Strategic Expense Reductions Help Offset
Continued Economic Headwinds
- Consolidated revenue of $200.5 million
- GAAP net income of $13.5 million or $1.04 per diluted share, inclusive of a gain of
$30.9 million from the partial
repurchase of our 2025 convertible notes at a discount
- Variable marketing margin of $76.1 million
- Adjusted EBITDA of $14.5 million
- Adjusted net income per share of $0.25
CHARLOTTE, N.C., May 2, 2023
/PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE), operator of
LendingTree.com, the nation's leading online financial services
marketplace, today announced results for the quarter ended
March 31, 2023.
The company has posted a letter to shareholders on the company's
website at investors.lendingtree.com.
"During the first quarter we completed a strategic expense
reduction that impacted 13% of our workforce. The plan
targeted parts of our business that are more capital intensive, as
well as those areas where the revenue outlook has become less
certain in light of the challenging economic environment," said
Doug Lebda, Chairman and CEO.
"We have also completed our transition from an annual to a
quarterly strategic planning cadence. Combined with our
cross-functional team support for each of our discrete growth
initiatives, we are better able to focus our employees and
resources on the projects we believe are most important to deliver
on our goal of creating the best-in-class consumer experience, as
well as improved financial performance."
Trent Ziegler, CFO, added, "The
series of steps we have taken to right-size our fixed costs over
the last two quarters will allow us to generate improved operating
leverage as demand from our partners eventually recovers. In
the interim, running the business more efficiently will help
improve our immediate financial performance and streamline our
ability to execute on our targeted growth opportunities."
First Quarter 2023 Business Highlights
- Home segment revenue of $43.7 million decreased 57% over first
quarter 2022 and produced segment profit of $15.1 million, down 58% over the same
period.
-
- Within Home, revenue from Home Equity of $23.7 million grew 2% over prior year.
- Consumer segment revenue of $79.7 million declined 21% over first
quarter 2022.
-
- Within Consumer, personal loans revenue of $23.6 million declined 33% over prior
year.
- Revenue from our small business offering decreased 11% over
prior year.
- Credit card revenue of $18.3 million was down 39% over prior
year.
- Insurance segment revenue of $77.1 million decreased 4% over first
quarter 2022 and translated into segment profit of $30.2 million, up 43% over the same
period.
- Through March 31, 2023, 25.8 million consumers have signed
up for MyLendingTree
LendingTree Summary Financial
Metrics
|
(In millions, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Y/Y
|
|
|
Three Months Ended
December 31,
|
|
Q/Q
|
|
|
2023
|
|
2022
|
|
% Change
|
|
|
2022
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
$ 200.5
|
|
$
283.2
|
|
(29) %
|
|
|
$
202.1
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 13.9
|
|
$
(10.4)
|
|
234 %
|
|
|
$
(11.3)
|
|
223 %
|
|
Income tax (expense)
benefit
|
$
(0.4)
|
|
$
(0.4)
|
|
— %
|
|
|
$
0.9
|
|
(144) %
|
|
Net income (loss)
|
$
13.5
|
|
$
(10.8)
|
|
225 %
|
|
|
$
(10.4)
|
|
230 %
|
|
Net income (loss) % of revenue
|
7 %
|
|
(4) %
|
|
|
|
|
(5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 1.05
|
|
$
(0.84)
|
|
|
|
|
$
(0.81)
|
|
|
|
Diluted
|
$ 1.04
|
|
$
(0.84)
|
|
|
|
|
$
(0.81)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable marketing margin
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$ 200.5
|
|
$
283.2
|
|
(29) %
|
|
|
$
202.1
|
|
(1) %
|
|
Variable marketing
expense (1) (2)
|
$
(124.4)
|
|
$
(189.1)
|
|
(34) %
|
|
|
$
(124.0)
|
|
— %
|
|
Variable marketing margin
(2)
|
$
76.1
|
|
$
94.1
|
|
(19) %
|
|
|
$
78.1
|
|
(3) %
|
|
Variable marketing margin % of revenue
(2)
|
38 %
|
|
33 %
|
|
|
|
|
39 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
|
$
14.5
|
|
$
29.4
|
|
(51) %
|
|
|
$
16.7
|
|
(13) %
|
|
Adjusted EBITDA % of revenue
(2)
|
7 %
|
|
10 %
|
|
|
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (2)
|
$
3.2
|
|
$
6.1
|
|
(48) %
|
|
|
$
4.9
|
|
(35) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
(2)
|
$
0.25
|
|
$
0.46
|
|
(46) %
|
|
|
$
0.38
|
|
(34) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents the
portion of selling and marketing expense attributable to variable
costs paid for advertising, direct marketing and related
expenses. Excludes overhead, fixed costs and
personnel-related expenses.
