LendingTree (TREE) 4 Aug 202020 Q2 Earnings call transcript

Company Profile

Participants

Trent Ziegler	Head-Investor Relations
Doug Lebda	Chairman and Chief Executive Officer
J. D. Moriarty	Chief Financial Officer
Youssef Squali	Truist
Kunal Madhukar	Deutsche Bank
Nat Schindler	Bank of America Merrill Lynch
Jed Kelly	Oppenheimer
Mark Mahaney	RBC
John Campbell	Stephens, Inc.
Eric Wasserstrom	UBS
Rob Wildhack	Autonomous Research
Josh Lamers	William Blair

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the LendingTree, Inc.

Second Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Investor Trent would to call Relations. I speaker your Ziegler, Instructions] like the to over [Operator Head of Please sir. go ahead

Trent Ziegler

call this you, – results. second Thank Ursula, thanks, financial on Great. and quarter XXXX for to morning the joining discuss LendingTree’s everybody for

and Officer. call the Chairman this J. D. Doug Lebda, morning On and are Moriarty, me LendingTree’s with CEO; Chief Financial

call, for over, hand quickly remind today’s the future during expectations LendingTree’s call I’ll we I discuss Before that may performance. everyone

preceded We such measures non-GAAP are differ definitions investors.lendingtree.com statements. you shareholder and in reconciliations SEC. with non-GAAP website described as risks typically on variety the risks I we by on today. Doug. we of anticipate reports similar and today’s our the may that, results periodic expect, letter, press materially LendingTree’s uncertainties, And are other also believe, views the to a refer GAAP expressed today, we These Many, statements Forward-looking measures it measures, face could release the words the LendingTree’s filed actual and subject and to but comparable turn and are we available from of to or discuss not statements of I’ll GAAP. forward-looking full to with both for call at all

Doug Lebda

and thank call. the Trent, Thanks, you to joining everyone for

that new shareholders on managing these positive to to time on approach. a to call your took calls. approach used letter Investor on our We As address a a Relations we received conference last reminder, published detailed website feedback the quarter, questions. our We and

morning. same So approach the this we’re doing

comments, morning. earlier give a to just like on mentioned, questions. get our Trent letter As can we to posted shareholders was I’d and your right our website IR this to few

the has First, near work categories the business consistently well and of and in long material to every term Despite at the headwinds I’ve team on for haul. and innovate aspect in focused over in remote environment, certain our especially our product amazed of challenging executed this drive optimizing remains difficulties period. better how been partners while team consumers our outcomes continuing our a

execution, better-than-expected in Finance. capitalize strong, is testament And to of financing the completed our the the this a July, balance particularly to durability line us we leaving company. the the activity quarter positioned sheet operator, can our results that, with of evolution And of addition questions. well open and model we recent In terrific Consumer our just flexibility with for to accelerating are on

Operator

Youssef Squali first question Truist. with comes from Your

Youssef Squali

Good guys. morning. Hi,

mute. on Sorry, I maybe

Doug Lebda

Good morning.

Youssef Squali

a just questions. of So, couple

consumer checks. One, credit of what to end are X On commit key increase And demand you sweeten Is in I just business so their so for looks of of their you. all it kind most of from the segment, for to them And the maybe have to the spend? what card refi’s just really macro? speak, second, deal, kind in terms seen more can you it of your do the on components anything get July, to insurance? spending. lastly, Thank waiting of like the just to far And of some hearing depressed. obviously still what is spend basically been very that. your of in are channel kind letter level you even issuers of back. talked KPIs about think kind card kind But we’ve That’s they

Doug Lebda

said, issuers The we then Spend on as focus we’ll in, in about J.D. bit definitely also of is, is Let definitely are little And and talk too. should also card chime student QX, me lower. back. definitely that hit our and some here – you winning. a

micro, now, on would seen our marketplace What the is, we’ve competitors. losses than And we’re as it of that and sure that are come need than macro believe much to I conversations performance loans. than that is And card we’re that our is to hearing not more our got is LendingTree current make our you as we’ve say That budget portfolios business to that Their competitors think better the they’re understand better loan materially want what is competitors. a doing it, theme consumers. where between the their we’re which credit more – of – we we with before based they it’s so for And back. new are on on companies. that, it about if overall take is is much will right based everything as and going spend loan is marketing which

to looking looking those We’re loans. low it come are businesses a of it’s why looking for Right the mortgage – which unless still all now, lenders who market, areas and money lend loan, types they’re for for in lending and is going money and government-backed we’re challenged. back. is the winning, small And private to other are

to business loan going dead student And we’re I be loan not going us. is is which for fine. be private big personal the a The doing is QX think forever, market market to not forever. dead

and told quarter that’s is we’ve So sure been in for then safe add? doing. you is we our said the this opportunities. do and business sure make And to lean that environment, safe, want make last us, look what people what in J.D., I are

J. D. Moriarty

Sure.

