XML 41 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Schedule of Segmented Revenue Disaggregated by Service
The following table presents revenue by reportable segment:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(In thousands)
Revenue:
 
 
 
 
 
 
 
North America
$
286,594

 
$
167,104

 
$
800,125

 
$
470,667

Europe
16,522

 
14,613

 
53,124

 
42,506

Total
$
303,116

 
$
181,717

 
$
853,249

 
$
513,173

The following table presents revenue disaggregated by service for the Company's reportable segments:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(In thousands)
North America
 
 
 
 
 
 
 
Marketplace:
 
 
 
 
 
 
 
Consumer connection revenue(a)
$
195,065

 
$
141,055

 
$
531,297

 
$
398,218

Membership subscription revenue
17,034

 
14,486

 
49,226

 
40,942

Other revenue
950

 
1,060

 
2,869

 
2,840

Marketplace revenue
213,049

 
156,601

 
583,392

 
442,000

Advertising & Other revenue(b)
73,545

 
10,503

 
216,733

 
28,667

Total North America revenue
286,594

 
167,104

 
800,125

 
470,667

Europe
 
 
 
 
 
 
 
Consumer connection revenue(a)
12,022

 
10,001

 
38,885

 
29,636

Membership subscription revenue
4,217

 
4,320

 
13,405

 
12,198

Advertising and other revenue
283

 
292

 
834

 
672

Total Europe revenue
16,522

 
14,613

 
53,124

 
42,506

Total revenue
$
303,116

 
$
181,717

 
$
853,249

 
$
513,173

___________________________
(a) 
Fees paid by service professionals for consumer matches.
(b) 
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.
Schedule of Revenue from External Customers by Geographic Areas
Geographic information about revenue and long-lived assets is presented below. Revenue by geography is based on where the customer is located.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(In thousands)
Revenue
 
 
 
 
 
 
 
United States
$
283,672

 
$
164,999

 
$
791,932

 
$
466,134

All other countries
19,444

 
16,718

 
61,317

 
47,039

Total
$
303,116

 
$
181,717

 
$
853,249

 
$
513,173
Schedule of Revenue and Long-lived Assets by Geographic Areas
 
September 30, 2018
 
December 31, 2017
 
(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
 
 
 
United States
$
53,635

 
$
49,356

All other countries
5,140

 
3,936

Total
$
58,775

 
$
53,292
Schedule of Segment Reporting Information
The following tables present operating income (loss) and Adjusted EBTIDA by reportable segment:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(In thousands)
Operating Income (Loss):
 
 
 
 
 
 
 
North America
$
36,117

 
$
(107,687
)
 
$
56,862

 
$
(99,479
)
Europe
(2,602
)
 
(4,818
)
 
(10,841
)
 
(14,474
)
Total
$
33,515

 
$
(112,505
)
 
$
46,021

 
$
(113,953
)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(In thousands)
Adjusted EBITDA(c):
 
 
 
 
 
 
 
North America
$
78,613

 
$
60

 
$
186,306

 
$
31,356

Europe
$
(913
)
 
$
(2,326
)
 
$
(4,987
)
 
$
(8,439
)
___________________________
(c) 
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 amortization of intangible assets and impairments of goodwill and intangible assets, if applicable. 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 in that it does not take into account the impact to ANGI Homeservices Inc.'s statement of operations of certain expenses.
Schedule of Reconciliation of Operating Income to Adjusted EBITDA
The following tables reconcile operating income (loss) for the Company’s reportable segments and net earnings (loss) attributable to ANGI Homeservices Inc. shareholders to Adjusted EBITDA:
 
Three Months Ended September 30, 2018
 
Operating
income
(loss)
 
Stock-based
compensation expense
 
Depreciation
 
Amortization
of intangibles
 
Adjusted
EBITDA
 
(In thousands)
North America
$
36,117

 
$
22,256

 
$
5,563

 
$
14,677

 
$
78,613

Europe
(2,602
)
 
