LendingTree (TREE) Q3 2024 earnings summary

Executive summary

• Revenue grew 68% year-over-year to $260.8 million in Q3 2024, driven by a 210% increase in Insurance segment revenue and sequential growth in Consumer segment revenue.

• Adjusted EBITDA reached $27 million, up 23% year-over-year, highlighting improved profitability and strong insurance performance.

• Net loss narrowed to $58.0 million, or $(4.34) per share, including a $58.4 million non-cash impairment of equity investments.

• Operating income was $9.9 million, reversing a $34.0 million loss in Q3 2023, as Insurance segment demand surged.

• Spring™ platform reached 30.7 million users, with 1.2 million net new users added in Q3 2024.

Financial highlights

• Q3 2024 revenue: $260.8 million (up 68% year-over-year); nine-month revenue: $638.7 million (up 19%).

• Adjusted EBITDA: $26.9 million in Q3 2024, $71.9 million for nine months, both up year-over-year.

• Variable marketing margin was $77.2 million, up 14% year-over-year, representing 30% of revenue.

• Cash and cash equivalents: $96.8 million as of September 30, 2024.

• Net loss per share: $(4.34) in Q3 2024 vs. $(11.43) in Q3 2023.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $870–$880 million, with adjusted EBITDA expected at $92–$95 million.

• Q4 2024 revenue projected at $231–$241 million, with variable marketing margin of $69–$74 million and adjusted EBITDA of $20–$23 million.

• Insurance and home equity expected to offset seasonal headwinds in Q4, with insurance margins anticipated to improve.

• Company anticipates sufficient liquidity for the next twelve months and beyond, with $50 million available from the 2024 Term Loan.