NASDAQ$TREE

LendingTree Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

LendingTree's Q1 2023 results were reported, highlighting strategic expense reductions that partially offset economic challenges.

LendingTree reported a consolidated revenue of $200.5 million and a GAAP net income of $13.5 million, which included a $30.9 million gain from the repurchase of convertible notes. The company focused on strategic expense reductions and a transition to quarterly strategic planning to improve financial performance.

  • Completed strategic expense reduction impacting 13% of the workforce.
  • Transitioned to a quarterly strategic planning cadence.
  • Home segment revenue decreased by 57% year-over-year, while Home Equity revenue grew by 2%.
  • Insurance segment revenue decreased by 4% year-over-year, but segment profit increased by 43%.

Headline financials

Total Revenue

$201M

Previous: $283M-29.2%
EPS (adj)

$0.25

Previous: $0.46-45.7%
Variable Marketing Margin

$76.1M

No prior period
Free Cash Flow

$13.5M

Previous: -$10.8M+224.3%
Net Income

$13.5M

Previous: -$10.8M+224.3%
Operating Income

-$13M

Previous: -$2.93M-343.5%
Gross Profit

$80M

Previous: $99.5M-19.6%
Cash & Equivalents

$150M

Previous: $197M-23.7%
Total Assets

$1.04B

Previous: $1.29B-19.2%
Stock-Based Comp

$11.3M

Previous: $15.1M-25.2%

Revenue & EPS history

LendingTree · Revenue · Quarterly

$201M

Q1 2023-29.2%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

LendingTree · $121M total across 2 segments · Q1 2023

  • Insurance
    $77.1M
  • Home
    $43.7M

Forward guidance

LendingTree updated its full-year 2023 outlook, which implies the following ranges for the second-quarter. Our forecast includes a benefit from recently completed expense reductions offset by continued headwinds in Home, a pressured revenue environment for Consumer and, to a lesser extent, Insurance. In April, subsequent to quarter end, we made the decision to close our Ovation Credit Services business, with the financial impact incorporated in our forecast.

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 2023

Historical avgQ1 2023

+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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