LendingTree (TREE) 26 Apr 182018 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the LendingTree Inc.

First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would like to introduce your host for today's conference, Doug Lebda, Chief Executive Officer.

begin. may You

quarter, thank our this and our to for attending cover progress financials the to my business quarter's on Thanks, discuss the initiatives. and I you J.D. want guidance. call the first in performance morning. on made time and relevant to the updates thoughts the against operator, we've LendingTree's all provide strategic use results share then this will

a we let first disclaimer. Before provide quick jump, me

discuss LendingTree's future may expectations, outlooks During for we today's plans, or forecast performance. call,

on Forward-looking expect, we filed you Many statements could results statements uncertainties to in will or we not and but a today's statements. described are as typically periodic GAAP. are today's and face preceded by the measure, non-GAAP today. actual for forward-looking we LendingTree's definitions other differ to all words the full press of such website materially These are I SEC. we On risks LendingTree's anticipate reconciliations subject non-GAAP measures and call, from with available to of believe, the comparable the risks number our measures, we refer and at expressed similar GAAP of investors.lendingtree.com views discuss reports release

been key thrilled invest long the to Now the and we also our first continue our lean dive mortgage to in with to in of invest in industry Overall, let's able I quarter business in. we've term. am diversification, outpace strong and LendingTree's performance, where aspects and for thanks

highly consumers to extremely well. and lenders. of focused tough remain environment, performing non-mortgage in our businesses face the mortgage we mission and are help on our grew a business Our both And macro

and realize her dedicated want Day [indiscernible] same mission his their time, are our on initiatives. financial consumer to we to help situation. for and we find save lenders financial and Analyst standing, internally are their But improve of progress capture services all our going At sense strategic money to to these last sometimes At all efficiency. the making. I'd to providers right We our about know, like with financial to credit every are a them transactions. their you numbers of we helping Clearly, four come. initiatives the helping spoke financial customers their the consumers good. you goals quarter, for give the business As that that business be focus to to those grow on regardless pillars propel our help or don't two years Today, are

commitment customers major My to X My relationship redefining users. in talked that this strengthening and LendingTree X added Registered and consumer. to million. year-over-year, My In LendingTree grew some past. LendingTree nearly have million First what's our stand to we potential contribution about revenue about more QX, and engage the the But brand. consumers with the pillar the XX% exciting March year further A tremendous with obviously is our this developments are at is now of LendingTree, you in component we've of

LendingTree March, co-branded in Block provides block H&R seamless which consumers with partnership our announced with experience. we a My First, HNR

For to HNR their with to them Block, beyond tax customers this find a enables way season. engage

new is this LendingTree, marketing and way and consumers. a reach to channel For a help

we've the we our My also partnership integration. is this to this in for functionality My the base, adding partners talked LendingTree platform consumer is this accretive, been and companies, both My can and advantage two and has financially of and the about already the template a and This any both For user great the business great are real example already We My is deal other interest of with with in LendingTree the LendingTree examples XXXX, thrilled approach in deepening relationship to We've with about the expanding have consumer. QX. a and deal But development pipeline. that so value integrate doing are rapidly. LendingTree platform in easily

credit This basis all for is confirm them be monitors a any free changes app a and LendingTree within within activity. this To profiles First, minutes addition the clear, through My a we a the is with the partnership not credit announced platform within enrolled on notifies alerted just LendingTree platform. or notification, notification users. of XX of of credit monitoring report changes TransUnion, of users of activity users once push free mobile be received, the via Users score. credit the and can dispute will daily

which and personalization. consumers new try. and recommendations, customized consumers situation encourage you and I information we've to insight made on analysis presents instant strengthening product based understand into person's interface I our offers their Second, we goals. priorities Therefore, users. engines goals. to financial consumer analyzer credit new through is and progress our individual give highly user credit financial their free tool realize we the enables our deeper us and are financial Overall, consumers towards thrilled the based to and utility with credit great this debt recommendations people's personalized of with This gain is a relationship for am goal to tool a rule that help flexible launched provide innovation content a the provide able and to a of situations, this

what create machine real highly Our to through consumer it personalized they experienced when goal learning. for time data want every consumer, is the wants, and providing exactly

