LendingTree (TREE) Tops Q2 EPS by 30c; Guides Higher
LendingTree (NASDAQ: TREE) reported Q2 EPS of $0.63, $0.30 better than the analyst estimate of $0.33. Revenue for the quarter came in at $55.1 million versus the consensus estimate of $51.97 million.
LendingTree sees Q3 2015 revenue of $60-62 million, versus the consensus of $52.5 million.
LendingTree sees FY2015 revenue of $225-230 million, versus the consensus of $207.52 million.
"We couldn't be more pleased with this quarter's results," said Doug Lebda, Chairman and CEO. "The online lending market continues to expand and LendingTree is positioned perfectly to capture an increased share of a burgeoning market. With another quarter of continued growth, we're especially pleased to see our non-mortgage revenue more than double year-over-year, and grow 29 percent over the prior quarter. Our continued business strength in both mortgage and non-mortgage categories gives us confidence to increase our guidance for the remainder of the year."
Gabe Dalporto, Chief Financial Officer added, "While we're thrilled with our performance on both the top and bottom-line during the quarter, we were also able to accelerate the investment in our brand campaign, reflected in this quarter's results. Revenue from our mortgage products remains strong due in part to increased lender demand and our ability to deliver volume increases while sustaining monetization. Meanwhile, revenue from our personal loans marketplace has grown exponentially with the number of matched consumers experiencing 42 percent growth quarter-over-quarter. Additionally, our credit cards business is quickly gaining momentum, experiencing a 75 percent lift in revenue quarter-over-quarter and proving to be a promising driver of growth."
Business Outlook - 2015
LendingTree is providing revenue, Variable Marketing Margin and Adjusted EBITDA guidance for the third quarter 2015 and increasing its full-year 2015 outlook, as follows:
For third quarter 2015:
- Revenue is anticipated to be in the range of $60 - $62 million, a 45% - 50% increase over third quarter 2014.
- Variable Marketing Margin is anticipated to be $22.5 - $23.5 million, an increase of 35% - 41% over third quarter 2014.
- Adjusted EBITDA is anticipated to be in the range of $9.2 - $9.7 million, up 59% - 67% over third quarter 2014.
For full-year 2015:
- Revenue is now anticipated to be $225 - $230 million, or 34% - 37% over full-year 2014, an increase from previous guidance of $202 - $208 million.
- Variable Marketing Margin is now anticipated to be in the range of $86.0 - $89.0 million, an increase of 32% - 37% over full-year 2014 and up from previous guidance of $78.0 - $82.0 million.
- Adjusted EBITDA is now anticipated to be in the range of $35.0 - $36.0 million, implying year-over-year growth of 60% - 65%, an increase from previous guidance of $30.0 - $31.0 million.
For earnings history and earnings-related data on LendingTree (TREE) click here.
