Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-34063 | |
Entity Registrant Name | LendingTree, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2414818 | |
Entity Address, Address Line One | 1415 Vantage Park Dr., Suite 700 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28203 | |
City Area Code | 704 | |
Local Phone Number | 541-5351 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | TREE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,785,635 | |
Entity Central Index Key | 0001434621 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement and Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 237,836 | $ 297,450 | $ 782,937 | $ 840,214 |
Costs and expenses: | ||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 14,105 | 15,020 | 44,240 | 42,849 |
Selling and marketing expense | 176,875 | 206,475 | 565,569 | 589,143 |
General and administrative expense | 39,540 | 40,126 | 115,802 | 114,926 |
Product development | 14,043 | 13,384 | 42,413 | 39,142 |
Depreciation | 5,274 | 4,808 | 15,024 | 12,969 |
Amortization of intangibles | 6,582 | 10,345 | 21,574 | 32,967 |
Change in fair value of contingent consideration | 0 | (196) | 0 | (8,249) |
Restructuring and severance | 0 | 47 | 3,760 | 47 |
Litigation settlements and contingencies | (7) | 22 | (41) | 360 |
Total costs and expenses | 256,412 | 290,031 | 808,341 | 824,154 |
Operating (loss) income | (18,576) | 7,419 | (25,404) | 16,060 |
Other (expense) income, net: | ||||
Interest expense, net | (5,720) | (11,826) | (19,990) | (31,881) |
Other income | 1,523 | 0 | 1,806 | 40,072 |
(Loss) income before income taxes | (22,773) | (4,407) | (43,588) | 24,251 |
Income tax (expense) benefit | (135,910) | 1 | (133,956) | 455 |
Net (loss) income from continuing operations | (158,683) | (4,406) | (177,544) | 24,706 |
Loss from discontinued operations, net of tax | (1) | (54) | (4) | (3,516) |
Net (loss) income and comprehensive (loss) income | (158,684) | (4,460) | (177,548) | 21,190 |
Comprehensive (loss) income | $ (158,684) | $ (4,460) | $ (177,548) | $ 21,190 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 12,758 | 13,268 | 12,794 | 13,194 |
Diluted (in shares) | 12,758 | 13,268 | 12,794 | 13,797 |
(Loss) income per share from continuing operations: | ||||
Basic (in dollars per share) | $ (12.44) | $ (0.33) | $ (13.88) | $ 1.87 |
Diluted (in dollars per share) | (12.44) | (0.33) | (13.88) | 1.79 |
Loss per share from discontinued operations: | ||||
Basic (in dollars per share) | 0 | 0 | 0 | (0.27) |
Diluted (in dollars per share) | 0 | 0 | 0 | (0.25) |
Net (loss) income per share: | ||||
Basic (in dollars per share) | (12.44) | (0.34) | (13.88) | 1.61 |
Diluted (in dollars per share) | $ (12.44) | $ (0.34) | $ (13.88) | $ 1.54 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Cash and cash equivalents | $ 285,538 | $ 251,231 |
Restricted cash and cash equivalents | 127 | 111 |
Accounts receivable (net of allowance of $2,356 and $1,456, respectively) | 96,330 | 97,658 |
Prepaid and other current assets | 28,466 | 25,379 |
Total current assets | 410,461 | 374,379 |
Property and equipment (net of accumulated depreciation of $33,211 and $28,315, respectively) | 64,848 | 72,477 |
Operating lease right-of-use assets | 69,770 | 77,346 |
Goodwill | 420,139 | 420,139 |
Intangible assets, net | 64,189 | 85,763 |
Deferred income tax assets | 0 | 87,581 |
Equity investments | 174,580 | 158,140 |
Other non-current assets | 6,308 | 6,942 |
Non-current assets of discontinued operations | 0 | 16,589 |
Total assets | 1,210,295 | 1,299,356 |
LIABILITIES: | ||
Current portion of long-term debt | 2,484 | 166,008 |
Accounts payable, trade | 4,583 | 1,692 |
Accrued expenses and other current liabilities | 84,464 | 106,731 |
Current liabilities of discontinued operations | 0 | 1 |
Total current liabilities | 91,531 | 274,432 |
Long-term debt | 813,395 | 478,151 |
Operating lease liabilities | 90,532 | 96,165 |
Deferred income tax liabilities | 8,059 | 2,265 |
Other non-current liabilities | 281 | 351 |
Total liabilities | 1,003,798 | 851,364 |
Commitments and contingencies (Note $13) | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock $.01 par value; 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock $.01 par value; 50,000,000 shares authorized; 16,140,103 and 16,070,720 shares issued, respectively, and 12,784,637 and 13,095,149 shares outstanding, respectively | 161 | 161 |
Additional paid-in capital | 1,177,409 | 1,242,794 |
Accumulated deficit | (704,895) | (571,794) |
Treasury stock; 3,355,466 and 2,975,571 shares, respectively | (266,178) | (223,169) |
Total shareholders' equity | 206,497 | 447,992 |
Total liabilities and shareholders' equity | $ 1,210,295 | $ 1,299,356 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 2,356 | $ 1,456 |
Accumulated depreciation | $ 33,211 | $ 28,315 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 16,140,103 | 16,070,720 |
Common stock, shares outstanding | 12,784,637 | 13,095,149 |
Treasury stock, shares | 3,355,466 | 2,975,571 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance, treasury (in shares) | 2,641,000 | |||||||
Beginning balance at Dec. 31, 2020 | $ 364,761 | $ 158 | $ 1,188,673 | $ (640,909) | $ (183,161) | |||
Beginning balance, common (in shares) at Dec. 31, 2020 | 15,766,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 19,049 | 19,049 | ||||||
Comprehensive income (loss) | 19,049 | 19,049 | ||||||
Non-cash compensation | 16,436 | 16,436 | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations | (4,801) | (4,801) | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations (in shares) | 31,000 | |||||||
Other | (2) | (2) | ||||||
Ending balance at Mar. 31, 2021 | 395,443 | $ 158 | 1,200,306 | (621,860) | $ (183,161) | |||
Ending balance, common (in shares) at Mar. 31, 2021 | 15,797,000 | |||||||
Ending balance, treasury (in shares) at Mar. 31, 2021 | 2,641,000 | |||||||
Beginning balance at Dec. 31, 2020 | 364,761 | $ 158 | 1,188,673 | (640,909) | $ (183,161) | |||
Beginning balance, common (in shares) at Dec. 31, 2020 | 15,766,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 21,190 | |||||||
Comprehensive income (loss) | 21,190 | |||||||
Ending balance at Sep. 30, 2021 | 431,082 | $ 160 | 1,233,802 | (619,719) | $ (183,161) | |||
Ending balance, common (in shares) at Sep. 30, 2021 | 15,969,000 | |||||||
Ending balance, treasury (in shares) at Sep. 30, 2021 | 2,641,000 | |||||||
Beginning balance at Dec. 31, 2020 | 364,761 | $ 158 | 1,188,673 | (640,909) | $ (183,161) | |||
Beginning balance, common (in shares) at Dec. 31, 2020 | 15,766,000 | |||||||
Ending balance at Dec. 31, 2021 | $ 447,992 | $ (65,303) | $ 161 | 1,242,794 | $ (109,750) | (571,794) | $ 44,447 | $ (223,169) |
Ending balance, common (in shares) at Dec. 31, 2021 | 13,095,149 | 16,071,000 | ||||||
Ending balance, treasury (in shares) at Dec. 31, 2021 | 2,976,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||
Beginning balance, treasury (in shares) | 2,641,000 | |||||||
Beginning balance at Mar. 31, 2021 | $ 395,443 | $ 158 | 1,200,306 | (621,860) | $ (183,161) | |||
Beginning balance, common (in shares) at Mar. 31, 2021 | 15,797,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 6,601 | 6,601 | ||||||
Comprehensive income (loss) | 6,601 | 6,601 | ||||||
Non-cash compensation | 18,294 | 18,294 | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations | 30 | $ 2 | 28 | |||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations (in shares) | 159,000 | |||||||
Ending balance at Jun. 30, 2021 | 420,368 | $ 160 | 1,218,628 | (615,259) | $ (183,161) | |||
Ending balance, common (in shares) at Jun. 30, 2021 | 15,956,000 | |||||||
Ending balance, treasury (in shares) at Jun. 30, 2021 | 2,641,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance, treasury (in shares) | 2,641,000 | |||||||
Net income (loss) | (4,460) | (4,460) | ||||||
Comprehensive income (loss) | (4,460) | (4,460) | ||||||
Non-cash compensation | 17,074 | 17,074 | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations | (1,894) | (1,894) | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations (in shares) | 13,000 | |||||||
Other | (6) | (6) | ||||||
Ending balance at Sep. 30, 2021 | 431,082 | $ 160 | 1,233,802 | (619,719) | $ (183,161) | |||
Ending balance, common (in shares) at Sep. 30, 2021 | 15,969,000 | |||||||
Ending balance, treasury (in shares) at Sep. 30, 2021 | 2,641,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance, treasury (in shares) | 2,641,000 | |||||||
Beginning balance, treasury (in shares) | 2,976,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ 447,992 | (65,303) | $ 161 | 1,242,794 | (109,750) | (571,794) | 44,447 | $ (223,169) |
Beginning balance, common (in shares) at Dec. 31, 2021 | 13,095,149 | 16,071,000 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | $ (10,826) | (10,826) | ||||||
Comprehensive income (loss) | (10,826) | (10,826) | ||||||
Non-cash compensation | 15,080 | 15,080 | ||||||
Purchase of treasury stock | (43,009) | $ (43,009) | ||||||
Purchase of treasury stock (in shares) | 379,000 | |||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations | (3,086) | (3,086) | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations (in shares) | 49,000 | |||||||
Ending balance at Mar. 31, 2022 | 340,848 | $ 161 | 1,145,038 | (538,173) | $ (266,178) | |||
Ending balance, common (in shares) at Mar. 31, 2022 | 16,120,000 | |||||||
Ending balance, treasury (in shares) at Mar. 31, 2022 | 3,355,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ 447,992 | $ (65,303) | $ 161 | 1,242,794 | $ (109,750) | (571,794) | $ 44,447 | $ (223,169) |
Beginning balance, common (in shares) at Dec. 31, 2021 | 13,095,149 | 16,071,000 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | $ (177,548) | |||||||
Comprehensive income (loss) | $ (177,548) | |||||||
Purchase of treasury stock (in shares) | 379,895 | |||||||
Ending balance at Sep. 30, 2022 | $ 206,497 | $ 161 | 1,177,409 | (704,895) | $ (266,178) | |||
Ending balance, common (in shares) at Sep. 30, 2022 | 12,784,637 | 16,140,000 | ||||||
Ending balance, treasury (in shares) at Sep. 30, 2022 | 3,355,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance, treasury (in shares) | 3,355,000 | |||||||
Beginning balance at Mar. 31, 2022 | $ 340,848 | $ 161 | 1,145,038 | (538,173) | $ (266,178) | |||
Beginning balance, common (in shares) at Mar. 31, 2022 | 16,120,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (8,038) | (8,038) | ||||||
Comprehensive income (loss) | (8,038) | (8,038) | ||||||
Non-cash compensation | 17,335 | 17,335 | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations | 341 | 341 | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations (in shares) | 21,000 | |||||||
Ending balance at Jun. 30, 2022 | 350,486 | $ 161 | 1,162,714 | (546,211) | $ (266,178) | |||
Ending balance, common (in shares) at Jun. 30, 2022 | 16,141,000 | |||||||
Ending balance, treasury (in shares) at Jun. 30, 2022 | 3,355,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance, treasury (in shares) | 3,355,000 | |||||||
Net income (loss) | (158,684) | (158,684) | ||||||
Comprehensive income (loss) | (158,684) | (158,684) | ||||||
Non-cash compensation | 15,575 | 15,575 | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations | (880) | (880) | ||||||
Issuance of common stock for stock options, employee stock purchase plan, restricted stock awards and restricted stock units, net of withholding taxes and cancellations (in shares) | (1,000) | |||||||
Ending balance at Sep. 30, 2022 | $ 206,497 | $ 161 | $ 1,177,409 | $ (704,895) | $ (266,178) | |||
Ending balance, common (in shares) at Sep. 30, 2022 | 12,784,637 | 16,140,000 | ||||||
Ending balance, treasury (in shares) at Sep. 30, 2022 | 3,355,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance, treasury (in shares) | 3,355,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities attributable to continuing operations: | ||
Net (loss) income and comprehensive (loss) income | $ (177,548) | $ 21,190 |
Less: Loss from discontinued operations, net of tax | 4 | 3,516 |
Net (loss) income from continuing operations | (177,544) | 24,706 |
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities attributable to continuing operations: | ||
Loss on impairments and disposal of assets | 4,261 | 2,651 |
Amortization of intangibles | 21,574 | 32,967 |
Depreciation | 15,024 | 12,969 |
Non-cash compensation expense | 47,990 | 51,804 |
Deferred income taxes | 133,943 | (455) |
Change in fair value of contingent consideration | 0 | (8,249) |
Gain on investments | 0 | (40,072) |
Bad debt expense | 2,708 | 1,823 |
Amortization of debt issuance costs | 5,443 | 3,756 |
Write-off of previously-capitalized debt issuance costs | 0 | 1,066 |
Amortization of debt discount | 1,475 | 22,297 |
Reduction in carrying amount of ROU asset, offset by change in operating lease liabilities | (890) | 13,015 |
Changes in current assets and liabilities: | ||
Accounts receivable | (1,380) | (43,688) |
Prepaid and other current assets | (6,271) | (2,762) |
Accounts payable, accrued expenses and other current liabilities | (19,146) | 7,537 |
Income taxes receivable | (389) | 10,322 |
Other, net | (469) | (794) |
Net cash provided by operating activities attributable to continuing operations | 26,329 | 88,893 |
Cash flows from investing activities attributable to continuing operations: | ||
Capital expenditures | (8,970) | (30,515) |
Equity investments | (16,440) | (1,180) |
Net cash used in investing activities attributable to continuing operations | (25,410) | (31,695) |
Cash flows from financing activities attributable to continuing operations: | ||
Proceeds from term loan | 250,000 | 0 |
Repayment of term loan | (625) | 0 |
Repurchase of 0.625% Convertible Senior Notes | (169,659) | 0 |
Payments related to net-share settlement of stock-based compensation, net of proceeds from exercise of stock options | (3,292) | (6,666) |
Purchase of treasury stock | (43,009) | 0 |
Payment of debt issuance costs | (4) | (5,995) |
Payment of original issue discount on undrawn term loan | 0 | (2,500) |
Other financing activities | 0 | (31) |
Net cash provided by (used in) financing activities attributable to continuing operations | 33,411 | (15,192) |
Total cash provided by continuing operations | 34,330 | 42,006 |
Net cash (used in) provided by operating activities attributable to discontinued operations | (7) | 3,330 |
Total cash (used in) provided by discontinued operations | (7) | 3,330 |
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 34,323 | 45,336 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 251,342 | 170,049 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 285,665 | $ 215,385 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) | Sep. 30, 2022 | Sep. 30, 2021 | May 31, 2017 | May 31, 2017 Rate |
2022 Convertible Notes | ||||
