LENDINGTREE REPORTS THIRD QUARTER 2024 RESULTS
LendingTree reported Q3 2024 results with revenue of $260.8 million, up 68% year-over-year, driven by strong Insurance segment performance which grew 210%. The company posted a GAAP net loss of $58.0 million ($4.34 per share), including $58.4 million non-cash impairment of equity investments. Variable marketing margin was $77.2 million and Adjusted EBITDA reached $26.9 million. The Insurance segment achieved record revenue of $169.1 million and segment profit of $41.4 million. Consumer segment revenue declined 12% YoY but grew 6% sequentially, while Home segment revenue decreased 4% YoY. The company raised its full-year 2024 guidance, now expecting revenue between $870-880 million.
LendingTree ha riportato i risultati del terzo trimestre 2024 con un fatturato di 260,8 milioni di dollari, in aumento del 68% rispetto all'anno precedente, sostenuto da una forte performance del segmento Assicurazioni che è cresciuto del 210%. L'azienda ha registrato una perdita netta GAAP di 58,0 milioni di dollari (4,34 dollari per azione), inclusa una svalutazione non monetaria di 58,4 milioni di dollari sugli investimenti azionari. Il margine di marketing variabile è stato di 77,2 milioni di dollari e l'EBITDA rettificato ha raggiunto i 26,9 milioni di dollari. Il segmento Assicurazioni ha raggiunto un fatturato record di 169,1 milioni di dollari e un profitto di segmento di 41,4 milioni di dollari. Il fatturato del segmento Consumer è diminuito del 12% su base annua, ma è cresciuto del 6% rispetto al trimestre precedente, mentre il fatturato del segmento Home è diminuito del 4% su base annua. L'azienda ha aumentato le previsioni per l'intero anno 2024, ora prevedendo un fatturato compreso tra 870 e 880 milioni di dollari.
LendingTree reportó los resultados del tercer trimestre de 2024 con ingresos de 260,8 millones de dólares, un aumento del 68% en comparación con el año anterior, impulsado por un sólido desempeño en el segmento de Seguros que creció un 210%. La compañía registró una pérdida neta GAAP de 58,0 millones de dólares (4,34 dólares por acción), incluyendo 58,4 millones de dólares en deterioro no monetario de inversiones en equidad. El margen de marketing variable fue de 77,2 millones de dólares y el EBITDA ajustado alcanzó los 26,9 millones de dólares. El segmento de Seguros logró ingresos récord de 169,1 millones de dólares y una utilidad de segmento de 41,4 millones de dólares. Los ingresos del segmento de Consumidores cayeron un 12% interanualmente, pero crecieron un 6% secuencialmente, mientras que los ingresos del segmento de Vivienda disminuyeron un 4% interanualmente. La compañía elevó su guía para todo el año 2024, ahora esperando ingresos entre 870 y 880 millones de dólares.
LendingTree는 2024년 3분기 실적을 발표하였으며, 수익이 2억 6천 80만 달러로 전년 대비 68% 증가했으며, 이는 210% 증가한 보험 부문의 강력한 성과에 의해 주도되었습니다. 회사는 GAAP 기준 순손실이 5,800만 달러 (주당 4.34 달러)이며, 여기에 5,840만 달러의 비현금 자산 손상 비용이 포함되어 있습니다. 변동 마케팅 마진은 7,720만 달러였고, 조정 EBITDA는 2,690만 달러에 도달했습니다. 보험 부문은 1억 6,910만 달러의 기록적인 수익과 4,140만 달러의 부문 이익을 달성했습니다. 소비자 부문의 수익은 전년 대비 12% 감소했지만, 전 분기 대비 6% 성장했으며, 주택 부문의 수익은 전년 대비 4% 감소했습니다. 회사는 2024년 전체 매출 가이드를 상향 조정하였으며, 현재 8억 7천만에서 8억 8천만 달러 사이의 수익을 예상하고 있습니다.
LendingTree a publié les résultats du troisième trimestre 2024 avec un chiffre d'affaires de 260,8 millions de dollars, en hausse de 68 % par rapport à l'année précédente, soutenu par une forte performance du segment Assurances qui a augmenté de 210 %. L'entreprise a enregistré une perte nette GAAP de 58,0 millions de dollars (4,34 dollars par action), y compris une dépréciation non monétaire de 58,4 millions de dollars sur les investissements en actions. La marge de marketing variable était de 77,2 millions de dollars et l'EBITDA ajusté a atteint 26,9 millions de dollars. Le segment Assurances a réalisé un chiffre d'affaires record de 169,1 millions de dollars et un bénéfice de segment de 41,4 millions de dollars. Le chiffre d'affaires du segment Consommateur a diminué de 12 % d'une année sur l'autre, mais a augmenté de 6 % par rapport au trimestre précédent, tandis que le chiffre d'affaires du segment Habitat a diminué de 4 % d'une année sur l'autre. L'entreprise a révisé à la hausse ses prévisions pour l'année 2024, prévoyant désormais un chiffre d'affaires compris entre 870 et 880 millions de dollars.
