LendingTree (TREE) 2 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Andrew Wessel	Head, Investor Relations
Doug Lebda	Chairman and Chief Executive Officer
J.D. Moriarty	President, Marketplace and Chief Operating Officer
Trent Ziegler	Chief Financial Officer
Scott Peyree	President, Insurance
Youssef Squali	Truist Securities
Jamie Friedman	Equity Research Analyst
John Campbell	Stephens Inc.
Jed Kelly	Oppenheimer & Co
Robert Wildhack	Autonomous Research
Ryan Tomasello	KBW
Cris Kennedy	William Blair
Melissa Wedel	JPMorgan

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you. Good day and thank you for standing by. Welcome to the LendingTree First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. advised conference be recorded. is Please Instructions] that call today’s being [Operator would the Wessel, today, Relations. hand like Head over Investor I to speaker conference now to our of Andrew ahead. go Please

Andrew Wessel

us good to to and LendingTree’s XXXX quarter results. first call Amber Thanks, discuss everyone joining this on morning morning financial the

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

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

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

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

go And with Doug, ahead. please that,

Doug Lebda

priorities. to first operations right-size everyone partners strategic to streamline to to you simplify made several us the and our company today. during joining corporate position and customers These thank more who’s and Andrew, Thanks our were our expense quarter serve base the decisions took actions efficiently. our and We

annual identify tighter has planning a important time, previous with in mindset from more We effort of project empower employees cohesive quarterly have positive teams. in real our It’s been a issues our solve of moving and centerpiece team. this strategic been that working cadence and aspects reinforcing we project sessions. The harnessing the our start-up to to

The to each with communicated the teams organization clear from drive to outlook. project-based made company quarterly are speed leaner are planning entire employees execution improve benefits specific and our financial corporate cross-functional updated our The improved and assigned and of priorities initiative in accountability.

impact exited as Our closing began businesses in lower of Credit this after the quarter the Services, well Ovation we considers forecast April as quarter end. revenue which

of have We partners one has expected an across insurance new states as our future. policy paused also in for the revenue included reduction several foreseeable acquisition largest

simplified decreased adjusted the forecast million it’s range guidance important XXXX has that despite EBITDA our in However, to by reduction leaner. and midpoint, the $X $XXX just million. recognize our revenue made at We’ve it business our

base We on our the will fixed cost generate does operating leverage improve. environment when lower substantial revenue

quarter, half Moving and in second segment have operating that first year. on last margins, first team performance. which Insurance The of division, our year to driven his segment our results. Scott impressive to last XX% the of changes in quarter the XX% posted from the in implemented have again In rose increases

share with subdued positioned insurance market demand economics company demand exceptional partners, carrier Although our year we we to have another expect once the of returns. capture from

for We customers our more of agents captive and customers routing looking local for agency that health policies have our into more resiliency our fulfillment. that pairs insurance, verticals displaying into as specific care with P&C are own leaned new service such our

quarter, revenue the our growth from in Within equity modest generated from last segment, we of producing year. the home Home offering $XX million

origination. slowing have effect. all loans. having for home partners underwriting the conversion Our requirements customers’ equity declined strong their lending helping on In team meet loan set rates partners the across short-term finally purchase improving and our with interest tightening is rates rates Close pace to higher Consumer, Fed be of loan demand while intended appear by also our types the working

and core over The this that as will card is like light to cost expected, the more you expect making reshaped our would brand that speed is efficient our over progresses. platform I experience, credit the company us as trend savings business material have performing in implementation The quarter. the we on year enabling continue our time. the will first run of transition We leave to cost drive message LendingTree to significantly with which our to CompareCards

profitable businesses Our capital, now more in efficiently on actions We’ve for consuming priorities questions. will And team other drive open have happy were our I’d removed operator, refocused and future. resources. that it the our time and growth that low-returning be to key and

Operator

the Truist Securities. will this first Youssef you. Our question Thank conduct we comes At from question-and-answer Instructions] [Operator session. of time, Squali

Youssef Squali

Great. guys me? hear Can you

Doug Lebda

again. Thanks

Youssef Squali

to Excellent. all. Good morning you

guys two please businesses you have you these fiscal maybe closed just the spoke on talk guide and can the that So questions. some for new ‘XX. of One, you impact as QX about, to, maybe

at of apples-to-apples you more is as get growth look to maybe comparison? And a of for you. the three different an kind what for particularly businesses? assumptions businesses, trying growth, Trent, main Just XXXX, you then the question for are Thank assuming second, this the

