Continued Growth in Consumer Segment Offset by Macro
Headwinds Across Home and Insurance
- Consolidated revenue of $237.8
million
- GAAP net loss from continuing operations of $(158.7) million or $(12.44) per diluted share, inclusive of a
$139.7 million noncash loss from a
full valuation allowance of deferred tax assets
- Variable marketing margin of $74.7
million, inclusive of a $15.5
million investment in our brand campaign
- Adjusted EBITDA of $9.8
million
- Adjusted net loss per share of $(0.36)
CHARLOTTE, N.C., Nov. 3, 2022
/PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE), operator of
LendingTree.com, the nation's leading online financial services
marketplace, today announced results for the quarter ended
September 30, 2022.
The company has posted a letter to shareholders on the company's
website at investors.lendingtree.com.
"This quarter we re-introduced LendingTree to consumers by
recommitting to our brand promise of helping them win
financially. This was reflected in the updated tagline:
LendingTree - You Win! We launched the updated brand positioning
with new advertising creative, a redesigned home page, updated form
flows, offer pages, and enhanced post-submit communications. We
timed the launch to take advantage of a very efficient media
expense environment to gain maximum exposure during the period."
said Doug Lebda, Chairman and
CEO. "Initial results have been quite positive, with aided
awareness at all time highs and both positive impression and
understanding of our brand gaining significantly over prior
periods. Our brand is our key asset, and is central to our
growth strategy. Our ability to improve the mix of organic
traffic will help us remain connected with our consumers over time,
driving acquisition costs lower, improve monetization and,
most importantly, generate a better overall consumer experience.
Given the emerging economic headwinds, successfully executing on
this strategy has sharpened our focus on delivering consumers the
best financial advice when and where they need it. I could
not be more excited about the future of our company."
Trent Ziegler, CFO, added, "Our
Consumer segment continued to grow as expected, and a record
performance for our Home Equity offering within our Home segment
helped to somewhat offset the headwinds our lender partners are
facing in mortgage. This quarter presented many of the same
challenges as recent periods, namely reduced demand for mortgage
loans due to rising interest rates and a pause in customer
acquisition activity for insurance carriers as they raise premium
rates in response to inflationary pressures. Encouragingly,
variable marketing margins across all three of our reportable
segments were stable versus a year ago, highlighting the durability
of our variable marketing model through all stages of the economic
cycle. We maintain significant financial flexibility with
$286 million of cash on the balance
sheet, and we are committed to managing our business prudently
through this environment. Subsequent to quarter-end we
completed a fixed cost analysis that will reduce our annualized
operating expenses by $25M, which is
expected to be fully realized in 2023."
Third Quarter 2022 Business Highlights
- Home segment revenue of $64.9
million decreased 42% over third quarter 2021 and produced
segment profit of $24.1 million, down
42% over the same period.
-
- Within Home, mortgage products revenue of $34.5 million declined 63% over prior year,
partially offset by 52% growth in home equity.
- Consumer segment revenue of $102.7
million grew 3% over third quarter 2021.
-
- Within Consumer, personal loans revenue of $37.7 million grew 12% over prior year.
- Revenue from our small business offering grew 9% over prior
year.
- Credit card revenue of $24.3
million was down 10% over prior year.
- Insurance segment revenue of $70.2
million decreased 17% over third quarter 2021 and translated
into segment profit of $22.6 million,
down 15% over the same period.
- Through September 30, 2022, 23.9
million consumers have signed up for MyLendingTree.