Annual interest rate on convertible senior notes | 0.625% | 0.625% | 0.625% | 0.625% |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Company Overview LendingTree, Inc. is the parent of LT Intermediate Company, LLC, which holds all of the outstanding ownership interests of LendingTree, LLC, and LendingTree, LLC owns several companies (collectively, “LendingTree” or the “Company”). LendingTree operates what it believes to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes, sales of insurance policies and other related offerings. The Company primarily seeks to match in-market consumers with multiple providers on its marketplace who can provide them with competing quotes for loans, deposit products, insurance or other related offerings they are seeking. The Company also serves as a valued partner to lenders and other providers seeking an efficient, scalable and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these providers. The consolidated financial statements include the accounts of LendingTree and all its wholly-owned entities, except Home Loan Center, Inc. (“HLC”) subsequent to its bankruptcy filing on July 21, 2019, which resulted in the Company's loss of a controlling interest in HLC under applicable accounting standards. Intercompany transactions and accounts have been eliminated. The HLC Bankruptcy case was closed on July 14, 2021. The HLC entity was legally dissolved in the first quarter of 2022. See Note 16—Discontinued Operations for additional information. Discontinued Operations The LendingTree Loans business, which consisted of originating various consumer mortgage loans through HLC (the “LendingTree Loans Business”), is presented as discontinued operations in the accompanying consolidated balance sheets, consolidated statements of operations and comprehensive income and consolidated statements of cash flows for all periods presented. The notes accompanying these consolidated financial statements reflect the Company's continuing operations and, unless otherwise noted, exclude information related to the discontinued operations. See Note 16 — Discontinued Operations for additional information. Basis of Presentation |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Accounting Estimates Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates. Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; fair value of assets acquired in a business combination; contingent consideration related to business combinations; litigation accruals; contract assets; various other allowances, reserves and accruals; assumptions related to the determination of stock-based compensation; and the determination of right-of-use assets and lease liabilities. The Company considered the impact of the COVID-19 pandemic on the assumptions and estimates used when preparing its financial statements including, but not limited to, the allowance for doubtful accounts, valuation allowances, contract asset and contingent consideration. These assumptions and estimates may change as new events occur and additional information is obtained. If economic conditions caused by the COVID-19 pandemic do not recover as currently estimated by management, such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity. Certain Risks and Concentrations LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. Financial instruments, which potentially subject the Company to concentration of credit risk at September 30, 2022, consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company requires certain Network Partners to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding. Due to the nature of the mortgage lending industry, interest rate fluctuations may negatively impact future revenue from the Company's marketplace. Lenders and lead purchasers participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders and lead purchasers can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans and other products from Network Partners without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the Network Partners whose loans and other financial products are offered on its online marketplace, consumers may obtain offers from these Network Partners without using its service. Other than a support services office in India, the Company's operations are geographically limited to and dependent upon the economic condition of the United States. Litigation Settlements and Contingencies Litigation settlements and contingencies consists of expenses related to actual or anticipated litigation settlements. Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for convertible instruments, amends the derivatives scope exception guidance for contracts in an entity’s own equity, and amends the related earnings-per-share guidance. Under the new guidance, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Additionally, the new guidance requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. This ASU is effective for annual and interim reporting periods beginning after December 15, 2021, with early adoption permitted for periods beginning after December 15, 2020. An entity may adopt the amendments through either a modified retrospective method of transition or a fully retrospective method of transition. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective transition approach and recognized the cumulative effect of initially applying ASU 2020-06 as a $44.4 million adjustment to the opening balance of accumulated deficit, comprised of $60.8 million for the interest adjustment, net of $16.4 million for the related tax impacts. The recombination of the equity conversion component of our convertible debt remaining outstanding caused a reduction in additional paid-in capital and an increase in deferred income tax assets. The removal of the remaining debt discounts recorded for this previous separation had the effect of increasing our net debt balance. ASU 2020-06 also requires the dilutive impact of convertible debt instruments to utilize the if-converted method when calculating diluted earnings per share and the result is more dilutive. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. See Note 12—Debt for further information. The cumulative effect of the changes made to the consolidated January 1, 2022 balance sheet for the adoption of ASU 2020-06 were as follows (in thousands): December 31, 2021 Adjustments due to January 1, 2022 Assets: Deferred income tax assets $ 87,581 $ 23,979 $ 111,560 Liabilities: Current portion of long-term debt $ 166,008 $ 3,213 $ 169,221 Long-term debt 478,151 86,069 564,220 Shareholders' equity: Additional paid-in capital $ 1,242,794 $ (109,750) $ 1,133,044 Accumulated deficit (571,794) 44,447 (527,347) The adoption of ASU 2020-06 did not impact our cash flows or compliance with debt covenants. Recently Issued Accounting Pronouncements The Company has considered the applicability of recently issued accounting pronouncements by the Financial Accounting Standards Board and have determined that they are not applicable or are not expected to have a material impact on our consolidated financial statements. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue is as follows (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Home $ 64,927 $ 112,422 $ 240,809 $ 345,408 Credit cards 24,298 26,914 81,426 66,975 Personal loans 37,701 33,803 115,209 73,879 Other Consumer 40,662 39,294 113,238 92,740 Total Consumer 102,661 100,011 309,873 233,594 Insurance 70,231 84,837 232,025 260,714 Other 17 180 230 498 Total revenue $ 237,836 $ 297,450 $ 782,937 $ 840,214 The Company derives its revenue primarily from match fees and closing fees. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied and promised services have transferred to the customer. The Company's services are generally transferred to the customer at a point in time. Revenue from Home products is primarily generated from upfront match fees paid by mortgage Network Partners that receive a loan request, and in some cases upfront fees for clicks or call transfers. Match fees and upfront fees for clicks and call transfers are earned through the delivery of loan requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a loan request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a loan request to the customer. Revenue from Consumer products is generated by match and other upfront fees for clicks or call transfers, as well as from closing fees, approval fees and upfront service and subscription fees. Closing fees are derived from lenders on certain auto loans, business loans, personal loans and student loans when the lender funds a loan with the consumer. Approval fees are derived from credit card issuers when the credit card consumer receives card approval from the credit card issuer. Upfront service fees and subscription fees are derived from consumers in the Company's credit services product. Upfront fees paid by consumers are recognized as revenue over the estimated time the consumer will remain a customer and receive services. Subscription fees are recognized over the period a consumer is receiving services. The Company recognizes revenue on closing fees and approval fees at the point when a loan request or a credit card consumer is delivered to the customer. The Company's contractual right to closing fees and approval fees is not contemporaneous with the satisfaction of the performance obligation to deliver a loan request or a credit card consumer to the customer. As such, the Company records a contract asset at each reporting period-end related to the estimated variable consideration on closing fees and approval fees for which the Company has satisfied the related performance obligation but are still pending the loan closing or credit card approval before the Company has a contractual right to payment. This estimate is based on the Company's historical closing rates and historical time between when a consumer request for a loan or credit card is delivered to the lender or card issuer and when the loan is closed by the lender or approved by the card issuer. Revenue from the Company's Insurance products is primarily generated from upfront match fees and upfront fees for website clicks or fees for calls. Match fees and upfront fees for clicks and call transfers are earned through the delivery of consumer requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a consumer request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a consumer request to the customer. The contract asset recorded within prepaid and other current assets on the consolidated balance sheets related to estimated variable consideration was $12.2 million and $9.1 million at September 30, 2022 and December 31, 2021, respectively. The contract liability recorded within accrued expenses and other current liabilities on the consolidated balance sheets related to upfront fees paid by consumers was $0.9 million and $0.8 million at September 30, 2022 and December 31, 2021, respectively. During the first nine months of 2022, the Company recognized revenue of $0.8 million that was included in the contract liability balance at December 31, 2021. During the first nine months of 2021, the Company recognized revenue of $0.7 million that was included in the contract liability balance at December 31, 2020. Revenue recognized in any reporting period includes estimated variable consideration for which the Company has satisfied the related performance obligations but are still pending the occurrence or non-occurrence of a future event outside the Company's control (such as lenders providing loans to consumers or credit card approvals of consumers) before the Company has a contractual right to payment. The Company recognized increases to such revenue from prior periods. This increase was $0.1 million in the third quarter of 2022, and was $0.4 million in the third quarter of 2021. |
CASH AND RESTRICTED CASH
CASH AND RESTRICTED CASH | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND RESTRICTED CASH | CASH AND RESTRICTED CASH Total cash, cash equivalents, restricted cash and restricted cash equivalents consist of the following (in thousands) : September 30, December 31, Cash and cash equivalents $ 285,538 $ 251,231 Restricted cash and cash equivalents 127 111 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 285,665 $ 251,342 |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are stated at amounts due from customers, net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, previous loss history, current and expected economic conditions and the specific customer's current and expected ability to pay its obligation. Accounts receivable are considered past due when they are outstanding longer than the contractual payment terms. Accounts receivable are written off when management deems them uncollectible. A reconciliation of the beginning and ending balances of the allowance for doubtful accounts is as follows (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance, beginning of the period $ 2,300 $ 1,473 $ 1,456 $ 1,402 Charges to earnings 679 678 2,708 1,823 Write-off of uncollectible accounts receivable (623) (645) (1,808) (1,724) Recoveries collected — — — 5 Balance, end of the period $ 2,356 $ 1,506 $ 2,356 $ 1,506 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The balance of goodwill, net and intangible assets, net is as follows (in thousands) : September 30, December 31, Goodwill $ 903,227 $ 903,227 Accumulated impairment losses (483,088) (483,088) Net goodwill $ 420,139 $ 420,139 Intangible assets with indefinite lives $ 10,142 $ 10,142 Intangible assets with definite lives, net 54,047 75,621 Total intangible assets, net $ 64,189 $ 85,763 Goodwill and Indefinite-Lived Intangible Assets The Company's goodwill at each of September 30, 2022 and December 31, 2021 consists of $59.3 million associated with the Home segment, $166.1 million associated with the Consumer segment, and $194.7 million associated with the Insurance segment. At June 30, 2022, the Company assessed the qualitative factors in its impairment testing of goodwill and determined that the effects of the challenging interest rate environment, consumer price inflation, and the decline in the Company's market capitalization required a quantitative impairment test be performed. The quantitative goodwill impairment test found that the fair value of each reporting unit exceeded its carrying amount, indicating no goodwill impairment. The Company will monitor the recovery of the Insurance reporting unit. The property and casualty auto industry is experiencing challenges caused by inflation, supply chain challenges, and rising severity and frequency of claims. Changes in the timing of the recovery compared to current expectations could cause an impairment to the Insurance reporting unit. Intangible assets with indefinite lives relate to the Company's trademarks. Intangible Assets with Definite Lives Intangible assets with definite lives relate to the following (in thousands) : Cost Accumulated Net Technology $ 74,900 $ (71,108) $ 3,792 Customer lists 77,300 (29,248) 48,052 Trademarks and tradenames 10,700 (8,497) 2,203 Balance at September 30, 2022 $ 162,900 $ (108,853) $ 54,047 Cost Accumulated Net Technology $ 87,700 $ (69,369) $ 18,331 Customer lists 77,300 (24,668) 52,632 Trademarks and tradenames 11,700 (7,767) 3,933 Website content 26,100 (25,375) 725 Balance at December 31, 2021 $ 202,800 $ (127,179) $ 75,621 Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on balances as of September 30, 2022, future amortization is estimated to be as follows (in thousands) : Amortization Expense Remainder of current year $ 3,682 Year ending December 31, 2023 8,602 Year ending December 31, 2024 6,747 Year ending December 31, 2025 6,259 Year ending December 31, 2026 5,504 Thereafter 23,253 Total intangible assets with definite lives, net $ 54,047 |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS In January 2022, the Company acquired an equity interest in EarnUp Inc. (“EarnUp”) for $15.0 million. The company is a consumer-first mortgage payment platform that intelligently automates loan payment scheduling and helps consumers better manage their money and improve their financial well-being. On February 28, 2020, the Company acquired an equity interest in Stash Financial, Inc. (“Stash”) for $80.0 million. On January 6, 2021, the Company acquired an additional equity interest for $1.2 million. On October 18, 2021, the Company entered into a stock transfer agreement with third parties to sell a portion of its Stash equity securities for $46.3 million. The Company sold $35.3 million in October and closed on an additional $11.0 million in November 2021. The Company recorded a realized gain of $27.9 million based on the sale of Stash equity securities under the stock transfer agreement, which is included within other income on the consolidated statement of operations and comprehensive income. Stash is a consumer investing and banking platform. Stash brings together banking, investing, and financial services education into one seamless experience offering a full suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back® rewards program. The equity securities do not have a readily determinable fair value and, upon acquisition, the Company elected the measurement alternative to value its securities. The equity securities will be carried at cost less impairment, if any, and subsequently measured to fair value upon observable price changes in an orderly transaction for the identical or similar investments with any gains or losses recorded to the consolidated statement of operations and comprehensive income. In 2021, the Company recorded a net unrealized gain on the investment in Stash of $95.4 million as a result of an adjustment to the fair value of the Stash equity securities based on observable price changes, which is included within other income on the consolidated statement of operations and comprehensive income. As of September 30, 2022, there have been no impairments to the acquisition cost of the equity securities. