LendingTree (TREE) 5 May 202020 Q1 Earnings call transcript

Company Profile

Participants

Trent Ziegler	VP of IR
Douglas Lebda	Founder, Chairman and CEO
J.D. Moriarty	CFO
Eric Wasserstorm	UBS
Jed Kelly	Oppenheimer
Mark Mahaney	RBC Capital Markets
John Campbell	Stephens, Inc
Mayank Tandon	Needham & Company
Michael Grondahl	Northland Securities
Youssef Squali	SunTrust Robinson Humphrey
James Friedman	Susquehanna Financial Group
Robert Wildhack	Autonomous Research
Melissa Weddle	J.P. Morgan
Chris Gamaitoni	Compass Point
Kunal Madhukar	Deutsche Bank

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the LendingTree Incorporated First Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Trent Ziegler, Head of Investor Relations. you. Thank sir. ahead go Please

Trent Ziegler

by thanks Michelle. the quarter everyone joining Moriarty. call and financial Lebda; CEO, and CFO, Good this morning morning J.D. today the call on first I'm thanks Chairman to and results. Doug for joined Great, LendingTree’s discuss XXXX LendingTree’s

Before could risks differ Many results forward-looking filed from may just expectations the discuss everyone of I for over uncertainties and statements risks during today. actual and that future SEC. are reports I'll materially the views expressed LendingTree’s Doug, call but the These are LendingTree’s to LendingTree’s subject with today's hand performance. the periodic to remind call all not described we face we in

measures refer letter investors.lendingtree.com And of call We that, to will Doug. to definitions on website on GAAP also the turn measures, GAAP. you it And and full shareholder today's and discuss I press both release available the comparable at our reconciliations non-GAAP today. for a I'll measures to of non-GAAP with variety

Douglas Lebda

Trent joining difficult I your the and you safe call ones you, and for remain hope healthy loved during thanks times. and these today. Thank everyone

that Before our want I get point are to of we the adjusting format call. out started we

think focused our published to more calls on letter As morning us Relations We make letter website our provides predominantly you and from for a earlier a and platform share link we have the Q&A. hopefully to our seen release. efficient have press this shareholder better detailed our Investor thoughts to conference it

right some will into brief questions. So opening with remarks get give that we I your will and

in that's on. of proud am particularly I incredibly first everything our going quarter of First light results

strength original our to that all strengthen of EBITDA flexibility to accelerate in responded our but guidance. rapid business innovation, is our diversification the the and changing has team team testament look and over last enabling a our We're drive -- This meet and strengthen on us we to strength and of have to the the team and only The quickly decisively resiliency years weeks partner several not our position Our offensive the relationships, our adjusted of model have to experienced and gains. the conditions we in opportunities competitive further to our product quarters to encouraging share remain to put model. ahead. us enable place for market the

in mortgage with in discussed and I'm progress experience We've in we've critical the against initiatives LendingTree. in scaling particularly the made more is two these strategic involving very results. progress of our the My case shareholder and evident detail happy our mortgage our

company, that periods going again. plus Q&A successfully Before like years XX through add as to I'd this time a we've our just and in managed

doesn't that this questions. opportunities change they is the necessarily they model from with been emerge that the feel drive business these better, operator, losers. open winners proven and the times it separate ever our I've good line And company. period will a that can for stronger we we always from the While and always create moment as in like I'm and confident as

Operator

[Operator Instructions].

question line the UBS. first Your Eric comes from with Wasserstrom of

Eric Wasserstrom

me okay guys can Doug. thanks, hear you Great, me. you hear Can

Douglas Lebda

We can Yes. you. hear

Eric Wasserstrom

those markets? versus on just if it's Okay, in could shareholder in any house, maybe at the lender and what small going changes Thanks in letter, J.D. you questions of highlighted much, personal what great. card, terms end conditions give quick or two particularly you in very in Doug and a Thanks. us on business update changed and Doug all was

Douglas Lebda

and take Jay, why don't a you and will talk I card small personal business.

J.D. Moriarty

Sure.

we've and here this gotten context. small are me personal card, and that In personal, put what highlighted in So, obviously, is, Eric most I let small we've affected guess Personal loans, it businesses business. business three profoundly lenders markets and many like make those the high they capital Doug small network to rely like touch cases XXs on will in access number of small to business, business on lenders business loans. and the small on

so started challenging become when to right them, they up. started away capital the to seize for And markets in activity March

from had we lenders loan from pulled we lenders card that, a Having credit business personal So cards. quicker from issuers reaction well. and than small have as back said did

So a right. in of the any is It's it different bit different no. than driver, letter, what's little a

want a about think it's good know that to a spend. card, issue two, after? incentive One, going you consumer If are want they new issuer but a for to credit, they card they to what a who's the obviously

well, all right. right too you so now, And as know

So about either. they not are enthusiastic

acquire underwriting standards is but will up, because diminished is go So new in the the not there. to card customers simply their desire spend

we loans, to who capital. personal access have lenders have in Now, don't

that And So in the we of marketplace side to is case, talked capacity reduction remains those about, businesses. that as we referred XX% in XX% that's lender and one capacity. impaired, lender to the

as not of interest might the much which Now, part intuitive. personal interestingly have don't sound in on consumers, also we loans

event focused people in a You would why or loan. think where they're need all are repair, home a those people environment, people There's But think life economic their going personal that the on they're about in an out doing money. things things today. take vacation reasons just that positive aren't this on

comes as useful, the We're consumers index, we basis we of it's about three as desire loans. because the see That lenders of So right show just well. publish it personal the back great hope a it. the personal industry, now you do basis of equation not and will I the if come side situation. you you'll that some out loan lending seeing on And personal you the very to economic and a that will economy take to will on we encourage weekly Google regular data back loan

to as credit consumer. ROI of see case said, need issuing a to the In card new positive from they cards, a I a

card. could period we've of time so issuers a the where sidelines. as issuer some in Initially, saw it the they seen And they card to share market thought step we using take

tapered Some of off. that has

card see real in a diminishment capacity. very of again we So diminished

so that's Doug really driver address I'll And respect business. let the with to it there. small

