LendingTree (TREE) 29 Apr 212021 Q1 Earnings call transcript

Company Profile

Participants

Trent Ziegler	VP, IR
Doug Lebda	Chairman and CEO
J.D. Moriarty	CFO
James Friedman	Susquehanna
Jed Kelly	Oppenheimer
Youssef Squali	Truist Securities
Rob Wildhack	Autonomous
John Campbell	Stephens, Inc.
Kyle Peterson	Needham
Kunal Madhukar	Deutsche Bank
Melissa Wedel	JP Morgan

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to the LendingTree, Inc.

First Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Trent Ziegler, Vice President of Investor Relations.

Trent Ziegler

Great. everyone, First the Quarter thanks, to this and LendingTree’s discuss XXXX operator, for call joining morning Thanks, Financial Results.

with and our phone Chairman the me Doug are On Lebda, and CEO; J.D. CFO. currently Moriarty, today LendingTree’s

As time for to Relations on letter a and shareholders read today’s of spend to on call, a of today. that our we’ll And that listeners everyone, have reminder earlier post detailed we website Q&A. purposes Investor our we’ll most assume letter,

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

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

Doug Lebda

today. to for thanks and Trent, Thanks, joining the everyone call

perspective substantially improving the our gradually reopen. and strength seeing again -- business segments. continues as to prior The we’re first quarter’s guidance results the demonstrate the continued exceeded our the the our and once core on of We momentum of year our economy across of as remainder all is

increasingly LendingTree to turn record revenue in the fill Our as network needs. QX and posted Home lenders consumers segment their mortgage to

market us scale business have and our product lender deep marketing throughout network, continue to Our enabled to mortgage evolution world-class cycles. machine

clearly perform Our consistently a is leader continues macroeconomic Insurance to at susceptible to conditions. scale, and well less market business as

to lenders, the new into quarter of expanding see durability channels, continue overall We reopening, consumer categories, further feel begins our time carrier borrow business recovery the traffic are to to growing to and beginning throughout and diversify And pre-pandemic health clear demand economy return to good adding matter the adjacent a business a The our aggregate, before it’s of of levels. we accelerate network tangible model into after continue consumer consumers confident our and we’re demand In year. of from as about spend, strengthen only segment will businesses signs network and by business. insurance We signs whole. show is our the returning remainder of continues of to that of another. our really our acquisition to expanding Consumer our one and

to to In also executive announcing our is breadth touch like briefly. quarter’s business the The addition forward, to the business deserve just we and last of growth competitive morning an I’d the a propel that and accordingly. our a undeniable core aspects LendingTree. further historically of levels on that organizing more scale and team And the categories for are to focus of order we’ve delivered, and are our company across this the results, sustain also realignment marketplace clear months several over that asset become of it’s in certain we advantage

doing. leadership sales, This our and including LendingTree, role the of to all-evolving signal be me. commitment Treasury role, FD&A, bigger And position this throughout things we detail, will continue finance release, read the core company going moves him. to long partnerships, LendingTree so consumer spell the who in but in a Neil assets. LendingTree You great experience, Scott the you can CFO. morning’s very all is and this X will about calling to lead enterprise all streamline finally, our broader Trent and the out in essentially encompass for Moriarty to well-deserved I’m Next. those Relations has My all operations too progression Salvage initiatives, this directly here’s insurance, assuming oversee what operational to for a strategic very, is company will for strategic in that continue which more moving development J.D.’s than reporting Trent will investing Ziegler, press corporate to and and this J.D. has much These it Investor begin end-market our well, will haul. our business know of QuoteWizard, I unique key announce we’re our endeavor won’t are different other with be And will businesses. transition, division founded team dynamics leading last thrilled our who Peyree, Scott and into to years, what should management. natural

While of and am company energy, throughout thank those to to I Board with their solid, scale very new also support to I’d into with team, long incredibly who the our great our continued we that, deal for it recognize questions. focus support, process. renewed on roles. provided in need open these of on to focus confident are I’d Directors, leadership And this operator, decision-making core let’s like thought future. the a efforts. aligning business our ability And to incredibly our we our of and personally congratulate innovation, each leaders our people HR is like

Operator

from comes Susquehanna. first from of Your Instructions] the Friedman question line James [Operator

James Friedman

ask congratulations Neil, Scott, on maybe Doug. J.D., the to new assignments. I Trent, -- address wanted to

and the of crisis themes, whether economy financial So it your over trade? reopening in parts of the beneficiary why? you’re bubble transitions if you today’s Want Doug, was many And say a seen of business? the before the global through And reopening get the which years, dot-com so, that. to would or terms has COVID Tree perspective

Doug Lebda

that where I we really trade, business. Reopening to which I’m leave recovery technicals goes, here’s But all. kind is along of the the the going the would say, think future to of Consumer you

first probably it didn’t time on in their where volume lenders was LendingTree’s as many hit kicked up. see off weathered able shutting cycles. us we were the we year You history, This that where to -- we’ve past

see that’s channels, the And the going to expect starting continue are loan where definitely, we again, mortgage. to is where growth. personal and companies businesses, think make move so we they credit the into grow we’re and find a online companies to The loans in to renewed card Consumer which then But in LendingTree. they

probably So trade." I most J.D., likely think do "reopening think? that’s the you what