Trent Ziegler

Trent. those. I is hit can This Yes, of I Youssef. think Thanks, kind Yes. both of

XX% about you gave perspective. in original from around a February think commentary the guide expected said to down we across we be If more top Home we segments, the than line

ability driver to the segment, a equity Home and good on Home is within the little thought reserved around obviously market harder at there. the that’s then contributor worse X than time really there optimism proven compressed and today expected. grow the a solid, bit we is months outlook expectation ago. purchase refi that’s Our to is our and our there but probably be some real continues and We has than that, purchase

this tough think mid-teens we of Keeping type year for about business the said was segment, that year. kind growth mind, last insurance year. As obviously, in initially you a

just marketing we as plans in stretch. So players, a the think all big announced harder. like feel reduce I didn’t getting Obviously, mid-teens some type their insurance ‘XX, seen, much operating was growth into But coming we’ve to of environment is spend.

that. we’re so And reflecting

year. to not at we’re the were in point we for our What I’d perspective, is, the think sort if it expected that insurance down probably recent still that X mid-single I be the do to single-digits. temper optimistic overly do mid in up of be XX% out margin ago, business, our the digits But we we be we developments expect recovery But XX% certainly, expect insurance. expectations from it to from contribution months happy now year-on-year. to up

to ruling of And one will we’ve be decision. mid-single digits business months. to finally, an that’s the actually plans down to biggest credit the within down in over against the bigger repair players the within the to developments this shaken space the industry has sell sitting that the again That’s adverse a months margin the out of us some consumer, X testament announced called couple that that, prior that That’s business. to consumer in here profile work And probably have We relative year. Ovation So kind We guide. swing of have about business. done half factor wind were up. is Obviously, led process that X been to over broader to last But to mid-teens the probably within the of this consumer. the we with today. of improve a within last driver expected up space, then that we that

for our direct a outlets are so we going there out goes on to and to also looking but of for temporarily some cross-sell stream, is that traffic Ovation we in our traditional are the and be missing other through component been sort business other that revenue monetized obviously businesses. of we players that space And where that’s impaired lending under of

I where that declines of our So in sort are and covers the from. outlook coming think terms it new of

Youssef Squali

Thank you. Okay. That’s helpful.

Operator

question Jamie Friedman Research of line [Operator Instructions] is Analyst. Jamie, Equity your Our open. from next comes

Jamie Friedman

morning this always letter Hi. for the thanks, and and shareholder Good as call. during

the that the is shareholder expense level. in the to commented letter, XXXX So structure you back

you. I that check. So Trent, this you referring that about an comment to? Are or wanted thinking what absolute percentage so Or is maybe is on to a basis? basis just for

Trent Ziegler

Yes.

reductions of rating an which the operating QX QX. you’re to XXXX. we of annual on the half to to in absolute in we basis, pretty be basis, impact run by But QX, an going the is So the where million, full close were benefit in year time the dollars the we’ll the not of $XXX on cost and back see get

Jamie Friedman

Got it.

Okay. And then...

Doug Lebda

things levels The XXXX on business reference your realities. that only you we on were it’s costs were thing I’d taking it’s and add very working are what not that underwater is unit to just deliberately that and at projects economics a based is out of as the were some that the then towards. going fact the change new simply We point, necessarily of

of to And keep so adjusting business. demand lender the got reality in you the just to

Jamie Friedman

it I million. in terms J.D., a follow-up And component surprised then, Card Doug, surprised and XX% consumer, just down Okay. if that you bit, $XX to us there, maybe was a of the wonder

at originations this issuers we Are realize look there that So to on gone the market their I some it they’re fine. you’re share? it’s specific complicated have what’s that there possible is that. than when that But more elsewhere, And going drive look way? issuers, losing like

Doug Lebda

Sure.

but You kind the of have quarter just actually the at progressed. contribution in as QX not to Card, look Jamie

Card, I diminished an has of started think more in focus with year origination So certainly they that the somewhat. out

lowest one is contribution is perspective business. for things from margin us, about a of our the we’ve talked this Now big

front One reference try one-third to way able our that of there is and in in for card is quality level it’s were Lightspeed. environment brand. results right the CompareCards faster will with result of letter to will move foot be possible offer beginning was improve efficiency of from us, we’re of we’ll speed into then for is in the dollar things. so in to issuers way marketing that, that we about LendingTree, the And to X/X dramatically the with. to That we experience said the new things creep terms anemic now us. of QX, but reasonably better Having okay? be transition do, and So transition offers probably to done initiatives. It we’re a a two the That’s another the about doing there. platform of that whole traffic not to are as What some the it our of QX that LendingTree hopefully a these on that the begin QX, efficiency,

