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BUSINESS COMBINATIONS
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS
Angie's List Combination
Through the Combination, the Company acquired 100% of the common stock of Angie's List on September 29, 2017 for a total purchase price valued at $781.4 million.
HomeStars Acquisition
The Company acquired a 90% voting interest in HomeStars on February 8, 2017. The purchase price was $16.6 CAD million (or $12.7 million) in cash. In connection with the acquisition, the Company measured and recorded the acquisition date fair value of the 10% noncontrolling interest in HomeStars, which totaled $1.9 CAD million (or $1.4 million).
MyBuilder Acquisition
The Company acquired a 75% voting interest in MyBuilder Limited on March 24, 2017. The purchase price was £32.6 million (or $40.7 million) in cash. In connection with the acquisition, the Company measured and recorded the acquisition date fair value of the 25% noncontrolling interest in MyBuilder, which totaled £10.7 million (or $13.3 million).
MyHammer Acquisition
On November 3, 2016, the Company acquired a 70% voting interest in MyHammer. The purchase price was €17.7 million (or $19.7 million) in cash. In connection with the acquisition, the Company measured and recorded the acquisition date fair value of the 30% noncontrolling interest in MyHammer, which totaled €9.4 million (or $10.4 million). At June 30, 2018, the Company's ownership stake in MyHammer is approximately 83%.
Unaudited pro forma financial information
The unaudited pro forma financial information in the table below presents the combined results of the Company and Angie's List, HomeStars, MyBuilder and MyHammer as if these acquisitions had occurred on January 1, 2016. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the acquisitions actually occurred on January 1, 2016. For the three and six months ended June 30, 2017, pro forma adjustments include increases in stock-based compensation expense of $11.6 million and $26.3 million, respectively, and amortization of intangibles of $10.9 million and $23.2 million, respectively.
 
Three Months Ended June 30, 2017
 
Six Months Ended June 30, 2017
 
(In thousands, except per share data)
Revenue
$
253,222

 
$
479,920

Net (loss) earnings attributable to ANGI Homeservices Inc. shareholders
$
(9,454
)
 
$
7,066

Basic (loss) earnings per share attributable to ANGI Homeservices Inc. shareholders
$
(0.02
)
 
$
0.02

Diluted (loss) earnings per share attributable to ANGI Homeservices Inc. shareholders
$
(0.02
)
 
$
0.02

TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION
During the three and six months ended June 30, 2018, the Company incurred $0.8 million and $3.3 million, respectively, in costs related to the Combination (including severance, retention and integration related costs) as well as deferred revenue write-offs of $1.8 million and $4.6 million, respectively. The Company also incurred $16.7 million and $35.8 million, respectively, in stock-based compensation expense during the three and six months ended June 30, 2018 related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination.
A summary of the costs incurred, payments made and the related accrual is presented below.
 
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
 
 
(In thousands)
Integration related costs
 
$
819

 
$
3,323

Stock-based compensation expense
 
16,723

 
35,829

Total
 
$
17,542

 
$
39,152

 
 
Six Months Ended June 30, 2018
 
 
(In thousands)
Accrual as of January 1
 
$
8,480

Charges incurred
 
3,323

Payments made
 
(10,526
)
Accrual as of June 30
 
$
1,277

The costs are allocated as follows in the accompanying consolidated statement of operations:
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
 
Integration Related Costs
 
Stock-based Compensation Expense
 
Total
 
Integration Related Costs
 
Stock-based Compensation Expense
 
Total
 
(In thousands)
Cost of revenue
$

 
$

 
$

 
$

 
$

 
$

Selling and marketing expense

 
690

 
690

 

 
1,100

 
1,100

General and administrative expense
819

 
14,825

 
15,644

 
3,323

 
31,529

 
34,852

Product development expense

 
1,208

 
1,208

 

 
3,200

 
3,200

Total
$
819

 
$
16,723

 
$
17,542

 
$
3,323

 
$
35,829

 
$
39,152