ServiceMagic 2014 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2014 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 144

  • 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

Table of Contents
offset by a $3.9 million benefit recorded in the first quarter of 2014 related to the expiration of the statute of limitations for a non-
income tax matter.
Media Adjusted EBITDA loss increased 116% to a loss of $36.7 million primarily due to increased investment in Vimeo, the inclusion in the
prior year of a $6.3 million gain related to the sale of Newsweek in August 2013 and losses at IAC Films, partially offset by lower losses at Electus.
eCommerce Adjusted EBITDA decreased 25% to $17.3 million primarily due to the prior year benefiting from an $8.4 million gain on the
sale of Rezbook assets in July 2013 and the move of CityGrid to the Search & Applications segment, partially offset by $4.2 million in employee
termination costs in 2013 associated with the CityGrid restructuring.
Corporate Adjusted EBITDA loss increased 5% to a loss of $63.3 million primarily due to higher professional fees.
For the year ended December 31, 2013 compared to the year ended December 31, 2012
Search & Applications Adjusted EBITDA increased 18% to $385.9 million , due to the higher revenue noted above, partially offset by
increases of $42.7 million in selling and marketing expense, $16.3 million in product development expense, $12.4 million in general and
administrative expense and $10.1 million in cost of revenue. The increase in selling and marketing expense was primarily due to B2C downloadable
applications and the inclusion of The About Group, beginning September 24, 2012. The increase in both product development expense and general
and administrative expense was primarily due to an increase in compensation related to the inclusion of The About Group. Product development
expense was also impacted by an increase in headcount related to B2C products. The increase in costs of revenue was primarily due to an increase
in content acquisition costs resulting from the acquisition of The About Group and the inclusion of CityGrid in the Search & Applications segment,
partially offset by a decrease of $7.7 million in traffic acquisition costs driven primarily by decreased revenue from Ask.com.
The Match Group Adjusted EBITDA increased 13% to $266.9 million
, due to the revenue growth noted above, partially offset by increases of
$21.2 million in selling and marketing expense, $20.4 million in general and administrative expense, $12.7 million in cost of revenue and $5.3
million in product development expense. The increase in selling and marketing expense was primarily due to increases in television advertising and
compensation due, in part, to an increase in headcount at Meetic and various acquisitions. The increases in general and administrative expense, cost
of revenue and product development expense were primarily due to various acquisitions. General and administrative expense was also impacted by
an increase in compensation of $5.6 million at Dating, resulting from an increase in headcount and higher professional fees primarily due to
transaction fees related to the Meetic tender offer.
Media Adjusted EBITDA loss decreased 56% to a loss of $17.0 million primarily due to the closure of the Newsweek print business and the
inclusion of a $6.3 million gain related to the sale of Newsweek in August 2013.
eCommerce Adjusted EBITDA decreased 27% to $22.9 million reflecting the move of CityGrid to the Search & Applications segment and
$4.2 million in employee termination costs associated with the CityGrid reorganization that took place in the second quarter of 2013. Partially
offsetting the decrease in Adjusted EBITDA was the inclusion of an $8.4 million gain on the sale of the Rezbook assets in July 2013.
30