The the particularly the second to mortgage. want in experience is discuss consumer initiative transformation I of

our numbers encouraged are directed outside our On and so they lenders, active has or or experience. that, services positive experience, well for we either currently XX% of of to on As a clear impressive attract we our friend, experience incredibly any as our had as to experience, neutral lenders, consumers. financial new LendingTree direct who less positive who recommend consumers are more testing, business. testing potential the to These ramp and current top new the In XX% are the up a the network. new feedback from would to traffic by new are

every we mission it sides is and results critical exactly our our well. say proud we Our day, quarter help the do XXXX. are that exchange. we in if our of guidance. towards With also this am and and only our to to in did both deliver go single that hand this while need investors goals on consumers to first I in that D. making that to can for And both we lenders investments as I'll do through over and J. well we

and the to financials discuss his everyone. joining full some the on results color more for Thank XXXX. detail, Great. the I'd all for Thanks and today. having our take With business, in morning, like quarter's second on year and us Doug you Doug, for already good provide guidance quarter provided

We bottom robust the in are line report growth. we top to to first navigated quarter, again deliver proud macro and a that challenging once environment

of $XXX November represents that consolidated quarter of XX%, revenue guidance. year exceeding of QX where is end XXXX the Our our worth inclusive million, this growth prior first reminder the CompareCards high prior is comparable year-over-year the of acquisition. fully It our is

for within testament the provide year. is to With growth type is aiming up they revenue need lenders volume generated And $XX.X Bankers especially that mortgage XX% most. is to our in this to environment sustained mortgage, according Association, to volumes contracting Mortgage of what to we're ability predictable XX% a when our it down exactly deliver. refinance and our at continuing year-over-year. that is broader we the interest XX% in quarter, the of by What we grew revenue business, refi rates the rise from remarkable prior million Looking industry

position the to Fortunately, the this business several diversification put the of difficult lender a fulfill demand in invest has in the and macro continue years environment, in over experience. better to last consumer us to

this refinancing continue to non- up and a quarter. Personal to really non record This year-over-year, to $XXX.X compared we year-on-year. lien in tends grow revenue revenue our XX% to be record by LendingTree be with market. beginning represents XX% home this which a high to enter mortgage, hit loans traditional a for XX% equity space, nicely, and continued of $XX -mortgage non-mortgage impress, more at Speaking prior total to the With position represents growing million, the banks million XX% of of encouraged year. at revenue. substitute diversification, total now first growth continues revenue in Within

Our to show continue credit well, of revenue It million, in year-on-year. growth business with our growth strong XX% card reflecting card first is as remains encouraging strong clean $XX.X combined business period. our to see comparable

made benefits really XXXX And businesses acquisitions trend certain are stand reliance key noting of we one individually, share We issuers, And that while it worth strides with there reducing is in well. are expand finally, not taking these the very highlights we great do made LendingTree in that the to to platform. out quarter, further we disclose continue single confident relationship the our issuer. the any on we In business.

in doubled since acquired XXXX June business. nearly business XX% sequential the see of We enjoy remarkable a lot has acquisition. growth deposits that upside QX. in the And Our in

margins. Moving on to

Our million, $XX in Variable at Marketing up year-on-year. XX% came margin

materializing, Our efforts sustained growth LendingTree. CRM with high channels are from SEO along to like contribution and in My the scale of margin

remains are And in earnings expected minutes the stock in large as expected share burden the held we spent XXXX. And a solid. $XX.X very grew a profile we this their expense in year call, quarter be million. margin this Our Adjusted to we that XXXX. prior employee incremental our employee of XX% exercise related to the is year forced August. EBITDA options discussing in of extraordinary options as several amount result. And last the that sales exercised would has Doug since Recall incur a would year-on-year to portion that reminder, expiration

to an million By million QX QX, $X.X As on sized impact activity $X.X in tax expense year, million for XXXXwere to on $X equity awards $X.X to the the expense and that on million quarter. total full equity taxes the awards of million. Based be realized in expense in on $X incremental payroll implications, payroll comparison, of first $XXX,XXX. we the estimated

that And earnings the acknowledge of these and true business. profile we is this expenses, them we year. cash this should providing you visibility to transparency are into the unique fully that better power of While think the relatively give number real magnitude into

