LendingTree (TREE) 28 Jul 222022 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the LendingTree Second Quarter 2022 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Andrew Wessel, Vice President of Investor Relations. Please go ahead.

morning to joining XXXX discuss good call on Financial and morning this LendingTree's you, to us everyone the Results. Thank Second Quarter

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

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

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

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

borrowers. obviously new Thanks, has for on pressure caused loans all volatility joining for lender thank demand demand in Andrew, consumer you and the us today. economy and current for The

and and profitable Our emerged company business. has operated stronger like the difficult through more consistently in stretches as a this past

that committed experience, new improve to and customers draw make day-to-day are year, at the position when manage also a to platform business others cycle our and brand earlier today back. this drive dramatically We time than we are in scaling investments awareness ever our better to customer in be strategic to able our higher to a in much including before

Despite carrier these acknowledges third in quarter that model. forecasting the headwinds, lender spend in of segment-level financial quarter and of brand we our profit flat demand. second slowdown impact to borrower, Our roughly updated the a ex are to compared the guidance insurance be resiliency business will speaks which the

limit headcount Our on of sparingly actions a leadership plan a positions nearly helped restricted peak last having These over by macroeconomic mid-XXXX for targeted due revenue operating to reduced team remained year our and period the trough-like to This through generating expense the X% backfilling XX% company workforce X inflationary X a headwinds. is significant a as managing occur. since expenses when current despite are environment. focused when reduction, of unique has hiring they growth us vacant segments

side we other a while are most, on the the when ourselves taking they helping to cycle. of it position win managing this focus with on need purposeful business the to partners steps our However,

XX% it. We performer small segment, in today for volume them. consumer respectively. both quotes the revenues roll segment pivot business equity consumer was high in the home we're improving our loans actively cycle, point have borrow are quarter second our loan personal products see for prior helping quarter. with the XX% know equity historically mortgage priority to year, grew For The not Home XX% against our out efficiently desire levels historically and a learning outcomes the during a example, in high working largest been partners challenging in over with constituencies. or the the increase standout of we as during partners homeowners in for and We By for us again that to that

continue been are to The negatively third have trends a in business partners and live insurance grow, with the chasing few new TreeQual quarter. pipeline announce that new of carrier us we premium Our inflationary partners going has to partners to with impacted continues increases. as expect

business for our with the our growth partners, the are we end flat through quarter-over-quarter, dialing expectations performed back discussions While material ongoing on of based relatively this year.

economic However, super repriced consumer companies environment, emerge. expect optimistic QuoteWizard. cycle we future the when above returns policies We finally periods, well of for their Historically, a business of about remain to normal insurance to appropriately see a for shopping believe our in time. they've such the generate very period at tends thus

ongoing We about excited customer as improving the launched very this marketing attention out recently. I'm to Finally, Day. omnichannel to our in chose laid we experience new we the campaign work draw time Investor our of

has do it the is rates a Our allowed financial so. driven efficient by steep we're look the of investment to seeing much us but while resilience in It investment, to this in months return advertising decline ahead. to more allowed to engagement and is advertising benefiting we and from at brand quarters promising signs the when is for campaign, this time still forward early,

Now line open questions. operator, please the for

[Operator Instructions].

Ryan from Tomasello question your from of line So KBW. comes first the

added was comment and back, consumer the earnings I the segment to untested. if have would that the operated through the point about current around its that, contextualize But you guess, realizing the hold specifically bit cycles. earnings hoping implications trough backdrop diversification still the finer does the a And I the in for mortgage business. in capacity, taking more is a just macro of that insurance? bigger power being that, Help beyond and headwinds numerous company current talk the a when with And put form business step XQ has weakens

your form. it be of helpful its around to the get takes a So the and for puts recession current performance would in thoughts business

And J.D. Trent, lived sort on through comment few all first I'm posture. of going to a unfortunately, can the times. that recession a to we've one, we Start on and like

standpoint. sort the -- the guess sense retain as of some has we at from outlook remainder right, optimism think revised year that of to a the any around say point, ago, And removed down thought the little Yes. macro. is with we regard optimism Ryan, for guide we what posture guidance months initial I I our about X our I'd obviously when macro bit, a outlook of

near so present well we insurance has of And levels, like operating first we've think to throughout middle we think I mortgage year. the outlook already the as perform of obviously the trough for at of and that risks rest of the be got year. to are consumer feel the the got half we've and continued mindful But sort about recessionary

for certainly remainder our we've for so the And in account done best the that our to of year. outlook

right, what as in interesting, segment, right? that to sheet desirous origination. of think balance lenders seeing as in seeing particular, active, continue to we're relates I in it's in is space it the we're consumer personal What and be

in risk. the back that starting their more space a are on reliant with capital for credit partners of that bit lenders are appetite to Some little regard external to dial

starting a to teeth is that see possibility appetite into next our will I we appetite outlook. feel X like just the of see for little -- terms months basically, sight And say of the for bit how harder to trend risks to a and of so current line pandemic, saw evaporated conscious what some of that I we've is over bit that little I'd for guess better is get we're -- of reflected we're where sort the that. what in The the got in risk. overnight. We of What we're in going think don't

