ServiceMagic 2012 Annual Report Download - page 26

Table of Contents
Ask.com and Dictionary.com downloadable applications) and Websites (which includes Ask.com, About.com and Dictionary.com).
Applications revenue grew 40% to $755.4 million, driven by 25% query growth and year over year monetization gains driven by increased
contributions from existing and new partners and products. Websites revenue grew 42% to $710.4 million, reflecting 49% query growth driven
primarily by increased marketing and site optimization. The growth in Websites revenue reflects the contribution from The About Group,
acquired September 24, 2012, which had revenue of $30.1 million.
Match revenue increased 38% to $ 713.4 million benefiting from the full year contribution of Meetic, which was consolidated beginning
September 1, 2011, and growth within our Core operations, partially offset by a decrease in Developing revenue. Core revenue, which consists
of Match.com in the U.S., Chemistry and People Media, increased 10% to $439.9 million driven by an increase in subscribers. Revenue at
Meetic in 2012 and 2011 of $206.7 million and $46.1 million, respectively, was negatively impacted by the write-off of $5.2 million and $32.6
million, respectively, of deferred revenue in connection with its acquisition. Developing revenue, which includes OkCupid, DateHookup and
Match's international operations, excluding Meetic, decreased 9% to $66.9 million, despite strong growth from OkCupid, due to lower
subscription revenue from our Latin America venture and Singlesnet. Excluding Meetic in both years, revenue grew 7% to $506.8 million.
Local revenue increased 6% to $ 322.6 million , primarily reflecting growth from HomeAdvisor's operations. HomeAdvisor domestic
revenue grew due to higher average lead acceptance fees. HomeAdvisor international revenue grew due to a 25% increase in accepted service
requests and higher average lead acceptance fees. CityGrid Media revenue increased due to the contribution of Felix, a pay-per-call advertising
service acquired August 20, 2012, and higher reseller revenue, partially offset by a decline in direct sales revenue.
Media revenue increased 135% to $ 164.8 million primarily due to the contribution from News_Beast (formerly
The Newsweek/DailyBeast Company), consolidated beginning June 1, 2012 following the Company's acquisition of a controlling interest, as
well as strong growth from Electus and Vimeo.
For the year ended December 31, 2011 compared to the year ended December 31, 2010
Search & Applications revenue increased 29% to $1.0 billion, reflecting strong growth from both Applications and Websites. Applications
revenue grew 43% to $540.4 million, reflecting increased contribution from both existing and new partners and new products. Websites revenue
grew 17% to $500.1 million, reflecting strong query gains driven primarily by increased marketing and content optimization.
Match revenue increased 29% to $518.0 million benefiting from growth within its Core and Developing operations and the contribution of
Meetic, which was consolidated beginning September 1, 2011. Core revenue increased 18% to $398.6 million driven by an increase in
subscribers. Developing revenue increased 19% to $73.3 million driven primarily from display advertising revenue from the early 2011
acquisition of OkCupid, as well as from Match’s venture with Meetic in Latin America, which was included for only part of the prior year,
partially offset by lower subscription revenue from Singlesnet. Revenue at Meetic of $46.1 million was negatively impacted by the write-off of
$32.6 million of deferred revenue in connection with its acquisition. Excluding Meetic, revenue grew 18% to $471.9 million. Revenue in the
prior year was negatively impacted by the write-off of $4.1 million in deferred revenue associated with the Singlesnet acquisition and the
formation of our venture with Meetic in Latin America in early 2010.
Local revenue increased 15% to $303.4 million, benefiting from growth in both HomeAdvisor’s operations. HomeAdvisor domestic
revenue growth reflects an 8% increase in accepted service requests, which was driven, in part, by a 9% increase in service requests.
HomeAdvisor domestic growth also reflects an increase in revenue from website design and hosting services. HomeAdvisor international
revenue growth reflects a 43% increase in accepted service requests, which was driven, in part, by a 44% increase in service requests and a 15%
increase in home services professionals. CityGrid Media revenue increased primarily due to growth from existing resellers and increased display
advertising.
Media revenue increased 41% to $70.2 million primarily reflecting growth at Electus, Notional and Vimeo, partially offset by a decrease in
revenue from The Daily Beast, which following the formation of the joint venture with Harman Newsweek on January 31, 2011, was accounted
for as an equity method investment beginning February 1, 2011.
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