LendingTree (TREE) 27 Feb 232022 Q4 Earnings call transcript

Company Profile

Participants

Andrew Wessel	VP, IR
Douglas Lebda	Chairman and CEO
J.D. Moriarty	COO and President, Marketplace
Scott Peyree	President, Insurance
Trent Ziegler	CFO
Youssef Squali	Truist Securities
Jed Kelly	Oppenheimer & Company
Christopher Kennedy	William Blair
Ryan Tomasello	KBW
John Campbell	Stephens Inc.
Robert Wildhack	Autonomous Research
Melissa Wedel	J.P. Morgan
Michael Grondahl	Northland Securities
James Friedman	Susquehanna International Group

Call transcript

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Operator

Good day and thank you for standing by. Welcome to the LendingTree Fourth Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker’s presentation there will a question-and-answer session. [Operator Instructions]. to Wessel, conference Vice like speaker to now Andrew today, President, would hand over the your I Investor Relations. ahead. go please Andrew,

Andrew Wessel

Thank to morning the good XXXX you joining Michelle, on us financial to results. call LendingTree's discuss everyone morning fourth quarter this and

of today Scott President Peyree, Insurance. and the President J.D. call Chairman CEO; Ziegler, Doug of are On COO; LendingTree's Trent Lebda, and Moriarty, Marketplace and CFO;

a And detailed Relations As the letter on shareholders and a we reminder call, Investor today. to will on that read today's website of posted earlier assume listeners for everyone, purposes our focus will that to we Q&A. have letter

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

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

Douglas Lebda

you and Andrew thank for all joining you Thank today. us

that new card only first into morning. cards morning we reimagining to substantially as cashback Card of approval features user are product holders We And the Card to first wanted excited in of LendingTree expecting be products the is products as members make MyLendingTree introduction focus the also move will account. the first MyLendingTree higher addition this unlocked the class features to who experience. with improved hard with for integrated the TreeQual the and our are Win this partner which this destination planned Card, the of Today to offered on our but customer the We engagement call our believe will leading rates The work their and the log unit I among to and market Win the product X% we of attention best our be of leading customer announced all Win needs. provide this economics results to our Card exclusively such many in we offering LendingTree earning customers product to enhancements for is like work the for innovative to all launch to beyond. was as Win had planned shop combine improve network through in when our at XXXX are MyLendingTree We satisfaction. introduction

budgets When did full these with excellent a job from at fourth of expect reducing six quarter we help This time tremendous normalize all insurance share. margin insurance initiatives for team attributed to In the capture led levels third to this executing market carriers our can carrier rewarded quarter. and to to on insurance costs. insurance traffic improvements points the the division will projects able The and conversion these Moving the increased our initiatives improve same from marketing by to of to be increased are on results. focus spent to which returns a be results. team posted higher partners our customer on from rates. we our Because employees Scott

negative will mortgage a not surprisingly continue very challenging rate on The part interest segment faces to new demand. subdue higher of cycle. impact have to rates the home firm’s loan to inflation Our commitment

Additionally, to less refinancing rise. interest as benefit was because there rates lenders lower seeing are conversion rates

out cash partners cash our helped largest through to Home. bulk This amount sourcing looking to expect who opportunity of we borrowers equity our at transaction with course Of a delay. [indiscernible] the our year by to pivot homeowners are with integration substantial top us of quickly revenue

our market our to partners share is project in by through the in gain financial rates However, believe extent a the we for purchase a positive purchase rates close growth as segment improving to see have year, our within we on application the will we key results. move initiative pickup the this impact

decline higher fourth relentlessly generally our interest half segment they our on A focusing segment revenue. credit reads we're of unit in for stricter revenue, scoring able consumer tightened effect criteria reduces due consumer second saw throughout the XXXX the lower have to our economics. close rates our we on In economy. lenders lenders underwriting quarter and environment Despite grow by which rates the to profit

initiatives in improve include enhancements growth credit we business, our to results consumer forward. card for completing believe going help which Our technology financial will

set are technology implementing of will to better partners lending for business, automate In close we applicant segment rates. small also traffic which our also solutions help to increase data, our financial capture

we our variable designed entirely revenue. based as our built The Additionally, that around fixed manage to outspending available avoid marketing intensely the future operating and expenses. job our to our properly within control. financial is focused this is We model remain it metric for on is outlook costs similarly key it recognize revenue on was opportunity a company

risk support adjusted invest to in currently attractive an customer doing improved return. our see the that We're will growth when key other We initiatives. experience projects we and

quickly of return business to meet leadership remain And happy to of that However, for I'd the a questions. our operator, be mortgage discipline financial to now, unable team. open are for activities our call the segment parts the also day-to-day funding exit decrease to move evidenced commitment a our as by from With will reverse tenant targets fourth key we quarter. will in we

Operator

[Operator Instructions].