issuers their are I checks don’t have checks major would they encouraged we’re we’re back payout back, is reflect now. guess happy that. the underwriting. in But that are or your water just your reflecting say, that are I that channel reduced a dipping in toe the when And card, issuers they’re okay? What tightened Youssef, channel and So

what them creditworthiness want new about a but the that it. in a about great. care Obviously, they So want as of function return Think for much be they’re know in spend. card, network more consumer, they also when why our confidence – as spend. I a card. committed a KPIs issuing of issue they getting will that They the spend it be don’t Right? that’s will consumer

good it the stimulus – And money spend saw which consumer have yesterday article fortunately. there. we with increase, backdrop when of done talking consumers great. we’re see take has think a does the for year, what not time. to remainder we we’re the resurgence. pleasantly think that’s spending in out create about it’s seemingly But we’re the going If we That actually planning that We better, some about been, the journal consumer for as So anticipating how it’s surprised them.

the they’re that network. We’re encouraged on

Now that more? what very we Right. long-term we’re do thinking about induce spend in them can to And a way. to

issuers new win, to So this using said. time with we’re and experiences take Doug try to try to share test and to period as of market

in QX, things and year. No, us in QX? There And not. QX are is the consumer of business for the guided themselves year. drag things way that that what anticipation rest So that the manifest probably probably our business for in or QX we’ve bit help consumer we have and reflected they the do the for forecast a those win next and in

So that’s card.

we’re in but back, one good a I’d terms back certainly way. two them coming of So back small back. somewhat they’re The news broad rather insurers. is to way it be or of they’re that encouraged it’s be in more very than small isolated in them have a

good say is the had to July, thrilled refinance line here, which growth in and very question, acceleration, in how we each very which of in in trend with. third feel that insurance, I as does card insurance, another mid-teens which with. insurance. That, asked start certainly we’ve we’re and we’re would You the quarter And we’re double-digit happy

so thrilled with the we’re And really performance there.

steady the margins the was anticipating in We anticipating. all. that we’re in in margin beginning of in in resumes extraordinary improvement I did enjoy not refinance. standout we’ve we’re But that, look environment the Those at guide, seen had don’t When refinance normalized and at you July. quarter second our the quarter. Now – not June,

We’re on. Doug conservative market to And with just we we’ve being that somewhat said. as want touched Card, take share, aspect.

we we and come other prepared of XX% being ended year went consumer is projected May, effectively, The student. worth be We’ve the XX% for XX%. The it in back. in for of one largely to remainder other up business noting when to the consumer noting, to said only that slow consumer, worth we areas

to And the that’s year a semester as win borrowers. that so than enrollment where And to deferment down XX%, that was a year-on-year. our business guide, when going recognize huge you that we and looking fall and new with in more be That XX% have going have student business a have for on reduce given for everything prepared is just market at tuition don’t quarter. many our grew you look lenders third down ago spend, revenue be student because to was we

worth noting quarter. third think we that’s as the well as about So

Youssef Squali

Okay, super guys. helpful. Thanks

Operator

Your Madhukar with next Deutsche question Kunal from Bank. comes

Kunal Madhukar

you initiatives you about happened talk the total market And has in have mortgage mentioned number new the that? market about products versus improved that question. your volumes that that taking doing question Hi, you the and really innovations thanks lenders. that your Good the share I that terms the like you general? of and with refi passed resonated space. loans the of on Can through new were a total in in can Thanks. And how morning. system, a for talk new

Doug Lebda

second the first. take one I’ll

in this type share market declines environment. So of

in environment this However, type mortgage. in of

call off the are interactions do improved we or continuing lenders growing environment, trying while been, consumer our, and to been what with on bid of market with shutting decreasing the seeing. wallet is our make you substantially CRM as to hopefully, with able type new you’re more And you is all the your and reasons this experiences, that do have staying in are that that’s the we’ve and And on capabilities, own. you’re what that – we’re your your to However, growing we’ve and having and sure competitors. share it,

then are lenders their be systems. are still call of deliver rates – And They’re make it’s able a are able and one choice. while LendingTree to a to My still send lenders. to We still selection, conversion that, they’re to and other with "exclusive" – of a curate to, lender lender. able it, after choice we’re to have one to they lead lead able but then because giving more particularly and through a – They’re able clogged getting with higher

get right a you’re you environment have great space, we government more before, you’ve to QX. were conforming existing us out while mortgage, enabled you’ve pulled a So in coming somewhat with in lender of backed back your marketplaces. for have that of the in And in because free want an people having got has news went alluded clogged you because side it’s capital our have lender. as and mortgage, of me performance, you other to that the to able volume were of which people – lenders great as year talk the all outsized many shareholders a coming stick the heard around got our customers now in And we refi dramatically us, if flip this is J.D. to, costs down while competitors ad those online that, and the marketing about

And so down. cost acquisition went our of

And so normalizes as J.D. assuming that, said, we’re going seeing that – we’re forward.

wallet of completely news typically share coming that the However, is out like sticks. situation this great a

the of in add? too. we’re same competitors, helps you the same same thing loan with those growing we so that to personal anything J.D., and same percentage on are that And make card, than talking lenders, us in side, to mortgage, sure we in thing spend insurance. keep guys our and the keep as wallet And student, more thing if want thing to in want getting share with marketing

J. D. Moriarty

to identification funnel going all of where that that get. is No. market with In loan that I a is the organic under with product a officer leads wallet period at theme It’s itself because much to really go. there’s add. that greater Kunal, product CRM all of never share. just from consumer is like lot in this as midyear mean we’re product. don’t I exclusive really It’s think, a happy should to so manifest share great product this, everything better innovation. efficacy And we’re happy which top a going I to have of like the lenders the local launch, a to that is look

denominator got a you’ve when share. market at you execution we’re is focused on So from share. problem there look an And perspective wallet

that. with happy really We’re

mortgage the And really, that’s across strategy insurance products. in mortgage. so the and innovation the all just that been It has in happens really extraordinary. And so product strategy