I summarized it Yes. think Trent Ryan, well.

prospect down talking time. XX%. Those shouldn't XX%, consumer up X revenue light dynamic up business just Trent of as year-on-year a lost that -- that everybody our of a What's having through, the rates just only them but be have kind credit opportunity Each we at of segment, second outset, said to of tried sectors It our the lender personal year, there. that in headwinds, because shrink have for good X there some businesses dynamic result, about that's economic of And context, their up not the expectations. historically the pull-through put pull the we've good XX%, our bit. think quite through the -- loan going was we be the a quarter a the right? having happen card increases on in consumer that year, a APRs borrower segment recently. and personal a So have our adjust close will will doesn't small this one as to a to about, recession adjust loan, if As is very are will forecast credit tightening we right? as bad go this going To and of

business So do. in back we're what is not doesn't that guide. for we the -- just business. think at thing the that's PL as the the healthy a we a and right year, half We're It that's of look mean to that adjusting

to the the the Home it's of good as it the refi trying insurance, hard inflation on opportunity, recover. with progress it's make the for pool relates it to in just we're As refi thrilled because really year, We're we refi. when And that remainder in equity, and small like it's given can to a struggles, likely the that's just this, hard eligible purchase speak certainly but know to Scott not is then something is. to paucity as up for push of Home, pool,

to going to position be when we're the things spend and comes so a right do And in back. execute to try that better just all

Home compare certainly, as previous time each internally periods. most lot Home but officers to was about of period significant. the rates of and in when loan for insurance, The do were lenders be spike would XXXX our laying think you we recent As spend to a trying it off not

not the perfect here, performance. as can so as it wasn't it difficulty Scott the And much time on a expand operating had to was cures comparison. inflation to it's necessarily And but last tied

cycles add lenders are hear there's stuff the love volume you've consumer be anything lending is And less you happens. and their if up the thing less. as But and -- they what typically, as I Scott, recession in credit recessions segment, I'd the what to been and demanding tighten and on spectrum would through only see would insurance,

at have obviously However, lenders been doing adjusting doing that, underwriting even already they're A you that well. the has and in who lot as happened numbers market digital look reflected though see the you are our criteria, that of

so I cost is huge lead, important. time, At normally because does in little same your conversion a and huge So would if bit, their see are rates per And staying then volume go your chugging dramatically, demand a rates, you our Home system through would. very, spike will, that to down consumer per the same it your typically if environment, in moderate up the I'd will better you the but think in strategic us need dramatically a your for -- get than add lead so up Home very that bump. refi is cost that's lenders you hold a recessionary RPL and down initiatives or well. going why And then is the thing the alluded the and J.D. business our initiatives in

actually ongoing on works, and dramatic good, at Marketplace And on major our just hitting and past, much, as if been optimized had lenders. the scale pull-through interface proud Just go laid really from lot at improvement you, this If check TreeQual say say done unit It's to we which going project, here to the to there, have be dramatic much mortgage year, conversion with you are our digital of makes able have more now of mortgage as our to it We'll credit beginning and out. normally a proud homepage economics. in initiatives right we and our experience like actually experience don't that card the personal I'm but a mortgage, better. X out, XX on folks now. of And mostly haven't to times in rates. to I on go being loan we consumer the the then that a being out that's in

inflation. to on resilient much briefly. industry, insurance real hit The it insurance against would Yes, be recession than more it's against

You look to those the on product have the consumers or and/or all at major government health, insurance lenders auto require home products. or lines, it's whether

for right consumers where have is is Inflation charging just one some those of the going top now, those we're are confidence been the a in have a the lot profitable carrier at they're not do even not keep rates time. they which where not in environment. and whether and So just or quite rates that's recessionary that

for So environment point the the trough is current insurance.

June, from down there environment? much appreciate for upside then the on settle there way rates existing be I into in trickling to there there levels with has X% equity, purchase, that late And based highs you're how home strength onboard? with I to is home And partners new signs of on their been that could mortgage detail. the that to near XQ you're incremental frame all guess buyers a as any working there mentioning relative

Sure.

just equity. Ryan, So spent internally time a about home we lot talking of

Just recent to levels just quarters. put quarter, seen this not in for context, us are There that X the historically. recent we've most

So we've seen a real spike there.

the then under meaningfully quarters, so of our many to buying great And when look that's hood, last we home okay, we X And in see. is the partners say, up equity? are how which

size more little is the may the in cash some there. talked home try some what lenders We talk we've is recognize inquiring merits a to of as It we them And meaning actually home identify to different it that equity, Now about bit past, the on. try a talk a to of may about equity a certainly opportunity going have that. refinancing. and who They is who lead, of the challenging they buy market about out makes into consumer product.

