NASDAQ$TREE

LendingTree Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record mortgage revenue and continued recovery in the Consumer segment.

LendingTree reported a strong first quarter in 2021, exceeding prior guidance with momentum in all three segments. The Home segment delivered record revenue, while the Insurance segment posted strong growth, and the Consumer segment showed tangible signs of recovery.

  • Consolidated revenue reached $272.8 million.
  • GAAP net income from continuing operations was $19.3 million, or $1.37 per diluted share.
  • Variable marketing margin was $89.0 million.
  • Adjusted EBITDA amounted to $30.7 million.

Headline financials

Total Revenue

$273M

Previous: $283M-3.7%
EPS (adj)

$0.18

Previous: $1.20-85.0%
Variable Marketing Margin

$89M

Previous: $98.2M-9.4%
Free Cash Flow

$18.9M

Previous: $5.23M+261.1%
Net Income

$18.9M

Previous: $5.23M+261.1%
Operating Income

-$1.91M

Previous: $20.7M-109.2%
Gross Profit

$96.3M

Previous: $109M-11.8%
Cash & Equivalents

$162M

Previous: $51.2M+216.5%
Total Assets

$1.24B

Previous: $1.02B+22.3%
Stock-Based Comp

$16.4M

Previous: $11.9M+37.9%

Revenue & EPS history

LendingTree · Revenue · Quarterly

$273M

Q1 2021-3.7%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

LendingTree · $273M total across 3 segments · Q1 2021

  • Home
    $128M+61.7%
  • Insurance
    $86.6M+4.7%
  • Consumer
    $57.9M-51.7%

Forward guidance

For the second quarter of 2021, LendingTree expects revenue in the range of $263 - $273 million, variable marketing margin in the range of $86 - $92 million, and adjusted EBITDA in the range of $27 - $31 million.

Tailwinds

  • Sustained improvement in the Consumer segment.
  • Acceleration in Insurance segment revenue growth of 30% or more compared to Q2 2020.

Headwinds

  • Difficulty in forecasting the recovery of the Consumer segment.
  • Effects of volatile interest rate movements in the Home segment.
  • Year-over-year growth in the Home segment moderating relative to Q1.
  • Sequential decline in Home revenue and segment profit.
  • Approximately $2 million in additional expense to support the build of our Medicare agency capability.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+2.9%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-3.3%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+41.7%

Q2 2015

Best reaction

-22.2%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-21.9%-20.0%-23.3%
Q4 2025+14.2%+13.7%+8.0%
Q3 2025+2.5%-9.7%-11.2%
Q1 2025-20.3%-30.7%-35.3%
Q4 2024+22.5%+2.2%+14.1%
Q3 2024-22.2%-18.8%-23.8%
Q2 2024+6.3%+0.4%+9.4%
Q1 2024+28.2%+32.3%+19.1%
Q4 2023+3.2%+16.6%+23.5%
Q3 2023+35.5%+45.3%+59.9%
Q2 2023-13.8%-17.1%-33.8%
Q1 2023-20.9%-20.2%-20.3%
Q4 2022-11.6%-11.9%-30.4%
Q3 2022+11.5%+10.1%+10.9%
Q2 2022-6.3%-11.5%-28.6%
Q1 2022-6.0%-18.5%-19.6%
Q4 2021+20.6%-19.0%-1.1%
Q3 2021+10.7%+1.5%-18.3%
Q2 2021-3.7%-10.6%-16.4%
Q1 2021-16.2%-20.4%-16.7%
Q4 2020-18.5%-17.8%-37.6%
Q3 2020-16.2%-12.1%-29.8%
Q2 2020-7.0%-7.2%-14.9%
Q1 2020-6.2%-0.4%+15.9%
Q4 2019-15.1%-19.2%-41.1%
Q3 2019+11.1%+19.3%+11.4%
Q2 2019-15.7%-21.0%-27.8%
Q1 2019+1.8%+4.2%+1.6%
Q4 2018+0.2%+0.7%+8.5%
Q3 2018+30.0%+26.8%+29.1%
Q2 2018-3.0%-2.9%-2.4%
Q1 2018-20.3%-15.8%-15.4%
Q4 2017-8.6%-5.8%-4.5%
Q3 2017+20.3%+21.0%+35.9%
Q2 2017+17.8%+22.0%+21.2%
Q1 2017+12.0%+14.8%+25.2%
Q4 2016+10.0%+5.6%+6.0%
Q3 2016-14.8%-11.7%+18.1%
Q2 2016+5.7%+4.0%+5.4%
Q1 2016-6.8%
Q4 2015+19.4%
Q3 2015+26.5%
Q2 2015+41.7%
Q1 2015-10.9%
Q4 2014+18.4%
Q3 2014+30.1%
Q2 2014+4.5%
Q1 2014-18.2%
Q4 2013+2.3%
Q3 2013+12.0%
Q2 2013+24.1%
Q1 2013-3.3%
Q4 2012+15.1%
Q3 2012+10.4%
Q2 2012+3.5%
Q1 2011+1.2%
Q1 2012+3.2%
Q4 2011+3.2%
Q3 2011-0.4%
Q3 2010-0.4%
Q2 2011+3.5%
Q2 2010+3.5%
Q4 2010+3.5%
Q1 2010+2.8%

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