Kunal Madhukar

J.D. Doug. Thanks thanks Great,

Doug Lebda

you. Thank

Operator

next with Schindler Bank Lynch. of Merrill America Your comes question Nat from

Nat Schindler

insurance Yes, product. questions. hi guys. two the Hey, on quickly One

You mentioned and market you dynamics insurance people being buying to affected basically basically from of taking down cars that’s flat by growth not year-over-year.

quarter there quarter. a competitor is are have But versus category the You anything And growth haven’t how you high is this reported. this in that going doing else in Obviously, dynamic? predicting space they fairly on roughly calling is, than change? where half driving second guidance really they the that competitors? this were mix are next Is And that what for there other quarter. margins question is anything EBITDA the you’re

Doug Lebda

you do both want of J.D., Sure. those? take to

J. D. Moriarty

sure. Yes,

insurance, from in declining when turn, In recognized Through second COVID and has climb it thrilled And started, quarter. terms recent interest et impact saw in quarter, of first gradual the some think back new insurance. we we’re terms in I insurance, cars, new March certainly the a performance cetera. been with the through in of it

happy at the right? we so it gains our with is our as way competitors, we’re growth profitability approach much revenue, Now growth look we with do of got relates year-over-year and realize our businesses, of insurance all to you to which a carriers, wallet business. and the business when absolute share And the not gains, only the operating insurance big pretty of we’re but – in in the off you base,

particularly happy that’s the in on with there. insurance, going We’re innovation product

So much that growth worrying really with respect, I about don’t we’re absolute And insurance. happy I business. the spend of worry rates. in the time health too about

get end but XXXX. business, XXXX not great the that a healthier of one a to and think we and we’re going bigger I for have So say prospects only to

So that’s insurance.

big about, our As always it recognize in businesses loans, of it’s got not our because getting And consumer My margin we’re of from highest one business. margin businesses of we’ve in in the is to QX, as relates so the businesses tied LendingTree. one you big the there there, contribution to personal which, talked one is to

diminished And when so That experiencing. loans the is that factor personal we’re to going all obvious into QX. for recognize reasons is

I just mortgage. a So normalized mentioned in then that is mix, so issue. and students, that comp that’s And we’ve it. tough is of margins most assumed

a did come of QX briefly, part and B some back plan are and XXXX made Now on that that few we the of plan the this have opportunity on And worth year things with back mind, to asked – B. hiring. teams QX our hiring hires OpEx line QX are that that there We We mandate there, the be paused to the is a with was are to in obviously, to the there. in noting. in

And actually so we’re plan that Bs. with people came aggressive happy forward very

in guide. in fairly a QX, is which And hiring also, is will so worth rent we have reflected expense in QX. in our Nat, some lift in noting There meaningful pickup

expense as in QX, we We move as headquarters. will to are an year building be available. our accounting moving soon new – from to next is But needs perspective, the technically that recorded rent

call million tech do side, added about expense employees is would – also I about new benefits well. in And in $X.X think I expense some new some just with ends we so then of expanded that being QX. is were as what on headquarters embedded we scaling headquarters We Hiring favorability there Likely. both up that notable there? there. employees. million. is have The million that’s one facilities the the of associated for will $X.X expense, is our work-from-home do here, COVID spend about Do to there things in some for a thing, – around and Tech $X.XX stipend, And be expense happy $XXX million. and technology new that’s all well, expense the headquarters and is the

that approach worth conservative, margins it, for one we are when in our be time take – some there the forward and are we OpEx around we to and continue is things mix. May And but we going to we could there conservatism we’re in most what you Where think the that on fund out, Nat, to being. were spoke of I in So calling quarter mortgage. guide, gave think

Nat Schindler

Just we J.D., see those quickly, should with expenses assume those – expenses, continue indefinitely.

level margin shift mix that grow should be this new other new – a normal changes than So you be from? should

J. D. Moriarty

that need. has that start facilities facilities the a to that heightened normalize We’re of it everything not in quarters, be period ahead. onetime more right? technology to indefinitely. go short – Furthermore, paying sorry, going Well, Recognize is year, time will expense two we next these more in there the and for is for

Doug Lebda

keep as J.D. that constructed. for on perspective, is Yes. thing, an being And accounting in still from to available a building we’re facilities the paying right it’s said, now, literally us, mind theoretically but

we’re another – building a expense expenses. Charlotte, it’s being able adding constructed. we’re got duplicating So We’ve on facilities still still in that’s an to to. where be go perspective, will back people from from accounting And

the that’s double there. So count

categories add product So that – additional wallet things types the as other plus back, loan share. normal, and definitely come as old then I’d only these the goes these hopefully, return come away. And to thing market thing back, is

Nat Schindler

Great. Thank you.

Operator

Kelly next question Your with Oppenheimer. comes from Jed

Jed Kelly

Great. my Thanks questions. for taking

to Investor kind out They’re on that not December. Just follow-up laid you non-variable Day initially or marketing in different your expenses. from what operating expenses your of the at back

that back XX So you we to how you guidance your should recovery? does can you to back that next like beginning be when months? to just mean overall that the thinking you Or XXXX? revenue the get months level out XX of original can laid in get believe the at about And

Doug Lebda

finish. want I’ll J.D., do you to start?

