LendingTree (TREE) 27 Jul 232023 Q2 Earnings call transcript

Company Profile

Participants

Andrew Wessel	Head of Investor Relations
Doug Lebda	Chairman and Chief Executive Officer
Scott Peyree	Chief Operating Officer and President of Marketplace Businesses
Trent Ziegler	Chief Financial Officer
Ryan Tomasello	KBW
Jed Kelly	Oppenheimer & Company
Youssef Squali	Truist Securities
John Campbell	Stephens Incorporated
Melissa Wedel	JPMorgan
Chris Kennedy	William Blair
Rob Wildhack	Autonomous
Mike Grondahl	Northland

Call transcript

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

Operator

Good day, and thank you for standing by. And welcome to the LendingTree Conference Call. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

to Wessel, conference Head like speaker to now Andrew today, of would hand over the your I Investor Relations. ahead. go Please

Andrew Wessel

Thanks, joining everyone discuss XXXX morning the Results. Good Financial to Quarter LendingTree’s us call Second operator. on to

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

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

subject call expressed to performance. risks everyone future may today. LendingTree’s and the views hand I could and I call, LendingTree’s remarks, discuss for Any remind forward-looking Before materially uncertainties, during we to today’s from results over the are actual Doug statements for his differ that expectations that make we

filed periodic all SEC. Many in described but risks our are not we with the face of reports the

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

please that, go with Doug, And ahead.

Doug Lebda

joining Andrew, us Thank everyone you, and you, thank today. for

EBITDA are ahead margin, quarter which We of in was our of $XX in generating million adjusted well second the a XX% forecast.

insurance, Our outperformance was our with combined and focus performance strong laser managing segment consumer due expenses. to in on operating margin

meet three VMD remains all operating team’s challenging of environment allowed on revenue across forecast. efficiency our segments, the to our improving Although work us our

longer lending cost loan industries, reduce were of several for credit their markets decline, mortgage no to broadly originators As sustainable. had that across our bids in the banking to many tightened progressed, demand were levels funded as second and home, the reached per causing forced lending partners quarter

to we’re our – to and business we work home will premium small further impacts auto with with tightened approval as budgets The we’re work broadly their causing we customers marketing rates. insurance decrease decline. and inflationary rates further continuing criteria require lenders their to lending for carriers increases Personal

into our headwinds revenue The That’s into baked prove continued is these macroeconomic the temporary. financial degradation we’re This this July outlook is morning. bad that news. should good providing and news updated

is We’re that of the financial to nearing Fed with the rates. pace continues its signaling higher end it’s to encouraged tighten of interest slow. inflation conditions The campaign

our healthy market is unemployment historically short-term volatility We to a labor capital and markets lenders that uncertainty for also economic with low key customers recognize with expand the component want relationships subside.

we’re changes have to We facing. made challenges the adapt – we faced to have

improving capture our focused management our team We’ve revenue incremental to while expense profile.

our key We a have potential for and as result. identified product savings addition improved function – additional have areas

initiative. our data For taken example, has Scott CTO over Totman, our personally

We’ve helped despite discipline and speed historically. third In back the focused has has culture headwinds facing. also making management we’ve cost people identifying us that made and team – incremental back the entrepreneurial has decision of which the brought quarter, us on office, to brought areas a various the our maintaining such revenue reinforce that growth successful been company the

rebranded to and economics. unit thus and on customer continue engagement the improving re-imagine drive My our release LendingTree and higher experience customers, to our going We’re rates, conversion with platform higher more working

operating like helped years, environment three at his to turning lead had we’re at I has seven over very the in for difficult acquisitions call which comments, Moriarty us have solidly helped He profitable completing Before Scott despite strategy, the our his that facing. for he diversification to would J.D. the impact time remain thank LendingTree.

could more lending I Scott assume our to for of businesses. be his excited not responsibilities leading additional marketplace

Founder to multiple him. one. cycles, exemplary and also current including His performance, QuoteWizard will teams of marketing through has the and sales President directly the Our report been

of spirit inspirational operator, exceptional the entrepreneurial lending. He’s an proven to be and leader, embodies truly

are the positive forward. on forward own We our to impact to have moving he’s Scott? going business looking

Scott Peyree

Appreciate it. Doug. Thanks,

really I’d the off, looking last forward taking to responsibilities these a real two on impact the into the of number all quality weeks take marketplace the dive to businesses, of opportunities and spent like components providing deep the overall and expanded the I’m excited both to I’m in to core that to say I’ve believe the I that near-term business. say that, organization. excited and First people a the of exist larger

the LendingTree growing I LendingTree. will – the of on efficiency be focused of businesses operational fully improving core and business