J.D. Moriarty

worth of it’s a number clear, clear spend. are the Obviously, Yes. know, ways what It of without at think companies call, I COVID I a short-term years’ it. brand or awareness through got that companies you there marketing that X Jamie, clear there would good is -- beneficiaries question. are as looking of are X

We’re certainly category. not in that

However, beneficiary. we think are term, I longer absolutely a

move categories, for that’s think that’s in card, you marketing If whether overall we personal loan been Insurance. going think, to or do online. spend time. marketing Home, not more through, that of in our about of take just to online is is financial spend channels those in any credit more partners This, to force so. of had who going It we’ve services and to some That’s whether what going our adopted to

that. the and of short our through we’re results testament been to it. through getting the think we’ve term it short We term of obviously, are Now

seeing for very signs business. this is of good Longer our we very, We’re term, recovery think there.

going that X- times QX, come marketing economy mean things York reopening way benefit long-term this as our online, of more care in term I does thinking I or New think people as what X-quarter will and the morning, of use we City like the the segments. to most for reopening they’re more you see trade, geez, about more some. is So the spend impact, a QX? is opening that’s about a benefit to and going much which each beneficiary

other some but for obvious I So sure. think we’re longer I the do I think ones, of think so. don’t as as term

Operator

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

Jed Kelly

Great. Two, may. I if

the then talk J.D. should Doug, as to economics in the Day of at margin how about into LendingTree does just Analyst with credit come sort your new December and management segment Just in at the this can you some or with Consumer talked start -- how or personal Doug, the particularly in loan? of unit products last we stuff card, structure, tie XXXX? you back look My and And

Doug Lebda

and don’t economics. the first, why take Yes, J.D. you I take in Sure. second one Thank then

a and this focus we’re going where get we just front. York on bucket, our Not really high think My inside numbers looking very, experience ramming take lot where into positive of ties are My basically able in around to if you that do tech split then to doing every experimentation into is [indiscernible] that different business LendingTree my to trying it so at as into innovation. be we’re to speed. that’s LendingTree? be we’re the reporting units, into ties post will, if And up of to and what New that J.D. really you about -- move how we’re to X our be from have them can say to And -- going going the level are continuing So a to of one one priorities going to that but to change. very product of assets and work, streams

unit LendingTree LendingTree, economics, et that’s within NPS. with rates. And J.D.’s partners improving improvements which the improving change the co-branding, world. Powered about Hopefully, all getting group is step next by is all the definitely then that there’s So in cetera, conversion in

that it’s Neil world. think and more economics? -- I also to us we’re a going give there, focus team in It’s calling want you so on J.D, ability going to lot of and to it internally, and dividing unit our focus conquering. touch lot a And -- much give to we’re

J.D. Moriarty

Sure. Yes.

Doug Lebda

talk if too, You your could want. about new role, you

J.D. Moriarty

of teasing. No. at way? I advantage as extension we my alignment think unit core an do focus just at things That’s look use that economics competitive have marketplace length. dedicated that we just about talk of grow and to in excited rather I the So those outsized process. any how Jed, I’d But I’m can that’s an -- really those then about okay. on we’re things. each to obviously then. in being talk thought world the I assets

relates to unit As it economics.

our year from at we projection of a within everybody QX back as the our internally do ways we’ve is got Just stepping each when where back looking to business we XX-ish Personal be small that our capacity. percent, business consumer for that that that’s those ahead, not well. our of it they’ll card, But XXXX end the that one to credit and on are we’re revenue meaningfully is is business our mid-XX% obviously XX% this personal -- credit and basis. is business, a insurance for pre-COVID. was ahead. small and -- quarter, yet business loans, businesses at our are ago, to to XX%, relative look it home where of Or and remind dramatically projection and XX card happy see And literally

So your that our question on points as profile, obviously, out. ripples margin through,

a when at so And talked very also still XX% ago, is of a it about, margin as aggregate margin. year business the was XX% operating our is the we’ve not. card in And But Consumer. credit healthy was revenue, consumer

there just both personal remain loans talk the margins of healthy. little puts those The that about them volume is Personal a unique. on each takes on side. and are So the with loan things of some let’s affecting because bit consumer are issue

So there. demand is lender the absolutely

We have yet consumer a seen demand. renewed not

stimulus see an to of on money impact great. is the But all starting signs had out has it, there that. obviously, We’re which

profile us. business, though, remains very, very strong So for in the that margin

the consumer absolutely The we’re about demand return personal loan demand And happy up see see to we that with consumers a balances, return we’re traveling, we card excited that. that. So with will is lender come building in and in there. credit business, as

We We’ve the for in is card. hard. extraordinarily Our is think year conservatism in this entire consumer particular, reason. with approached conservative business, just calling this around good and guide because the timing credit

right terms Now unit in economics credit VMMs. of sub-XX% in Those you when are at card, look okay, now,

So that drag. a is that, recognize

-- this growth card third when contribution the we last revenue that revenue We’re We would quarter year. growth. returns, that said credit lead growth, in and said of seeing we’re

to that’s issuer away where impact the and call, that kind said to being we’re I us? some able one of going what’s are. there, margin garner from so aggressive I on think we for And last