LendingTree hat die Ergebnisse für das 3. Quartal 2024 berichtet und erzielt Umsätze von 260,8 Millionen Dollar, was einem Anstieg von 68 % im Jahresvergleich entspricht, unterstützt durch eine starke Performance im Segment Versicherungen, das um 210 % gewachsen ist. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 58,0 Millionen Dollar (4,34 Dollar pro Aktie), einschließlich einer nicht liquiden Wertminderung von 58,4 Millionen Dollar auf Kapitalanlagen. Die variable Marketingmarge betrug 77,2 Millionen Dollar, und das bereinigte EBITDA erreichte 26,9 Millionen Dollar. Das Segment Versicherungen erzielte einen Rekordumsatz von 169,1 Millionen Dollar und einen Segmentgewinn von 41,4 Millionen Dollar. Der Umsatz des Verbrauchersegments sank um 12 % im Jahresvergleich, stieg jedoch im Quartalsvergleich um 6 %, während der Umsatz des Wohnsegmentes um 4 % im Jahresvergleich zurückging. Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 angehoben und erwartet nun Einnahmen zwischen 870 und 880 Millionen Dollar.
- Revenue grew 68% YoY to $260.8 million
- Insurance segment revenue increased 210% YoY to $169.1 million
- Variable marketing margin improved 14% YoY to $77.2 million
- Adjusted EBITDA increased 23% YoY to $26.9 million
- Raised full-year revenue guidance to $870-880 million
- GAAP net loss of $58.0 million ($4.34 per share)
- $58.4 million non-cash impairment of equity investments
- Consumer segment revenue declined 12% YoY
- Home segment revenue decreased 4% YoY
- Home segment profit dropped 18% YoY
Insights
The Q3 2024 results reveal a mixed performance with notable strengths and challenges. Revenue grew significantly by
Key positives include the Insurance segment's record performance, improving personal loans business and
The raised full-year guidance suggests management's confidence in continued momentum, though high interest rates continue to impact the Home and Consumer segments. The company's focus on expense discipline and balance sheet management indicates a prudent approach to future growth.
The Insurance segment's performance stands out as the primary growth driver, with revenue surging to
The segment's profit margin of
Revenue Growth of
- Consolidated revenue of
$260.8 million - GAAP net loss of
$(58.0) million $(4.34) $(58.4) million - Variable marketing margin of
$77.2 million - Adjusted EBITDA of
$26.9 million - Adjusted net income per share of
$0.80
The company has posted a letter to shareholders on the company's website at investors.lendingtree.com.
"Our Insurance segment had another quarter of tremendous growth, as revenue increased
Scott Peyree, President and COO, commented, "Our Insurance business is generating record levels of revenue and VMD and should maintain momentum into 2025 as segment margin has stabilized. We are optimistic forecasted easing of interest rates by the Fed, along with a stable economy, will benefit our Consumer and Home segments next year."
Jason Bengel, CFO, added, "Our outlook for continued growth, coupled with ongoing expense discipline and targeted investment initiatives, lays the groundwork for improving financial results. As our balance sheet continues to strengthen and leverage declines, we will evaluate optimizing our capital structure to lower interest expense."
Third Quarter 2024 Business Results
- Home segment revenue of
$32.2 million 4% over third quarter 2023 and produced segment profit of$9.3 million 18% over the same period.- Within Home, revenue from Home Equity of
$21.0 million 5% over prior year.
- Within Home, revenue from Home Equity of
- Consumer segment revenue of
$59.5 million 12% over third quarter 2023, and grew6% sequentially.- Within Consumer, personal loans revenue of
$27.8 million 5% over prior year. - Revenue from our small business offering increased
32% over prior year.
- Within Consumer, personal loans revenue of
- Insurance segment revenue of
$169.1 million 210% over third quarter 2023 and translated into record segment profit of$41.4 million 77% over the same period.