First be people developing selling a symmetry people critically more closely cohesive its the sales important product the as off, I for build very to to product. working want the teams the really between marketing the and with

quality insurance, to are consumers, of those we’ve units. at already company our dime we’ll in on of highest focusing that customers fully revenue and traffic every headwinds focusing quality, history. focusing intent that seen of consumers. we VMM all on QuoteWizard highest constraints, due budget the Similar providing from instead even to industry, the driving believe can in do on highest the business our highest the our currently on monetizing across be we’re around client efforts the then as in margins I Board macro

some insurance, of impactful In I’m as most VMD a are believer on having the things those get accomplishing to focus big year-over-year-over number a that we’re quickly me to on small the towards lower those items and resources we a focusing doing you of numbers. becoming see actively are significantly already our what a some wins can It’s in clear to those maniacal more and actually revenue business. Board. in are the things items

cetera, velocity on focus into focusing on relentless projects, opportunities assumptions, turning projects held et a long of cetera. of understanding decision the before committing et sizes have resources, will operational challenging small making, big efficiency, we Finally,

forward, will an We you. have offensive Thank our a on productivity. big have going stance aggressive which will impact

Doug Lebda

open I’d questions. to now, for the And operator, call be happy

Operator

you. Thank Great. Thank you.

start comes session. KBW. question-and-answer ahead. We from the now first go Instructions] question [Operator Ryan will Our from Please

Ryan Tomasello

thinking given navigating Do the you you taking for you feel the cash Clearly that? that maybe about revenue additional expense support inevitably EBITDA year. maturities, questions. the way? convert I are there you revenue the the hope improves, the of your Thanks can flow pull for of that could if the on more and provide side, everyone. free And business are morning, addressing on detail could the goes the importance is different next in environment scenario that upcoming a levers the bit like Good current guess but options environment the go current doesn’t this needed profile

Doug Lebda

conversations up very, And number on. very then I’ll you we the and are something Trent we internally. give that open Obviously, focused had a broadly of is let this details. have

we answer a that don’t know of of how talk yes. number are we exploring. to levers options the to details but I of much other is extent have about, the those We want

We that talked certainly make that changes do can I’ve there. – investments product have they things if about you fruit, if do bear discretionary not

do. initiative data are you levers now – to they’re business. can initiatives balance we there investment cost into want yes, So maintain customer the core few experience other because around small a think Right between we a investment focused, of

at on in we very, would refinancing Trent. to incredibly to But I say, maturity some judicious that. focused it that it But suffice with be hope time, and very are Go very, we’re way. the ahead, same

Trent Ziegler

it think I Doug well. covered mean, I Yes.

it. on focused laser obviously We’re

We’re available bunch alternative of options exploring to us. a

We’ve quarters left the good that before fact I eight before have four think comes quarters it current. maturity the sauce there’s is – some matures. got actually that news in we we left take

weighing And should little so business. better, to the the to relative bit performance us of we’re a all improve. performance options options the of our available Obviously get

there’s to some good provide reason that that more some have believe could some a our we a we businesses think insurance little upside. to I year, reason bit as of And in believe consumer bit little we the get next stability around the into macro, backdrop should some as head turn certainty

And so performance all weighing of business. the to relative those the we’re alternatives

Doug Lebda

an all is environment – and the thing economics volume – only sharper your we’ve it’s marketing this the sharper cost go how that the in want of side, the the particularly the has lenders like union add to revenue and the willing And gone on pay on wide coverage amount I’d cover to they’re where and or sharper gotten Yes. the in insurance. whether price of negative as side of if

about tailwind that through a increase talked the get when business side. you sort whether The margin increases some conversion and bringing to improvement, margin on the to the way of stick. other expanding just lenders rate Scott a in And lending product side, any profile that it’s it’s whether demand tends

our people his improving but well. the have So be we’re to that are lend financial laser, want so going that to working us, while as obviously to Trent’s financial to sometime on many focused also laser we profile in next are money quarters on options to going

Ryan Tomasello

needle it annualized. like I Appreciate revised end guess math $XX on million kind at you’d that today? on rate think second call the EBITDA that are the the out I the relative the for Thanks. EBITDA round to million that implies in around of half And implied low our as here half guess, an of guide the And stand it range variables looks I that $XX of as should the the there $XX that to million guide second annualized guidance, about like run move the we power XQ $XX EBITDA basis. could is guidance million looks things specifically? to key by numbers color. – business all