We’re up? getting which up, Revenue there. But approval rate. you is move great. know per what needs to moving Approval is else

move credit but So issuer So to signing partners. direct underwriting consumers spending we’re to dollars a credit improving, issuer box that marketing right? up needs up is the bit that little to our card redirect to -- higher, for it is card

doing take approval. We’re so card, to that’s paid very business with And Right right -- it, market try business. getting build more per approve, amount that we be the we’re in the VMM segment. we’re as it That’s share the a we revenue wallet, modest the and the that more I certain back looking contribution, And meaningful will to more sub-XX%. a strategy -- can issuer try rebuild pretty it’s they back to now, we benefit. just on going how and get a for as very a

And a is and got $XX. so the is This there. year strategy. a the we know QX think segment, take to it’s QX.But capacity of we’re We’ve the revenue doing. partner X to back get right million in $XX that We just million in ago. steps wallet, what to that’s obviously,

So think of forecast. that to is are margin conservative remainder the with the as to We look we back. we at year, going come respect

because of the card, know in up a credit hard loan okay, then most more a consumers great built just that and deal card debt. not have timing probably But on We’re little we is bit positive loan. personal personal of conservative

-- that’s really only Jed, structurally margin it at to economics, a we it’s choice And as that’s back. business, only that’s your profile. is different it’s build business -- by on unit So question the operating the that

and operating a know the that’s in respect why it where loan was. to moment. is exactly drivers at personal VMM But You the with Home lower

Jed Kelly

there Got of businesses longer-term XXXX XX small impaired credit they of the months? loans, it. is back And to get or XX -- profiles just then COVID? any can think Is it. next one their follow-up margin those -- Or any to out cards you do in all from personal structurally

J.D. Moriarty

No.

think. I

Doug Lebda

to add Yes. J.D., I’ll then and that. ahead go

J.D. Moriarty

customer out will people Now of don’t is structurally is that that they’re in need two, And Yes. Buy get remind respect I couple so And actually indeed guess actually impaired need to consumer periodically with priority, and acquisition One, on whatsoever. And the from debt is going then point to be cards. their I up, competition issuer going refinanced. You’re portfolios if that some things. good to then is space that from where goes We credit a ultimately that’s credit thing credit the some at for margin is -- questions for -- Later right, stealing grow of that would to that right? to want think a focus card I space, terms is the card to Pay a everybody and there, stealing us.

be some of think PPP, health small impaired. health any business, structurally I where no, that business the So these of I that new lenders of people to I resilient. And of think the understand side are the don’t really business of kind small them of that’s a going And emerge. then businesses, the class think to other a you’re continues small restaurant, in on of see

And so for that be a benefit will us. real

businesses any I of they impaired, and of So side no, I think other that the don’t this. be actually could better structurally think the on

Doug Lebda

was to better. being impaired, I point agree, not totally I And going as to J.D.’s say

obviously the it in space just year, we’ve I consumer space. online comfortable of every think consumer more moving and seen and category. more lending online, more the more past and during is People are

so And post going to be it better is COVID I than think pre.

Operator

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

Youssef Squali

about had Sorry mute. on that. guys Apologies. you I

So congrats all around.

with that there? and with Because cetera? loan are about credit optimizing quick X you are LendingTree can And what you advantages nonpersonal gating are a on are just we’ve mortgage, questions for in So where clear talking cards, to for really, My the of My business. LendingTree? insurance, integration et there you Back me. obviously My factors been guys while, the So speak within where to products you LendingTree, maybe

maybe baking growth that to terms I guidance, And segment. of was that. sense a So your hoping of of guys us get terms you’d then you just what in just speak are help in maybe by

then So Home The ended again, the really out happened. in came But letter, is think well. in guys business you obviously strong. Consumer up doing fleshed I materially slower. what March

-- kind Insurance consumer of would the be I’m trajectory the that baking any oil, And for kind you’re what So of business, a of it, for any quantification I directional that call super XX%-plus for are back to segment is. we sorry, helpful. guess,

Doug Lebda

you to J.D., take that? want

J.D. Moriarty

Yes, sure.

So I My LendingTree do will context me why around take some with let’s let start give I -- this? don’t and that. the question,

So a things. couple of

our Let so very integration by been level our competitive to you fact is to From going we’re me been start that But set LendingTree other is perspective, this. think happy okay? get I base most -- personal has largely product with And an growth about the aligned. for acquisition last So products. personal of loans advantage, of think right? with if the our My you to and we’ve get the of funnel, that personal our everybody acquisition existing loan each the loans just driven the X existing Youssef, obviously and quarters,

to in did be in For QX that’s have us new for go users. and loans as terms this best of personal had we to through and a single the QX quarter it what acquisition growth, LT My business in XXXX, even relatively and in dormant

We’re thrilled to strategy acquisition this with that that. is platform our working. to That syndicate partners means

And so reliance beginning little with loans. and less is a happy on bit really we’re that that, of personal the