$
218

 
$
537

 
$
934

 
$
(913
)
Operating income
33,515

 
 
 
 
 
 
 
 
Interest expense—third party
(3,132
)
 
 
 
 
 
 
 
 
Interest expense—related party
(23
)
 
 
 
 
 
 
 
 
Other income, net
1,566

 
 
 
 
 
 
 
 
Earnings before income taxes
31,926

 
 
 
 
 
 
 
 
Income tax provision
(5,140
)
 
 
 
 
 
 
 
 
Net earnings
26,786

 
 
 
 
 
 
 
 
Net earnings attributable to noncontrolling interests
(169
)
 
 
 
 
 
 
 
 
Net earnings attributable to ANGI Homeservices Inc. shareholders
$
26,617

 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
Operating
loss
 
Stock-based
compensation expense
 
Depreciation
 
Amortization
of intangibles
 
Adjusted
EBITDA
 
(In thousands)
North America
$
(107,687
)
 
$
103,565

 
$
3,085

 
$
1,097

 
$
60

Europe
(4,818
)
 
$
415

 
$
406

 
$
1,671

 
$
(2,326
)
Operating loss
(112,505
)
 
 
 
 
 
 
 
 
Interest expense—related party
(1,864
)
 
 
 
 
 
 
 
 
Other income, net
1,364

 
 
 
 
 
 
 
 
Loss before income taxes
(113,005
)
 
 
 
 
 
 
 
 
Income tax benefit
40,847

 
 
 
 
 
 
 
 
Net loss
(72,158
)
 
 
 
 
 
 
 
 
Net loss attributable to noncontrolling interests
397

 
 
 
 
 
 
 
 
Net loss attributable to ANGI Homeservices Inc. shareholders
$
(71,761
)
 
 
 
 
 
 
 
 

 
Nine Months Ended September 30, 2018
 
Operating
income
(loss)
 
Stock-based
compensation expense
 
Depreciation
 
Amortization
of intangibles
 
Adjusted
EBITDA
 
(In thousands)
North America
$
56,862

 
$
68,652

 
$
16,491

 
$
44,301

 
$
186,306

Europe
(10,841
)
 
$
781

 
$
1,679

 
$
3,394

 
$
(4,987
)
Operating income
46,021

 
 
 
 
 
 
 
 
Interest expense—third party
(8,797
)
 
 
 
 
 
 
 
 
Interest expense—related party
(102
)
 
 
 
 
 
 
 
 
Other income, net
2,975

 
 
 
 
 
 
 
 
Earnings before income taxes
40,097

 
 
 
 
 
 
 
 
Income tax benefit
598

 
 
 
 
 
 
 
 
Net earnings
40,695

 
 
 
 
 
 
 
 
Net loss attributable to noncontrolling interests
(64
)
 
 
 
 
 
 
 
 
Net earnings attributable to ANGI Homeservices Inc. shareholders
$
40,631

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Operating
loss
 
Stock-based
compensation expense
 
Depreciation
 
Amortization
of intangibles
 
Adjusted
EBITDA
 
(In thousands)
North America
$
(99,479
)
 
$
118,961

 
$
8,862

 
$
3,012

 
$
31,356

Europe
(14,474
)
 
$
1,319

 
$
843

 
$
3,873

 
$
(8,439
)
Operating loss
(113,953
)
 
 
 
 
 
 
 
 
Interest expense—related party
(5,538
)
 
 
 
 
 
 
 
 
Other income, net
2,100

 
 
 
 
 
 
 
 
Loss before income taxes
(117,391
)
 
 
 
 
 
 
 
 
Income tax benefit
71,095

 
 
 
 
 
 
 
 
Net loss
(46,296
)
 
 
 
 
 
 
 
 
Net loss attributable to noncontrolling interests
1,402

 
 
 
 
 
 
 
 
Net loss attributable to ANGI Homeservices Inc. shareholders
$
(44,894
)