Trent Ziegler

revenue We’ve be as to a relative that are higher, the would calling to anybody equity obviously consumers. we’re the mortgage and challenges starting less years. those that’s environment in strength – that’s we’re go of what’s guess worst a that’s more is talked that the real, given and a more I little within attractive probably relative for home be to Well, around seeing like headlines rates XX continue out to bit surprise not is about becoming we’re source challenging

a show already as a of is, rest outlook sort the I to to What a of beaten revenue And forecasting think similar does seasonally a period our where are reasons QX. seasonal lot us. always right. little for up is in bit, year. why so uncertainty a little up are the a effect in we much that is pull would say baseline how we’ve much And year slower bit I – is there’s declines QX the there for down there of seasonal had of

then through the we’re the and with conservative so regard rest to the fourth trends in a of year, quarter taking forecasting particular. And certainly those stance

Doug Lebda

normal. do like just that are and where quarter talked just I way like, call the lenders they it it same terms, It’s fairly in that see we The us, been, permanent. some bit, a from is bid not literally lenders believe pullbacks about, pass to clearly work. product don’t has like I do but on Google we point historically the just doesn’t the a seeing that market. Q add with we think It’s Yes. of not institutionalized buyers as solid we you’re QX not Search thing not our of there. won’t as so It’s the aren’t profitability, on little

pull people, seasonal take industry, in we our they’re that that one back general speaking really thing a feel – said to on. thinking QX. some in they not is is Trent seasonal comfort they of like it other doing And competitors. they QX, about or last QX that financial and when are in then consumers what services as generally The then vis-à-vis with turn in in about us downturn. think the Typically about places off we is we’re We lenders talk

as wouldn’t ongoing – rate. I a no, take So as this the run

Trent Ziegler

is that probably to as model is to rate question baseline better – QX QX of into at I than is, year. answer it you kind a as QX run use than think how Short a you next your better Yes. baseline look

Ryan Tomasello

questions. Thanks Great. the taking for

Operator

Okay.

next up queue the me Let question.

Jed from Oppenheimer comes Our Kelly from question Company. next & the

Jed Kelly

taking Hey, Hey, my thanks Great. great. for question.

is Just should continue this then on as there’s a marketing business. And segment just at in seeing marketplaces this the carriers that from on few participate we the you’re back the segment, in insurance Scott, of quite insurance margin profile looking of expect the general, demand depressed? circling to –

you. happening you see some how going continues going can get be touch out? them of Or affect survive to the consolidation do your of on to of Thank think Just some to industry? in these type all you pushed this as you able headwinds competitors? Are are to

Scott Peyree

Yes. the the like on mentioned because remain they margins. the our In competitors Thanks, focusing compressed Jed. just their just honestly, on average to budgets we’re market, start expect highest intent would – advertising have, consumers quality, margins Yes. the our is I’ll with our I clients for very highest high suppressed. with earlier, and we limited

historically with direct they’re Our places any clients, lot they of spending money like do. not directly a

our spreading spend focusing, So the and that we’re we’re out focusing traffic, the our butter, area. like in we’re out, like right being spend not monetization like

to expect So good. stay very our margins we would

going might coming them getting in competitive. back, really compressed coming to said, as then dollars which But well-positioned Now, be when we bit early a be that margins which back start the the think VMD for budgets that start significantly, conscientious more little about do marketplaces at XXXX, will back very total up coming budgets expect start will get when in I the start it XXXX.

affiliates Now kind be clog your out then final There’s That marketplaces, really of would don’t almost guys market up marketing you SCM a as yes, maybe [ph] this. number long known and that hard for competitors. short is well example. start do marketplaces a there of with that players I say into kind hit leads I the been question survive them a of – aren’t of number have will smaller And little of bit. story the there, exited some out the go like that of have the marketplaces – those the but – that and

if ever back into don’t they’ll I those come marketplaces. know

some just disappear. them So of will

if marketing it. into create for do get going the screaming getting company. get look of don’t we Some of of next these bigger out I included to XXXX ourselves are scenario the downturn, absolute a But know the big consolidated out looking which without think players, guys marketplace, the fewer be of lot does in performance when some actively Goldilocks any year, deal a any of them to into to might buy an to players a similar I there’s players.

