LendingTree (TREE) Tops Q1 EPS by 26c, Revenues Beat; Offers 2Q Revenue Guidance Below Consensus

LendingTree (NASDAQ: TREE) reported Q1 EPS of $1.34, $0.26 better than the analyst estimate of $1.08. Revenue for the quarter came in at $283.1 million versus the consensus estimate of $287.04 million.

First Quarter 2020 Business Highlights

• Home segment revenue of $79.2 million and segment profit of $35.9 million grew 25% and 50%, respectively, over first quarter 2019.
  • Within Home, mortgage products revenue grew 46% over the prior year period.
• Insurance revenue of $82.7 million grew 23% over first quarter 2019 and translated into Insurance segment profit of $30.5 million.
• Consumer segment revenue of $119.9 million decreased 1% over first quarter 2019, driven by the impact of COVID-19 as unsecured credit and the flow of capital in certain corners of the market have tightened.
  • Within Consumer, credit card revenue of $51.6 million decreased 5% year-over-year.
  • Personal loans revenue of $31.5 million decreased 3% year-over-year.
  • Small business revenue grew 43% year-over-year.
• Through March 31, 14.7 million consumers have signed up for My LendingTree. Revenue contribution from My LendingTree of $18.7 million was up 4% year-over-year. Average monthly active users grew 10% over the first quarter 2019.

"I am incredibly proud of our team's response in these challenging times," said Doug Lebda, Chairman and CEO. "Our solid first quarter results are a testament to our team's hard work and resiliency and is further proof that our business model is resilient to financial market changes. Although our company is not immune to the challenges created by the COVID-19 outbreak, we remain focused on continued market share and wallet share gains in our core business, product innovation, and providing support for our consumers, partners, employees, and communities."

J.D. Moriarty, CFO added, "We're pleased to be able to report first quarter adjusted EBITDA in line with our original guidance despite the adverse conditions that began to develop in early March. While we're uncertain as to the depth and length of economic recession, our balance sheet, liquidity position, and cash flow generation remain strong, and we\'re well-positioned to continue driving the business forward."

GUIDANCE:

LendingTree sees Q2 2020 revenue of $160-175 million, versus the consensus of $233.7 million.

As of April 14, LendingTree has withdrawn its full-year 2020 guidance. Today, the company is providing revenue, variable marketing margin and adjusted EBITDA guidance for the second quarter of 2020, as follows:

For second quarter 2020:

• Revenue is expected in the range of $160 - $175 million.
• Variable marketing margin is expected in the range of $65 - $75 million.
• Adjusted EBITDA is expected in the range of $12 - $18 million.

For earnings history and earnings-related data on LendingTree (TREE) click here.

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