|
(2)
|
Variable marketing
expense, variable marketing margin, variable marketing margin % of
revenue, adjusted EBITDA, adjusted EBITDA % of revenue, adjusted
net income and adjusted net income per share are non-GAAP measures.
Please see "LendingTree's Reconciliation of Non-GAAP Measures to
GAAP" and "LendingTree's Principles of Financial Reporting" below
for more information.
|
LendingTree Segment Results
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Y/Y
|
|
|
Three Months Ended
December 31,
|
|
Q/Q
|
|
|
2023
|
|
2022
|
|
% Change
|
|
|
2022
|
|
% Change
|
|
Home (1)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 43.7
|
|
$
101.9
|
|
(57) %
|
|
|
$
48.6
|
|
(10) %
|
|
Segment
profit
|
$ 15.1
|
|
$ 35.9
|
|
(58) %
|
|
|
$
16.3
|
|
(7) %
|
|
Segment profit % of revenue
|
35 %
|
|
35 %
|
|
|
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer (2)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 79.7
|
|
$
101.1
|
|
(21) %
|
|
|
$
86.2
|
|
(8) %
|
|
Segment
profit
|
$ 34.9
|
|
$ 42.5
|
|
(18) %
|
|
|
$
41.7
|
|
(16) %
|
|
Segment profit % of revenue
|
44 %
|
|
42 %
|
|
|
|
|
48 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance (3)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 77.1
|
|
$ 80.0
|
|
(4) %
|
|
|
$
67.0
|
|
15 %
|
|
Segment
profit
|
$ 30.2
|
|
$ 21.1
|
|
43 %
|
|
|
$
25.6
|
|
18 %
|
|
Segment profit % of revenue
|
39 %
|
|
26 %
|
|
|
|
|
38 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (4)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
—
|
|
$
0.1
|
|
(100) %
|
|
|
$
0.2
|
|
(100) %
|
|
(Loss)
profit
|
$
(0.2)
|
|
$
(0.1)
|
|
(100) %
|
|
|
$
(0.1)
|
|
(100) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
$ 200.5
|
|
$
283.2
|
|
(29) %
|
|
|
$
202.1
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment profit
|
$
80.0
|
|
$
99.5
|
|
(20) %
|
|
|
$
83.4
|
|
(4) %
|
|
Brand marketing expense
(5)
|
$
(3.9)
|
|
$
(5.4)
|
|
(28) %
|
|
|
$
(5.3)
|
|
(26) %
|
|
Variable marketing margin
|
$
76.1
|
|
$
94.1
|
|
(19) %
|
|
|
$
78.1
|
|
(3) %
|
|
Variable marketing margin % of
revenue
|
38 %
|
|
33 %
|
|
|
|
|
39 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The Home segment
includes the following products: purchase mortgage, refinance
mortgage, home equity loans, and reverse mortgage loans. We
ceased offering reverse mortgage loans in Q4 2022.
|
(2)
|
The Consumer segment
includes the following products: credit cards, personal loans,
small business loans, student loans, auto loans, deposit accounts,
and other credit products such as credit repair and debt
settlement.
