LendingTree, Inc.’s (TREE) fourth-quarter 2024 adjusted net income per share of $1.16 per share topped the Zacks Consensus Estimate of 37 cents. The figure compares favorably with the 28 cents reported in the prior-year quarter.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.The results were driven by a rise in revenues. However, an increase in total cost was a spoilsport.The results exclude certain non-recurring items. After considering these, TREE reported a GAAP net income ...

Financial Data and Key Metrics Changes - The company reported $32 million of adjusted EBITDA in Q4 2024, exceeding forecasts and indicating strong performance [6][9] - The company expects a 16% annual growth in adjusted EBITDA at the midpoint of the range for 2025 [9][91] - Net leverage improved to 3.5x trailing adjusted EBITDA, with expectations for further reduction as earnings grow [10][11] Business Line Data and Key Metrics Changes - Insurance segment revenue grew significantly, with homeowners insurance up 175%, home equity up 48%, small business up 45%, personal loans and auto loans both up 21%, and mortgage up 12% year-over-year [7][8] - The company anticipates continued double-digit revenue growth across all product lines in Q1 2025 [9] Market Data and Key Metrics Changes - The company noted a strong cycle in auto insurance demand, benefiting from both consumer and carrier perspectives [6] - The company expects stable interest rates and a healthy consumer outlook to drive demand from customers and lending partners [12] Company Strategy and Development Direction - The company emphasizes a diversified business model, which has contributed to its growth outlook [9] - Focus on variable marketing and fixed costs to generate positive operating leverage as revenue scales [10] - The company is exploring AI and operational excellence as part of its strategy for future growth [60][62] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2025, despite expectations for more modest growth in the insurance segment as the year progresses [16][18] - The company is focused on returning variable marketing margins to historical norms while maintaining strong growth in other segments [18][56] - Management highlighted the importance of consumer demand and the potential for improved credit metrics to enhance free cash flow generation [11][12] Other Important Information - The company has seen a significant improvement in its balance sheet over the past year [10] - Management noted that the regulatory environment is becoming more favorable, which could benefit the business [73] Q&A Session Summary Question: Insights on insurance growth expectations for 2025 - Management expects more modest growth in insurance as the year progresses, with strong growth compared to the first half of the previous year [16][18] Question: Opportunities for price increases in the insurance segment - Management indicated that pricing dynamics depend on market competition, with expectations for continued growth despite potential price increases [20][22] Question: Market share dynamics in the insurance sector - The top 3 or 4 carriers are driving the market, with smaller carriers also growing rapidly [27] Question: Impact of interest rates on business - Lower interest rates are expected to benefit all business segments, particularly home equity [29][30] Question: Financial impact of the one-to-one consent ruling - Management expressed optimism about recovering revenue from insurance and lending products following the favorable ruling [71][72] Question: Consumer segment growth sustainability - Management noted strong growth in small business and personal loans, with expectations for continued demand [56][58] Question: Margin expectations for the consumer segment - Management anticipates normalization of margins in 2025 while still delivering double-digit revenue growth [78] Question: Potential impact of tariffs on auto insurance demand - Management believes that while fewer car shoppers may impact some consumers, overall shopping behavior for insurance will remain strong [85][86]

LendingTree, Inc. (NASDAQ:TREE) Q4 2024 Earnings Conference Call March 5, 2025 5:00 PM ET Company Participants Andrew Wessel - SVP, IR &Corporate Development Doug Lebda - Chairman & CEO Scott Peyree - COO & President of Marketplace Businesses Jason Bengel - CFO Conference Call Participants Ryan Tomasello - KBW Jed Kelly - Oppenheimer & Company Youssef Squali - Truist Securities Oscar Nieves - Stephens Mike Grondahl - Northland Melissa Wedel - JPMorgan Operator Good day and thank you for standing by. Welcome ...

