LendingTree is a small-cap consumer finance company that operates an online consumer platform in the U.S., including three segments: Home, Consumer, and Insurance. 🏦
While it’s typically an under-the-radar name, it’s making headlines today after its fourth-quarter revenue missed expectations.
The company’s adjusted earnings per share of $0.38 beat the $1.27 loss expected. However, revenues of $202.1 million missed the consensus view of $208.16 million. 🔻
Driving those results were the following segment results:
- Home segment revenue of $48.6 million (-50% YoY);
- Consumer segment revenue of $86.2 million (-11% YoY); and
- Insurance segment revenue of $67 million (-17% QoQ).
Looking forward, executives expect Q1 2023 revenue of $200 to $210 million vs. the analyst estimate of $231.6 million. Its full-year 2023 revenue estimate of $935 to $985 million is also below the consensus estimate and represents a 0 to 5% YoY decline. Full-year adjusted EBITDA guidance of $85 to $95 million anticipates 1 to 12% growth. 🔮
As financial services and consumer activity continue to slow (particularly in the housing market), LendingTree’s business is taking a hit. However, it’s launching new products like the LendingTree Win Card to its MyLendingTree platform to further drive user growth and lifetime customer value. It also has $299 million of cash on its balance sheet to help it weather the current, more challenging climate.
$TREE shares were down about 14% on the news. 📉