J. D. Moriarty

we minimum. don’t they’re the the over the Yes, give to your XX said went plan us didn’t think people say, yes, lower. needs not We they’re B, about about bare business really yes. next about annual said – dramatically we the for lower, and budget, months. Jed, When think think

would is absolutely not is The didn’t. that and B enabling be fact The are that opportunity we see of is we lower, is it if lower. We hiring. do it that staging hiring the lower. And coming it reflecting dramatically we – so piece back. It plan revenue

bit hiring staging changed relative a different of seeing in differently to us timing of light QX. pausing little And environment. just a that the in bit then a hiring you’re So the

Doug Lebda

And only I financially is, would and thing driven. is this project the add all

certain if company. to started cost run the bottoms the So you of you have a fixed up, amount

need a department. finance You

when projects You is marketing, over need variably, variable way. – in is a And then driven of an center are, biggest have you after obviously, Nothing of though on in even the costs those will. but inside call cost. basis, obviously, even run. technology, done – which even longer-term variable, and which but you that, a and need the short And are variable a the still so the IRR-focused long headquarters, are lot if run, they’re the you

we’re means seeing projects what those confidence cost if that underlying tech that holding, for is in us them. So are you’re example, costs make going on constant, we are to have money, and that they’re that working

okay, our were safe in really said, where – that, that we to because you the the focused was we’re while And changing financial pulling you are underlying pedal didn’t be pedal midst And back your laid they’re our third get go going gas then unit – that to – lean the in economics in that we knew again, while was – And to to going not that did and order those, we crisis, employees is So of business sure in we because as that once then go And confidence we gas solid. safe of winning. in in off do and on. on be. and just this once you’re the try business COVID. the off

still things doing. great there are we’re so that And

from year these in this some The doing business. home last work year have tech work the of so we for in come mortgage, other came were and would and tech year. small that in product example, in last home And product and

than market back. better before. market However, went the business away, comes think, I it That was that is,

we’re on mean in the at have for with business difficult a thrilled money hunt the like our and making is other happened going get access to for opportunities I go competitors And the And look financial market and crises, back very very, and now interesting, of very doing to being very, go I’m this the well. company. fact you losing M&A that if to able time defensive. and how So opposed as we’re to and this. at were we’re beating very in the you they the instead, not period things markets, capital resilience be money we

Jed Kelly

the is of that guess new anything anything with consumer the I of commentary, asset opportunities just Is Or more the at interesting? there else capital? M&A you’re it still Doug. balance a on seen this or Okay. at you’ve looking looking additional sheet on side follow-up pandemic because that that’s the

Doug Lebda

J.D. can comment more.

pipeline, and at we – always looking it. we’re are robust We have a always very

and it’s because powder, customers cetera. we’re doing don’t have And between history experiencing, coming the that dry lot you finance, biggest make got the as a cetera, have what experiencing, smaller things. we’ve already tech valuations I’ve we’re company to We’re of they the change awareness, seen would now of that cetera, magnified is always however, the a necessarily, strategy and trying massively right built they sure expect, because with all et are et more et brand don’t their prior down,

revenue So rather XX three things. of kind you a times start out realistic than valuations into to years see back coming mode

J. D. Moriarty

interesting add our only would that way, would only the same your of I reason. a yes, get companies because the commonly asked like not thing I but coming add, not are scenario It’s get answer this? yes, is more The question, – way are more we the is asked we for everybody coming distressed. The things all being of Jed, thing –

or respects, that companies some In companies of has the in our tracked just period attributes this fact, over of time the of target the some we years. actually demonstrated

a those cost some experiencing And some diminished so to in of customers. acquire greatly cases, companies are

so more giving them runway. And that’s actually

good have a got in with we’ve is businesses, dynamic so sustainable right? that analyze We’ve of to so or not, it. experience some our experienced we And

bit. most companies is dependent or are part. if increasing. the areas right for us I is over narrowly that say trouble that would So or is card now credit volume somebody one like little things are of on coming the a two those Certainly, having loans, are it’s changed What to personal

We’ve asset business the to in We be longer to the small be the term. interesting category is interesting. think interesting. same. continue continues past. areas That be Generally, side that will mentioned very focus Our

and no, still so are we’re the and encouraged. busier, categories really say And we’re I’d the same,

Jed Kelly

Thank you.

Doug Lebda

you. Thank

Operator

next with question Mark from Your comes RBC. Mahaney

Doug Lebda

Hey, Mark.