Douglas Lebda

story a personal similar respect loans. small business to it's With to

about overall you If basically we're demand. and balancing supply the again, think marketplace,

level So on helps. or a on first high that mortgage, not the and dependent fact dependent not etc., card credit we're off, diversified on

until arrows always things in to have closed we [ph] both When business news don't are the off. marketing, gets the capital so We happens, that is good balance out. do

pulling companies saw been in have their They their loans. little be card In sell area of in that comes lenders, reins lender they're healthy. capital are health, back as a issuers layoffs obviously terms appropriately expect bit. that they're the will being Personal though as doing all just loan come healthy, in sources but back that Obviously, capital we card, healthy.

lenders were lenders on business, capital issue, capital doing that the issue, not And loans working the from investors. comes non-SBA with our mostly small

we As there as up SBA using that capital away and marketplace, opportunity up an that lenders, but several goes was signed to opened there. away an expand pivot that goes we're further

think are appropriate, lenders they pull So like, decisions they're and I are uncertainty. to under of appropriate overall, which making back riding making healthy economic times I and in

Eric Wasserstrom

next of and OPEX how of contraction but about it's just and cadence we continued should how cadence you investment over that think operating can just on on over discretionary the should thinking any than about and sort XQ this the us of the but remainder EBITDA you're VMM points of year revenue, of guidance if give the a three that? down, that And the quarters, think maybe mentioned, imply we the up you would follow of the guidance about coming if at how expense I lesser can point pace

Douglas Lebda

you J.D. one. that want to hit first

J.D. Moriarty

Yeah, yeah, absolutely.

that hires business. play we So that a Eric, our going throughout refer go make year. into going to as we the obviously few the with those strategic we're cards year to to in quite And we're

strategic to make now, forward of each of that right we're but we've -- like the back the we to different simply on a hiring, each a going to different through be to cards. okay, now? intend advantage play business. associated when strategic cards business saying to The position period some move they in those through how the some business cost all time very that some of and puts the are to freeze areas is we re-evaluate and environment. this that the want initiatives is not gaps. right actually because we're take We our this grow to we gone we're going what's go going exactly are on press sure actually want hit. process competitive out the owner said, so where to now mindful But And with right When we're Obviously, going based be right

for are revenue in OPEX, to plans to Now, drive opportunity. investing it's We're our to no, is we relative sure. be what certain businesses. down that strategically were of the cognizant going But going

we I is first cost How the thing about for that's XX% mandate. in you of should environment, this points As be good thing think, the all, nice Doug structure a out, and OPEX how do right variable. have our think in? position in to comes we're can everybody's of XXXX

come And is acquire dropped so opportunity has to news -- actually is that the which businesses revenue faster, have the come cost down, in has down, in these great. good revenue all customers come where the has

to the that's first healthy address just thing model. cost and about the we were that so able that's And the

of OPEX all for there's it hiring adjusting the the for most priorities. re-evaluating and Then year and incremental this we're strategic

talked OPEX about, steps for up see then and it is is you'll throughout kind so have in us QX leveled what And the happens we what year. of as is typically

the XXXX you'll and what the come go those candidly period It and hires, XXXX as for down able this We down. levered revenue aggressive. won't and headcount to to into we're think and under we see be come is I do are. relatively see of to and thrilled piece it because we're build you'll that much business it that probably making as

Eric Wasserstrom

for much questions. my so Thanks taking

Operator

the next Kelly line Jed Oppenheimer. question comes Your from with of

Jed Kelly

okay? taking question. me you Great, hear thanks for my Can

Douglas Lebda

hey Jed, you. how are Yes,

Jed Kelly

safe. everyone's Hope good. Hey,

lately talk Just versus on on you have investment, you a for challenger banks segment, one about all trends are versus any reason the kind about couple to stimulate get how of shopping? to sort to think the the ability can And trended demand and a in of consumers demand questions; industry? the marketplace of to Stash your chose insurance March that in invest why then platform first, creating

Douglas Lebda

want you one. first take the to do J.D.

J.D. Moriarty

Yeah, absolutely.

if you on first as question to you Trent look looked kind and was at pointed February think the insurance, out, have timeline great. at doing a January and of insurance I Jed So,

a of season, have tax typically industry, which time right. period insurance in is refund the You

period. ended somewhat it sales was that you mid-February in be that was at around a from that this a and So abruptly short-lived to year auto a This typically period insurance with mid-March, March Typically, if to would and results get short-lived Xth. it correlate file purchase car year who that somewhat. refund, back and they that some And getting tax activity. tends people for quickly, are money in look

And the of -- the of on. to carrier a would looking think characterize the insurance And you way so there have terms the it I steal the sale insurer lot because consumer didn't was from view that in was that intent. that's the team activity of the but wasn't high auto -- consumer was consumer, going our

spend And high it were reluctant so have the traffic lot to intent. that if didn't a carriers for

activities on cases, But obviously now based of that are And mid-March, and that also We mid March the In And of Allstate fact the see of there, that. environment also cognizant driving improvement of headlines an happy improvement. with we're returning you've and diminished down some which policies money, made much seen etc. conscious around we're economic in insurance returning be the we're accidents to that in is, activity. period so obviously those money the of because kind down consumers. are since others the driving can late activity, are

So claims are down.

we I that And we good if say are very happy improved would carriers from to it to insurance. write we of that's March right. obviously about in do. on valuable in we're there, you activity period, area this lot We guess be What insurance, making term stimulate for -- is few that. content do content money to know SEO so around and But can need a with we're what certainly that a one areas, write interest hopeful you, will where and so the candidly I longer what that's

and that's LendingTree with we within that it. quarter job the We're talked we've doing and as happy insurance you good a well. about the of with Actually, to happy something we My integration are were also

probably are things macro there on we are So dwarfed they execution auto do is can the that sales. but trend the by side, which

should more position more we're how to characterize aggressive, to find and So it. be normalized continue carriers a a in the want going execute new in customers for is good I way to when

The there's second say there, question around impressed comment one the was versus we we and I is would it Doug marketplace Doug just part so team do, strategic and Stash that could a he approach? before guess obviously about let turn to Stash, on of I'll provider I so why talk And certainly with were which a question I'll that. this.

