SEGMENT INFORMATION

12 Months Ended

Dec. 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 CODM 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 December 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. The Company ceased reselling online advertising space during the first quarter of 2020.


	Year Ended December 31, 2020
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	320,992	$	253,198	$	333,765	$	2,035	$	909,990
Segment cost of revenue and marketing expense	188,869		146,308		202,623		2,717		540,517
Segment profit (loss)	132,123		106,890		131,142		(682)		369,473
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									53,408
Brand and other marketing expense									77,973
General and administrative expense									129,101
Product development									43,636
Depreciation									14,201
Amortization of intangibles									53,078
Change in fair value of contingent consideration									5,327
Severance									295
Litigation settlements and contingencies									(943)
Operating loss									(6,603)
Interest expense, net									(36,300)
Other income									376
Loss before income taxes and discontinued operations									$	(42,527)


	Year Ended December 31, 2019
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	277,935	$	515,037	$	284,792	$	28,839	$	1,106,603
Segment cost of revenue and marketing expense	174,814		301,852		170,153		27,466		674,285
Segment profit	103,121		213,185		114,639		1,373		432,318
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									45,624
Brand and other marketing expense									83,650
General and administrative expense									116,847
Product development									39,953
Depreciation									10,998
Amortization of intangibles									55,241
Change in fair value of contingent consideration									28,402
Severance									1,026
Litigation settlements and contingencies									(151)
Operating income									50,728
Interest expense, net									(20,271)
Other income									524
Income before income taxes and discontinued operations									$	30,981


	Year Ended December 31, 2018
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	319,176	$	395,615	$	31,369	$	18,705	$	764,865
Segment cost of revenue and marketing expense	214,475		207,891		20,011		17,351		459,728
Segment profit	104,701		187,724		11,358		1,354		305,137
Cost of revenue (exclusive of cost of advertising re-sold to third parties included above)									27,587
Brand and other marketing expense									49,375
General and administrative expense									101,219
Product development									26,958
Depreciation									7,385
Amortization of intangibles									23,468
Change in fair value of contingent consideration									10,788
Severance									2,352
Litigation settlements and contingencies									(186)
Operating income									56,191
Interest expense, net									(12,437)
Other expense									(10)
Income before income taxes and discontinued operations									$	43,744

The CODM does not review information on segment assets and as such, no segment asset information is reported herein.