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Mar 31, 2023

LendingTree Q1 2023 Earnings Report

LendingTree's Q1 2023 results were reported, highlighting strategic expense reductions that partially offset economic challenges.

Key Takeaways

LendingTree reported a consolidated revenue of $200.5 million and a GAAP net income of $13.5 million, which included a $30.9 million gain from the repurchase of convertible notes. The company focused on strategic expense reductions and a transition to quarterly strategic planning to improve financial performance.

Completed strategic expense reduction impacting 13% of the workforce.

Transitioned to a quarterly strategic planning cadence.

Home segment revenue decreased by 57% year-over-year, while Home Equity revenue grew by 2%.

Insurance segment revenue decreased by 4% year-over-year, but segment profit increased by 43%.

Total Revenue
$201M
Previous year: $283M
-29.2%
EPS
$0.25
Previous year: $0.46
-45.7%
Variable Marketing Margin
$76.1M
Gross Profit
$187M
Previous year: $268M
-30.2%
Cash and Equivalents
$150M
Previous year: $197M
-23.7%
Total Assets
$1.04B
Previous year: $1.29B
-19.2%

LendingTree

LendingTree

LendingTree Revenue by Segment

Forward Guidance

LendingTree updated its full-year 2023 outlook, which implies the following ranges for the second-quarter. Our forecast includes a benefit from recently completed expense reductions offset by continued headwinds in Home, a pressured revenue environment for Consumer and, to a lesser extent, Insurance. In April, subsequent to quarter end, we made the decision to close our Ovation Credit Services business, with the financial impact incorporated in our forecast.

Revenue & Expenses

Visualization of income flow from segment revenue to net income