Douglas Lebda

addition So customer in the third really is then first off we to amazing experience Stash, like us. plus and streams about company and what is the is an revenue thing multiple the with team the thing them really second

had model thought Stash at you're it model. loans. consumer, that And member for be Wouldn't has base save but the however obviously We and through meta trading you'd be experience. obviously profitable great not etc it light the And that like we context and to It's through in the you're retain the we is in My that right doing hopefully pro like still would we not customer So has their would LendingTree assets for alerts, in Stash And we and model. with LendingTree an of budget, the we very now, invest same a monetization for can great also a under think two actually where right decision customer, loans very just in was right of and My they a think you're context will very, and already just you a experience applies, your thing right And do consumer really members great that. integrated you a that getting management it do option, us. once member improve do thing user they these model, LendingTree, think making if which can all improve the on their their us. also don't that to a time. functionality products and to revenue it's that alerts way. And My have very lenders, is also

is investment at things would going everything $XXX, talked to add J.D. variablization it, do can The looping I invest think about thing comment, project that only $XXX to a to get that. Eric's the how an if you done to through other LendingTree continue we we're Stash if investment. or of and about comes And as make back

the just modernization in you of some happens if environment businesses, However, them each those investments, what demanding of things down. you as given -- aren't your because think of our pull about in lenders to be economic is some so back right on

build are the natural Some where you're projects operating some the just you business. the economics drop those. slow made get of homerun. so change this. better integrated it the decision business we it. other and this it's do think you you if push strategically, profitable got that's the the do them the into through of of process that Stash but partner And profitable the doing each business runs -- of It's costs to if projects, basically products as -- way you we and the can ring we run right with And same But same the the just see thing with is a overall, away way and

Jed Kelly

Thank you.

Operator

Your line the Mahaney comes question with of RBC. from next Mark

Mark Mahaney

talking you know on sometime you and recovery and a first if of to segments and X about have what Thanks. we you back half the about months of in talk these that the curve look forecast, but can't you I be the slow, the will in of half which outlook, year, but, back the in of will do like segments could economic which an jagged think months, of solid a know I kind do that growth fastest thanks? Doug, of that Which the which recovery be XX could -- we're assume get of regular recovery. you we lagging, maybe do think XXXX kind GDP leading, recovers

Douglas Lebda

where Let's coming news it's and level. that the because them are the is many little them hurting. are let on environment this all our we're not. And be competitors, see, a) of you J.D. going at to for of in of high a Many broadly think us It's well to are them is. good capital that, going add many profitable versatile if to I'm about not wherever

lenders as lend And obviously, we'll lend, to to is sitting as of want in enough. make long the So sure, to borrowers and healthy consumer the borrow, just need fine middle things. you want do those

other in guess those hurt the and in comes would as Lending expectation expecting my sheets more solid the business of And capital And which I as when Club back personal more loans card longer would else which and And anybody's more competitors then we're are small But on want to put news happens almost who be and everybody personal ways, would to businesses come know platforms, as as probably than will long be same companies be are would wouldn't positioned thing in well, business, as better would Prosper but back back. it balance those that online more loan issuers, fine. and the the hedge can that invest people in I So credit that players, market. want share gain. that good card then going is it are bank their than the And think goes quite better to guys they're doing are the me. we frankly, the that. some is you our lenders, that funds come

probably that J.D. from pretty want… good do standpoint, it's you us. for So

J.D. Moriarty

really affected in the QX, businesses so capacity paused, in I are yeah, no presume that Mark, that they and say, we've our in paused. have just lenders okay no we would Mark, late in if We've highlighted. recovery assume assumed numbers recovery until capacity

QX? Now, to in on your part back. recovery why and would the to of that that in should there some be point, QX some begin extent you late Well, enthusiasm XXXX we stepping to get the anticipate lenders

we're assumed in that but there's capacity Now, and assuming not gradual some in full QX, to they it's capacity. in September we've that back that's when recovery come

In terms dinner as And and going back because there is spend anticipate to to balance and card the and I are you they're sheets comes etc. planning of that say have one think quicker. the those homes businesses, their I to just leave card again think, going people that start that trips,

I you've health issue but think a then it I to take so available. lender there would going for again, got would be longer card, personal and balance back the little So loan sheets think is to those

Now, you're from longer -- term, we really doesn't environment I for very do of small like administration, going And a think business. business business. mean to And have likely a the lending that it that in regardless from a the I friendly it's the of -- small very, go business of see small lot because government. private capital you lending of direction very to tenor

so crisis does Whether whole like post is So group flock there'll capital I time a we it there's private so to into. small much of that quarter think where different a that focused the and would available that's be capital comes business want new a XXXX and question. early But of over will quickly a lot back business fourth imagine in a lean business lenders business and small we to private the that that's become like. in financial we

Mark Mahaney

Doug. thanks J.D., thanks Okay,

Operator

of the Your line with question from next Inc. John Campbell comes Stephens,

John Campbell

Stash the investment. guys. morning. Congrats Good Hey, on

Douglas Lebda

morning. good Hey

John Campbell

morning. good Hey

if guys investment for like it guys. of seems really a good mean, core little do like sounds a LendingTree going days the opportunity you is is it the you mean, in it talked I some even sounds single On work the about I it doesn't but long that, kind term bit investment integration have Stash like Doug, ahead. there compelling be for a that a to obviously, thing

over how if help If look maybe up about you LendingTree within could maybe talk that the My could then time? to higher us level, us synergies might frame and you

Douglas Lebda

change also and so changes with think that if ahead, believes it, you make in your are decision. consumer helping work is add if life. we're can has need this -- integration to of And to companies focused -- piece. the being by up the a going their a a company The our piece consumer little big you aligned Yeah, whatever on about and lot about to through

helps do service, market of obvious in you that and LendingTree car, that loans. put alerts things personalization the will and that couple buying and We brand, saving, a etc. product free or things. have LendingTree obviously related then and is Stash credit they've whatever exactly those access some have amazing a can They you it. got your the you it a in they two got credit will, think credit budget And reports then help whatever you where that you to your and ideas all platform over if of and of got side that. could they save anything helps My the can a an house, could on And asset together you don't really called which surround that something you gives platform competitive markets. so and that really Overall, And product, the they've they things goal do can flipside, which a called do if investing, achieve invest what around and sale, them their improve has where loans membership and other on have; retiring got you've is have you throw LendingTree, a and have you score of insurance customer a getting They've you platform is.