Youssef question comes Our first with from Truist. Squali

open. Your line now is

Youssef Squali

you Thank much very good all. and Great. morning

losing question there, just you about little maybe couple what can what you and you that, XXXX? seems credit be that reverse a to planning you're speak reaccelerate Doug, exactly potential language models of of talk impacts obligatory this it then of about me. initiatives in large may business. maybe share kind doing for One, you So a can there, ChatGPT talked on questions the to card about you're on there help bit on to and seeing like yet And like business

or high which but you by level about can impact etcetera, add a expecting maybe so be creation content search side on could So you're a products, how a financial side the good…? the talk that the to demand actually nice potentially both also

Douglas Lebda

ChatGPT?

Youssef Squali

you. thank Yeah,

Douglas Lebda

and if I so got a Sure, got I right, I card AI/ChatGPT correct. that got

TreeQual is more marketplace you we look typically AI ChatGPT every J.D. the hit model. AI although and something there at. we're machine refer the real What so as and I'll chime we're a So access to have underwriting the it's here, on improve of click Card to high high trying credit we learning level on to let internet, what with card lenders and and criteria that using the -- in want card do notes. I'll we out to Win right have rates. both On close that can now, to potentially would With

develops, post lenders need of you phone while rates is lot key long talked product, which consumers to a is we our improve into if dig are with I One we And have calls. making submit a communication initiatives mortgage and to about cycle close that. the that helping of it one with say could AI we address is them But yet. there I have not would a certainly we're the our J.D. consumers, improve lot But on docket see of communications but us as I yet. things that not

J.D. Moriarty

really which the me focus credit on Youssef, is marketplace. card credit question, first Just with card to our let regard

benefit with internally, call important of make easier. on which will our have a efficient We make interacting that load a our for us we It and and partners. in that all tech make now It compliance Lightspeed will is migration platform platform speed partners the more way to for card right the world going faster. credit very thing page us will so

So we're work excited QX. going is on in that

QX. We schedule finish it are probably it and on in sometime with will

talked Now and credit this solution the in only for the card to that's us business the not past. we've about

We paid dependent are too way search. on

other channels. marketing grow to need we so And

of need on get all actually Those got card get to of targets volume two areas it those we're important? more that So to hit CRM our we is if for if progress partners dependent becomes that both us in marketing. we card expanding terms for to good, and in credit us are and and do happy certain specifically the very Because with are thus for Why SEO focus credit one channel. card. credit very expensive we've volume very far in paid targets prohibitively for you

doing what we're that's So in part.

conversion we add ultimately are them important talking typical is that out projected because and driving more approved approval that more XX% right year, something right slower very an It is with but other on and has it integrated call low to consumer converting partners the the we site becoming experience, with think a rates, and a part so volume partners will we we rate. of percentage at about typical -- The been to admittedly teens solution When beginning the our the than track we is redirect delivering of it is pre-approved, a last TreeQual it get our from experience, there. being at partner and rates. click we're it of that continue is

with TreeQual with to conversion, focused to over status we are the that and view the us what with paths we're different work want TreeQual different of ways, improvement what partners learned So definition current all every years, partner. higher the last Partners, an of over that's is found, we what quo. be in we've which for there on

structural look big -- of is And margin what the businesses, so most one call each needs the I'll work of profile. you terms card, in that the it if at our our

that, As performance. share we financial market a our but take market in that we'll does be not able fix to take we hinder share, way think

Douglas Lebda

as primary add J.D. you we have from the And we the yield to -- LendingTree compared domain domain SEO front Compare Cards and on think dip to take you that over I'd thing being will first on the move the a builds to said expect SEO better for content as up you only overtime. LendingTree, traffic performance much SEO and that our from SEO your is in move then name that what

Youssef Squali

you. Thank

Operator

question. for next by stand our Please

Our next Oppenheimer. question Jed from comes with Kelly

line now Your is open.

Jed Kelly

questions. great. Hey for taking Thanks my

you is to your letter come an insurance, gave of reported, of how shareholder to of sort for sort back. carrier’s the of for some at of accelerating. think end it the of like of your spending outlook Judging you -- waiting have kind that gave by you're insurance, competitors Going sort sort I carriers seems

talk around with economics unit expecting? Win recovery can Card? just you can the So you. of the us arc we then about you Thank And should be just the help

Scott Peyree

QX. than at the caution with spending the but recovery, carriers. discussions rest the the early more Yeah, Scott. I'll up. been on going rest certain what it the auto There's general. the insurance in is But is are the hi, the of proceeding first quarter-over-quarter with conversations There's the insurance the on aggressively of team of the carriers we're it the is and of in when Card. I've start there's I innings very segment literally going how lot up. recovery, it and and and to seeing spinner for to then inning carrier There's our the A growth is more pretty good testing the this in like recovery this yeah, call more happening. throw optimistic. conversations, the in insurance, point, rest back states go calling of more first what going to from is is are would large in we're it QX particular one Revenue Win of But of still

the as unit over talking we've business budget focused And the our asking on we've on been on sending clients quality profitability the of practically of been clients of We're instead deliver trying focusing for. traffic. traffic we're which the are the the that and BMD and about, insurance economics to of

still there's about general not very a of in even like aggressive profitability carrier and because some profits, more pedal good job that I think it's that's carriers metal. and doing we're gotten conservative at the about lot very to concerned the just concerned level a

but to XX do I X expect total a full take in board, the to it happening, So, continue. entire is for like back going at yes. the recovery It's be months fully industry to probably

