NASDAQ$TREE

LendingTree Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

LendingTree reported an increase in revenue and variable marketing margin year over year, driven by the strength of the Insurance segment and improving Home segment margins.

LendingTree's Q4 2019 results showed strong growth, with a 26% increase in consolidated revenue and a 19% increase in variable marketing margin compared to Q4 2018. The company's expansion into insurance has been successful, and it continued to drive market share gains across various categories.

  • Consolidated revenue increased by 26% year-over-year to $255.2 million.
  • GAAP net income from continuing operations was $1.5 million, or $0.10 per diluted share.
  • Variable marketing margin grew by 19% year-over-year to $93.8 million.
  • Adjusted net income per share was $1.12.

Headline financials

Total Revenue

$255M

Previous: $203M+25.9%
EPS (adj)

$1.12

Previous: $1.22-8.2%
Variable Marketing Margin

$93.8M

Previous: $78.6M+19.3%
Net Income

$1.47M

Previous: -$3.3M+144.4%
Operating Income

$9.02M

Previous: $2.43M+271.5%
Gross Profit

$238M

Previous: $189M+26.3%
Cash & Equivalents

$60.2M

Previous: $105M-42.7%
Total Assets

$948M

Previous: $896M+5.8%
Stock-Based Comp

$11.3M

Previous: $9.98M+13.6%

Revenue & EPS history

LendingTree · Revenue · Quarterly

$255M

Q4 2019+25.9%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

LendingTree · $255M total across 4 segments · Q4 2019

  • Consumer
    $113M+15.5%
  • Insurance
    $70.9M+126.5%
  • Home
    $65.5M+3.5%
  • Other
    $5.4M-45.5%

Forward guidance

LendingTree provided revenue, variable marketing margin and adjusted EBITDA guidance for the first quarter and full year 2020.

Tailwinds

  • Revenue is expected in the range of $296 - $306 million for Q1 2020.
  • Variable marketing margin is expected in the range of $97 - $104 million for Q1 2020.
  • Adjusted EBITDA is expected in the range of $43 - $46 million for Q1 2020.
  • Revenue is expected in the range of $1,250 - $1,300 million for FY 2020, representing growth of 13% - 17% over full-year 2019.
  • Adjusted EBITDA is expected in the range of $225 - $235 million for FY 2020, up 14% - 19% over full-year 2019.

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.
  • The unknown effect, timing and potential significance of the effects of legal matters, tax considerations, and income and expense from changes in fair value of contingent consideration from acquisitions make reconciliation difficult.
  • Expenses associated with legal matters, tax consequences, and income and expense from changes in fair value of contingent consideration from acquisitions have in the past, and may in the future, significantly affect GAAP results in a particular period.
  • No specific negative factors were explicitly outlined.
  • Guidance is subject to change based on various factors.

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 Q4 2019

Historical avgQ4 2019

+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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