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Sep 30, 2021

LendingTree Q3 2021 Earnings Report

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

Key Takeaways

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.

Total Revenue
$297M
Previous year: $220M
+35.1%
EPS
$0.75
Previous year: -$0.26
-388.5%
Variable Marketing Margin
$106M
Previous year: $78.1M
+35.6%
Gross Profit
$282M
Previous year: $207M
+36.4%
Cash and Equivalents
$215M
Previous year: $187M
+15.0%
Total Assets
$1.28B
Previous year: $1.2B
+6.7%

LendingTree

LendingTree

LendingTree Revenue by Segment

Forward Guidance

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

Positive Outlook

  • 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.

Challenges Ahead

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income