Trent Ziegler

balance scoring that's we upgrade hit economics that Jed, Win I we partners. I'd this I'll way are on that is that with our Card. is, They Trent. credit what the work, on etcetera. doing Hey, the and obviously one guess be say all of sheet risk to the will in the going managing partnership disclosed

financial We is it ongoing this of But as through of originate the every think guess to the will that, car get a it a substantial share bounty differentiated be as and and relates that as forward. obviously for -- value about else will to I that as to as platform But interchange. the are for MyLendingTree it's we will we us and members we the well than continue it first we prop move anything continue our year. engagement positive contributor impact for think many our evolve features of much drive more is and that help

that more So expect to if and as expect I of impact that we near we -- argue see more not it things year than as important, that's piece term. of progress the these would is financial that throughout the important

Douglas Lebda

credit of to I then month in add to referred apply where be economics channel higher a the proposition MyLendingTree card again being that'll normal is separate higher. that part you're unlocked if and Yeah, your think it's financial could MyLendingTree, your MyLendingTree part a that can to you to think -- It actually life. of we unit take of market once we logging thing is it, you're should the be would back going the about MyLendingTree. part conversion And this into industry, help action We to and believe a cash can a X% bounty you as the you seeing really in I only total. rates and which when improve is

Jed Kelly

to Scott's margins follow traffic. above think have mean a I is about VMM I that Insurance up to business higher you're way in XXXX mid the to comments going margins. just right XXs? have did the And segment Thanks. at XX% VMM look that

Scott Peyree

revenue to Yeah, aggressive like talking I everyone's the growing entire more as look when then margins say the When industry back XXXX, the and in, getting high to we and start keep mid you may XXs. would we those standpoint, about would from little starts in playing it But carrier I'm a at the tree the higher of traffic have at at begging get lower and for honestly the on now fruit where isn't it. revenue to right that to and aren't scenarios in lower always carriers lot really highest run you trying you're in quality today's a market margins. margins

to to trying speak. down it throats, force So the we're so not

growth serious high So foresee getting you might mid start forever, top aggressive all mode the if don't like the like XXs or six to that really nine carriers like change, into get I months. next in revenue but that in to

Jed Kelly

Thanks.

Douglas Lebda

commentary, year Scott's on say implied today. based growth our pretty Jed in based on seeing what we're And is I'd guide full revenue modest

the expectation. hold range, in high to those do the throughout the in of Sort kind that our year, that's percent but that mid but can we the assume margins Obviously as evolves XXs. mid-single-digit evolve baseline market of

Jed Kelly

Thank you.

Operator

Please stand by question. for our next

William with Chris Our comes from next Kennedy question Blair.

is line Your open. now

Christopher Kennedy

advertising last forward? year update initiatives going kind give on your of Good what are thank the for you an that and morning questions. and you plans Can your you taking us started

Douglas Lebda

Sure.

extremely metrics. advertising worked last brand across the again the our ran we It all well. So in of elevated direction right to our year

things we're channels One that this returns is multi run. which data doing of that to we moving, allocate quarter attribution, implementing the call the something your uses touch over you marketing we're

they are of at any it where unit and sense. economics So not looking make right significant because brand the now investment we're didn’t

Shannon some do other with Win on do we However, Molly that and we the doing Card put have YouTube and can sites. videos fantastic

to when running much a TV. fall guessing as and happen get we unit on be more more the start that's rates that that going And better returns. to use brand do economics to than interest But little expect of demand I'm bit. it So big and inexpensively will

Christopher Kennedy

then an And taking thanks question. helpful. update allocation very And capital for Okay, on just the your priorities for year? this

Douglas Lebda

thing that acquisitions. more off, Sure, doing so doing things. any I don't on capital can see allocation, one about so other us first just Trent we're talk

satisfaction, as generation, where where products now, maintaining improves on whether all on said as gives really be conversion based we've aimed on And more cash returns pivots working, TreeQual, working the prioritizing cycle conversion a market focused across of key of one we're I at economics earlier are and done make unit we it to summit right improving purchase which customer all rates And inside our months those EBITDA, the and every of against. to improving Win we're our the us post we very, investing three the quarterly to initiatives, and we experience, quarter. that on all move initiative, to then the mortgage initiatives are rates, very Card, willing things are be. flow expect We of costs, planning the

J.D. Moriarty

I that. just will add Yeah, on to

to delevering. But on Doug or an it that the are focus sheet, balance the ways Obviously, sheet. just on on on driving looking opportunistic to our cash are it. all As important focused near we and retire of primary sort relates things at is I term balance of obviously the of debt part hit the some of mean, flows is

Christopher Kennedy

Understood, thank you.