paid were. approvals, get in and with year we were them internal consumers we pace know of on through what when So ahead keep that the started for they in they issuers, of of budgets – in they the applying of their they And desire clicking well many approvals. get mind, cards, consumer, terms

and course that to environment credit with this correct that for very issuance. us are be assumption that issuers we’ve card it And be credit suddenly an seen just of issuer itself all abate. that’s going be card to in make the changing to So to would aggressive going respect unreasonable in our

question line, Now the has in QX. just Card to do your with top obviously, of

like us we’re the facing taking to in good of That things and news that one it. the steps to lower fix Card now. is for the cost brand. Those moving the transition environment have Lightspeed opportunity We’re right opportunity is The in because QX cost. that

able there more consumer, efficient Card at opportunity right. to are But to just loans that Card, lower businesses loans. sort not that getting we’re a to and other get the We are transition other business. on mostly the closed Within in cost. have make a So there, focused you on side of this personal recognize just we’re paid having

tightening the ripples credit banking throughout obviously, And and and through that that which SVB seen other SMB, started that a Trent in accelerated we’ve in us consumer in in QX. here tighter so credit and for That consumer. QX. vertical. conditions crisis are March that ancillary cross-sell as then And Ovation continues a the contributor in businesses bit points out, with associated big is with And

So the of all in some for the recognize adjustment of top to contributes like the line that kind guidance.

Jamie Friedman

the you context. Okay, for thank

Operator

Instructions] next of John question Stephens comes Inc. Our Campbell from John? [Operator

John Campbell

like the this to your guidance, that XXXX guys, is a for around expected tighten about thank the below you. trying are morning stock thinking that feels showing mean, EBITDA guys level back to like pretty morning the headcount way. reduction, just of new of how I what take levels, but willingness mean then get it’s cost what midpoint just a this beyond about I’m to outlook Good revenue XX% still XXXX. mentioned along there’s you’re we Xx guys you look I EBITDA. be is trough and you stock, On the I a uncertainty the at adjusted maybe Obviously, but taking XXXX at point. a lot the controls If the to market, indicated XX% looks you if sense

So is maybe hangs or if if how situation? incremental of then around of this degree to revenue visions you you guys it saves? of a cost you And of if might could out kind talk of cost have territory saves the maybe acquire kind to much cost just VMM see

Doug Lebda

that So then to I’ll and over hand Trent. start it

So last for looking specifically, be going to the always on one we cost are savings.

one on the that Now comfortable to really, business. see line, thing and the VMD really is the resiliency of pleased I’m

to a I’ll quickly from dealt wait the so on initiatives three the what Trent? of see to two of companies and up and and that economics breath the advertising insurance don’t see I to and of have industry. the significant adjust we need think pulling our we can thing to second and headwinds that. more got comment Personally, previous that lenders next air you then and two this. the comment could things or is we’ve how Trent when marketing hits if times to I go is So one we’ve shape we we with have fact don’t back unit degrade businesses fresh EBITDA strategic your And races On on year, less be and let improvement again. just with the had that. in change that our off facing in we

Trent Ziegler

of have know the Doug don’t facing if every I that a as headwinds. we’re I lot situation in, is real businesses you there, pretty think I to that macro said, mean, Yes. think I whole John. about our one

‘XX. that end. the doing losing. we human money that working preservation. a got profitable And few our a enough business cash on or core a good to initiatives some executing months, we’re I’m of that’s think really or projects, goes we’re X, that’s sort focused. We’ve the bets, businesses can focused. business So we’re right? where the we gotten environment. We’ve focused right we’re calculated my margin into the I of still that to it’s rightsized the capital-intensive positive on resources things, during to our macro and the we’re I out continue XX continue for whether on And cost We’re to this things bit generate the over where right to maintain and where call experience-based business, within potentially structure. little we’re And marginally few still were a place focused flow of capital XX, we and on LendingTree evolve next mean making think customer

John Campbell

reports secondly, then those some obviously, trigger trigger from big bureaus I’ve and creation know an of sale And helpful. That’s just I legislation Okay. are industry standpoint, just credit some the new the leads. the leads. of towards the geared of seen selling actually ending

be those guys an positive you think guys. a personal that’s competitive are offerings But I would band more happening of how and whether across probably for leads those to auto. mortgage maybe if and loans extent maybe you so trigger talk in a to could development