Now that’s acquisition on side. the

personal cetera. mortgage. log do the is continue because to this revenue. has to But tied very will repeat quarter loans business, question in in and we people And they’re very and much to still made users, in et good Your clearly, with progress

not XX%. Now contribution, terms at quarter-on-quarter, in had was quarter card, you revenue of up obviously, But the just look surprising. we that mortgage, it’s when in credit card credit

is products. sort It foundational is its -- of A these other of went of was year, that other last critical work products to Plan with alignment on the enables that. lot So to the that infrastructure. happening. sort Youssef,

yesterday, integration we most them, insurance. a just the And quite insurance. in launch of did is new one literally, obvious, So

are chipping getting So differentiated strategy into at away LT and My having as there a we well. around insurance offering the

we’ve so bindable experience typically trying is than we’re they consumer the in My to quotes. get to tied for And that We about, agency business, LT which be and our experience to that get. different a talked want

My takes at really And you But if to of segments big LT. LT. to profiling the segments to why be you’re so insurance for more one time. going some And within those My get -- and it one look that’s you -- the that’s look, is more huge starting of aligned our see

great our progress. tail and that sign-ups with so making off, revenue in but business going strategy, into back and only think Now we’re personal our this reliance we off, that see insurance in meaningful tails when part we you’re see We we on tail with we’ve countered loan, the off. Recognize great XXXX went to of year. the think progress think acquisition you’ll not

the So My dealership within app LT strategy. of about a relative initiatives to number is we’ve about. We’ve the talked strategy agency core talked that the the insurance. well that as as to that’s

My that, growth. pretty with work is we’re So going to think we’ve got with it core so and get it base thrilled hand-in-hand LT impactful. this the all to and up, acquisition is we be But user will to

Doug Lebda

you of et have for opposed as to a having we LendingTree, those obviously only transactions onto to -- can I would to credit is be thing alerts as thing sorry improvement, new which of notion The self-directed the accentuate add is -- part -- oh, I would member I’m of only it. also cetera. experiences, in My experience, that consumer -- And that the about thinking push new as the you

and out. its So users been we’ve most its both flow flow those LendingTree and in it, said working. our change, and consumer money, getting from think numbers of on that time, NPS other far, the from definitely and consumers separate loan tied as of the LendingTree Over My with so LendingTree J.D. own starts saving to from it’s My types. standpoint, liking from that

Trent Ziegler

just sure. It specifically -- the to I Just question. our just be want to to second was and related I’m to want question was sorry, consumer? the restate guide, related I second

Youssef Squali

to was really it actually get Well, just a.

Trent Ziegler

no. Oh,

yes, Sorry, it insurance was sorry. and --

Youssef Squali

slope in would also and the of your Home but on then Consumer. insurance, love kind the strength take get in views of in was to it sustainability your Yes recovery the of

Doug Lebda

think can take Why additional going -- to Yes. and I Trent’s then don’t I commentary. give that

Trent Ziegler

Yes what if for the -- relative Youssef, QX you’ve did as just QX. we guide to you in look at

at were recognize basis the you year-on-year. that think look I growth or a in Home whether extraordinary, QX, sequential it pretty numbers on you

to to Some to moving related in of and that people the fence and with that up hard but quantify, getting some is off regard probably of -- this rates quarter the activity. is refi

QX, that QX, bit some we business. offsetting decline a very do there decline early is that but modest. into We still we are healthy we sequential the Insurance of of So home, and pretty surging growing is in challenges, declines of March But saw that moving assume said the XX%. part north little exited

businesses into quarter. the where second then for business. perspective We -- recovery personal purposes Consumer, expect continue to guidance of small pretty to that’s our but a modest there, that to we are be talked about key we’ve headed. across And the with card, expect continue on there, loans, kind to lot regard all conservative kind We of continuing

So that making that’s the related a out standpoint, what of $X called million on to in to aspect kind revenue imply OpEx the guide increase nonmarketing investment marketing an the letter. the is business trying of step-up to to we’re of we’re does do in million support We OpEx, But side. $X in Medicare agency very specific million build-out OpEx, that the From about of Insurance this the quarter-to-quarter. $X and a it. of

think come. that many I bear through for year That will So this to thawing we’re and out. later years

Doug Lebda

many than only extraordinary January far the our thing Insurance -- remains doesn’t quite to a March, segments had only the Insurance, largest one and business have factors. Youssef, our macro more difficult the a of tied other an The consistent February. overall But segment,

certainly April. run really March in in are the rate performance we So the happy and with

our type of so of we we set being that confidence when business lot in have the budget a grower that in anticipated And December. we

LendingTree about thing confidence only associated I million this touch we quarter that other of happy of this January. good last of one is internal our is talked in really we’re and but is That’s a -- acquisitions, our greenlit -- just should at just couple And performance our not with March $X things of the investments. in years gives corp the the us with on dev that the investment And business. in that that decision. Medicare. an over The we expense one also So all example

so to Medicare a and seasonal build a we’ll business. And continue agency out that’s business, very

So it the were being had, will you a to at sense, drag about agents just about with year, XX -- average, XX. we on last we give finished in XXXX. year We January,

end We have grow $XXX a the the plan to to by million. that of year

so And pay a meaningfully part drag all off of the that’s And is in this in going to bit and business. strategy of QX. QX insurance and diversifying QX that should

And We it were that because we so economics. the last in year. know unit we know business

are confident we to the there. unique ability press economics that execute, in Now to and the we’re gas going on

$XXX $X million about you just options. recognize when OpEx, taxes up that from at stock is from is step Medicare, so in And million on look payroll

things just line. worth that So OpEx the calling X are out on

Operator

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

Rob Wildhack

up Just on to follow wanted OpEx.

