LendingTree (TREE) 5 May 222022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the LendingTree, Inc.

First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator Relations. to I Andrew conference Investor would Instructions] hand Wessel, now of today, [Operator speaker like the your over Head to Please go ahead.

to everyone Thanks, and on this quarter good financial to discuss Andrea, joining first LendingTree's morning the us call results. XXXX morning

Peyree, Doug LendingTree's and Ziegler, Trent COO; and call President Insurance. J.D. CEO; Scott of the On Lebda, Moriarty, today and CFO; are Chairman President Marketplace and of

shareholders will to our we purposes that posted listeners on a website focus a today. Investor have Q&A. we'll As to earlier letter Relations reminder everyone, of detailed today's assume read on And for and call, letter we that

today subject LendingTree's that are the we LendingTree's Doug results reports, our performance. periodic the from could give over Before the I statements and I call expectations Any SEC. materially hand of call, described forward-looking his to all in the we risks may differ during for today. -- today's everyone future not discuss and to filed want risks to that with but are make face we remarks, to expressed actual views uncertainties Many, remind

full please discuss that, refer of shareholder on with the measures of variety today, and reconciliations non-GAAP at investors.lendingtree.com release And call website our measures ahead. GAAP. Doug, GAAP I We non-GAAP and letter comparable also you will definitions press a today's available to to on and go both the for

and us Andrew, today. Thanks, you all thank joining for

again macro a difficult environment. performed face business well of Our the in

demand refinance. and rate shrinking mortgage, helped across in and DMD small to for year-over-year offset lending rapidly home term business revenue rates, and purchase despite Our economics mortgage marketplace improving loans increasing unit demand equity, personal grew

join continued marketplace proved as strong to have has the business increasingly project of small performance and growth in segment quarter a begun I'm last what returned financial robust offering As well expected, to RPAs. to after year. The pre-pandemic business outlook and our business declines in explain customers recovery of we for provide overall the receives. year tremendously as loans on relied on them be is Scott fourth refinance mortgage troughing its card has volumes. have to other in consumer wave resilient, credit us helping will Insurance Improving more mortgage how a ourselves new call we happy positive than of across origination this differentiate remainder our with lender we performed to the RPLs the us personal from have outperform why competition us our our the others. the and partners

XXXX continue been balance has well Investor volatile strength us guidance inflationary growth continued allows Our predicted our seen navigating. in our underlying to rapid more position mortgage updated pressure year, have our first so guidance and we sheet this our take we of our at something not lightly, as but Day. business than model when is our outlook rates we partners as for investing as the issued brand. economy far Lowering initiatives our that we increase well insurance in acknowledges The the are as

personal now progress -- need the as offerings officers the Highlighting on expect in our the driving continued the delight loyalty relationships loan of and customer industry years offerings products our are digital I ago, financial We company to digital to by every unmatched to LendingTree engagement, broadest and to for XX My present returns expand some with LendingTree the has. generate pre-qualified product experience finance able provide to our almost trust embedded customers. depth and will positioning members Harnessing of value, improved attractive array has digitally. bindable over lasting a we shopping investments insurance and address increased providing to and quotes partner network customers, experience these the the with consumer of with evolve in an LendingTree foster market. its very founded our customers, strategy, access best

our to pipeline solid hard a of The we team have seeing our as work. unit begin and further segment, strategy, excited lenders we growth integrating call agency our conversion and will ones. improved of borrowers. acquire are We all issuers to partners new early forward progress our look insurance as around to TreeQual and that revenue rates and our access this our to I margin growth forward we on look discussing looking and in and has from TreeQual mortgage economics The forward. well to future the move consumer rallied drive all results platform help as

operator, questions. ready Now we're for

Our comes you. Thank question [Operator Stephens Instructions] John Campbell with Inc. first from

Hey, guys. Good morning.

Good morning.

did mortgage combined. just On and you the last guys XXXX think, Hey. in XXXX revenue purchase within math, you in revenue, my as I year as much did,

going proven purchase. get you year. yield you've And out next lower think purchase that's facing I also like of probably be origination from can both looks and it to year XXXX, level in So a better you're this

to of So think of need to you and of the to in changes business do flipping the do get back can you that start how is, that kind refi revenue from those kind past question process And purchase what long make you mix levels? my purchase to kind really takes?

and it's concept talk I'll others John, on in great then to numbers. answer I'll you. to let chime

on you're the -- alluded as and there's is supply the picking works everything of that refi, off, RPLs I lot by and remarks, a talked first in obviously, we've up received missed on of shareholders, demand. -- about and my something So to and refi way, this,