Trent Ziegler

trigger leads pull lender No, not those four let’s to leads matched a a that interestingly, and – right? do pull. when they And goes LendingTree funnel, trigger for LendingTree of have a last the We the you gets advisory partners of and our create in our given through noise a funnel that consumer, comes We part interesting, calling, a same consumer we certainly when glad asked. consent that, credit, the partners, number there year lender soft did and But a trigger the do the summit. the Home Because through effectively November chamber discussion. home is lenders, Because a be lenders, big lot say, of were hard And an and is awareness those calling consumer – somebody of of for Home we council. I’m of summit a Yes. lender John. It’s market. create are leads that okay? to others in echo matched lenders consumer to in etcetera,

being of for. the the absolutely, our thing that And consumer our Anything removes good and business discussed. and improved and for experience, in we’re are removal for we to a see be happy results that a the that very more So curated in all movement turn to would noise consumers.

John Campbell

Thank you. Perfect.

Operator

next question line Jed, is open. your of [Operator & comes Jed Our Co. Instructions] from Kelly Oppenheimer

Jed Kelly

Great. my Hey. Thanks question. taking for

X back board. seeing, are insurance. And the rates inventory to new circling another car where are going have Just state going to on guess, be I to going their the have readjust get months Is through this carriers and it’s improve. we to to

So do on profitable getting in underwrite of policies to able again? the sort sense of handle you have we on auto are any carriers any being terms where

Scott Peyree

quarter I’ll Yes. quarter heading this were I Hi, would by be answer they are first was leaning into there There for the that Scott. Jed, it start which telling to a going you. was in that saying point is are pretty of the started was carrier of before they fourth that quarter, back heavily our at a leaning that third us partners question was or in year, this carriers great. few in. this lot first year

them in of to a lean continue little some And bit.

on number agents. these end inflation out of for car is carriers a sell environment got at we’ve times lease network. local client through be and day, the used how a carriers X significantly. rate indicate well-known continue push specifically a it largest pretty their clicks the the of X It the little prices, to pulled continue inflation calls large bit We And Our increases hard if just affecting did they anything, repair is months back as as things. it large parts, has distributed all of just to is heels were would and to they and probably as to still and a they be But with there.

mentioned have areas, in Doug the we revenue revenue QX other And record local in network all-time like are there, have. QX. had We we an all-time we’re to in so and agent earlier, another record looking certain

there is areas, so premiums high, commissions large now. definitely being So large higher are brokerages, brokerages independent for because

them And leaning so a a of in lot are – little bit. the

but areas the at growth, continue you’re of back the there the So level, of slowly is year end carrier direct market. through coming in the yes, looking probably

Doug Lebda

by but to thing add I said nice the model. types I’d a little by is accentuate thing business of diversified what not bit insurance, only you’re and The Scott just said diversified but only before, that insurance of about you’re also that,

call by big product also So you major lead then that. that’s have and carriers, do and bought click you can your

aren’t You – carriers local you your have your own if your can and there, agents then have in-house you agencies.

that So the help one by a didn’t enabled can have otherwise still if to be do than pulling better insurance would huge unit well customer, just despite big the diversification, economics carrier opponent and business to keep that’s they you that back.

Jed Kelly

the And then pay you just last it. convert question Got of off is quarter. follow-up my some did

is makes the down where you Given cash down the stock sense to price do and hand, it on think price you Thanks. pay that about especially is. how have given debt, if the share paying where opportunity

Trent Ziegler

think happy one, million sheet, we’re on amount the excess I March. execution that maintain million business. end. to quickly Jed. what we balance with of Yes, Obviously, transaction we the mean need a on quarter $XX of at to fair the we million the $XXX is Conservatively, run cash $XX in still

both. it kind think look trading, and monitor will and there, of some cash at continue think of are the term to will those we trading converts it And opportunistically. levels kind will So the we about continue where there and to we to loan is about and on the excess

Jed Kelly

you. Thank

Operator

[Operator Instructions].

Research. with Our comes your Wildhack line from Robert hat open. next question Autonomous is Robert,

Robert Wildhack

said but doesn’t the asked similar of the is depreciation, of generating to a the In to level continue letter, ago, let great. which cover amortization meaningful expect flow, I guys. morning, you you alone couple current question revisit. CapEx cash wanted free Good But a quarters intangibles. of the

know companies are today backed So enough? the can some competition you’re you fact by the spend sure and that big investing who the how parent considering of a competitors do lot, make and

