ServiceMagic 2013 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2013 ServiceMagic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Table of Contents
Results of Operations for the Years Ended December 31, 2013, 2012 and 2011
Revenue
For the year ended December 31, 2013 compared to the year ended December 31, 2012
Search & Applications revenue increased 9% to $1.6 billion , reflecting strong growth from Websites (which includes Ask.com,
About.com, Dictionary.com and Citysearch.com (among other properties)) and Applications (which includes our direct to consumer
downloadable applications operations (B2C) and our partnership operations (B2B)). Websites revenue grew 11% to $786.9 million, reflecting
the contribution from The About Group, acquired September 24, 2012, and CityGrid Media, which has been moved from the Local segment and
included in the Search & Applications segment, effective July 1, 2013, following its reorganization. The About Group revenue increased $108.4
million to $138.6 million in 2013, as it was not in the full prior year period. Applications revenue grew 8% to $818.0 million, driven by
increased contributions from existing and new B2C products.
Match revenue increased 10% to $ 788.2 million driven by increases from Core, Meetic and Developing subscribers of 9%, 6% and 141%,
respectively. Core revenue (which consists of Match.com in the U.S., Chemistry and People Media), Meetic revenue and Developing revenue
(which includes OkCupid, SpeedDate, DateHookup, Twoo, Tinder and Match's international operations, excluding Meetic) increased 6% to
$464.3 million; 9% to $225.0 million; and 48% to $98.9 million, respectively. Meetic revenue in 2012 of $206.7 million was negatively
impacted by the write-off of $5.2 million of deferred revenue in connection with its acquisition. Developing revenue further benefited from the
contribution of Twoo, which was acquired January 4, 2013.
Local revenue decreased 14% to $ 277.5 million due to the move of CityGrid Media from the Local segment to the Search & Applications
from Felix, a pay-per-call advertising service acquired August 20, 2012. HomeAdvisor domestic revenue was negatively impacted by an 11%
decrease in accepted service requests due primarily to its domain name change at the end of 2012.
Media revenue increased 18% to $ 193.7 million primarily due to strong growth from Electus and Vimeo, partially offset by the closure of
the Newsweek print business in December 2012.
Other revenue increased 19% to $159.5 million primarily due to the contribution from Tutor.com, an online tutoring solution acquired
December 14, 2012, and increased sales at Shoebuy.
For the year ended December 31, 2012 compared to the year ended December 31, 2011
Search & Applications revenue increased 41% to $1.5 billion
, reflecting strong growth from both Applications and Websites. Applications
revenue grew 39% to $759.7 million, driven by 16% query growth and year over year monetization gains, which were driven by increased
contributions from existing and new partners and products. Websites revenue grew 43% to $706.1 million, reflecting 21% query growth driven
primarily by increased marketing and site optimization. The growth in Websites revenue also 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 increased 10% to
$439.9 million driven by an increase in subscribers. Revenue at Meetic was $206.7 million and $46.1 million in 2012 and 2011, respectively;
revenue 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 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.
24
Years Ended December 31,
2013
$ Change
% Change
2012
$ Change
% Change
2011
(Dollars in thousands)
Search & Applications
$
1,604,950
$
139,155
9
%
$
1,465,795
$
425,288
41
%
$
1,040,507
Match
788,197
74,748
10
%
713,449
195,422
38
%
518,027
Local
277,466
(45,161
)
(14
)%
322,627
19,209
6
%
303,418
Media
193,734
28,910
18
%
164,824
94,660
135
%
70,164
Other
159,493
24,938
19
%
134,555
6,490
5
%
128,065
Inter-segment elimination
(853
)
(536
)
(170
)%
(317
)
420
57
%
(737
)
Total
$
3,022,987
$
222,054
8
%
$
2,800,933
$
741,489
36
%
$
2,059,444