Jed Kelly

stabilizing confidence profitability profitability Scott, that gives control? it as going their looking a what underwriting carriers chain follow-up, that to at? interest – team the just then And the is get stabilizing, you are Is rates under supply

Scott Peyree

rates interest inflation. as it the insurance not That’s problems. is as Insurance is much company’s

has at XX insurance right industry whatnot how it because than positive come said, for normalize going that of down. rate the and bit but inflation keep and is cool it been as inflation’s need now publicizing the it higher cost still and prices, to is past the they to quite auto they their well so been used CPI a of signs, not increases car And all starting higher, able have even what and the is is down car overall months, and for been and repairs inflation repairs, car to there pace starting

to and they where So can’t to insurance that in to up the is rate happening. the rate now industry starting inflation Were catch equation increases change. increases, stabilize the keep inflation car started

So lines combined a sooner or scenario. those ratio They later, back profitable get to will will cross.

of they when that their bringing And the on really so the policies confidence XXXX feeling And good end they’re stabilizing. they’re so the on with by profitable then these big XXXX. level, spot really based quick. But switched inflation carriers cycle the is – are budget on a big XXXX and factor into lot they’re get going of can that hope then the driving you feeling budgets reset policies they’re the bringing is that they to all aggressive

Doug Lebda

work. lenders. and not talking this same number meeting, Yes, varies large the to to also do we – we of carriers, the you going the were states that a to at the Insurance about point in our about that this and money, going they’re originate sure, state Scott make Board not talking things it for of yesterday hit combined – yesterday by thing see example, state for ratio, market California, that your but were that’s we’re state-by-state if with policy they’re go

we to rates sharper be And – we’re feel so when much be to and going are company a both like ready intertwined, stabilizes, roll. inflation those and stabilize with

Jed Kelly

Thank you.

Operator

Please you. standby. Thank

Youssef Our next question comes Truist from ahead. go Squali from Securities. Please

Youssef Squali

All right, you Thank taking morning, guys. for good question. the

one quick Trent. for So one maybe and for a Doug

what kind what that But indicators coming and or of obviously, see what into you past of can beyond operating are against job segment, you do Doug, TREE XXXX cost second anybody what So of back for now, you’ve kind looking of kind first? knowing year, year looking factors gating Trent, sorry, right the today efficiencies segments the that looking And a efficiency into they’re And tough they’re you kind of know top or do much of how at you revenues shown the that next then good the line. as operating maintain that on turnaround. you’re pretty watching back? think come maybe half

Doug Lebda

think in order, I’ll see take say, the I Insurance back would come this first, first. I you’ll

higher think you’ll I about covered. are of I for the think also companies appropriately Consumer underwrite contribution. of able third. think of many the opportunities the most business order directly into of second. mind it, most got selling or in you – profit back correspondent That’s underwrite personal you’ll biggest capital being – and And Home markets. probably see fact simply that them come And probably insurance loan insurance The in rates way, can well Consumer, a revenue marketplace so are as think to are back either I pretty they get come by or lenders and much their those see the funds as the that lenders keep profitably. lenders that

markets to is Fed know doing, what going we So the tighter, hurt which that’s the capital don’t there. are

stepped and given kind it market. high at purchase buyers really in each staring and be And for that other what air got selling Home sense it buying and the refinancing And but hose in rates that make snaps time always of sellers market, home the But would you’ve anybody. to that doesn’t with has obviously arrows capital right then back. on bounces that. The business, market time us, now, from is not

important, from the I – to the trying the conversion standpoint which us, experience, whole Consumer I us, then all And in they’re Home. is I an and think too. really would the of but say I improve that wanted before, to and Insurance, that this of which partnerships, then business one if do won’t back. like and share know business it’s right gaining with do the now, just that we’re rate, our underlying every we competitors. versus it’s good say of or those, telling model lenders That’s thing makes I monitor, consumer profitable, is feel as is be us said share other thing really of economic our And perfect I and improves they’ll maintaining efficacy

Trent Ziegler

Youssef, mean, Yes. operating what many we’ve then steps efficiency XX the simplify And taken the respects. to months seen on over to is, think point, – of XX I I the a in we’ve last lot business six

As as into more I candidly, not to that I have if we a into considerably going more But dial and and year, opportunity leaning and right? need I we look don’t situation of earlier, – there’s fewer at up getting next Doug the could better choose materially things, continue efficient, already against operating comes revenue on focused next revenue That we no, back we’re mean, focused faster see as out still staff backdrop. to OpEx discretionary on we’ve and And looking to as investment the year. warranted. result growing think right? so noted like all our some on, back a seen

Doug Lebda

fewer you it responsible company the three set how they’re and We’ve then five the So mentioned in going most in I highly the are much three November, companies beginning I’ll January, irrelevant. to OKRs made probably change you months. out to comment, the do deliver quarter, on of is might just which we is a a we did tell sure at quarterly to make goals February environment, and in that by the do everybody with – to moved on you the that cycle a year, in the pretty next for last our in that that we changing things points – you product. internally, wonk one

to say, brought By make there. – pivot initiatives, here. quarterly new enables to of on ship look enables at was behind, well to But right, this us working, one’s of all down a we’ve sharper made over The one’s changes that This double a cycle not. one okay, each like, too. of lot the as our also management over market’s us one’s personnel way, us lot and let’s that changed

So make us teams individualized and focused lot their it’s that that nimble doing enabled decisions. can with are more be much we’re to cross-functional all a more

getting So was it. just as – goes Scott A faster. to lot all alluding that into of

operations We’re and really, really company. trying at to improve the way do this we

Youssef Squali

and you Thank Great. good luck.

