LendingTree(TREE) - 2024 Q4 - Annual Results

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]