Core Insights - Tree.com reported a revenue of $261.5 million for the quarter ended December 2024, marking a 94.6% increase year-over-year and exceeding the Zacks Consensus Estimate by 10.91% [1] - The company's EPS for the quarter was $1.16, significantly up from $0.28 in the same quarter last year, resulting in an EPS surprise of 213.51% compared to the consensus estimate of $0.37 [1] Revenue Breakdown - Consumer revenue reached $55.60 million, surpassing the average estimate of $51.23 million by analysts, reflecting a year-over-year increase of 12.3% [4] - Home revenue was reported at $34 million, exceeding the three-analyst average estimate of $31.44 million, with a year-over-year growth of 35.5% [4] - Insurance revenue amounted to $171.70 million, significantly above the average estimate of $153.01 million, representing a remarkable year-over-year increase of 188.1% [4] Stock Performance - Over the past month, Tree.com shares have declined by 13.6%, contrasting with a 4.1% decrease in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Tree.com reported quarterly earnings of $1.16 per share, significantly exceeding the Zacks Consensus Estimate of $0.37 per share, marking an earnings surprise of 213.51% [1][2] Financial Performance - The company achieved revenues of $261.5 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10.91%, compared to $134.4 million in the same quarter last year [2] - Over the last four quarters, Tree.com has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Tree.com shares have experienced a slight decline of about 0.1% since the beginning of the year, while the S&P 500 has declined by 1.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $230.32 million, and for the current fiscal year, it is $2.68 on revenues of $982.73 million [7] - The trend of estimate revisions for Tree.com is mixed, which may change following the recent earnings report [6] Industry Context - The Financial - Mortgage & Related Services industry, to which Tree.com belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - 2024 AEBITDA increased by 33% to $104 million, with quarterly revenue of $262 million, exceeding forecasts[1] - Adjusted EBITDA for Q4 was $32.2 million, representing a 12% margin of revenue[12] - Adjusted EBITDA for full-year 2025 is anticipated to be between $116 million and $126 million, an increase of 11% to 21% from 2024[32] - The company reported Q4 2024 revenue of $261.5 million, compared to $134.4 million in Q4 2023[37] - Operating income for Q4 2024 was $17.9 million, a significant improvement from an operating loss of $0.2 million in Q4 2023[37] - For the year ended December 31, 2024, the net loss was $41,704,000, a significant improvement from a net loss of $122,404,000 in 2023[41] - Net income for Q4 2024 was $7,506,000, a significant improvement from a net loss of $57,978,000 in Q3 2024[52] - Adjusted net income for Q4 2024 increased to $15,813,000, compared to $10,882,000 in Q3 2024, reflecting a 45% quarter-over-quarter growth[52] Revenue Growth - Insurance segment revenue reached $549 million, growing 120% year-over-year, while segment profit increased by 54% to $159 million[2] - Consumer segment revenue grew by 12% year-over-year in Q4, with home equity loans driving a 35% increase in revenue[4] - Personal loan revenue rose by 21% year-over-year, driven by refinancing of high-cost credit card debt[23] - Small business revenue grew by 45% in Q4 compared to the prior year, supported by increased loan originations[24] - Insurance segment revenue increased by 188% YoY, with segment profit up 90% YoY[25] - Full-year 2025 revenue is projected to be between $985 million and $1,025 million, representing a growth of 9% to 14% compared to 2024[32] Leverage and Cash Management - Net leverage improved to 3.5x at year-end 2024, down from 5.3x at the end of 2023, with expectations for continued decline[6] - The company ended the year with a net leverage ratio of 3.5x, down from 5.3x at the end of 2023[26] - The company maintains $107 million in cash and has $50 million undrawn on its Apollo term loan[26] - The company aims to reduce outstanding debt as a primary use of excess cash, improving capital structure efficiency over time[27] Marketing and Operational Efficiency - Variable marketing margin increased to $86.7 million, a 33% margin, up 43% from the prior year[12] - Selling and marketing expenses for Q4 2024 totaled $185,858,000, up from $83,168,000 in Q4 2023[43] - The variable marketing margin for Q4 2024 was $86,748,000, representing 33% of revenue, compared to 45% in Q4 2023[46] - The company continues to focus on enhancing its marketing expenditures and operational efficiency through proprietary analytics[54] Future Outlook - The company anticipates strong underwriting profitability for insurers in 2025, benefiting from optimized policy rates[3] - Home equity loans are expected to see further growth as homeowners have $17.5 trillion in equity, a 2.5% increase from the previous year[20] - Variable Marketing Margin for full-year 2025 is expected to be in the range of $319 million to $336 million, indicating a growth of 5% to 10% over last year[32] - Forward-looking statements indicate potential risks including adverse market conditions and competition, which could impact future performance[69]