Unfortunately, has away. now, obviously refinance That's demand supply of right volume. gone always demand lenders the side. So much that the side pretty

far, at is that that in so switch the is moves start equity and So result does against home and seen at done to and lender it working that other say, then the getting what RPL purchase job you up filters. What enables great your up them J.D. have capacity go to I our level team then to you expand which you to over do, filters. of and and do a individual the both with also would open lenders, us What we've market purchase,

lenders very, So particular, And wins. our all of drastically we've aimed the one a early is Then up higher top it's as funded and But lead. of pieces at very naturally. May, one in of in to July, do initiative to when actually proceed communications And then had targeting see they're directly initiatives, on rates, that. then value of our XX J.D., some the this engaging MarketPlace improve the that loan. lenders that's post releasing on with initiatives, per they Ultimately, going to going -- also on that? sales submit add through working conversion with we're to that, marketplace. one our customers strategic vendors in purchase cost anything but start that's a they're bid

parsing would heard over yes, talk add, more only about you've John, funnel the the time. intelligently Well, I us thing

the is of think it partners, were last say I would so of talked that years. And over of purchase perspective if them all sort at not they you And couple of one we've equal. traffic to from lender our look the

valued late Late very early is So funnel we're funnel mid-funnel and well funnel, purchase. now. right selling

market is tied purchase the me, much obviously housing the the of actually to -- lack the why pardon inventory lack Now tightness overall, well-publicized. which and early very in of mid-less of is market well-valued. and is It the

higher paid to which So, as get will rate. better, bit loosens it enable will that us a getting up, that better evidence actually hit is it and there's for that recent because, little at a convert early

a better those being because of purchase for a they housing happening We our between But versus they're and purchase funnel meaning, is getting what in of get our healthier, strange years, want. early that we paid home network transaction the in need a and able what's So, mid partners disparity and over there's is drive just last the has pretty revenue. way, really our significant. market find complete, consumers to terms what will a get late little lender gotten inefficiency for less couple

add right switching RPLs I'd source to right know thing of what and other I'd going some the partner purchase is only value. at of a The considerably parsing, talked have moved been that has that the get on to about. in on consumers is say thing insurance And point the to J.D. the getting because a question we're I and up

that So moving continue it's in the direction, it way. and will right

Okay. That's quick good follow-up. one then to hear. And

MM than it you've are faster On revenue looks [ph] growing the guidance, growth. growth got assumptions like

weighted do sounds a stuff a there, Obviously, then be half. maybe but it insurance going you some brand or just all consumer little it's in half and mean the And you thoughts really second side here that the margins get maybe could and first spend that. I you is like the spot. probably on on like and like maybe grew looks then heavily as on mentioned. bit XXX just to better bps also then, segment And then so, mortgage the the pressure unpack looks well. in So pretty if in good it of

Yes.

-- know like -- thing I you me we're let is hit recognizing margins. it So And then early. marketing know let one I I'll Trent --

a we're past, up, the would So are see about while not cost, we still we're while we've customer example, this rates and you of well, normally the go assuming like -- say? relief in We acquisition what that talked else for better, quarter profitable, doing in very not higher number RPLs our those we're and others. when in home, little a we seeing as seeing still well -- Google bit other are options, up keeping gets as parties would thought. and in pricing Trent, that but

competition a shrinks, we've Yes. side. the prior seen the John. some would as on good expect starts customer we to in as mean, point acquisition to it's I see market cycles, fade I mortgage, relief as mean on just

seen to expected. that haven't Doug's degree point, to We that the we

sort expectation rest the And that's the for of of in year. being margin the reflected so

in back your to that that question the on pretty look bit rest the is business you profile Day, on at segment line still flatty? the those at of well Going outlook I This was you guidance for on obviously, margin saw the if margin year, is the where level the and and a first perhaps several XX%. with at the more Investor we're gave that insurance trending outlook, in just go of back of quarter measures. caveat, just, end for the bottom one towards you the we mean being outlook

throughout to obviously progress that the improve improve. to expect to year, we We we're going but as that need

that think relative gave the February, I a the bit to more in on flatty. we guidance margin that's

helpful. you, all That's Okay. very guys. Thank

you. Thank

with comes Oppenheimer. from Our next Jed question Kelly

taking for question. Thanks my Great.

ago? months Just circling car will them this of that calculating prices, then versus the inflationary in when for to then the And like case of guess, it And long not back think on carriers how to used reset guess, rates? the a marketing? take around insurance. Is they will I be a Scott's I – impacts coming this time I to heard And get just actually you do the on call. back a couple

some you your differences the So between you. can Thank discuss of actually where some competitors? and of you are

not and you it a job. Yeah. for they're then morning West team at being Scott. good up doing we I'll Listen, out about thank prices will hand Scott, and and or to in insurance And really working, ago. I'm with the did how Coast. really, as start demanding, general, not very over pleased as the our in supply much in demanding – the is talked X:XX same years much the they underlying we've that not are wanting as issue volume, that reasons several carriers, demand and to back Scott are is – address The before

had of And number question? However, it's why don't trending the and than really we're better what competitors. take We've the has wins really, done. that certainly sales you direction. proud a team of doing in right Scott, I'm

to question about the underwriting levels just like loss happening. were Yeah. that of, higher carriers, inflationary than I of and worked ratios matter inflation with a control anyone And think, it's where your and with expecting the cost they Sure, much per it Doug. it's running incident pressures it To profit the answer inflation, is are going, of out keep their just models, carriers just not dealing they expected. is and

to submit you rate increases six limited And lot so of times rate can months. of how much you're states, – submit the a and then when or every increase you XX into the

keep things level. trying time a having it doing just to to they're hard and some So they're