Mark Mahaney

Thanks.

think but had I on the to a that’s I little was lower that My think LendingTree in questions. weakness that’s One two just loans. the a know big revenue personal due I MLT I is contribution side, largely category.

if where from those just quarter. up business could question was make to variable confirm the could is float that was that the historically? So VMM this cyclical at you know, it’s reality down that, lot. the levels? from where margin expect pull natural don’t marketing then unusually kind least and a, there back a this forward that. that And Or just you or it was to of Thanks I high of mid-XXs could Is to other is, anything it sustainable going pull that

Doug Lebda

alerts Let yes, back, is you’re me let loans. Typically will improve opportunities. and My thing money. that other getting When credit LendingTree, on. into you add J.D. with And then debt are start, loan save consolidation card and sign or I’ll personal fewer for up the firm pulling also lenders On to loan. you your My a savings personal LendingTree, personal easiest there credit consolidation

the right that’s just send with So it can’t I only person people the at time because right the And as right odds. no okay – to you message to we money. many want say

of on M&A and on talked even Because rest as I first that, of just over customers, this period you in here and as that on emphasis going life, we the asset forward before, brings And on time, And more quarter. the more that’s it learn hopefully, that would continuing – that. look exceptional. low would of very get more acquisition about payout, then to and cost mortgage just less basis things it that’s revenue for the side, unusually dependence And On just on J.D. was this interactions, your transaction, percentage you side, engagement awesome. keep can the the means you the VMM we’re very of money, marketing. hopefully, at it where, low be a in the ways said the piece, where the focus it paid not recurring – effort on from ways obviously will for high your more in save you things continued

profitable Now the add, dollars can than mark pretty products other know companies it if up to the dollar. which though, would And us if way we’ve Internet we’ll you this VMM VMM nailed. you these that is that more the have, percentage you right, more matter your across is too, you’re thing last other because I to changes from more can and intraday, you’ve move analytics, marketing well, intra the got as products well week J.D.? also got –

J. D. Moriarty

that’s – I part, answering. Mark, Yes. That’s makes the that mean, listen,

from My PL is go the the Doug of away, part diminished contribution first this The be LendingTree going opportunity, somewhat to My of mostly business that revenue opportunity going furthermore, we’ve is in out LendingTree to it. May, goes personal nailed question, It’s that consumers and away. of just called – it’s And diminishing. loans. And acquisition as interest because

that come My back, And so you’ll as see back. LendingTree’s contribution comes

makes that opportunity. the hard we’re is to question, going to go always it second after the answer thing The

time are And we ultimately, trying opportunity. dollars. just after that going margins. wallet great margins the revenue mortgage and of there are of take so for to to going and We time we’re share be is period periods to degradation to what enjoy great when with a experienced had to go do be in able no the But

environment of up picking obvious we’re something to what is else going we struggling make thrilled on business. the on because to reasons, what navigate how margin. we’re most the difference. a way before when Part executing manage was to That’s one Nat’s able have product that’s and that’s our with, question comes range there for slack focused is normal new is the there’s so are And whatever that the we and we’re up

Mark Mahaney

Okay. Thanks, D. Doug. Thanks, J.

Operator

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

John Campbell

and morning. kind approach I Good more don’t about Back user as guys best tell, know the just growth really users can to you market you despite good of to talk if your can as My LendingTree, pressure. is then as up maybe lever, spend? how more kind that any the firms simply harder marketing of direct guess, much growth bit? of backdrop I of capturing versus driven plans And that on to a organically kind pull

Doug Lebda

and good to So some that. to is the product can The other now, the the are through unit down half interest driven we news comes of mostly in marketing QFs. time I’ll product had really we that. start, organically to get products then on. really And coming now it out want even into Right exciting that more come on back loan add of as still better. the J.D. the back, and COVID our given underlying in of there absolutely us plans, for We’ve lean everything from economics And year unit filling is it it’s got economics. launches they

alerts customer go per can’t So as go that able to go send you you’re the is more revenue you’ve got your do – therefore, down going marketing, advertising. and to your out, do the

getting doing of better So at off that there. and growth, and better extremely organic opt-ins we’ve gotten is well

are even the And will growing you actually question, where because on very love users good. that People a is. underpin So really the on economics pleased really, it’s and little come back. is and economics Mark’s I’m bit for that’s everybody And mortgage, that it. – The everything do. the unit product

conversion a funded So in a unit a for underlying is click a "lead" call into really or economics from loan. for or rate and lenders their example, mortgage,

better conversion then more experiences understanding So by they improve customer improve our bids. we about those their their by user as lenders help rates

the were. product for mortgage, retain in we would able we because otherwise have example, So of of our movement bids we than better were of where to

side. you on And basically we’re And the then on economics better better mortgage more. how can exclusive, in marketing capacity unit could of so revenue side, also and the just on And against downside. – then And were much were they cost lenders because our handle handle.

their LendingTree. organic But that same the thing still bumping up helped. My And So obviously, in it true capacity. is you’re against other

sing gets satisfaction to to that grow, to louder back, continues is. better lenders as it continue users So going come is thing but The the even than already product grow.

John Campbell

know thinking I last with integration to map that, appreciate it’s you over but Stash? still how going time? And of My then of early, the That it’s one are Doug. how me. findings makes into and weave And then kind any Okay. I new maybe guys developments about for road LendingTree kind or sense.