Core Insights - LendingTree, Inc. reported strong fourth-quarter results for 2024, exceeding guidance expectations, driven by significant revenue growth across all business segments [2][4] - The Insurance segment experienced remarkable growth, with a revenue increase of 188% year-over-year, while the Home and Consumer segments also showed solid growth of 35% and 12% respectively [5][11] - The company anticipates continued revenue growth in 2025, with a focus on operational excellence and expense discipline [2][11] Financial Performance - Total revenue for Q4 2024 reached $261.5 million, a 95% increase from $134.4 million in Q4 2023 [3][4] - Net income for the quarter was $7.5 million, translating to $0.55 per diluted share, compared to a loss of $58.0 million in the previous quarter [3][4] - Adjusted EBITDA for Q4 2024 was $32.2 million, an increase of 108% from $15.5 million in Q4 2023 [3][4] Segment Performance - The Insurance segment generated $171.7 million in revenue, up 188% year-over-year, with a segment profit of $48.0 million, a 90% increase [5][7] - The Home segment reported revenue of $34.0 million, a 35% increase, with a segment profit of $11.7 million, up 44% [5][7] - The Consumer segment achieved revenue of $55.6 million, a 12% increase, with personal loans revenue rising by 21% [5][7] Financial Outlook - For Q1 2025, the company projects revenue between $241 million and $248 million, with full-year revenue expected to be in the range of $985 million to $1,025 million, reflecting a growth of 9% to 14% compared to 2024 [11][13] - Variable Marketing Margin is anticipated to be between $75 million and $79 million, representing a growth of 5% to 10% over the previous year [13] - Adjusted EBITDA for the full year is expected to range from $116 million to $126 million, an increase of 11% to 21% from 2024 [13]

Core Viewpoint - Tree.com (TREE) is expected to report significant growth in earnings and revenues for the upcoming quarter, with earnings per share projected at $0.68, a 142.9% increase year-over-year, and revenues forecasted at $235.77 million, reflecting a 75.4% increase compared to the same period last year [1] Earnings Estimates - Over the last 30 days, there have been no revisions in the consensus EPS estimate for the quarter, indicating stability in analysts' forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts project 'Revenue- Consumer' to reach $51.23 million, a 3.5% increase from the previous year [5] - 'Revenue- Home' is estimated at $31.44 million, indicating a 25.3% year-over-year increase [5] - 'Revenue- Insurance' is forecasted at $153.01 million, reflecting a substantial 156.7% increase compared to the prior year [5] Segment Profit Estimates - The estimated 'Segment profit- Home' is projected at $9.69 million, up from $8.10 million in the same quarter last year [6] - 'Segment profit- Insurance' is expected to be $40.25 million, compared to $25.20 million a year ago [6] - Analysts forecast 'Segment profit- Consumer' to reach $24.53 million, down from $28.90 million in the previous year [6] Stock Performance - Tree.com shares have experienced a -17.5% return over the past month, contrasting with the Zacks S&P 500 composite's -2.4% change, indicating underperformance relative to the market [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [7]

Core Viewpoint - LendingTree, Inc. is set to release its fiscal fourth quarter 2024 results on March 5, 2025, after market close, along with a letter to shareholders [1] Group 1: Earnings Release Information - The earnings release will be followed by a conference call at 5:00 p.m. ET to discuss the results, which will also be available via webcast [2] - A replay of the webcast will be accessible after the event [2] Group 2: Company Overview - LendingTree, Inc. is a leading online financial services marketplace in the U.S., providing consumers access to various financial products through a network of over 600 financial partners [3] - The company has assisted millions of customers in obtaining financing, saving money, and improving their financial health since its inception [3] - LendingTree offers a range of innovative products and personalized financial recommendations to help customers achieve financial success [3]

Core Viewpoint - Tree.com (TREE) shares experienced a significant increase of 19% in the last trading session, closing at $49.32, supported by strong trading volume, contrasting with a 5.6% gain over the past four weeks [1] Group 1: Legal Developments - The stock's price surge was primarily driven by a favorable legal ruling from the 11th district on January 24th, which determined that the FCC's requirement for one-to-one consent was an overreach [2] - The ruling alleviated concerns regarding a proposed FCC rule change that could have negatively impacted TREE's business model by limiting lead generation and resale [3] - The court's decision stated that the FCC exceeded its authority under the Telephone Consumer Protection Act and violated the First Amendment, allowing TREE to avoid additional operational steps [3] Group 2: Financial Performance Expectations - TREE is projected to report quarterly earnings of $0.68 per share, reflecting a year-over-year increase of 142.9%, with revenues expected to reach $235.77 million, up 75.4% from the previous year [4] - The consensus EPS estimate for TREE has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [6] Group 3: Industry Context - TREE operates within the Zacks Financial - Mortgage & Related Services industry, where another company, Federal Agricultural Mortgage (AGM), closed 1.4% higher at $198.72, with a -0.6% return over the past month [6]