|
(3)
|
The Insurance segment
consists of insurance quote products and sales of insurance
policies.
|
(4)
|
The Other category
primarily includes marketing revenue and related expenses not
allocated to a specific segment.
|
(5)
|
Brand marketing
expense represents the portion of selling and marketing expense
attributable to variable costs paid for advertising, direct
marketing and related expenses that are not assignable to the
segments' products. This measure excludes overhead, fixed costs and
personnel-related expenses.
|
Financial Outlook*
Today we are updating our full-year 2023 outlook which implies
the following ranges for the second-quarter. Our forecast
includes a benefit from recently completed expense reductions
offset by continued headwinds in Home, a pressured revenue
environment for Consumer and, to a lesser extent, Insurance.
In April, subsequent to quarter end, we made the decision to close
our Ovation Credit Services business, with the financial impact
incorporated in our forecast.
Full-year 2023:
- Revenue of $760 - $800 million compared to the prior range of
$935 - $985
million.
- Variable Marketing Margin of $290
- $310 million vs prior range of
$325 - $350
million.
- Adjusted EBITDA of $80 -
$90 million vs prior range of
$85 - $95
million.
Second-quarter 2023:
- Revenue: $190 -
$200 million
- Variable Marketing Margin: $75 - $80
million
- Adjusted EBITDA: $17 -
$22 million
|
*LendingTree is not
able to provide a reconciliation of projected variable marketing
margin or adjusted EBITDA to the most directly comparable expected
GAAP results due to the unknown effect, timing and potential
significance of the effects of legal matters and tax
considerations. Expenses associated with legal matters and tax
considerations have in the past, and may in the future,
significantly affect GAAP results in a particular
period.
|
Quarterly Conference Call
A conference call to discuss LendingTree's first quarter 2023
financial results will be webcast live today, May 2, 2023 at 9:00 AM
Eastern Time (ET). The live audiocast is open to the public
and will be available on LendingTree's investor relations website
at investors.lendingtree.com. Following completion of the call, a
recorded replay of the webcast will be available on the
website.
LENDINGTREE'S RECONCILIATION OF NON-GAAP
MEASURES TO GAAP
Variable Marketing Expense
Below is a reconciliation of selling and marketing expense, the
most directly comparable GAAP measure, to variable marketing
expense. See "LendingTree's Principles of Financial Reporting" for
further discussion of the Company's use of this non-GAAP
measure.
|
Three Months Ended
|
|
March 31,
2023
|
December 31,
2022
|
March 31,
2022
|
|
(in thousands)
|
Selling and marketing expense
|
$
137,111
|
$
136,669
|
$
204,157
|
Non-variable selling
and marketing expense (1)
|
(12,712)
|
(12,717)
|
(15,081)
|
Variable marketing expense
|
$
124,399
|
$
123,952
|
$
189,076
|
|
|
(1)
|
Represents the
portion of selling and marketing expense not attributable to
variable costs paid for advertising, direct
marketing and related expenses. Includes overhead, fixed costs and
personnel-related expenses.
|
LENDINGTREE'S RECONCILIATION OF NON-GAAP
MEASURES TO GAAP
Variable Marketing Margin
Below is a reconciliation of net income (loss), the most
directly comparable table GAAP measure, to variable marketing
margin and net income (loss) % of revenue to variable marketing
margin % of revenue. See "LendingTree's Principles of Financial
Reporting" for further discussion of the Company's use of these
non-GAAP measures.