Doug Lebda

definitely and is plans I And we alluded the based CapEx we building the these obviously, cross-functional invest doing depth. executing let that, way a I’ll I’ll there forward, that where in not those on how building product on it of the business. more go know aspect will but with of like projects. lot is things can guys going to we’re new software invest, but teams. on and ROI not of The tech, handle into to financial and in places projects way our the much in And obviously, are expected this, the

works, So is economics priorities. extent And the we’re we have unit many the things on how know. could the that focused the come comes a handful something shelf idea economics threshold. and smaller back now I working the put that either that other a unit will stuff are – be so gone us justify something as on meet or to that you of of or to will down, do do there the to that’s But see new on along something

at. As projects you’re And adjust can we accordingly. you the looking opportunity now know that and it by then in the numbers the

now something Anything working and adjust on not doing more that we those likelihood in seems if shift If to pull CapEx is immediately. and is have can can on higher decisions we something resources stop real So back can make team it, time. or we intangibles. or working, to or

fairly I is flow Trent... think to but equal cash our EBITDA,

Trent Ziegler

higher business. today about of relative product I like the would what call structure that’s it year lower XXXX by the structure, just center-based to guess analytics or cost and been XXXX, that is in the from getting to it the we makeup within how amortization. levels needs than was I things not skew offset cost data engineering the Yes. cover But I like back that That’s businesses. say reference we’ve oriented perspective to depreciation earlier, is toward new haven’t and things and CapEx made and that’s much and our interestingly, thought – cost

we Those standpoint, working at a of just projects starved away projects chip from continue are got feel focused we like we’re list a will on. kind are and those of we resourcing mean that I projects. we’ve to So not –

Robert Wildhack

I there appreciate all color the guys.

I’m to you’re make of context level to of pretty whether safe competitive some is through sure CapEx even at your runs to It’s investment, the the pockets or it’s assume sufficient competitors? Just deep current the stay correctly. P&L in hearing comfortable that

Doug Lebda

you’ll TV realm Yes. that generally advertising, that too as go of see us the pockets, and up. will in back Yes. Because the come values for deeper expected

So there improve I volume. customer start improve will said, marketing product, we and advertising think improvement as you layer to to we experience, our then see as and more our will we I in the investments in drive

Trent Ziegler

it’s your question focuses if anything, on competitors. big competition Rob, interesting, from

that competitors challenging are of quite on now actually day time. focused to who right? through day some One away, who the particularly go are will things we those face vertical competitors that Or cause competitors one periods And like goes those those small. to of a are

landscape so is that the And but forward improve side, businesses other not competitive margin because the the is player, to small actually we on the what certain look our of to ones. ability changes in to big – actually

Robert Wildhack

for the all Thanks color guys.

Operator

[Operator Instructions].

Our Tomasello Ryan next comes at KBW. question from

Ryan Tomasello

everyone. for questions. Thanks Hi taking

Doug Lebda

Hi.

Ryan Tomasello

if of around the you’re initial it’s being but into days, to forecast. willing on still benefits Card, you that on points expected to brand media guys. the Hi, if consumer LendingTree later include specifically, side, a that campaign the engagement that year, can Onto rebranding data the is engagement will elaborate Win this provide? My then and baked and any And early uptake realizing

Doug Lebda

J.D me then and So can in. let chime start

that too and Card, any on of ready to heads down have so stay and to Right It’s yet. will on that tuned. the that we the the do ad nothing extent we’re Card. focused part monetization can either the will into that So it’s or That’s for My And early, My to reason of rebranding launch the advertising LendingTree an and that I’m report there. the the assumed have getting that then not campaign Win LendingTree strategy. which we we also now, right lean Win product is the get right,

J.D. Moriarty

want is out. LendingTree this. those did of alluded roll would consumers thing to how lot only – we to research and I Last as we add My we should products would and year, the Ryan product what a from

it it, eight the got, – so and that’s rollout. year we’ve And queue call will are in a that multiple products

when So talking love rebranding, we don’t we’ve candid we’re about pretty talk about we name is been that the My what LendingTree.

we So we’re name factory. trying consumer. adjacent we’re need ourselves feature first about and really to and with with the to as to the the terms serve rebranding, that talk being the We’ve comfortable talking to LendingTree about products opposed in talked a when came align that way that of spirit which about we’re honoring a having consumer that with

rebranding, recognize giving timing occur, evaluating when So going and now we’re about just we through talk we’re the when you of that right will names.

encourage is premature for So it’s that. spending going a And not some Card like goal. the to not trying when to – really – it facilitated just not aggressive people credit would traditional then LendingTree engagement. But Win be about it’s to the card. launch campaign our by do many really be repeat talk hub your never My account, we’re and they it’s That’s

all Our account. somebody key that that those really into the tie My and goal account products then their to LendingTree is will to give

is are – that opting encouraging I type it, So into early would numbers. terms in wouldn’t the read of any on of be consumers but give the volume you way to it premature

