SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2019

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 types of services or products offered or the target market. Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which

principally relate to the similarity of their economic characteristics or, in the case of the Emerging & Other reportable segment, do not meet the quantitative thresholds that require presentation as separate reportable segments.

The following table presents revenue by reportable segment:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(In thousands)
Revenue:
Match Group	$	497,973		$	421,196		$	962,598		$	828,563
ANGI Homeservices	343,896			294,822			647,339			550,133
Vimeo	45,713			39,560			89,294			75,128
Dotdash	37,728			30,757			71,689			60,788
Applications	132,937			143,074			276,486			275,061
Emerging & Other	128,542			129,796			245,290			264,681
Inter-segment eliminations	(131		)	(83		)	(195		)	(157		)
Total	$	1,186,658		$	1,059,122		$	2,292,501		$	2,054,197

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,
	2019		2018		2019		2018
	(In thousands)
Match Group
Direct revenue:
North America	$	251,499	$	222,163	$	489,272	$	433,520
International	235,801		185,564		451,990		366,944
Total Direct revenue	487,300		407,727		941,262		800,464
Indirect revenue (principally advertising revenue)	10,673		13,469		21,336		28,099
Total Match Group revenue	$	497,973	$	421,196	$	962,598	$	828,563

ANGI Homeservices
Marketplace:
Consumer connection revenue	$	241,236	$	187,172	$	442,818	$	336,232
Membership subscription revenue	16,485		16,565		33,002		32,192
Other revenue	1,807		998		3,633		1,919
Total Marketplace revenue	259,528		204,735		479,453		370,343
Advertising and other revenue	64,872		72,770		126,941		143,188
Total North America revenue	324,400		277,505		606,394		513,531
Consumer connection revenue	15,232		12,496		32,355		26,863
Membership subscription revenue	3,613		4,517		7,355		9,188
Advertising and other revenue	651		304		1,235		551
Total Europe revenue	19,496		17,317		40,945		36,602
Total ANGI Homeservices revenue	$	343,896	$	294,822	$	647,339	$	550,133

Vimeo
Platform revenue	$	45,713	$	36,293	$	87,015	$	69,225
Hardware revenue	—		3,267		2,279		5,903



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(In thousands)
Total Vimeo revenue	$	45,713	$	39,560	$	89,294	$	75,128

Dotdash
Advertising revenue	$	29,005	$	24,552	$	55,013	$	47,765
Affiliate commerce commission and other revenue	8,723		6,205		16,676		13,023
Total Dotdash revenue	$	37,728	$	30,757	$	71,689	$	60,788

Applications
Desktop:
Advertising revenue:
Google advertising revenue	$	78,085	$	107,550	$	166,135	$	216,127
Other advertising revenue	2,846		2,112		6,194		3,807
Total advertising revenue	80,931		109,662		172,329		219,934
Subscription and other revenue	3,908		4,768		8,496		12,084
Total Desktop revenue	84,839		114,430		180,825		232,018
Mosaic Group:
Subscription and other revenue	45,680		23,521		90,828		32,530
Advertising revenue	2,418		5,123		4,833		10,513
Total Mosaic Group revenue	48,098		28,644		95,661		43,043
Total Applications revenue	$	132,937	$	143,074	$	276,486	$	275,061

Emerging & Other
Advertising revenue:
Google advertising revenue	$	105,325	$	88,355	$	201,598	$	181,106
Other advertising revenue	8,299		16,799		15,276		30,068
Total advertising revenue	113,624		105,154		216,874		211,174
Other revenue	14,918		24,642		28,416		53,507
Total Emerging & Other revenue	$	128,542	$	129,796	$	245,290	$	264,681

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,
	2019		2018		2019		2018
	(In thousands)
Revenue:
United States	$	774,095	$	708,571	$	1,486,476	$	1,366,151
All other countries	412,563		350,551		806,025		688,046
Total	$	1,186,658	$	1,059,122	$	2,292,501	$	2,054,197



	June 30, 2019		December 31, 2018
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	334,439	$	289,756
All other countries	27,111		29,044
Total	$	361,550	$	318,800

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(In thousands)
Operating Income (Loss):
Match Group	$	172,898		$	150,165		$	291,726		$	262,398
ANGI Homeservices	11,403			23,262			7,762			12,506
Vimeo	(11,616		)	(9,593		)	(29,400		)	(19,341		)
Dotdash	7,010			1,339			10,057			4,530
Applications	20,967			33,077			46,323			58,538
Emerging & Other	(1,789		)	6,079			(4,309		)	12,572
Corporate	(44,563		)	(35,892		)	(87,976		)	(72,816		)
Total	$	154,310		$	168,437		$	234,183		$	258,387