|
Three Months Ended
|
|
March 31,
2023
|
December 31,
2022
|
March 31,
2022
|
|
(in thousands, except
percentages)
|
Net income (loss)
|
$
13,457
|
$ (10,404)
|
$ (10,826)
|
Net income (loss) % of revenue
|
7 %
|
(5) %
|
(4) %
|
|
|
|
|
Adjustments to
reconcile to variable marketing margin:
|
|
|
|
Cost of
revenue
|
13,760
|
13,529
|
15,561
|
Non-variable selling
and marketing expense (1)
|
12,712
|
12,717
|
15,081
|
General and
administrative expense
|
36,683
|
36,575
|
35,977
|
Product
development
|
14,655
|
13,140
|
14,052
|
Depreciation
|
4,795
|
5,071
|
4,854
|
Amortization of
intangibles
|
2,049
|
3,732
|
7,917
|
Restructuring and
severance
|
4,454
|
668
|
3,625
|
Litigation settlements
and contingencies
|
12
|
23
|
(27)
|
Interest (income)
expense, net
|
(25,029)
|
6,024
|
7,505
|
Other (income)
expense
|
(1,834)
|
(2,037)
|
1
|
Income tax expense
(benefit)
|
395
|
(935)
|
382
|
Variable marketing margin
|
$
76,109
|
$
78,103
|
$
94,102
|
Variable marketing margin % of
revenue
|
38 %
|
39 %
|
33 %
|
|
|
(1)
|
Represents the
portion of selling and marketing expense not attributable to
variable costs paid for advertising, direct marketing and
related expenses. Includes overhead, fixed costs and
personnel-related expenses.
|
LENDINGTREE'S RECONCILIATION OF NON-GAAP
MEASURES TO GAAP
Adjusted EBITDA
Below is a reconciliation of net income (loss), the most
directly comparable table GAAP measure, to adjusted EBITDA and net
income (loss) % of revenue to adjusted EBITDA % of revenue. See
"LendingTree's Principles of Financial Reporting" for further
discussion of the Company's use of these non-GAAP measures.
|
Three Months Ended
|
|
March 31,
2023
|
December 31,
2022
|
March 31,
2022
|
|
(in thousands, except
percentages)
|
Net income (loss)
|
$
13,457
|
$ (10,404)
|
$ (10,826)
|
Net income (loss) % of revenue
|
7 %
|
(5) %
|
(4) %
|
Adjustments to
reconcile to adjusted EBITDA:
|
|
|
|
Amortization of
intangibles
|
2,049
|
3,732
|
7,917
|
Depreciation
|
4,795
|
5,071
|
4,854
|
Restructuring and
severance
|
4,454
|
668
|
3,625
|
Loss on impairments
and disposal of assets
|
5,027
|
2,329
|
431
|
Non-cash
compensation
|
11,203
|
11,634
|
13,997
|
Franchise tax caused
by equity investment gain
|
—
|
—
|
1,500
|
Contribution to
LendingTree Foundation
|
—
|
500
|
—
|
Acquisition
expense
|
(9)
|
106
|
9
|
Litigation settlements
and contingencies
|
12
|
23
|
(27)
|
Interest (income)
expense, net
|
(25,029)
|
6,024
|
7,505
|
Dividend
income
|
(1,834)
|
(2,037)
|
—
|
Income tax expense
(benefit)
|
395
|
(935)
|
382
|
Adjusted EBITDA
|
$
14,520
|
$
16,711
|
$
29,367
|
Adjusted EBITDA % of revenue
|
7 %
|
8 %
|
10 %
|
LENDINGTREE'S RECONCILIATION OF NON-GAAP
MEASURES TO GAAP
Adjusted Net Income
Below is a reconciliation of net income (loss), the most
directly comparable table GAAP measure, to adjusted net income and
net income (loss) per diluted share to adjusted net income per
share. See "LendingTree's Principles of Financial Reporting" for
further discussion of the Company's use of these non-GAAP
measures.