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands) : September 30, December 31, Accrued advertising expense $ 48,162 $ 59,150 Accrued compensation and benefits 8,954 16,330 Accrued professional fees 3,021 1,887 Customer deposits and escrows 7,442 7,546 Contribution to LendingTree Foundation — 3,333 Current lease liabilities 8,909 8,595 Other 7,976 9,890 Total accrued expenses and other current liabilities $ 84,464 $ 106,731 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Basic and diluted income per share was determined based on the following share data (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Weighted average basic common shares 12,758 13,268 12,794 13,194 Effect of stock options — — — 452 Effect of dilutive share awards — — — 96 Effect of Convertible Senior Notes and warrants — — — 55 Weighted average diluted common shares 12,758 13,268 12,794 13,797 For the third quarter and first nine months of 2022, the Company had losses from continuing operations and, as a result, no potentially dilutive securities were included in the denominator for computing diluted loss per share, because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding was used to compute loss per share. Approximately 0.1 million and 0.2 million shares related to potentially dilutive securities were excluded from the calculation of diluted loss per share for the third quarter and first nine months of 2022 respectively, because their inclusion would have been anti-dilutive. Approximately 0.4 million shares related to potentially dilutive securities were excluded from the calculation of diluted loss per share for the third quarter of 2021. For the third quarter of 2022, the weighted average shares that were anti-dilutive, and therefore excluded from the calculation of diluted income per share, included options to purchase 1.0 million shares of common stock and 0.5 million restricted stock units. For the first nine months of 2022, the weighted average shares that were anti-dilutive, and therefore excluded from the calculation of diluted income per share, included options to purchase 1.0 million shares of common stock and 0.4 million restricted stock units. For the third quarter of 2021, the weighted average shares that were anti-dilutive, and therefore excluded from the calculation of diluted income per share, included options to purchase 0.9 million shares of common stock and 0.2 million restricted stock units. For the first nine months of 2021, the weighted average shares that were anti-dilutive included options to purchase 0.4 million shares of common stock and 0.1 million restricted stock units. The convertible notes and the warrants issued by the Company could be converted into the Company’s common stock, subject to certain contingencies. See Note 12—Debt for additional information. On January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method. Following the adoption, the if-converted method is used for diluted net income per share calculation of our convertible notes. Prior to the adoption of ASU 2020-06 the dilutive impact of the convertible notes was calculated using the treasury stock method. See Note 2—Significant Accounting Policies for additional information. Approximately 1.2 million shares and 2.1 million shares related to the potentially dilutive shares of the Company's common stock associated with the 0.50% Convertible Senior Notes due July 15, 2025 and the 0.625% Convertible Senior Notes due June 1, 2022 were excluded from the calculation of diluted loss per share for the third quarter and first nine months of 2022, respectively, because their inclusion would have been anti-dilutive. Shares of the Company's stock associated with the warrants issued by the Company in 2017 and 2020 were excluded from the calculation of diluted loss per share for the third quarter and first nine months of 2022 and 2021 as they were anti-dilutive since the strike price of the warrants was greater than the average market price of the Company's common stock during the relevant periods. Shares of the Company's common stock associated with the 0.50% Convertible Senior Notes due July 15, 2025 were excluded from the calculation of diluted income per share for the third quarter and first nine months of 2021 and shares of the Company's common stock associated with the 0.625% Convertible Senior Notes due June 1, 2022 were excluded in the third quarter of 2021 as they were anti-dilutive since the conversion price of the notes was greater than the average market price of the Company's common stock during the relevant periods. The employee stock purchase plan did not have a material impact to the calculation of diluted shares. Common Stock Repurchases In each of February 2018 and February 2019, the board of directors authorized and the Company announced the repurchase of up to $100.0 million and $150.0 million, respectively, of LendingTree's common stock. During the nine months ended September 30, 2022, the Company purchased 379,895 shares of its common stock pursuant to this stock repurchase program. At September 30, 2022, approximately $96.7 million of the previous authorizations to repurchase common stock remain available. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of revenue $ 417 $ 371 $ 1,252 $ 1,231 Selling and marketing expense 2,198 1,805 6,522 5,583 General and administrative expense 11,212 13,233 32,685 38,658 Product development 1,748 1,665 6,448 6,332 Restructuring and severance — — 1,083 — Total non-cash compensation $ 15,575 $ 17,074 $ 47,990 $ 51,804 Stock Options A summary of changes in outstanding stock options is as follows: Number of Options Weighted Weighted Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2022 676,293 $ 169.71 Granted (b) 157,632 103.54 Exercised — — Forfeited (20,089) 205.97 Expired (6,475) 256.11 Options outstanding at September 30, 2022 807,361 155.20 5.47 $ 3 Options exercisable at September 30, 2022 489,581 $ 126.08 3.39 $ 3 (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $23.86 on the last trading day of the quarter ended September 30, 2022 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on September 30, 2022. The intrinsic value changes based on the market value of the Company's common stock. (b) During the nine months ended September 30, 2022, the Company granted stock options to certain employees with a weighted average grant date fair value per share of $53.21, calculated using the Black-Scholes option pricing model, which vesting periods include (1) immediate vesting on grant date (b) earlier of one year from grant date and the Company's annual meeting of stockholders for 2023 and (c) three years from grant date. For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the stock options was estimated using the Black-Scholes option pricing model, which requires the use of various key assumptions. The weighted average assumptions used are as follows: Expected term (1) 5.00 - 6.00 years Expected dividend (2) — Expected volatility (3) 53 - 56% Risk-free interest rate (4) 1.62 - 3.23% (1) The expected term of stock options granted was calculated using the “Simplified Method,” which utilizes the midpoint between the weighted average time of vesting and the end of the contractual term. This method was utilized for the stock options due to a lack of historical exercise behavior by the Company's employees. (2) For all stock options granted in 2022, no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate. (3) The expected volatility rate is based on the historical volatility of the Company's common stock. (4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date. Stock Options with Market Conditions A summary of changes in outstanding stock options with market conditions at target is as follows: Number of Options with Market Conditions Weighted Weighted Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2022 700,209 $ 236.01 Granted 47,639 195.10 Exercised — — Forfeited — — Expired (13,163) 378.95 Options outstanding at September 30, 2022 734,685 230.79 5.94 $ — Options exercisable at September 30, 2022 481,669 $ 195.10 4.85 $ — (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $23.86 on the last trading day of the quarter ended September 30, 2022 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on September 30, 2022. The intrinsic value changes based on the market value of the Company's common stock. As of September 30, 2022, a maximum of 422,537 shares may be earned for achieving superior performance up to 167% of the remaining unvested target number of shares. As of September 30, 2022, no additional performance-based nonqualified stock options with a market condition had been earned. Restricted Stock Units A summary of changes in outstanding nonvested restricted stock units (“RSUs”) is as follows: RSUs Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2022 308,068 $ 226.55 Granted 402,960 101.14 Vested (125,961) 243.60 Forfeited (79,112) 167.83 Nonvested at September 30, 2022 505,955 $ 131.60 Restricted Stock Units with Performance Conditions A summary of changes in outstanding nonvested RSUs with performance conditions is as follows: RSUs with Performance Conditions Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2022 — $ — Granted 16,000 83.25 Vested — — Forfeited — — Nonvested at September 30, 2022 16,000 $ 83.25 A maximum of 24,000 shares may be earned for achieving superior performance up to 150% of the target number of shares. Restricted Stock Awards with Market Conditions A summary of changes in outstanding nonvested RSAs with market conditions at target is as follows: RSAs with Market Conditions Number of Awards Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2022 26,674 $ 340.25 Granted 2,927 340.25 Vested (29,601) 340.25 Forfeited — — Nonvested at September 30, 2022 — $ — Employee Stock Purchase Plan In 2021, the Company implemented an employee stock purchase plan (“ESPP”), under which a total of 262,731 shares of the Company's common stock were reserved for issuance. As of September 30, 2022, 243,929 shares of common stock were available for issuance under the ESPP. The ESPP is a tax-qualified plan under Section 423 of the Internal Revenue Code. Under the terms of the ESPP, eligible employees are granted options to purchase shares of the Company's common stock at 85% of the lesser of (1) the fair market value at time of grant or (2) the fair market value at time of exercise. The offering periods and purchase periods are typically six-month periods ending on June 30 and December 31 of each year. During the nine months ended September 30, 2022, 13,259 shares were issued under the ESPP. During the nine months ended September 30, 2022, the Company granted employee stock purchase rights to certain employees with a grant date fair value per share of $20.96, calculated using the Black-Scholes option pricing model. For purposes of determining stock-based compensation expense, the grant date fair value per share estimated using the Black-Scholes option pricing model required the use of the following key assumptions: Expected term (1) 0.50 years Expected dividend (2) — Expected volatility (3) 49 - 73% Risk-free interest rate (4) 0.19 - 2.51% (1) The expected term was calculated using the time period between the grant date and the purchase date. (2) No dividends are expected to be paid, resulting in a zero expected dividend rate. (3) The expected volatility rate is based on the historical volatility of the Company's common stock. (4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the employee stock purchase rights, in effect at the grant date. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands, except percentages) Income tax (expense) benefit $ (135,910) $ 1 $ (133,956) $ 455 Effective tax rate (596.8) % — % (307.3) % (1.9) % For the third quarter and first nine months of 2022, the effective tax rate varied from the federal statutory rate of 21% primarily due to expense of $139.7 million to record a full valuation allowance against our net deferred tax assets, excess tax expense of $1.8 million and $4.7 million, respectively, resulting from vesting of restricted stock in accordance with ASU 2016-09 and the effect of state taxes. For the third quarter and first nine months of 2021, the effective tax rate varied from the federal statutory rate of 21% in part due to an excess tax expense of $0.9 million and an excess tax benefit of $7.4 million, respectively, resulting from employee exercises of stock options and vesting of restricted stock in accordance with ASU 2016-09 and the effect of state taxes. During the third quarter of 2022, the Company recorded tax expense of $139.7 million to establish a full valuation allowance against its net deferred tax assets due to historical cumulative pre-tax losses and continued pre-tax losses in the quarter. Management regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences, and tax planning strategies. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. In determining the amount of the valuation allowance, the Company considered the scheduled reversal of deferred tax liabilities. The Company will maintain a full valuation allowance on net deferred tax assets until there is sufficient evidence to support the reversal of some or all of the allowance. Should there be a change in the valuation allowance in the future, the income tax provision would increase or decrease in the period in which the allowance is changed. The indefinite carryforward period for certain deferred tax assets means that indefinite-lived deferred tax liabilities can be considered as support for realization of such deferred tax assets including post December 31, 2017 net operating loss carryovers, which can affect the need to record or maintain a valuation allowance for deferred tax assets. At September 30, 2022 the Company maintains a valuation allowance of $146 million against its net deferred tax assets. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Income tax benefit (expense) - excluding excess tax expense from valuation allowance and excess tax (expense) benefit on stock compensation $ 5,512 $ 939 $ 10,372 $ (6,900) Income tax expense from valuation allowance (139,670) — (139,670) — Excess tax (expense) benefit on stock compensation (1,752) (938) (4,658) 7,355 Income tax (expense) benefit $ (135,910) $ 1 $ (133,956) $ 455 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Convertible Senior Notes 2025 Notes On July 24, 2020, the Company issued $575.0 million aggregate principal amount of its 0.50% Convertible Senior Notes due July 15, 2025 (the “2025 Notes”) in a private placement. The issuance included $75.0 million aggregate principal amount of 2025 Notes under a 13-day purchase option which was exercised in full. The 2025 Notes bear interest at a rate of 0.50% per year, payable semi-annually on January 15 and July 15 of each year, beginning on January 15, 2021. The 2025 Notes will mature on July 15, 2025, unless earlier repurchased, redeemed or converted. The initial conversion rate of the 2025 Notes is 2.1683 shares of the Company's common stock per $1,000 principal amount of 2025 Notes (which is equivalent to an initial conversion price of approximately $461.19 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change prior to the maturity of the 2025 Notes or if the Company issues a notice of redemption for the 2025 Notes, the Company will, in certain circumstances, increase the conversion rate by a specified number of additional shares for a holder that elects to convert the 2025 Notes in connection with such make-whole fundamental change or to convert its 2025 Notes called for redemption, as the case may be. Upon conversion, the 2025 Notes will settle for cash, shares of the Company’s stock, or a combination thereof, at the Company’s option. It is the intent of the Company to settle the principal amount of the 2025 Notes in cash and any conversion premium in shares of its common stock. The 2025 Notes are the Company’s senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the 2025 Notes; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness, including borrowings under the senior secured credit facility, described below, to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. Prior to the close of business on the business day immediately preceding March 13, 2025, the 2025 Notes will be convertible at the option of the holders thereof only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period in which, for each trading day of that period, the trading price (as defined in the 2025 Notes) per $1,000 principal amount of 2025 Notes for such trading day was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; • if the Company calls such 2025 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the notes called for redemption; or • upon the occurrence of specified corporate events including but not limited to a fundamental change. Holders of the 2025 Notes were not entitled to convert the 2025 Notes during the calendar quarter ended September 30, 2022 as the last reported sale price of the Company's common stock, for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on June 30, 2022, was not greater than or equal to 130% of the conversion price of the 2025 Notes on each applicable trading day. Holders of the 2025 Notes are not entitled to convert the 2025 Notes during the calendar quarter ended December 31, 2022 as the last reported sale price of the Company's common stock, for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on September 30, 2022, was not greater than or equal to 130% of the conversion price of the 2025 Notes on each applicable trading day. On or after March 13, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2025 Notes, holders of the 2025 Notes may convert all or a