Operator

Please standby next for our question.

question next with from comes KBW. Ryan Our Tomasello

open. Your is line

Ryan Tomasello

the purchase Hi, performance In mortgage understand for everyone, I trough taking thanks questions. shakes products. the think where for to are refi business, trying and core the out investors

Thanks. understand more see how growth? solely business or you runway depressed? remains here, and more maybe on the business thinking thrive side, performance much perhaps if the helpful would for sustainable in become, refi be could we to that Equity level glide to that discuss lower for you significant business, a the a there path and for think an line how moving is sight it type of you're given much has you could on has rates what that stabilize Home high would if how how and of recover about dependent to refi at where environment need And So that's to from be think despite environment structurally it

J.D. Moriarty

been the obviously projection our Oh lot. think are business Obviously, a market go. through where a want making when to and the it point we about lot terms we will hey without have through question. one. the huge for good partners in being, Thanks going be Ryan, on increases, is rate It's a ahead, awful The of an able to we the manage J.D. year

where there focus through going there many of from of rates in and at the is added go was and So went we really capacity all track a is MBA the Direct loan and behavior officer as they one to of opposed that from partners, through refinance officer on data, getting our to of because XXXX refinance we're in partners the that right loan And in the conversion as each just our benefit -- And which we that of a partners. the things environment capacity continue they would watch XXXX. aren't ton And tend what we our counts channel, terms of know, is Consumer need. was like the we XXXX the will now. retail, majority challenging Americans who to in you fundamentally, that

So our assumptions driving are that is purchase. deminimis are focused that why refinance for on all of XXXX so and is we

converted of So were They how our because purchase? off largely around the share off behavior of that of because is to things of to it observed drop that starting and was started second in are money. the to drop purchase they focused where and quarter on drive One we've refinance we could going our it started market partners. make XXXX, the

to actually journey last because That's And share do said, to looked to got ourselves our to we've convert. when and at the has so okay, when regain comes longer purchase hard from a in they site critically, purchase. consumer we year

partners better is a home, they better. know as of them to get the information share convert are and on things home, to make One consumer If to that process. trying do is in closer to that their late will in funnel information that we're a where the closing with we our want that buying

anytime we're So not refi why that that focused assuming come soon. back strategy is -- and our because we're purchase, our fundamentally is does on so that

that ago, have thought our of the that company thrilled the scale by home home with what years could encouraged it I equity we're We lender in don't the And reached. performance reach are many partners anybody equity. has of product. think is adding our been product Two that that

that And of be. getting who had we lenders fact and and it's interested so try on, from cash percentage would to to Historically, convince about we're in used a us just it we buy than Equity. them do Home goes refinance, real still Home talked to volume lesser consumers a the Equity that out

We're the that health dependent not product see Home happy obviously to a environment on the would we're with We the love made good. progress so really where we've an quite Equity of there is as it. And replacement. so

it Equity -- we loan on typical thing or sizes refi. one purchase are Now, Home obviously is focused smaller with than is they

since The so unit our think that our there. which who the Equity, great. the of dialogue in we've been things quickly economics Home of automation having of that closely. And with flip helping lenders is side market, they one lenders can That's on more recently growth is were close watching is, many

of April, with as our rates But want season. pure you for purchase was [ph]. seen beginning we navigate were this purchases, will I jumped can our about had we've navigate lender obviously Equity. we we of home best segment been And We start think to that partners. always have to this in refi. thrilled. will said very market just lift kind us respect I week me week performance be in and then say guide, we're even March assumed since and they last the say it our to mid-January, seven early in we hold we've with now. in weak And of some to prepared And share the do right there's to conservative just a and cycle think to to to trying year. the we've Home then So And

health. to there's remainder not And the it of And, But know a of does think Home, think year. of that's we're sudden refinance. conservative bit with help to for that back respect why because for huge little rates we all a be a some very entirely our that there. XXXX. mostly see Home we're are going the we be you on guide I that encouraged lenders to throughout in when Equity give it's lender going our We pool So of in

Douglas Lebda

And thing the things. J.D. what to couple add on of I'd finer put only just said, point a a

So years behavior, just value coming mortgage looking entire you've sense refinance got up. has ago, refinance thinking gone four $XXX,XXX where the rate for consumer in to that's from about to home you're a your house, consumer benefit doesn't make your

had lenders the business, back, from what correction know. second losses is in So as flip until of wasn't And now the mounted it this was a makes time second side. XXXX they had growth pulled housing literally sense. we're lender XXXX a mortgage we all like Equity a like And lot resurgence you mortgage last seeing and to market of Home the major until we to The until that. a

our It some lenders be As appraisal. Consumer automated, J.D. into require oftentimes are business. complete Direct highly back of can that said, getting doesn't

that reautomated. So gets

your expect to us refinance as entire sense. mortgage refinancing make out that We doesn't -- help