Operator

stand Please you. by. Thank

comes question John from next Stephens Please Our Incorporated. Campbell go from ahead.

John Campbell

guys, good morning. Hey

Doug Lebda

John. morning, Good

John Campbell

belief Trent, business in you’ve margins. the you possibly EBITDA and Hey, return XX% to of type can the the to or that back I past, – high teens talked think kind

maybe think growth margin you’re half. back about Trent, I need going year. And levels? how you’ve going next those be can You the sure maybe guys in you back better the to in if type of like for any, you think maybe said if what the might in now margin costs of steep to that that line, target degree – lot in line you’re But there to feeling past, get about it modest, you are to taken and a cuts, I’m obviously leverage. a a you sounds top more there’s talk – past that need you very top of rebound guys OpEx that bit But little

Trent Ziegler

in we result take getting future. time. pretty I work it think against have reconfigured we that I margins teens the EBITDA structure half to the think high too in John. bleak in mean, the look, revenue quite in in against level obviously at trend XX% to the not revenue continues year. that us the back of And any But EBITDA margins a mid business top quarter. line hadn’t much. the a such cost in second to that’s Thanks, I been way would rebound of the That’s some don’t back the backdrop, we Yes. hit should distant this us in

Doug Lebda

they examples, have to going anything. we some with same we to – the of for spending which people there. have when they our significant in start basis. again add same the just revenue cost we’re a largest we and come managers, have back generating I’ll the have over we of us, account or just insurance bunch mean, don’t budget same more – specific marketers, I VMD and – hire is We don’t clients, just Yes,

as alluded So to see in for we’re Trent all question, without believe VMD the time. growth for earlier some an across can revenue need significant we in, I OpEx quite growth and industries the

John Campbell

of it to the maybe seasonality. put guessing the feet don’t And be guys Yes, then or kind there, the VMD showing mortgage shareholder would your was then looks mortgage do mean, be decline results? with math, XX%. want but you just just actually for HELOC That’s could makes a you The – you lot it sense. and XQ homes that down triangulating also to on so you like of in this guys of up can XX% my provide that homes, I like maybe just letter the just trough from standpoint, kind on is sequentially. XX%, maybe industry saw fire, of at de-emphasized out and XX% the I’m kind potentially, or I’m the out any color that in feel or so with called least I

Doug Lebda

rates and rising. – be some back and channel better in lenders it hope public, on we are the that like do and mortgage seem not Listen, and hear layoffs et think of and from the cetera, taking industry are are going checks, is capacity like would So it, flip and poised side God rates to The I same are be an picking some from trough. doing lenders pulling at taking – purchase time, lenders the it capacity. standpoint, mortgage to feels to from so you’ll

would – want, – sure equation. So we’re and willing from the to not which the demand equation pay, in the coverage they’re they the price I want quantity demand see we’re and make their to capacity, the standpoint going to reductions the reduce of capacity,

said, our much that things with me and side of out personally more with and do in clients is plan is rest going for this Now that both get and the Scott to coming are be period of that, team. of flip closer the and particularly see really one we aggressively, time Scott the here them, of them over to

I there. add? some to operational just expect So wins anything Scott,

Scott Peyree

– at the I that’s has you fallen add Yes, you’re And would in look probably trough. also would I refi I off probably mean, say – would just market, mean, at I purchasing that at dramatically. might I a little there there’s at month consumers high of bit, about it, the you be I We lot would rates. a out is what add trough every think but there homes very say, interest

So happening this now month year. right every I mean, that’s

look next see a could And start and so year, it theoretically into does – you mortgage maybe if you some rates early to drop little bit.

homes have of be in actively consumers will that any base this interest at rates of this year And so refi looking ingrained bought the will with have – you to user drop you all.

ours. a So comparing a next little year of start like say, that be bit a – benefit of from could a company

John Campbell

a lot Makes sense. of Thank you.