portion of their 2025 Notes regardless of the foregoing conditions. The Company may not redeem the 2025 Notes prior to July 20, 2023. On or after July 20, 2023 and before the 41 st scheduled trading day immediately before the maturity date, the Company may redeem for cash all or a portion of the 2025 Notes, at its option, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period (and including the last trading day of such period) ending on, and including the last trading day immediately preceding the date of notice of redemption is greater than or equal to 130% of the conversion price on each applicable trading day. The redemption price will be equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes. Upon the occurrence of a fundamental change prior to the maturity date of the 2025 Notes, holders of the 2025 Notes may require the Company to repurchase all or a portion of the 2025 Notes for cash at a price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If the market price per share of the common stock, as measured under the terms of the 2025 Notes, exceeds the conversion price of the 2025 Notes, the 2025 Notes could have a dilutive effect, unless the Company elects, subject to certain conditions, to settle the principal amount of the 2025 Notes and any conversion premium in cash. Accounting for the Notes After Adoption of ASU 2020-06 The Company adopted ASU 2020-06 on January 1, 2022 as further described in Note 2—Significant Accounting Policies. Following the adoption of ASU 2020-06, the 2025 Notes are recorded as a single unit within liabilities on the consolidated balance sheets as the conversion features within the 2025 Notes are not derivatives that require bifurcation and the 2025 Notes do not involve a substantial premium. Debt issuance costs to issue the 2025 Notes were recorded as direct deduction from the related liability and amortized to interest expense over the term of Notes. The new guidance also requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. See Note 2—Significant Accounting Policies for additional information. Accounting for the Notes Before Adoption of ASU 2020-06 The initial measurement of convertible debt instruments that may be settled in cash was separated into a debt and an equity component whereby the debt component was based on the fair value of a similar instrument that does not contain an equity conversion option. The separate components of debt and equity of the Company’s 2025 Notes were determined using an interest rate of 5.30%, which reflects the nonconvertible debt borrowing rate of the Company at the date of issuance. As a result, the initial components of debt and equity were $455.6 million and $119.4 million, respectively. Financing costs related to the issuance of the 2025 Notes were approximately $15.1 million, of which $12.0 million were allocated to the liability component and are being amortized to interest expense over the term of the debt and $3.1 million were allocated to the equity component. In the first nine months of 2022, the Company recorded interest expense on the 2025 Notes of $4.4 million which consisted of $2.1 million associated with the 0.50% coupon rate and $2.3 million associated with the amortization of the debt issuance costs. In the first nine months of 2021, the Company recorded interest expense on the 2025 Notes of $20.3 million which consisted of $2.2 million associated with the 0.50% coupon rate, $16.4 million associated with the accretion of the debt discount, and $1.7 million associated with the amortization of the debt issuance costs. As of September 30, 2022, the fair value of the 2025 Notes is estimated to be approximately $411.8 million using the Level 1 observable input of the last quoted market price on September 30, 2022. A summary of the gross carrying amount, unamortized debt cost, debt issuance costs, and net carrying value of the liability component of the 2025 Notes, all of which is recorded as a non-current liability in the September 30, 2022 consolidated balance sheet, are as follows (in thousands) : September 30, December 31, Gross carrying amount $ 575,000 $ 575,000 Unamortized debt discount — 87,994 Debt issuance costs 8,496 8,855 Net carrying amount $ 566,504 $ 478,151 2022 Notes On May 31, 2017, the Company issued $300.0 million aggregate principal amount of its 0.625% Convertible Senior Notes due June 1, 2022 (the “2022 Notes”) in a private placement. The Company settled the outstanding balance of the 2022 Notes of $169.7 million in cash on June 1, 2022. The initial conversion rate of the 2022 Notes was 4.8163 shares of the Company's common stock per $1,000 principal amount of 2022 Notes (which is equivalent to an initial conversion price of approximately $207.63 per share). Accounting for the Notes After Adoption of ASU 2020-06 The Company adopted ASU 2020-06 on January 1, 2022 as further described in Note 2—Significant Accounting Policies. Following the adoption of ASU 2020-06, the 2022 Notes are recorded as a single unit within liabilities on the consolidated balance sheets as the conversion features within the 2022 Notes are not derivatives that require bifurcation and the 2022 Notes do not involve a substantial premium. Debt issuance costs to issue the 2022 Notes were recorded as direct deduction from the related liability and amortized to interest expense over the term of Notes. The new guidance also requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. See Note 2—Significant Accounting Policies for additional information. Accounting for the Notes Before Adoption of ASU 2020-06 The separate components of debt and equity of the Company’s 2022 Notes were determined using an interest rate of 5.36%, which reflects the nonconvertible debt borrowing rate of the Company at the date of issuance. As a result, the initial components of debt and equity were $238.4 million and $61.6 million, respectively. Financing costs related to the issuance of the 2022 Notes were approximately $9.3 million, of which $7.4 million were allocated to the liability component and are being amortized to interest expense over the term of the debt and $1.9 million were allocated to the equity component. On July 24, 2020, the Company used approximately $234.0 million of the net proceeds from the issuance of the 2025 Notes to repurchase approximately $130.3 million principal amount of the 2022 Notes, including the payment of accrued and unpaid interest of approximately $0.1 million, through separate transactions with certain holders of the 2022 Notes. Of the consideration paid, $126.0 million was allocated to the extinguishment of the liability component of the notes, while the remaining $107.9 million was allocated to the reacquisition of the equity component and recorded as a reduction to additional paid-in capital in the consolidated statement of shareholders’ equity. The Company recognized a loss on debt extinguishment of $7.8 million in the third quarter of 2020, which is included in interest expense, net in the consolidated statements of operations and comprehensive income. In the first nine months of 2022, the Company recorded interest expense on the 2022 Notes of $0.8 million which consisted of $0.4 million associated with the 0.625% coupon rate and $0.4 million associated with the amortization of the debt issuance costs. In the first nine months of 2021, the Company recorded interest expense on the 2022 Notes of $7.1 million which consisted of $0.8 million associated with the 0.625% coupon rate, $5.6 million associated with the accretion of the debt discount, and $0.7 million associated with the amortization of the debt issuance costs. A summary of the gross carrying amount, unamortized debt cost, debt issuance costs and net carrying value of the liability component of the 2022 Notes, are as follows (in thousands) : September 30, December 31, Gross carrying amount $ — $ 169,659 Unamortized debt discount — 3,260 Debt issuance costs — 391 Net carrying amount $ — $ 166,008 Convertible Note Hedge and Warrant Transactions 2020 Hedge and Warrants On July 24, 2020, in connection with the issuance of the 2025 Notes, the Company entered into Convertible Note Hedge (the “2020 Hedge”) and warrant transactions with respect to the Company’s common stock. The Company used approximately $63.0 million of the net proceeds from the 2025 Notes to pay for the cost of the 2020 Hedge, after such cost was partially offset by the proceeds from the warrant transactions. On July 24, 2020, the Company paid $124.2 million to the counterparties for the 2020 Hedge transactions. The 2020 Hedge transactions cover 1.2 million shares of the Company’s common stock, the same number of shares initially underlying the 2025 Notes, and are exercisable upon any conversion of the 2025 Notes. The 2020 Hedge transactions are expected generally to reduce the potential dilution to the Company's common stock upon conversion of the 2025 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2025 Notes, as the case may be, in the event that the market price per share of common stock, as measured under the terms of the 2020 Hedge transactions, is greater than the strike price of the 2020 Hedge transactions, which initially corresponds to the initial conversion price of the 2025 Notes, or approximately $461.19 per share of common stock. The 2020 Hedge transactions will expire upon the maturity of the Notes. On July 24, 2020, the Company sold to the counterparties, warrants (the “2020 Warrants”) to acquire 1.2 million shares of the Company's common stock at an initial strike price of $709.52 per share, which represents a premium of 100% over the last reported sale price of the common stock of $354.76 on July 21, 2020. On July 24, 2020, the Company received aggregate proceeds of approximately $61.2 million from the sale of the 2020 Warrants. If the market price per share of the common stock, as measured under the terms of the 2020 Warrants, exceeds the strike price of the 2020 Warrants, the 2020 Warrants could have a dilutive effect, unless the Company elects, subject to certain conditions, to settle the 2020 Warrants in cash. The 2020 Hedge and 2020 Warrants transactions are indexed to, and potentially settled in, the Company's common stock and the net cost of $63.0 million has been recorded as a reduction to additional paid-in capital in the consolidated statement of shareholders’ equity. 2017 Hedge and Warrants On May 31, 2017, in connection with the issuance of the 2022 Notes, the Company entered into Convertible Note Hedge (the “2017 Hedge”) and warrant transactions with respect to the Company’s common stock. The Company used approximately $18.1 million of the net proceeds from the 2022 Notes to pay for the cost of the 2017 Hedge, after such cost was partially offset by the proceeds from the warrant transactions. On May 31, 2017, the Company paid $61.5 million to the counterparties for the 2017 Hedge transactions. The 2017 Hedge transactions initially covered 1.4 million shares of the Company’s common stock, the same number of shares initially underlying the 2022 Notes, and were exercisable upon any conversion of the 2022 Notes. The 2017 Hedge transactions were expected generally to reduce the potential dilution to the Company's common stock upon conversion of the 2022 Notes and/or offset any cash payments the Company was required to make in excess of the principal amount of the converted 2022 Notes, as the case may be, in the event that the market price per share of common stock, as measured under the terms of the 2017 Hedge transactions, was greater than the strike price of the 2017 Hedge transactions, which initially corresponded to the initial conversion price of the 2022 Notes, or approximately $207.63 per share of common stock. The 2017 Hedge transactions expired on June 1, 2022 upon the maturity of the Notes. On May 31, 2017, the Company sold to the counterparties, warrants (the “2017 Warrants”) to acquire 1.4 million shares of the Company's common stock at an initial strike price of $266.39 per share, which represents a premium of 70% over the last reported sale price of the common stock of $156.70 on May 24, 2017. On May 31, 2017, the Company received aggregate proceeds of approximately $43.4 million from the sale of the 2017 Warrants. If the market price per share of the common stock, as measured under the terms of the 2017 Warrants, exceeds the strike price of the 2017 Warrants, the 2017 Warrants could have a dilutive effect, unless the Company elects, subject to certain conditions, to settle the 2017 Warrants in cash. As of September 30, 2022, there were 0.8 million warrants outstanding. The warrants expire ratably from October 14, 2022 through December 12, 2022. The 2017 Hedge and 2017 Warrants transactions are indexed to, and potentially settled in, the Company's common stock and the net cost of $18.1 million was recorded as a reduction to additional paid-in capital in the consolidated statement of shareholders’ equity. To the extent of the repurchases of the 2022 Notes noted above, the Company entered into agreements with the counterparties for the 2017 Hedge and 2017 Warrants transactions to terminate a portion of these call spread transactions effective July 24, 2020 in notional amounts corresponding to the principal amount of the 2022 Notes repurchased. The Company received $109.9 million and paid $94.3 million as a result of terminating such portions of the 2017 Hedge and 2017 Warrants, respectively. The net $15.6 million was recorded as an increase to additional paid-in capital in the consolidated statement of shareholders’ equity. Credit Facility On September 15, 2021, the Company entered into a credit agreement (the “Credit Agreement”), consisting of a $200.0 million revolving credit facility (the “Revolving Facility”), which matures on September 15, 2026, and a $250.0 million delayed draw term loan facility (the “Term Loan Facility” and together with the Revolving Facility, the “Credit Facility”), which matures on September 15, 2028. The proceeds of the Revolving Facility can be used to finance working capital, for general corporate purposes and any other purpose not prohibited by the Credit Agreement. On May 31, 2022, the Company received proceeds of $250.0 million from the Term Loan Facility and on June 1, 2022, used $170.2 million of the proceeds to settle the Company’s 2022 Notes, including interest. The remaining proceeds of $79.8 million may be used for general corporate purposes and any other purposes not prohibited by the Credit Agreement. The Credit Facility replaces the Company's $500.0 million five-year senior secured revolving credit facility (the “Amended Revolving Credit Facility”) which was entered into on December 10, 2019. As of September 30, 2022, the Company had $249.4 million of borrowings outstanding under the Term Loan Facility bearing interest at the LIBO option rate of 6.87% and had no borrowings under the Revolving Facility. As of December 31, 2021, the Company had no borrowings outstanding under the Credit Facility. As of September 30, 2022, borrowings of $2.5 million under the Term Loan Facility are recorded as current portion of long-term debt on the consolidated balance sheet. The full amount of the Revolving Facility will be available on a same-day basis, with respect to base rate loans and upon advance notice with respect to LIBO rate loans, subject to customary terms and conditions. Under certain conditions, the Company will be permitted to add one or more term loans and/or increase revolving or term loan commitments under the Credit Facility by an amount set at the greater of $116.0 million and 100% of consolidated EBITDA (subject to adjustments for certain prepayments), plus an unlimited amount provided that the first lien net leverage ratio does not exceed 3.00 to 1.00. Additionally, up to $20.0 million of the Revolving Facility will be available for the issuance of letters of credit. At each of September 30, 2022 and December 31, 2021, the Company had outstanding one letter of credit issued in the amount of $0.2 million. The Company’s borrowings under the Credit Facility bear interest at annual rates that, at the Company’s option, will be either: • a base rate generally defined as the sum of (i) the greater of (a) the prime rate of Truist Bank, (b) the federal funds effective rate plus 0.5% and (c) the LIBO rate (defined below) on a daily basis applicable for an interest period of one month plus 1.0% and (ii) an applicable percentage of 1.25% to 1.75% for loans under the Revolving Facility and 2.75% to 3.00% for loans under the Term Loan Facility, in each case, based on a first lien net leverage ratio; or • a LIBO rate generally defined as the sum of (i) the rate for Eurodollar deposits for the applicable interest period and (ii) an applicable percentage of 2.25% to 2.75% for loans under the Revolving Facility and 3.75% to 4.00% for loans under the Term