Ryan Tomasello

could Thanks. all the additional throughout that on levers finer would we you considered? to quantify be seriously range perhaps to see in expense have here of side. one trends remove the theoretically a point those more think Thanks, pending costs performance system? you you appreciate plans environment for how what second to And color. me for need start order the XXXX, pull from that of to from put type you And a Can could you also the around then additional

Douglas Lebda

looking going can move a you I that I I'll put but will company oriented a to things talked details you Trent our as give let we I with as Yeah, around. and doubt cycle start tell to some about. continually range, we're project we're quarterly I more at

Trent. are few think at And look hard on taking everything else very then investing are a move and a to “fixed”. that. is the variable that a things we're going needle. And basis on continuous You you

Trent Ziegler

and right, when continue that, and technology Doug advertising, obviously what past the stack. phenomena of workforce Yeah, our last are expenses the beneath we've vast just actions sort optimize you we'll said, XX some of taken obviously, Really, get form reductions months advertising which the the our continuing people majority the well. of look throughout at in But to our as and otherwise. fixed

Doug the going so those move some at And on we body needle sort as others. the that easier said, on, to of have work look sort of But and of than of that invest we things in. initiatives, we the to continue what to the of fund choose we discrete best rate we're kind placing we to hurdle and what the have to raised as and and are

draw to in. to And unit businesses shareholder the to so, as get that and relative choosing the got to tougher, of core invest commentary a some hurdle of continue rate in our we're letter, should economics a raise bit and we've line harder what to

the taking. that approach we're that's so And

Andrew Wessel

the get question, next we Michelle, please? can

Operator

for next question. our standby Please

is comes from John question Campbell your now Stephens, next Our with line open.

John Campbell

good guys, morning. Hey

Douglas Lebda

John. Hey

John Campbell

I other think small the fourth back that credit a was within net. now up implied mean, cards, and year-over-year, we I that's if about Hey, business, of consumer I consumer personal think sharp, loans, out pretty XX%

strengths drove for the thinking how what there that about business other rest the about the curious within consumer year? you're So and of

Douglas Lebda

loans X and what else sorry? Sorry, personal I'm John, consumer

John Campbell

Ex SMBs. personal loans, and credit cards,

a Just ones, just that that's look the growth curious larger XX% other that the strength? businesses at bucket really if I so typically guys implied rate, call results there, kind drove good about of I what mean, you of out,

Douglas Lebda

One, of interest CD business, we've unsurprisingly, there's continued around as areas. deposits rise savings, in the rates. two hood with so the interest kind seen more and rates to Yeah, yields growth in shopping under on checking,

to standpoint, not that of macro huge an scale relative continues but that area from the a to -- that's opportunity. is that see So we be continue

our The services business. credit other in area is

offer subsequent a or form that last little product, grown we So needs. another to them both interest throughout in their been the and in bit repair on for that's those the us personal don't relief or We come credit criteria debt express loans. repair where folks a perhaps in the to area solutions have And meet loan year. of an has based and credit debt relief

John Campbell

a guys VMM a how now guess, saw Okay, margin modeling discontinuing and discussion on that's I and kind secondly, mention or standpoint, mortgage I the segment why strategic helpful. then revenue standpoint, any then impact? first, kind also from And you business, I you of are much of guess, XXXX in from contribute that reverse did

Trent Ziegler

there some that Yeah, we not up stood was and years. And opportunity several declining that to ago, X for give was several that last sense, the million the last doing in some The there regulatory been you years. years John, revenue that environment business supportive. one several is business particularly a over the was has

sort really mover, it's you the raising We're that's where think many trying one to meet about in relative needle value my strategically the we hurdle a about focusing to really it. the quite business. earlier And simplify a comment core rate that are as on of and respects not when drivers. didn't So business

so priorities. just a bigger that's can where business into And focus resources streamline and we

John Campbell

Go J.D. ahead Okay.

Sorry.

J.D. Moriarty

on our natural John, I saying, looking we're okay, mean, will of at our margin but it as partner needle relative in the fixed opportunity financially set. and what's is what this to fixed does costs business, of impact what our in business costs, in just get all not that. what's businesses terms mover, it's And I or the right. burden a do on said doing the then Trent the

hidden impact, a And leverage aspect we're about getting segments, we're associated right or sure cost, is a being that's costs talk we if of business with aligned. things trying not that We're we structure, off delivering cost there those these are closely to big in fixed the a want when them. maximum cut redeploy our to make So costs. a in fixed where our cost

itself, of obviously scrutiny the reversed it's we're indicative impact. a putting into whole it business. so But it's is big in of that not the And

John Campbell

Makes sense. Thanks, guys.

Operator

for Please our stand by next question.

question with Research. Rob next comes Our from Wildhack Autonomous

is Your line now open.

Robert Wildhack

Good morning, guys.