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(In thousands)
Adjusted EBITDA^(a):
Match Group	$	203,522		$	175,561		$	358,589		$	313,302
ANGI Homeservices	$	51,432		$	66,979		$	88,611		$	103,619
Vimeo	$	(9,464	)	$	(7,631	)	$	(25,664	)	$	(15,415	)
Dotdash	$	8,375		$	1,994		$	15,525		$	5,843
Applications	$	25,319		$	35,404		$	55,007		$	62,156
Emerging & Other	$	(1,517	)	$	8,290		$	(3,612	)	$	16,498
Corporate	$	(18,586	)	$	(15,552	)	$	(38,806	)	$	(32,560	)

_____________________

^(a)

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 (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. 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 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, 2019
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	172,898		$	22,015	$	8,197	$	412	$	—	$	203,522
ANGI Homeservices	11,403			$	17,520	$	8,796	$	13,713	$	—	$	51,432
Vimeo	(11,616		)	$	—	$	132	$	2,020	$	—	$	(9,464	)
Dotdash	7,010			$	—	$	218	$	1,147	$	—	$	8,375
Applications	20,967			$	—	$	389	$	2,346	$	1,617	$	25,319
Emerging & Other	(1,789		)	$	—	$	272	$	—	$	—	$	(1,517	)
Corporate	(44,563		)	$	22,890	$	3,087	$	—	$	—	$	(18,586	)
Operating income	154,310
Interest expense	(37,206		)
Other income, net	45,972
Earnings before income taxes	163,076
Income tax provision	(16,285		)
Net earnings	146,791
Net earnings attributable to noncontrolling interests	(33,324		)
Net earnings attributable to IAC shareholders	$	113,467



	Three Months Ended June 30, 2018
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	150,165		$	16,706	$	8,399	$	237	$	54	$	175,561
ANGI Homeservices	23,262			$	22,053	$	5,886	$	15,778	$	—	$	66,979
Vimeo	(9,593		)	$	—	$	321	$	1,641	$	—	$	(7,631	)
Dotdash	1,339			$	—	$	246	$	409	$	—	$	1,994
Applications	33,077			$	—	$	773	$	1,554	$	—	$	35,404
Emerging & Other	6,079			$	1,293	$	349	$	569	$	—	$	8,290
Corporate	(35,892		)	$	17,509	$	2,831	$	—	$	—	$	(15,552	)
Operating income	168,437
Interest expense	(27,356		)
Other income, net	171,141
Earnings before income taxes	312,222
Income tax provision	(31,368		)
Net earnings	280,854
Net earnings attributable to noncontrolling interests	(62,501		)
Net earnings attributable to IAC shareholders	$	218,353



	Six Months Ended June 30, 2019
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	291,726		$	50,012	$	16,028	$	823	$	—	$	358,589
ANGI Homeservices	7,762			$	36,802	$	15,795	$	28,252	$	—	$	88,611
Vimeo	(29,400		)	$	—	$	325	$	3,411	$	—	$	(25,664	)
Dotdash	10,057			$	—	$	444	$	5,024	$	—	$	15,525
Applications	46,323			$	—	$	808	$	4,730	$	3,146	$	55,007
Emerging & Other	(4,309		)	$	—	$	547	$	150	$	—	$	(3,612	)
Corporate	(87,976		)	$	43,055	$	6,115	$	—	$	—	$	(38,806	)
Operating income	234,183
Interest expense	(68,349		)
Other income, net	46,623
Earnings before income taxes	212,457
Income tax benefit	47,319
Net earnings	259,776
Net earnings attributable to noncontrolling interests	(57,614		)
Net earnings attributable to IAC shareholders	$	202,162



	Six Months Ended June 30, 2018
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	262,398		$	33,669	$	16,546	$	479	$	210	$	313,302
ANGI Homeservices	12,506			$	46,959	$	12,070	$	32,084	$	—	$	103,619
Vimeo	(19,341		)	$	—	$	656	$	3,270	$	—	$	(15,415	)
Dotdash	4,530			$	—	$	495	$	818	$	—	$	5,843
Applications	58,538			$	—	$	1,528	$	2,090	$	—	$	62,156
Emerging & Other	12,572			$	1,424	$	1,102	$	1,400	$	—	$	16,498
Corporate	(72,816		)	$	34,591	$	5,665	$	—	$	—	$	(32,560	)
Operating income	258,387
Interest expense	(53,861		)
Other income, net	166,522
Earnings before income taxes	371,048
Income tax provision	(2,355		)
Net earnings	368,693
Net earnings attributable to noncontrolling interests	(79,258		)
Net earnings attributable to IAC shareholders	$	289,435