LendingTree Summary
Financial Metrics
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Y/Y
|
|
|
Three Months
Ended
June 30,
|
|
Q/Q
|
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
2022
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
237.8
|
|
$
297.4
|
|
(20) %
|
|
|
$
261.9
|
|
(9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
$ (22.8)
|
|
$
(4.4)
|
|
(418) %
|
|
|
$
(10.4)
|
|
(119) %
|
|
Income tax (expense)
benefit
|
$
(135.9)
|
|
$
—
|
|
— %
|
|
|
$
2.4
|
|
|
|
Net loss from
continuing operations
|
$
(158.7)
|
|
$
(4.4)
|
|
|
|
|
$
(8.0)
|
|
|
|
Net loss from
continuing operations % of
revenue
|
(67) %
|
|
(1) %
|
|
|
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
(12.44)
|
|
$
(0.33)
|
|
|
|
|
$
(0.63)
|
|
|
|
Diluted
|
$
(12.44)
|
|
$
(0.33)
|
|
|
|
|
$
(0.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable marketing
margin
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$ 237.8
|
|
$
297.4
|
|
(20) %
|
|
|
$
261.9
|
|
(9) %
|
|
Variable marketing
expense (1) (2)
|
$
(163.1)
|
|
$
(191.5)
|
|
(15) %
|
|
|
$
(171.1)
|
|
(5) %
|
|
Variable marketing
margin (2)
|
$
74.7
|
|
$
105.9
|
|
(29) %
|
|
|
$
90.8
|
|
(18) %
|
|
Variable marketing
margin % of revenue (2)
|
31 %
|
|
36 %
|
|
|
|
|
35 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
9.8
|
|
$
41.0
|
|
(76) %
|
|
|
$
28.6
|
|
(66) %
|
|
Adjusted EBITDA %
of revenue (2)
|
4 %
|
|
14 %
|
|
|
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income (2)
|
$
(4.6)
|
|
$
10.3
|
|
(145) %
|
|
|
$
7.6
|
|
(161) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income per share (2)
|
$
(0.36)
|
|
$
0.75
|
|
(148) %
|
|
|
$
0.58
|
|
(162) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
September
30,
|
|
Y/Y
|
|
|
Three Months
Ended
June 30,
|
|
Q/Q
|
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
2022
|
|
%
Change
|
|
Home (1)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 64.9
|
|
$
112.4
|
|
(42) %
|
|
|
$
73.9
|
|
(12) %
|
|
Segment
profit
|
$ 24.1
|
|
$ 41.5
|
|
(42) %
|
|
|
$
26.7
|
|
(10) %
|
|
Segment profit % of
revenue
|
37 %
|
|
37 %
|
|
|
|
|
36 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
(2)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 102.7
|
|
$
100.0
|
|
3 %
|
|
|
$
106.1
|
|
(3) %
|
|
Segment
profit
|
$ 45.8
|
|
$ 44.7
|
|
2 %
|
|
|
$
44.6
|
|
3 %
|
|
Segment profit % of
revenue
|
45 %
|
|
45 %
|
|
|
|
|
42 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 70.2
|
|
$ 84.8
|
|
(17) %
|
|
|
$
81.8
|
|
(14) %
|
|
Segment
profit
|
$ 22.6
|
|
$ 26.6
|
|
(15) %
|
|
|
$
22.6
|
|
— %
|
|
Segment profit % of
revenue
|
32 %
|
|
31 %
|
|
|
|
|
28 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (4)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
—
|
|
$
0.2
|
|
(100) %
|
|
|
$
0.1
|
|
(100) %
|
|
(Loss)
profit
|
$
(0.2)
|
|
$
0.1
|
|
(300) %
|
|
|
$
(0.1)
|
|
(100) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$ 237.8
|
|
$
297.4
|
|
(20) %
|
|
|
$
261.9
|
|
(9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment
profit
|
$
92.3
|
|
$
112.9
|
|
(18) %
|
|
|
$
93.8
|
|
(2) %
|
|
Brand marketing expense
(5)
|
$
(17.6)
|
|
$
(7.0)
|
|
151 %
|
|
|
$
(3.0)
|
|
487 %
|
|
Variable marketing
margin
|
$
74.7
|
|
$
105.9
|
|
(29) %
|
|
|
$
90.8
|
|
(18) %
|
|
Variable marketing
margin % of revenue
|
31 %
|
|
36 %
|
|
|
|
|
35 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The Home segment
includes the following products: purchase mortgage, refinance
mortgage, home equity loans, and reverse mortgage loans.
|
(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 2022 outlook which implies
the following ranges for the fourth-quarter. Our forecast
assumes a partial benefit from recently completed expense
reductions offset by continued headwinds in the Home segment, as
well as seasonal patterns that have historically weighed on our 4Q
results.
