LendingTree (TREE) Misses Q1 EPS by 6c, Revs Beat; Raises Outloook
LendingTree (NASDAQ: TREE) reported Q1 EPS of $0.85, $0.06 worse than the analyst estimate of $0.91. Revenue for the quarter came in at $132.5 million versus the consensus estimate of $124.94 million.
- Total loan requests in the quarter of 4.8 million grew 49% compared to first quarter 2016
- Record revenue from mortgage products of $62.9 million represents an increase of 14% over first quarter 2016 primarily driven by growth in purchase revenue, although refinance revenue also increased.
- Record revenue from non-mortgage products of $69.6 million in the first quarter represents an increase of 75% over the first quarter 2016 and comprised 53% of total revenue. Notably, this quarter marks the first period where non-mortgage revenue exceeded that of mortgage, evidencing the continued momentum of our diversification strategy.
- Revenue from our credit card offerings grew to $33.8 million, an increase of 269% compared to first quarter 2016, or 37% on a proforma basis.
- Home equity revenue grew 118% over first quarter 2016 and marked its ninth consecutive quarter of sequential growth.
- Nearly 4.9 million consumers have now signed up for free credit scores and savings alerts through My LendingTree, and revenue contribution from MyLendingTree grew 28% in the first quarter compared to the prior year period.
Business Outlook - 2017
LendingTree is providing Revenue, Variable Marketing Margin and Adjusted EBITDA guidance for second quarter 2017 and updating full-year 2017 guidance, as follows:
For second quarter 2017:
- Revenue is anticipated to be $133 - $137 million, or 41% - 45% over second quarter 2016.
- Variable Marketing Margin is anticipated to be in the range of $43 - $46 million.
- Adjusted EBITDA is anticipated to be in the range of $23.5 - $25.0 million, implying year-over-year growth of 41% - 50%.
For full-year 2017:
- Revenue is anticipated to be in the range of $535 - $545 million, representing growth of 39% - 42% over full-year 2016 and an increase from prior guidance of $500 - $520 million.
- Variable Marketing Margin is anticipated to be $180 - $185 million compared to prior guidance of $175 - $185 million.
- Adjusted EBITDA is anticipated to be in the range of $95 - $99 million, up 36% - 42% over full-year 2016 and an increase from prior guidance of $93 - $97 million.
For earnings history and earnings-related data on LendingTree (TREE) click here.