Loan Facility, in each case, based on a first lien net leverage ratio. Interest on the Company’s borrowings is payable quarterly in arrears for base rate loans and on the last day of each interest rate period (but not less often than three months) for LIBO rate loans. The Credit Facility contains a restrictive financial covenant, which is set at a first lien net leverage ratio of 2.50 to 1.00, except that this may increase by 0.50:1.00 for the four fiscal quarters following a material acquisition. The financial covenant will be tested only if the loans and certain other obligations under the Revolving Facility exceed $20.0 million as of the last date of any fiscal quarter (starting with the fiscal quarter ending on December 31, 2021). The Credit Facility also includes a restricted payment covenant which is set at a total net leverage ratio of 4.0 to 1. In addition, the Credit Facility contains mandatory prepayment events, affirmative and negative covenants and events of default customary for a transaction of this type. The covenants, among other things, restrict additional indebtedness, liens, mergers or certain fundamental changes, asset dispositions, dividends and other restricted payments, transactions with affiliates, loans and investments and other matters customarily restricted in credit agreements of this type. The Company is required to make mandatory prepayments of the outstanding principal amount of loans under the Term Loan Facility with the net cash proceeds from certain disposition of assets and the receipt of insurance proceeds upon certain casualty and condemnation events, in each case, to the extent not reinvested within a specified time period, from excess cash flow beyond stated threshold amounts, and from the incurrence of certain indebtedness. The Company has the right to prepay its term loans under the Credit Agreement, in whole or in part, at any time without premium or penalty, subject to certain limitations and a 1.0% soft call premium applicable during the first six months following the closing date. The Company was in compliance with all covenants at September 30, 2022. The Credit Facility requires the Company and certain of its subsidiaries to pledge as collateral, subject to certain customary exclusions, substantially all of its assets, including 100% of the equity in certain domestic subsidiaries and 65% of the voting equity, and 100% of the non-voting equity, in certain foreign subsidiaries. The obligations under the Credit Facility are unconditionally guaranteed on a senior basis by the Company's material domestic subsidiaries, which guaranties are secured by the collateral. With respect to the Revolving Facility, the Company is required to pay an unused commitment fee quarterly in arrears on the difference between committed amounts and amounts actually borrowed under the Revolving Facility equal to an applicable percentage of 0.25% to 0.50% per annum based on a first lien net leverage ratio. The Company is required to pay a letter of credit participation fee and a letter of credit fronting fee quarterly in arrears. The letter of credit participation fee is based upon the aggregate face amount of outstanding letters of credit at an applicable percentage of 2.25% to 2.75% based on a first lien net leverage ratio. The letter of credit fronting fee is 0.125% per annum on the face amount of each letter of credit. With respect to the Term Loan Facility, the Company was required to pay an unused commitment fee quarterly in arrears on the difference between committed amounts and amounts actually borrowed under the Term Loan Facility equal to an applicable LIBO rate plus an applicable percentage of 3.75% to 4.00% per annum based on a first lien net leverage ratio. The Company recognized $1.1 million in additional interest expense in 2021 due to the write-off of certain unamortized debt issuance costs associated with the Amended Revolving Credit Facility. In addition to the remaining unamortized debt issuance costs associated with the Amended Revolving Credit Facility, debt issuance costs of $2.8 million related to the Revolving Facility are being amortized to interest expense over the life of the Revolving Facility. Debt issuance costs of $3.5 million related to the Term Loan Facility and the original issue discount of $2.5 million paid on the undrawn term loan facility were amortized to interest expense over the delayed draw access period, until such time that the loans thereunder are drawn. These deferred costs are included in prepaid and other current assets and other non-current assets in the Company's consolidated balance sheet. In the first nine months of 2022, the Company recorded interest expense related to its Revolving Facility of $1.1 million which consisted of $0.4 million in unused commitment fees, and $0.7 million associated with the amortization of the debt issuance costs. In the first nine months of 2022, the Company recorded interest expense related to the Term Loan Facility of $13.5 million which consisted of $4.9 million associated with borrowings bearing interest at the LIBO rate, $5.1 million in unused commitment fees, $2.0 million associated with the amortization of the debt issuance costs, and $1.5 million associated with the amortization of the original issue discount. In the first nine months of 2021, the Company recorded interest expense related to its revolving credit facilities of $3.0 million which consisted of $1.8 million in unused commitment fees, and $1.2 million associated with the amortization of the debt issuance costs. In the first nine months of 2021, the Company recorded interest expense related to the Term Loan Facility of $0.7 million which consisted of $0.4 million in unused commitment fees, $0.2 million associated with the amortization of the debt issuance costs, and $0.1 million associated with the amortization of the original issue discount. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Overview LendingTree is involved in legal proceedings on an ongoing basis. In assessing the materiality of a legal proceeding, the Company evaluates, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require it to change its business practices in a manner that could have a material and adverse impact on the Company's business. With respect to the matters disclosed in this Note 13, unless otherwise indicated, the Company is unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Other than the convertible notes and warrants, as well as the equity interests, the carrying amounts of the Company's financial instruments are equal to fair value at September 30, 2022. See Note 12—Debt for additional information on the convertible notes and warrants, and see Note 7—Equity Investments for additional information on the equity interests in Stash and EarnUp. In 2018, the Company acquired all of the outstanding equity interests of QuoteWizard.com, LLC (“QuoteWizard”). In the third quarter and first nine months of 2021, the company recorded $0.2 million and $8.2 million, respectively, of income for the change in fair value of the contingent consideration related to the QuoteWizard acquisition. The earnout was completed in 2021 and there were no earnout payments related to the acquisition in 2021. Contingent consideration payments related to acquisitions are measured at fair value each reporting period using Level 3 unobservable inputs. The changes in the fair value of the Company's Level 3 liabilities are as follows (in thousands) : Three Months Ended Nine Months Ended 2021 2021 Contingent consideration, beginning of period $ 196 $ 8,249 Transfers into Level 3 — — Transfers out of Level 3 — — Total net losses (gains) included in earnings (realized and unrealized) (196) (8,249) Purchases, sales and settlements: Additions — — Payments — — Contingent consideration, end of period $ — $ — |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company manages its business and reports its financial results through the following three operating and reportable segments: Home, Consumer and Insurance. Characteristics which were relied upon in making the determination of the reportable segments include the nature of the products, the organization's internal structure, and the information that is regularly reviewed by the chief operating decision maker for the purpose of assessing performance and allocating resources. The Home segment includes the following products: purchase mortgage, refinance mortgage, home equity loans and lines of credit, and reverse mortgage loans. The Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products such as credit repair and debt settlement. The Insurance segment consists of insurance quote products and sales of insurance policies in the agency businesses. The following tables are a reconciliation of segment profit, which is the Company's primary segment profitability measure, to income before income taxes and discontinued operations. Segment marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses, that are directly attributable to the segments' products. This measure excludes overhead, fixed costs and personnel-related expenses. Three Months Ended September 30, 2022 Home Consumer Insurance Other Total (in thousands) Revenue $ 64,927 $ 102,661 $ 70,231 $ 17 $ 237,836 Segment marketing expense 40,810 56,868 47,663 228 145,569 Segment profit (loss) 24,117 45,793 22,568 (211) 92,267 Cost of revenue 14,105 Brand and other marketing expense 31,306 General and administrative expense 39,540 Product development 14,043 Depreciation 5,274 Amortization of intangibles 6,582 Restructuring and severance — Litigation settlements and contingencies (7) Operating loss (18,576) Interest expense, net (5,720) Other income 1,523 Loss before income taxes and discontinued operations $ (22,773) Three Months Ended September 30, 2021 Home Consumer Insurance Other Total (in thousands) Revenue $ 112,422 $ 100,011 $ 84,837 $ 180 $ 297,450 Segment marketing expense 70,905 55,295 58,227 83 184,510 Segment profit 41,517 44,716 26,610 97 112,940 Cost of revenue 15,020 Brand and other marketing expense 21,965 General and administrative expense 40,126 Product development 13,384 Depreciation 4,808 Amortization of intangibles 10,345 Change in fair value of contingent consideration (196) Restructuring and severance 47 Litigation settlements and contingencies 22 Operating income 7,419 Interest expense, net (11,826) Loss before income taxes and discontinued operations $ (4,407) Nine Months Ended September 30, 2022 Home Consumer Insurance Other Total (in thousands) Revenue $ 240,809 $ 309,873 $ 232,025 $ 230 $ 782,937 Segment marketing expense 154,043 176,985 165,770 643 497,441 Segment profit (loss) 86,766 132,888 66,255 (413) 285,496 Cost of revenue 44,240 Brand and other marketing expense 68,128 General and administrative expense 115,802 Product development 42,413 Depreciation 15,024 Amortization of intangibles 21,574 Restructuring and severance 3,760 Litigation settlements and contingencies (41) Operating loss (25,404) Interest expense, net (19,990) Other income 1,806 Loss before income taxes and discontinued operations $ (43,588) Nine Months Ended September 30, 2021 Home Consumer Insurance Other Total (in thousands) Revenue $ 345,408 $ 233,594 $ 260,714 $ 498 $ 840,214 Segment marketing expense 225,884 130,877 168,024 542 525,327 Segment profit (loss) 119,524 102,717 92,690 (44) 314,887 Cost of revenue 42,849 Brand and other marketing expense 63,816 General and administrative expense 114,926 Product development 39,142 Depreciation 12,969 Amortization of intangibles 32,967 Change in fair value of contingent consideration (8,249) Restructuring and severance 47 Litigation settlements and contingencies 360 Operating income 16,060 Interest expense, net (31,881) Other income 40,072 Income before income taxes and discontinued operations $ 24,251 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONSThe results of discontinued operations include litigation settlements and contingencies and legal fees associated with legal proceedings against LendingTree, Inc. or LendingTree, LLC that arose due to the LendingTree Loans business or the HLC bankruptcy filing. The components of net loss reported as discontinued operations in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue $ — $ — $ — $ — Loss before income taxes — (103) (6) (4,717) Income tax benefit (1) 49 2 1,201 Net loss $ (1) $ (54) $ (4) $ (3,516) |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES In the first quarter of 2022, the Company completed a workforce reduction of approximately 75 employees, and in the second quarter of 2022 completed a workforce reduction of approximately 25 employees. The Company incurred total expense of $3.8 million consisting of employee separation costs of $2.7 million and non-cash compensation expense of $1.1 million due to the accelerated vesting of certain equity awards. All employee separation costs are expected to be paid by the first quarter of 2023. Accrued Balance at December 31, 2021 Income Statement Impact Payments Non-Cash Accrued Balance at September 30, 2022 2022 action Employee separation payments $ — $ 2,677 $ (2,518) $ — $ 159 Non-cash compensation — 1,083 — (1,083) — $ — $ 3,760 $ (2,518) $ (1,083) $ 159 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates. Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; fair value of assets acquired in a business combination; contingent consideration related to business combinations; litigation accruals; contract assets; various other allowances, reserves and accruals; assumptions related to the determination of stock-based compensation; and the determination of right-of-use assets and lease liabilities. The Company considered the impact of the COVID-19 pandemic on the assumptions and estimates used when preparing its financial statements including, but not limited to, the allowance for doubtful accounts, valuation allowances, contract asset and contingent consideration. These assumptions and estimates may change as new events occur and additional information is obtained. If economic conditions caused by the COVID-19 pandemic do not recover as currently estimated by management, such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity. |
Certain Risks and Concentrations | Certain Risks and Concentrations LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. Financial instruments, which potentially subject the Company to concentration of credit risk at September 30, 2022, consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company requires certain Network Partners to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding. Due to the nature of the mortgage lending industry, interest rate fluctuations may negatively impact future revenue from the Company's marketplace. Lenders and lead purchasers participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders and lead purchasers can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans and other products from Network Partners without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the Network Partners whose loans and other financial products are offered on its online marketplace, consumers may obtain offers from these Network Partners without using its service. Other than a support services office in India, the Company's operations are geographically limited to and dependent upon the economic condition of the United States. |