You all and Bigger right TreeQual the a out can called have there landscape competitor really think consumers how paying out you approved. who now? the get you the about share competitive don't rationality of in business picture, different positioning you models, just and credit it whether on competitive a factors some going card space, that side, or now products, and lot competing even on obviously it's

Douglas Lebda

can apologize. question, part -- off. Rob, nearly It's just of you can that I the you killed repeat last

Robert Wildhack

these thinking just Yeah, rationality it that offerings the landscape credit curious all there? in how the card, competitive sorry. really kind Oh, are you're of with out of about different and

J.D. Moriarty

we're coming I the day, it businesses, the you're believe mentioning, around to about their credit are the relative small is it business relative they extension light Karma. competitor the cards our That's, you're they a degree to talk where card. just And That's -- at changed actually when to are that somebody the we they've to obviously, that Credit so the assure would what where end at Sure, card of guarantee of and trying our portfolio the guarantee is competitors, preapproval. of box verbage referring an get assured. to

and us outcome. only One, great not think and are experience. a clicking consumers our a TreeQual? partners, they But why out we it's for being consumer LendingTree our it's we having coming doing XX% pay We for plus card, customer a fine Now, not because approvals. like for that's us chance effectively better on it's great don't denied for experience, to of

started TreeQual from perspective. that So

no for partners get in right. ourselves and though, want if need they Karma, us premise. to can't There's who Credit ultimately, to working volume, point Now, with with our volume deal get others, they NerdWallet,

we So price. reasonable embarking at a we the are strategy them perspective, increase a a can volume from get on marketplace to

opportunities just diversify largely. on are actually TreeQual And that MyLendingTree in the our so to marketing about. experiences going there our to to excited TreeQual we're And channels we to that. base, rely do right, need use is quite then existing

can could consumer a looking they're size of the for looking it the for make a a let's say but a coming looking product, instance, in sense personal given doesn't for for really be loan for we they're loan, and better they So experience we personal volume. a loan, and another opportunity That good a are for to them show think it's would And we be to get consumer need drive card there. that and the for. preapproved

Interestingly, space. to this of the question into card it's a in part the coming our we're small where overall very core business. your Now, is competition

business from margin the That -- So that is improvement. a a any is incrementality is perspective. in

-- in it's us For team. it operates the

us. if great can credit margin see in less time, obviously Perhaps share over from want hold we started we current meaningful market to card. can some even profile, So for for card competitors we meaningful gains who our improve our are that just and which take of

our that’s strategy. So

talked so that because we the Now, because than probably we're we when others, we competition, talk others, more competition about search. than about it more feel dependent on

As improve candid we quite we very where that, about for need today are been our But marketing mix that's we've diversify profound, we as that. the to it card business, and be won't right.

channels. is then of are a product and new a there developing a it. that's to that's migration, Lightspeed tech So a there's aspect that marketing that's strategy. other the the And the There's aspect, there's aspect, aspects TreeQual, number

Douglas Lebda

And you J.D. And that reason the the didn't were late add to because off, like about. credit only approval rate if business. just the we the that we I'd was to card first dynamics talked thing

just did now in an to and better. we're continuing enter we're acquisition with -- However, now, and we're and just make it we it

competitive better and environment, SEO, I we've got another us rates -- Commons light better think us of that's that's because in LightBox. because the in one when at So of one of approval than competitor card

response to focused of being Win head the about with our Our very and Card, that J.D. we on we TreeQual, see it. is competitors talked that to is thing LendingTree. tech Lightspeed target and the get SEO And where want nice to the public, we're work the on

Robert Wildhack

Thanks, that's really helpful.

and it to the commentary I one, for the Home on as had close growth consumer insurance consumer share some margin you're in think on there thinking XXXX? Thanks. at quick relates and and a what qualitative margin Can Just and or and loop we just you XXXX. growth least

Douglas Lebda

baseline we from our standpoint, outlined then kind what saw pretty a mid-single-digits consistent of expectation to mean, the relative sort growth revenue our of we in revenue year. as letter we margin I again, standpoint, and Yeah, assume from last

Operator

Please stand by next for our question.

comes Morgan. J.P. question next Our Wedel from Melissa with

is line open. now Your

Melissa Wedel

asked, consumer the taking today. definitely XQ, touching margin, saw A MyLendingTree on referenced them shareholder morning. following but growth up already for worth organic have And some thought of be there. letter or Good also my lot on I questions it would your from been Thanks pop. that nice

thinking at XQ is a normalized the sustainable as sort something into a given you we products rate we or mix margin more XXXX about run are So across sort run looking rate? that's current mid should XXs a of think of or be