scores, etc. want we obviously up products area, loans, So their into to then it, get monetization their market are into They'd cards their credit make to personal can that people And they credit goes customers their it. and save get add and sense as love are the free going mortgages money. and to going

are they invest we it is business it lot is thing versus around a and throw and about at that produces other they not have just got philosophy returns see would I the of money in a which and the like etc things them same say in they that way things And very we companies and of the our really it's FinTech other disciplined, very way all of see Zoom, world very, very, great those Valuations, same product, philosophically smart and a it they etc, kind and that startups just necessarily the the other are of don’t fit. a so lot

John Campbell

that of makes so of but is a those to I have on lot I platform LendingTree it Stash, more over will will, own, I they -- a to sense. Okay, got lot to speak some do come play LendingTree, have to well? or My guess their do work guess, users be as able My

Douglas Lebda

It so Stash the definitely is app. My download LendingTree please

And so Stash has a subscription. year of

you're advice subscription access investment well account card a investing. fractional the So you will and paying a debit was and bank to to as which

for the in of a fractional every back So, basically some interchange make time purchase you rebate shares. example,

fees you to activity than or it interchange make management. and the assets them. more see you're them money. so-called with recommendations thing we it And they're to to help to It's this of Stash go budgeting to up all of or then light that. try is get through or look Many budgeting. top then so the as at some they've sort nice you when building can portfolio your constantly the difference, about you neo whatever of try even your call always is on to banks make under you And using are banks this got banking to make your doing But using you day. the want

the it's better that for much for consumer, like providers. and think we model more much, better so the And

John Campbell

that It seeing me, Obviously, credit maybe revenue LendingTree gains revenue seeing you characterize mean, growth kind loans in so a I a Make either quick rate to on that the out products better personal those share the more LendingTree going you Last platform cards question from sense. of a personal or grew of how would that at products. on from looks of like out bit and My My better shift My loans you're of LendingTree? than again little and other of comes you're lot obviously, just a one credit cards. LendingTree.

Douglas Lebda

So, this it's interesting you and onto add J.D. should too.

revenue the come a So, harder. from people therefore those most of somewhat are that does of personal gets and lot and from loans, LendingTree subprime My

is now However, competitors continues of our our on have read EBITDA -- we now I think you a and to very very of there, just us economics, company scale. it, My And total about good our the LendingTree over solid. the unit versus unit so believe if revenues economics XX%

We it's see have more channel of at a come sell mostly because credit intense to happens high that's base try LendingTree purchase. member high and just credit a coming score get through and the you we a not through in thing to let's lower intent free a you've just it We're a card. what here then

place marketing and be lower still got. that product now to now going base, can better are market can marketing where continue however, and/or a we So growth shifted And we're monetization our we've member into have at good that. we a and actually we've the some our of

can model with solid sooner, would do. thrilled But progress, have we happened and I'm it our as is I lean So it. always the into I wish now

J.D. Moriarty

one strategic has My to mean, rate you anticipate My as it our XX% My look everybody any context, personal give great -- a in feeds LendingTree loans. have with is of right. -- loan Yeah John, if the this it's LendingTree XX% revenues I LendingTree why period business we given I of personal and At period, the should at what this that's reasons

to experience points in schedule a The gotten to integration LendingTree I else, So of the environment, nice that say to news integration this LendingTree is has My My ahead start. obviously, insurance consumer of a bit. good off with everything all is challenge that's this The going year.

sort that very is identity and theft Some that like of party happy the with. third we're integration of thing

of LendingTree and mortgage hood also My insurance. this. So about and as good executing things with under And you're going really benefit and there talked card My lot on LendingTree on then are a what we're have we seeing, the

John Campbell

Okay, thanks guys.

Operator

Your line next the Needham. question comes from Tandon of with Mayank

Mayank Tandon

speaking quarters? softened, seeing nice good next versus trend in will get that talk market about little you'd a of insurance of J.D. has we the of could well ad the the request ad several over bit rates, a to just going see terms the just side? insurance the the spend, that kind that you, more given is that also how on benefit the Thank Doug maybe court And the you're or line morning. about segment profitability as think you volumes monetization talk

Douglas Lebda

and then I that's One side one. will the natural take other product these the happens what ad absolutely first markets. the take in a could of ad piece and J.D.

If is average, to demand loan still back same get on we whether that last that pull advertising, Google, quantity, to the the profitable not And also then marketplaces back are you or market typically dollar. typically and/or price, we So going type. our coverage, lender advertising marketplace means etcetera. those but see down you'll lenders whatever typically on

there they yes, is supply decreases, -- definitely is years. as there on out the benefit where And lender the a even there a So benefit detriment the on on is the typically side marketing side. that over

Sometimes they go better.

lenders. So for lender of are for in I from is mortgage the is still of us, the think seeing we're now, are getting seeing fantastic more if demand that example right this and we we a event benefit overall --

spend that and who a side anywhere pulling bigger less lenders And and their marketing inside not the else be directly are their getting right that Google and pulling mortgage on buys now. a lender much. of demand we're typically back LendingTree, ad online they're or as from back LendingTree that detriment benefit We're means getting from from would advertising of

us. very, So good for that's sign very a

I this this for making spending at is and guys, a it to Google I if whatever well, close at LendingTree, right, we're ROI over today we're much So than here on they there this on much our today. go, and spending But -- money go over margin, Google's is here. money I'm where lender over am better

back something will market and shows instead that the decide LendingTree pull leave our the same Okay, is LendingTree strong basically else, is we business to on when keep that us of that are. profitable so market and They are last making dollar. they strong. decisions marketing they And on to the we that

[Multiple Speakers]

J.D. Moriarty

second the I -- to question. part Doug to of question, just yes, I part the want does. apologize. second The me your remind it

Mayank Tandon

dive in I the few monetization J.D. of the you versus rates little the line on And court Sure what quarters? expect bit that just how terms was requests you're so to insurance trend in side over far? of into the trying terms a do next seeing to

J.D. Moriarty

one Well, occurred nice has it. of done this of seen the our period time that's during things is we've Yeah, agent business well.