Doug Lebda

teams more we and to it, I’m that excited are that. leave I’m with going headed it on happy to to J.D. working where we and we’ve are If ask I’m to about comment sitting got and there. over them. integrating, And Board asked at going And on hand it we’re the he’s J.D. you because

J. D. Moriarty

Sure.

we’re about So we it. – John, really excited

see out. not right, year. roll you’ll some of to from totally but and evident we marketing in via going see we’re things migrate somebody to there and meaning the probably we’re be just will And from some of up of not think how experience will channel to some categories. One consumer, either September – a a end make they’ll see right? different for LendingTree the that experience, do being I’m The Stash to that start roll through I I to marketing the pure consumer be And with few screwing sure be you’ll you’re that. experience starting kind checks, experience out a that things perspective. think sure true partnerships, a trying do

for that bit seen to the work made a this them have their happened I go of Now of for companies it more for things acquire cost and it a interesting number one moving is down. that has customers mentioned make target of in environment, That a Stash, us. little to earlier

there. working but And that, I think something so September we’re in see through you’ll

the excited for in about mind when opportunity great What are product- them, we very with they’ve user the that we’re credit products. Keep capabilities about, LendingTree’s to bring a had experience. however, to centric some Now company thing talked us of them. is any really not

So access something consumer essentially that plus which what you’re essentially the – them to consumers our My loans. their score access see they’ve likely calling that’s of done is first is have consumers well LendingTree And LendingTree, stack. And by that’s as when to have powered there personal as that’s interest platform. most intelligence we’re something their credit to surveys,

what do and product Stash My probably to two can that we the and companies. it So right, My slowly, But between time, to applications we’ve to are Over to like two get real And we’re everything them. of built we we’d take rolling about the really customers. do through LendingTree product is to their those first in let’s going it okay, make so the we’re say, available consumer. everything excited LendingTree that with

John Campbell

Okay, good update. Thanks D. J.

J. D. Moriarty

John. Appreciated. you, Thank

Operator

from comes UBS. with question next Your Eric Wasserstrom

Eric Wasserstrom

are couple a Hello, of you? Just please. how questions

I a maybe to just philosophy lot of elements structure. the But Doug, first The around the on revisit wanted investment. we’ve cost touched is,

a it, future been, into Of call that there’s course, let’s has growth. revenues, historically, lot driving of gone excess

curious this that fact, an just in to verticals. certain point, unusual I’m thinking you’re the and destruction at opportunity understand in capacity permanent how growth may condition about lending market there’s it’s medium-term so so such there some – be, And to particular given

Doug Lebda

It’s a great question.

is I ROI said, based. As everything

got an right, And go your so and ROIs make is from you your accountant. who’s then sure back you this got speaking to to are also and pause and CEO,

really things So to matter these me.

And take And it followed alluded X% getting X%, of go and them. X%, in addition, we to opportunity so when only rates, the what you forever, can got And I the terms great. sense rate positive, from around usage I can refinance so us customer once CRM repeat mortgage I in today. just is example. conversion I – but however, in and CRM, you true one it if believe not management, wherever take the If fantastically to just conversion to you’ve mean say relationship still they’re is of the do

don’t everybody XXXX different where than a now exact I market was XXXX, could give numbers obviously in when XX, very the very, to loan. want get XXXX, because to Okay, XXs it

it else, even customers environment, gets a of then that we up a However, it’s X.X% from rate LendingTree shop rate to the has get old and network. they’re sometimes fine. And it And declining And ARM. for getting And in or even by way, you over the doing see, tomorrow technology and LendingTree half who move always use actually on fix a from X/X the today. example, bank, LendingTree thing which totally are your same tire a they’ve coming own our with to loans, X% show XX-year are to somebody at go they other advanced. more using exacerbated when is done, you going kickers, still on because obviously people

you on So, go opportunity bids integration lenders. better of – are underserved about have rates go log our interactive got integrations the experience going rates people and we start astounding. really card and if the over that the inside level about as inside lenders, a And the type up, served Then some over to credit exciting the we preapproved able and look things and we’ve just talk up being as could with there. our that could more And things leakage. to of – way it offers. same get and is say move easy our in conversion LendingTree, network to move to move you those could of loans, the at And when is of too, and fact move you approval of our talk personal bunch we I with those to whole and

a the now effective shareholder be that our it’s If investment continues as at fact from we’re is on between back news more shows that the do strategy. other grow go and throw who without from more the and it, to was pulling And product had why would way, wrong you least laid we’re worried, I stuff. would the that’s touching you your be it even because on tracks just in year converted shareholders doing bunch we dramatically think, who go, of finance positive. way our But to perspective a the to factoring the when easiest it because us out efficient. the stock still in today marketing And thing are our confidence good is down my tanked in site last a when and slightly – and business Board, that or the sit everybody on people, the

We’re to affect able things.

to And of of the project to tech know able make still – a a our able sense. lot heck know We’re we’re better. capacity

so we’re they And to until do don’t, it. going

were out, that fixed, areas will I that, areas that you that all where the also of sticks of see to. say also internally, inside need goes bureaucratic, that moving gets process when and you’re too Now enough, fast not you tide

et that’s I process everything that our it’s the all So opportunity opportunity that LendingTree. happening, that head. all opportunity LendingTree, is that to now and your to contract because great bugging of your you at the internal hanging employees. told an too. them job, is And the losing not part work interesting cetera, a you specter fix make actually was things of business for fix something having over And run and the on, is of not to smoother, that’s

see your is you’re We’re that you’re still And interesting health now going is to job safe, safe. work. doing

a – that’s our You’re posture. doing just from it and

Eric Wasserstrom

any of space of that. capacity follow-ups. are Thanks mortgage cycle? for through maybe, seeing Okay. this And couple creation you just a refi the Doug, in

Doug Lebda

the definitely is lenders, is of definitely so helping. to streamline helping absolutely. technology is and exclusive That Yes, move us absolutely –

the technology, work you companies, are there and we mortgage et then across So other these of you look providers to the that And can who And which their the a technology all and – rocket lenders at providing look quicken less that at that loans of can for Optimal Black so And automation, removing is that, at cetera. Maes are human do it. that with can can necessary. well. market, then and would all be – is look mortgage Knights, you you the do world Blue, the as see originations If then the and mortgage constrained, cost could of we internally see the to the well systems housing where to in definitely get making not in market capacity is interesting, constrained, of liquidity the Ellie that constraint. money you as easier built to some and day you really, really would human except –

Eric Wasserstrom

Go ahead, J.D.

