NASDAQ$TREE

LendingTree Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

LendingTree's second quarter results aligned with the revised guidance range, with macroeconomic headwinds impacting Home and Insurance segments while the Consumer segment showed resilience.

LendingTree reported second quarter results in line with revised guidance. The company is investing in marketing and strategic initiatives, while acknowledging the challenging environment in the Home and Insurance segments. The Consumer segment remains uncertain. The company is focused on balancing near-term profitability with long-term success.

  • Made significant progress on main strategic initiatives and are committed to improving the experience for LendingTree customers.
  • Launched an omnichannel celebrity-led marketing campaign and are returning to TV advertising after a three-year absence.
  • Second quarter results were squarely in-line with the revised ranges provided in late June.
  • Expect the environment to remain challenging in Home and Insurance through the remainder of the year and acknowledge the prospects for our Consumer segment are increasingly uncertain.

Headline financials

Total Revenue

$262M

Previous: $270M-3.0%
EPS (adj)

$0.58

Previous: $0.76-23.7%
Free Cash Flow

-$8.04M

Previous: -$13.7M+41.4%
Net Income

-$8.04M

Previous: -$13.7M+41.4%
Operating Income

-$3.89M

Previous: $10.5M-136.9%
Gross Profit

$93.8M

Previous: $106M-11.2%
Cash & Equivalents

$279M

Previous: $203M+37.4%
Total Assets

$1.36B

Previous: $1.27B+7.7%
Stock-Based Comp

$17.3M

Previous: $18.3M-5.2%

Revenue & EPS history

LendingTree · Revenue · Quarterly

$262M

Q2 2022-3%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

LendingTree · $87.9M total across 2 segments · Q3 2023

  • Insurance
    $54.5M
  • Home
    $33.4M

Forward guidance

For the third quarter of 2022, the Home and Insurance segments are expected to soften modestly compared to Q2, while Consumer continues to grow at a slower pace. A brand reinvestment in 3Q will weigh heavily on results, but a significant portion of this spend is one time in nature. For the full year 2022, the company remains focused on maintaining the balance between near-term profitability and positioning the company for long-term success. The implied AEBITDA range for 4Q of $15M - $20M represents trough-level earnings capacity for our business in the absence of discretionary investments.

Tailwinds

  • Consumer segment continues to grow.
  • Re-investing in brand in 3Q.
  • Significantly improved brand experience and customer journey that are being implemented.
  • Can capture increased efficiency from our spend due to the lower overall demand for broadcast advertising.
  • Made significant progress in managing our non-marketing operating expenses over the last year.

Headwinds

  • Home and Insurance segments are expected to soften modestly vs. 2Q.
  • Consumer continues to grow, albeit at a slower pace YoY as we remain cognizant of partner demand in a slowing economic environment.
  • The combination of production expense, television and OTT media, and ancillary launch expenses will weigh heavily on 3Q results.
  • Continued challenges across the Home and Insurance end markets.
  • The macroeconomic risks and uncertainty ahead

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 2022

Historical avgQ2 2022

+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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