Now million in highlight. GAAP impacted $X.XX results, turning million, results net income were The $XX.X GAAP per to favorably share. quarter. to at operations couple $XX.X the GAAP diluted or a things are continuing benefit tax by there came in from

But by disclosure function more benefit Q. discrete regarding with options tax a million normal of S the benefit benefit the use. course provision, our $XX.X of employee see a in the $X.X million in will conjunction of $XX.X You is exercise million investing offset

first shares average sheet $XXX the quarter. nearly our and maintained again bought back quarter, share was more on a of last a we with increase The stock. average driven million quarter, of diluted debt. consistent the again that XX,XXX largely the $XXX in the million at quarter mitigate in items, extraneous the tax increase adjusted our to XX.X prior compared the Excluding $X.XX, $XXX the balance from were QX price price in to we we our Tree in unrestricted of to substantially material million repurchase XX% average benefit saw help to $X.XX, diluted than quarter million of diluted share Lending QX. In and our To approach the XX.X compared convertible other repurchasing to authorization account. With was that of in stock up earnings remaining. An now of Similar dilution, in some weighted by impact per the trading share shares $XXX higher last year. cash effects

the provide aggressive context more a We around that bit our choose. have me With let to of we should guidance. capacity be

We existing full-year are guidance. our reaffirming

set deliver XX% for that. deliver for investors. we with diversification Our to approximately we initial one out track growth top and guidance line are do exactly year on quarter bottom in And to hand, The the previously in allows put us many to enviable position place and investors important that initiatives an Doug a of It to - exceptional highlighted. growth position. puts the in take for on have in us

We well-positioned this exceptional years for to to for but on not investors year, being deliver only growth focused growth on come. delivering are many

million is morning to be million to profile. also the XX% is second XX% $XX with anticipated growth. Revenue to representing be $XX to $XX $XX to million million. representing XX% expected adjusted be that QX, over quarter growth second to growth quarter to million Our is $XXX EBITDA XX% million, year-over-year to million, consistent this expected released is million, growth Variable outlook of for margin $XX XXXX. $XX to representing to And to $XXX Marketing

continued to estimate extraordinary experience to The our mortgage, driving to EBITDA macro outpace taxes $X penetration. quarter the to Second related payroll a of equity across To well very thanks continue In up we businesses challenging mortgage categories. year. operator, on environment. $X acutely the great all close, and adjusted start guidance let's in includes for a the to that performing we million with we're in quarter extremely the we're an increasing off million. diversification, to open focused non-mortgage And are end market of the Q&A. can to goal improve industry, And

And our from John question line Campbell Instructions] Inc. first the with Stephens [Operator comes of

now open. line is Your

kind that's to grow? don't but level, good or guys, want to kind segment this I guys down check you simply several how on just good to going going couple Hey, growth I quarters. pace guys a morning. on there for you Hey, first just guess thoughts to Any know that's last for the I how HELOC items. quick any of year. guide product expectation of really on

to business to maybe We're you, be a good option. put thrilled And can aren't continue if specific in. pace home the this come when really at the one too. as wouldn't lenders of not to continuing off very, of business improve, us for about as of out parts should is I continues it there, well better other a our very high mortgage home the equity talk first many all the the John, and thing that great a fastest our while home is offer think, times I refinancing if the to can equity loan values automation and fastest with at certainly growing HELOC pace think percentages I not

thing that add would in John, about you ago, is year XX%. the of if that's at number active space the relative look just to lenders a I only up

that health So the of us. the it of health for speaks network to obviously the space and

marketing And versus VMM --it that it, spent, Absolutely. year-over-year. general maybe some was of side, and is up spent other guys broadcast and the How other which of maybe stuff? much That you've on obviously looked got TV just then kind of is marketing have you it promotional exchange was side up spent, stuff. then that double like brands broadcast the