Litigation Settlements and Contingencies | Litigation Settlements and Contingencies Litigation settlements and contingencies consists of expenses related to actual or anticipated litigation settlements. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for convertible instruments, amends the derivatives scope exception guidance for contracts in an entity’s own equity, and amends the related earnings-per-share guidance. Under the new guidance, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Additionally, the new guidance requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. This ASU is effective for annual and interim reporting periods beginning after December 15, 2021, with early adoption permitted for periods beginning after December 15, 2020. An entity may adopt the amendments through either a modified retrospective method of transition or a fully retrospective method of transition. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective transition approach and recognized the cumulative effect of initially applying ASU 2020-06 as a $44.4 million adjustment to the opening balance of accumulated deficit, comprised of $60.8 million for the interest adjustment, net of $16.4 million for the related tax impacts. The recombination of the equity conversion component of our convertible debt remaining outstanding caused a reduction in additional paid-in capital and an increase in deferred income tax assets. The removal of the remaining debt discounts recorded for this previous separation had the effect of increasing our net debt balance. ASU 2020-06 also requires the dilutive impact of convertible debt instruments to utilize the if-converted method when calculating diluted earnings per share and the result is more dilutive. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. See Note 12—Debt for further information. The cumulative effect of the changes made to the consolidated January 1, 2022 balance sheet for the adoption of ASU 2020-06 were as follows (in thousands): December 31, 2021 Adjustments due to January 1, 2022 Assets: Deferred income tax assets $ 87,581 $ 23,979 $ 111,560 Liabilities: Current portion of long-term debt $ 166,008 $ 3,213 $ 169,221 Long-term debt 478,151 86,069 564,220 Shareholders' equity: Additional paid-in capital $ 1,242,794 $ (109,750) $ 1,133,044 Accumulated deficit (571,794) 44,447 (527,347) The adoption of ASU 2020-06 did not impact our cash flows or compliance with debt covenants. Recently Issued Accounting Pronouncements The Company has considered the applicability of recently issued accounting pronouncements by the Financial Accounting Standards Board and have determined that they are not applicable or are not expected to have a material impact on our consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Cumulative Effect of Changes Made to Balance Sheet For Adoption of ASU 2020-06 | The cumulative effect of the changes made to the consolidated January 1, 2022 balance sheet for the adoption of ASU 2020-06 were as follows (in thousands): December 31, 2021 Adjustments due to January 1, 2022 Assets: Deferred income tax assets $ 87,581 $ 23,979 $ 111,560 Liabilities: Current portion of long-term debt $ 166,008 $ 3,213 $ 169,221 Long-term debt 478,151 86,069 564,220 Shareholders' equity: Additional paid-in capital $ 1,242,794 $ (109,750) $ 1,133,044 Accumulated deficit (571,794) 44,447 (527,347) |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue is as follows (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Home $ 64,927 $ 112,422 $ 240,809 $ 345,408 Credit cards 24,298 26,914 81,426 66,975 Personal loans 37,701 33,803 115,209 73,879 Other Consumer 40,662 39,294 113,238 92,740 Total Consumer 102,661 100,011 309,873 233,594 Insurance 70,231 84,837 232,025 260,714 Other 17 180 230 498 Total revenue $ 237,836 $ 297,450 $ 782,937 $ 840,214 |
CASH AND RESTRICTED CASH (Table
CASH AND RESTRICTED CASH (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Total cash, cash equivalents, restricted cash and restricted cash equivalents consist of the following (in thousands) : September 30, December 31, Cash and cash equivalents $ 285,538 $ 251,231 Restricted cash and cash equivalents 127 111 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 285,665 $ 251,342 |
Schedule of Cash and Cash Equivalents | Total cash, cash equivalents, restricted cash and restricted cash equivalents consist of the following (in thousands) : September 30, December 31, Cash and cash equivalents $ 285,538 $ 251,231 Restricted cash and cash equivalents 127 111 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 285,665 $ 251,342 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Reconciliation of Allowance For Doubtful Accounts | A reconciliation of the beginning and ending balances of the allowance for doubtful accounts is as follows (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance, beginning of the period $ 2,300 $ 1,473 $ 1,456 $ 1,402 Charges to earnings 679 678 2,708 1,823 Write-off of uncollectible accounts receivable (623) (645) (1,808) (1,724) Recoveries collected — — — 5 Balance, end of the period $ 2,356 $ 1,506 $ 2,356 $ 1,506 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Balance of Goodwill, Net and Intangible Assets, Net | The balance of goodwill, net and intangible assets, net is as follows (in thousands) : September 30, December 31, Goodwill $ 903,227 $ 903,227 Accumulated impairment losses (483,088) (483,088) Net goodwill $ 420,139 $ 420,139 Intangible assets with indefinite lives $ 10,142 $ 10,142 Intangible assets with definite lives, net 54,047 75,621 Total intangible assets, net $ 64,189 $ 85,763 |
Schedule of Intangible Assets with Definite Lives | Intangible assets with definite lives relate to the following (in thousands) : Cost Accumulated Net Technology $ 74,900 $ (71,108) $ 3,792 Customer lists 77,300 (29,248) 48,052 Trademarks and tradenames 10,700 (8,497) 2,203 Balance at September 30, 2022 $ 162,900 $ (108,853) $ 54,047 Cost Accumulated Net Technology $ 87,700 $ (69,369) $ 18,331 Customer lists 77,300 (24,668) 52,632 Trademarks and tradenames 11,700 (7,767) 3,933 Website content 26,100 (25,375) 725 Balance at December 31, 2021 $ 202,800 $ (127,179) $ 75,621 |
Schedule of Amortization of Intangible Assets with Definite Lives | Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on balances as of September 30, 2022, future amortization is estimated to be as follows (in thousands) : Amortization Expense Remainder of current year $ 3,682 Year ending December 31, 2023 8,602 Year ending December 31, 2024 6,747 Year ending December 31, 2025 6,259 Year ending December 31, 2026 5,504 Thereafter 23,253 Total intangible assets with definite lives, net $ 54,047 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands) : September 30, December 31, Accrued advertising expense $ 48,162 $ 59,150 Accrued compensation and benefits 8,954 16,330 Accrued professional fees 3,021 1,887 Customer deposits and escrows 7,442 7,546 Contribution to LendingTree Foundation — 3,333 Current lease liabilities 8,909 8,595 Other 7,976 9,890 Total accrued expenses and other current liabilities $ 84,464 $ 106,731 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Income per Share | Basic and diluted income per share was determined based on the following share data (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Weighted average basic common shares 12,758 13,268 12,794 13,194 Effect of stock options — — — 452 Effect of dilutive share awards — — — 96 Effect of Convertible Senior Notes and warrants — — — 55 Weighted average diluted common shares 12,758 13,268 12,794 13,797 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Non-cash Compensation Related to Equity Awards | Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of revenue $ 417 $ 371 $ 1,252 $ 1,231 Selling and marketing expense 2,198 1,805 6,522 5,583 General and administrative expense 11,212 13,233 32,685 38,658 Product development 1,748 1,665 6,448 6,332 Restructuring and severance — — 1,083 — Total non-cash compensation $ 15,575 $ 17,074 $ 47,990 $ 51,804 |
Summary of Changes in Outstanding Stock Options | A summary of changes in outstanding stock options is as follows: Number of Options Weighted Weighted Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2022 676,293 $ 169.71 Granted (b) 157,632 103.54 Exercised — — Forfeited (20,089) 205.97 Expired (6,475) 256.11 Options outstanding at September 30, 2022 807,361 155.20 5.47 $ 3 Options exercisable at September 30, 2022 489,581 $ 126.08 3.39 $ 3 (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $23.86 on the last trading day of the quarter ended September 30, 2022 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on September 30, 2022. The intrinsic value changes based on the market value of the Company's common stock. (b) During the nine months ended September 30, 2022, the Company granted stock options to certain employees with a weighted average grant date fair value per share of $53.21, calculated using the Black-Scholes option pricing model, which vesting periods include (1) immediate vesting on grant date (b) earlier of one year from grant date and the Company's annual meeting of stockholders for 2023 and (c) three years from grant date. |
Schedule of Stock Option Valuation Assumptions | For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the stock options was estimated using the Black-Scholes option pricing model, which requires the use of various key assumptions. The weighted average assumptions used are as follows: Expected term (1) 5.00 - 6.00 years Expected dividend (2) — Expected volatility (3) 53 - 56% Risk-free interest rate (4) 1.62 - 3.23% (1) The expected term of stock options granted was calculated using the “Simplified Method,” which utilizes the midpoint between the weighted average time of vesting and the end of the contractual term. This method was utilized for the stock options due to a lack of historical exercise behavior by the Company's employees. (2) For all stock options granted in 2022, no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate. (3) The expected volatility rate is based on the historical volatility of the Company's common stock. (4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date. |
Summary of Changes in Outstanding Stock Options with Market Conditions | A summary of changes in outstanding stock options with market conditions at target is as follows: Number of Options with Market Conditions Weighted Weighted Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2022 700,209 $ 236.01 Granted 47,639 195.10 Exercised — — Forfeited — — Expired (13,163) 378.95 Options outstanding at September 30, 2022 734,685 230.79 5.94 $ — Options exercisable at September 30, 2022 481,669 $ 195.10 4.85 $ — (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $23.86 on the last trading day of the quarter ended September 30, 2022 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on September 30, 2022. The intrinsic value changes based on the market value of the Company's common stock. |
Summary of Changes in Outstanding Nonvested RSUs with Performance Conditions and Nonvested RSAs with Market Conditions | A summary of changes in outstanding nonvested restricted stock units (“RSUs”) is as follows: RSUs Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2022 308,068 $ 226.55 Granted 402,960 101.14 Vested (125,961) 243.60 Forfeited (79,112) 167.83 Nonvested at September 30, 2022 505,955 $ 131.60 A summary of changes in outstanding nonvested RSUs with performance conditions is as follows: RSUs with Performance Conditions Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2022 — $ — Granted 16,000 83.25 Vested — — Forfeited — — Nonvested at September 30, 2022 16,000 $ 83.25 A summary of changes in outstanding nonvested RSAs with market conditions at target is as follows: RSAs with Market Conditions Number of Awards Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2022 26,674 $ 340.25 Granted 2,927 340.25 Vested (29,601) 340.25 Forfeited — — Nonvested at September 30, 2022 — $ — |
Summary of Employee Stock Purchase Plan Valuation Assumptions | For purposes of determining stock-based compensation expense, the grant date fair value per share estimated using the Black-Scholes option pricing model required the use of the following key assumptions: Expected term (1) 0.50 years Expected dividend (2) — Expected volatility (3) 49 - 73% Risk-free interest rate (4) 0.19 - 2.51% (1) The expected term was calculated using the time period between the grant date and the purchase date. (2) No dividends are expected to be paid, resulting in a zero expected dividend rate. (3) The expected volatility rate is based on the historical volatility of the Company's common stock. (4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the employee stock purchase rights, in effect at the grant date. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax (Expense) Benefit and Effective Tax Rate | Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands, except percentages) Income tax (expense) benefit $ (135,910) $ 1 $ (133,956) $ 455 Effective tax rate (596.8) % — % (307.3) % (1.9) % |
Reconciliation of Income Tax (Expense) Benefit | Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Income tax benefit (expense) - excluding excess tax expense from valuation allowance and excess tax (expense) benefit on stock compensation $ 5,512 $ 939 $ 10,372 $ (6,900) Income tax expense from valuation allowance (139,670) — (139,670) — Excess tax (expense) benefit on stock compensation (1,752) (938) (4,658) 7,355 Income tax (expense) benefit $ (135,910) $ 1 $ (133,956) $ 455 |
DEBT (Table)
DEBT (Table) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Component of the Notes | A summary of the gross carrying amount, unamortized debt cost, debt issuance costs, and net carrying value of the liability component of the 2025 Notes, all of which is recorded as a non-current liability in the September 30, 2022 consolidated balance sheet, are as follows (in thousands) : September 30, December 31, Gross carrying amount $ 575,000 $ 575,000 Unamortized debt discount — 87,994 Debt issuance costs 8,496 8,855 Net carrying amount $ 566,504 $ 478,151 A summary of the gross carrying amount, unamortized debt cost, debt issuance costs and net carrying value of the liability component of the 2022 Notes, are as follows (in thousands) : September 30, December 31, Gross carrying amount $ — $ 169,659 Unamortized debt discount — 3,260 Debt issuance costs — 391 Net carrying amount $ — $ 166,008 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Changes in Fair Value of Level 3 Liabilities | The changes in the fair value of the Company's Level 3 liabilities are as follows (in thousands) : Three Months Ended Nine Months Ended 2021 2021 Contingent consideration, beginning of period $ 196 $ 8,249 Transfers into Level 3 — — Transfers out of Level 3 — — Total net losses (gains) included in earnings (realized and unrealized) (196) (8,249) Purchases, sales and settlements: Additions — — Payments — — Contingent consideration, end of period $ — $ — |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | The following tables are a reconciliation of segment profit, which is the Company's primary segment profitability measure, to income before income taxes and discontinued operations. Segment marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses, that are directly attributable to the segments' products. This measure excludes overhead, fixed costs and personnel-related expenses. Three Months Ended September 30, 2022 Home Consumer Insurance Other Total (in thousands) Revenue $ 64,927 $ 102,661 $ 70,231 $ 17 $ 237,836 Segment marketing expense 40,810 56,868 47,663 228 145,569 Segment profit (loss) 24,117 45,793 22,568 (211) 92,267 Cost of revenue 14,105 Brand and other marketing expense 31,306 General and administrative expense 39,540 Product development 14,043 Depreciation 5,274 Amortization of intangibles 6,582 Restructuring and severance — Litigation settlements and contingencies (7) Operating loss (18,576) Interest expense, net (5,720) Other income 1,523 Loss before income taxes and discontinued operations $ (22,773) Three Months Ended September 30, 2021 Home Consumer Insurance Other Total (in thousands) Revenue $ 112,422 $ 100,011 $ 84,837 $ 180 $ 297,450 Segment marketing expense 70,905 55,295 58,227 83 184,510 Segment profit 41,517 44,716 26,610 97 112,940 Cost of revenue 15,020 Brand and other marketing expense 21,965 General and administrative expense 40,126 Product development 13,384 Depreciation 4,808 Amortization of intangibles 10,345 Change in fair value of contingent consideration (196) Restructuring and severance 47 Litigation settlements and contingencies 22 Operating income 7,419 Interest expense, net (11,826) Loss before income taxes and discontinued operations $ (4,407) Nine Months Ended September 30, 2022 Home Consumer Insurance Other Total (in thousands) Revenue $ 240,809 $ 309,873 $ 232,025 $ 230 $ 782,937 Segment marketing expense 154,043 176,985 165,770 643 497,441 Segment profit (loss) 86,766 132,888 66,255 (413) 285,496 Cost of revenue 44,240 Brand and other marketing expense 68,128 General and administrative expense 115,802 Product development 42,413 Depreciation 15,024 Amortization of intangibles 21,574 Restructuring and severance 3,760 Litigation settlements and contingencies (41) Operating loss (25,404) Interest expense, net (19,990) Other income 1,806 Loss before income taxes and discontinued operations $ (43,588) Nine Months Ended September 30, 2021 Home Consumer Insurance Other Total (in thousands) Revenue $ 345,408 $ 233,594 $ 260,714 $ 498 $ 840,214 Segment marketing expense 225,884 130,877 168,024 542 525,327 Segment profit (loss) 119,524 102,717 92,690 (44) 314,887 Cost of revenue 42,849 Brand and other marketing expense 63,816 General and administrative expense 114,926 Product development 39,142 Depreciation 12,969 Amortization of intangibles 32,967 Change in fair value of contingent consideration (8,249) Restructuring and severance 47 Litigation settlements and contingencies 360 Operating income 16,060 Interest expense, net (31,881) Other income 40,072 Income before income taxes and discontinued operations $ 24,251 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The components of net loss reported as discontinued operations in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue $ — $ — $ — $ — Loss before income taxes — (103) (6) (4,717) Income tax benefit (1) 49 2 1,201 Net loss $ (1) $ (54) $ (4) $ (3,516) |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Rollforward of Accrued Balance for Restructuring Activities | Accrued Balance at December 31, 2021 Income Statement Impact Payments Non-Cash Accrued Balance at September 30, 2022 2022 action Employee separation payments $ — $ 2,677 $ (2,518) $ — $ 159 Non-cash compensation — 1,083 — (1,083) — $ — $ 3,760 $ (2,518) $ (1,083) $ 159 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Total shareholders' equity | $ 206,497 | $ 350,486 | $ 340,848 | $ 447,992 | $ 431,082 | $ 420,368 | $ 395,443 | $ 364,761 | |
