SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Segment Reporting Information

The following table presents revenue by reportable segment:



	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Revenue:
North America	$	1,062,171	$	678,897	$	461,847
Europe	70,070		57,489		37,043
Total	$	1,132,241	$	736,386	$	498,890

Schedule of Segmented Revenue Disaggregated by Service

The following table presents revenue disaggregated by service for the Company's reportable segments:



	Years Ended December 31,
	2018		2017		2016
	(In thousands)
North America
Marketplace:
Consumer connection revenue ^(a)	$	704,341	$	521,481	$	382,466
Membership subscription revenue	66,214		56,135		43,573
Other revenue	3,940		3,798		2,827
Marketplace revenue	774,495		581,414		428,866
Advertising & Other revenue ^(b)	287,676		97,483		32,981
Total North America revenue	1,062,171		678,897		461,847
Europe
Consumer connection revenue ^(a)	50,913		40,009		28,124
Membership subscription revenue	17,362		16,596		7,936
Advertising and other revenue	1,795		884		983
Total Europe revenue	70,070		57,489		37,043
Total revenue	$	1,132,241	$	736,386	$	498,890

___________________________


^(a)	Includes fees paid by HomeAdvisor service professionals for consumer matches and revenue from completed jobs sourced through the Handy platform.


^(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. Felix was sold on December 31, 2018 and its 2018 revenue was $36.9 million.

Schedule of Revenue and Long-lived Assets by Geographic Areas

Geographic information about revenue and long-lived assets is presented below:



	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Revenue:
United States	$	1,050,641	$	672,159	$	461,372
All other countries	81,600		64,227		37,518
Total	$	1,132,241	$	736,386	$	498,890

The United States is the only country whose revenue is greater than 10% of total revenue of the Company for the years ended December 31, 2018, 2017 and 2016.



	December 31,
	2018		2017
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	65,510	$	49,356
All other countries	5,349		3,936
Total	$	70,859	$	53,292

Schedule of Reconciliation of Adjusted EBITDA to Operating Income (Loss)

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



	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Operating Income (Loss):
North America	$	78,102		$	(128,483	)	$	32,464
Europe	(14,196		)	(19,388		)	(8,406		)
Total	$	63,906		$	(147,871	)	$	24,058



	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Adjusted EBITDA^(c):
North America	$	253,963		$	50,182		$	50,088
Europe	$	(6,457	)	$	(11,019	)	$	(5,542	)

___________________________

^(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 business, 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 the Company's statement of operations of certain expenses.

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:



	Year Ended December 31, 2018
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Adjusted EBITDA
	(In thousands)
North America	$	78,102		$	96,078	$	21,888	$	57,895	$	253,963
Europe	(14,196		)	$	1,000	$	2,422	$	4,317	$	(6,457	)
Operating income	63,906
Interest expense—third-party	(11,623		)
Interest expense—related party	(118		)
Other income, net	17,859
Earnings before income taxes	70,024
Income tax benefit	7,483
Net earnings	77,507
Net earnings attributable to noncontrolling interests	(189		)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	77,318



	Year Ended December 31, 2017
	Operating Loss			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Adjusted EBITDA
	(In thousands)
North America	$	(128,483	)	$	147,574	$	13,243	$	17,848	$	50,182
Europe	(19,388		)	$	1,656	$	1,300	$	5,413	$	(11,019	)
Operating loss	(147,871		)
Interest expense—third-party	(1,765		)
Interest expense—related party	(5,971		)
Other income, net	1,974
Loss before income taxes	(153,633		)
Income tax benefit	49,106
Net loss	(104,527		)
Net loss attributable to noncontrolling interests	1,409
Net loss attributable to ANGI Homeservices Inc. shareholders	$	(103,118	)



	Year Ended December 31, 2016
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Adjusted EBITDA
	(In thousands)
North America	$	32,464		$	7,126	$	7,996	$	2,502	$	50,088
Europe	(8,406		)	$	1,790	$	423	$	651	$	(5,542	)
Operating income	24,058
Interest expense—related party	(894		)
Other expense, net	(699		)
Earnings before income taxes	22,465
Income tax provision	(11,834		)
Net earnings	10,631
Net loss attributable to noncontrolling interests	2,497
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	13,128

Schedule of Reconciliation of Segment Assets to Total Assets

The following tables reconcile segment assets to total assets by reportable segment:



	December 31, 2018
	Segment assets (d)		Property and equipment, net		Goodwill		Indefinite-lived intangible assets		Definite-lived intangible assets, net		Total assets
	(In thousands)
North America	$	485,448	$	65,670	$	824,037	$	158,678	$	131,117	$	1,664,950
Europe	11,879		5,189		70,672		12,808		1,692		102,240
Total	$	497,327	$	70,859	$	894,709	$	171,486	$	132,809	$	1,767,190
Add: Deferred tax assets ^(e)											40,837
Total assets											$	1,808,027



	December 31, 2017
	Segment assets (d)		Property and equipment, net		Goodwill		Indefinite-lived intangible assets		Definite-lived intangible assets, net		Total assets
	(In thousands)
North America	$	253,582	$	49,487	$	696,291	$	140,034	$	169,054	$	1,308,448
Europe	10,868		3,805		73,935		13,413		6,070		108,091
Total	$	264,450	$	53,292	$	770,226	$	153,447	$	175,124	$	1,416,539
Add: Deferred tax assets ^(e)											50,723
Total assets											$	1,467,262

___________________________


^(d)	Consistent with the Company's primary metric (described in (c) above), the Company excludes, if applicable, property and equipment, goodwill and intangible assets from the measure of segment assets presented above.


^(e)	Total segment assets differ from total assets on a consolidated basis as a result of unallocated deferred tax assets.

Schedule of Capital Expenditures by Segment

The following table presents capital expenditures by reportable segment:



	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Capital expenditures:
North America	$	42,976	$	24,214	$	14,672
Europe	4,000		2,623		1,988
Total	$	46,976	$	26,837	$	16,660