Yes, no, it's in VMM. all

just and we've that we're deals the mix of year place from you a from John reach. we're the real in benefiting think I greatly giving BD are And marketing put some benefiting that also are over I diversified think us that. last seeing

businesses the non-mortgage businesses also inherently that better that from have expanding. you're think benefit the are margin I seeing platform

helpful. that's Okay,

that this relative marketing expect you year? side. the So to other that to last probably grow year Just

that Yes. that margin that for We're question? sure. seeing And kind that's benefit of structural benefit we're your seeing is

Mark our the And of from RBC. from next question line comes Mahaney

Your open. line now is

but please. Okay, of growth through balance a refi about on two questions too that year, the much is the not of the just talked just time little. One the sustainability

you going extremely on digitization on but of story because know the mortgaging the service. already, are back have your forwards. Where go could please potential the this Secondly the product think touched how much and one impact think of Thank you to that biggest that I that's through more I you increasingly an now you. upside part time have you of important process? Help upside us about impact of digitizing when potential, think businesses? just that

Sure.

the Let the one second continues, just me first digitization. talking is overall just take That continuing. that about

keep mind we're in them entire funnel there's So throughout here digitization levels. making at the all and

debt product, there's loan bringing and we calls. market we continues platform. experience do another to want to continually types, go We digitizing into is pay digitize process comparison lenders - et and is and channels example pass about to want analyzer still easy you're that that you have you which pretty our give lenders, across cetera on buy credit all home, neat. The then put more selected who to the to the drives to on get quarter, with better shop a can the That not application in mortgage are process a going actually marketable based then more that new would a through performance XX the well I I lenders and down of eliminate people phone recommendations after too. bunch make it so and We lender a event. to PII as different project selection to we're and So for have that get internal that actually and

you in more and they've then Ellie performance, [indiscernible] continue and lenders improved and Mae they time going industry pay the as And hundreds and every what's have automation others us. So performance, about like on improve refi. just who want their increase their talk with their do companies of JD you to and they

Mark. hey, Sure,

there mind a while in digits for terms grow are is the double of is in quarters In right. been down, we've the That's obviously on industry refinance several been efficacy One couple overall the here. able of things down And that. going now. of environment, product, the it's face to keep

at ago. I face did at easy when particular you last think refi was growth rate, in And refi if a year a relatively in look in comp actually from did positively QX you when purchase remember face that we year. inflecting you look is actually we

look at you this to It's if partially you you when seems QX. counterintuitive. and look faster say quarter refi the at, that So grew comparison

refi now market That's we going when share of to demonstrate we terms our for period value predictable to volume. sustainability, take because we're we've said as a In through tend they particularly right before true stretch in lenders.

that. there's think And ability to that so do the we

home the equity. when Now in growth at, gave I statistic on look you inactive lenders

think that low single And network. in terms perception in refi on active active lenders are is it's out the there's of our digits lenders declining a that quarter-on-quarter dramatically. I there reality

We really have a active continue lenders. of to network robust

period. do helping because refi through them. volume. business several to help they've have we our weathered this quarters to them And now the declining we're So continues grow now is right But of what get

see our sustainable. do do think So We spending more it's lender network. we in

Thanks, Doug, Thanks J.D.

thing get segments. digitization which get filter they other efficient helps up us they just is And in lenders too, only eases little open than - get customers can as can business connecting credit more offers. that the also monetized that well segments I a I more it a as thing them more on filter also to more One the up add as back open actually bit and

Oppenheimer. Our comes of Kelly the next line question from Jed from

Your line is now open.