Ryan Tomasello

normalized market bottoming feel that effectively I Great. mortgage in what like more seems just the around be a guess, then in troughed you get of one that next the here over given soon. follow-up anytime just shifts signs on, And shifts wave banks capitalize lot what’s broader here. refi significant bigger of, first Curious there Clearly, quarter looking broadly. follow-up think business mortgage out here but land how a I picture. then there much not thinking you a momentum year in mortgage and from anything do around then to a particularly context mortgage environment, how without business, purchase more, share environment we’re or guess, in away assuming, mortgage just more And with going as happening if to about X or I fundamentals? to return Thanks. the in likely is more could dynamic of on the non-banks. And that given has to Do the mortgage the you’re you’re a guess, here business your to ultimately thinking layering

J.D. Moriarty

XXXX where whether mortgage. obviously to troughing are Listen, see We to among just rates of pre-pandemic partners top levels ago, we our importantly, they partners perhaps we are a we hiring as our loan watch offs relative accounts where we everybody else. Sure. through and unprecedented relative but signs watch loan watch and watch or and year officer we see like because more to then do, ‘XX. saw they And

see And we our of of loan number so partners a officers. diminishing most month-on-month,

If with thereby right. they their products their in, us, provide they about have productivity, loan you think to officers that think the they leads and for how about optimize think how then about you they are partner many LendingTree to with engaging

have value converts, so their more of so officers, right. And our the adds consumer, loan because for shifted for partners it and many partner equity, it to why home for but the importantly,

just are purchase the refi refi. right few not very be normal In a not now cycle, a would benefit because conversion Americans home rates sales So, would as not because there. are are they there chasing chasing from they

partners just a surviving this through a have see there. to are they but not we manage people refinance with In finding home it largely payment, some of equity. there lot cycle to cases, on success so out And refinance is where

our question the are That on long network for your that recognize partners has the shift banks, a they power is going shift are not big other part mortgage been from the And non-bank time. away of Now, banks. originators. who

favor. a got shift though, in stability we have In to to that rates. mortgage very to think is in And so order get just I have first our in trough much

you cycle, You will have have with. a will ever don’t big little get network little a are bit as a give refi really officers better we of do lender loan just little see in have out, you bit pointed to of result. a a a health and little you stability improve our and our bit contending as If rate pullback, bit of environment. like seems to – a a what that’s ever-increasing an And have what the

Trent Ziegler

have to way said today, rates execution would them predominantly you generally as the there for up. very amount no And and is existing gone you except through transaction. the of things through business. the where of that phone, rates lenders our speaking, business model, couple And an handoff itself With have then of a J.D. only to refi like down, will contacting of benefit well environment is lends add to some going in refinance I mortgage, stabilization there that just

not it’s However, enough.

there a engaging guys is them on way talk the and And an is we if at loan acquire about notion before, multi-lender the lenders per experience right call it all innovation, press as not of as whole of acquire because going our conversion money. marketing not give you heavily. offers. pull rates where conversion that now, customers, you low, benefit, direct making isn’t thing But level non-bank acceptable geared they curate me you And because buying and think involve then are that funded is form could a you towards realtors. effectively So, after like makes phone cost you product to hits because heard and experience from no submit on, need almost dependent an our you this is the whole through purchase still back just in that are this buying lot there rate and companies. carry we the and And home leads linking with of

as therefore, much. So we not are advertising

improve break to to way working the that what is cycle your – are we that’s break the And on. So, product.

Ryan Tomasello

for guys. Great. the Thanks color

Operator

question. next our for hold Please

Our at William next comes Blair. Cris question from Kennedy

Cris Kennedy

question. you earnings cost has time, investors the the Good kind think trended Thank how over should When your for how about of market morning. share about your then ultimate power think business? initiatives you your and taking of

Trent Ziegler

macro and backdrop Yes. half This we throughout flat, relatively of stays unpack this is right, Trent, I our basically at Cris. the by calendars the I how think sort mean in mean environment. are back the of if look I year, for you assuming this you Look, starters guidance it year,

where the of in like And the a with in are of approaching is margin When mid-teens that’s that That’s even expand the And in scenario throughout rest relatively there backdrop, variable the little environment. more to so kind right, of bit along this probably pretty progression with kind which line opportunity a margin. the EBITDA cost a and from candidly, macro half of in revenue step up you tepid structure flat seasonality. there down kind assumes the both back year, environment, get terms business top where we belongs one. marketing line, revenue to the a year favorable of of of

our of and structure, of back does making the the business, in short macro. call on circling from enable macro a are here think what agnostic I goes to question year, of earlier, us what margins focused right, again, will John’s to bets in on rightsizing on that so cost grow few like sort the preserving core we a next placing And

is reason a profile. why no get margin to back EBITDA there can’t So, high-teens we type mid-teens,