Full-year 2022:
- Revenue: $985 - $1,000 million compared to the prior range of
$985 - $1,015
million
- Variable Marketing Margin: $330 -
$340 million versus $325 - $345 million
prior
- Adjusted EBITDA: $77 -
$82 million versus prior range of
$75 - $85
million
Fourth-quarter 2022:
- Revenue: $202 - $217 million
- Variable Marketing Margin: $70 -
$80 million
- Adjusted EBITDA: $9 -
$14 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 third quarter 2022
financial results will be webcast live today, November 3, 2022 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 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
|
|
September
30,
2022
|
June 30,
2022
|
September
30,
2021
|
|
(in
thousands)
|
Selling and
marketing expense
|
$
176,875
|
$
184,537
|
$
206,475
|
Non-variable selling
and marketing expense (1)
|
(13,731)
|
(13,385)
|
(14,928)
|
Variable marketing
expense
|
$
163,144
|
$
171,152
|
$
191,547
|
|
|
(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 loss from continuing operations to variable
marketing margin and net loss from continuing operations % 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
|
|
September
30,
2022
|
June 30,
2022
|
September
30,
2021
|
|
(in thousands,
except percentages)
|
Net loss from
continuing operations
|
$
(158,683)
|
$
(8,038)
|
$
(4,406)
|
Net loss from
continuing operations % of revenue
|
(67) %
|
(3) %
|
(1) %
|
|
|
|
|
Adjustments to
reconcile to variable marketing margin:
|
|
|
|
Cost of
revenue
|
14,105
|
14,574
|
15,020
|
Non-variable selling
and marketing expense (1)
|
13,731
|
13,385
|
14,928
|
General and
administrative expense
|
39,540
|
40,289
|
40,126
|
Product
development
|
14,043
|
14,318
|
13,384
|
Depreciation
|
5,274
|
4,896
|
4,808
|
Amortization of
intangibles
|
6,582
|
7,075
|
10,345
|
Change in fair value
of contingent consideration
|
—
|
—
|
(196)
|
Restructuring and
severance
|
—
|
135
|
47
|
Litigation settlements
and contingencies
|
(7)
|
(7)
|
22
|
Interest expense,
net
|
5,720
|
6,765
|
11,826
|
Other (income)
expense
|
(1,523)
|
(284)
|
—
|
Income tax expense
(benefit)
|
135,910
|
(2,337)
|
(1)
|
Variable marketing
margin
|
$
74,692
|
$
90,771
|
$ 105,903
|
Variable marketing
margin % of revenue
|
31 %
|
35 %
|
36 %
|
|
|
(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 loss from continuing operations to adjusted
EBITDA and net loss from continuing operations % 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
|
|
September
30,
2022
|
June 30,
2022
|
September
30,
2021
|
|
(in thousands,
except percentages)
|
Net loss from
continuing operations
|
$
(158,683)
|
$
(8,038)
|
$
(4,406)
|
Net loss from
continuing operations % of revenue
|
(67) %
|
(3) %
|
(1) %
|
Adjustments to
reconcile to adjusted EBITDA:
|
|
|
|
Amortization of
intangibles
|
6,582
|
7,075
|
10,345
|
Depreciation
|
5,274
|
4,896
|
4,808
|
Restructuring and
severance
|
—
|
135
|
47
|
Loss on impairments
and disposal of assets
|
834
|
2,996
|
1,251
|
Non-cash
compensation
|
15,575
|
17,335
|
17,074
|
Change in fair value
of contingent consideration
|
—
|
—
|
(196)
|
Acquisition
expense
|
104
|
58
|
227
|
Litigation settlements
and contingencies
|
(7)
|
(7)
|
22
|
Interest expense,
net
|
5,720
|
6,765
|
11,826
|
Dividend
income
|
(1,523)
|
(282)
|
—
|
Income tax expense
(benefit)
|
135,910
|
(2,337)
|
(1)
|
Adjusted
EBITDA
|
$
9,786
|
$
28,596
|
$
40,997
|
Adjusted EBITDA %
of revenue
|
4 %
|
11 %
|
14 %
|
LENDINGTREE'S RECONCILIATION OF NON-GAAP
MEASURES TO GAAP
|
|
Adjusted Net
Income
|
|
Below is a
reconciliation of net loss from continuing operations to adjusted
net (loss) income and net loss per diluted share from continuing
operations to adjusted net (loss) 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
|
|
September
30,
2022
|
June 30,
2022
|
September
30,
2021
|
|
(in thousands,
except per share amounts)
|
Net loss from
continuing operations
|
$
(158,683)
|
$
(8,038)
|
$
(4,406)
|
Adjustments to
reconcile to adjusted net income:
|
|
|
|
Restructuring and
severance
|
—
|
135
|
47
|
Loss on impairments
and disposal of assets
|
834
|
2,996
|
1,251
|
Non-cash
compensation
|
15,575
|
17,335
|
17,074
|
Change in fair value
of contingent consideration
|
—
|
—
|
(196)
|
Acquisition
