SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

The overall concept that the Company 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 or, in the case of the Emerging & Other reportable segment, do not meet the quantitative thresholds that require presentation as separate reportable segments.

The following table presents revenue by reportable segment:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(In thousands)
Revenue:
Match Group	$	541,493		$	443,943		$	1,504,091		$	1,272,506
ANGI Homeservices	357,358			303,116			1,004,697			853,249
Vimeo	52,145			40,304			141,439			115,432
Dotdash	40,285			30,053			111,974			90,841
Applications	126,071			153,973			402,557			429,034
Emerging & Other	129,581			133,345			374,871			398,026
Inter-segment eliminations	(59		)	(142		)	(254		)	(299		)
Total	$	1,246,874		$	1,104,592		$	3,539,375		$	3,158,789

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands)
Match Group
Direct revenue:
North America	$	268,863	$	233,643	$	758,135	$	667,163
International	262,086		197,902		714,076		564,846



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands)
Total Direct revenue	530,949		431,545		1,472,211		1,232,009
Indirect revenue (principally advertising revenue)	10,544		12,398		31,880		40,497
Total Match Group revenue	$	541,493	$	443,943	$	1,504,091	$	1,272,506

ANGI Homeservices
Marketplace:
Consumer connection revenue	$	252,552	$	195,065	$	695,370	$	531,297
Membership subscription revenue	16,237		17,034		49,239		49,226
Other revenue	1,727		950		5,360		2,869
Total Marketplace revenue	270,516		213,049		749,969		583,392
Advertising and other revenue	68,628		73,545		195,569		216,733
Total North America revenue	339,144		286,594		945,538		800,125
Consumer connection revenue	14,125		12,022		46,480		38,885
Membership subscription revenue	3,465		4,217		10,820		13,405
Advertising and other revenue	624		283		1,859		834
Total Europe revenue	18,214		16,522		59,159		53,124
Total ANGI Homeservices revenue	$	357,358	$	303,116	$	1,004,697	$	853,249

Vimeo
Platform revenue	$	52,145	$	37,245	$	139,160	$	106,470
Hardware revenue	—		3,059		2,279		8,962
Total Vimeo revenue	$	52,145	$	40,304	$	141,439	$	115,432

Dotdash
Advertising revenue	$	29,158	$	23,949	$	84,171	$	71,714
Affiliate commerce commission and other revenue	11,127		6,104		27,803		19,127
Total Dotdash revenue	$	40,285	$	30,053	$	111,974	$	90,841

Applications
Desktop:
Advertising revenue:
Google advertising revenue	$	68,076	$	110,855	$	234,211	$	326,982
Other advertising revenue	3,179		3,416		9,373		7,223
Total advertising revenue	71,255		114,271		243,584		334,205
Subscription and other revenue	3,613		4,271		12,109		16,355
Total Desktop revenue	74,868		118,542		255,693		350,560
Mosaic Group:
Subscription and other revenue	49,079		31,157		139,907		63,687
Advertising revenue	2,124		4,274		6,957		14,787
Total Mosaic Group revenue	51,203		35,431		146,864		78,474
Total Applications revenue	$	126,071	$	153,973	$	402,557	$	429,034

Emerging & Other
Advertising revenue:
Google advertising revenue	$	101,609	$	84,955	$	303,207	$	266,061
Other advertising revenue	11,955		20,918		27,231		50,986



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands)
Total advertising revenue	113,564		105,873		330,438		317,047
Other revenue	16,017		27,472		44,433		80,979
Total Emerging & Other revenue	$	129,581	$	133,345	$	374,871	$	398,026

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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands)
Revenue:
United States	$	807,188	$	738,599	$	2,293,664	$	2,104,750
All other countries	439,686		365,993		1,245,711		1,054,039
Total	$	1,246,874	$	1,104,592	$	3,539,375	$	3,158,789



	September 30, 2019		December 31, 2018
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	336,055	$	289,756
All other countries	25,609		29,044
Total	$	361,664	$	318,800

The following tables present operating income (loss) and Adjusted EBTIDA by reportable segment:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(In thousands)
Operating Income (Loss):
Match Group	$	176,604		$	139,895		$	468,330		$	402,293
ANGI Homeservices	24,726			33,515			32,488			46,021
Vimeo	(11,155		)	(6,161		)	(40,555		)	(25,502		)
Dotdash	3,695			2,416			13,752			6,946
Applications	39,099			33,041			85,422			91,579
Emerging & Other	(1,821		)	10,893			(6,130		)	23,465
Corporate	(45,296		)	(40,767		)	(133,272		)	(113,583		)
Total	$	185,852		$	172,832		$	420,035		$	431,219



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(In thousands)
Adjusted EBITDA ^(a):
Match Group	$	206,131		$	165,039		$	564,720		$	478,341
ANGI Homeservices	$	58,923		$	77,700		$	147,534		$	181,319
Vimeo	$	(7,997	)	$	(4,229	)	$	(33,661	)	$	(19,644	)
Dotdash	$	7,026		$	3,071		$	22,551		$	8,914
Applications	$	25,433		$	34,989		$	80,440		$	97,145
Emerging & Other	$	(1,529	)	$	12,235		$	(5,141	)	$	28,733
Corporate	$	(21,945	)	$	(21,478	)	$	(60,751	)	$	(54,038	)

_____________________

^(a)

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 businesses, 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 because it excludes the impact of these expenses.