with they're like feel they carrier came feel increases start that, Now carrier profitability that few A on in indicated of said, spot. and at. out it the to of to they really of she the the on But major yesterday just policies depends made rates in the good they're where they're done comments a public a before and number going marketing. states with wait that, also the new they're largely all in just rate check they a leaning months

like, All in saw overall certain do trend I said, are demand. QX, carriers a market growth. QuoteWizard We more certain – growth seeing still, out, it's of that QX. expecting a turbulent over And in, in leading feel carriers but we're increase we're leaning and growth that very seeing steady at the at QX we're are growth is

the we the a month, positive than expect to them year goes spending majority So general as we're we're of are our and as more spending seeing on. continue carriers as more today last trend far spending to

carrier – that to we seem fleshing the meeting the maybe our Scott, and better address also why why than like can of – to doing you going about we talked competition? that some yesterday, wins Jed be names and Board like and

to Yeah. QuoteWizard there. We, us being consumers we I the the quarter as very same And wanted. have period when quality went Doug. and direction. to year, on in trending carriers insurance I'll playbook back are and the in Sure. industry. – Happy probably things wrong we're focusing largely say, They through up similar the red the were would doing to second XXXX, what on the were the hyper we go throwing last early of in vigilant flags a

a we waters our So the pretty in heading lean we what that industry. proactive understanding a rough really needed into decision were made to into carriers

I honestly, I our making first We've as off to probably think unnecessary that was of with year. And the the there's us some affected second is of trying company But here, some on trust moves. level. are half paying half goal viewed our for those and in the SEM that of partners, were significant So didn't made which of want. decisions share, market revenue coming in, that for they a in we in year they that to back we hold last big by And positive revenue think a light not gained really ours.

combination as behavior of well is a shopping from competitors share just that's market of think some general our as up. taking in I consumer

that's So bit. going them why a I a good traffic -- the really we're seeing mix now. think the into we've got lean to of right us little carriers And

just then And Great. on a follow-up.

your talked probably always how just balance high-XXs And paid returning acquire margins I of shopping? conversion throughout Is on think better VMM VMM in competitors. your arc you've than that think Thanks. of more traffic to deteriorating search year? of should on about to about better competitors having sort the the of people we those levels the Google the trying

on Right now, the And industry. still our the marketplace, mean, right certain demographics I that's very to turbulent are the down year-over-year. I certain in on I hyper marketplaces profitable we're just most during RPLs Yeah. with and also lot less generally Google say geographies competitive the in carriers times seeing now. a would a focusing But say, do -- consumers. would our carriers

going will that's next So more these And consumer margins again. opening funnel, a few what months. to grow. the continue gives to demographics are when feel the geographic six that and trajectory and want they monetization per to is points our better so already start and are They to over margins, more want mean, to I feeling where leverage in will And more going about their grow levers and overtime that to upward QX. up XX comfortable have where carriers, feeling us we we happen we're overall they trend an They're running. policies of those profitability policies that the on working increase we're making which through our increase coming are point

you. Thank

Thank you.

comes from question with next Our KBW. Tomasello Ryan

outlets about and the for allocation. thoughts business? year? quarter. M&A share Thanks on an for of my you Obviously, could the you're you to around you'll shifting repurchase nicely capital existing on everyone. Thanks. into to the Do the updates deployment nice think the guess, to the you And us Hi thinking there? see I taking various questions. continue Can your how give any where update in fit rest active think most be that for

buying Yeah, now. and more been happen This be start. the QX, Trent. to trading having look, last to stock the I'll happy X% the it our with where between be mean, back is way have I quarters, and that Yeah, over QX so stock in the we've of buying even addressed about we float certainly was couple of

that That to primary for, want to of buyback. cash And when a that be want can kind to then, M&A preserve as we willing obviously execute opportunities And said capital still built is kind we allocation how on of quarter. the to to flexibility the so themselves. goal we're we every use generating encumber we've up that's flexibility. able present we've Our that done into put business in proxy a much don't

so way. about our There in late settlement have in May. we'll think with maturing the nuances are the QX continue -- the of up notes convertible And that to it same coming some we

M&A. based we But get market kind that to and our the been little I'll certainly, buyback how on about the take So continue we've it plans. that's to will thinking about we talk to thinking how about active of view in before of need And we're it. through we're a our stock. J.D. bit to reevaluate relative be

opportunities if that right? those have dramatically, and -- customer So look in we're as a valued obviously, years, of it's the been, last from Sure. seeing, those range markets busy ever over acquisition of the but at And just any in those fintechs, we're been us multiples things from because coming that's and traditional there the to from terms of then M&A by private a really are we're people things, And in are in have dramatically. -- are wider as incredibly come we've probably there are well Hey, who an come public perspective Ryan, comparables. values an you business. have number of couple our M&A

have versus and things to stock. own comparing look selective. range opportunities we're obviously, always we're to going those a And we at, wide our buying back So be of

We in a be stock quarters years. significant nice back really have over obviously impair for the think really had been we able our our to I not of with is the companies earnings. been ability to folks incredibly buy real – a many last we've who And of of two earnings us that row will aggressive present the multiple earth with we M&A. to that's coming agree opportunities didn't the couple environment were in overly valued, the way that to that and thing power own selective a generate back like relative relative to

that terms of traditional of so the years. the many only here. we last are that not companies space become the in will in of And has the interesting so way light changed There couple valued start-ups couple certainly about obviously. that's excited seeing both really opportunities private these more of frustrating us. been thing funding very perspective, look okay. but that our at, in the years in we're from front we're the market for But last mentioned were the have market, some of M&A I period The That's of well an in

next strategy So to the couple of expect years. for be that to our I would core M&A continues