Assets: | |||||||||
Deferred income tax assets | 0 | $ 111,560 | 87,581 | ||||||
Liabilities: | |||||||||
Current portion of long-term debt | 2,484 | 169,221 | 166,008 | ||||||
Long-term debt | 813,395 | 564,220 | 478,151 | ||||||
Shareholders' equity: | |||||||||
Additional paid-in capital | 1,177,409 | 1,133,044 | 1,242,794 | ||||||
Accumulated deficit | (704,895) | (527,347) | (571,794) | ||||||
Accumulated Deficit | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Total shareholders' equity | $ (704,895) | $ (546,211) | $ (538,173) | 44,400 | (571,794) | $ (619,719) | $ (615,259) | $ (621,860) | $ (640,909) |
Interest adjustment due to ASU 2020-06 adoption | 60,800 | ||||||||
Tax impacts due to ASU 2020-06 adoption | 16,400 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Total shareholders' equity | (65,303) | ||||||||
Assets: | |||||||||
Deferred income tax assets | 23,979 | ||||||||
Liabilities: | |||||||||
Current portion of long-term debt | 3,213 | ||||||||
Long-term debt | 86,069 | ||||||||
Shareholders' equity: | |||||||||
Additional paid-in capital | (109,750) | ||||||||
Accumulated deficit | $ 44,447 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Total shareholders' equity | $ 44,447 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 237,836 | $ 297,450 | $ 782,937 | $ 840,214 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17 | 180 | 230 | 498 |
Home | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 64,927 | 112,422 | 240,809 | 345,408 |
Credit cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,298 | 26,914 | 81,426 | 66,975 |
Personal loans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 37,701 | 33,803 | 115,209 | 73,879 |
Other Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 40,662 | 39,294 | 113,238 | 92,740 |
Total Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 102,661 | 100,011 | 309,873 | 233,594 |
Insurance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 70,231 | $ 84,837 | $ 232,025 | $ 260,714 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract asset | $ 12.2 | $ 12.2 | $ 9.1 | ||
Contract liability | 0.9 | 0.9 | $ 0.8 | ||
Revenue recognized from prior period | $ 0.8 | $ 0.7 | |||
Estimated variable consideration, increase in revenue | $ 0.1 | $ 0.4 |
CASH AND RESTRICTED CASH (Detai
CASH AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 285,538 | $ 251,231 | ||
Restricted cash and cash equivalents | 127 | 111 | ||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ 285,665 | $ 251,342 | $ 215,385 | $ 170,049 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of the period | $ 2,300 | $ 1,473 | $ 1,456 | $ 1,402 |
Charges to earnings | 679 | 678 | 2,708 | 1,823 |
Write-off of uncollectible accounts receivable | (623) | (645) | (1,808) | (1,724) |
Recoveries collected | 0 | 0 | 0 | 5 |
Balance, end of the period | $ 2,356 | $ 1,506 | $ 2,356 | $ 1,506 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Balance of Goodwill, Net and Intangible Assets, Net (Details ) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 903,227 | $ 903,227 |
Accumulated impairment losses | (483,088) | (483,088) |
Net goodwill | 420,139 | 420,139 |
Intangible assets with indefinite lives | 10,142 | 10,142 |
Intangible assets with definite lives, net | 54,047 | 75,621 |
Total intangible assets, net | $ 64,189 | $ 85,763 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Intangible assets with definite lives | |||
Goodwill | $ 903,227,000 | $ 903,227,000 | |
Goodwill, Impairment Loss | $ 0 | ||
Home | |||
Intangible assets with definite lives | |||
Goodwill | 59,300,000 | 59,300,000 | |
Total Consumer | |||
Intangible assets with definite lives | |||
Goodwill | 166,100,000 | 166,100,000 | |
Insurance | |||
Intangible assets with definite lives | |||
Goodwill | $ 194,700,000 | $ 194,700,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Intangible assets with definite lives | ||
Cost | $ 162,900 | $ 202,800 |
Accumulated Amortization | (108,853) | (127,179) |
Total intangible assets with definite lives, net | 54,047 | 75,621 |
Technology | ||
Intangible assets with definite lives | ||
Cost | 74,900 | 87,700 |
Accumulated Amortization | (71,108) | (69,369) |
Total intangible assets with definite lives, net | 3,792 | 18,331 |
Customer lists | ||
Intangible assets with definite lives | ||
Cost | 77,300 | 77,300 |
Accumulated Amortization | (29,248) | (24,668) |
Total intangible assets with definite lives, net | 48,052 | 52,632 |
Trademarks and tradenames | ||
Intangible assets with definite lives | ||
Cost | 10,700 | 11,700 |
Accumulated Amortization | (8,497) | (7,767) |
Total intangible assets with definite lives, net | $ 2,203 | 3,933 |
Website content | ||
Intangible assets with definite lives | ||
Cost | 26,100 | |
Accumulated Amortization | (25,375) | |
Total intangible assets with definite lives, net | $ 725 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Amortization of Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortization of intangible assets with definite lives computed on a straight-line basis | ||
Remainder of current year | $ 3,682 | |
2023 | 8,602 | |
2024 | 6,747 | |
2025 | 6,259 | |
2026 | 5,504 | |
Thereafter | 23,253 | |
Total intangible assets with definite lives, net | $ 54,047 | $ 75,621 |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2021 | Oct. 31, 2021 | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | Jan. 31, 2022 | Jan. 06, 2021 | Feb. 28, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Impairment loss on equity method investments | $ 0 | ||||||||
EarnUp Inc. | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity investment, aggregate cost | $ 15,000,000 | ||||||||
Stash | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity investment, aggregate cost | $ 1,200,000 | $ 80,000,000 | |||||||
Proceeds from sale of equity method investments | $ 11,000,000 | $ 35,300,000 | $ 46,300,000 | ||||||
Realized gain from sale of equity method investment | $ 27,900,000 | ||||||||
Unrealized gain on investments | $ 95,400,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accrued expenses and other current liabilities | ||
Accrued advertising expense | $ 48,162 | $ 59,150 |
Accrued compensation and benefits | 8,954 | 16,330 |
Accrued professional fees | 3,021 | 1,887 |
Customer deposits and escrows | 7,442 | 7,546 |
Contribution to LendingTree Foundation | 0 | 3,333 |
Current lease liabilities | 8,909 | 8,595 |
Other | 7,976 | 9,890 |
Total accrued expenses and other current liabilities | $ 84,464 | $ 106,731 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 24, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Weighted average shares outstanding: | |||||||
Weighted average basic common shares (in shares) | 12,758,000 | 13,268,000 | 12,794,000 | 13,194,000 | |||
Effect of stock options (in shares) | 0 | 0 | 0 | 452,000 | |||
Effect of dilutive share awards (in shares) | 0 | 0 | 0 | 96,000 | |||
Effect of Convertible Senior Notes and warrants (in shares) | 0 | 0 | 0 | 55,000 | |||
Weighted average diluted common shares (in shares) | 12,758,000 | 13,268,000 | 12,794,000 | 13,797,000 | |||
Additional disclosure | |||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,000 | 400,000 | 200,000 | ||||
Common stock repurchases | |||||||
Value of common stock authorized to be repurchased | $ 150 | $ 100 | |||||
Purchased shares of common stock under stock repurchase program (in shares) | 379,895 | ||||||
Remaining authorized repurchase amount | $ 96.7 | $ 96.7 | |||||
2025 Convertible Notes | Convertible Debt | |||||||
Additional disclosure | |||||||
Stated interest rate | 0.50% | 0.50% | 0.50% | ||||
2022 Convertible Notes | Convertible Debt | |||||||
Additional disclosure | |||||||
Stated interest rate | 0.625% | 0.625% | |||||
Option | |||||||
Additional disclosure | |||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,000,000 | 900,000 | 1,000,000 | 400,000 | |||
Restricted Stock Units (RSUs) | |||||||
Additional disclosure | |||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 500,000 | 200,000 | 400,000 | 100,000 | |||
Convertible Debt | |||||||
Additional disclosure | |||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,200,000 | 2,100,000 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Non-cash Compensation Related to Equity Awards (Details ) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total non-cash compensation | $ 15,575 | $ 17,074 | $ 47,990 | $ 51,804 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total non-cash compensation | 417 | 371 | 1,252 | 1,231 |
Selling and marketing expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total non-cash compensation | 2,198 | 1,805 | 6,522 | 5,583 |
General and administrative expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total non-cash compensation | 11,212 | 13,233 | 32,685 | 38,658 |
Product development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total non-cash compensation | 1,748 | 1,665 | 6,448 | 6,332 |
Restructuring and severance | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total non-cash compensation | $ 0 | $ 0 | $ 1,083 | $ 0 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock Options and Stock Options with Market Conditions (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Stock options, Grant Date Fair Value Valuation | |
Share price (in dollars per share) | $ / shares | $ 23.86 |
Grant date fair value (in dollars per share) | $ / shares | $ 53.21 |
Option | |
Stock options, Shares | |
Outstanding at the beginning of the period (in shares) | shares | 676,293 |
Granted (in shares) | shares | 157,632 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | (20,089) |
Expired (in shares) | shares | (6,475) |
Outstanding at the end of the period (in shares) | shares | 807,361 |
Options exercisable at the end of the period (in shares) | shares | 489,581 |
Stock options, Weighted Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 169.71 |
Granted (in dollars per share) | $ / shares | 103.54 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 205.97 |
Expired (in dollars per share) | $ / shares | 256.11 |
Outstanding at the end of the period (in dollars per share) | $ / shares | 155.20 |
Options exercisable at the end of the period (in dollars per share) | $ / shares | $ 126.08 |
Stock options, Weighted Average Remaining Contractual Term | |
Options outstanding at the end of the period (in years) | 5 years 5 months 19 days |
Options exercisable at the end of the period (in years) | 3 years 4 months 20 days |
Stock options, Aggregate Intrinsic Value | |
Outstanding at the end of the period | $ | $ 3,000 |
Options exercisable at the end of the period | $ | $ 3,000 |
Stock options, Grant Date Fair Value Valuation | |
Expected dividend rate | 0% |
Expected volatility, minimum | 53% |
Expected volatility, maximum | 56% |
Risk-free interest rate, minimum | 1.62% |
Risk-free interest rate, maximum | 3.23% |
Expected dividends | $ | $ 0 |
Option | Maximum | |
Stock options, Grant Date Fair Value Valuation | |
Expected term (in years) | 6 years |
Option | Minimum | |
Stock options, Grant Date Fair Value Valuation | |
Expected term (in years) | 5 years |
Option | Share-Based Payment Arrangement, Tranche One | Maximum | |
Stock options, Grant Date Fair Value Valuation | |
Vesting period (in years) | 1 year |
Option | Share-Based Payment Arrangement, Tranche Two | |
Stock options, Grant Date Fair Value Valuation | |
Vesting period (in years) | 3 years |
Market options | |
Stock options, Shares | |
Outstanding at the beginning of the period (in shares) | shares | 700,209 |
Granted (in shares) | shares | 47,639 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | (13,163) |
Outstanding at the end of the period (in shares) | shares | 734,685 |
Options exercisable at the end of the period (in shares) | shares | 481,669 |
Stock options, Weighted Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 236.01 |
Granted (in dollars per share) | $ / shares | 195.10 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 378.95 |
Outstanding at the end of the period (in dollars per share) | $ / shares | 230.79 |
Options exercisable at the end of the period (in dollars per share) | $ / shares | $ 195.10 |
Stock options, Weighted Average Remaining Contractual Term | |
Options outstanding at the end of the period (in years) | 5 years 11 months 8 days |
Options exercisable at the end of the period (in years) | 4 years 10 months 6 days |
Stock options, Aggregate Intrinsic Value | |
Outstanding at the end of the period | $ | $ 0 |
Options exercisable at the end of the period | $ | $ 0 |
Stock options, Grant Date Fair Value Valuation | |
Maximum number of shared to be earned | shares | 422,537 |
Percentage of target number of shares | 167% |
Performance awards earned (in shares) | shares | 0 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of RSA & RSU (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Restricted Stock Units (RSUs) | |
Nonvested RSUs and Restricted Stock Units, Number of Shares | |
Nonvested at the beginning of the period (in shares) | 308,068 |
Granted (in shares) | 402,960 |
Vested (in shares) | (125,961) |
Forfeited (in shares) | (79,112) |
Nonvested at the end of the period (in shares) | 505,955 |
Nonvested RSUs and Restricted Stock Units,, Weighted Average Grant Date Fair Value | |
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 226.55 |
Granted (in dollars per share) | $ / shares | 101.14 |
Vested (in dollars per share) | $ / shares | 243.60 |
Forfeited (in dollars per share) | $ / shares | 167.83 |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 131.60 |
Restricted Stock Units with Performance Conditions | |
Nonvested RSUs and Restricted Stock Units, Number of Shares | |
Nonvested at the beginning of the period (in shares) | 0 |
Granted (in shares) | 16,000 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Nonvested at the end of the period (in shares) | 16,000 |
Nonvested RSUs and Restricted Stock Units,, Weighted Average Grant Date Fair Value | |
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 83.25 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 83.25 |
Maximum number of shared to be earned | 24,000 |
Percentage of target number of shares | 150% |
Restricted Stock Awards with Market Conditions | |
Nonvested RSUs and Restricted Stock Units, Number of Shares | |
Nonvested at the beginning of the period (in shares) | 26,674 |
Granted (in shares) | 2,927 |
Vested (in shares) | (29,601) |
Forfeited (in shares) | 0 |
Nonvested at the end of the period (in shares) | 0 |
Nonvested RSUs and Restricted Stock Units,, Weighted Average Grant Date Fair Value | |
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 340.25 |
Granted (in dollars per share) | $ / shares | 340.25 |
Vested (in dollars per share) | $ / shares | 340.25 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 0 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - Employee Stock - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 243,929 | 262,731 |
Purchase price of common stock, percent | 85% | |
Offering period (in months) | 6 months | |
Purchase period (in months) | 6 months | |
Shares issued under ESPP (in shares) | 13,259 | |
Grant date fair value (in dollars per share) | $ 20.96 | |
Expected term (in years) | 6 months | |
Expected dividend rate | 0% | |
Expected dividends | $ 0 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 49% | |
Risk-free interest rate | 0.19% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 73% | |
Risk-free interest rate | 2.51% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (expense) benefit | $ (135,910) | $ 1 | $ (133,956) | $ 455 |
Effective tax rate | (596.80%) | 0% | (307.30%) | (1.90%) |
Federal statutory income tax rate | 21% | 21% | 21% | 21% |
Income tax expense from valuation allowance | $ (139,670) | $ 0 | $ (139,670) | $ 0 |
Excess tax expense (benefit) on stock compensation | 1,752 | $ 938 | 4,658 | $ (7,355) |
Valuation allowance | $ 146,000 | $ 146,000 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax (Expense) Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit (expense) - excluding excess tax expense from valuation allowance and excess tax (expense) benefit on stock compensation | $ 5,512 | $ 939 | $ 10,372 | $ (6,900) |