|
Three Months Ended
|
|
March 31,
2023
|
December 31,
2022
|
March 31,
2022
|
|
(in thousands, except per share
amounts)
|
Net income (loss)
|
$
13,457
|
$ (10,404)
|
$ (10,826)
|
Adjustments to
reconcile to adjusted net income:
|
|
|
|
Restructuring and
severance
|
4,454
|
668
|
3,625
|
Loss on impairments
and disposal of assets
|
5,027
|
2,329
|
431
|
Non-cash
compensation
|
11,203
|
11,634
|
13,997
|
Franchise tax caused
by equity investment gain
|
—
|
—
|
1,500
|
Contribution to
LendingTree Foundation
|
—
|
500
|
—
|
Acquisition
expense
|
(9)
|
106
|
9
|
Litigation settlements
and contingencies
|
12
|
23
|
(27)
|
Gain on extinguishment
of debt
|
(30,897)
|
—
|
—
|
Income tax expense
(benefit) from adjusted items
|
—
|
—
|
(5,106)
|
Excess tax expense
from stock-based compensation
|
—
|
—
|
2,468
|
Adjusted net income
|
$
3,247
|
$
4,856
|
$
6,071
|
|
|
|
|
Net income (loss) per diluted
share
|
$
1.04
|
$
(0.81)
|
$
(0.84)
|
Adjustments to
reconcile net income (loss) to adjusted net income
|
(0.79)
|
1.19
|
1.31
|
Adjustments to
reconcile effect of dilutive securities
|
—
|
—
|
(0.01)
|
Adjusted net income per share
|
$
0.25
|
$
0.38
|
$
0.46
|
|
|
|
|
Adjusted weighted average diluted shares
outstanding
|
12,935
|
12,793
|
13,167
|
Effect of dilutive
securities
|
—
|
2
|
266
|
Weighted average diluted shares
outstanding
|
12,935
|
12,791
|
12,901
|
Effect of dilutive
securities
|
89
|
—
|
—
|
Weighted average basic shares
outstanding
|
12,846
|
12,791
|
12,901
|
LENDINGTREE'S PRINCIPLES OF FINANCIAL REPORTING
LendingTree reports the following non-GAAP measures as
supplemental to GAAP:
- Variable marketing expense
- Variable marketing margin
- Variable marketing margin % of revenue
- Earnings Before Interest, Taxes, Depreciation and Amortization,
as adjusted for certain items discussed below ("Adjusted
EBITDA")
- Adjusted EBITDA % of revenue
- Adjusted net income
- Adjusted net income per share
Variable marketing expense, variable marketing margin and
variable marketing margin % of revenue are related measures of the
effectiveness of the Company's marketing efforts. Variable
marketing margin is a measure of the efficiency of the Company's
operating model, measuring revenue after subtracting variable
marketing expense. Variable marketing expense represents the
portion of selling and marketing expense attributable to variable
costs paid for advertising, direct marketing, and related expenses,
and excludes overhead, fixed costs, and personnel related
expenses. The Company's operating model is highly sensitive
to the amount and efficiency of variable marketing expenditures,
and the Company's proprietary systems are able to make rapidly
changing decisions concerning the deployment of variable marketing
expenditures (primarily but not exclusively online and mobile
advertising placement) based on proprietary and sophisticated
analytics.
Adjusted EBITDA and adjusted EBITDA % of revenue are primary
metrics by which LendingTree evaluates the operating performance of
its businesses, on which its marketing expenditures and internal
budgets are based and, in the case of adjusted EBITDA, by which
management and many employees are compensated in most years.
Adjusted net income and adjusted net income per share supplement
GAAP net income and GAAP net income per diluted share by enabling
investors to make period to period comparisons of those components
of the most directly comparable GAAP measures that management
believes better reflect the underlying financial performance of the
Company's business operations during particular financial reporting
periods. Adjusted net income and adjusted net income per share
exclude certain amounts, such as non-cash compensation, non-cash
asset impairment charges, gain/loss on disposal of assets,
gain/loss on investments, restructuring and severance, litigation
settlements and contingencies, acquisition and disposition income
or expenses including with respect to changes in fair value of
contingent consideration, gain/loss on extinguishment of debt,
contributions to the LendingTree Foundation, one-time items which
are recognized and recorded under GAAP in particular periods but
which might be viewed as not necessarily coinciding with the
underlying business operations for the periods in which they are so
recognized and recorded, the effects to income taxes of the
aforementioned adjustments, any excess tax benefit or expense
associated with stock-based compensation recorded in net income in
conjunction with FASB pronouncement ASU 2016-09, and income tax
(benefit) expense from a full valuation allowance. LendingTree
believes that adjusted net income and adjusted net income per share
are useful financial indicators that provide a different view of
the financial performance of the Company than adjusted EBITDA (the
primary metric by which LendingTree evaluates the operating
performance of its businesses) and the GAAP measures of net income
and GAAP net income per diluted share.
