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SEGMENT INFORMATION

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Revenue:
North America	$	372,226	$	339,144	$	1,053,775	$	945,538
Europe	17,687		18,214		54,849		59,159
Total	$	389,913	$	357,358	$	1,108,624	$	1,004,697

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,
	2020		2019		2020		2019
	(In thousands)
North America
Marketplace:
Consumer connection revenue(a)	$	287,568	$	252,552	$	800,047	$	695,370
Service professional membership subscription revenue	12,195		15,995		38,989		48,697
Other revenue	6,944		4,915		19,620		11,186
Total Marketplace revenue	306,707		273,462		858,656		755,253
Advertising and other revenue(b)	65,519		65,682		195,119		190,285
Total North America revenue	372,226		339,144		1,053,775		945,538
Europe
Consumer connection revenue(c)	14,006		14,125		43,640		46,480
Service professional membership subscription revenue	3,278		3,465		9,792		10,820
Advertising and other revenue	403		624		1,417		1,859
Total Europe revenue	17,687		18,214		54,849		59,159
Total revenue	$	389,913	$	357,358	$	1,108,624	$	1,004,697

________________________

(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.

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,
	2020		2019		2020		2019
	(In thousands)
Revenue:
United States	$	368,082	$	335,230	$	1,041,903	$	934,409
All other countries	21,831		22,128		66,721		70,288
Total	$	389,913	$	357,358	$	1,108,624	$	1,004,697


	September 30, 2020		December 31, 2019
	(In thousands)
Long-lived assets (excluding goodwill, intangible assets and ROU assets):
United States	$	94,341	$	95,822
All other countries	9,982		7,539
Total	$	104,323	$	103,361

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Operating income (loss):
North America	$	295	$	27,194	$	8,377	$	40,409
Europe	(3,314)		(2,468)		(10,048)		(7,921)
Total	$	(3,019)	$	24,726	$	(1,671)	$	32,488


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Adjusted EBITDA(d):
North America	$	40,454	$	60,509	$	136,886	$	151,804
Europe	$	(1,967)	$	(1,586)	$	(6,066)	$	(4,270)

________________________

(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) for the Company’s reportable segments and net earnings attributable to ANGI Homeservices Inc. shareholders to Adjusted EBITDA:


	Three Months Ended September 30, 2020
	Operating Income (Loss)		Stock-based Compensation Expense		Depreciation		Amortization of Intangibles		Adjusted EBITDA
	(In thousands)
North America	$	295	$	14,599	$	12,767	$	12,793	$	40,454
Europe	(3,314)		$	98	$	1,154	$	95	$	(1,967)
Operating loss	(3,019)
Interest expense	(3,699)
Other income, net	223
Loss before income taxes	(6,495)
Income tax benefit	11,698
Net earnings	5,203
Net earnings attributable to noncontrolling interests	(731)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	4,472


	Three Months Ended September 30, 2019
	Operating Income (Loss)		Stock-based Compensation Expense		Depreciation		Amortization of Intangibles		Adjusted EBITDA
	(In thousands)
North America	$	27,194	$	8,648	$	10,690	$	13,977	$	60,509
Europe	(2,468)		$	136	$	554	$	192	$	(1,586)
Operating income	24,726
Interest expense	(3,007)
Other income, net	1,505
Earnings before income taxes	23,224
Income tax provision	(4,900)
Net earnings	18,324
Net earnings attributable to noncontrolling interests	(325)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	17,999


	Nine Months Ended September 30, 2020
	Operating Income (loss)		Stock-based Compensation Expense		Depreciation		Amortization of Intangibles		Adjusted EBITDA
	(In thousands)
North America	$	8,377	$	54,406	$	35,531	$	38,572	$	136,886
Europe	(10,048)		$	625	$	3,083	$	274	$	(6,066)
Operating loss	(1,671)
Interest expense	(7,593)
Other income, net	856
Loss before income taxes	(8,408)
Income tax benefit	17,638
Net earnings	9,230
Net earnings attributable to noncontrolling interests	(1,049)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	8,181


	Nine Months Ended September 30, 2019
	Operating Income (Loss)		Stock-based Compensation Expense		Depreciation		Amortization of Intangibles		Adjusted EBITDA
	(In thousands)
North America	$	40,409	$	45,107	$	25,124	$	41,164	$	151,804
Europe	(7,921)		$	479	$	1,915	$	1,257	$	(4,270)
Operating income	32,488
Interest expense	(8,964)
Other income, net	4,823
Earnings before income taxes	28,347
Income tax benefit	7,062
Net earnings	35,409
Net earnings attributable to noncontrolling interests	(473)
Net earnings attributable to ANGI Homeservices Inc. shareholders	$	34,936

- 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