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Sep 30, 2023

LendingTree Q3 2023 Earnings Report

Reported a rebound in AEBITDA driven by strong segment margins and expense discipline.

Key Takeaways

LendingTree reported consolidated revenue of $155.2 million. The company experienced a GAAP net loss of $(148.5) million, which included after-tax impairment charges of ($145.9) million. However, the Adjusted EBITDA was $21.8 million, with an Adjusted net income per share of $0.61.

Generated $22 million of Adjusted EBITDA, the top end of their outlook, and an Adjusted EBITDA margin of 14%.

Increased margins in the Consumer and Insurance segments through targeted operational improvements.

Reduced headcount by over 30% from a year ago, with annualized operating expenses now running below 2019 levels.

Strategically simplified business while focusing resources on improving their core marketplace.

Total Revenue
$155M
Previous year: $238M
-34.7%
EPS
$0.61
Previous year: -$0.36
-269.4%
Variable Marketing Margin
$67.7M
Gross Profit
$141M
Previous year: $224M
-37.0%
Cash and Equivalents
$176M
Previous year: $286M
-38.6%
Total Assets
$885M
Previous year: $1.21B
-26.9%

LendingTree

LendingTree

LendingTree Revenue by Segment

Forward Guidance

LendingTree updated its outlook for full-year 2023.

Positive Outlook

  • Revenue of $670 - $680 million compared to the prior range of $680 - $700 million
  • Variable Marketing Margin of $275 - $285 million vs prior range of $275 - $290 million
  • Adjusted EBITDA of $74 - $80 million vs prior range of $70 - $80 million
  • Revenue: $132 - $142 million for fourth-quarter 2023
  • Variable Marketing Margin: $55 - $65 million for fourth-quarter 2023

Challenges Ahead

  • Adjusted EBITDA: $11 - $17 million for fourth-quarter 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income