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Dec 31, 2019
LendingTree Q4 2019 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
LendingTree provided revenue, variable marketing margin and adjusted EBITDA guidance for the first quarter and full year 2020.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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