LendingTree Q4 2023 Financial Results Prompt Sell Off

By Bobby Samwell • Tuesday, February 27 15:21 • Permanent Link

LendingTree, Inc. has reported its financial results for the fourth quarter of 2023, showing resilience despite challenging economic conditions. The company's consolidated revenue for the quarter was $134.4 million, representing a 33% decrease from the same period in 2022 and a 13% decrease from the third quarter of 2023.

The company's GAAP net income for the quarter was $12.7 million, or $0.98 per diluted share. This marks a significant improvement from the same period in 2022, when the company reported a net loss of $10.4 million. However, compared to the third quarter of 2023, net income decreased by 109%.

LendingTree's variable marketing margin for the quarter was $60.6 million, down 22% from the fourth quarter of 2022 and down 10% from the third quarter of 2023. The company also reported adjusted EBITDA of $15.5 million, representing a 7% decrease from the same period in 2022 and a 29% decrease from the third quarter of 2023. Similarly, adjusted net income per share was $0.28, down 26% from the fourth quarter of 2022 and down 54% from the third quarter of 2023.

In terms of segment performance, the home segment revenue decreased by 48% over the fourth quarter of 2022, while the consumer segment revenue decreased by 43% over the same period. Additionally, the insurance segment revenue decreased by 11% from the fourth quarter of 2022.

Despite the challenges faced in 2023, LendingTree generated $78.5 million of aEBITDA and $55 million of free cash flow for the year. The company also repurchased $100 million of its 2025 convertible notes at a discount to par and maintained $112 million of cash on its balance sheet.

In conclusion, LendingTree remains focused on navigating the evolving economic landscape and capitalizing on growth opportunities in multiple lending categories, as evidenced by its efforts to simplify operations, reduce costs, improve technology and data infrastructure, and strengthen its balance sheet.

The market has reacted to these announcements by moving the company's shares -4.5% to a price of $32.73. For more information, read the company's full 8-K submission here.

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