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 ...

CHARLOTTE, N.C., Nov. 15, 2024 /PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation's leading online financial services marketplace, today announced that it will participate in the Stephens Annual Investment Conference taking place at the Grand Hyatt Nashville on November 19-21, 2024.Jason Bengel, Chief Financial Officer at LendingTree, and Andrew Wessel, SVP of Investor Relations and Corporate Development, are scheduled to participate in a fireside chat on Wednesday, No ...

User Growth and Engagement - In Q3 2024, LendingTree added 1.2 million net new users, bringing cumulative active users to 30.7 million[132]. - Revenue attributed to registered Spring users was approximately $5.8 million, representing 2% of total revenue in Q3 2024[132]. Mortgage Market Trends - Mortgage interest rates decreased from an average of 6.82% in December 2023 to 6.18% in September 2024, with Q3 2024 averaging 6.51%[124]. - Total refinance origination dollars increased to 25% of total mortgage origination dollars in Q3 2024, up from 15% in Q4 2023[126]. - Industry-wide mortgage origination dollars in Q3 2024 increased by 35% from Q4 2023 and 21% from Q3 2023[126]. - The company expects the refinance share of mortgage origination dollars to be approximately 28% for 2024, compared to 15% in 2023[127]. - Existing home sales increased approximately 1% in Q3 2024 compared to Q4 2023, but decreased approximately 2% compared to Q3 2023[129]. Financial Performance - Revenue increased by $105.6 million, or 68%, to $260.8 million in Q3 2024 compared to Q3 2023, driven by the Insurance segment[141]. - Total revenue for Q3 2024 was $260.8 million, a 68% increase from $155.2 million in Q3 2023[167]. - Consumer segment revenue decreased by $7.8 million, or 12%, in Q3 2024, primarily due to a decline in credit card revenue[142]. - Home segment revenue fell by $1.1 million, or 3%, in Q3 2024, mainly due to a decrease in mortgage products[146]. - Total costs and expenses rose by $61.7 million, or 33%, to $250.9 million in Q3 2024 compared to Q3 2023[155]. - Operating income improved by $43.9 million, reaching $9.9 million in Q3 2024, compared to an operating loss of $34.0 million in Q3 2023[155]. - Net loss narrowed by $90.5 million, or 61%, to $58.0 million in Q3 2024 compared to a net loss of $148.5 million in Q3 2023[155]. Segment Performance - Insurance segment revenue surged by $114.5 million, or 210%, to $169.1 million in Q3 2024, attributed to a 107% increase in revenue per consumer[151]. - Insurance segment revenue surged 210% to $169.1 million in Q3 2024, with segment profit increasing by 77% to $41.4 million[176]. - Home equity revenue rose by $0.9 million to $21.0 million in Q3 2024, with a 25% increase in the volume of consumers completing request forms[169]. - Consumer segment revenue decreased 12% to $59.5 million in Q3 2024 from Q3 2023, with segment profit down 19% to $28.0 million[173]. - Home segment revenue decreased by 3% to $32.2 million in Q3 2024, with segment profit declining by 18% to $9.3 million[168]. Marketing and Advertising - Selling and marketing expenses increased by $96.3 million in Q3 2024, primarily due to higher advertising and promotional expenditures[156]. - Online revenue increased by 111% to $182.7 million in Q3 2024 from $86.5 million in Q3 2023, and total advertising expense rose by 110% to $183.6 million[157]. - Segment marketing expenses increased by 112% to $182.2 million in Q3 2024 compared to $86.1 million in Q3 2023[167]. - Variable marketing expense for Q3 2024 was $183.6 million, up from $87.4 million in Q3 2023, reflecting increased marketing efforts[180]. Cash Flow and Financing - As of September 30, 2024, the company had $96.8 million in cash and cash equivalents, down from $112.1 million as of December 31, 2023[189]. - The company expects cash and cash equivalents, cash flows from operations, and available borrowings to be sufficient to fund operating needs for the next twelve months[189]. - Net cash provided by operating activities for the first nine months of 2024 was $46.0 million, compared to $46.7 million for the same period in 2023[196]. - Net cash used in investing activities for the first nine months of 2024 was $8.4 million, primarily for capital expenditures related to internally developed software[196]. - The company entered into a $175.0 million first lien term loan facility on March 27, 2024, with $125.0 million drawn at closing[194]. Impairment and Charges - The company incurred impairment charges of $58.4 million related to equity securities in Q3 2024, compared to $113.1 million in Q3 2023[164]. - The closure of the Ovation credit services business accounted for approximately 3% of total revenue and costs, with an immaterial impact on net income for 2022[135]. Future Outlook - The company anticipates that new FCC regulations could adversely impact the market for financial product and insurance quote requests starting January 27, 2025[137]. - The company plans to leverage favorable market conditions to enhance its personal loans product in future quarters[174].