Now occur. is certainly, about equity people cycle the going is have their a bit think homes. What what I amount that to different this in is little of

typically we might equity our would are of second market adding hard don't we et for ago, like adding It's product, lenders, customer. think home introductions. a seen of be thought at well already with would who so that. product you. a I a core other would But who quite or identify equity. do in -- product, not are a better for consumer. lien development very There as lenders I cetera, They have size are product because for home those mean, product customer be that consumer home we for a examples who unions, bunch X have to That things us we're seeing credit of a are great the years are lines the just And it's better traditional in a don't levels equity

as give grow somewhat if being we're sense, some sky. forecasting to not to So you We're there. just the it can conservative

to is now. Now revenue so a better more purchase very, purchase. that. very relates cycles, the on side the purchase, done of as to volume In it in we've need lead and previous to strong, thrilled with deliver per we job getting volume we're right

part we it. So just need is consumer to work will that that about on. that Doug improved think something And experience, talked be we the of

more to advisory expect a that an should If the experience, be of what this experience, go you through stage it's in you intended a next bit of of process.

process putting we're more a will We so the filling consumer make a think form a next. experience. We up bit it about purchase little experience. it bit that's think And understand better a coming of friction out better little consumer the think to what's of into to lead your and

in market is the And lenders. purchase that rate inventory, for purchase the right? of inventory even the will One low, that headwinds ultimate had be purchase is weak though we've strong, so if conversion declining our recognize is

been has a that headwind. And so

inventory as us our good the business. up market, in housing a loosening thing you So in for see probably signs net purchase of

for the the purchases were able it. only sort refinance back as also drafting mortgage. as made RPLs add volume will our Today, of be up, at was J.D. the on comes enough time obviously I there. traffic big about RPL home remember lenders to to, come LendingTree switch thing alluded these profitable. when goes it on concerted then market I'm old from increasing, as down, point, to goes as with RPL And largely into mostly be business to And as you'll equity, just that most efforts of point actually significantly to purchase refinance will we're but refi making getting some and that then higher. in lenders equity home in And broader J.D. of, a off would

lenders that in -- automating XXXX was credit was importantly, was the related a improved bit. lot when and to that -- Now which sloshing conversion into But improved fact rates and little which be automation these RPL. obviously, a and of dramatically, 'XX to it money to sunk more able had around

that's just back depots remember lenders need as to successfully that the in do how they to it the comes last cycle. years. need expect would it the highly, in did but to -- I that, the These with So loan just XX past others automation happened highly and

question line comes Security. your the from next And of Youssef of Truist Squali

A couple that do businesses of the of letter, questions. segment talked I and That's you. certain. to prospects continues about for well I Doug, guess in increasingly X think the you X consumer

can the tangible on I'm home So are back and we're perhaps Or been I competitive of? just all you if stepping was how concerns quarter-to-date? months? of any looking then on least -- trying to And pressures last, is the the between X your just And out that and anything moving of sense sense macro share business a at any just kind at us insurance. market based maybe maybe the has of delineate pressures the of help whether wondering all it, and the macro in to -- you of get X aware pressures of that kind the and kind seeing there? kind call that are in

this, And charge marketplace. increased they the the that other handle And to horns, APRs, their they their will segment. and this example, raised -- FICO they underwriting they a start lenders reduced past that all to a in, that in business. speak, that to the to credit are open their loans, that the all time by their And if that pulled filters change you for sins. raise not happen is people quality. so a allude different up for they would same, they and way, makes see be by of and time story. then these horns to I criteria If pull the were that in alluded it the and loan all going their score make as negative and and they're X% rates it requires, from market you lenders. the going subprime They what just and with to personal would to I'm But and you the bit, upped little that's Consumer public borrowers at they can I'll we it wide share, giving know have pressure see let the running guys

seen loans, business I in J.D.? said, that and now, it, that the had as profitably, things their different would I they're And open capital way, pretty you -- we help is like then it even So you're margins as at And as wouldn't story. for them. to certain think to up. want like But there, that. why seeing at the think in people they see and I increase necessarily are basically, But they just But by markets that the criteria. outlets recession, obviously, more. loans the willing in then of it the just and mostly get that I'd times originate Once underwriting weather happy. adjust even to. the be want -- decrease lenders They a don't things it their in then see that's But we've they a and personal you price to anything and offer in, it's it me pressure. that's I come pull through entire it's resilient surprise And the to all in

