LendingTree Posts Wider-than-expected Q3 Per-share Loss

11/5/20

By Jay Wilson, NC BIZ News

LendingTree, the largest online lending marketplace in the U.S., reported a wider-than-expected per share loss for the third quarter on Thursday.

LendingTree repotted an adjusted loss per share of 26 cents, compared to earnings per share of $2.25 a year ago. Analysts had expected a loss of 13 cents per share.

For the quarter, the company reported total revenue of $220.3 million, up 20 percent from the previous quarter of $184.3 million but down 29 percent year-over-year. Revenue topped expectations of $210.58 million.

The company withdrew its full-year 2020 guidance on April 14 due to economic uncertainty stemming from the coronavirus pandemic. The company shared guidance for the fourth quarter, with projected revenue between $200 and $215 million, variable marketing margin between $72 and $78 million, and adjusted EBIDTA between $13 and $18 million.

“We’re pleased to report another strong quarter at LendingTree. I’m incredibly proud of the resiliency our Company has shown during this difficult period,” CEO Doug Lebda said in the release.

The CEO pointed out that while some businesses have “been challenged” during the pandemic, others are “thriving.”

The company’s home and insurance segments performed better than the consumer segment for the quarter. Total revenue for the home segment was at $78.9 million, up 2 percent year-over-year and 6 percent quarter-over-quarter. Total revenue for the insurance segment was at $92.5 million, up 24 percent year-over-year and 27 percent quarter-over-quarter. The struggling consumer segment revenue fell to $48.4 million, down 68 percent year-over-year and up 30 percent quarter-over-quarter.

“While 2020 has certainly not played out the way we expected, this period of time has given us an opportunity to renew our focus on strategy, innovation, and execution, and I’m increasingly confident in our market-leading position,” Lebda added.

The company also recently updated its My LendingTree app to connect directly with users’ checking and saving accounts. According to the earnings release, 15.7 million consumers have signed up for My LendingTree app.

Shares of LendingTree are currently trading at $293.90 a share, down 15 percent from its previous close of $348.78 a share.

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