a then in quarter. in step-up wondering out and what you’re OpEx and mentioned second XQ quarter first quarter trajectory the QX. then beyond improvement thinking the called drove in about the good a I’m the You how you

Doug Lebda

J.D. investments. that on slightly said hit Let me just about internal something harder just

we’ve means don’t lot I confidence we -- the that growth make product, When those that this. we’ll and of in you see generally about got and of us it a out, investments in think calling that lately. talk investing it

over to Now you X. I’ll turn it

J.D. Moriarty

Sure.

saw because didn’t be our So a company full year in to to and B. a in ourselves pressed Rob, but did grow mode We revenue obviously, put to growth compress and a we pause, a hit we plan businesses, wanted we go we listen, compress year. as do certain when VMD freeze of and hiring this last we COVID in position

obviously as as we had last grew company, we as grew but XXXX, much we So year a anticipated into heading OpEx. OpEx not

to rules. revenue. basic grow head the internal It XX% going rule than and VMD, with less slower XXXX -- We’re to into we direction needs than X internal of of back a need in

obviously, balance of we’re last OpEx. Now Okay? out to revenue year, that trying initiatives compressed got But whack. with when growth

rules the internally, and invest. quarterly we and are X where see to we’re those so trying and And it monitoring monthly

we’re are happy a And the But not that, good most example our that. expansion lean growing. in is really things What about so that that to growth in Medicare of the going that very insurance then we’re and of OpEx like to things nicely. are I’m growing is moderate areas is going into like

but So That’s should you see slowing in rate subsequent OpEx. the goal. our quarters in growth, a

think given but That so I are is not care those And year. promises deliver about -- we marching orders to VMB the ultimately aggregate are one -- to what quarter, internally. starting on any the And relative we those growth OpEx.

because we new moving incremental incremental we talked which that and had In terms are of one lease things to, a in leases. X into to pay we bearing were headquarters Charlotte about attention we thing building worth expense, noting,

We of out in are as of lease January. Charlotte second the

QX, do included So that would in think that have would we -- to relocation. the tied that some be OpEx while is is, you the reality

quarter another Trent, But so. starting perspective. expense So is or normalize for there from to I it normalize lease a there? missed quite it won’t anything

Trent Ziegler

think don’t specifically I anything worth out. calling No,

on, Just new the the expenses least and back at of in headquarters, to few first. office at the optional people summer an next the into on the getting we basis over into start which intend bringing do

be but will some there major. expenses associated with nothing So that,

Operator

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

John Campbell

also congrats leadership changes. the the echo to like on I’d

you that think to big and covered can’t consumer when pretty sheet. apologize I But a of but that’s promotion really Trent. I balance Next, the an the deeper well-deserved at I the move hinting on so kind see help term already of this. guys exciting sure. jumped side I But a asset LendingTree think for guys you maybe into eventual I That’s here, congrats if little late

JV if regards kind guys relationship’s you investment investment? to are to provide could a stash on the in of and progressed you can how So And where the update that you journey? maybe talk since quick that J.D., maybe if then

J.D. Moriarty

thinking you say just of what When you sort Yes. asset the are side, there?

John Campbell

selling maybe that, side in looking just into savings, at of role anything consumers. the more more of for just wealth adviser the debt -- Bringing leads outside

Trent Ziegler

talked a I So Next the not saying adviser now extension. and yes, -- J.D. smarter about right we also you we think be some thing spending save, side their continue about are and make it can and there for underlying to and we think is. it’s that inroads consumers The to there. the -- talking take -- to whatever people to call -- encouraging financial and much relationships, the to that want there? -- we we’re are is reorg, wouldn’t budgeting data, sitting do And plaid seeing going the J.D, about so goal to how the is to can financial and yes, is achieve the do all asset it reason not we’re basic reason integration. how natural savings With

J.D. Moriarty

Yes, sure.

say John, is I sure, -- that. the I So just it’s will broader would it side but part guess it Consumer of for be than

if an what so of each -- assets. of these off extension our within marketplace they’re we’re calling LT you about think My Next, So areas, core

it, what to My We of consumer the off an real need it. -- So asset call been of It to part So dedicate next off to of the adjacent that for for the marketplace level so that’s built we us. is experience. take and focus My is business. is LendingTree, It’s -- LT okay?

sure, of that obviously, My our with piece one it. could consumers them we take and to consumer reengage one, include making that’s LendingTree, marketplace Now get experience

consumer that a in Another we experience of and we we about What the Next. given multiple is match and today, have within to explore saying, how for lenders. That’s other you So reinvent in come consumer to innovate? -- today? might experience from consumer want experiences Home you do we what

for what LendingTree Now LendingTree, another Well, financial want part Powered by of syndication My than a is I it idea is wellness be mentioned could and the by right? us Powered call strategy is we the and power a being Powered partners you broader by platform. that, part of this little growing LendingTree any to of as our of LT. --

marketplace. managed a power to us want You

loan through that services in be products. That this partnership would are You partner monetize area. financial to a all wants

but all in So these assets, of themselves an off extensions growth or things in not that. are are are of they marketplace that

in is also there Now corporate development.