mean, we as lender. pointed between differences We've is, it, the there's if look signs of signs some type Trent -- look behavior we add would out, some for right? tangible I I All Yes. seen of for

take there's box bit the you're -- pointed going They're credit out, going keep based in our is just the credit in majority personal It's mind, They're end of of of grow. a of the box, compensation couple up still the pricing. they're close back tighten to And to rate. a tightening to off lenders. with So a loans looking still on -- active. as little Trent like key of

rates, to as look close So rates, watch rate In worse. one. not that's that's at for something we there. we quite transparent, approval that and we have but card, prepare we'll credit watch to be approval the That's

beginning which early most our to And been this, a in like us rational It has have not pointed that's third last I we've But for positively think, because guess is here the well. well implied business through and went difficult for in time seen I as It affecting so as certainly late earlier, The a part. is mix, the the kind out, very is how business And it's second mix. of in period guide is just healthy. I of the Trent that. tightening, consumer concerns. right? in the our should that quarter, at It markets emphasize our all, capital through business rolls that for prepare high-margin pretty of a that we

And so for have to that. we prepare

of I'll information on market just on -- share the specific in And the share, my have does, rising the at Obviously, fingertips, maybe just -- mortgage, market. as I shrinks, market couple we're don't a to anecdotes. overall of going have somebody else

our don't they price, show their marketing which they're provide we I as enough also aggregator/marketplace shrink can love all And that in of convert shrink much make we the they except goes And hours, pat our the last. you'll massively. to bank to our LendingTree, for position that's share seeing where to to that other competitive see that to the which the be times they and helps recently -- major gains. at the -- shrink lenders for like we on going ourselves now think volume to sources place that that of -- -- example, like budgets the actually we right money, of But too we it just can do when, other are one cut-off and signs more. competitive the all take like if back what However, and

also to for how to volume And brand has some can't are driving that, search, only our on has which a quality, there, campaign Now means some unit got that see but it high. competitors high-quality when a and where through lenders. companies -- which new and a in also that in They not you're things where volume do go effect it because halo to that. you is economics their report. wait those our the we've that's do brand other high addition TV But driving converts of enables aren't us --

So then they're stuck a bit affiliate in little and land search. of

Doug, pie on our just quick, because where quite that a the insurance, in very a is I'll dollar in bit. of in property the And hit to shrinking by marketing real we're comment world confident a and growing that is piece casualty pie insurance

Our year-over-year. paid up search XX% traffic is

Our up SCO traffic is year-over-year.

initiatives Some talked business at XXX% our up of about I Day, the Investor agency year-over-year. is

way product direct-to-click up the is -- Our year-over-year. volumes

Our product way inbound year-over-year. up calls volumes

highly are very we when a we'll that we've piece we're starts increasing, well share this up will, much in of market that been pie environment of which gaining and pie. set is that inevitably that lot So a confident the have bigger

if just one, Maybe last may. I great. That's one

do this and can send buyback allocation, to speak And there? much of insider can signal in of having any at potential. even the right the capital buying some to kind you How of terms point? it you In interest

we're Let buying back Trent love it stock, with to because but Trent. take handle away, not that one. thrilled be It's -- we'd it

maturity agreement this that we issue last enabled new say, us think took term a the the I'd just quarter. convert obviously, in little fall to of quarter, the care credit to struck we alluded loan but second that and pay a Yes, I we back last bit

like credit basically and that our unlimited -- capacity restrictions things are there is have and of sub leverage around the buybacks other certain investments we net Xx. if back when buying agreement, stock, part As that

little end we're above threshold. a of As quarter, the of that the bit

would buying back and in the that sort to a be last this and into that we restricted bucket so And of get exhausted us payments stock, QX capacity of have year. of we enable QX year

a bit to so are with buyback. the little tied regard our And hands

we're whether bit. ways cash. with little million is sitting with We're it's that the available to cash, to here deploy Unfortunately, really delevering ways that on that that buyback whether $XXX nearly think Now we're us, to looking a M&A, about at we're actively cash said, but deploy the today balance happy option how important of sheet. not fact to the it's

And on so tuned stay that front.

