Core Viewpoint - Tree.com reported quarterly earnings of $1.16 per share, significantly exceeding the Zacks Consensus Estimate of $0.37 per share, marking an earnings surprise of 213.51% [1][2] Financial Performance - The company achieved revenues of $261.5 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10.91%, compared to $134.4 million in the same quarter last year [2] - Over the last four quarters, Tree.com has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Tree.com shares have experienced a slight decline of about 0.1% since the beginning of the year, while the S&P 500 has declined by 1.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $230.32 million, and for the current fiscal year, it is $2.68 on revenues of $982.73 million [7] - The trend of estimate revisions for Tree.com is mixed, which may change following the recent earnings report [6] Industry Context - The Financial - Mortgage & Related Services industry, to which Tree.com belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - 2024 AEBITDA increased by 33% to $104 million, with quarterly revenue of $262 million, exceeding forecasts[1] - Adjusted EBITDA for Q4 was $32.2 million, representing a 12% margin of revenue[12] - Adjusted EBITDA for full-year 2025 is anticipated to be between $116 million and $126 million, an increase of 11% to 21% from 2024[32] - The company reported Q4 2024 revenue of $261.5 million, compared to $134.4 million in Q4 2023[37] - Operating income for Q4 2024 was $17.9 million, a significant improvement from an operating loss of $0.2 million in Q4 2023[37] - For the year ended December 31, 2024, the net loss was $41,704,000, a significant improvement from a net loss of $122,404,000 in 2023[41] - Net income for Q4 2024 was $7,506,000, a significant improvement from a net loss of $57,978,000 in Q3 2024[52] - Adjusted net income for Q4 2024 increased to $15,813,000, compared to $10,882,000 in Q3 2024, reflecting a 45% quarter-over-quarter growth[52] Revenue Growth - Insurance segment revenue reached $549 million, growing 120% year-over-year, while segment profit increased by 54% to $159 million[2] - Consumer segment revenue grew by 12% year-over-year in Q4, with home equity loans driving a 35% increase in revenue[4] - Personal loan revenue rose by 21% year-over-year, driven by refinancing of high-cost credit card debt[23] - Small business revenue grew by 45% in Q4 compared to the prior year, supported by increased loan originations[24] - Insurance segment revenue increased by 188% YoY, with segment profit up 90% YoY[25] - Full-year 2025 revenue is projected to be between $985 million and $1,025 million, representing a growth of 9% to 14% compared to 2024[32] Leverage and Cash Management - Net leverage improved to 3.5x at year-end 2024, down from 5.3x at the end of 2023, with expectations for continued decline[6] - The company ended the year with a net leverage ratio of 3.5x, down from 5.3x at the end of 2023[26] - The company maintains $107 million in cash and has $50 million undrawn on its Apollo term loan[26] - The company aims to reduce outstanding debt as a primary use of excess cash, improving capital structure efficiency over time[27] Marketing and Operational Efficiency - Variable marketing margin increased to $86.7 million, a 33% margin, up 43% from the prior year[12] - Selling and marketing expenses for Q4 2024 totaled $185,858,000, up from $83,168,000 in Q4 2023[43] - The variable marketing margin for Q4 2024 was $86,748,000, representing 33% of revenue, compared to 45% in Q4 2023[46] - The company continues to focus on enhancing its marketing expenditures and operational efficiency through proprietary analytics[54] Future Outlook - The company anticipates strong underwriting profitability for insurers in 2025, benefiting from optimized policy rates[3] - Home equity loans are expected to see further growth as homeowners have $17.5 trillion in equity, a 2.5% increase from the previous year[20] - Variable Marketing Margin for full-year 2025 is expected to be in the range of $319 million to $336 million, indicating a growth of 5% to 10% over last year[32] - Forward-looking statements indicate potential risks including adverse market conditions and competition, which could impact future performance[69]

Core Insights - LendingTree, Inc. reported strong fourth-quarter results for 2024, exceeding guidance expectations, driven by significant revenue growth across all business segments [2][4] - The Insurance segment experienced remarkable growth, with a revenue increase of 188% year-over-year, while the Home and Consumer segments also showed solid growth of 35% and 12% respectively [5][11] - The company anticipates continued revenue growth in 2025, with a focus on operational excellence and expense discipline [2][11] Financial Performance - Total revenue for Q4 2024 reached $261.5 million, a 95% increase from $134.4 million in Q4 2023 [3][4] - Net income for the quarter was $7.5 million, translating to $0.55 per diluted share, compared to a loss of $58.0 million in the previous quarter [3][4] - Adjusted EBITDA for Q4 2024 was $32.2 million, an increase of 108% from $15.5 million in Q4 2023 [3][4] Segment Performance - The Insurance segment generated $171.7 million in revenue, up 188% year-over-year, with a segment profit of $48.0 million, a 90% increase [5][7] - The Home segment reported revenue of $34.0 million, a 35% increase, with a segment profit of $11.7 million, up 44% [5][7] - The Consumer segment achieved revenue of $55.6 million, a 12% increase, with personal loans revenue rising by 21% [5][7] Financial Outlook - For Q1 2025, the company projects revenue between $241 million and $248 million, with full-year revenue expected to be in the range of $985 million to $1,025 million, reflecting a growth of 9% to 14% compared to 2024 [11][13] - Variable Marketing Margin is anticipated to be between $75 million and $79 million, representing a growth of 5% to 10% over the previous year [13] - Adjusted EBITDA for the full year is expected to range from $116 million to $126 million, an increase of 11% to 21% from 2024 [13]