The following tables reconcile operating income (loss) to Adjusted EBITDA for the Company's reportable segments:



	Three Months Ended September 30, 2019
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments			Adjusted EBITDA
	(In thousands)
Match Group	$	176,604		$	20,805	$	8,081	$	641	$	—		$	206,131
ANGI Homeservices	24,726			$	8,784	$	11,244	$	14,169	$	—		$	58,923
Vimeo	(11,155		)	$	—	$	39	$	3,119	$	—		$	(7,997	)
Dotdash	3,695			$	—	$	216	$	3,115	$	—		$	7,026
Applications	39,099			$	—	$	331	$	2,142	$	(16,139	)	$	25,433
Emerging & Other	(1,821		)	$	—	$	292	$	—	$	—		$	(1,529	)
Corporate	(45,296		)	$	20,464	$	2,887	$	—	$	—		$	(21,945	)
Operating income	185,852
Interest expense	(42,132		)
Other income, net	1,229
Earnings before income taxes	144,949
Income tax benefit	14,823
Net earnings	159,772
Net earnings attributable to noncontrolling interests	(31,228		)
Net earnings attributable to IAC shareholders	$	128,544



	Three Months Ended September 30, 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	$	139,895		$	16,141	$	8,513	$	435	$	55	$	165,039
ANGI Homeservices	33,515			$	22,474	$	6,100	$	15,611	$	—	$	77,700
Vimeo	(6,161		)	$	—	$	291	$	1,641	$	—	$	(4,229	)
Dotdash	2,416			$	—	$	246	$	409	$	—	$	3,071
Applications	33,041			$	—	$	617	$	1,331	$	—	$	34,989
Emerging & Other	10,893			$	323	$	294	$	725	$	—	$	12,235
Corporate	(40,767		)	$	16,425	$	2,864	$	—	$	—	$	(21,478	)
Operating income	172,832
Interest expense	(27,610		)
Other income, net	8,113
Earnings before income taxes	153,335
Income tax benefit	18,242
Net earnings	171,577
Net earnings attributable to noncontrolling interests	(25,803		)
Net earnings attributable to IAC shareholders	$	145,774



	Nine Months Ended September 30, 2019
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments			Adjusted EBITDA
	(In thousands)
Match Group	$	468,330		$	70,817	$	24,109	$	1,464	$	—		$	564,720
ANGI Homeservices	32,488			$	45,586	$	27,039	$	42,421	$	—		$	147,534
Vimeo	(40,555		)	$	—	$	364	$	6,530	$	—		$	(33,661	)
Dotdash	13,752			$	—	$	660	$	8,139	$	—		$	22,551
Applications	85,422			$	—	$	1,139	$	6,872	$	(12,993	)	$	80,440
Emerging & Other	(6,130		)	$	—	$	839	$	150	$	—		$	(5,141	)
Corporate	(133,272		)	$	63,519	$	9,002	$	—	$	—		$	(60,751	)
Operating income	420,035
Interest expense	(110,481		)
Other income, net	47,852
Earnings before income taxes	357,406
Income tax benefit	62,142
Net earnings	419,548
Net earnings attributable to noncontrolling interests	(88,842		)
Net earnings attributable to IAC shareholders	$	330,706



	Nine Months Ended September 30, 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	$	402,293		$	49,810	$	25,059	$	914	$	265	$	478,341
ANGI Homeservices	46,021			$	69,433	$	18,170	$	47,695	$	—	$	181,319
Vimeo	(25,502		)	$	—	$	947	$	4,911	$	—	$	(19,644	)
Dotdash	6,946			$	—	$	741	$	1,227	$	—	$	8,914
Applications	91,579			$	—	$	2,145	$	3,421	$	—	$	97,145
Emerging & Other	23,465			$	1,747	$	1,396	$	2,125	$	—	$	28,733
Corporate	(113,583		)	$	51,016	$	8,529	$	—	$	—	$	(54,038	)
Operating income	431,219
Interest expense	(81,471		)
Other income, net	174,635
Earnings before income taxes	524,383
Income tax benefit	15,887
Net earnings	540,270
Net earnings attributable to noncontrolling interests	(105,061		)
Net earnings attributable to IAC shareholders	$	435,209