Doug Lebda

And share sure you at power, were really and a would the good thing the a almost certainly can it company. we I well. on us. can That’s then $XXX am was dependent have when working, X guess back, Yes. is offline towards And I were the nice talked around EBITDA I earnings and about If on our only twice is was the and think and for and right. when though, LendingTree companies of power years able continue or And the ultimate years stock all high. now you we insurance were I economics that business. it only much I leverage thing saw LendingTree to as lenders years, we it not building, bigger future the add unit building have brand pull earnings brands, would really, ago to were back marketing was and But was as we X say because pull grow acceptable returns, online we I to leverage our

conversion earnings to have step-change rates ultimate in leap our a power, the make of we core products. our For

about speed. about heard talked has Trent – You us light have talk Ziegler

crazy, we our that to I the I about control by get great we say, way, us projects parallel heard have build of product happier. And we will that the experience destiny would think the done. much our talk make can new it’s a in if You because lenders like have convert And insurance. needs and those done, things is, that

resources happened there has in what are and at the similar to working are plug following playbook and certain not over strong and certain several a the look you been staying is insurance initiatives at things part very past LendingTree. years, very do if pull or something specific when business somewhere has to So, to not do things put we of that else, the

Cris Kennedy

that. appreciate update a and taking how questions. Really quick going. Great. your are then And for just my initiatives on TreeQual Thanks

J.D. Moriarty

news would I guess new to no I TreeQual, partners. with say Sure. regard

learning, by. However, partners are what telling and encouraged are we what are us pipeline of they and we

So, who a with we big direct have bank world desire to us a in way. subprime actually both work partners then the and in more partners shown have

consumer the along those One of a year it diminishes throughout that sending with the between kind limitations diagram Venn obviously prequalified and budgets mail current are of direct is mail LendingTree direct of My the TreeQual opportunities issuers us that. is who is base the our in to on our dependent solution who our and to a go diminish, send to. And as notification for

it for the not solution so will that have but partners, works solution. we be the And current some only

a We for now. quarters have couple attained of that

we so to thrilled those and be in are ourselves involve working between APIs on that And and certain are we partners, solutions of our conversations.

the orientation. that business convinced that than in something ever future more is are more is We of card the TreeQual

coming approval it. think carries to mean so why experience, soon that a want rates where they the track. our experience. consumer inefficiency we that we click CompareCards, to this not that’s to is are way marketing right conversion that not is us, perspective, is driving it in to We then spend we in the a into This into rates a the that in where like something partners. great our XX%, the the our experience. that out are consumer the to margins and rate does. And put in consumers the on environment, in card a is LendingTree to this right. are right get businesses. approval with of marketing I of on more all is current in And come do frustration approved bunch partner a and The And They low-teens right on respect, be be scenario partner it in of card We dollars, all TreeQual. we that and will send

we the we some direct approach around longer because gradual – take a we going kind longer opposed It’s taken to take it a big opportunity that identified going we ago. happy with are have as systems are and headed. And learning so of building just that’s are to mail that where couple of we because actually years current it’s the to

to bad news and there. are is is And news we track. right news contribute bad good The is much there So, year. good it’s going this think news on not the we

Trent Ziegler

we LightBox might you a where would of standpoint, initiative. clock – issues. tech underwriting resources. you Commons the the of is take that back, consume you about host thing is doesn’t if of card other a criteria all [ph] add a I only the resourcing number talked LightBox I criteria, And ton from to And have credit

issuers So, approach. not knew that we did like

hitting and by to be approach said, offers able take I So, J.D. real has direct offer mail this their think list. its And as we that to tried up limitations.

with you to click now now tie individual into leakage issuers that when individual is of have to don’t their system taking out. being we so work And rates the so that with XX% approval you XX%, approach work directly have are to approval card

of So, that’s TreeQual. the legacy

with model now of we to gripped well. challenge in and we as major now all you issued have but institutions got – the fit – I financial in original the side model the this tech new would think is

hope taking longer that it just So, a It’s makes like. we hold for. out that we little it’s still but would slower, something than

Cris Kennedy

questions. my taking for Thanks Great.