Trent Ziegler

just the high sort mid Melissa, going of unit high Yeah, pieces if harder. lenders the massive the lenders everything that of portfolios sort origination sort in got in in moving you lines personal of and the for as environment business interested that’s growth. loans to The XXs. current economics moving space, rates such The on the margin of health higher, orientation they're incredibly personal unpack with say, their the current us. opposed within I'd and that of the And business is macro are that, are, right, they space, that protecting in you've to

profile. we're have the of a good conscious the of so said, other that big that's areas be And That we seeing driver impact are segment. the to of on margin there Obviously, margins. really where

is that's are are within clearly of an a progress business, businesses we improve just margins them. year. to the other as are not lot margins today. because intended work great margin that for And incredibly an work we're around driver contributor the think the throughout the that Small we big of increasing segment about we consumer, that think us. business high this talked we improves the doing of business that All to card credit But the there

all did last quarter. XX% consumer it we up, in year margins sort year. sum to We fourth think on in so the XX% the margins did of, And I full

those expectations between two XXXX. is for Somewhere our

Melissa Wedel

participating Okay, platform you then share left what I partners guess, in us partner just TreeQual of to really on Thanks, you up follow an with that's the helpful. and sort have Trent. do percentage convert? the of to basis what are able on aggregate portion TreeQual, And are now

Douglas Lebda

cards going the am say single it. of it of intended partners. depending on prime-prime, for a can But offer at percent mid super who us as digit that looking to how in that We're whether right card or as really represent, not area broader is right in I deminimis it's subprime. now. actually the coverage, looking It's we're at prime, terms they partners

how five the partners with array because of TreeQual. match be mentioned excited cards of terms an upgrade working now, form the have cards. pipeline to last to so able time working about fourth getting partners And Right momentum to in up us. as and just of have why quarter partners. work dialogue what of Obviously, over onto with to more they're a we We're work visibility the work the a today. about on to want some want getting want who as the letter, to And year, is with third many there's we of with party all That's direct third They card we of excited network, in of with our TreeQual that that trusted path with partners on for is issuers in we're mail. us. third bringing them party, were

want without is we to third want us partners, to that integrations down went party was a us that and however, some involved. And with easiest path embedded of with all our of the Not of path. that kind why do so that work us way,

to obviously there. takes on get more the time perspective and on outcome us we partner. But good a work technology with And from so sides when a it's that both

healthier And card know that it. experiencing. have that of say in at will this happy incremental year the back partners upgrade, I'd financial happy the has we're card we're -- down and material on itself not look any But personal in of loans. let's revenue business our a XXXX increased, as So dependent this the the about existing as our impact it we our and put on is the results But they're the manifest look partners. way, onboarding road of dialogue guide credit at potentially with TreeQual that we from will It in credit not a We guide we TreeQual. in is way.

Melissa Wedel

Got it? Thank you.

Operator

for standby our Please next question.

Our Northland Capital Markets. next question from Grondahl with Mike comes

now is open. line Your

Michael Grondahl

Hey, I the little thanks wanted into dig strategy to guys. bit. a

one first time rollout products the in will the kind think I vertical year? of And we to come. your Card should you to you've about you how these in the Tree products of course Win be think some you said is put over of the on branded more mentioned the that or trying coming a put product. products each branded new of Tree the name Are

Douglas Lebda

as start well. will then So and I'll think J.D. follow-up I

I've now to it get into do think it's we a but for approved Win product And members. to again, this members people that that the card MyLendingTree, best it anything we so that's is launched in search great in a to talked the also product class you paid why And as and MyLendingTree could branded Card card high to thought for it's to back cards in us back there add. fantastic set marketplace. members it to approved. think our a before the can is product not again so without to be be offering bringing -- us as class, that whatever we MyLendingTree continually wallet on the best of industry. another hadn't we not of opposed to the wanted MyLendingTree, a best We I've to rate about that in a experience consumer. say think we we do having having MyLendingTree and be And and be are dependent in to And think to put would gateway getting would out for as J.D., that clicking you So on have come be is customer drive to always I consumers different a could this single always but marketing we innovative. in expect this that way their so we offerings do want necessarily a MyLendingTree and it. found very the bring with us

J.D. Moriarty

consumer spent thing doing only I jobs year a research last we time add with. lot what consumers is would would Mike financial us on The specific trust of

eight period. a that products we've We've got, approach. And Doug kind to or so multiyear of got over would launch so, expect multiyear it's we a as mentioned,

problem So trying don't and part why somebody the year. really to first -- the what eight LendingTree they're winning is the is the one the theme in place, and to what this expect somebody's to first But adjacency, effectively, came address.

So I for to we product going think have. specifically it's every a area be that vertical don't

most to genuinely out drive is We for think become feature value adjacent relative the engagement. we consumer to add factory, these what roll we and don't We that things want it will want the it to a thing. be really

gathering. And about your thinking product and you'll show accounts. log with But And in score terms what pushing credit we're come if side going And think could other Card, of I about their the we And earlier, us, know back. think use historically to there products if we time. financial about was engagement and here over you you in connect to And we're that consumers our in MyLendingTree your the and talked come in there were other it the access doing on benefit we improve And connect get about information side. accounts. for these you cash you consumer. we're to was obviously are really that potential Win we know behaviors your us you financial other your be saying, off in wasn't with where the will better the for anything to on

resonate that the base, who consumer showed consumers want that we our and with be research to Our would MyLendingTree. with in

behavior. ourselves is Card because we're So good financial which Win access how of the indicative more is with position to trying consumers, of to over time sound products

to we that's that which and often first, being ally, envision Card internally really the be to Win can is you pay want of advocate the talk That's they stack, helping want, consumer the consumers so debts sort about thing. And we digital their We over that debt be. And off address address the start a be consumer. for going for an should time, where of that. where we're

