FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2022 or Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-34063 LendingTree, Inc. (Exact name of Registrant as specified in its charter) Delaware 26-2414818 (State or other juris ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-34063 LendingTree, Inc. (Exact name of Registrant as specified in its charter) Delaware 26-2414818 (State or other jurisdicti ...

Financial Data and Key Metrics Changes - The company acknowledged a slowdown in borrower, lender, and insurance carrier demand, impacting financial performance [9] - Segment-level profit excluding brand spend is expected to remain roughly flat in Q3 compared to Q2, indicating resilience in the business model [9] - Operating expense growth was limited to 3% year-over-year despite inflationary pressures, aided by a nearly 15% reduction in headcount since mid-2021 [9] Business Line Data and Key Metrics Changes - The consumer segment saw significant growth, with personal loans and small business loans increasing revenues by 68% and 81% year-over-year, respectively [11] - The insurance business remained relatively flat quarter-over-quarter, with expectations for material growth dialed back due to inflationary pressures [12] - The home segment is focusing on home equity loan products, with a 62% increase in consumer volume for quotes in Q2 [10] Market Data and Key Metrics Changes - The company is experiencing trough-like revenue in two of its three segments due to macroeconomic headwinds [10] - The insurance industry is facing challenges from inflation, impacting premium pricing and growth expectations [12][26] - The consumer segment is performing well, with lenders remaining active despite tightening credit conditions [20][34] Company Strategy and Development Direction - The company is committed to improving customer experience and brand awareness, even as competitors scale back [8] - A new omnichannel marketing campaign was launched to enhance customer engagement and capitalize on lower advertising rates [13] - The company is strategically investing in technology and product improvements to better position itself for future growth [69][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic volatility, drawing on past experiences [8] - The leadership team is focused on managing expenses and preparing for a potential recession, with adjustments made to forecasts [18][20] - There is optimism about future growth in the insurance segment once pricing stabilizes and consumer shopping increases [12] Other Important Information - The company has nearly $300 million in cash on the balance sheet and is exploring ways to deploy this capital, although stock buybacks are currently restricted [42] - The company is not expecting significant media spend in Q4 due to higher costs associated with holiday advertising [49][50] Q&A Session All Questions and Answers Question: Contextualize the earnings power of the business and the implications of a potential recession - Management acknowledged that while two segments are facing challenges, the consumer segment is performing well, and they are adjusting forecasts accordingly [20][21] Question: Are there tangible signs of improvement in the consumer segment? - Management noted that while there are signs of tightening credit, lenders remain active, and the consumer segment continues to perform positively [35][36] Question: Can you discuss the strategic decision to invest in brand and expected returns? - The company is investing in brand awareness due to favorable advertising rates and expects a return on investment over a six-month period [44][45] Question: What is the current mix of purchase versus refinance in the mortgage business? - Management indicated that refinance remains significantly larger than purchase but is expected to shift as market conditions change [58][60] Question: How should investors think about free cash flow moving forward? - The company expects to generate positive free cash flow in Q4, with adjusted EBITDA serving as a good proxy for cash flow [62][64]

LendingTree, Inc. (NASDAQ:TREE) Q1 2022 Earnings Conference Call May 5, 2022 9:00 AM ET Company Participants Andrew Wessel - Head, Investor Relations Doug Lebda - Chairman & Chief Executive Officer J.D. Moriarty - President, Marketplace & Chief Operating Officer Trent Ziegler - Chief Financial Officer Scott Peyree - President, Insurance Conference Call Participants John Campbell - Stephens Inc Jed Kelly - Oppenheimer Ryan Tomasello - KBW Rob Wildhack - Autonomous Research Youssef Squali - Truist Melissa Wed ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-34063 LendingTree, Inc. (Exact name of Registrant as specified in its charter) Delaware 26-2414818 (State or other jurisdict ...

PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) The company operates an online consumer platform connecting consumers with a network of partners for various financial services, generating revenue primarily from match fees - The company operates an online marketplace connecting consumers with over **500 Network Partners** for a wide range of financial products, including loans, credit cards, and insurance[25](index=25&type=chunk) - Revenue is primarily generated from match fees paid by Network Partners upon receiving a consumer request, with some products also generating fees upon loan closing or sale[26](index=26&type=chunk)[40](index=40&type=chunk) - The company has diversified its offerings beyond its original mortgage business through organic growth and strategic acquisitions, including **ValuePenguin (2019)** and an equity interest in **Stash (2020)**[28](index=28&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - As of December 31, 2021, the company had **1,425 employees** and considered its employee relations to be good[66](index=66&type=chunk) Segment Revenue (2019-2021) | Segment | 2021 Revenue (in thousands) | 2020 Revenue (in thousands) | 2019 Revenue (in thousands) | | :--- | :--- | :--- | :--- | | Home | $441,738 | $320,992 | $277,935 | | Consumer | $329,945 | $253,198 | $515,037 | | Insurance | $326,153 | $333,765 | $284,792 | | Other | $663 | $2,035 | $28,839 | | **Total** | **$1,098,499** | **$909,990** | **$1,106,603** | [Item 1A. Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, operational, legal, and investment risks, including market dependency, cybersecurity threats, and concentrated voting control - Business performance is highly sensitive to economic conditions, particularly interest rates affecting the mortgage market, and depends on maintaining strong relationships with its Network Partners[72](index=72&type=chunk)[73](index=73&type=chunk) - The business relies heavily on search engines and online advertising to attract consumers, making it vulnerable to algorithm changes and rising marketing costs[80](index=80&type=chunk)[81](index=81&type=chunk) - Significant operational risks include potential system interruptions and security breaches that could lead to the misappropriation of sensitive personal information, resulting in financial liabilities and reputational damage[114](index=114&type=chunk)[116](index=116&type=chunk) - The company is subject to a complex web of federal and state regulations, including RESPA, TILA, TCPA, and data privacy laws like GLBA and CCPA, with non-compliance potentially leading to significant penalties[121](index=121&type=chunk)[124](index=124&type=chunk)[132](index=132&type=chunk) - As of February 18, 2022, the Chairman and CEO, Douglas Lebda, beneficially owned approximately **16% of outstanding common stock**, concentrating voting control[167](index=167&type=chunk) - The company has outstanding convertible senior notes (2022 Notes and 2025 Notes) whose conditional conversion features, if triggered, could adversely affect financial condition and liquidity[175](index=175&type=chunk)[176](index=176&type=chunk) [Item 1B. Unresolved Staff Comments](index=33&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - Not applicable[190](index=190&type=chunk) [Item 2. Properties](index=33&type=section&id=Item%202.%20Properties) The company's principal executive offices are located in a leased space in Charlotte, North Carolina, with additional offices supporting its business segments - The main executive offices are in Charlotte, North Carolina, under a lease expiring in **2036**[191](index=191&type=chunk) - Additional offices are maintained in multiple U.S. locations and India to support the Home, Consumer, and Insurance segments[192](index=192&type=chunk)[193](index=193&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is party to various legal proceedings in the ordinary course of business - The company is involved in ordinary course litigation concerning property, contract, and intellectual property claims[194](index=194&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[195](index=195&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on Nasdaq, it does not plan to pay dividends, and it maintains an active stock repurchase program - The company's common stock is listed on the Nasdaq under the ticker symbol **"TREE"**[198](index=198&type=chunk) - The company does not intend to pay cash dividends in the foreseeable future[199](index=199&type=chunk) - During the quarter ended December 31, 2021, **334,253 shares were repurchased** under the stock repurchase program, with **$121.7 million** still authorized for future repurchases as of February 18, 2022[204](index=204&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's 21% revenue growth to $1.1 billion in 2021, improved profitability, liquidity position, and critical accounting policies [Results of Operations](index=41&type=section&id=Results%20of%20Operations) In 2021, revenue grew 21% to $1.1 billion, driven by the Home and Consumer segments, resulting in a significant turnaround to net income of $73.1 million - The Home segment revenue grew **38% to $441.7 million**, driven by increases in refinance, purchase, and home equity products[242](index=242&type=chunk)[248](index=248&type=chunk) - The Consumer segment revenue increased **30% to $329.9 million**, primarily due to growth in personal loans, small business loans, and credit cards[242](index=242&type=chunk)[244](index=244&type=chunk) - The Insurance segment revenue decreased **2% to $326.2 million** due to lower revenue earned per consumer[242](index=242&type=chunk)[247](index=247&type=chunk) - Selling and marketing expense, the largest cost component, increased **25% to $774.0 million**, in line with revenue growth and increased advertising spend[242](index=242&type=chunk)[255](index=255&type=chunk) - Other income surged to **$123.3 million** in 2021 from $0.4 million in 2020, primarily due to a **$27.9 million realized gain** and a **$95.4 million unrealized gain** on its Stash investment[242](index=242&type=chunk)[269](index=269&type=chunk) Consolidated Results of Operations (2021 vs. 2020) | Metric | 2021 (in thousands) | 2020 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,098,499 | $909,990 | 21% | | Total Costs and Expenses | $1,090,468 | $916,593 | 19% | | Operating Income (Loss) | $8,031 | $(6,603) | 222% | | Net Income (Loss) from Continuing Operations | $73,138 | $(22,566) | 424% | [Segment Profit](index=45&type=section&id=Segment%20Profit) Total segment profit increased 11% to $410.4 million, with growth in Home and Consumer segments offsetting a decline in the Insurance segment - The Home segment's profit growth was driven by improved unit economics and increased lender reliance on LendingTree to meet origination goals in a competitive market[280](index=280&type=chunk) - The Consumer segment's profit growth was fueled by a recovery in personal loans and small business revenue to pre-pandemic levels[281](index=281&type=chunk) - The Insurance segment's profit decline was attributed to P&C carriers reducing marketing budgets due to higher loss ratios in the latter half of 2021[285](index=285&type=chunk) Segment Profit (2021 vs. 2020) | Segment | 2021 Profit (in thousands) | 2020 Profit (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Home | $153,352 | $132,123 | 16% | | Consumer | $143,497 | $106,890 | 34% | | Insurance | $113,464 | $131,142 | (13)% | | Other | $53 | $(682) | 108% | | **Total** | **$410,366** | **$369,473** | **11%** | [Financial Position, Liquidity and Capital Resources](index=47&type=section&id=Financial%20Position%2C%20Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with $251.2 million in cash, supported by operating cash flow and a new credit facility - Cash and cash equivalents increased to **$251.2 million** at year-end 2021 from $169.9 million at year-end 2020[297](index=297&type=chunk) - In September 2021, the company entered into a new Credit Agreement with a **$200.0 million revolving facility** and a **$250.0 million delayed draw term loan facility**[305](index=305&type=chunk) - Outstanding debt includes **$169.7 million** of 0.625% Convertible Senior Notes due June 2022 and **$575.0 million** of 0.50% Convertible Senior Notes due July 2025[307](index=307&type=chunk) Cash Flow Summary (2021 vs. 2020) | Cash Flow Activity | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $131,256 | $111,299 | | Net cash provided by (used in) investing activities | $10,067 | $(122,149) | | Net cash (used in) provided by financing activities | $(63,347) | $193,290 | [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management highlights critical accounting policies involving significant estimates, particularly for income taxes, goodwill impairment, and the valuation of investments - Key estimates are required for income taxes, including the realization of deferred tax assets and liabilities for uncertain tax positions[318](index=318&type=chunk)[319](index=319&type=chunk) - The company tests its **$420.1 million of goodwill** for impairment annually, using a discounted cash flow analysis that requires significant judgment on discount rates and future cash flows[322](index=322&type=chunk)[323](index=323&type=chunk)[324](index=324&type=chunk) - Fair value of contingent consideration from acquisitions is reassessed quarterly, with changes impacting operating income[327](index=327&type=chunk)[328](index=328&type=chunk) - The company's equity investment in Stash is carried at cost and marked to market upon observable market events, with a carrying value of **$158.1 million** at December 31, 2021[329](index=329&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations, which significantly