Core Viewpoint - LendingTree, Inc. reported strong third-quarter 2024 results, with adjusted net income per share of 80 cents, exceeding the Zacks Consensus Estimate of 67 cents and up from 61 cents in the prior-year quarter [1][2] Financial Performance - Total revenues increased by 68% year over year to $260.8 million, driven primarily by significant growth in the Insurance segment's revenues, surpassing the Zacks Consensus Estimate by 6.9% [3] - Adjusted EBITDA rose 23% year over year to $26.9 million, while the variable marketing margin increased by 14% year over year to $77.2 million [3] - The total cost of revenues was $9.4 million, reflecting a 23.8% increase from the prior-year quarter [3] Balance Sheet - As of September 30, 2024, cash and cash equivalents stood at $96.8 million, a decrease from $66.8 billion as of June 30, 2024, while long-term debt decreased to $346.2 million from $467.7 million [4] Future Outlook - For the fourth quarter of 2024, total revenues are estimated to be between $231 million and $241 million, with adjusted EBITDA and variable marketing margin anticipated between $20-$23 million and $69-$74 million, respectively [5] - For the full year 2024, total revenues are projected to be between $870 million and $880 million, with adjusted EBITDA expected to be between $92 million and $95 million, and variable marketing margin projected at $287 million to $292 million [6] Strategic Insights - The company's inorganic growth strategies have strengthened its online lending platform, with third-quarter results benefiting from robust growth in the Insurance segment [7] - Efforts to diversify non-mortgage product offerings are expected to support future top-line growth [7]

Financial Data and Key Metrics Changes - The company generated $27 million of adjusted EBITDA in Q3 2024, representing a 23% increase from the previous year [5] - Insurance segment revenue increased by 210% year-over-year, with a record $41 million of VMD during the period [6] Business Line Data and Key Metrics Changes - The consumer business grew revenue by 6% and VMD by 4% sequentially, marking the third consecutive period of sequential improvement [8] - Home equity now accounts for two-thirds of the home segment revenue, generating a 5% revenue growth from the prior year [12] Market Data and Key Metrics Changes - The insurance industry is expected to see strong results over the next 18 months, with ongoing demand for new consumers [14] - The company noted that a small number of carriers are driving the bulk of spending on its network, indicating potential for growth as more carriers return to historical spending patterns [7] Company Strategy and Development Direction - The company is focusing on improving customer satisfaction and loan close rates through the expansion of its concierge sales group [9] - There is an emphasis on leveraging high-quality traffic and expanding marketing efforts to capture additional high-intent customers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for next year, anticipating strong results as credit conditions may loosen [11] - The company is currently at trough levels and is starting to build back, focusing on controllable factors to improve the business [39] Other Important Information - The company is not planning significant increases in brand spending until revenue per lead improves substantially [39] - A $4 million litigation charge was mentioned, which is related to prospective settlements and should not be viewed as a significant concern [58] Q&A Session Summary Question: Outlook for the insurance industry over the next 18 months - Management expects strong results across the insurance industry, with ongoing demand for new consumers and potential for growth as more carriers expand their offerings [14][15] Question: Impact of SEO changes on LendingTree - Management aims to be independent of traffic sources and is working on improving SEO while also leveraging paid search strategies [20][21] Question: Variable marketing margins outlook for insurance - Management indicated that Q3 margins are viewed as a trough, with expectations for gradual improvement in the future [29] Question: Seasonal trends for Q4 - Management expects home equity strength to offset typical seasonal declines, while insurance and consumer segments may see normal seasonal declines [32][34] Question: Mortgage refinancing outlook - Management noted that refinancing will depend on consumer benefits as rates decline, with a healthy demand for home equity products [47][50] Question: Expansion of loan offerings - Management reported positive discussions with lenders about opening up credit boxes, which could lead to increased loan offerings in the future [60][62]