J. D. Moriarty

are we’re is, cetera. is obviously a processing new it good emerging? – where et lenders important No, like, Doug’s through there have that all see no. we enables so money. your going efficiency, they’re greater some not Obviously, the point new Eric, them making to question It’s is innovation around of an one, which much cycle

those down of lenders us active. actually in some right, we’re stack is What general. activity us, had getting in seeing who for of more been the benefits terms that So further

added using number on automation. which capacity, right? that, They’re like the and be lender now a our be the and bigger XX they’re of They that a of able then player scale three number that and to So that are a on network thus – who result reflective is a as used to technology to using network capacity. becoming is things network on added

– not new much that’s So it’s so Yes. entrants.

Doug Lebda

revenue always really can about loan is is guys, less products compete actually And And which individual as concentration of the inside really that’s get winners long as that point the generally the win. with lenders we Yes. because big effect. talking interesting revenue have concentration, smaller a tail you

what challenge the a signal to the what compete is it’s However, to But the now seeing. don’t been the you’ve off really, haves living marketplace. have winners launch. for that really you’re for been and the want few help historically a really or to them had you’ve because have-nots mortgage, that have-nots really with it’s been years. typically do compete do who change, them. of That And marketplace either last lenders getting inside much and with we now the where who and has And equal, haves we bifurcated able more interesting they got have the and that’s can’t a and of bigger and guys can me not and help seeing themselves, really good historically work

Eric Wasserstrom

J.D., maybe Great. balance condition and even about to continued about you of just for of leverage especially And forward position last some the if bit me. those how issues? on some leverage? And thoughts thinking the then one can sheet comment little financial room going your and optimize – there’s you’re

J. D. Moriarty

Yes, absolutely.

that’s business. our had late a our acquisitions down very our revolver. And enabled ValuePenguin, you that cash, wasn’t balance enabled well. with prior through we recently, when the issued on But QuoteWizard think We quickly, of – ultimately, had XXXX. if very $XXX XX cash-generative million utilized we coupled company we’ve XX want had off cash. knew that – in We because we last our May for convert at until cash cash with our less us in to and that revolver revolver did to And – and we good where years, that’s Stash, served fortune capacity. do we a the operate of like. acquired paid And and our revolver And that any we two to did hand operating we it a on listen, than but have a problem – through as with And about It would of we not I were us to XXX revolver. as scale paid necessarily given we time, our – then sheet, of had XXXX us And paid So in be. we to that was we really acquisitive XXXX. off just revolver, investment the that are, I had efficient. we

the on enabled obviously convert us us right? north deal with the things. near-term view We convert in of maturities, so from proceeds with until on bought that us of bullish have for a recent will $XXX stock the our the outcome do And existing because XXX financing new. occur not enabled to We share. equity number a It to the of a

we will with off we’re in on we’re pay our comfortable – so able And were taking pretty to And market convert able again. to the revolver. comfortable tap We of leverage. leverage, with terms be

an ourselves the from think we I perspective. in – find to this ability maneuver now M&A scenario, with we

I do us. cash that enables the Those small you’ve do have continue we can things and financing at faster. a are can to make But still to contribute bigger grow lot of flexibility really us us for things. really look have scale, acquisitions, think, look that the to Eric, to seen hand, way, at on the effectively very we’ll by acquisitions continue, great We of

it’s this and You look was our XX% of a that largest year’s back $XXX great performing at And acquisition point, at contribution, last revenue year. million. it huge QuoteWizard. had At

affect is take be like able we and right on did And aggressive, have the financing. what be want – be it upon to to to be that will should that’s be things in and that us to acquisitive position not what a now. which contingent we we enable So doing leverage recent refinancing

Eric Wasserstrom

much for all of that. so Thanks Okay.

Doug Lebda

you. Thank

Operator

Your Autonomous comes with Research. from next Rob question Wildhack

Rob Wildhack

Good I there. highlighted to development the capacity think guys. reduce back you mortgage that and your morning can have on you that these the innovations picture, impact discussion product that in do something wanted permanently to jump can Big are business? the changes

Doug Lebda

has And cyclical. been watching short we pricing, The been for cyclicality lender and from this is in because makes money lenders them are way, when much it the because over trying and or has out. mortgage And a chock-full to been am trying do as yes. By it The way has I losing refi by The we’ve plan XX mortgage from to difficult the long-term. and money flips, perspective answer this removed is they’re as Very just technology for et so so can. it poor sorry. market for the figure – No, and answer. underinvested they cetera to perspective, it a make very years. short so them now market the

didn’t see were that or getting almost better if Microsoft in grip. And and – like, Mac and something we online loan back oh, But applications like for Freddie of, I and with actually XXXX, years there. it’s time, when Mortgage.com in worse, think. existed, kind you’ll it’s it doing And grip. seriously, so from taken of in I was from you it didn’t thought go XXXX that part XX

And had seen talk et now. are quickly mortgage. there that offline And through take you have get you’ve a and to sensitive able market, as credit sort that don’t people how loan, you who you need from a we humans like the with necessarily and you to moving to online. beginning to do it and like of thought, as were areas Prosper opposed in was off we very it personal cycles personal online less So LendingClub, it’s cetera, and companies with like loans happening light because to

Back So is long. absolutely. the the short answer the answer, to

Rob Wildhack

Doug, thank you.