impact consumer demand in its Home segment - The company's main market risk exposure is to interest rate fluctuations, which directly affect consumer demand for mortgages and, consequently, lender demand for leads[333](index=333&type=chunk) - Falling interest rates typically increase mortgage refinancing volume but can decrease revenue per consumer, while rising rates have the opposite effect[333](index=333&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements, notes, and the independent auditor's report, which provided an unqualified opinion - The independent auditor, PricewaterhouseCoopers LLP, issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2021[339](index=339&type=chunk)[340](index=340&type=chunk) - A critical audit matter was identified concerning the valuation of the company's equity investment in **Stash Financial, Inc.**, due to the significant management judgment involved in determining its fair value[347](index=347&type=chunk)[348](index=348&type=chunk) Consolidated Balance Sheet Highlights (as of Dec 31) | Account | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $251,231 | $169,932 | | Total Assets | $1,299,356 | $1,188,990 | | Total Debt (Current & Long-term) | $644,159 | $611,412 | | Total Liabilities | $851,364 | $824,229 | | Total Shareholders' Equity | $447,992 | $364,761 | [Notes to Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on revenue recognition, goodwill, debt structure, the Stash investment, and discontinued operations - Revenue is primarily recognized at the point in time a consumer request (lead) is delivered to a customer (Network Partner), with some revenue estimated based on conversion rates (Note 2)[368](index=368&type=chunk)[373](index=373&type=chunk) - As of December 31, 2021, the company held an equity investment in Stash with a carrying value of **$158.1 million**, recognizing a **$27.9 million realized gain** and a **$95.4 million unrealized gain** during 2021 (Note 8)[455](index=455&type=chunk)[456](index=456&type=chunk) - The company's debt includes **$169.7 million** of 2022 Convertible Notes and **$575.0 million** of 2025 Convertible Notes (Note 15)[537](index=537&type=chunk)[551](index=551&type=chunk)[561](index=561&type=chunk) - Discontinued operations relate to the former LendingTree Loans Business (HLC), whose bankruptcy case was closed on July 14, 2021 (Note 21)[602](index=602&type=chunk)[606](index=606&type=chunk)[609](index=609&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=100&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company - Not applicable[628](index=628&type=chunk) [Item 9A. Controls and Procedures](index=100&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective as of December 31, 2021 - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2021[630](index=630&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2021, based on the COSO framework[632](index=632&type=chunk) [Item 9B. Other Information](index=100&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[634](index=634&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=101&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[635](index=635&type=chunk) PART III [Items 10-14](index=102&type=section&id=Items%2010-14) Required information on governance, compensation, and ownership is incorporated by reference from the company's 2022 proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's **2022 Proxy Statement**[637](index=637&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=103&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the report - This section lists all financial statements, schedules, and exhibits filed with the Form 10-K[645](index=645&type=chunk)[648](index=648&type=chunk) [Item 16. Form 10-K Summary](index=107&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary for this item - None[657](index=657&type=chunk)

LendingTree, Inc. (NASDAQ:TREE) Q4 2021 Earnings Conference Call February 25, 2022 9:00 AM ET Company Participants Andrew Wessel - Vice President of Investor Relations Doug Lebda - Chairman & Chief Executive Officer J.D. Moriarty - President of Marketplace & Chief Operating Officer Trent Ziegler - Chief Financial Officer Conference Call Participants Jed Kelly - Oppenheimer John Campbell - Stephens Incorporated Ryan Tomasello - KBW Rob Wildhack - Autonomous Research Melissa Wedel - JPMorgan Mike Grondahl - N ...

LendingTree, Inc. (NASDAQ:TREE) Q3 2021 Earnings Conference Call October 28, 2021 9:00 AM ET Company Participants Andrew Wessel – Head of Investor Relations Doug Lebda – Chairman and Chief Executive Officer J.D. Moriarty – President, LendingTree Next Trent Ziegler – Chief Financial Officer Conference Call Participants Youssef Squali – Truist John Campbell – Stephens Inc Jamie Friedman – Susquehanna Jed Kelly – Oppenheimer Mike Grondahl – Northland Securities Melissa Wedel – JPMorgan Operator Good day, and t ...