which can well that? very do continue acquisitive, and more our it’s doing the be and see be focus higher-level get as to the them, they well, invested raised on obviously, like way we partnerships? how augment you’ve interact of But the My and the We We much all consumer this That’s would we million February recently think use how last money how a Next. marketplace on existing we -- going out better. get how And we’ll we’ll is a company. -- done and as as think asset? -- corporate here, focus in increasing with is, really experience to so And do partner continue a we that Now tied LT things renewed billion. valuation. detailing then there use consumer. already development $X.X we’re we something overarching year stash. part I that that but with make $XXX be love about companies partnerships. try we’re we the do both to the we an are -- at will at about they’ve of to to of to strategy And rounding how mentioned And How Stash do

John Campbell

And a more great quick That’s one Okay. here one Insurance. rundown. on then

And the could can competition If then spend. maybe to of maybe characterize remind maybe broadly, mix carrier if guys of agents level behavior kind the space us you you exposure in now? or of just just the versus

Trent Ziegler

great that we it’s I have -- mix. that specific or I disclosed -- know disclose don’t don’t a

can are to the But right that. be going State I the -- All number the you great get saw revenue agencies Partners, were can. Obviously, big huge so your a through Farm me to highly -- that you carriers know I like Insurance big but We when who’s and we business in customers, know mix, mix, however. if we like disclosed and don’t know business, disclosed others, State and it. we’ve progress if I that the and let at try exact we throughout of don’t I agent part actually don’t look that Progressive top the powered anybody agents COVID. So with have XXXX,

J.D. Moriarty

some we think do also it’s operate I something through it. operate but the overly local now and that can don’t and clicks, agency. local agencies more Yes, from carriers calls, we no disclosed standpoint leads important, important -- And not agents and it’s and centrally, data

So however for business best. the we’ve suits basically their our clients model got multiple ways to play with it

Operator

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

Kyle Peterson

Kyle for Mayank. This is Peterson actually

and technical with on could little you your quarter see would impact versus -- did and the partners you guys on touch Just Any the severe any see a be weather Texas additional the guys if of large kind any on performance color wanted in like the insurance of surrounding great. of winter some issue more of some one the color more like areas? give from to

Doug Lebda

Can take that, you J.D.?

J.D. Moriarty

-- on have in had I have X one us. did referenced letter, had think which did We about carrier for Sure. we our days impact outage Sure. we that

was us. X in overall impacted think than was Do about the And carriers -- where so just they that where out, of of and about X-day anything was calling substantive, terms a did yes, there performance the a But had in and we’re in that was call outage obviously, not It’s improved that an an issue specifically like our us couple what optimization. impact improvement that. business to there centers. relative that and definitely March But outage for I more days.

Kyle Peterson

surrounding in a the of the storms I towards -- change kind Got few of disruption of up wanted it. middle or did like Texas in follow the in demand and notice any carrier the And the see you then I during areas? quarter impacted to guess just that winter guys some

Doug Lebda

like had demand. there. did X so Not carrier who did much -- call partners centers We we have have

routing we’re did have calls But but were it impact. obviously, was So our impact. when not business ongoing, staffed did -- not it was it have the it and because of those not weather,

call partners stacked X or of unstaffed fully centers. than did our have less So

Kyle Peterson

the And I on card to That’s Saw impacts out it. and there’s then of Got on on helpful. impact some guess called credit stimulus. just you guys notice of progressed has worked stimulus some as of system demand have you through stuff, March way proliferation that of negative back April kind have one personal quick guys started into been its some as loan follow-up here? the to you kind Did through that guys and up it. the

J.D. Moriarty

Yes.

side, pretty be the -- in causes is actually is demand, to it’s guide. just is. cautious and us start There’s to it personal But on with you’re that it’s real. certainly say -- what -- So impact respect the It’s to Consumer on referring with still we that stimulus -- let’s fairly better, to consumer the the personal. the not -- not

on balance balances, really segment card it’s is have And demand credit so we’re on card. have there or you our personal loans consumer up cautious than consumer we loans, right? for trail quarter, up they case. Meaning, pardon That’s that #X on though to credit personal -- me, we’re both in the the credit on the look demand being typically for build guide yet will probably credit card to because for use us Personal healthier seen for card, will not cards at loans. will when -- loan build the the cautious for balances be credit even that, will the consumers personal being and Consumer business

definitely a say has loan partner personal consumer of at right? the have either growth. change consumer of side, or time healthier the in The So personal dynamic, loan. credit discernible no, cards had What we that not credit is on gotten and the are card enough pass look issuer in lender interest desirous and there’s terms it to

the will as from recovers, benefit so consumer that we sure. And for

all simulus just the is very sellers. because reflects guide Our of some timing conservatism calling hard the in light

Doug Lebda

they’ve I as savings money, lenders but consumer are powder. balances the hit debt how of spending. think come worthy end it the on the coming it bank is is, thing I obviously and in however, only dry definitely and would accounts back, back, for is and lot that it’s the add J.D. more stimulus And in good less up a American -- lending, Yes, and got

think for next well several I that up us sets the years.

Operator

Bank. Deutsche Madhukar next Kunal of Our comes the line with question from

Kunal Madhukar

I Congratulations want on changes. with the And mortgages. I start management to understand. to want

how by letter and Can lead trends? pricing trended improved. kind refi now? You about a of volume understand how in And of terms talked revenue are of that they the per bit disaggregate in over And how the refi? better of maybe impacted volumes into your Where kind purchase kind getting is we quarter?