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

can so, net talk and decision going which, to I EBITDA or brand a pretty implies about I decision. with numbers, guess, leverage about the kind it to of in is $XX guess the strategic the the of spend invest -- kind given looking you big at million you're

So can the that? talk when margin? then you expect revenue about strategy to -- we the the should spend strategic benefit TV And to that start and behind

of it's take typically thought product really which in revamp know. you economic support on builds. I've say when times we experience it that think take the was strategic we're Trent expected world it. liked was the we -- I experience posted, And a hit interesting innovation me year and then said let the eliminate we're -- product was the it in proud spend now. And and the tell as investor the complete -- that money than part consumers heard I it Whenever to that of, to part. And have keep more first have major but customer XXX of embraced our X-month was a a time, of to guys thing you a and great. part period calls period XX, probably this the that going trying But interesting and mortgage was it, lot tested looks on little had. I'll a called a initiatives It We we MarketPlace bit. it but return -- which our we'll really just loved and negotiate call, side a reason, about help phone and what done. early second our them, have meetings Consumers we will you previous marketplace we're I'll second the a as go you over which design. TV, an one it. had of on that to tracking too It's The opposed

the we so we it other already addition And of And go time. right, extraordinary were as we and ad afford notion the is to more up, the addition is and is as volume of said, shopping side, all all in said, rates And all that strategic then because comparison looked And that, levers, in rates it lenders. can around low. too, right high-quality the consumer much mentioned it, we important. even hits we I for can, on now to that the

in as tested then was relevant ever said, compete, and that a taglines, we've high it's buying, they these top. highly when came I different as still XX favorable. So on win, out ads, media And anything highly, And banks as rate -- tested rising the when we interestingly, run. environment. And we you scored

you'll And see really, on ad. they're that well. doing So really the

we ish, it's inside And onetime. it's think all monetization is a that a $XX great as So campaign expensed cost of improves. maybe more. that breakthrough have million, or a basis it, less you that do think We give to fixed little

the expect would high in future. as that be I So production wouldn't costs our

We loan a also a pretty spot personal at business of doing that time when out too have well. this is

can't run level we it But it it of wanted and -- number, trickle do you've to -- do also you wasn't you media at got it. right? a when to at was that a So huge just

You got it.

we up, it, it and it at that a month. And and some we spend have money TV it we'll time, back the which measure us and an did We as -- $XX have days, go media every level but it will doing old we're of if keep -- you in roughly a point, was right can period doing it that at works, made see thought the million impact, that number. do in it all was to RPLs over

got to it So point month. your and where RPLs because profitable a every to did you all get was we us just it's TV money made

all when at So you other get where thing going over advertising it, we it's a of point other profitable. TV we're our RPLs is -- money actually just losing doing breakeven help fintechs channels. only that got look And to confident pay we to your hopefully least you do it's fully all the back at to and nice and and

can fintech. so than And any way we other do profitably that

we as expecting a how follow-up, And much then XQ? in should branch just

Yes.

very buck around of period which been the of as intentional Doug we and it the QX, QX launch get off is nearly very that's launch. and to onetime we're tends we've the back with The and then mean, historically things for the other it, really biggest affecting the is and media $XX in the July about some mean, retail in intended of Jed, in we're ads be number we'll where we of right, itself media around I in think air to spending the I So into right? we're produce expenses of around time when going which to go think on of to about quarter and with some up It's light very cost the the -- million, the the media said, the ancillary you're because half holidays. is nature fourth campaigns. because in bang heavy August, competing QX media.

current doesn't the the all contemplate much, in spend media so if at fourth any, And quarter. guide

of TV said. QX Trent exactly as a in don't currently run for lot We

And Stephens. your next John comes Campbell of from question line from the

Back to the mortgage business.

think is that That's you refi maybe implying I obviously purchased group X%. down said guys sharply. pretty you

think shortcut like but you is maybe purchase to probably I'm what of maybe today, mix refi And looked versus expect that back this, hoping into but can like I you year? make guys we going look overall what what it, that last could forward? the

just it me. front have in -- we Do I'm not I away. give much you of how want sure

because little reason that the X%, what's number John, I'm give disclose Yes, pausing a X% -- It's challenging, a to that the is sense we right? don't you we bit number. John,

letter. purchase was guys mortgage think, that the in out growth, I the called X% you shareholder that The

Yes.

So purchase up year-on-year, X% that's right.

I think Okay. what you're --

So apologize. I X%. They're different X

So we've home were right, purchase you're ago. about down around And from that's despite that about. the a we home equity talking RPL. grew volumes year right. talked revenue That's being But X% scarcity

mortgage do We refi purchase that in John, by is for the reasonably favors declines not going seeing from driven seeing right? forward to a environment that The the we're standpoint. going The in opportunity think remains relative Yes. obvious obviously rate the we're obviously, to, resilient right? from us is business refi, activity refi. is purchase I the any mean, and weakness in reasons,

heard lean on so on to got talk we've home so you've about And and far. in purchase us that's what equity, and

precise kinds can we sorry, all I'm numbers precise, fun our more get that can't we a you more of And competitors into If be there. little want back wouldn't we do.