PART I—FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) LendingTree reported Q3 2021 revenue of **$297.5 million** and a **$4.5 million** net loss, with nine-month revenue at **$840.2 million** and **$21.2 million** net income, while total assets increased to **$1.28 billion** [Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME) Q3 & Nine Months 2021 vs 2020 Performance (in thousands, except per share amounts) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $297,450 | $220,251 | $840,214 | $687,661 | | **Operating Income (Loss)** | $7,419 | $(16,117) | $16,060 | $(2,916) | | **Net (Loss) Income from Continuing Operations** | $(4,406) | $(24,809) | $24,706 | $(14,449) | | **Net (Loss) Income** | $(4,460) | $(24,643) | $21,190 | $(39,999) | | **Diluted (Loss) Income Per Share** | $(0.34) | $(1.89) | $1.54 | $(3.08) | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Key Balance Sheet Items (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $215,277 | $169,932 | | Total current assets | $372,438 | $296,409 | | Goodwill | $420,139 | $420,139 | | **Total assets** | **$1,284,529** | **$1,188,990** | | Total current liabilities | $282,731 | $111,843 | | Long-term debt | $471,991 | $611,412 | | **Total liabilities** | **$853,447** | **$824,229** | | **Total shareholders' equity** | **$431,082** | **$364,761** | [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS'%20EQUITY) - Total shareholders' equity increased from **$364.8 million** at the end of 2020 to **$431.1 million** as of September 30, 2021, driven by **$21.2 million** net income and **$51.8 million** non-cash compensation during the first nine months of 2021[14](index=14&type=chunk)[10](index=10&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Cash Flow Category | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $88,893 | $96,216 | | Net cash used in investing activities | $(31,695) | $(100,386) | | Net cash (used in) provided by financing activities | $(15,192) | $197,375 | | **Net increase in cash** | **$45,336** | **$127,034** | - The significant decrease in cash from financing activities in 2021 compared to 2020 is primarily due to the issuance of **$575 million** in Convertible Senior Notes and related debt transactions in 2020, which did not recur in 2021[18](index=18&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes detail accounting policies, revenue recognition by segment, goodwill, debt instruments including new credit facilities, and the financial impact of the Stash equity investment and discontinued operations - The company operates an online consumer platform connecting consumers with financial product providers, generating revenue primarily from match fees and closing fees[21](index=21&type=chunk) Revenue by Segment (in thousands) | Segment | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Home | $112,422 | $78,859 | $345,408 | $232,156 | | Consumer | $100,011 | $48,377 | $233,594 | $205,419 | | Insurance | $84,837 | $92,500 | $260,714 | $248,156 | | **Total Revenue** | **$297,450** | **$220,251** | **$840,214** | **$687,661** | - In September 2021, the company entered into a new credit agreement consisting of a **$200 million** revolving facility and a **$250 million** delayed draw term loan facility, replacing its previous credit facility[136](index=136&type=chunk) - The company recorded a **$40.1 million** gain on its equity investment in Stash Financial, Inc. during the first nine months of 2021 due to an adjustment to fair value based on observable market events[61](index=61&type=chunk) - Subsequent to the quarter end, in October 2021, the company agreed to sell a portion of its Stash equity securities for **$46.3 million**, expecting to record a realized gain of **$27.9 million** in Q4 2021[181](index=181&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q3 2021 revenue growth of **35%** to strong Consumer and Home segment performance, despite an **8%** decline in Insurance, with operating expenses increasing **23%** and Adjusted EBITDA reaching **$41.0 million** [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q3 2021 total revenue increased **35%** to **$297.5 million**, driven by **107%** Consumer and **43%** Home segment growth, resulting in an operating income of **$7.4 million** and a **$40.1 million** gain on the Stash investment for the nine-month period Q3 2021 vs Q3 2020 Revenue by Segment (in thousands) | Segment | Q3 2021 | Q3 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Home | $112,422 | $78,859 | $33,563 | 43% | | Consumer | $100,011 | $48,377 | $51,634 | 107% | | Insurance | $84,837 | $92,500 | $(7,663) | (8)% | | **Total Revenue** | **$297,450** | **$220,251** | **$77,199** | **35%** | - The **107%** growth in Consumer segment revenue was primarily driven by increases in personal loans, credit cards, and small business loans products[211](index=211&type=chunk) - Selling and marketing expense increased by **33%** year-over-year in Q3 2021, corresponding with revenue growth, as the company dynamically adjusts advertising spend to meet network partner demand[208](index=208&type=chunk)[223](index=223&type=chunk) - For the first nine months of 2021, the company recorded a **$40.1 million** gain on its investment in Stash, which was a significant contributor to pre-tax income[237](index=237&type=chunk) [Segment Profit](index=43&type=section&id=Segment%20Profit) Total