Trent Ziegler

a and product is job product. comment doing make other I’d initiatives fantastic our over at taking inside only of The Owen development

purchase conversion on rates. focused We’re

that’s on [indiscernible] Now that had crack LendingTree code, as you an to know, it many we been of to at are but progress. challenge see and some working hope

Operator

Great. Please stand by.

comes Wedel go Please Melissa ahead. from Our question next JPMorgan. from

Melissa Wedel

morning. taking questions Good my today. for Thanks

on the just we’re to guidance the margins in kind most you the wanted comparing from follow-up mid-teens. revised First, EBITDA and which recent noted quarter, Trent I of

that it double couple that. lower that Is a driving the you’re sort or in embedded margins levels. implied in head guiding you’re digits, back wrap some than guidance half, just of a so sort XXX of XQ my and around conservatism I’m bps Just low something just seeing? else to trying

Trent Ziegler

the in the on the that work kind first kind the have the of this magnitude half half the of the back revenue of the year. structure assume No, it’s year, compressed We in cost of levels. of most done we just OpEx of quarterly

to remain impact expect But in were I where core as bit year the they your expect of decline the there enough revenue obviously margins the through magnitude VMM, your of improvement that’s of the mean, to We back or we just consistent little going in revenue segments. QX. trails half offset relatively to actually the a to margin. do in the to EBITDA in see a not quite couple gross of guide. off, It’s

Doug Lebda

By of revenue tell not margin QX, how is I we’re margin when add we to for do I can would calculation tell XX% VMD. going get a can’t EBITDA did million front. been to need you And other bigger back on and prior when we’ve you need path. and here you going $XX I’d that has company with the out two the a financial if roughly come math – come you to million the it And thing before. in tell a $XX in way, the we’re you it’s but And stronger there long do because of – the a the back to from one I it, not typically get little question need quarter. We That’s on there can significant more share. could XX% of margin, you VMM much dislocations

Melissa Wedel

terms you – personal little number? and TreeQual looks seasonality consumer. things, on it. that like in we’re Loan. you how that? to – attribute If categories A you of think revenue increase it mostly Got of there – do at looking driving a of starting bit what’s in right, a some payoff? do And question understand card – there you within a just is sequential What card follow-up the it Are couple that? see wanted is sort in Okay. Is in to of

Trent Ziegler

improved in and been value the us LendingTree and activity activity. the to last most that proper migrating us of domain, You of Like, talked of that on Yes. CompareCards that through for On has run business. better of of sort card, LendingTree That like new in leverage acquired e-mails domain business XXXX-XXXX, domain. the business the capture the that lot repeat traffic foundational to in platform us has a things about primary migrated to we There’s and and we which we over that business of some activity sort some that. Card and quarter to how operate a we has back recall, in particular, right? enabled

And bear so that we’re seeing fruit.

saw year. that to the uptick some progress you spots And in bright QX, market the one that in to that of expect through the consumer, and That’s revenue, healthy so the of in but of sort be slight and to uptick pronounced profile continues forward businesses. of within relative half of that only more margin to not relatively the business back probably an a continue a other end is we

Scott Peyree

consumers optimizing is because I would it next throughput, bump add was it believe have to too, just have an the doing that But that, I results few significant Lightspeed, of lot immediate and name which funnel funnel new migrated we and the helped add consumers a and matches. in in for of on on optimization quarters – continued yes, rates that going now performance, sets I a throughput to we’re but efficiency. marketing on to that we platform, conversion impact continue better platform funnel happen. needed of did increased to the what that Yes. And conversion testing our

that a I migration that the A of And us is the part in lot quarters. opportunity credit in that happen. business platform needed to there big so of for was think card coming

Doug Lebda

time, a and something bring in The made and very with is product some lenders. mindful working TreeQual for of Yes. is say our is card we’ve I existing team and I pivots great that would example side mentioned up product which helps say, of. business. how That you’ve credit click we’re running. of having the we’ve a long getting only that we that out I about getting the would flip Lightspeed us And talking all TreeQual, been a would we’re add right, TreeQual

that And that need lenders the in it. soon say two. future, to fruit we biggest so, expect need the And bear to you to then we find we but shortly or with we’re getting challenge receptivity lender more work those is the

card for them issuers, with catch you a slogging we’re on and small get to So them, work to major that a you, to little some bit XX you’re of when also but a success. tech project having business got go a

Now be event expect done. impact we when will whenever that have get a to a it that big it hits, that one-time we

Melissa Wedel

you Thank it. everyone. Got

Operator

standby. Thank you. Please

Chris William question Blair. comes next from from Our Kennedy

Chris Kennedy

Thanks morning. taking Good the question. for

conversion little expectations? improve dive mentioned going Just your just efforts and initiatives the they’re wanted a can the more relative of to into up But to on you rates. the bit them. how just follow to you Doug, few a