you So, to for from people are seen strong of we've businesses the actually happens environment on are about They work that a the intensive, right. demand our what is worry so in a product. business. agent side And what home

insurance. the in highlight nice a been that's So

or pointed other don't levels with at in before, increased we terms to switching insurance Trent of sales has our a of traffic, a carriers April be of auto about was obviously recovery policy, reacted We've auto it In seen and terms that. we've month carriers in demand will problematic, converting, consumer their down as of look out of respect reluctant the being March so auto in the How for intent. Google our those somewhat at seen of with carrier see and consumer said they as interest. can pay to is, talked serious We ourselves. needing the that. what data insurance you both auto to publish insurance I new traffic that you customer. new actually if which is look lookers, being be And about trends a businesses deemed that thing, with about to But recovery month out keywords you specifics sort of are. around Obviously, and can and

marketplace about need don't they to are traffic our get get work, back The consumer get wants the rightly in I back there. people consumer up coming today we that stronger intent the is trends little cautious carriers being and that see as come environment, you'll if online. to is think think So that to building the intent economic carriers back. that suggest a confidence that They would you as

Mayank Tandon

Thank helpful. that's much. it, Got you so

Operator

question line Grondahl with comes the Your next sorry, Northland from Mike Mark, of Securities. I'm

Michael Grondahl

million your and on in percent up car of business and re-evaluating, was embedded XQ kind the investment in spent follow Yeah, of Guys, used that new insurance, just that of you're what's how that a guidance? of XQ And of sort is purchases? secondly, then what XX much brand thanks. from

Douglas Lebda

then will don’t that why you take J.D. I and comment… Sure.

J.D. Moriarty

assume -- of to XX% million should kind know intending XX% in that it's Yes, we so versus year of roughly I you basically spend. about about set about end up you in Mike, specific spending so if have to would brand, we and don't we will to XX% there QX of was the the used, what's auto. auto. a And respect but XX what new year insurance think it's give with I as X.X out this

we can QX XX spent X.X -- spent and and judiciously So X.X we've throughout we will year. the you and spend roughly in

Michael Grondahl

the In -- guess, great. on I Okay, insured...

Douglas Lebda

when advertising Wait sorry, us. we say that and -- moneymaking real there a pause brand is you for second, think quick just if still

it you track a definitely always as back. a making get precisely, can't the proposition more however, in than you a for dollar quarter, it's dollar us. money Not but You spend

Michael Grondahl

then insurance XX% just was insurance and and bit that more of up comes car your little follow new of I new used a used on I Do the And know hey, purchases? Thank percent XX area. you. car is -- auto what from you to purchases. know curious

Douglas Lebda

on No, I on number separately. that. have don’t, give can don't I I I'm can't the track down you that. a it I number as saying,

Michael Grondahl

Okay.

Douglas Lebda

your I understood question…

[Multiple Speakers]

J.D. Moriarty

advertising but that it's guess and in is who people My carriers And translates on for each the on. thing at product have if who that money. all they're obviously other. who TV, all insurance shopping car nice already are car against independently, are look the And buying new not saving on is you a based that a

hey, money go profile minds maybe to the insurance. So should on try save consumer's that in I it raises

Michael Grondahl

Okay, thank you.

Operator

Your of Squali next line from question comes SunTrust. Youssef with the

Youssef Squali

for morning what guys deeper little of little you helped and can mortgage shareholder been guide. a much. offset letter that how super you've differentiates in have and the about weakness. Great, thank your which Doug, you helped thank products kind letter, how Good to be the just experience, into you mortgage J.D. was have of I very and some improvements as a changes I you helpful. you if to that the more specific talked guys want the wondering obviously from QX peers? to making dig then, And

So wondering of around provided commentary was some commentary of and around I the the negative we're the provided some you considering halfway the you you insurance, provided, into quarter, home, commentary consumer. positive around

is you these decline trying far super parse potentially what maybe the can color the insurance segment on most coming high for two, I'm your with there kind the that out to to home from us different maybe guidance If segment? as would three be weakness helpful. see flattish growth is year-on-year a help segments as considering to XXs, realistic are get the of really in the how what's it and basis into year-on-year concerned, somewhat QX are baked of Any rates consumer

Douglas Lebda

Let the second. do me one, J.D. can first the take

On several and talking mortgage experimenting the mortgage changes in product. with years experience, we've about spent our last the

years then If to after having so you and calls results back lenders a the out smart on our always think we've then those the past those you. page, generally on analytics website And search out forms about forms What vary some running the figured you you really offers help X.X, five query, is form credit, then LendingTree data as directly to both and datas results it a you to same. those fill form from vary. to way, based the out filling sending as us is respond phone Mortgage the on filters, or that done the the the of four X-K and so analytics, is page lenders same, very by internally, little couple well with lenders however, bit over drive, to etc.,

the known. lender, learned have of to that that is one which things so-called we we've leads However, exclusive a

among basically that And to five other same need reduce one. up that lenders you give go to the in barrage exact hey, are it so either they saying, this And that from best you in If lender transparency do this select should showing thing try the borrower, to to you or we here hearing improvements but of consumer take each and many conversion five these that the clean is the get one, the fact price is and rate. instances. we're this

-- we profitability because efficiencies volume lender will to in is that conversion on little website sticks the improvements showing is are therefore they're going send happening not the them opposed doing if And the are the up. lenders better can also competitiveness than Their rates the telephone. efficient. more It's sales, Their as on a you better. the

change. biggest So that's the

any And to conversion part ongoing lenders second we they off mortgage help was just personalization, competitors, and that, we're to back relationships that, And which years. rates depth shut of addition of know what the is cost don't versus I focus other per lender improve us. loan. business for company the is And that has focus the seeing because can it's quality go funded that on ongoing In CRM that that tremendously really last. us how in helpful lenders on

J.D. Moriarty

we recognize did if the the full the QX, some a can Obviously, that, now question and valuable we we but give much until little three able you accuracy guide fact do let great cognizant were to in come we want gave there. get in you September segments, so And consumer full as me and when it environment. it that's not year suspended you can to just framework, that we that regard back through did recovery think to starts be because terms business start we year the what assume with summer we is of guide we second probably your Youssef as for of a this we with only when a bit. and convey our obviously because to it is to

light of for expectations in insurance, our haircut just home and did a environment. also recessionary We

difficult is in in insurance and April. March, performance news here home of better those backdrop well businesses an than both and we very really with thrilled mortgage good are we since the trending the performing expected. did a that would that Now, were despite and We have are

are flagging Now, more consumer consequence of because that is talked businesses capacity obviously about on we sure. issue for the the with dependent we those

reflects trying mostly So full but because is did weekly projection in to not environment for real-time a remainder fact light giving a some recessionary environment, of the reflects assessment and them of of now. but of in the give that implied we're growth guidance we're haircut incredibly year daily the internally that those strength, you of the obviously the terms a in year in of basis. as projections QX, on a our much right We're fluid And right. rates them, the we monitoring

Youssef Squali

that's Okay, helpful. Thank you.