LendingTree Summary Financial Metrics | |||||||||||
(In millions, except per share amounts) | |||||||||||
Three Months Ended September 30, | Y/Y | Three Months Ended | Q/Q | ||||||||
2024 | 2023 | % Change | 2024 | % Change | |||||||
Total revenue | $ 260.8 | $ 155.2 | 68 % | $ 210.1 | 24 % | ||||||
(Loss) income before income taxes | $ (57.5) | $ (152.0) | 62 % | $ 9.4 | — % | ||||||
Income tax (expense) benefit | $ (0.5) | $ 3.5 | (114) % | $ (1.6) | 69 % | ||||||
Net (loss) income | $ (58.0) | $ (148.5) | 61 % | $ 7.8 | — % | ||||||
Net (loss) income % of revenue | (22) % | (96) % | 4 % | ||||||||
(Loss) income per share | |||||||||||
Basic | $ (4.34) | $ (11.43) | $ 0.58 | ||||||||
Diluted | $ (4.34) | $ (11.43) | $ 0.58 | ||||||||
Variable marketing margin | |||||||||||
Total revenue | $ 260.8 | $ 155.2 | 68 % | $ 210.1 | 24 % | ||||||
Variable marketing expense (1) (2) | $ (183.6) | $ (87.5) | 110 % | $ (139.2) | 32 % | ||||||
Variable marketing margin (2) | $ 77.2 | $ 67.7 | 14 % | $ 70.9 | 9 % | ||||||
Variable marketing margin % of revenue (2) | 30 % | 44 % | 34 % | ||||||||
Adjusted EBITDA (2) | $ 26.9 | $ 21.8 | 23 % | $ 23.5 | 14 % | ||||||
Adjusted EBITDA % of revenue (2) | 10 % | 14 % | 11 % | ||||||||
Adjusted net income (2) | $ 10.9 | $ 7.9 | 38 % | $ 7.2 | 51 % | ||||||
Adjusted net income per share (2) | $ 0.80 | $ 0.61 | 31 % | $ 0.54 | 48 % | ||||||
(1) | Represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses. Excludes overhead, fixed costs and personnel-related expenses. |
(2) | Variable marketing expense, variable marketing margin, variable marketing margin % of revenue, adjusted EBITDA, adjusted EBITDA % of revenue, adjusted net income and adjusted net income per share are non-GAAP measures. Please see "LendingTree's Reconciliation of Non-GAAP Measures to GAAP" and "LendingTree's Principles of Financial Reporting" below for more information. |
LendingTree Segment Results | |||||||||||
(In millions) | |||||||||||
Three Months Ended September 30, | Y/Y | Three Months Ended | Q/Q | ||||||||
2024 | 2023 | % Change | 2024 | % Change | |||||||
Home (1) | |||||||||||
Revenue | $ 32.2 | $ 33.4 | (4) % | $ 32.2 | — % | ||||||
Segment profit | $ 9.3 | $ 11.3 | (18) % | $ 9.3 | — % | ||||||
Segment profit % of revenue | 29 % | 34 % | 29 % | ||||||||
Consumer (2) | |||||||||||
Revenue | $ 59.5 | $ 67.3 | (12) % | $ 55.9 | 6 % | ||||||
Segment profit | $ 28.0 | $ 34.4 | (19) % | $ 26.9 | 4 % | ||||||
Segment profit % of revenue | 47 % | 51 % | 48 % | ||||||||
Insurance (3) | |||||||||||
Revenue | $ 169.1 | $ 54.5 | 210 % | $ 122.1 | 38 % | ||||||
Segment profit | $ 41.4 | $ 23.4 | 77 % | $ 36.4 | 14 % | ||||||
Segment profit % of revenue | 24 % | 43 % | 30 % | ||||||||
Other (4) | |||||||||||
Revenue | $ — | $ — | — % | $ — | — % | ||||||
(Loss) | $ — | $ — | — % | $ (0.1) | 100 % | ||||||
Total revenue | $ 260.8 | $ 155.2 | 68 % | $ 210.1 | 24 % | ||||||
Total segment profit | $ 78.6 | $ 69.1 | 14 % | $ 72.5 | 8 % | ||||||
Brand marketing expense (5) | $ (1.4) | $ (1.4) | — % | $ (1.6) | (13) % | ||||||
Variable marketing margin | $ 77.2 | $ 67.7 | 14 % | $ 70.9 | 9 % | ||||||
Variable marketing margin % of revenue | 30 % | 44 % | 34 % | ||||||||
(1) | The Home segment includes the following products: purchase mortgage, refinance mortgage, and home equity loans. |
(2) | The Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and debt settlement. |
(3) | The Insurance segment consists of insurance quote products and sales of insurance policies. |
(4) | The Other category primarily includes marketing revenue and related expenses not allocated to a specific segment. |
(5) | Brand marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses that are not assignable to the segments' products. This measure excludes overhead, fixed costs and personnel-related expenses. |
Financial Outlook*
Today we are updating our outlook for full-year 2024, which implies the following fourth quarter outlook:
Full-year 2024:
- Revenue of
$870 $880 million $830 $870 million - Variable Marketing Margin of
$287 $292 million $280 $300 million - Adjusted EBITDA of
$92 $95 million $85 $95 million
Fourth-quarter 2024:
- Revenue:
$231 $241 million - Variable Marketing Margin:
$69 $74 million - Adjusted EBITDA:
$20 $23 million
*LendingTree is not able to provide a reconciliation of projected variable marketing margin or adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters and tax considerations. Expenses associated with legal matters and tax considerations have in the past, and may in the future, significantly affect GAAP results in a particular period.