Thanks that. for Great.

an only we million still I'd from our on have The add Board. thing to $XX that, authorization

stock cash. think our IRRs see still very we good We maintaining we subject of a -- our flexibility, still are attractive and that's definitely on to very, use

mortgage, would to put fade, put but a worse or Great. how if I if good for I you could begins the the on given I headwinds in guardrails you're build direct to the of helpful around in there's to market specific outlook that. back say, amount versus, that we've thinking it's continue think that that in but assumptions it know earnings more you're be you And viewing around sensitivity what year possible what purchase were time there? pressure this spent market, if Thanks Thanks -- affordability better-than-expected any to February? no the and framework, revenue conditions realize particularly already

Yes.

In rates, then traffic shareholders purchase purchase the as hit rate. there. a even and The getting and that from us earlier, our lender I'll high is, go. a customer whether refinance and conversion marketplace to long-term improving and as And still So really XX thing notes move today from X% to have initiative said and sending mortgage, I'll much known at it. rate magic conversion have environment, both refinance, have I we to return a a conversion the we then about or coming so is the interesting it's conversion XX aimed through at that converting

go So of presents we United times mean XX really still already points closing And of an it I the couple MBA that of your a little loans all on end because profitably makes And that's need or in only we it just statistics than just by shopping able day, that, opportunity. there's the the you lenders -- fixing lender don't at is States. working on the we're to bit here, closing the we're say? would the impact but harder, profitability more get else more life size way, volume. and there, being to to a customer and enormous the add. other and necessarily JD, who XX assume why But site then are the not have market. J.D., direct it's market a of the you convert on related our revenue. that has anything than the experience mortgages

year. at MBA monitor who that would we others the a at throughout look Yeah. every affordability, we out from and obviously, year look Black ahead, as benefit And the data, Knight consumers publish data just Ryan, obviously, I'd on say refinance. we map the that year, we on

We also are very mindful cycle. out

officer watch fairly that this on as the So dramatically, sale sale when we're a we know we loan has watching, gain that we all it obviously, compress, watching And watch year affordability We're for for usually, on consumer. employment for gain indicators. lender. the

have of loan actually And That with that improved quite so of is cost by many our layoffs followed for partners -- officers. of a to us lenders, lender environment something typically our that many traffic announced acquire is is the along bit.

on has at the volume look we expected, year-end we has It be expected as side in home to not much. shift year, think We the down environment equity. out We need volume well. right? mortgage and still played as doing The to the that. cost So down come as doing generally We're purchase We is to that come. has. dramatically to Both those businesses refinance. are

our reasonably made the we on actually would more we has it we have a feel to January say in So that good that about than dramatic macro bit been projections expected. December. would I side April, from

shift been the If pretty about you that affordability consumer, has think the for dramatic.

estimates That's January, think was million. Black refinance at benefit you In -- would $X X pretty a -- about population that refi If in the that refi million Knight shift. X.X%. I March a think from January population dramatic in

will we and yet really this. side The quite an navigate to happened like us. of the still to front of has think we a have acknowledge when That's in equation. that actually right? just It's to backdrop, cost it more not acknowledging dramatic the And is our part we're December. environment actually pleased. performance continue across But that. guidance, little that in So look at shift bit have just we of we our anticipated is That we is in than piece

should able tough While in to drive we refinance, better time. to it margin be things volume like drive will over be

every know said save the is and consumers They doesn't benefit benefit JD every not you're to going when in high because to little accentuate some to a you say, the a like that. going it every doesn't sudden, then and back But day, thing more a but higher, not or There's – key it on day at much we'll and because focus movement. officers week [ph] you'll you shouldn't -- that not on happen a might they and to And aggregate – somebody right work LendingTree's this can and go And make of the to companies is works us set you move to or of rates. hold day, But that. now -- can trying from business levels X do month. to ties rates get go do rates there's going where not there's know off, or unless, And And of technology, on might higher, but to are and change. loan some actually lower. you're day-to-day also X One to money, up from go you they're the rate it, rates consumer rate like thing on X sort that And that to and go you then mortgage for have get But you're laying obviously, refi pop the really X X, -- people X, recession, refinance are setting X little they low, all it's effect up they going it's if a all refinance, can't on going is if X. see to boom-lets refi to a just see they flood. as bust X. immediately. basis rates

during year, you're adjustment the this go through switchover, which the period, we if going now, will. you right always through So,

Thanks. Appreciate that thorough remarks.

Ryan. Thanks

question Autonomous from comes next from Wildhack Research. Rob Our

Good morning, guys.

