NASDAQ$TREE

LendingTree Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong segment margins and expense discipline, driving upside amidst challenged revenue growth.

LendingTree reported consolidated revenue of $182.5 million. The company's expense actions, combined with strong margins in the Insurance and Consumer segments, generated Adjusted EBITDA of $26.7 million. Customer demand for new loans and insurance continues to outpace the appetite for new customers at LendingTree's partners.

  • Consolidated revenue reached $182.5 million.
  • GAAP net income was $(0.1) million, or $(0.01) per diluted share.
  • Variable marketing margin amounted to $76.5 million.
  • Adjusted EBITDA stood at $26.7 million, with adjusted net income per share at $1.14.

Headline financials

Total Revenue

$182M

Previous: $262M-30.3%
EPS (adj)

$1.14

Previous: $0.58+96.6%
Variable Marketing Margin

$76.5M

No prior period
Free Cash Flow

-$115K

Previous: -$8.04M+98.6%
Net Income

-$115K

Previous: -$8.04M+98.6%
Operating Income

$6.61M

Previous: -$3.89M+269.8%
Gross Profit

$78.5M

Previous: $93.8M-16.3%
Cash & Equivalents

$163M

Previous: $279M-41.7%
Total Assets

$1.04B

Previous: $1.36B-23.8%
Stock-Based Comp

$10.2M

Previous: $17.3M-41.2%

Revenue & EPS history

LendingTree · Revenue · Quarterly

$182M

Q2 2023-30.3%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

LendingTree · $183M total across 3 segments · Q2 2023

  • Consumer
    $82.5M
  • Insurance
    $58.4M
  • Home
    $41.6M

Forward guidance

LendingTree is updating its full-year 2023 outlook and introducing its outlook for Q3.

Tailwinds

  • Full-year 2023 Revenue of $680 - $700 million
  • Full-year 2023 Variable Marketing Margin of $275 - $290 million
  • Full-year 2023 Adjusted EBITDA of $70 - $80 million
  • Third-quarter 2023 Revenue: $155 - $170 million
  • Third-quarter 2023 Variable Marketing Margin: $65 - $75 million

Headwinds

  • LendingTree is not able to provide a reconciliation of projected variable marketing margin or adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters and tax considerations.
  • Expenses associated with legal matters and tax considerations have in the past, and may in the future, significantly affect GAAP results in a particular period.
  • Full-year 2023 Revenue compared to the prior range of $760 - $800 million
  • Full-year 2023 Variable Marketing Margin vs prior range of $290 - $310 million
  • Full-year 2023 Adjusted EBITDA vs prior range of $80 - $90 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 2023

Historical avgQ2 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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