Quarterly Conference Call
A conference call to discuss LendingTree's third quarter 2024 financial results will be webcast live today, October 31, 2024 at 4:30 PM Eastern Time (ET). The live webcast is open to the public and will be available on LendingTree's investor relations website at investors.lendingtree.com. Following completion of the call, a recorded replay of the webcast will be available on the website.
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Variable Marketing Expense
Below is a reconciliation of selling and marketing expense, the most directly comparable GAAP measure, to variable marketing expense. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of this non-GAAP measure.
Three Months Ended | |||
September 30, | June 30, | September 30, | |
(in thousands) | |||
Selling and marketing expense | $ 193,542 | $ 148,387 | $ 97,244 |
Non-variable selling and marketing expense (1) | (9,976) | (9,140) | (9,805) |
Variable marketing expense | $ 183,566 | $ 139,247 | $ 87,439 |
(1) | Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses. |
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Variable Marketing Margin
Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to variable marketing margin and net (loss) income % of revenue to variable marketing margin % of revenue. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.
Three Months Ended | |||
September 30, | June 30, | September 30, | |
(in thousands, except percentages) | |||
Net (loss) income | $ (57,978) | $ 7,752 | $ (148,465) |
Net (loss) income % of revenue | (22) % | 4 % | (96) % |
Adjustments to reconcile to variable marketing margin: | |||
Cost of revenue | 9,372 | 8,411 | 7,570 |
Non-variable selling and marketing expense (1) | 9,976 | 9,140 | 9,805 |
General and administrative expense | 26,680 | 27,118 | 26,380 |
Product development | 11,190 | 10,374 | 10,840 |
Depreciation | 4,584 | 4,601 | 4,760 |
Amortization of intangibles | 1,466 | 1,467 | 1,981 |
Goodwill impairment | — | — | 38,600 |
Restructuring and severance | 273 | 202 | 1,955 |
Litigation settlements and contingencies | 3,762 | (7) | (150) |
Interest expense (income), net | 10,060 | 1,201 | 7,097 |
Other expense (income) | 57,391 | (1,052) | 110,910 |
Income tax expense (benefit) | 447 | 1,686 | (3,534) |
Variable marketing margin | $ 77,223 | $ 70,893 | $ 67,749 |
Variable marketing margin % of revenue | 30 % | 34 % | 44 % |
(1) | Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses. |
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Adjusted EBITDA
Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to adjusted EBITDA and net (loss) income % of revenue to adjusted EBITDA % of revenue. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.
Three Months Ended | |||
September 30, | June 30, | September 30, | |
(in thousands, except percentages) | |||
Net (loss) income | $ (57,978) | $ 7,752 | $ (148,465) |
Net (loss) income % of revenue | (22) % | 4 % | (96) % |
Adjustments to reconcile to adjusted EBITDA: | |||
Amortization of intangibles | 1,466 | 1,467 | 1,981 |
Depreciation | 4,584 | 4,601 | 4,760 |
Restructuring and severance | 273 | 202 | 1,955 |
Loss on impairments and disposal of assets | 6 | 413 | 88 |
Loss on impairment of equity investments | 58,376 | — | 113,064 |
Goodwill impairment | — | — | 38,600 |
Non-cash compensation | 6,859 | 7,437 | 8,592 |
Litigation settlements and contingencies | 3,762 | (7) | (150) |
Interest expense (income), net | 10,060 | 1,201 | 7,097 |
Dividend income | (982) | (1,225) | (2,154) |
Income tax expense (benefit) | 447 | 1,686 | (3,534) |
Adjusted EBITDA | $ 26,873 | $ 23,527 | $ 21,834 |
Adjusted EBITDA % of revenue | 10 % | 11 % | 14 % |
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Adjusted Net Income
Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to adjusted net income and net (loss) income per diluted share to adjusted net income per share. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.