Hey Rob. Good morning.

through consumers, of decisions what gains? those Scott, things. expect into come and in share Doug carriers lean you high-quality to you'll the When market all follow-up and delivering start to need investments outlined a on and you decision insurance and do just see those

market share seeing I'll in we're I then start Well, them and right let's think Scott, now. gains

we're why talk that's increasing carriers than and doing I'll think why are buys more. let with I us, competitors and Scott better

what Yes, said. Rob with, I agree just Doug

The budgets calls this to And gains of as also it clients, are agencies think seeing of I of our one in the product very like on early budgets. rapidly. we're I the growth come inbound new would publishers. cautiously products – we're focused back, our we're direct click for share market space. already some we seeing really winners add on growing getting for those

health Our spectacular had insurance a home and industries QX.

So, performing internal really been and levels a performing business at lot initiatives hoping we past that would were couple they down of of the those high has over and are as helps the quarters. legacy that

as to So, come bodes business back, for it legacy which well really the I that it continues think is, future.

with like forward who quotes give we're customer -- satisfaction can customer make doing standpoint, really from look from to well. actually the it's person, a better you of about -- And going you that multiple standpoint to the experience an that's of It's carriers Yes. we decision more also and than where the in direction bindable of a and the real economic inside that's the agency integrate talking expected able future. it online being LendingTree, my pointing ship help that from

Thanks. Okay.

was that. happened up follow was coming towards budgets to say something back more Just guys were seeing cautiously the that were or the were into on and some When that quarter, wins, quarter first April? end -- you that you coming of early the throughout that the those and back

bounce and mean, looking June back growing and much we bounce in been -- then I very momentum every April. and the from were what carriers very in we've our January. March say would month But a our would right momentum wanted. it the was looking in I not throughout the hoping January, Yes. is got we strong January do call I'm We that year. February, is growing seen sorry, bounce standpoint, May was up a gaining I in now. just initial -- much has as profitability as I in because wanted didn't as as they started obviously it standpoint as from

So, for insurance, at client I to all-in-all, it's level but growth level, would a up there's down steady the the say and just overall individual year-to-date. it's pretty

Yes, I've a improvements with been see nice is it's rating nicely having monthly, and that. is business very steady weekly, looking and at that to run here

is a what me reflected the So, lot the of in guidance, aggregate momentum the number gives is excitement. but

the all Okay. Thanks there. for color

Rob. Thanks

Thank you.

question with Our Youssef Truist. next comes Squali from

guys. morning Good

Sorry about that.

at particularly outlined expectations kind and just consumer the starting in I has the have guess want Day progressed the Has How rising you then a you, Just look go to rates? that your forward Analyst the segment year? throughout back to And expectation maybe relative follow-up. to rest the of particular. with to whatnot. of of Trent as that I quarter because you changed and

consumer on consumer to macro the one mean, on obviously, our track. relative the implications squarely that's sort insurance, beginning I but at consumer of is Youssef, on segment the remains and mortgage squarely pretty mean, of the year, Yes, outlook I talked about -- both we've track.

a steady the And in outlook continues performing card the highlighted really market asset end personal backdrop The as exceptionally both health those the class network, the kind in to and we are growth small an of loans the for business well. like recovery. of is As letter, of our strong. there, market businesses loans improve. Credit continues personal health partners in

continue around to We have really card. our in conversations TreeQual and personal offering productive both loans

the we about three really in the feel so among good And segments, outlook consumer.

pretty SMB some also and cetera. assuming kind competitors have just and material I seen cards change And competitive some a interest? think lot et front on really that put -- change subsegment of of out because so, healthy, of Have for remains the any I'm attracting you decent credit loans, personal loans it's numbers your there,

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card a Youssef, been loan business process No, before the card did. of of, the the personal kind business, back it's business came --

points loan health really is Trent personal network out, good. As

there. absolutely the that the the XXXX the part there. desire issuers of lender the things of in Card, of base is occurred our on is expansion One

the waiting the It XXXX return. are gotten consumer new interest We from levels. in gradually to for better. cards to It's still back quite not has

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factor pointed overall, it's macro small. relatively Trent really our beyond as out, strong. a segment consumer the control, that's So but sort But of

present. to we're we're when That yeah, competitive traction about of excited do card great there. borrowers a got market. ourselves personal right? that's with problems credit environment and issuers. at competitive personal a with not we're partners part We've about strategy deliver our well, really loan tough TreeQual, for that loans our the credit like to card embed bunch and businesses we've of And a and causing right talked both the personal any in our loan making the actually further us is So, seeing Now, progress them, key

about. and that extent making really ago progress a product are that excited about both short-term those were you they we're we're think great year the consumer, are to year on Short-term, than long-term innovation So, this think long-term dramatically and better I fronts. businesses in

one, great. One of Any give very That's as LendingTree, Can kind there, seeing share My continues an us that channel? be there to KPIs helpful. would Thanks. My engagement from grow nicely. may. the just really LT help last you're I you can update to of you if conversion that kind

start. things like excited I'll We're relates as J.D. it about It's absolutely. really TreeQual. the to My No, future Yeah. of LT

members going LT over inside real and grows, million now XX LT. members, of to My offers we're are So My as see