Great, question. my thanks for taking

non-marketing just one on the First OpEx.

some the you realize OpEx elevated and we I should continues think was as x related these should about we and how but how year, to that XX% throughout comps percent think get of payroll, some we get the up into your I the to start year expense grow to growing XXXX? throughout is of think hiring non-marking and

we QX were I period hire up caught through and ratio track which half favorable the on is FTE were revenue and in that behind out because last of whack our think strange year just of of obviously something in slow kind in year. Jed Sure. a we per QX of --we went terms well last got and we headcount, back we to

you're comp odd at a think I just there. relatively looking So

little organization headcount what issue. still with in And comp We're we've very a looking to of efficient OpEx as very a we're at with per FTE. think and relative our we've relative to comp, peers, year-over-year comfortable at So you're just I headcount, pretty of as as terms business. but revenue a caught lean our up bit scaled still a revenue, percent

and when insight mortgage it then Can then us you XX% give And and some rate of you're - do call seeing mortgages. think on you over this overall actually could digital revenue? to the of your back some close inflect just

think, loan revenue of it oh if digitization think guys down are extremely, all lenders that the are are big in Well you're Really and depots, our is you're in digitized it's I quickens lenders the the here of the the and extremely smaller you that XX% to like because automated. with over doing what lenders. about definitely terms smaller moving

that of at tens to I look lenders. companies If of thousands with Mae before helping they're there you as said do like Ellie

of types that's an example happens the credit sit things the just can to And without too. around. platform, writing over just on all well forms it around any it I definitely - a already. engine front rules the everywhere there so rules got experience it's analyzer way, demo recommendations writing ongoing user the enables all fly, was a in business literally without I type of being of I even day you the So of which the and By move loan for on you line trend. able it the the think create and code. so XX% other and and code, on happens our looked to end change our just again And new at

invest can to in trying the technology help And changes in easier then we're time. future. over So even we those that scale to up make business the

Squali from from Thank comes our you. of SunTrust. And next question line the Youssef

line Your open. now is

thank questions of how economics years. trying share just Hi, to you've quarter next over the at is to coming versus leverage; speak and expense versus you the and the change cost of refi very mix that of the mortgage you. purchase can the me. model non-mortgage Thank generally, acquisition you speak couple over to within market out other to last the you customer gaining figure as for as to couple trended you. over the got time purchase Can not time? and see And much, In it a refi as you're words has that

Sure.

then at level Let me add JD just high then go - hit can and a those in. and

the the terms marketable non-mortgage own as as in events of mix, mortgage, own, exchange. off, the really all types all First their that loan and of act remember their

completely will market loans grow the same personal dynamics. have they So independently because

that. So can the same individual there over if top as flywheels quote effect are think lenders overall way but that you can of added benefit it of within flywheel

and percentages. always could just at each individual growth really the we look products. looking of example We're have we those at for don't So of

is to great move mortgage not the than and because but knows personal better doing anything in sometime just less because quarter is going worse. may quarter loan could who it's So you around --it's of fantastic or be a future percentage and have that

that of with tandem In works also in revenues. customer acquisition terms cost

look the refi It's it's market and to because out expensive for we example I go refinance the only is of refi. costs could that's more purchase tough, higher So acquisition but and on very, better it Purchase based get better that. lenders very to and converting our and that that we low and the scales the at acquisition is as build as customer will purchase more against because revenue scale as break versus customer, us then business. much costs that customer are rulo the project at get therefore companies one selection a up enable out

wouldn't wouldn't scale look, up short type long at I And more get costs. individual as So story sometimes acquisition I to acquisition customer look you customer loan volume. much your actually them cost you go increase

you're On you whether the aggregate? even just across across seeing or on products though or trend lower higher either can comment in

you volume? talking marketing about talking about costs? you Are Are

Marketing cost.