Three Months Ended | |||
September 30, | June 30, | September 30, | |
(in thousands, except per share amounts) | |||
Net (loss) income | $ (57,978) | $ 7,752 | $ (148,465) |
Adjustments to reconcile to adjusted net income: | |||
Restructuring and severance | 273 | 202 | 1,955 |
Goodwill impairment | — | — | 38,600 |
Loss on impairments and disposal of assets | 6 | 413 | 88 |
Loss on impairment of equity investments | 58,376 | — | 113,064 |
Non-cash compensation | 6,859 | 7,437 | 8,592 |
Litigation settlements and contingencies | 3,762 | (7) | (150) |
Gain on extinguishment of debt | (416) | (8,619) | — |
Income tax expense (benefit) from adjusted items | — | — | (5,764) |
Adjusted net income | $ 10,882 | $ 7,178 | $ 7,920 |
Net (loss) income per diluted share | $ (4.34) | $ 0.58 | $ (11.43) |
Adjustments to reconcile net (loss) income to adjusted net income | 5.16 | (0.04) | 12.04 |
Adjustments to reconcile effect of dilutive securities | (0.02) | — | — |
Adjusted net income per share | $ 0.80 | $ 0.54 | $ 0.61 |
Adjusted weighted average diluted shares outstanding | 13,555 | 13,407 | 12,999 |
Effect of dilutive securities | 206 | — | 6 |
Weighted average diluted shares outstanding | 13,349 | 13,407 | 12,993 |
Effect of dilutive securities | — | 150 | — |
Weighted average basic shares outstanding | 13,349 | 13,257 | 12,993 |
LENDINGTREE'S PRINCIPLES OF FINANCIAL REPORTING
LendingTree reports the following non-GAAP measures as supplemental to GAAP:
- Variable marketing expense
- Variable marketing margin
- Variable marketing margin % of revenue
- Earnings Before Interest, Taxes, Depreciation and Amortization, as adjusted for certain items discussed below ("Adjusted EBITDA")
- Adjusted EBITDA % of revenue
- Adjusted net income
- Adjusted net income per share
Variable marketing expense, variable marketing margin and variable marketing margin % of revenue are related measures of the effectiveness of the Company's marketing efforts. Variable marketing margin is a measure of the efficiency of the Company's operating model, measuring revenue after subtracting variable marketing expense. Variable marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing, and related expenses, and excludes overhead, fixed costs, and personnel related expenses. The Company's operating model is highly sensitive to the amount and efficiency of variable marketing expenditures, and the Company's proprietary systems are able to make rapidly changing decisions concerning the deployment of variable marketing expenditures (primarily but not exclusively online and mobile advertising placement) based on proprietary and sophisticated analytics.
Adjusted EBITDA and adjusted EBITDA % of revenue are primary metrics by which LendingTree evaluates the operating performance of its businesses, on which its marketing expenditures and internal budgets are based and, in the case of adjusted EBITDA, by which management and many employees are compensated in most years.
Adjusted net income and adjusted net income per share supplement GAAP net income and GAAP net income per diluted share by enabling investors to make period to period comparisons of those components of the most directly comparable GAAP measures that management believes better reflect the underlying financial performance of the Company's business operations during particular financial reporting periods. Adjusted net income and adjusted net income per share exclude certain amounts, such as non-cash compensation, non-cash asset impairment charges, gain/loss on disposal of assets, gain/loss on investments, restructuring and severance, litigation settlements and contingencies, acquisition and disposition income or expenses including with respect to changes in fair value of contingent consideration, gain/loss on extinguishment of debt, contributions to the LendingTree Foundation, one-time items which are recognized and recorded under GAAP in particular periods but which might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded, the effects to income taxes of the aforementioned adjustments, any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and income tax (benefit) expense from a full valuation allowance. LendingTree believes that adjusted net income and adjusted net income per share are useful financial indicators that provide a different view of the financial performance of the Company than adjusted EBITDA (the primary metric by which LendingTree evaluates the operating performance of its businesses) and the GAAP measures of net income and GAAP net income per diluted share.