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read a the noise is experience. reduced so, that, think how we to progress engagement. that did somebody And and terms with measure make e-mails. e-mail that often really trying sure leads in the despite customer base, base We're in revenue LendingTree e-mail. the don't the of We've we're to happy because it to seeing we're in we people Did they actually that open our that My useful better spam contribution that with channel

and My So the consistent. of with economics improving dialogue member to continue quality I think LendingTree -- the the be the is

think That's going true it from improved deliver the do score, you're this paid strategy a we're you, to and like see thing a the more the the My for at a next consumer but what I -- looking strategy. to of that mindset year, our with sort it over a offers a available LendingTree adjacency your members-only you credit behavior-based the in find card free So for, product, is and let's approach, big right? consumer to is it's because on of now basis. the reward would of is not pay way which

other it a talking "Hey, My you out real clicked marketplace, on -- form, close, we think TreeQual. is through of the quality then the you of if -- having you you the an it, -- traffic. answer through filled you and the a the these then you offering beauty add thing lenders all save money. say, I'd to upgrade I LendingTree from we'll the you of network -- just you close J.D.'s and can And Yes. you only great ad, deliver we're as or that, to can is came was deliver and you about and we and you we set didn't thought forget that opportunity into that can alert can The whenever up That's where offers about

in then first. only we're the we're monetization a worrying LendingTree, secondary we're customer putting experience And -- basis. best My So the as about

insurance the there, to why card offers, in get offers you want So there. some we treaty, not you that's we've have credit embedded get and mortgage, have click enhancements real out a working got we're agency personal loans can -- so for on and real

to goal A et the best give them time there. credit then their score, then pay said, that's the importantly, your standpoint, really an check again on we means come the that lot which from traffic And So LendingTree. revenue, to goal we're J.D. is we for can as from that right you repeat time, the model a needs recurring person don't at to need cetera, offering, our business through paying twice. for clicking you every comes of and that you still ad,

So in addition experience. as our should well over time, do customer the better VMM to improving

on LT, users The from would up is only revenue The I add XX%. thing I or My only add contribution thing -- about would LT My --

good that's a So story.

with personal loans. tends in keep that track mind to Now

look So obviously, revenue as engaged is times. But RPLs are LT to better. higher, going those are per My X.X numbers

good really see. actually that's to So

talked funnel, folks of going build no you're we've experience. users folks against insurance, see the it. of other million this What diversify base actually we've into do driving us et over XX to been basically lot IT with driving as without base, that from our about, marketing base Our cetera, spend able from funnels, is a -- time mortgage to

marketplace As be of that base for the will kinds there diversifies, all business. benefit

that's called So Adviser I Day, we internal that's to and And The really emphasize, two want to would Investor and is is very going then just hand track. our that's strategy. thing say -- I in an you well had last Digital go on project have the the hand. have

hear. to you. Good Thank

you. Thank

question next from Wedel Our Melissa JPMorgan. from comes

the are TreeQual. expanded Good on scope is your morning. that across has network terms up today. for some And if of partners if of on or Thanks I'm of comments taking of that that year-end? implement my so, that TreeQual, on track has sort in to -- question on into follow you Wanted more still to incorporating by -- most the space unclear stable?

it to and hand So, then me J.D. off I'll let start,

TreeQual slight what let's again the an way, fulfill is. by are business, In card. credit name. loan everybody, to the nuances -- internal both for the describe and just, me take the card that's And Let personal credit there

will probably later, month on click in that then, issuer the tells of credit basic their for. could rest It cards you some list and potential LendingTree go you potentially not us some a then, any You credit come or the that terms the whether comparison you a or you rates website, closed. you approved to information. in And enter you And to gives be site, fill -- card information. that, of you and

offer. earlier with the initial you on And And conversion getting goes like and you're offers instead, on same this, click imagine it, you right clicking said because volumes. the real seeing only J.D. So card when three lenders the They're the an in card it lenders the about rates. information fill in -- them their thing. in then, are live people you presented actual personal actual who increases basically that to or two the LendingTree, come if mail. loans,

we're economics over So a people customer getting going and to unit sending improves three they're satisfaction, XXX all our going customer it monetization, We're our improves and back. not to experience back. send to over people lender It XXX get get the closings and because and and the approved. massively XX

that's but Now the it's that's start, that not going quite be to -- TreeQual.

anticipated today. now, right at in have three discussing Metrics that the issuers live testing. what we got when Melissa, better been we've or actually we than it all with on anticipated card credit it So, partners

better mostly better we returning actually anticipated. it's So than outcomes, outcomes

does So first personal our -- about the what see. call launch we to that's great side the of to it, see. consumers would so We're partner. loan That's what the inventory

of But got, a -- I'd or would partner say, in this, the and that's kind credit And line get with some bleed a would the to third, they of anticipate work work both businesses. think about. through quarter I of to parties There's or we've those personal I of them. time the another they second third And the to because you pipeline I all And that's of the partners. couple got really have with quarter, so, say, five and second complexity in that that to card it whether six loans, dramatic handful pipeline, in onboard in that's would we've done change exciting.

