NASDAQ$TREE

LendingTree Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a strong quarter with momentum accelerating in the Consumer segment and Home segment remaining resilient.

LendingTree reported consolidated revenue of $297.4 million for Q3 2021. The Home segment produced record results and the Consumer segment showed ongoing recovery. Industry headwinds impacted insurance partners, but the business is well-positioned to grow market share as the industry rebounds.

  • Home segment revenue grew 42% year-over-year, with mortgage products revenue up 31% over the prior year period.
  • Consumer segment revenue grew 107% year-over-year, with improvements in credit card, personal loans, and small business.
  • Insurance segment revenue declined 8% year-over-year due to industry headwinds.
  • 20.0 million consumers have signed up for My LendingTree through September 30, 2021.

Headline financials

Total Revenue

$297M

Previous: $220M+35.1%
EPS (adj)

$0.75

Previous: -$0.26+388.5%
Variable Marketing Margin

$106M

Previous: $78.1M+35.6%
Free Cash Flow

-$4.56M

Previous: -$40.5M+88.7%
Net Income

-$4.56M

Previous: -$40.5M+88.7%
Operating Income

$7.42M

Previous: -$16.1M+146.0%
Gross Profit

$113M

Previous: $83.9M+34.7%
Cash & Equivalents

$215M

Previous: $187M+15.0%
Total Assets

$1.28B

Previous: $1.2B+6.7%
Stock-Based Comp

$17.1M

Previous: $14.2M+20.6%

Revenue & EPS history

LendingTree · Revenue · Quarterly

$297M

Q3 2021+35.1%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

LendingTree · $297M total across 3 segments · Q3 2021

  • Home
    $112M+42.5%
  • Consumer
    $100M+106.6%
  • Insurance
    $84.8M-8.3%

Forward guidance

LendingTree issued an outlook for the fourth quarter 2021, assuming current trends and little change to macroeconomic drivers.

Tailwinds

  • Home to remain resilient, showing modest sequential declines, largely driven by seasonal factors.
  • In Consumer, expect typical seasonal headwinds as fundamentals continue to strengthen.
  • Non-variable expenses are expected to remain stable compared to the preceding quarter.

Headwinds

  • Expect a seasonal slowdown across most businesses as consumers focus less on finances and media becomes more expensive around the holidays.
  • In Insurance, well-publicized industry-wide challenges are expected to negatively impact our results.

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 Q3 2021

Historical avgQ3 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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