EFTA01378067

Cost of revenue (exclusive of depreciation shown separately below) 82,079 131.118 Selling and marketing expense 271.236 289.844 General and administrative expense 74,351 121.303 Product development expense 36.614 50,740 Depreciation 17,122 19,804 Amortization of intangibles 6,841 14,130 Total operating costs and expenses 488.243 626.939 Operating income 161.029 125,918 Interest expense—related party (23,214) (6,879) Other income, net 8,628 8,341 Earnings before income taxes 146,443 127,380 Income tax provision (46,434) (42,632) Net earnings 100.009 84,748 Net (earnings) loss attributable to noncontrolling interests (522) 42 Net earnings attributable to Match Group, Inc.'s shareholder $ 99,487 $ 8.4,790 _—• Pro forma net earnings per share attributable to Match Group, Inc.'s shareholder: Basic $ 9.91 $ 8.29 Diluted $ 9.48 $ 7.88 Basic, to give effect to dividend payment to AC and anticipated 16-for-1 stock split $ 0.30 Diluted, to give effect to dividend payment to IAC and anticipated 16-for-I stock split $ 0.29 Pro Tonna weighted average shares outstanding: Basic 10,040 10,233 Diluted 10,492 10,761 Basic. to give effect to dividend payment to AC and anticipated 16-for-1 stock split 197466 Diluted. to give effect to dividend payment to tAC and anticipated 16-for-1 stock split 205.515 Stook-based compensation expense by function: Cost of revenue $ 465 $ 342 Selling and marketing expense 255 4,883 General and administrative expense 13.476 22.076 Product development expense 2,414 3,681 Total stock-based compensation expense $ 16,610 $ 30,982 The accompanyeg Notes to Coabeted Financial Statements are an Integra( part of Mese sfalemenPs F-3 TatNe of contents Match Group, Inc. and Subsidiaries Combined statement of comprehensive income (Unaudited) Nine months ended September 30, 2014 2015 (In th dd ) Net earnings 100.009 $ 84.748 Other comprehensive (loss) income, net of tax: Change in foreign currency translation adjustment (28,322) (53,521) Change in fair value of available-for-sale security 874 2.176 Total other comprehensive loss (27,448) (51,345) Comprehensive income 72,561 33,403 Comprehensive (income) loss attributable to noncontrolling interests (309) 235 Comprehensive income attributable to Match Group, Inc.'s shareholder $ 72.252 S 33,638 The accompanying Notes to Cantinei Financial Statements wean integral part of these sfaletnents F-4 Table of Contents Match Group, Inc. and Subsidiaries Combined statement of shareholder equity (Unaudited) hap.% vmsw.sec.govrAmlives.redgar'datail SIS189,0001047469150012431'32226458^-talfinti I 1,92013 911:17 AIM CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0075227 SDNY_GM_00221411 EFTA01378067