J.D. Moriarty

as the And issue. So minute second and the reacts your again, get they're And customers lender lenders to easy most you by first right? and is by think a Trent it them, again, customers. each if -- go lender to customers, made new you've for Not these that the want to existing one the these going consumer platforms lend from minute, are And about I dynamics going got one too comment they're dynamics. think day of you here then the -- is day. issue get

So up you existing ones. show to want and getting your new customers you're

fine. we're long But when as consumers as but in want among As to they want gotten smaller. okay, And not, lenders big seeing the our share gains smaller sticks. actually winning And that's the game. volume, wallet just share capacity we'll as still share, because wallet we're be long new are getting customers which and winning great mortgage, to that's get that as and because market's as then market borrow, that's that it's long and they we're go

lender as goes of LendingTree their because channels that they're their typically from increase on comes example, That expense you've about a too. on revenue or smart spend ad stick on during LendingTree to For time, got their and will ads XX% XX% us if getting back. volume spending in this

market which out as getting our monetization we're fly our us spend. that pie which bigger improves enables than then they -- gets we further comes that do, competitors, our And go a to the versus can that now economics, more [ph] XX% of back. So

Youssef Squali

Thanks.

Douglas Lebda

this had -- earlier mortgage… on area the about you made your comment Make about

J.D. Moriarty

I specifically, mortgage In I…

Douglas Lebda

XX% XX% You're or sorry.

J.D. Moriarty

triangulate I is understood the that were Yeah. of fair? QX of just If trying to within question, your guide, the segments you kind the breakdown

Youssef Squali

exactly. Yeah,

Speakers] [Multiple

Douglas Lebda

small right our business of kind business, lending. right XX% comments, loans, basically and up Well, you credit of is of together our revenue. personal we if XX% So, which our piece had cards, those make

softness starting then sort -- for focused lose segment they're XX. you got room point some the somewhere year-over-year decline of guide right as that, is right our our If segment the refinance home down And XX% on to outside of in that mortgage, QX that midpoint some XX% implies, at leaves of are we've of now. your most between because XX% lenders

VMM So be things when with purchasing you right. that, are line, margin goes and equity the obviously home like softer. move going expansion then along to But pretty bit down little to we've a that got significant

though to pretty answer a of and all that strong there's profitability And the is so your think mortgage, headwind little so even bit and line a I top on question. hangs together the

Operator

Your next question comes from the line of Susquehanna. with James Friedman

James Friedman

them? first companies the talked mortgage. meaningfully had on more have unions perspective but about rise just up changing So, you of credit PPP seeing you was had SMB the too, for that. competitors SMB qualified SBA of one and bit That's signed have about couple on are in non-bank about competitors, like second was in on just Are I distributions ecosystem I'll in first second side do lenders just about in unions your in talked the of that, Doug, any I and mortgage and wondering those like a I little in shouldn’t call investors the the one. Thanks. now talked your you if the they some prepared form liquidity wondering Hi. the a mortgage you you're remarks banks? mix environment. lenders. previously the this the

Douglas Lebda

Yes, great.

related. on small These lenders new PPP business, question yes. first So, are

what is we which too, and some about we saw this happening and do. announcements -- put to when we press So always release, what helping business, out this helping this was we both did number we of our people a try saw is

is process let's it that efficient. call having they've not PPP on obviously more SBA typically So marketplace, made it With SBA a lenders efficient. the pretty

a marketplace, we signing lenders. is So pretty did PPP much started up stood up immediately we what

three think or have I four. we

for that the "small of of were we many corner which into deli already employees we've going gotten the dollars, on last PPP customers which time as that we're small help a I in going want were had is publicized up it look And wasn't we and businesses", people know few think great. flowing the TV, think is way to that XXX breach, the have on got that's $XX getting I also in. million doing is will we've so the forward. requested. I with lenders lot people whereas that millions And We site. seeing checked, to just to getting loans sign it Live but largest market, yet. and over XXX, us example, working they're And them What the first Oak a XXX, in been well of that we use to -- had through. days in loans step the the I And [ph] business

going how Not get huge reacted to small We now, that up So but effort, that that's in -- marketplace not our be new run. I I it's particularly a got much people thrilled running. whole was quickly long run. is really short company, and revenue to a lenders. business, SBA which really a -- driver, And but with so our was it's

to and customers existing there. compete loan have going etc, market etc. But banks depots, unions CRM the credit they're chops of LendingTree, and So -- think relationship I etc, the On customer with the mortgage. today like to not chops it's have would to they great. don't to the they're would to likes their

there, lenders a better. while on So do still the lot would have a been internet the they're operating however, who for

see to particularly a a major impact purchased that answer lot, we no, is, one mortgage the don't but We see having mortgages. unions had credit it there. So don't but refinance it's I in

James Friedman

Got it, thank for you color. the

Operator

comes of Autonomous Rob Wildhack Your question line the with Research. from next

Robert Wildhack

guys. morning Good

touched detail the there, market a today on your plumbing that earlier, the of friction the happened on mortgage give you just looks us more lenders it business? bit during some and how the what You then reacted, and mortgage in a little Can March. as how you behind

Douglas Lebda

why J.D. you don’t tackle it.