would marketing cost. So at level. it we in you marketing improvements can't say And at I look continuous make individual an

next and like unit - why let and a had spend more individual would of margin would for we gone we look costs marketing, wouldn't that you be give volume, that at you said percent $Xbillion spent will . a the If in marketing can more example we billion So would show one it $XX but VMM increment. XX% up of example that to I you, on if like VMM look lenders tell refinance have at me I an I it the quarter

we but costs. talking basis marketing and be of lender variable that billion margin, have However, $ we would been from higher example demand the about has a customer made X would acquisition far it outstripped

it you to So you at aggregate also mix. costs not VMM - have individual look have doesn't because dollars channel

search a does search it So than a customer for banner to example cost ad. lowly from a more from engine, engine get

love of our comes some lenders different that need channel. the Some of through stuff ad banner stuff our quality and lenders higher the lowly a

the acquisition to so at individual you at the And deal we at have the the customer acquisition overall VMM individual but level, level. manage at it dollar look customer it

go then to and hard intra as that's cost individual you it's nice We then a part mix in and trend. having channels pointing. backward, and a Doug's the quarterly quarter, about spike Youssef, see give

a cost, about terms of a on our that One are thing basis. too talked I just acquisition deals of development in customer share business lot revenue

lower theoretically percentage in in come still they you so That's risk. blend no on could see with of margins everything. And but the those, then

to So we it too. you and have And through help look more really at call the get can an you that level. in you color individual after

Thank our line next Rice Needham. You. comes Kerry from question the from And

pen. Your line is now

Thanks a if may. questions I lot, a couple

On new you've got the up those just more like question. out? that expand and require out more That's Or feel you maybe the process business business or the partners you people? to guys that first partnerships development of people increasing sales building does is resources, ramped enough that really that

at about a bit more Second to and flow a more of about talk on is driving lot think through question little My LendingTree, the has the I you initially products been least Can credit card personal personal loan. know monitoring, how credit that credit mentioned I loans. that more seems - Doug you and that? bit and of product cards the credit analyzer diversification maybe again some but little towards free through a

Then a XXXX think you to just do much interest fits for you many forth upon little do consideration based you and how one When put Lending about XXXX, that question. into Tree in consider maybe digitization. about hikes talk Thanks. You mortgage in rate can My guidance? happen the will of if maybe growth your LendingTree lot, it in a there final kind how mortgage do many how assumed how and you growth

right. All

get to going those. all of I'm think I

index. the on basically are mortgage assumptions based Our NBA

need origination look interest at rate. You overall really not to necessarily

that numbers to really economist of overall their our rate interest origination. continuing they're climb. we've while And got share fantastic and the percentage a back numbers is to of they've comes which origination generally that So hikes Tendayi it at got on staff obviously inside here, look however many assuming, NBA but then we

you to look I So encourage that. at

diversification, growth, explain the My let me ways on question your is answer second one the reasons about happen The - thing that LendingTree. of the it second really to is

revenue have LendingTree key well up credit of that LendingTree the in you is you've as and fits and experience. analyzer too. as logged in The My our thing a Think So significantly. seen

an based to LendingTree, that your want we have on individual credit account your situation, you process, transact and You through able goals, account. through to on that be based with individual

one So just That's is categories what think the transactions revenue. of the are see growth that the the you ones going necessarily that's through that My LendingTree be later more to where you the going converting to credit loans in come account. there, I but of come loan to Prime alert able Typically grow you easier, the The the in LendingTree continue in it types. It's mortgage like revenue your on and process. smaller those. easier in why log personal matched but growth think card your Amazon to it's not in reasons My and tends the to and the are see see

going credit a the you a with to show then that personal still card product, probably cool they this get like down credit if analyzer buy et of your things One But to that want you the of mind cetera, we're consumers hey, up if great, to paying you you refinancing cetera, we to not connect up. score credit house, XX% your to in keep your damaged can and get by et when points us come down XX% loan some XXX show that how say, have credit - it let and back our mortgage credits or can road. debt,

real ability think mine people that's interest their fewer to are is the I refinance rate. credit. initiative environment a going I to have for a going be on think be refinance to current interest key where would it based of going improving their you in can forward. The part our way fewer to people And rising and rate by So

here more with ROIs And projects the most instantaneous that. those year value ongoing the you always the front, then a that to our are do this our you behind investing get fly tech the add On BD is because with add volume. us in for there deals got we're area the will that team, there but marketing tech/product really on can nearly improvements great into we've go expected going. are mostly because but be BD always label a couple spends grows and private The

Great, all that, thanks for Doug.

