		)
Other income									143
Income before income taxes and discontinued operations									$	26,442