LendingTree, Inc. (NASDAQ: $TREE) operates an online consumer platform that connects individuals, providing them with tools and resources for comparison-shopping across a range of financial products.
These include mortgage loans, home equity loans, lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes, and other related offerings. The company organizes its business into three operating and reportable segments: Home, Consumer, and Insurance.
The Home segment encompasses products like purchase mortgage, refinance mortgage, home equity loans, lines of credit, reverse mortgage loans, and real estate. The Consumer segment includes credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products such as credit repair and debt settlement.
Tree.com (TREE) Up 17.3% Since Last Earnings Report: Can It Continue?
It has been approximately a month since Tree.com (TREE) released its last earnings report. During this period, the shares have gained around 17.3%, outperforming the S&P 500.
The question now is whether this positive trend will persist leading up to the next earnings release or if Tree.com is poised for a pullback. Before delving into recent investor and analyst reactions, let’s review the most recent earnings report to better understand the key catalysts.
In the third quarter of 2023, LendingTree reported adjusted net income per share of 61 cents, surpassing the Zacks Consensus Estimate of 39 cents. This marked a notable improvement from the adjusted net loss of 36 cents reported in the same quarter of the previous year.
The company’s performance benefited from lower costs, although a decline in revenues tempered the results. Notably, management revised down the guidance for 2023.
LendingTree reported a net loss of $148.5 million, compared to a loss of $158.7 million in the year-ago quarter.
Total revenues witnessed a year-over-year decline of 34.7%, amounting to $155.2 million in the third quarter. This decrease was attributed to lower revenues in the Home, Consumer, and Insurance segments. Additionally, the reported figure fell short of the Zacks Consensus Estimate of $161.6 million.
The total cost of revenues amounted to $7.6 million, reflecting a 46.3% decrease from the previous year.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $21.8 million, marking a significant year-over-year increase. The variable marketing margin stood at $67.7 million, indicating a 9.4% decrease.
As of September 30, 2023, cash and cash equivalents were $175.6 million, compared to $298.8 million at the end of 2022. Long-term debt amounted to $625.7 million, down from $813.5 million at the end of 2022.
Who owns LendingTree?
Disappointed by his personal home-buying journey, Doug established LendingTree in 1996 to assist customers in discovering optimal loan deals. Presently, he guides the company with the same fervor and entrepreneurial determination that fueled its inception.
Is LendingTree a bank?
LendingTree operates as an advertising-supported service that compares deposit accounts. With a focus on monitoring over 10,000 banks and credit unions, LendingTree may receive advertising compensation for featuring specific products from a limited number of these financial institutions.
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