Income tax expense from valuation allowance | (139,670) | 0 | (139,670) | 0 |
Excess tax (expense) benefit on stock compensation | (1,752) | (938) | (4,658) | 7,355 |
Income tax (expense) benefit | $ (135,910) | $ 1 | $ (133,956) | $ 455 |
DEBT - Convertible Senior Notes
DEBT - Convertible Senior Notes Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||||||
Jun. 01, 2022 USD ($) | Jul. 24, 2020 USD ($) day $ / shares Rate shares | Sep. 30, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | May 31, 2017 USD ($) | May 31, 2017 | May 31, 2017 shares | May 31, 2017 $ / shares | May 31, 2017 Rate | |
Debt Instrument [Line Items] | |||||||||||
Amortization of debt issuance costs | $ 5,443,000 | $ 3,756,000 | |||||||||
Amortization of debt discount | 1,475,000 | 22,297,000 | |||||||||
Repayments of convertible debt | 169,659,000 | 0 | |||||||||
2025 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Initial conversion rate, shares per $1,000 principal amount of notes | shares | 2.1683 | ||||||||||
Initial conversion price per share (in dollars per share) | $ / shares | $ 461.19 | ||||||||||
Cash repurchase at a price equal to the principal amount of the notes, percentage | Rate | 100% | ||||||||||
Nonconvertible debt borrowing rate at the date of issuance | Rate | 5.30% | ||||||||||
Debt component of the principal amount | $ 455,600,000 | ||||||||||
Equity component of the principal amount | 119,400,000 | ||||||||||
Financing costs | 15,100,000 | ||||||||||
Debt issuance costs | 12,000,000 | 8,496,000 | $ 8,855,000 | ||||||||
Debt issuance costs, equity component | $ 3,100,000 | ||||||||||
Interest expense | 4,400,000 | 20,300,000 | |||||||||
Interest expense recognized associated with the coupon rate | 2,100,000 | 2,200,000 | |||||||||
Annual interest rate on convertible senior notes | 0.50% | ||||||||||
Amortization of debt issuance costs | $ 2,300,000 | 1,700,000 | |||||||||
Amortization of debt discount | 16,400,000 | ||||||||||
2025 Convertible Notes | Conversion option one | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold trading days | day | 20 | ||||||||||
Threshold consecutive trading days | day | 30 | ||||||||||
Conversion rate, sales price of common stock as a percentage of the conversion price | Rate | 130% | ||||||||||
2025 Convertible Notes | Conversion option two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold trading days | day | 5 | ||||||||||
Threshold consecutive trading days | day | 5 | ||||||||||
Conversion rate | Rate | 98% | ||||||||||
2025 Convertible Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 575,000,000 | ||||||||||
Stated interest rate | 0.50% | 0.50% | |||||||||
Fair value | $ 411,800,000 | ||||||||||
2025 Notes Under 13-day Purchase Option | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 75,000,000 | ||||||||||
2022 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 300,000,000 | ||||||||||
Initial conversion rate, shares per $1,000 principal amount of notes | shares | 4.8163 | ||||||||||
Initial conversion price per share (in dollars per share) | $ / shares | $ 207.63 | ||||||||||
Nonconvertible debt borrowing rate at the date of issuance | 5.36% | ||||||||||
Debt component of the principal amount | 238,400,000 | ||||||||||
Equity component of the principal amount | 61,600,000 | ||||||||||
Financing costs | 9,300,000 | ||||||||||
Debt issuance costs | 0 | $ 391,000 | 7,400,000 | ||||||||
Debt issuance costs, equity component | $ 1,900,000 | ||||||||||
Interest expense | 800,000 | 7,100,000 | |||||||||
Interest expense recognized associated with the coupon rate | $ 400,000 | $ 800,000 | |||||||||
Annual interest rate on convertible senior notes | 0.625% | 0.625% | 0.625% | 0.625% | |||||||
Amortization of debt issuance costs | $ 400,000 | $ 700,000 | |||||||||
Amortization of debt discount | $ 5,600,000 | ||||||||||
Repayments of convertible debt | $ 169,700,000 | 234,000,000 | |||||||||
Debt repurchase amount | 130,300,000 | ||||||||||
Debt repurchased amount, accrued interest | 100,000 | ||||||||||
Extinguishment of debt | 126,000,000 | ||||||||||
Adjustments to Additional Paid in Capital, Repurchase of Convertible Debt | $ 107,900,000 | ||||||||||
Loss on extinguishment of debt | $ 7,800,000 | ||||||||||
2022 Convertible Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 0.625% |
DEBT - Components of Notes (Det
DEBT - Components of Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Jul. 24, 2020 | May 31, 2017 |
Debt Instrument [Line Items] | |||||
Net carrying amount | $ 813,395 | $ 564,220 | $ 478,151 | ||
2025 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Gross carrying amount | 575,000 | 575,000 | |||
Unamortized debt discount | 0 | 87,994 | |||
Debt issuance costs | 8,496 | 8,855 | $ 12,000 | ||
Net carrying amount | 566,504 | 478,151 | |||
2022 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Gross carrying amount | 0 | 169,659 | |||
Unamortized debt discount | 0 | 3,260 | |||
Debt issuance costs | 0 | 391 | $ 7,400 | ||
Net carrying amount | $ 0 | $ 166,008 |
DEBT - Convertible Note Hedge a
DEBT - Convertible Note Hedge and Warrant Transactions (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 24, 2020 | May 31, 2017 | Sep. 30, 2022 | Jul. 21, 2020 | May 24, 2017 |
Debt Instrument [Line Items] | |||||
Share price (in dollars per share) | $ 23.86 | ||||
Termination of convertible note hedge on the 0.625% Convertible Senior Notes | $ 109.9 | ||||
Payments for repurchase of warrants | 94.3 | ||||
2020 Hedge and Warrants | |||||
Debt Instrument [Line Items] | |||||
Net proceeds from debt used to pay for the cost of the hedge | 63 | ||||
Payment of convertible note hedge transactions | $ 124.2 | ||||
Number of shares covered by the hedge transactions | 1.2 | ||||
Initial conversion price per share (in dollars per share) | $ 461.19 | ||||
Strike price of warrants sold (in dollars per share) | $ 709.52 | ||||
Premium of warrant strike price over sales price of common stock | 100% | ||||
Share price (in dollars per share) | $ 354.76 | ||||
Proceeds from the sale of warrants related to the Convertible Senior Notes | $ 61.2 | ||||
2017 Hedge and Warrants | |||||
Debt Instrument [Line Items] | |||||
Net proceeds from debt used to pay for the cost of the hedge | $ 18.1 | ||||
Payment of convertible note hedge transactions | $ 61.5 | ||||
Number of shares covered by the hedge transactions | 1.4 | ||||
Initial conversion price per share (in dollars per share) | $ 207.63 | ||||
Strike price of warrants sold (in dollars per share) | $ 266.39 | ||||
Premium of warrant strike price over sales price of common stock | 70% | ||||
Share price (in dollars per share) | $ 156.70 | ||||
Proceeds from the sale of warrants related to the Convertible Senior Notes | $ 43.4 | ||||
Warrants outstanding (in shares) | 0.8 | ||||
Proceeds from hedge and warrants | $ 15.6 |
DEBT - Credit Facility (Details
DEBT - Credit Facility (Details) | 9 Months Ended | 12 Months Ended | ||||||
Jun. 01, 2022 USD ($) | May 31, 2022 USD ($) | Sep. 15, 2021 USD ($) | Dec. 10, 2019 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Proceeds from term loan | $ 250,000,000 | $ 0 | ||||||
Current portion of long-term debt | 2,484,000 | $ 166,008,000 | $ 169,221,000 | |||||
Letters of credit outstanding | 200,000 | 200,000 | ||||||
Write-off of previously-capitalized debt issuance costs | 0 | 1,066,000 | ||||||
Amortization of debt issuance costs | 5,443,000 | 3,756,000 | ||||||
Amortization of debt discount | 1,475,000 | 22,297,000 | ||||||
Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Collateral, percent of domestic subsidiaries equity | 100% | |||||||
Collateral, percent of voting equity | 65% | |||||||
Collateral, percent of non-voting equity | 100% | |||||||
Letter of credit fronting fee percentage | 0.125% | |||||||
Letter of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | |||||||
Fed Funds Effective Rate | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
LIBOR | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1% | |||||||
Minimum | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused capacity, commitment fee percentage | 0.25% | |||||||
Letter of credit participation fee percentage | 2.25% | |||||||
Maximum | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused capacity, commitment fee percentage | 0.50% | |||||||
Letter of credit participation fee percentage | 2.75% | |||||||
Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit outstanding | 0 | |||||||
Credit Agreement | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit outstanding | 0 | |||||||
Potential additional borrowing capacity | $ 116,000,000 | |||||||
Credit agreement, ratio of debt to EBITDA | 3 | |||||||
Ratio of debt to EBITDA | 2.50 | |||||||
Ratio of debt to EBITDA increase | 0.50 | |||||||
Restricted payment covenant total net leverage ratio | 4 | |||||||
Premium percentage | 0.010 | |||||||
Premium percentage period (in months) | 6 months | |||||||
Credit Agreement | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||
Capacity available for general corporate purchases | 79,800,000 | |||||||
Covenant threshold | 20,000,000 | |||||||
Fees and expense paid to lenders at closing | 2,800,000 | |||||||
Interest expense | 1,100,000 | 3,000,000 | ||||||
Unused commitment fees | 400,000 | 1,800,000 | ||||||
Amortization of debt issuance costs | 700,000 | 1,200,000 | ||||||
Credit Agreement | Delayed Draw Term Loan | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | 250,000,000 | |||||||
Proceeds from term loan | $ 250,000,000 | |||||||
Line of credit outstanding | 249,400,000 | |||||||
Current portion of long-term debt | 2,500,000 | |||||||
Fees and expense paid to lenders at closing | 3,500,000 | |||||||
Unamortized debt discount | $ 2,500,000 | |||||||
Interest expense | 13,500,000 | 700,000 | ||||||
Unused commitment fees | 5,100,000 | 400,000 | ||||||
Amortization of debt issuance costs | 2,000,000 | 200,000 | ||||||
Amortization of debt discount | $ 1,500,000 | 100,000 | ||||||
Credit Agreement | LIBOR | Delayed Draw Term Loan | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 6.87% | |||||||
Interest expense recognized associated with the coupon rate | $ 4,900,000 | |||||||
Credit Agreement | Minimum | LIBOR | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Credit Agreement | Minimum | LIBOR | Delayed Draw Term Loan | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 3.75% | |||||||
Credit Agreement | Minimum | Base Rate | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Credit Agreement | Minimum | Base Rate | Delayed Draw Term Loan | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Credit Agreement | Maximum | LIBOR | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Credit Agreement | Maximum | LIBOR | Delayed Draw Term Loan | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 4% | |||||||
Credit Agreement | Maximum | Base Rate | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Credit Agreement | Maximum | Base Rate | Delayed Draw Term Loan | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 3% | |||||||
2022 Convertible Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds used to settle outstanding balance of debt instrument | $ 170,200,000 | |||||||
Unamortized debt discount | 0 | 3,260,000 | ||||||
Interest expense | 800,000 | 7,100,000 | ||||||
Amortization of debt issuance costs | 400,000 | 700,000 | ||||||
Interest expense recognized associated with the coupon rate | $ 400,000 | 800,000 | ||||||
Amortization of debt discount | $ 5,600,000 | |||||||
Amended Revolving Credit Facility | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Debt term (in years) | 5 years | |||||||
Write-off of previously-capitalized debt issuance costs | $ 1,100,000 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued litigation liability | $ 0.1 | $ 0.1 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Total net losses (gains) included in earnings (realized and unrealized) | $ 0 | $ (196,000) | $ 0 | $ (8,249,000) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Contingent consideration, beginning of period | 196,000 | 8,249,000 | $ 8,249,000 | ||
Transfers into Level 3 | 0 | 0 | |||
Transfers out of Level 3 | 0 | 0 | |||
Total net losses (gains) included in earnings (realized and unrealized) | $ 0 | (196,000) | $ 0 | (8,249,000) | |
Additions | 0 | 0 | |||
Payments | 0 | 0 | |||
Contingent consideration, end of period | 0 | 0 | |||
QuoteWizard | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Total net losses (gains) included in earnings (realized and unrealized) | (200,000) | (8,200,000) | |||
Contingent consideration payment | $ 0 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total net losses (gains) included in earnings (realized and unrealized) | $ (200,000) | $ (8,200,000) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Segment Information | |||||
Number of operating segments | segment | 3 | ||||
Number of reportable segments | segment | 3 | ||||
Revenue | $ 237,836 | $ 297,450 | $ 782,937 | $ 840,214 | |
Segment marketing expense | 145,569 | 184,510 | 497,441 | 525,327 | |
Segment profit (loss) | 92,267 | 112,940 | 285,496 | 314,887 | |
Cost of revenue | 14,105 | 15,020 | 44,240 | 42,849 | |
Brand and other marketing expense | 31,306 | 21,965 | 68,128 | 63,816 | |
General and administrative expense | 39,540 | 40,126 | 115,802 | 114,926 | |
Product development | 14,043 | 13,384 | 42,413 | 39,142 | |
Depreciation | 5,274 | 4,808 | 15,024 | 12,969 | |
Amortization of intangibles | 6,582 | 10,345 | 21,574 | 32,967 | |
Change in fair value of contingent consideration | 0 | (196) | 0 | (8,249) | |
Restructuring and severance | 0 | 47 | $ 3,760 | 3,760 | 47 |
Litigation settlements and contingencies | (7) | 22 | (41) | 360 | |
Operating (loss) income | (18,576) | 7,419 | (25,404) | 16,060 | |
Interest expense, net | (5,720) | (11,826) | (19,990) | (31,881) | |
Other income | 1,523 | 0 | 1,806 | 40,072 | |
(Loss) income before income taxes | (22,773) | (4,407) | (43,588) | 24,251 | |
Home | |||||
Segment Information | |||||
Revenue | 64,927 | 112,422 | 240,809 | 345,408 | |
Segment marketing expense | 40,810 | 70,905 | 154,043 | 225,884 | |
Segment profit (loss) | 24,117 | 41,517 | 86,766 | 119,524 | |
Consumer | |||||
Segment Information | |||||
Revenue | 102,661 | 100,011 | 309,873 | 233,594 | |
Segment marketing expense | 56,868 | 55,295 | 176,985 | 130,877 | |
Segment profit (loss) | 45,793 | 44,716 | 132,888 | 102,717 | |
Insurance | |||||
Segment Information | |||||
Revenue | 70,231 | 84,837 | 232,025 | 260,714 | |
Segment marketing expense | 47,663 | 58,227 | 165,770 | 168,024 | |
Segment profit (loss) | 22,568 | 26,610 | 66,255 | 92,690 | |
Other | |||||
Segment Information | |||||
Revenue | 17 | 180 | 230 | 498 | |
Segment marketing expense | 228 | 83 | 643 | 542 | |
Segment profit (loss) | $ (211) | $ 97 | $ (413) | $ (44) |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue and net income (loss) of discontinued operations | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Loss before income taxes | 0 | (103) | (6) | (4,717) |
Income tax benefit | (1) | 49 | 2 | 1,201 |
Net loss | $ (1) | $ (54) | $ (4) | $ (3,516) |
RESTRUCTURING ACTIVITIES (Detai
RESTRUCTURING ACTIVITIES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) employee | Mar. 31, 2022 USD ($) employee | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees eliminated in workforce reduction | employee | 25 | 75 | |||||
Total restructuring charges | $ 0 | $ 47 | $ 3,760 | $ 3,760 | $ 47 | ||
Restructuring and severance | 2,700 | ||||||
Non-cash compensation due to accelerated vesting of equity awards | 1,083 | 1,100 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued Balance at beginning of period | 159 | $ 0 | 0 | 0 | |||
Income Statement Impact | 0 | $ 47 | 3,760 | 3,760 | $ 47 | ||
Payments | (2,518) | ||||||
Non-Cash | (1,083) | (1,100) | |||||
Accrued Balance at end of period | $ 159 | 159 | |||||
Employee separation payments | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total restructuring charges | 2,677 | ||||||
Non-cash compensation due to accelerated vesting of equity awards | 0 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued Balance at beginning of period | 159 | 0 | 0 | 0 | |||
Income Statement Impact | 2,677 | ||||||
Payments | (2,518) | ||||||
Non-Cash | 0 | ||||||
Accrued Balance at end of period | 159 | 159 | |||||
Non-cash compensation | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total restructuring charges | 1,083 | ||||||
Non-cash compensation due to accelerated vesting of equity awards | 1,083 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued Balance at beginning of period | $ 0 | $ 0 | 0 | $ 0 | |||
Income Statement Impact | 1,083 | ||||||
Payments | 0 | ||||||
Non-Cash | (1,083) | ||||||
Accrued Balance at end of period | $ 0 | $ 0 |