These non-GAAP measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for or superior to GAAP results.
LendingTree provides and encourages investors to examine the
reconciling adjustments between the GAAP and non-GAAP measures set
forth above.
Definition of LendingTree's Non-GAAP Measures
Variable marketing margin is defined as revenue less variable
marketing expense. Variable marketing expense is defined as the
expense attributable to variable costs paid for advertising, direct
marketing and related expenses, and excluding overhead, fixed costs
and personnel-related expenses. The majority of these variable
advertising costs are expressly intended to drive traffic to our
websites and these variable advertising costs are included in
selling and marketing expense on the Company's consolidated
statements of operations and consolidated income.
EBITDA is defined as net income from continuing operations
excluding interest, income taxes, amortization of intangibles and
depreciation.
Adjusted EBITDA is defined as EBITDA excluding (1) non-cash
compensation expense, (2) non-cash impairment charges, (3)
gain/loss on disposal of assets, (4) gain/loss on investments, (5)
restructuring and severance expenses, (6) litigation settlements
and contingencies, (7) acquisitions and dispositions income or
expense (including with respect to changes in fair value of
contingent consideration), (8) contributions to the LendingTree
Foundation (9) dividend income, and (10) one-time items.
Adjusted net income is defined as net (loss) income from
continuing operations excluding (1) non-cash compensation expense,
(2) non-cash impairment charges, (3) gain/loss on disposal of
assets, (4) gain/loss on investments, (5) restructuring and
severance expenses, (6) litigation settlements and contingencies,
(7) acquisitions and dispositions income or expense (including with
respect to changes in fair value of contingent consideration), (8)
gain/loss on extinguishment of debt, (9) contributions to the
LendingTree Foundation, (10) one-time items, (11) the effects to
income taxes of the aforementioned adjustments, (12) any excess tax
benefit or expense associated with stock-based compensation
recorded in net income in conjunction with FASB pronouncement ASU
2016-09, and (13) income tax (benefit) expense from a full
valuation allowance.
Adjusted net income per share is defined as adjusted net income
divided by the adjusted weighted average diluted shares
outstanding. For periods which the Company reports GAAP loss from
continuing operations, the effects of potentially dilutive
securities are excluded from the calculation of net loss per
diluted share from continuing operations because their inclusion
would have been anti-dilutive. In periods where the Company reports
GAAP loss from continuing operations but reports positive non-GAAP
adjusted net income, the effects of potentially dilutive securities
are included in the denominator for calculating adjusted net income
per share if their inclusion would be dilutive.
LendingTree endeavors to compensate for the limitations of these
non-GAAP measures by also providing the comparable GAAP measures
with equal or greater prominence and descriptions of the
reconciling items, including quantifying such items, to derive the
non-GAAP measures. These non-GAAP measures may not be comparable to
similarly titled measures used by other companies.
One-Time Items
Adjusted EBITDA and adjusted net income are adjusted for
one-time items, if applicable. Items are considered one-time in
nature if they are non-recurring, infrequent or unusual, and have
not occurred in the past two years or are not expected to recur in
the next two years, in accordance with SEC rules. For the periods
presented in this report, there are no adjustments for one-time
items, except for the $1.5 million
franchise tax caused by the equity investment gain in Stash.