Kerry. that of them covered think kind of all I right,

Yes.

think I thanks. was that great,

from Thank comes of And UBS. our Eric next Wasserstrom from question you. line the

Your line now open. is

relationship touching in And improves. been the those in you the because seek kind income EBITDA as filters discussion LendingTree? And just it much. three topic touch VMM Just you between expand the right your of margin? What we've historically of as that pretty Thanks to of that to demand. kinds change, efficacy borrowers expands, that has relationship that that do clear the EBITDA of maybe demands just been lending certain to contract marketing terms your up, goes results and can Can compresses let's around and VMM changes can My in to lot does given very changes technological ways the how maybe or say over address And influence specific maybe the and like that things lender VMM. net items? past get demand a you marketing on to of fulfill just in that's or Doug behavior the just but years few how of changed a to the you

Yes. three the again. items Yes. Give me

trend. filters, in VMM revenues, Change

Got it.

numbers, types dig borrowers Within into consumer got lenders here's we different effectively form, the of and it put longer let is called that And to short running, where okay, that you've side. called and so they a do the so the me PII we've set want you form, on annotated given to got campaigns that lender the My business LendingTree. experiences, set JD see. has the of conceptually. So by the in try effectively, Any given a change It how of they're like to works. I'll start

some up exclusive tables. have leads that got you You've rate

got you've demand. of those so And all elements of

the Okay, and it's states, so the it's for and and effectively you quantity the is coverage mortgage not that marketing it not but experience. order, consumer also then mortgage, look price just certain then That will, demand you into refinance it's translates just doesn't if and could demand not - translates at team. level, an aggregate which it's just

Now on about like side. consumer through the order just it we thinks went that mortgage five experiences

personal different willing set they can. demand cards, as price you've those cards of cards. et they credit cetera. as don't ratings cards That translate transfer client that or loans, auto You've different for in by both fill credit marketing got they're loans, break The pay types that you to the or personal but of cetera, the got et loans, cards, have demand segments the --you can credit necessarily reward down cetera, then the then balance at and et to that and efficiently want an tries order, team to

transfer. then right. doing know from certain it try subprime display in have are those then but has example a networks, VMM might a keep maximize for there that so channels. for cards credit job to advertising the marketing up And better it ratio that do of that historically you is that that on balance low to customers Now making know it. We And team a across ad might mind you we getting demand

just going cross-section So for to that's LendingTree. consumers. example, you have terms some of certain branded Well, drive a

a the are at demand, fill very targeted very, So level. we but it's micro trying to

Now then level, get marketing customer. more up percentage it decline you absolutely just costs VMM margins your to paid to over from an it because if next the you take aggregate should time

can go find So is going another if pricing if as we and spend into even at to we're margin. dollar, going quantity, X% up, go dollar it's find lender demand a we another can that

EBITDA your but at, after can't VMM goes and also to aggregate your demand look You margins an dollars deals at margins you do go aggregate at up so they do whatever and deals, share Is you then fixed VMM have up, the your at down, cost. level revenue level, that have look right? it percentage go BD

Yes, no, it sense. makes

as historical continues between no several the words there's relationship There's other has these quarters, in true? no the that to it dynamic three So past right. is over exist change here, in

change, Absolutely There's no. not. no

that My only is dynamic coming good the in zero effectively revenue that's marketing with LendingTree cost. of the is change from coming all change - The

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comes line from question from the next our Northland of Mike Grondahl And Securities. you. Thank

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thanks yes, guys. Hi,

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concludes for I'd That our call like for question-and-answer over you. today. turn back Doug Lebda to Thank session closing to remarks. the

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else, a times that or moved to internet If you travel technology. things from businesses lot for by are you dependent or of about things think have enabled like anything people shopping

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with So we couple thanks look we're And what's for going talking for you to your months. Thanks forward your in attention. to on. And a time. thrilled

you for thank This conference. participation disconnect. you and Everyone day. concludes in today's great have and the Ladies your now program a gentlemen, may