These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. LendingTree provides and encourages investors to examine the reconciling adjustments between the GAAP and non-GAAP measures set forth above.
Definition of LendingTree's Non-GAAP Measures
Variable marketing margin is defined as revenue less variable marketing expense. Variable marketing expense is defined as the expense attributable to variable costs paid for advertising, direct marketing and related expenses, and excluding overhead, fixed costs and personnel-related expenses. The majority of these variable advertising costs are expressly intended to drive traffic to our websites and these variable advertising costs are included in selling and marketing expense on the Company's consolidated statements of operations and consolidated income.
EBITDA is defined as net income from continuing operations excluding interest, income taxes, amortization of intangibles and depreciation.
Adjusted EBITDA is defined as EBITDA excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) contributions to the LendingTree Foundation (9) dividend income, and (10) one-time items.
Adjusted net income is defined as net income (loss) excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) gain/loss on extinguishment of debt, (9) contributions to the LendingTree Foundation, (10) one-time items, (11) the effects to income taxes of the aforementioned adjustments, (12) any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and (13) income tax (benefit) expense from a full valuation allowance.
Adjusted net income per share is defined as adjusted net income divided by the adjusted weighted average diluted shares outstanding. For periods which the Company reports GAAP loss from continuing operations, the effects of potentially dilutive securities are excluded from the calculation of net loss per diluted share from continuing operations because their inclusion would have been anti-dilutive. In periods where the Company reports GAAP loss from continuing operations but reports positive non-GAAP adjusted net income, the effects of potentially dilutive securities are included in the denominator for calculating adjusted net income per share if their inclusion would be dilutive.
LendingTree endeavors to compensate for the limitations of these non-GAAP measures by also providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.
One-Time Items
Adjusted EBITDA and adjusted net income are adjusted for one-time items, if applicable. Items are considered one-time in nature if they are non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. For the periods presented in this report, there are no adjustments for one-time items.
Non-Cash Expenses That Are Excluded From LendingTree's Adjusted EBITDA and Adjusted Net Income
Non-cash compensation expense consists principally of expense associated with the grants of restricted stock, restricted stock units and stock options. These expenses are not paid in cash and LendingTree includes the related shares in its calculations of fully diluted shares outstanding. Upon settlement of restricted stock units, exercise of certain stock options or vesting of restricted stock awards, the awards may be settled on a net basis, with LendingTree remitting the required tax withholding amounts from its current funds. Cash expenditures for employer payroll taxes on non-cash compensation are included within adjusted EBITDA and adjusted net income.
Amortization of intangibles are non-cash expenses relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as purchase agreements, technology and customer relationships, are valued and amortized over their estimated lives. Amortization of intangibles are only excluded from adjusted EBITDA.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The matters contained in the discussion above may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations or anticipations of LendingTree and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: adverse conditions in the primary and secondary mortgage markets and in the economy, particularly interest rates and inflation; default rates on loans, particularly unsecured loans; demand by investors for unsecured personal loans; the effect of such demand on interest rates for personal loans and consumer demand for personal loans; seasonality of results; potential liabilities to secondary market purchasers; changes in the Company's relationships with network partners, including dependence on certain key network partners; breaches of network security or the misappropriation or misuse of personal consumer information; failure to provide competitive service; failure to maintain brand recognition; ability to attract and retain consumers in a cost-effective manner; the effects of potential acquisitions of other businesses, including the ability to integrate them successfully with LendingTree's existing operations; accounting rules related to excess tax benefits or expenses on stock-based compensation that could materially affect earnings in future periods; ability to develop new products and services and enhance existing ones; competition; effects of changing laws, rules or regulations on our business model; allegations of failure to comply with existing or changing laws, rules or regulations, or to obtain and maintain required licenses; failure of network partners or other affiliated parties to comply with regulatory requirements; failure to maintain the integrity of systems and infrastructure; liabilities as a result of privacy regulations; failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; and changes in management. These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the period ended December 31, 2023, in our Quarterly Report on Form 10-Q for the period ended June 30, 2024, and in our other filings with the Securities and Exchange Commission. LendingTree undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
About LendingTree, Inc.
LendingTree, Inc. is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC (collectively, "LendingTree" or the "Company").
LendingTree is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially. LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of approximately 400 financial partners. Since its founding, LendingTree has helped millions of customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins.
LendingTree, Inc. is headquartered in
Investor Relations Contact:
investors@lendingtree.com
Media Contact:
press@lendingtree.com
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SOURCE LendingTree, Inc.
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