SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2021

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 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 in the first quarter of 2020 is included within the Other category. The Company ceased reselling online advertising space during the first quarter of 2020.

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 in the first quarter of 2020 also includes the portion of cost of revenue attributable to costs paid for advertising re-sold to third parties.


	Three Months Ended March 31, 2021
	Home		Consumer		Insurance		Other		Total
	(in thousands)
Revenue	$	128,125	$	57,907	$	86,614	$	104	$	272,750
Segment marketing expense	89,135		33,300		53,772		196		176,403
Segment profit (loss)	38,990		24,607		32,842		(92)		96,347
Cost of revenue									13,895
Brand and other marketing expense									21,059
General and administrative expense									34,989
Product development									12,468
Depreciation									3,718
Amortization of intangibles									11,312
Change in fair value of contingent consideration									797

Litigation settlements and contingencies									16
Operating loss									(1,907)
Interest expense, net									(10,215)
Other income									40,072
Income before income taxes and discontinued operations									$	27,950


	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)

Income before income taxes and discontinued operations									$	15,915