Doug Lebda

so of So here, things competitive I’m mindful it in. Obviously, we talked let me overall. hit about TreeQual

you to biggest So, plug go then is company, and and funnel have the credit leak. you where performance And leak if you marketing conversion a you and lot try information it’s to gather at out cards, look the a don’t a that’s see rate. because your we and those. low rate pretty click click – And a out on there’s approval we approval of

all credit, are the for of You in credit. people seeking fact have also business, the that seeking have competitors which that

So just to one. going offers you’re get talked more data, consumers you about to that that to and pre-approved making I so have they’re that get

capabilities act getting – on of lead interactive the The That teams phone getting loan. And you’re with you we doesn’t that then enhance getting offer close a you just in to with need in rates of mortgage barrage might about or not home – mortgage new, be getting space. fund our the one we’re And there, small and what business think to of one-time sitting. well and from so the calls. happen other – more trying mostly CRM working our the a those who from series doing lenders, loan LendingTree space in you’re for are be is what in – the

leveraged smaller right. them. council very a a have that The managed that with a in made to change we’ve test group working It’s very, how on of we’re is with advisory with basis our us lender actually works collaborative we and lenders are We marketplace. and co-creating now working lenders

I that fruit. bear expect to So

about alerts. you so give underway. these our what a about last offers news I is that there change evaluating and much one And say good and the can engagement Now is more and is And important. this that quarter platform, call is the that my is would which we have personalized work LendingTree, improving pivoting technical our it’s while offers platform. and we’re we we’re Underlying every of we a now, lot

you’re today, and offers interacting changes you’re lenders, your seeing where with to making rigid. So the pages it’s if very

say, they on a that year, more I’d these about to all for make very much I’d Any going about that moving tomorrow. shift hits shortly else. that it flexible. We’re And that’s been done, this, Trent we working don’t system it as almost and And have them don’t then we’ve discretionary when – to spending, off one say pay need resources as a of Lightspeed to to we work can of we thing the last gets those work, of some got – money would on something we’re when works. things change a said, if got a we lot that get like

Chris Kennedy

helpful. to they’re of what of to time Got it. Thanks frame you are make decision whether order envisioning taking Very that, ultimate the that not. or And working just type then kind follow-up a in question. for

Doug Lebda

Yes.

review dedicated teams that And against deem other our new anything the And quarterly now, them. hits on and tell one we’re a product OKRs quarter. making I’ll them of – go adjustments everybody in I through process, got we but we every So doing things they you as they of way and we’ve a that initiative. product you quarter, product cross-functional every the have not – a in each – one tech said, are

keep it’s going. Sometimes

marks. your You’re hitting

with need to just the – we’ve tech got it. Sometimes down. really LendingTree And be now, Scott raise and leadership to we way product going need – – shut I a to it’s you great with bar, Totman we’re do you it to And this feel you that’s and need Owen, organization. it’s we our thing sometimes we like

Scott Peyree

of immediate, funded a for getting and top sure listings we’re a matches matches. good which loans on offers will We all than hands on on that an as the per essentially impact consumer, work iterative, of look we’re offers time the can at are sooner now and putting them there’s rather Yes. lot seen making getting on giving we’ve lot And I’ll since those to better opportunity deck. just in throw in platform converted offers a consumer revenue success continually we having consumer, the better the there’s over we cards do have and the algorithms one should is so honestly, constantly same highest loan, credit improving at for have loans potential And there a that like platform, that specific, which the pre-approved know an more all happen personal later. better it, personal

at funded an in So method. they’re loans a getting easier –

stuff I impact rather we’re later. So some that this of excited have mean, sooner than pretty can

Chris Kennedy

you. Great. Thank

Operator

by. stand Please Great.

Our Wildhack question Please next [Autonomous]. go from comes Rob ahead.