Michael Grondahl

product guys, a of is to legacy and you financial big that pivot to need, sort it, a a when it's I'm understand evolution? a, win. it, to of And you of for just got Got was have banks need, meet trying beginning that might trying a understand more And I'm got compete, we now thanks. direction it kind you hey, new of the or

Douglas Lebda

the in of marketplace also to Yeah, again, know, but separate. think you as as connected so MyLendingTree,

LendingTree, you credit data, is come been in, to a in because you to out have you for free a TreeQual when side do when model expect upgrade score with you us click banks see your So lender comparison get a probably expect stuff bring giving underwriting on integrated can't interesting of we you can you multiple until to in shopping, when months. credit you to fully approved, choice the we've instantly can there. all really And do MyLendingTree, that

we've has the the to lot MyLendingTree a answer. And really really rate spectrum, best given credit features coming. the enough of the the things targeted MyLendingTree is of think just you most journey, we cover at And is so you is, Win your financial got help of exactly an ally exciting aspect, And price. Card approval the it improve improve you the unit broad best and are a economics to what which offers get financial standing to and the lowest

J.D. Moriarty

the perspective, from just about we Mike of degree authentication. is strategy things one And internally a talk marketplace of

in is loans where a delivering mortgage consumer. consumer. That not we're information out is to true Those lot in is cards, deposits, okay. that personal you of true true quick the well. That delivering if highly that as businesses, our an insurance, authenticated not credit not in on are a partners vertical, extent So at and true in look is we're only our really

are talking make can our information delivering how where We consumer We lot business. we spend on of are much to informed type they partners small of that authenticated lending the terms about of in a value in decisions. time

within strategy should marketplace, I businesses, the say. our that's marketplace So

it's think of If more articulating you And been centric. we historically a MyLendingTree, have about Doug the marketing guilty that of channel. for about thinking is strategy MyLendingTree as consumer really very

assured consumers. on pivot, your of side, seeing want the that last work we play where that's while how been would And the beginning how meaningful question you Card, is marketplace a to all partners, and going the may marketplace. is well. strategy part we of what as see, denial. for this year, the oriented opposed outcome, two about TreeQual also to interact. want you're At understand Win The can side about the the that you to on about help terms in a the terms it's is MyLendingTree day have what is to say in a they MyLendingTree. an is, of And a in is of if different towards want I consumer potential but we authentication that how Win very about think is end So Card slightly giving this as of The on change the the

well And two actually and that's in hand could approach actually so strategies quite we that the the I take. think work best hand

Michael Grondahl

helpful. Hey, guys. really it. that explanation Thanks, Got was

Operator

for Please next stand our by question.

next with International comes Group. from Our question Susquehanna Friedman Jamie

now Your open. is line

James Friedman

like in Hi, click segments what looked segments have these realized some environment. so comps, make had to could shareholder you you. difficult X just you Trent, I to the could cadence. year, possibly with easy good assumptions any this in we increasingly Page quarterly specifically, results the for outs call the wanted of got we've we first to Thank on Especially I a double if the year, quarter, ask on cauterize or but our if quarter? regard you on since the have the by letter. could models

Trent Ziegler

I QX guess, of question. A some curve guide of fair guide, consumer, throughout have the many couple to totally on seasonal and QX the fourth the Yeah, in personal card that improvement slowed businesses in year down bit a in QX sure. Obviously, relative those things credit little there. them implies going year. were improved the to quarter. that then QX loans, for see in a things see from to generally to We generally, we full

of we the throughout that's as so year. And driving that's sequential improvement the implied some progress

that's home given summer within big within mortgage our other spring be on business in year. is the couple within the first better increased reliance Home one buying in and to we months than obviously purchase expect that business, season of The the and a particular, clearly in that

Operator

this now remarks. the back I I turn show to like at time. conference no to Doug would further closing for questions

Douglas Lebda

of This very what lose, This company been is before a XXXX brief. this one. tough put that And winning. bulwark financial I twice the also to longer right years this the I in as everybody we characterize in doesn't helped is is to place I the we like want that confident to have our company corrected. I'll and the really know And few over has last you this have can markets through environment. position, discipline have as year we're very, love tell execution. now, company what's a diversification certainly entire in we make

highly fast is working are We company we're hard, and We're confident as office teams new at working lowest in post-COVID done energized. back the trying the all like we're as to can with that of focused, stuff getting very entire team, getting we people market. and a the ways win very, -- together very possible feel competitive the cost we highly to are

back all we're Thank is your marketing get projects with business you the very thank to so support year forward working Our dedicated look and can. brand the much. them we for we and far, throughout key do of to and is and we well. very, go We've on you got best strong, levers working as against the teams to our talked the about you working with going work

Operator

call. today's for This concludes Thank participating. conference you

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