Operator

our for Please next hold question.

question from at JPMorgan. Melissa next comes Our Wedel

Melissa Wedel

Good morning. Thanks for taking my questions.

had focus side sounds on First, probably weeks number have bit against you But am cuts ago, of make? projects because balanced curious sort that seeing to you delayed are timeline, these a it a the given rollout a like cuts of a on workforce I the of of projects. on announced some delayed if that’s somewhat narrower the you of timeline any few even little

Trent Ziegler

us So, faster. anything, making if you, thank this is

they have initiative product but then who to a they to trying somebody of an you alluded number So, that a times, instead and a got prayer they process it say of hand it, imagine it it off and – we designs and have this it new hand I have works. that to launch execute basically, idea, builds somebody off hope who somebody the

lay a way laid by out that got everybody executive marketing, now out And of were we teams They by them we because with with I missing we of made the they basically based quarter, we like HR the am run which on startup. have an have are got things and the an mini clear from And start-ups. and little do sponsor, pace lot pace that we few, data, weren’t OKRs cross-functional a satisfied a have have like of person, – then We they got probably advancements in way and so they the change month. finance or they are doing it. have delivery the engineering, person,

as part the of of so did we part So, rift. as – all that

teams. you hundred And in, tech a I let for situation for product home or example, people those else, had unfortunately, and looked we and imagine on then got first several will an everybody just staffed teams, we go. a dedicated where for to the that people use I we So, working people needed

think energy pretty that I have while, seen I being a happened that’s like all very, the after enthusiastically. particularly that office. haven’t are are a been as say am and sad how here typical the week I are, was the together that back renewed just slower I productively not would and it say that, there fired excited by have working we The faster, of works. people these because will But way up in and to And only so rift encouraged week I And teams after very people we vigor appropriately. got And make partially them get would a very us thing definitely. a you remote.

good about And stuff. I feel that, that so really all

Melissa Wedel

acknowledge tough actions And are I there. I very these context through. – do appreciate it’s to go the always always a very

if a the could bit that pivot follow-up So, sheet. I definitely little as question, appreciate point. guess a balance I to

role, curious guys the am your been running do and way there your into about fit they longer be another term refine still making you a what you as in see strategic equity opportunistic might how companies. You investments rightsizing Thanks. play promising it, strategic or and past use I investments approach sort related this those as have business Do pretty to capital? of goals? to that

J.D. Moriarty

the it’s just the going around But it to suffice it Trent us and we to at Melissa, gratified process business, very focus take in and of flow as are things allocation core on on actually we simplification to the what J.D. incredibly people I by to want our to business. and speak the We are will our capital trying piece. looking let high. will money environment, keep and remain bar what’s the say, is to I in raise for, in this but

So, that not from right are our list on high is away now. very core investments equity the

improving that’s margins, people, debt. talking our time spending to improving are on repaying it. business, our flow and our we focused simplifying We cash now, but are Right about our

terribly the that So, core piece is to of active to capital it of piece be the speak in Trent don’t the can allocation expect it. But near-term.

Melissa Wedel

is forward. towards new of to some debt? referring investments to monetize J.D., I done, potentially have have redeploy question, I there my you opportunity the should already wasn’t you Thanks. apologize. the I an that apologize. already to clarify made Could more what meant I I going investments

J.D. Moriarty

Yes.

to one year were always ago. our some investments come said. We relative as there investment. would are certainly our everything consider us it that, with to monetize just of we opportunities the If to do I a Stash not do Those that of saw did You easy opportunity by.

path, You so. what own company the be through in going conscious have of is to their

Trent Ziegler

actually if them, J.D. had them. on together. at if not put the for started when least And is in there relationship, might Yes. we That obviously, Stash. don’t valuations is always are we broke existing And made that of is the somebody was some hearing. If companies investments, with many to hopes which there we open to I there break. particularly is have strategic a bids the big that two agree And one,

So, are But are and markets can. we now, for ways to that people into. others things will such look horns we their monetize if venture pulling the always right

Melissa Wedel

you. Thank

Operator

would Lebda now remarks. to it for Doug like turn I closing back to

Doug Lebda

you and thank here. very Thank for much everybody being you

subside. ourselves to much focus us, businesses to in this be better every a a frustrating when for the While position our place is headwinds in for our is quarter day

fast. are We acting

We very decisions. making disciplined are

And quarter. we forward We we us to for shareholders to very think are to the all willingness future, you on thank that, be reporting focusing your projects. and LendingTree. all you for high-impact well positions in look fewer of And next

Operator

does This program. for you participation the Thank your today’s conclude conference. in

may You disconnect. now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.