Core Viewpoint - Tree.com (TREE) is expected to report significant growth in earnings and revenues for the upcoming quarter, with earnings per share projected at $0.68, a 142.9% increase year-over-year, and revenues forecasted at $235.77 million, reflecting a 75.4% increase compared to the same period last year [1] Earnings Estimates - Over the last 30 days, there have been no revisions in the consensus EPS estimate for the quarter, indicating stability in analysts' forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts project 'Revenue- Consumer' to reach $51.23 million, a 3.5% increase from the previous year [5] - 'Revenue- Home' is estimated at $31.44 million, indicating a 25.3% year-over-year increase [5] - 'Revenue- Insurance' is forecasted at $153.01 million, reflecting a substantial 156.7% increase compared to the prior year [5] Segment Profit Estimates - The estimated 'Segment profit- Home' is projected at $9.69 million, up from $8.10 million in the same quarter last year [6] - 'Segment profit- Insurance' is expected to be $40.25 million, compared to $25.20 million a year ago [6] - Analysts forecast 'Segment profit- Consumer' to reach $24.53 million, down from $28.90 million in the previous year [6] Stock Performance - Tree.com shares have experienced a -17.5% return over the past month, contrasting with the Zacks S&P 500 composite's -2.4% change, indicating underperformance relative to the market [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [7]

Core Viewpoint - LendingTree, Inc. is set to release its fiscal fourth quarter 2024 results on March 5, 2025, after market close, along with a letter to shareholders [1] Group 1: Earnings Release Information - The earnings release will be followed by a conference call at 5:00 p.m. ET to discuss the results, which will also be available via webcast [2] - A replay of the webcast will be accessible after the event [2] Group 2: Company Overview - LendingTree, Inc. is a leading online financial services marketplace in the U.S., providing consumers access to various financial products through a network of over 600 financial partners [3] - The company has assisted millions of customers in obtaining financing, saving money, and improving their financial health since its inception [3] - LendingTree offers a range of innovative products and personalized financial recommendations to help customers achieve financial success [3]

Core Viewpoint - Tree.com (TREE) shares experienced a significant increase of 19% in the last trading session, closing at $49.32, supported by strong trading volume, contrasting with a 5.6% gain over the past four weeks [1] Group 1: Legal Developments - The stock's price surge was primarily driven by a favorable legal ruling from the 11th district on January 24th, which determined that the FCC's requirement for one-to-one consent was an overreach [2] - The ruling alleviated concerns regarding a proposed FCC rule change that could have negatively impacted TREE's business model by limiting lead generation and resale [3] - The court's decision stated that the FCC exceeded its authority under the Telephone Consumer Protection Act and violated the First Amendment, allowing TREE to avoid additional operational steps [3] Group 2: Financial Performance Expectations - TREE is projected to report quarterly earnings of $0.68 per share, reflecting a year-over-year increase of 142.9%, with revenues expected to reach $235.77 million, up 75.4% from the previous year [4] - The consensus EPS estimate for TREE has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [6] Group 3: Industry Context - TREE operates within the Zacks Financial - Mortgage & Related Services industry, where another company, Federal Agricultural Mortgage (AGM), closed 1.4% higher at $198.72, with a -0.6% return over the past month [6]

Core Viewpoint - Tree.com (TREE) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as reflected in earnings estimate revisions, is strongly correlated with near-term stock price movements, influenced by institutional investors [4]. - For Tree.com, rising earnings estimates and the consequent rating upgrade signify an improvement in the company's underlying business, which is expected to drive the stock price higher [5]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks generating an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings across its universe of over 4000 stocks, ensuring that only the top 20% receive favorable ratings [9][10]. Earnings Estimate Revisions for Tree.com - Tree.com is expected to earn $2.67 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 17.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Tree.com has increased by 24%, indicating a positive trend in earnings estimates [8].

Group 1 - LendingTree, Inc. (NASDAQ: TREE) shares have increased by over 27% year-to-date despite a recent decline [1] - The stock price of TREE has nearly doubled in the past few months, indicating strong performance in the online platform for mortgages, insurance, and other financial services [1]

Core Insights - LendingTree held its annual Lender Summit, focusing on challenges and opportunities in the mortgage industry, where Kastle won the Innovation Challenge for its AI Voice technology [1][5]. Company Overview - LendingTree is a leading online financial platform in the U.S., providing access to loans, credit cards, and insurance through a network of over 1,000 financial partners, having assisted over 129 million customers since its inception [7]. Innovation and Technology - Kastle's AI Voice technology was showcased during the summit, demonstrating its potential to enhance customer interactions in the mortgage sector, emphasizing affordability and ease of implementation [2][3]. - The CEO of Kastle highlighted the company's commitment to expanding AI applications beyond voice technology to improve loan production and servicing, aiming to transform the borrower experience while reducing costs and time [4]. Industry Trends - The summit underscored the significant potential of AI to revolutionize the mortgage industry, with Kastle's success serving as a testament to LendingTree's innovative approach [5].

Lending Tree, Inc. (TREE) partnered with Coverdash, the fastest-growing startup and small to medium-sized businesses (“SMB”) focused on insurtech broker. This partnership should enable Lending Tree to offer business insurance to its clients for the first time. This collaborative partnership broadens Lending Tree's range of financial products for SMBs, giving it a more effective and convenient way to meet the financial needs and obtain business insurance. With this collaboration, LendingTree has taken a sign ...