Non-Cash Expenses That Are Excluded From LendingTree's
Adjusted EBITDA and Adjusted Net Income
Non-cash compensation expense consists principally of expense
associated with the grants of restricted stock, restricted stock
units and stock options. These expenses are not paid in cash and
LendingTree includes the related shares in its calculations of
fully diluted shares outstanding. Upon settlement of restricted
stock units, exercise of certain stock options or vesting of
restricted stock awards, the awards may be settled on a net basis,
with LendingTree remitting the required tax withholding amounts
from its current funds. Cash expenditures for employer payroll
taxes on non-cash compensation are included within adjusted EBITDA
and adjusted net income.
Amortization of intangibles are non-cash expenses relating
primarily to acquisitions. At the time of an acquisition, the
intangible assets of the acquired company, such as purchase
agreements, technology and customer relationships, are valued and
amortized over their estimated lives. Amortization of
intangibles are only excluded from adjusted EBITDA.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
The matters contained in the discussion above may be considered
to be "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as
amended by the Private Securities Litigation Reform Act of 1995.
Those statements include statements regarding the intent, belief or
current expectations or anticipations of LendingTree and members of
our management team. Factors currently known to management that
could cause actual results to differ materially from those in
forward-looking statements include the following: adverse
conditions in the primary and secondary mortgage markets and in the
economy, particularly interest rates and inflation; default rates
on loans, particularly unsecured loans; demand by investors for
unsecured personal loans; the effect of such demand on interest
rates for personal loans and consumer demand for personal loans;
seasonality of results; potential liabilities to secondary market
purchasers; changes in the Company's relationships with network
partners, including dependence on certain key network partners;
breaches of network security or the misappropriation or misuse of
personal consumer information; failure to provide competitive
service; failure to maintain brand recognition; ability to attract
and retain consumers in a cost-effective manner; the effects of
potential acquisitions of other businesses, including the ability
to integrate them successfully with LendingTree's existing
operations; accounting rules related to contingent consideration
and excess tax benefits or expenses on stock-based compensation
that could materially affect earnings in future periods; ability to
develop new products and services and enhance existing ones;
competition; effects of changing laws, rules or regulations on our
business model; allegations of failure to comply with existing or
changing laws, rules or regulations, or to obtain and maintain
required licenses; failure of network partners or other affiliated
parties to comply with regulatory requirements; failure to maintain
the integrity of systems and infrastructure; liabilities as a
result of privacy regulations; uncertainty regarding the duration
and scope of the coronavirus referred to as COVID-19 pandemic;
actions governments and businesses take in response to the
pandemic, including actions that could affect levels of advertising
activity; the impact of the pandemic and actions taken in response
to the pandemic on national and regional economies and economic
activity; the pace of the ongoing recovery from the COVID-19
pandemic subside; failure to adequately protect intellectual
property rights or allegations of infringement of intellectual
property rights; and changes in management. These and additional
factors to be considered are set forth under "Risk Factors" in our
Annual Report on Form 10-K for the period ended December 31, 2022, and in our other filings with
the Securities and Exchange Commission. LendingTree undertakes no
obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results or expectations.
About LendingTree, Inc.
LendingTree, Inc. is the parent of LendingTree, LLC
and several companies owned by LendingTree, LLC (collectively,
"LendingTree" or the "Company").
LendingTree is one of the nation's largest, most experienced
online financial platforms, created to give consumers the power to
win financially. LendingTree provides customers with access
to the best offers on loans, credit cards, insurance and more
through its network of over 600 financial partners. Since its
founding, LendingTree has helped millions of customers obtain
financing, save money, and improve their financial and credit
health in their personal journeys. With a portfolio of innovative
products and tools and personalized financial recommendations,
LendingTree helps customers achieve everyday financial wins.
LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please
visit www.lendingtree.com.
Investor Relations
Contact:
investors@lendingtree.com
Media Contact:
press@lendingtree.com
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SOURCE LendingTree, Inc.