like Understood. years couple maybe it it heavy -- if is, of something forward? I refi can't mean, remember I you was question I purchase take very obviously, -- it think going over do in think was very, filing, guess very but a an mix a ago. can there the or the seems at Day you was point, one of Analyst I XX%

the that roughly, fewer are purchases RPL over, a as combination it down, is said, then that. I lenders but we in going qualify what future. that want twice to better, you to more. I'd of much. fewer as that's and purchases, you is Refi because helps refis plus on as believe, still the in layer experience said, as I RPL but Yes. think come is going both but and as will that, growth reduction getting the -- But the and though, Xx new our RPL But and see hope could roughly because borrowers J.D. yes, -- even it switching for purchase refi. opposed mortgage of to We plus on up

it. we in do pick lot volume and advertise but a drive up like climb, strategic conversion that but then down independently, both, initiatives, more why as we're going to you to advertise, RPL's and our in somewhat comes can ever can operate we you that's they when really so profitable, can go rates it's it up And we're

To John, we're okay. nicely, was it, you great. to RPLs They've was, that sense, refi where call are. a purchase give though, purchase, which QX purchase Xx Xx refi they is give are happy overall. increased QX sense, you a approximately

was refi. is Now equity that the than one thing notable actually home bigger

would home the that direction inventory contributor that opportunity, become that's an to love of and see that purchase in a -- move scarcity for. that so been And but headwind we we've actually managing equity is, is that's and

higher I a a of reset investment the think, obviously, I seems EBITDA. kind you given time appreciate spend on where bit of Makes It that. of mentioned mean, the sentiment media. little on to and lot I about And cost Doug, investor the then a on the Okay. kind that. of is is given, of and what sense. pounce like now

about for know maybe I I here? off frame adjusted EBITDA, we -- to there thinking free get So kind be you free from cash a flow conversion a of don't that. if cash is should totally But Trent, maybe of up? flow the how your way that

pretty brand which flow, to EBITDA really report mean in as good a absence free half I flow. I that back look of of on based of an cash continue spend, good fully we CapEx, But Yes. the actually as mean with EBITDA we QX cash a year, we onetime into -- generate that a the adjusted number, again, you and might positive get a into quarter, right, million to closer cash the pretty back sub-$X back the flow, started breakeven. is adjusted math, be QX to so representation is expect And our we for out that proxy right? free small gives

in but pretty you're reset So EBITDA, basically still unitive. a cash

That's right.

from And Wildhack comes Rob of your the Autonomous next line Research. from question

start up then business about this implies Is itself the of up into revenue was that That in inflection do think volume approvals only that both quarter? a but decline I And revenue on to and that you how credit card. forward? saw the Just XX%, was price per going an side approval down. were XX%.

we with a is we've a that's of to that. our the launch who of issuers. into much we that approval third mentioned Recognize new dip watching and too earlier, read obviously rate -- though, big into got cards travel-centric an approvals. certain are some issuers We've wouldn't as We opportunity that go that quarter, I seen bit in trend. try certain something

to So new just a an lower. when RPA or straight that more -- issuer was that's more bit a little we more rates to focus would that merit, a grew a issuers important have our there's that new been does I been on opportunity has grow tend But the contributory have readthrough XX%. a of a okay, card real will for launch be a our but of -- revenue couple with a XX%, with key bit that mention there of instances than us. up card approval to issuers, did orientation and of

loans for our accounted we've that is and that into here. personal guide. does That factor in And so what seen

also And the that strategy continued other better insurance? when out And Okay. consumer, better I'm did it. come one in that back through And and bigger -- of hasn't XXXX the to business Got hearing are in side the then to you trends really of home that gotten growing, has picture, spent on yes. investment is kind pandemic, levels. definitely and you been but when

which the take are wondering and strategy right during home to and or pandemic consumer I'm decision maybe having in you now? anything that that tougher the learned there's insurance, apply can can away So time you if from a

hopefully, interesting you that our could the ideas and by on something -- it on investments going way, that spend typically the by some money each talking start? tech other our on we're to we're to for hopefully, means And I about of people. to that around, point, and a all we income strategic Tech and that chew investment, like break come by some not gets to -- Yes, but actually that me and want about and time, in. you think some amount us, word or we return. period of at it's are so product When up Do then talk expect tossed our -- way, have of down you initiatives an statement. lose on a new you see it investment, of ends I work the a key can large by

that -- our gets of and the margin. to in you all dollar last market then pandemic the profitable typically overall that XX% but marketplaces, through to you So

