EFTA01378015

2013 2014 % change Selling and marketing expense Percentage of revenue (dollars In thousands) 321,870 $ 335,107 4.1% 40.1% 37.7% Selling and marketing expense increased $13.2 million, or 4.1%. in 2014 versus 2013. Dating selling and marketing expense increased $8.3 million, or 2.6%. driven by an increase of $5.4 million from the acquisition of FriendScout24 and an increase in advertising spend. Non-dating selling and marketing expense increased $5.0 million, or 91.7%. driven primarily by $4.5 million from the acquisition of The Princeton Review. 76 Table ofCantentS General and administrative expense Years ended December 31, 2013 2014 (dollars In thousands) 93.641 $ 117,890 25.9% 11.7% 13.3% % change General and administrative expense Percentage of revenue General and administrative expense increased $24.2 million, or 25.9%, in 2014 versus 2013. Dating general and administrative expense increased $1.7 million, or 2.0%, primarily driven by an increase in compensation of $10.7 million at our existing businesses, primanly due to an increase of $8.5 million in stock-based compensation expense due to new grants and increases in headcount. These increases were partially offset by a decrease of $13.3 million for an acquisition-related contingent consideration fair value adjustment at Twoo driven by changes in the forecast of earnings and operating metrics, and 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. Non-dating general and administrative expense increased $22.5 million, or 327.2%. driven primarily by $21.2 million from the acquisition of The Princeton Review. Product development expense Years ended December 31, 2013 2014 % change (dollars In thousands) Product development expense 42.973 49.738 15.7% Percentage of revenue 5.4% 5.6% Product development expense increased $6.8 million, or 15.7%. in 2014 versus 2013. primarily driven by an increase in compensation driven by increased headcount at Tinder and Tutor.com (now The Princeton Review) Depreciation Years ended December 31, % change 2013 2014 (dollars In th ds) Depreciation S 20.202 S 25.547 26.5% Percentage of revenue 2.5% 2.9% Table of Contents 77 Depreciation increased by $5.3 million, or 26.5%, in 2014 versus 2013, primarily driven by $3.8 million from the acquisition of The Princeton Review and the incremental depreciation associated with capital expenditures. Adjusted EBITDA Adjusted EBITDA is non-GAAP measure and is defined in "Principles of financial reporting." Refer to Note 9 to our combined audited financial statements for reconciliations of Adjusted EBITDA to operating income and net earnings attributable to Match Group. Inc.'s shareholder. Years ended hap: sec.gov 'An:hives date157518911001047.1691500643.4122264511^-talamil 1,50,2013 911:17 AA CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0075175 SONY GM_00221359 EFTA01378015