J.D. Moriarty

talk you when March. friction, friction What in about

Robert Wildhack

market? to referring secondary the Was

J.D. Moriarty

right. Okay,

is to for referring I our lenders. difficulty you've secondary you got are go all -- really had -- which challenging March ahead. And, in market are the yeah, you think of what

Douglas Lebda

shorting companies do, may And have in very, of incredibly buy it were had and alone, were have there if on dollars So basically walk securities cash March what Keep and pipeline and fixed to the getting and backed calls originated are may going, hedging. have this selling up that that When -- it flow right where of tens Treasury the there now when of mortgage you had which, Treasury value. they market. is a government close a will problem my high slowed mortgage their have and they the millions very whole and itself down loan started backed the they that in quickly. to time. most had loans, mortgage XX, sometimes are a to hundreds tremendously millions in closes XX, off, margin correspondents that and But pipelines, a met they buying But Treasury it where mortgage because existing they lenders new get days healthy. mind market, bunch before very, tried unintended as lenders, the gosh. unintended of days right with period drove we sold of what their mortgage March backed, very, Like in corrected the their basically the for value, their mortgage our inside so lenders was ceased few good and oh, very mortgage millions consequences itself. a corrected millions away and very or brief in and and they news for with this hedge were you're temporary loans XX securities

Robert Wildhack

great. Really helpful. That's

J.D. Moriarty

tell context right. So that would to about in January of They capacity the to with couldn't each some Rob deal month capacity probably because for the our put March, In February issue, you smaller, in in right. lender flow and offering that we were refer cash that's you markets. that we lenders of weaker, we when of in the weaker that half of capacity and were mortgage, we

some take What And customers or online, in concern. seen less light to back look we've that for capacity they in that's new been really and were customers of was on so likely so April of new come this encouraging.

Robert Wildhack

helpful. really That's

a a this quarter, up XX.X My us last that that couple if mentioned on is could users called net you so, quarter, attrition sign added Just normal? gross also LendingTree. this Press ups million hoping million numbers Is I XX.X and out difference but square quarter. that think just also release rate for was XXX,XXX

J.D. Moriarty

one rate is just second, XX.X is number if discrepancy I numbers. the period see, have those we got attrition certainly know, in normal. yeah of the that to end not I

Douglas Lebda

Yeah, as to the say, I was historically like going that given announcement of we've Rob, date. number

to of This to bring the try quarter of period we to moved the as to it. end more just standardization

we that it back So I you think discrepancy might offline to come if like. the on be can

Robert Wildhack

no problem. Okay, you. Thank

Trent Ziegler

operator. questions, other Any

Operator

comes line from your of Wedel Melissa My J.P. next question the apologies, Morgan. with

Melissa Wedel

question. thanks morning, hi, morning. taking Good my for Good

shareholder I make for of fair of level. it to to recovery Is year? First of trends in this reiterate some expect sure dig year, it letter appreciation we're Want of year expect and say seen persist this similar that to expanded trends seeing the in directionally the sort to that this I'm thinking revenue to we was persist of the next year, the versus wanted of last would about early helpful. what QX we had to late all, you of margin segment QX just I to see at year-over-year also the way. some wanted to in into sort so that margin right

Douglas Lebda

thinner did $XXX to in in last we're because grow specifically. you to I happy million margin quarter normal margin. year. we that were bit one largely quarter, than in that consumer we fourth of And XXX noise recognize say know, Yeah, the have here, I card as And of businesses our with cards little first particular make business, some it in persisted in this business. revenue year operating a that that business the -- was there's north to last the and respect at in strategic think card of is challenges that But marketing

That And so within you're segment card. that was the seeing weigh even profile the in margin within aggregate, consumer of XX%. on though profit mostly does

do absent capacity I think card. those challenges these remedied do marketing COVID challenges, think Now, we've in I for

of in the process so when quarter are doing of We hit. in all this

So a I think within there's consumer. of noise bit little

because benefit nice many this on the cost of also think I bit candidly year-over-year we're a margin side comparisons our little acquisition partially are challenging that your reduced going businesses. of So through of in

So, as obviously Trent ability this within acquire accelerate we've to just pointed environment. out seen in our customers home

noise to And so there the miss I background. in look year-over-year think there's you just in what's that's going some going when on

Melissa Wedel

Doug, Okay that. for thanks

J.D. Moriarty

I thing add indicative opinion, my that margin only we would The the that. percentages, business aren't which and in could very I look always to at debate

is dollars to these the every the However, marketplaces, test VMD of because variable you one every business margin in product, market profitable of the last dollar.

go is if be to million, side spent and million be enormous demand at traffic. very you just my low percentages, that and And situation, -- example a you where flip And, therefore VMD. I lender high marketing therefore demand extremely all example, could very have and a would we're at billion on And were The into so free have you $XXX it. dollars. That have would market have and taking favorite not investment. a for margin low being but $XXX where you could used dollars lender got you marketing lenders good

XX% it's margin. However, at a

it's I type. look that's VMD so each to and dynamics at the underneath always and that, basically supply encourage people line to of loan see demand where then trending and the And dollars

Melissa Wedel

opportunities. share you allocation around about Inaudible] serious think you [Question on opportunities? capital I virtually question know sum about of relative guys are to stay opportunistic how know I sharing understood. you. Thank Yeah, about and inorganic talked organic repurchase up some always effectiveness two the just guess or I now you

Douglas Lebda

also, what when you obviously to our as me balance We have our We've during let volatility. have we I we of with though, under we periods been able balance if stock levered. obviously look have say to sheet, and just thrilled mentioned always our at buy generally before, consider we is. have Yeah, are cash back relatively

we anything company not cash XXXX. looking XXXX didn't closely we We've while for And do after time, did been a always We have are We might considering who that's XXXX, a of convert weren't we did acquisitions. and since nine balance in has potential acquired acquisitive. considerable a period do. we're companies in we evaluating constantly because what at things

of So our are in I as were. factor quarter stock we opportunities and cheap. always by acquisitions. our that versus inorganic think it it's played they looking when with and don't out wish stock, Obviously their it. that's bought revolver. option evaluating have I they preserve particularly cash We that okay, saying, huge it and were does it at a balance. given happy to as wish And true have time real utilization obviously into We we own our a very value, all

QuoteWizard XXXX cash As a again make paid And end and we down at reminder, revolver we our this just XXXX. of well we use cash buy that very the then to used and the ValuePenguin and very, investment. early to and revolver on hand

them. through evaluating our So and we of like with sheet balance of look go constantly acquisitions being one we're if potential mindful what might

about does opportunistic think stock how consider we'd That we to like we to buying be have much our as back as our influence flexibility.