Doug Lebda

Got it.

it J.D. at talk to me over then hand level let high So a and

lenders very well obviously, standpoint -- on profitable. as we The very and system doing have high demand well much our Demand been very, very, way mortgage. the from our a and So has been work been work inside very Google. consumer lenders of very

maybe the bidding you better revenue "I’d so to amount on And or the off, they’re that of looking based just like then tapered giving lenders been volume they’re for. have segments volume saying, as has keep and doing up. refinance has gets of consumers -- so per us lead, RPL, because add reduce that? why more LTVs, for then that And to pushed up ask on pushes they’ll you their that’s my then expand RPL want full." J.D., cetera. their loan and volume, to pipelines And coverage et they’ll -- their

J.D. Moriarty

Sure.

push went right? and knowing RPL knowing could So cycle, XXXX volume, that this you so revenue on I our And mean we see strength. Kunal, we into end

a where we’re As where a -- than overall of from the in meaningfully on -- percentage basis from dollar a XX% last quarters, mortgage, was was purchase happy it purchase was with well, it still of very It’s a it the while aggregate. less grew that. So less little meaningfully little grew okay? X

on lenders we like in right? step-up refinance. throughout not definitely a going this, the to in rates are March. see and quarter, With monitor are, did Then a purchase focus cycle our where Now we they in surprising that’s

the expand would but the we throughout that of RPLs seasonal. We in saw And purchase anticipate in would right? RPLs and refinance meaningfully Some -- move spring, up so quarter. to season purchase is further. we purchase that anticipate in in

well. So substitution regard very with for that purchase is because Our monitor QX is to guide and to just more much very, refi we know this volume out refi there’s we effect refi between how cautious potential there, have right?

lenders with that. mix monitor as we’re And we mind, keep in so their And toward working our well.

we’re in QX. happy RPLs So with really the progress in

equity some because purchase is intended in step-up in But with of we’ve moved think of conservatism that. to home that and I guided offset volatility where QX in rates for some rates. and the

cycle. And in point the so during to what you that’s of this balance kind have

Doug Lebda

any I’d And capacity, helped you’re J.D. ones home loan, of your close type time add home of equity go at refinance, to the if to But thing going of company, given about volume. think on loan. you even high effect, easiest mortgage a of substitution fixed you only profitable the a and purchase, the a can most from a the and perspective the close a a underwrite this to

during then that’s so their then like self-select lenders last why open will their down, more they periods as into up refinance And to year. volume purchase slow refinance And starts filters.

my still refinance gosh, types. you our you’ve be those so in in purchase lot more volume loan look to market is, And business." into because with penetration, then purchase always loan in see lenders across that at -- goes a of RPL say, that move past, and small of the going types when will into Well, and the terms got coverage, the at still business at expanded And And smaller there’s look it’s and refinance make overall. people reality this improves movement we’ll "Oh times away, that and a you’re business. a left

Kunal Madhukar

I Great. LendingTree. My on have follow-up One quick a and question then

QX, So or basically XQ purchase decline, you and is for sequential look the your at like refi? in the a also sequentially projections that you as are thinking decline just declined

J.D. Moriarty

No.

Just refi. in

Kunal Madhukar

revenue contribution then side, have completely engagement. what And Great. on Okay. Wanted the to understand My get you. the LendingTree and

the of -- spending of What percentage been engagement you’ve terms or been metric number in adding significant platform? So of are quarter. on the folks time DAU during new MAU that has a you’ve people or added the

Doug Lebda

I’m would we what -- willing are continues a sure I’m quite to going So not. on one not because what overall, is, disclosing penetration. defer But or to I say this we’re LendingTree what make bit My little

-- want step also And link we’ve engaged. is way going It’s that is But who are We better. engagement more is consumer be to My to alone. from to see have profitable the marketing take LendingTree. engagement noticed once somewhat in that it’s large probably just that definitely a our so definitely what to up. willing increase experience very we numbers been those your that our definitely can And people Particularly, accounts somewhat improving. that

to feature personalization, We’re to continuing -- individual want anything on new add you talk And consumer who of sets to helping -- to it. signs a there. add become then inside mass very My do that? every for LendingTree J.D. up

J.D. Moriarty

Sure. Yes.

So we in it in saw improved XX%. MAUs of is quarter not the area -- the

that. -- engagement, It engagement we’re quarterly so a basis. on can so happy And with track the we you track --

users, we active track respect it of terms In retention. to also with

we -- and so And track perhaps the importantly, March. that then obviously most NPS, month and a of was in XX plus

very with happy So we that. were

accounts, feature proactive flat a and we connected that updates, sets, recurring expenses milestone our terms in credit that’s subscriptions, big in more the getting feature So and of set. like Platt for put we’re us

to benefit talked predicting feature lot comes about the cash is there those we with but so we’re year last sets, and that some see a flow, starting of engagement that. so And

Kunal Madhukar

Okay. mortgage. Purchase Great. last one And housekeeping.

under Was revenue. just of it was under of total that that or revenue You XX% LendingTree XX% mentioned XX%. just

Doug Lebda

no, revenue. Mortgage No, Yes. no.

so Home -- out segment, revenue. back So not the but mortgage

relative mortgage your and out of back revenue. -- So equity nonhome to but so percent not --

Okay.