expense
|
104
|
58
|
227
|
Litigation settlements
and contingencies
|
(7)
|
(7)
|
22
|
Income tax benefit
from adjusted items
|
(3,842)
|
(5,364)
|
(4,687)
|
Excess tax expense
from stock-based compensation
|
1,752
|
438
|
938
|
Income tax (benefit)
expense from valuation allowance
|
139,670
|
—
|
—
|
Adjusted net (loss)
income
|
$
(4,597)
|
$
7,553
|
$
10,270
|
|
|
|
|
Net loss per diluted
share from continuing operations
|
$
(12.44)
|
$
(0.63)
|
$
(0.33)
|
Adjustments to
reconcile net loss from continuing operations to adjusted net
(loss) income
|
12.08
|
1.22
|
1.10
|
Adjustments to
reconcile effect of dilutive securities
|
—
|
(0.01)
|
(0.02)
|
Adjusted net (loss)
income per share
|
$
(0.36)
|
$
0.58
|
$
0.75
|
|
|
|
|
Adjusted weighted
average diluted shares outstanding
|
12,758
|
12,936
|
13,707
|
Effect of dilutive
securities
|
—
|
213
|
439
|
Weighted average
diluted shares outstanding
|
12,758
|
12,723
|
13,268
|
Effect of dilutive
securities
|
—
|
—
|
—
|
Weighted average
basic shares outstanding
|
12,758
|
12,723
|
13,268
|
LENDINGTREE'S PRINCIPLES OF FINANCIAL REPORTING
LendingTree reports the following non-GAAP measures as
supplemental to GAAP:
- Variable marketing margin, including variable marketing
expense
- 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 margin is a measure of the efficiency of the
Company's operating model, measuring revenue after subtracting
variable marketing and advertising costs that directly influence
revenue. 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. Variable marketing margin and variable marketing margin
% of revenue are primary metrics by which the Company measures the
effectiveness of its marketing efforts.
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 income from continuing operations and GAAP income per diluted
share from continuing operations by enabling investors to make
period to period comparisons of those components of the nearest
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, 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 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
from continuing operations and GAAP income per diluted share from
continuing operations.
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) dividend income, and (9) 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) one-time items, (10) the
effects to income taxes of the aforementioned adjustments, (11) any
excess tax benefit or expense associated with stock-based
compensation recorded in net income in conjunction with FASB
pronouncement ASU 2016-09, and (12) income tax (benefit) expense
from a 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.
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: 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 recovery when the
COVID-19 pandemic subsides; adverse conditions in the primary and
secondary mortgage markets and in the economy, particularly
interest rates; 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 lenders, including dependence
on certain key network lenders; 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; allegations of
failure to comply with existing or changing laws, rules or
regulations, or to obtain and maintain required licenses; failure
of network lenders 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; 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, 2021, in our Quarterly Report on
Form 10-Q for the period ended June 30,
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 (NASDAQ: TREE) is one of the
nation's largest, most experienced online marketplaces,
created to give power to consumers so more people can win
financially. LendingTree strives to provide consumers with
easy access to the best offers on home loans, personal
loans, insurance, credit cards, student loans, business loans, home
equity loans/lines of credit, auto loans and more, through its
network of over 500 partners. Founded in 1996 and launched
nationally in 1998, LendingTree has helped over 111 million
consumers obtain financing, save money, and improve their financial
and credit health with transparency, education, and support
throughout their financial journey.
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.