segment profit increased **35%** year-over-year to **$112.9 million** in Q3 2021, driven by strong growth in Consumer and Home segments, while Insurance segment profit decreased **28%** due to market headwinds Q3 2021 vs Q3 2020 Segment Profit (in thousands) | Segment | Q3 2021 | Q3 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Home | $41,517 | $25,166 | $16,351 | 65% | | Consumer | $44,716 | $21,647 | $23,069 | 107% | | Insurance | $26,610 | $37,043 | $(10,433) | (28)% | | **Total Segment Profit** | **$112,940** | **$83,858** | **$29,082** | **35%** | - The Insurance segment faced transitory headwinds as carriers reduced marketing budgets due to rising loss costs and higher catastrophe losses[252](index=252&type=chunk) - The Home segment continues to perform well, with mortgage revenue per lead increasing **78%** and home equity revenue per lead increasing **79%** in Q3 2021 compared to Q3 2020[251](index=251&type=chunk) [Adjusted EBITDA](index=44&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA significantly increased to **$41.0 million** in Q3 2021 from **$21.7 million** in Q3 2020, reaching **$110.0 million** for the first nine months of 2021 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net (loss) income from continuing operations | $(4,406) | $(24,809) | $24,706 | $(14,449) | | **Adjusted EBITDA** | **$40,997** | **$21,679** | **$109,975** | **$97,402** | [Financial Position, Liquidity and Capital Resources](index=45&type=section&id=Financial%20Position,%20Liquidity%20and%20Capital%20Resources) As of September 30, 2021, the company held **$215.3 million** in cash and equivalents, with **$88.9 million** net cash from operations, and secured a new credit agreement to enhance liquidity and fund future operations - The company ended Q3 2021 with **$215.3 million** in cash and cash equivalents, an increase from **$169.9 million** at the end of 2020[259](index=259&type=chunk) - A new credit agreement was established in September 2021, providing a **$200 million** revolving credit facility and a **$250 million** delayed draw term loan facility, which can be used to settle the 2022 Notes[261](index=261&type=chunk)[262](index=262&type=chunk) Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Cash Flow Category | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $88,893 | $96,216 | | Net cash used in investing activities | $(31,695) | $(100,386) | | Net cash (used in) provided by financing activities | $(15,192) | $197,375 | [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations impacting mortgage demand and lender lead requirements, though exposure from financial instruments is minimal with no borrowings under its variable-rate Credit Facility as of October 28, 2021 - The company's main market risk is interest rate volatility, which affects consumer demand for mortgages and, consequently, lender demand for the company's leads[274](index=274&type=chunk) - As of October 28, 2021, there were no borrowings under the new Credit Facility, minimizing exposure to interest rate changes on its debt[273](index=273&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting during Q3 2021 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[275](index=275&type=chunk) - No changes occurred during the quarter ended September 30, 2021, that materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[276](index=276&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, with material litigation updates provided in Notes 14 and 17 of the financial statements - The company is party to litigation in the ordinary course of business; for detailed updates, refer to Notes 14 and 17 of the financial statements[278](index=278&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2020 Annual Report on Form 10-K were reported - No material changes to the risk factors from the 2020 Annual Report were reported[279](index=279&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock under its program in Q3 2021, with **$179.7 million** remaining authorized, but purchased **11,047** shares from employees for tax withholding obligations - No shares were repurchased under the stock repurchase program during Q3 2021; approximately **$179.7 million** remains authorized for repurchase as of October 22, 2021[280](index=280&type=chunk) - During Q3 2021, **11,047** shares were purchased from employees at an average price of **$171.50** per share to satisfy tax withholding obligations on equity awards[283](index=283&type=chunk)[281](index=281&type=chunk) [Other Information](index=49&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - None[285](index=285&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Credit Agreement and CEO/CFO certifications - Key exhibits filed include the Credit Agreement dated September 15, 2021, and CEO/CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[287](index=287&type=chunk)

LendingTree, Inc. (NASDAQ:TREE) Q2 2021 Earnings Conference Call July 29, 2021 9:00 AM ET Company Participants Trent Ziegler – Chief Financial Officer Doug Lebda – Chairman and Chief Executive Officer J.D. Moriarty – President-LendingTree Next Conference Call Participants Jed Kelly – Oppenheimer Youssef Squali – Truist James Friedman – Susquehanna John Campbell – Stephens Inc. Kyle Peterson – Needham Rob Wildhack – Autonomous Research Melissa Wedel – J.P. Morgan Mike Grondahl – Northland Securities Nat Schi ...