X last less was you quarters. that quarters. And in last so the each to percent X XXor each it give area some the it sense, of was though, of And

XX%. dollar But business, So it absolute as less on was than the stepped basis. meaningfully an percentage it’s it a up overall still of -- mortgage

Operator

Your question Wedel JP with of Melissa from the Morgan. comes line next

Melissa Wedel

of on sizable to a incremental, in more have all, make seems I’m and With just been and couple are side -- not while perhaps you efforts a by an XQ, deserved. like detailed more thinking the new in Congrats thinking the we LendingTree right should -- emphasis components Wanted growth. we’ve for efforts well and those And sort sort that this just about charge in my about just these? of letter there’s as expect Next Next to of the ones place some LendingTree the and enterprise way. that further partnership in guys adding so sure of to And to talked that of investment in related generally.

Doug Lebda

Sure.

I’d think and conquer, of like divide resource have So and as of areas. to of across to in sort said it of up can our organization. not into as break a same kind all basically And prioritization the have sitting I we this, the as to executives before, stuff

that but see you that more and investment investment, come makes will the based for sense the think on I to move. us, will smart very ROIs would specific expect

and process, So very J.D. talked that’s about working very, that well.

where, it somebody an We process Agency for from, then at after saying, that and make." came So like the "Here’s example, it was look that’s Medicare investment and greenlight through that. J.D.? we’d it track to

J.D. Moriarty

Melissa, a has scale My you so in My -- make you’re how advantage would already to market Powered might where recognizing that My needs business, things LendingTree like it are independent gotten of developed. well our for something our by it certain to marketplace focus, And we I instance, just LT. with some decisions of how competitive what now real and like, respect -- you existing Yes. right LendingTree as think Things like we’re different are right? less I developed, is that like LendingTree

You the marketing might orient differently.

going drive dollars? need be focus a that thing. just that. to we to to going -- So to the Does engagement? marketing business, that’s more might says, does going a consumer No, marketplace for mean going care be orientation what actually an might you really You but is really -- look channel take just What efficient not as looking at that more the going to are on necessarily. It’s it’s about? not focus it

to we it’s So time. our are spending Doug’s point, where

to very And the existing that side on that think be the efficient Powered some to consumer relatively we aggregate and that the beneficial we respect margin be experience. in but where are we going backlog that parties have with, and going can can business. and a going We on time. I interested perspective, can can, there a to we to there already that’s Meaning power power folks profile leverage, way, We’re By will more we think upfront company things so huge. just that business. focus, the our investment, like partners Then of are be might focus to with leverage it’s more be monetization. BXB a a we BD don’t that over efficient essentially for of assets. whom could, of partner big from marketplace It’s on of There be a however, pretty

then of that’s what it. the so And I is this And would that focus about all on way think consumer underpinning that does look experience a the and like.

-- and redefining existing be of independent looks experience real, business. could the but what that that mortgage So real the marketplace focus like, needs

bit the it. consumer So, would orientation more product on way is the a describe I

Melissa Wedel

follow-up Okay. segment. Home That’s A the helpful. on really question

I sure slightly in heard off speak I’m Trent heard think I XQ. that not to right. I revenues if coming

and normalize bit? in that margin a also revenue the noting that as peak profile the that is come that assume fair it improve to certainly XQ that in We’re category. should But we off peak segment in XQ

Trent Ziegler

It exactly right. is. Yes, that’s

as managed for we’re little going in we’re as have the just but We a much ultimately, operating operated lower trying that business the where VMD obviously get environment, growth to a be in possible. gain, are door because VMMs in revenue VMB to bit

that as should QX. we in And "Okay, we yes, enjoy assumptions being the down We’ve in about a so made QX. environment profile say, we lower record And probably at we’ll look experienced volumes margin here." -- macro and yes, revenue revenue refi the better than come

Operator

back I to and further no now time. showing LendingTree at turn questions this am Chairman I would to Lebda. conference like the CEO, Doug

Doug Lebda

it a I has was thank was our call the you for is obviously I recap much very the And you better we interesting your Thank company it attention much, obviously a for much XX to great very I is for intense, could it If interest sheet, company. as and that say, well that joining very all would and our continued incredibly think thank last you months, balance our XX for positioned and future. company. came through today, for that stronger,

better off coming with a team. much we’re of think I this

helping we We’ve lot problems each the learned put which be as are and us ourselves. we’ve really how months and scale. work focused the together. the past better continue think We how a any through best of we on to operational other of individuals I a honest learned can and work gnarly ahead candid company in with XX interest team can improvements,

within. a great of day. the look at lifetime thank their can’t good We gives think and that humbling enough It positioned thrill thank in see to we’re we’re you as a to a a very I thing And I where competitors, Thank careers you with you incredibly I able in last forward our doing great is just to in every X the lenders, -- would incredibly able we we shareholders. And then feel get is, that. everybody about sitting to I and months. me people industry. vis-à-vis be well work very, the level at founder from to things the LendingTree and for to talking with it company, of and we our to every the work Have gratifying promote that with look to are people organization. to day, say

Operator

Have your Thank Ladies and day. concludes wonderful for participation. you a gentlemen, conference. this today’s

all disconnect. may You

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