SEGMENT INFORMATION

The overall concept that IAC employs in determining its operating segments is to present the financial information in a manner consistent with: how the chief operating decision maker views the businesses; how the businesses are organized as to segment management; and the focus of the businesses with regards to the types of services or products offered or the target market. Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which principally relate to the similarity of their economic characteristics.



	Three Months Ended March 31,
	2018			2017
	(In thousands)
Revenue:
Match Group	$	407,367		$	298,764
ANGI Homeservices	255,311			150,745
Video	66,162			50,577
Applications	131,987			158,897
Publishing	134,322			78,080
Other^(a)	—			23,980
Inter-segment eliminations	(74		)	(210		)
Total	$	995,075		$	760,833

___________________


^(a)	The 2017 results at the Other segment consists of the results of The Princeton Review prior its sale, which occurred on March 31, 2017.



	Three Months Ended March 31,
	2018			2017
	(In thousands)
Operating Income (Loss):
Match Group	$	112,233		$	58,871
ANGI Homeservices	(10,756		)	1,388
Video	(15,875		)	(15,589		)
Applications	25,461			32,768
Publishing	15,811			(5,788		)
Other	—			(5,621		)
Corporate	(36,924		)	(28,969		)
Total	$	89,950		$	37,060



	Three Months Ended March 31,
	2018			2017
	(In thousands)
Adjusted EBITDA:^(b)
Match Group	$	137,741		$	86,231
ANGI Homeservices	36,640			10,212
Video	(12,940		)	(14,732		)
Applications	26,752			34,933
Publishing	17,213			1,179
Other	—			(1,532		)
Corporate	(17,008		)	(14,315		)
Total	$	188,398		$	101,976

________________________

^(b)

The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments, and this measure is one of the primary metrics on which our internal budgets are based and by which management is compensated. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses.

The following table presents the revenue of the Company's segments disaggregated by type of service:



	Three Months Ended March 31,
	2018		2017
	(In thousands)
Match Group
Direct revenue:
North America	$	211,357	$	175,328
International	181,380		112,424
Direct revenue	392,737		287,752
Indirect revenue (principally advertising revenue)	14,630		11,012
Total Match Group revenue	$	407,367	$	298,764

ANGI Homeservices
Marketplace:
Consumer connection revenue ^(c)	$	149,060	$	116,000
Membership subscription revenue	15,627		12,752
Other revenue	921		892
Marketplace revenue	165,608		129,644
Advertising & Other revenue ^(d)	70,418		8,428
North America	236,026		138,072
Consumer connection revenue ^(c)	14,367		8,465
Membership subscription revenue	4,671		4,006
Advertising and other revenue	247		202
Europe	19,285		12,673
Total ANGI Homeservices revenue	$	255,311	$	150,745

Video
Subscription revenue	$	34,343	$	24,817
Media production and distribution revenue	20,048		20,933
Advertising and other revenue	11,771		4,827
Total Video revenue	$	66,162	$	50,577

Applications
Advertising revenue:
Google advertising revenue	$	87,431	$	105,098
Other	6,354		6,313
Advertising revenue	93,785		111,411
Subscription and other revenue	16,289		18,921
Consumer	110,074		130,332
Advertising revenue:



Google advertising revenue	21,146		27,709
Other	731		783
Advertising revenue	21,877		28,492
Other revenue	36		73
Partnerships	21,913		28,565
Total Applications revenue	$	131,987	$	158,897

Publishing
Advertising revenue:
Google advertising revenue	$	13,638	$	9,789
Other	23,947		15,866
Advertising revenue	37,585		25,655
Other revenue	1,223		345
Premium Brands	38,808		26,000
Advertising revenue:
Google advertising revenue	88,692		44,687
Other	6,613		7,205
Advertising revenue	95,305		51,892
Other revenue	209		188
Ask & Other	95,514		52,080
Total Publishing revenue	$	134,322	$	78,080

_______________________________________________________________________________


^(c)	Fees paid by service professionals for consumer matches.


^(d)	Includes Angie's List revenue from service professionals under contract for advertising and Angie's List membership subscription fees from consumers, as well as revenue from mHelpDesk, HomeStars and Felix.

Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:



	Three Months Ended March 31,
	2018		2017
	(In thousands)
Revenue:
United States	$	657,580	$	548,598
All other countries	337,495		212,235
Total	$	995,075	$	760,833



	March 31, 2018		December 31, 2017
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	272,881	$	286,541
All other countries	28,984		28,629
Total	$	301,865	$	315,170

The following tables reconcile operating income (loss) for the Company's reportable segments and net earnings attributable to IAC shareholders to Adjusted EBITDA:



	Three Months Ended March 31, 2018
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	112,233		$	16,963	$	8,147	$	242	$	156	$	137,741
ANGI Homeservices	(10,756		)	$	24,906	$	6,184	$	16,306	$	—	$	36,640
Video	(15,875		)	$	131	$	675	$	2,129	$	—	$	(12,940	)
Applications	25,461			$	—	$	755	$	536	$	—	$	26,752
Publishing	15,811			$	—	$	662	$	740	$	—	$	17,213
Other	—			$	—	$	—	$	—	$	—	$	—
Corporate	(36,924		)	$	17,082	$	2,834	$	—	$	—	$	(17,008	)
Operating income	89,950
Interest expense	(26,505		)
Other expense, net	(4,619		)
Earnings before income taxes	58,826
Income tax benefit	29,013
Net earnings	87,839
Net earnings attributable to noncontrolling interests	(16,757		)
Net earnings attributable to IAC shareholders	$	71,082



	Three Months Ended March 31, 2017
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	58,871		$	18,024	$	7,589	$	403	$	1,344	$	86,231
ANGI Homeservices	1,388			$	4,461	$	2,996	$	1,367	$	—	$	10,212
Video	(15,589		)	$	—	$	544	$	313	$	—	$	(14,732	)
Applications	32,768			$	—	$	1,011	$	606	$	548	$	34,933
Publishing	(5,788		)	$	—	$	2,019	$	4,948	$	—	$	1,179
Other	(5,621		)	$	1,729	$	836	$	1,524	$	—	$	(1,532	)
Corporate	(28,969		)	$	9,761	$	4,893	$	—	$	—	$	(14,315	)
Operating income	37,060
Interest expense	(24,792		)
Other expense, net	(7,714		)
Earnings before income taxes	4,554
Income tax benefit	23,909
Net earnings	28,463
Net earnings attributable to noncontrolling interests	(2,254		)
Net earnings attributable to IAC shareholders	$	26,209