So that's and happens. of if lenders asking source profitably are what we any from them marketing can borrowers for channels, our

to there pandemic, our through really and went the lenders loans that profitably can area, customer that run we close. it's through in marketplace some particular Does in they been might volume to get make but that slightly practice. marketing because every -- on will -- can the negative subsegment, the some times have not like not We in particular that it's actually in to go deliver So we we sense? where personal negative

mean, making go businesses of Rob, I listen, Yes. to business under segment. situation, consumer on related loans be thrilled period, happy debt investments, our the we're our to happy of competitors is have at a the those the in So student from the look is the good of and services footing. I with and that's network, spending and size as way, in the recovery experience that's better that credit because well it's through learned year. hood that and really government progress the true student small basis you just right? to a part XXXX, materially recognize of through intervention what pandemic. We're there. personal to Card big for are weather you by learned the comparison. look And the you've bunch of But you environment if There have And it behind the in the question, there. that's you one when to you just for we extraordinary. businesses XXXX business reasons having it's business some and got card. don't compare We've tough that -- at are of got actually monthly a on we're really other We're candidly pretty a then freeze. is And them, as that the

what credit investment business. we're -- them. businesses, business the good in a good we're and with small to particular, doing personal were going doing We it's we're insurance. and whether that behind card That's business, business, that thrilled the in the that's in and we and knew loan put we're Assess home, what

-- And we rattled is so away. get goes market honestly, it I what the learned, guess don't when

has reason If happened be we and had to the businesses quarter about 'XX, very second of those the concerned investment you what every paid think off. in about

think better of I loan managing as got one Yes. operationally, I individual other pandemic, to during this subsegment whatever we got learning each at and it the and type is about boring, have it is. marketplace is but somewhat which here,

in equity So to equity, about mortgage, home home, and found we and underneath And and that the home card, subsegments the and And literally which found ability card. you so in that. underneath purchase about. when have got a mortgage card there home refinance different home. a you down guys any underneath things, purchased, for not of credit you've talk like waters underneath -- is choppy us is The let's those was one take credit a whether it's to refi, just of marketplace J.D. talking

rewards that So wants make and entirely maximize Scott the earnings. could and finding. has that marketplace analytics said, that's to basis, not group it a insurance, minute-by-minute, somebody cards is cards. And how as that much work, to our think discipline put travel what's a in does great with And well. by J.D. on others think, do but this talk You And by enabled the marketplaces day-by-day and helping got I than automated, way, us. better and out, between market process, those managing of a extraordinarily more lot then it, X we way, a right? communication of for I marketing the And sides, keep that's environment to to just us

anything areas those of each on so that that? manage Scott, to you grow pie. add got to the can whole You

in that's possible are like just -- buying. focused would focus products doing. our really on are many we're the clients high-intent searching as really to that consumers control that downturns say want the what just for And as you I Yes.

high-intent clients I on monetization of I'm margins going to sacrifices more can to may the we're compared that's well want decisions run. make other with the going of I'm that's I they in then down, products that because lane control has of and on on. And to extremely am be think money an at very their clients continuing sure LendingTree the competitors these make the I'm over make products on. more part like, products advantage and want gross to And money that's is the being you they improving to and And that I focusing gone traffic. spend long single good positioned what spend building what -- -- some and investing to think in

So yes.

from Kennedy comes question William of line next Blair. Cristopher Your of the

This on is Mark for Chris.

clarity Just wanted a little with more TreeQual.

be going and XXXX, form Day, end Analyst that the to was lenders. interaction early the between main kind of during of by TreeQual LendingTree of it to year, So this alluded is

with if see accomplish on that on company what the to wanted preventing just I track put current remains the it? to and progress, if not, would track? And that So what

Yes.

in still Day, a should of board. It X We -- X that hopeful. we couple on I have are I'm by loans, to hopeful lumpy. emphasize Labor personal more, of X things. So be have whom tends issuers we have

have We issuers work to with and of through working ways with issuers. contracts

suddenly in capacity And so will that I credit we personal think not the thing there card. most is unlock space, notable in the just loan

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one I to we both current third and issuer with -- a party with TreeQual where think have work solution. that the the solution we is

XXXX, better the that to as to through is for think going methods go issuer. authenticate who we you're I see other consumer

in of issues direct evolve. to is pipeline, and way, have work fine. you, with have that's way rather said we'd product the the some That's this to the going We many whom us,

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think this improving intent that we if deliver a multiyear you basis, So and part what on of for improving is partners. our

working have shortage traffic. We no what just higher want working with of partners through. intent is method who them, we're of It's that a

And new regarding then the and see insurance Great. volumes follow-up overall. for that's with business wanted insurance I insurance to check just how experience up. the one driving the

you don't why that? Scott, take

that. it client Yes. it's other things, is in and Yes, would to in the and we're in internal very our external I is centers call and say driving we're distributing centers early process It agency driving insurance well. checkups, engaged and and -- our of innings just centers, our proactively we're carrier into the both it our implementing out, volume both call as to call