Rob Wildhack

refinance for have to rates Hi, again? come mind guys. how have would you number down? opportunity a X% in mortgage On there’s or home, do to X.X% Maybe it’s far before healthy

Doug Lebda

this, I the there’s activity. times you don’t news they’re I I and actually of refinance about though like to of what at tell hard XX have say like about good I except at No, always, almost refinance say would sometimes the directionally is be will decent do a level forecast, almost years right to you and in But precise. go look but this, NBA doing

You have due. adjustable have who coming people mortgages rate

credit people scores whose have improve. You

values debts. cash to other You have want go or do pay something up whose out go off people they and

that it you to borrower there. all just the great, that you. now refinance So go But at right because it’s to get savings isn’t in if get X% gets we’re there’s credit’s mortgage for like, you a your at or when – a benefit X% it X.X%, not

got mortgages stacked And But so come need would down. seeing to general But just really what of man, will – gotten see you stabilization, is, start tick storing lot business. efficient. I like I and think you’ve I tell you a we’re business refinance you in man, as a more a that rates the industry refinance up, more it’s oh think and do even down,

in to are grow. happening to So as they those And gets I’d everybody’s the starts expect because improvements throughput background can. as to when efficient technology stick trying be to going the are better efficiencies market as be

Rob Wildhack

Thanks, Doug.

Doug Lebda

Yes.

Some of for mortgage top next mortgage are like right the pretty year. a looking economists industry now healthy

Rob Wildhack

it. more Got Thanks, for And one Scott. Doug. then maybe

about case It base as into of towards to a getting three carriers Can they outlook growth carriers insurance end budgets we XXXX. earlier, can start resetting that six another kind again? takes mentioned before interpret months You year thinking profitable here?

Scott Peyree

Yes. would scenario. case say a base that’s I

cautious this at have even We’ve carriers a to XXXX written that saying mean, name brands better which than I in But July. June about to of I’m have new carriers and a positive. XXXX. just I probably been turn there completely major they’re the sit stabilization. about want increases be year is a happen think in being mode when the budget in that’s much but a number kind with I lot sign dramatically, not They I in annual to when our July, like of consumer had talking low calendar marketing like significant point. stabilization. we’re stable has think big the they’re and going cut. that point. you’re feel I And of Not if there’s today, us feel budgets increased survival good are there mean, at a is But continuing I to cycles completely like a year. shift budget of where honest, off it’s is very June, I pretty I I – running feel

Rob Wildhack

Makes sense. Thanks.

Operator

And Mike Grondahl comes go Please Northland. ahead. from our from final question

Mike Grondahl

most? Hey back Doug, back verticals guys. the Which pull the lenders back pulled mentioned you did pull XQ least? or they that’s what you’re did in thanks, some ones which seeing, they

Doug Lebda

about pay. XQ, talking most And would number at say, select willing So who – were lenders do end a weren’t of you of QX. mortgage, reducing Trent, to the in want to first I we the by they’re back off, take price we in talking pulled lease,

credit volume, tighter impacts So obviously the any? I in want remember, I relative that personal sell loans, And it’s size. revenue to them be lenders those Trent, of Google. set "pullback" to less like, LendingTree And a bids need loans don’t able profile. in isn’t set terms box in we as the

Trent Ziegler

of most in bid small or concessions are seen smaller of personal We’ve price Order handful in the some say, I’d the loans, ones probably that more business. we’ve magnitude, a in of pronounced. home reductions Yes. seen

Mike Grondahl

have Trent, spend put XXXX? you brackets disclosed the in then of around And what kind bucket discretionary it. or is Got

Doug Lebda

yet. not but No,

Trent Ziegler

the it’s mean, ZIP the of structure. code I yet. in to cost XX% Not of X%

Mike Grondahl

it. Got

guys. Okay. Thanks

Doug Lebda

Mike. Thanks,

Operator

turn Please back I’m conference Lebda, showing no this questions go the I’d ahead. to Doug CEO. further time. to now at like

Doug Lebda

we that, Thank being shareholders for today. you a very this I your season. changes for all it. has to know COVID address on get questions. to it all you and the been making you the levels I during you situation, – to at for know just much winter Thank well, reassure are are here very that want see we long we hopefully, and want I can dark again much as

that’s we’re is company making faster leaner, we’re person more in we’re and Our effectively. us more now operate smaller,

but and We me can are us significant of also incredibly only mindful team, you, being all management of as our balance tell I sheet, as a being shareholders not shareholder. a

can make We profile handled. are and in that, that our to but that, that improve going manage with you, sure are financial and we and be

believe solid. is our very position market We

us. space, it in smaller much of this As leaders the than is harder one on is it marketplaces on

market revenue the line. And our consolidate sharper incremental much we’re margin any to higher continue falling so more can the that with to capture share it margin of profile, a hopefully, with we improvement position, better – so and bottom improve we

company, very problems to your but you in customers. our you Those to belief next forward continuing value much underway across are progress. relationship just our of talked we on clients, solve, our side great to initiatives on we of quarter the And on this with key, about focus on one and marketplace. the improve the look we the is for are for Scott That Thank talking hit to making to the as going provide – We’re quarter. to all segments. our other hard

Operator

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

now disconnect. may You

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.