evaluating not. of constantly whether and relative our other stock read give as or to a factors And it as pure quite cheap is into doesn't it those alternatives. But sometimes you we it to think that we're

do to us, cheaper six for environment, come conscious they Fortunately this of in the to going than been number way. to And it. they're as very company would a interesting we acquisitive that months to that's fact are be probably opportunities a have have of flexibility going ago want we're been the and our

J.D. Moriarty

able than I could need we've opportunistic maybe us be capital. unprofitable be similar, was seen of to we before, to stock. powder what We opportunistic raise think where this business in something be say there more going and very we're as to part in be need environment, particularly dry models, profitable to which can't our I

around. we that think We doesn't at need by quarter that right all dry month, mean evaluate is to stocks keep and cracked. by month moment. we just our some opportunities think other change them could the quarter, there's That don't that but now powder want Now, -- versus we there to

Melissa Wedel

guys. you Thank

Operator

from Point. Gamaitoni Your next the comes Compass question Chris with line of

Chris Gamaitoni

Good Most my been asked. have questions morning, everyone. of

clarifying you a about point on LendingTree. think wanted Just how My

is call in any You dollar longer like leaning loan challenges it investment on and term it have from doesn't capacity on obviously personal thoughts the side you're noted ecosystems. other of the seem changing but of building the there your

kind term want for that, term, near fix up profitability to I some vision missed just my you're So I a comment of if saying? willing of you're the or give longer to what that clarify in

Douglas Lebda

definitely to a NPS to build we who's committed And there's get low we not My of continue to continue well very the users. market Anybody costs short-term better. the and absolutely the see see extremely Yeah, of we promoter member sacrifice. ecosystem scores LendingTree, the a are are LendingTree high. because net Obviously, alerts

more change and make so to no and think where trying And confident and the in faster. no the we little LendingTree way go decisions. acquire our on a on posture So we're ability them except that positioning and then more market to you're them a with all in we in except change about consumer are our maybe our our product to products smart financial win a surround help

Chris Gamaitoni

thank Alright, you.

Operator

Madhukar Your the with next question from Deutsche come Bank. Kunal

Kunal Madhukar

thanks could; for insurance insurance, different questions. shopping for is I understand one the coming business? with how if to Hey, what that people the taking a some for Couple, you. wanted much savings to in insurance and provider, So have back auto regard repeat get of

SBA you're the businesses as revenue how one terms seeing kind well how these how they comes on get to of of are -- SBA affected of that business side side, that to more then what wanted theaters, say, are heavily and it of of of the through from ultimately COVID the how of your is, support And and percentage to typically levels as appetite risk what some initiatives? regard going bars, kind the ducktails they a color the of Thanks. this with revenue industries are into get Is some restaurants, by much capacity really kind loan both So beat? in market

Douglas Lebda

the me and/or Let Trent one. one J.D. repeat can and the turn then do SBA take

survey On not and We're types flowing put we the of the you this talked out -- SBA a side, to about. is that businesses the result. in to market this money seeing just

to we're public that hoping just policy initiative. as rectify a So

doing However, just good. for

also it us However, those SBA lenders. because longer helps sign up can term the in we

SBA borne the aren't In really, because thinking those federal that government. lenders is risk being by terms of appetite, risk about the

all PPP fees. the risk. program, basically under the believe XXX the alone, originating nice So lenders government origination points its takes very make for basis I

merely So can that you the many system. through how process is

capacity just a on thinking now. And about than just if mortgage. think money perspective bigger smaller the take them risk. for take mortgage on But much the you thinking from they're risk you right to online as lender risk. then a platforms, they'll as capital And more a want side They're make a about other, it the providers SBA their mortgage, like not about on

a your if do you're lender, first So because you're to existing they convert. going customers

to do have smaller that's helping a Then Then U.S. economy, your I rectify You're bigger loans in that. to profitable. what's they're smaller hope loans part J.D. going unfortunately, a the you And small creating insurance. question. in we your challenge play move Does and to think. that answer and customers because more to you repeat first

J.D. Moriarty

I to into a these more I through more into we have no, get it for I for of customers. We My publish a In my get know some now, top of customers what and I just one had value of head. that start of QuoteWizard in this don't don't. right LendingTree. a But don't we're that wish the recognize insurance. Yeah, that and current to is Kuna of We'll statistic a of do come actually are integrating stat percentage insurance you of not, have nor I length don't. you, don't repeat off of some information statistic the the terms we'll I as

Kunal Madhukar

That's good. J.D. Thanks. Thanks Doug, thanks

Operator

for Doug Thank would I Lebda, like CEO to closing at remarks. this turn am to questions no showing call the time. you back all. I further

Douglas Lebda

Thank what's you you during say very to and times world. out here see I the under left you a these like always is like the times interesting thank all What when water. our for goes in during being tide

can going constraints. seeing And and consumer sometimes believe out the more this we're we're right technology already. think spend I going and because adopting We trash, behavior there. you've think going see lender What you be less, able in they're smart more shells, positioned lenders and past, releases there levels is change going capacity And we're going I have We're rocks, treasure are they In you've technology The their they change in making as they're I they savings. also to types behavior we're coming on got multiple capitalize they've to talked in about done customers going at is of as that sometimes we're to are the more getting to to a lenders money, -- going that got approve, in of conscious can there's uniquely open We be to etc. got underwrite what -- it. change. easily, to see being concerned terms some about to too. willing my about decisions changing opinion, about of

And we're change then the next one to is see going in competitors.

horns see pulling losing model, business people their back a got in. you If you've money

that LendingTree is process, our we're evaluate to then say one we able see change their be employees, that to more instead and strengths we raise our is businesses the going thing capital up today, invest flow and processes of double like And our down so of And advantage already a we see competitors have opportunities. You're companies use we and competitive positive do losing those to We've having and the their is bonus are going major to processes, going shore and initiatives when during money, intend disciplined. this we're projects And Things to time to into way last see that that internally. well last profitable would internally. strategic been cash I weaknesses change are. the create our having to new to is the to time to cannot. putting to this back in opportunity most and many are positioned unique

think So to we're those as areas to across anybody we each capitalize else do positioned that. than better it, we of behavior intend and changes on

much. look very to soon. all you thank So forward you talking to We

Operator

today's participating. call. concludes this Ladies Thank and gentlemen, you for conference

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