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Table of Contents
Results of Operations for the Years Ended December 31, 2014, 2013 and 2012
Revenue
For the year ended December 31, 2014 compared to the year ended December 31, 2013
Search & Applications revenue decreased 1% to $1.6 billion reflecting a decline from Applications (which includes our direct-to-consumer
downloadable applications operations (B2C), our partnership operations (B2B), SlimWare and Apalon), partially offset by an increase from
Websites (which is principally composed of Ask.com, About.com, CityGrid, Dictionary.com, Investopedia, PriceRunner.com and Ask.fm).
Applications revenue decreased 7% to $760.5 million, despite strong query growth from our B2C operations and the contribution of SlimWare,
which was acquired on April 1, 2014, primarily due to lower queries from our B2B operations. Websites revenue grew 6% to $835.8 million driven
by the acquisition of the ValueClick O&O website businesses on January 10, 2014, growth from About.com and the contribution of CityGrid,
which had been moved from the eCommerce segment to the Search & Applications segment, effective July 1, 2013, following its reorganization,
partially offset by a decline in revenue from Ask.com.
The Match Group revenue increased 11% to $897.2 million
driven by a 6% increase in Dating revenue. Dating North America revenue (which
includes Match, Chemistry, People Media, OkCupid, Tinder and other dating businesses operating within the United States and Canada) and Dating
International revenue (which includes Meetic, Tinder and all other dating businesses operating outside of the United States and Canada) both
increased 6% to $557.2 million and $279.3 million, respectively. These businesses are collectively referred to as "Dating." The growth in Dating
revenue was driven by increased paid subscribers. North America and International paid subscribers increased 5% and 4%, respectively. Non-
dating
revenue (consisting of The Princeton Review, Tutor.com and DailyBurn) increased 254% principally due to the contribution of The Princeton
Review, which was acquired on August 1, 2014.
Media revenue decreased 5% to $181.8 million primarily due to the impact of the closure of the Newsweek print business and sale of the
Newsweek digital business in August 2013 and declines at Electus, partially offset by strong growth at Vimeo and the contribution in the current
year of $11.3 million from IAC Films.
eCommerce revenue increased 3% to $435.4 million due to growth at HomeAdvisor and ShoeBuy, partially offset by the move of CityGrid
described above. The increase in revenue from HomeAdvisor is driven by an increase in domestic service requests and accepts of 13% and 9%,
respectively.
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 and Applications. Websites revenue
grew 11% to $786.9 million, reflecting the contribution from The About Group, acquired
25
(i) a $3.9 million benefit in 2014 related to the expiration of the statute of limitations for a non-
income tax matter (reflected in The Match
Group segment);
(ii)
the sale of the Rezbook assets in July 2013, which resulted in a gain of $8.4 million (reflected in the eCommerce segment);
(iii) the move of CityGrid from the eCommerce segment to the Search & Applications segment, effective July 1, 2013, following its
reorganization; and
(iv)
$4.2 million in employee termination costs associated with the CityGrid restructuring in 2013 (reflected in the eCommerce segment).
Years Ended December 31,
2014
$ Change
% Change
2013
$ Change
% Change
2012
(Dollars in thousands)
Search & Applications
$
1,596,251
$
(8,699
)
(1
)%
$
1,604,950
$
139,155
9
%
$
1,465,795
The Match Group
897,245
91,855
11
%
805,390
91,168
13
%
714,222
Media
181,780
(9,654
)
(5
)%
191,434
27,383
17
%
164,051
eCommerce
435,361
13,295
3
%
422,066
(35,116
)
(8
)%
457,182
Inter-segment elimination
(1,090
)
(237
)
(28
)%
(853
)
(536
)
(170
)%
(317
)
Total
$
3,109,547
$
86,560
3
%
$
3,022,987
$
222,054
8
%
$
2,800,933