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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

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 target market.

The following table presents revenue by reportable segment:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In thousands)
Revenue:
North America	$	357,417	$	324,400	$	681,549	$	606,394
Europe	17,644		19,496		37,162		40,945
Total	$	375,061	$	343,896	$	718,711	$	647,339

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In thousands)
North America
Marketplace:
Consumer connection revenue^(a)	$	272,649	$	241,236	$	512,479	$	442,818
Service professional membership subscription revenue	13,017		16,302		26,794		32,702
Other revenue	7,507		3,753		12,676		6,271
Total Marketplace revenue	293,173		261,291		551,949		481,791
Advertising and other revenue^(b)	64,244		63,109		129,600		124,603
Total North America revenue	357,417		324,400		681,549		606,394
Europe
Consumer connection revenue^(c)	13,945		15,232		29,634		32,355
Service professional membership subscription revenue	3,215		3,613		6,514		7,355
Advertising and other revenue	484		651		1,014		1,235
Total Europe revenue	17,644		19,496		37,162		40,945
Total revenue	$	375,061	$	343,896	$	718,711	$	647,339

________________________


^(a)	Includes fees paid by service professionals for consumer matches and revenue from pre-priced jobs sourced through the HomeAdvisor and Handy platforms.


^(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 and HomeStars.


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

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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In thousands)
Revenue:
United States	$	354,000	$	320,701	$	673,821	$	599,179
All other countries	21,061		23,195		44,890		48,160
Total	$	375,061	$	343,896	$	718,711	$	647,339



	June 30, 2020		December 31, 2019
	(In thousands)
Long-lived assets (excluding goodwill, intangible assets and ROU assets):
United States	$	95,173	$	95,822
All other countries	9,088		7,539
Total	$	104,261	$	103,361

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



	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
	(In thousands)
Operating income (loss):
North America	$	16,190	$	12,473		$	8,082		$	13,215
Europe	1,454		(1,070		)	(6,734		)	(5,453		)
Total	$	17,644	$	11,403		$	1,348		$	7,762



	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
	(In thousands)
Adjusted EBITDA^(d):
North America	$	55,041	$	51,606		$	96,432		$	91,295
Europe	$	2,895	$	(174	)	$	(4,099	)	$	(2,684	)

________________________

^(d)

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 the Company's performance and that of its competitors. The above items are excluded from the Company's 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 June 30, 2020
	Operating income			Stock-based compensation expense		Depreciation		Amortization of intangibles		Adjusted EBITDA
	(In thousands)
North America	$	16,190		$	14,495	$	11,467	$	12,889	$	55,041
Europe	1,454			$	264	$	1,088	$	89	$	2,895
Operating income	17,644
Interest expense	(1,620		)
Other income, net	212
Earnings before income taxes	16,236
Income tax provision	(3,025		)
Net earnings	13,211
Net earnings attributable to noncontrolling interests	(544		)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	12,667



	Three Months Ended June 30, 2019
	Operating income (loss)			Stock-based compensation expense		Depreciation		Amortization of intangibles		Adjusted EBITDA
	(In thousands)
North America	$	12,473		$	17,387	$	8,227	$	13,519	$	51,606
Europe	(1,070		)	$	133	$	569	$	194	$	(174	)
Operating income	11,403
Interest expense	(2,963		)
Other income, net	1,047
Earnings before income taxes	9,487
Income tax provision	(2,253		)
Net earnings	7,234
Net earnings attributable to noncontrolling interests	(266		)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	6,968



	Six Months Ended June 30, 2020
	Operating income (loss)			Stock-based compensation expense		Depreciation		Amortization of intangibles		Adjusted EBITDA
	(In thousands)
North America	$	8,082		$	39,807	$	22,764	$	25,779	$	96,432
Europe	(6,734		)	$	527	$	1,929	$	179	$	(4,099	)
Operating income	1,348
Interest expense	(3,894		)
Other income, net	633
Loss before income taxes	(1,913		)
Income tax benefit	5,940
Net earnings	4,027
Net earnings attributable to noncontrolling interests	(318		)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	3,709



	Six Months Ended June 30, 2019
	Operating income (loss)			Stock-based compensation expense		Depreciation		Amortization of intangibles		Adjusted EBITDA
	(In thousands)
North America	$	13,215		$	36,459	$	14,434	$	27,187	$	91,295
Europe	(5,453		)	$	343	$	1,361	$	1,065	$	(2,684	)
Operating income	7,762
Interest expense	(5,957		)
Other income, net	3,318
Earnings before income taxes	5,123
Income tax benefit	11,962
Net earnings	17,085
Net earnings attributable to noncontrolling interests	(148		)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	16,937

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details