NASDAQ$TREE

LendingTree Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Demonstrated clear evidence of increasing momentum with consumer segment recovery gaining momentum and home and insurance remaining strong.

LendingTree reported a strong second quarter, with consolidated revenue of $270.0 million and GAAP net income from continuing operations of $9.8 million, or $0.71 per diluted share. The company's financial performance is rebounding, driven by recovery in the Consumer segment and sustained strength in Home and Insurance.

  • Consolidated revenue reached $270.0 million.
  • GAAP net income from continuing operations was $9.8 million, or $0.71 per diluted share.
  • Variable marketing margin was $98.4 million.
  • Adjusted net income per share was $0.76.

Headline financials

Total Revenue

$270M

Previous: $184M+46.5%
EPS (adj)

$0.76

Previous: $0.46+65.2%
Variable Marketing Margin

$98.4M

Previous: $82.5M+19.3%
Free Cash Flow

-$13.7M

Previous: -$52.1M+73.7%
Net Income

-$13.7M

Previous: -$52.1M+73.7%
Operating Income

$10.5M

Previous: -$7.55M+239.7%
Gross Profit

$106M

Previous: $88.3M+19.6%
Cash & Equivalents

$203M

Previous: $102M+99.6%
Total Assets

$1.27B

Previous: $1.09B+16.5%
Stock-Based Comp

$18.3M

Previous: $13.2M+39.0%

Revenue & EPS history

LendingTree · Revenue · Quarterly

$270M

Q2 2021+46.5%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

LendingTree · $270M total across 3 segments · Q2 2021

  • Home
    $105M+41.6%
  • Insurance
    $89.3M+22.5%
  • Consumer
    $75.7M+104.0%

Forward guidance

LendingTree issued an outlook for the third quarter 2021, expecting Home to remain resilient, Consumer to continue its recovery, and Insurance to see top-line growth with modestly contracting segment margins. Non-variable costs are expected to increase materially.

Tailwinds

  • Home to remain resilient, generally extending the trends we observed in Q2.
  • In Consumer, we expect the elevated pace of recovery in key products to continue.
  • Top-line growth should continue in Insurance.
  • Segment margins continue to contract modestly to the mid-thirties as a percent of revenue.
  • Revenue: $285 - $298 million

Headwinds

  • Difficulty in forecasting the recovery of our Consumer segment
  • Effects of volatile interest rate movements in our Home segment
  • Segment margins continue to contract modestly to the mid-thirties as a percent of revenue.
  • Non-variable costs are expected to increase materially over Q2 as we added 115 employees in Q2 and continue to add staffing in Q3 to support key initiatives, particularly our Medicare agency.
  • Adjusted EBITDA: $35 - $40 million

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 Q2 2021

Historical avgQ2 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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