we're will consumers you some out, or who could all So a Doug our of we for business them mean, take personal efficient that TreeQual to sense way anticipating to give businesses. for I how existing it, maintain we the have pointed what could both and those it a mode and that of enables in loans, is partners double that us. right? As of you more -- with replicate do it could some to our And they bit it's It a deliver share. we barrier a them market they -- to think want. in entry actually

the So implement. I revenue a the exactly it’s quality barrier It's just hard keep me, credit that's is entry. and We're And to is, quality of is Hard issue. very personal to a truth improving card, what the telling doing. good. revenue. in -- hard loan said to of we're in both I And somebody think if

compelling. TrerQual Yes. No certainly doubt, the functionality of is

improved does things then of already result dramatically of you wondering LendingTree you or others that little I or so been at budget performance the guess, through? far. a could And that increase any, me an to that, you how I seeing looking filter this are I'm who as there bit. they're would what think allocated you're was metric versus dig see was that Are in those noted that looking fee at? partners one through morning letter for looking I into onboarded we in a that your impress other hoping have --

in particularly look of key still than issue same you a if -- a don't the loans, relates the it's where else -- run with is rate conversion economics they're -- personal most many necessarily true the your in things And because to those back And personal want So at revenue typically, come directly send you per able The those on the a of on consumer we loan. cards have or they people on get mostly issue. times, somewhere to per LendingTree transaction. and they electronic unit percentage when were paid that paid we loans, allocations from cost personal lenders closed cap. to budget on is actually thing loans we that customer per are who get closed a or revenue with credit metric

So we then can say, other form card, And you I real dramatic dramatic to get changes I started LendingTree, grow. in we out can rate, make changes thing only that's think fill so when economics will and credit if that the loans, happening. less in would the in multiple make is business on the offers I unit conversion whole personal And you compare. a premise not and the

what is you to is you to this getting real -- J.D. this be else add? So offers. just would able actually see

Yes. efficiency for terms The Melissa, month-to-month really budget translating it's in of be think marketing not different. in more to will of tends card, like into that be payouts I will be on the side us.

My for -- our so go base. more it's That's expand deliver well. certain why able we'll cards from garner be in approvals LendingTree as payouts critical to base we more our just as So higher, and that

My Now why but LendingTree, linked. this tied that's are the to so exclusively strategies not is

don't those I the each that's of terms of think think I profile businesses, thing. in margin impacting a XXXX in

debate. just That enough to change share those a them to that's enough and year margin to want we've I much structure next the this to as have for think that that's businesses. got they what dramatically for year businesses, budget through in it all matter -- It's something will look going kind size very businesses. in data wallet of can This that more of terms does garner look share big those it. terms at part's in we're is it of to getting and What more work And TreeQual I'm very with and at start means ripple that's through. a in get not that our it to those volume assess XXXX. of question we us. a open we'll in from a confident through we market partners two what

helpful. much. Very so it. Thanks Got

you. Thank

you. Thank

with Bank America. Schindler Nat from comes question next of Our

J.D. rates? the and the growth the you Doug some dramatically in out players their both box stances, of of players different the help take the these public supply. I from affect coming the environment, to the interested. going less in And one term stimulus in know lot recessionary. But more Obviously, bit, saw a longer as this you we card of potentially the spending What side called providers as least demand very you and it And credit we Can is how consumer behaviors dramatically think your at They balances I and credit that to credit demand again. consumer go box rising saw would I the inflationary happen have where on opposite little a you side those from a from move consumer forward is personal another supply on with there's in very correct? Hi, one business? a fintech would you loan public people what's because are either consumers. changing of couple and that that's expanding happen me Yes. to tech money are space? out cutting there's taking do different the higher backwards, But side two also checks, see in

when described consumer to able the Yeah. lenders we is deliver what that, boxes And always as lend we air spend personal with tough when in you any The it weight is nice see that lender it say put means sees whoever the willing personal credit any off can the it, consumer more years I won't have particularly loan. a get the in I and a you market in and to going, several add? shuts the makes personal to -- And and and time loan personal going? are of like out. given what we see, capital or will market say or defaults loan in lenders is if day, us kind consumer then your And to where marketplace the marketplace. deal just as the you happened the starts they Where more I are from J.D. of the then but particular, reduce is out. in huge gets loans, those best it a want what diversity and borrow, capital they they you in they would their ago can't speculate on have way. make marketing the to thing for borrowers that else what obviously, balances business is you on cut

I based value. for marketplace it's the In our now Well, any going marketplace. what's greater spread, at on value comparison great guess, I pricing is there's for to alternatives a in what deal of happen. that so more the if consumer. mean there's products is consumer, as right the of that, the think there's environment, in price, our There's not value-add for right? dispersion And a same everybody great If about

to a that's interim, in some respect, call So compare. the thing for action bad the of in in not terms us to

it. look way at one that's So to

going. to hearing just right tightening a tightening of certainly consumer when -- who box discussions and not lender grow, going terms out are not very we I think yet where partners don't the a enough go as data whole In talk in person. discussion of want much There's terms mentioned, there's a box our of first time in ton credit in of I'm for our on lot now. in We're seeing, while partners to we of out there all partners credit

reflected across today. our not that's So network

compare. -- hearing good we actually to call You're in a action higher think rate to of data if that that's points people and environment, of a couple that for

Great. you. Thank

you. Thank

you. Thank

Jamie Friedman comes question next from with Our Susquehanna.

contemplations wondering, a high especially EBITDA if Trent. of at through at level, at your the you us least VMM Doug, J.D., year? the a for Hi, can on margin and segment the thoughts remainder level, can I was you talk