J. D. Moriarty

Sorry go ahead.

Rob Wildhack

No. Please go ahead. No. No.

J. D. Moriarty

right? and matter, make not it’s of it we solution, not to is whom was going the increase to is think solution LendingTree I whether for they’re we lenders addressable about that one expanding lenders, as market, that our products for or has historically it our way so odds brokers worked. add What There one are bank say mortgage

give use of lenders increases. just for different expanding and diminish the by base a cases, our different As of volatility we product definition. our it types of that will odds the feel innovate And

time, That’s occurred Now what to the existing but are that that takes a et of of excited directed have past largely we’re base our that year things about. some lender at very long lenders, actually a brokers, should banks, this cetera. base be extensible broader

Doug Lebda

that of managing years a we now. a rudimentary capacity ago, not you’re manage few have We solution had can now who The the but solution a level. that, lenders that. challenge give at the One entity call managing loan one to example lenders we’ve lender operate with there. centers. there having And opposed example that’s decentralized as I’ll of officers And And is in broadening a many base. you developed is them

is which that more level you at here, wants to X requires need now. to it’s more a analytics, six five you a managing to in over liquid home adviser-like lender Moines, complicated. customers more is at person to saying not got you’re them that seven which more – that X,XXX they of today, new want X,XXX York – City six And distributed And they So there, local have and New this Des over – local we’ve new say, and manage person, that got in you gets the level into customers. management,

the us – yes lender just and base that the to So continue better. get technologies expand enables as well. lender But to

structurally different. this So is

Rob Wildhack

you. you. Thank Thank helpful. Really,

Doug Lebda

Sure.

Operator

Your final Josh Lamers question with comes William Blair. from

Josh Lamers

you. Thank okay. You’re

me. two Just ones quick for

reluctant. quarters carriers has while been noted the now, remained guys segment, a First probably for insurance agent that of a couple benefiting work-from-home bit you element have

of incremental So that’s hoping then was like second the I I’m December hoping could could I Thanks. that COVID with expand bit that impacting And Last that, to talking publisher it you large you a XXXX, that and why platform. be touch about were degree? the may half a opportunity on progression a on could take hold that fairly case? bit recognize a sounded although the the second, in when you

Doug Lebda

take you J. want D., do to that?

J. D. Moriarty

services. say in Sure. Yes, seen. What reluctant. during COVID I would clearly agent our we’ve seen Yes. it’s that in is what behavior I we’ve period is interest wouldn’t this what gain say more

in home very just carrier. business. So more our well. perhaps big are reluctance agent doing business agent I of it aggressive, working And from uptick necessarily characterize very, as being is the but commercial, more wouldn’t we’ve a agents the seen

excellent of And for that so we agents, businesses. platform one The of that, best-performing one and been the has our base exciting broadened platform our And synergy LendingTree and really of that’s of things publisher there whole having publisher enabled us. QuoteWizard. the is great orientation between has

we’re LendingTree about, refer about. by think you we relationship As lot to a publishers there excited we’ve and seen can funnel QuoteWizard, served with that into be that have who a

to So with. It’s just thrilled it’s we’re do business well. the that story do an – publisher The continues execution to business at well. QuoteWizard agent continues really

Doug Lebda

have I to add have to I was on nothing that. And perfect. – that

J. D. Moriarty

was QuoteWizard carriers, it that an thing one insurance, – say, generally The with just excellent thematic I job big when in – one would product. interesting and guess, thing penetrating of did certain I we

story been and there year, If it a whom say, have relationship carrier and at getting clicks with they’re To calls. clicks. leads then clicks okay, has you the look or a last buying and success great in you the

rate a attach story. really it’s So product

with And innovate products so the to doing expand that. will keep to opportunity that they continue just

it’s something so and really really I with. that’s we’re And story, execution an the strategy, when say happy

Doug Lebda

questions, Anymore operator?

Operator

the closing remarks. no are to back you call over questions. There for further I’ll turn

Doug Lebda

sure And everybody that but stuff thank business already out, are hit, conditions start I today, to COVID, safe, want always the you reiterate just customers. our Well, hire our At are I this make want is today. look of in. freaking fix, want great people that’s to I for look want safe. our just help said people to to what we we buy, want our community help And it. Everybody then for to is being two fix when else lean team, make companies sure Great. and for did. and those here the we I’ve told And

So today, company. much a we’re stronger

now about forward talking to as months. stronger, world tighter to money, Thank more a in use spending We stronger raise in thank you continued crisis feel as of markets opportunity. team. support we look more and the heading We’re great a judiciously we the hit we ecosystem LendingTree are shareholders, capital LendingTree is perfectly is a and it we going to where to and are want And for forward. fellow you. and I all you your few this to

J. D. Moriarty

all. Thanks,

Operator

you Thank conference. today’s participating for in

disconnect. now may You

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