So it's snowball it's but implementation, been a rolling pretty phase. smooth in early the very

we're I through built or was one And ask a the doesn't Insurance basically, agencies. thinking by we homeowners us, with Yes. that had where done or our would they somebody years going closing ago LendingTree about thinking flow, for can integrate you had get mortgage when and this least alluded But how like space. think insurance something the new this it insurance, at free from experience if our earlier, I the say idea end about up J.D. in checkup cross-sell and worse, you for auto like to we even just was better but somebody on wouldn't to insurance might Agency. policy an And transaction

be well. which as nothing So this so of early yet. we stuff, is -- down have report instead cool. should flow, a But I rates great thought and the days. of but move happen to really honestly, that But it integration it's direction it's that we will

line question And from Melissa your Wedel the from comes of JPMorgan. next

impacted already made sort And have them compares of cycle chain I of how confidence seem be cycles? circle by the is a in to optimistic insurance. guess I about back for would but on division? persistent of issues of that could the years the different, was hoping the been the that that asked, would inflation a of comments particularly and question in line Scott. a I curious, lot previous And you've the level time sort out. given of rebound a some that I'm cycle. rebound couple bit It cycle this impact have supply of to some in that of I'm guess shake does curious this could you think take significant to you A

prepared say. back to just it that, Thanks, when and rates was, just metrics cycle behavior levels. quicker returned they just driving Yes. say, they right weather the inflation. expecting through to and went XXXX, weren't previous cycles. mainly shock comparing to prepandemic work big Melissa. events XXXX, some those persisted They worse normality, in inflation this -- The then the pull now was just losses way this catastrophic I the hit that year. just I to the than inflationary last of I'll increase been that major would -- then just short officially has was industry, back and the half back to a the yes, it's short the where to And much needed real Yes, XXXX start And were months the that have a specific back it's industry. than is was insurance to and first industry for around XX was through to due they've they to would marketing, year, on term there In big and downturn normal late in last XX events able a

time at cost of metrics cars, cars. repair labor key look used cost some car to of and You costs parts, prepare like of shops, the

just All things heavily. those of increase very

take at the it's similar comfortable increasing years that to carriers being the going it repairs they're to is the normalize, of cost rates for of that increasing. a Now X more level to

than it's of stop in comfortable back inflation So has to for rather normal. line being to staying to more get with it that they're with things

carriers are most be the increasing it's our just XXXX through cautious us. right Certain and It's now. end what of levels. are saying it's one of very of for carriers going probably bad So storm right or the to being forest hurricanes you're whether year telling And looking X we've start the at is a budgets again. -- looking they before more now, then season and they're that And another got of this fires weather stuff. category -- carriers at are

I not there's are going back the cautious a for bringing that carriers that maybe But with running lot at no we're comfortable before They're would the this happen. Did little don't premiums didn't we're this maybe think combined So catastrophic at But hoping events didn't of -- their major question? events levels weather looking taking are major on. a come are have summer, earlier, I months -- even think hopefully, profitable catastrophic that bit your a if approach even then and here. X-plus don't X-year consistently quarter, recovery what really summer. -- do they consumers some it's to take happen inflation time, the and any answer a fourth

It does. does. It

questions I like would right. for the All remarks. have. Lebda we And the to back closing all now that's turn Doug conference to

both just navigating Thank as a walk And we is in just to to products. It close, across you very almost of see much for often and today. that partners demand of from company our you are that gum. chew we Operationally, I heck our one ourselves can really not to pride your all down time LendingTree a storm. want that say

even in our challenged. win that that done at and year, to get as team initiatives us shareholders. money several operationally key And that we in to and a a However, committed our were committed to beginning that the us off-line that, keep we we've making might and of and brand addition of the out lay marketing strategy stuff more able channels, to advantage to competitors enables helps some as our the digital

is improve XX big is go process into projects. the contancorous, TreeQual, lot today but a and you've a company. about a at done, our to this move moving hosting times weeks, We it we win as the You -- going it. to of was last deeper to that in major after heard that's about for we're Marketplace and couple even and continue J.D. process our other heard on X-hour meeting got

look takes grinding people shortly little to LendingTree you to as about of committed that solid. next a the Scott. come And who for is talking a which to you a working to. we scaling, you we you've as There's know can and day to We it's It of to obviously and the and we of that the to you're volume business for got single us. forward thank making of matter That economics about team now heard operate in bit to as You every our the makes this unit insurance there. And X,XXX a quarter. agency is sense. are here hard are going couple LendingTree. support promises My Please hear efficiently a and sure and others, -- commit from time your more with lot

conference us joining and participants today. concludes Thank you, thank This presenters, today's call. for you,

now You disconnect. may