XX%. XX% segment I we mean in probably Investor XX% revenue again, volumes. was And We of end to mean, of to is what that's eminently gave higher the of We knew segment a still and feel as that home point Yeah, Day. got bottom still for down basis rates refi the feel back be level profile said like going it's guidance of that kind light of in I like margin achievable we likely. Jamie, we we the I everybody was and to XX% a Trent. achievable terms to at the coming well. range on lower

guided intact. XX% flat being it. have line clearly mid-XXs. remained grower. our guided our mean, XX% is If relatively of the totally being best three we're already level expected that like the our structure, all QX on for We've there, and then where certainly certainly in caveat. want will in quarters, progresses. into in out margin remains last bit from that to to EBITDA said, we're costs of year. we've cost our The that beneath our And translates that trends year mean outlook on hopeful kind growth a that's of cautiously terms little as you to moderated there rate the point in growth, from -- that the XX% insurance for we And the our we that, for up at achievable X% fixed consumer, and how to disciplined margin of job pretty margin, certainly, I doing one the I I a a structure. the that OpEx. profile, And results trending support and there profile cost fixed to into on look And something the in similarly as fully QX business the I we're margin we're piece that in that XX% segment little that recover but do is bit probably first optimistic, a we Sitting today, business, of done business I here more the good XX% quarter a to be type the non-marketing hold think, suggest of

than this if grew being slow sorry that or that of where through, is per approval Got -- smaller less function the card thinking could then origination that card, I'm if ask credit consumer, revenue increased I letter you call out just because the on out And on the specifically about this in shareholder that per or but XX% it. call why is the revenue business? increased the I'm happening? are is approval a dollars volume,

a per we that. that deliver our for revenue Yes. I we in get issuers function approvals mean aggregate of approval for is number a and of what paid

a consumers revenue wanting been new increasing challenged demand originations, as the clearly of we're of backdrop spend talked So to seeing and terms issuers there on and marketing earlier, to to where the per J.D. bit approval them. is little new we've for from new new increased new our ability put about dollars, function drive more issuance, to wanting a issuers in for on approvals a issuance, is healthy

is and backdrop there has more been marketing competitive. the difficult. competitive It remains Just

the focus our business more to that we're outlets, in marketing TreeQual through other partners, also where that's sources for more business. obviously card so look and And to onboard is efficient focused other but get in traffic, of

Got Thanks queue. the back jump will I for in it. that.

you're only left queue, can continue. in the Friedman, Mr. one the you Actually,

revenue Well, the what actually the at is get the approval. that trying was than grew right. to faster All trend I

I So had because it is discounts is that volume you because more you approvals? guess

partners amount paid getting our up. for delivering is approval up we're and the also is that we're per approvals of number The

So I'm segment Doug, the revenue in I'm than sorry, the faster why revenue grow if exceptionally… being per would the – but approval?

the them like pay over deliver volume. more network, how will just them inflated is would of of across last year sorry, issuers per you our and – higher revenue Jamie, a to price, math just be x per We succeed the a volume the incent else say, the more Because rate, They us revenue approval function everything a volumes. approval. higher delivering than we the

tandem. metrics So two in it's working

base got higher lead to right? multiplier is, more a volume going percentage effect of price. across to that's We've a higher So a

it. Got

fixed in Okay. Thank questions. All my right. you. That's

Thank conference this you. I'm the showing turn I'd CEO. Doug to no further questions like back to time. now at Lebda,

on turn fax hundreds ago, all we the who When could when me? first just first filling to little you the website great later. co-founder with and questions. My it and input for much, interfaces and a side, So and said, that loans. on with simple customers bit close listening lender had build to advertising company, system financial we my I this. lenders, I'd the QFs spent with very out every you I your of several started XX would money a you data applying ready Thank customers that had to years the and lender to Internet, a of this thank institution. for build fax first can back then days to, to to I

positioned a the customers right we where one now is that, And are future. the fully the digitized those single are One, that fully are over digitized public never in substantial towards we acquiring areas of believe years produce sit marketplace flows. that we got on referred XX finally working single that the that at-scale to in country insurance why? having in in perfectly at place we fully same who to loans of the Internet. here, mortgage the We've here's and I we it who cash to that, an would questioners Every are day a get thought think we every are we each take loans. loan personal I and works XXXX, more cusp bank where And Internet. to in insurance. our digitized companies companies is have goal of machine lending you've marketplace of And have got As

of one that the are know We that a I only acquisition companies cost have of problem. doesn't customer

a team ours well as in those category our where see company here. work revolutionize LendingTree changes, can fantastic experience. key is work Fourth, are go again. comes and making of Three, improvement. can services assembled And very, post we we now all ready. and partnerships and client we've really as the are partner we a It's and each the take initiatives our again see what actually company from real other digging of a ever coded And ours. to of excited exchange together strategy most future, a it's even marketing perfectly stronger, getting particularly up our and company is this with brand and have importantly, into building have our with is profitable. we COVID, better. direct very known. we at with, plugged very all and in it's fifth have every during very, we customer financial believe fired we And economic customer in And you to that's every team single get where to improving, Our best to in significant Two, Thank going experience our very the have much. that I been

Thank today's conference call. concludes This for you participating.

may disconnect. You now