LendingTree, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>LendingTree, Inc. has filed its Q1 2024 10-Q report detailing financial performance and business operations.</b>

AI Summary

LendingTree, Inc. (TREE) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. LendingTree, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. Key financial data and segment performance are detailed within the report. The company's business address is 1415 Vantage Park Drive, Suite 700, Charlotte, NC 28203. LendingTree, Inc. was formerly known as Tree.com, Inc., with a name change effective May 7, 2008.

Why It Matters

For investors and stakeholders tracking LendingTree, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial results and operational updates for LendingTree, Inc. for the first quarter of 2024. Understanding the segment performance and key financial metrics disclosed in this report is crucial for assessing the company's current financial health and future prospects.

Risk Assessment

Risk Level: — LendingTree, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial disclosures. However, the absence of specific financial performance figures in the provided header data prevents a more detailed risk assessment.

Analyst Insight

Review the detailed financial statements and segment performance within the full 10-Q filing to understand revenue trends and profitability drivers.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-05-01 — Filing Date (Filed as of date)

Key Players & Entities

• LendingTree, Inc. (company) — Filer name
• Tree.com, Inc. (company) — Former company name

FAQ

Industry Context

LendingTree operates in the financial services sector, specifically as a loan marketplace connecting consumers with lenders across various product categories.

Regulatory Implications

The company is subject to SEC regulations for public filings, including the requirement to submit quarterly reports (10-Q) detailing financial performance and business operations.

What Investors Should Do

1. Analyze the revenue and profitability of each business segment (Home, Personal Loans, Insurance, etc.) for Q1 2024.
2. Examine any disclosed changes in debt or equity structure from the previous reporting period.
3. Review management's discussion and analysis (MD&A) for insights into business performance and outlook.

Key Dates

• 2024-03-31: Quarterly Report Period End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data provided for the 10-Q report ending March 31, 2024. Comparative data from the previous filing (e.g., 10-K or prior 10-Q) is not available in this extract.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share TREE The Nasdaq Sto

Filing Documents

• tree-20240331.htm (10-Q) — 1018KB
• tree-2024331x10qexx102.htm (EX-10.2) — 1302KB
• tree-2024331x10qexx311.htm (EX-31.1) — 10KB
• tree-2024331x10qexx312.htm (EX-31.2) — 10KB
• tree-2024331x10qexx321.htm (EX-32.1) — 5KB
• tree-2024331x10qexx322.htm (EX-32.2) — 5KB
• image_0.jpg (GRAPHIC) — 1KB
• image_153a.jpg (GRAPHIC) — 0KB
• tree-20240331_g1.jpg (GRAPHIC) — 36KB
• tree-20240331_g2.jpg (GRAPHIC) — 327KB
• 0001434621-24-000013.txt (&nbsp;) — 8653KB
• tree-20240331.xsd (EX-101.SCH) — 43KB
• tree-20240331_cal.xml (EX-101.CAL) — 77KB
• tree-20240331_def.xml (EX-101.DEF) — 230KB
• tree-20240331_lab.xml (EX-101.LAB) — 594KB
• tree-20240331_pre.xml (EX-101.PRE) — 440KB
• tree-20240331_htm.xml (XML) — 823KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 5. Other Information 36 Item 6. Exhibits 37 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements LENDINGTREE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2024 December 31, 2023 (in thousands, except par value and share amounts) ASSETS: Cash and cash equivalents $ 230,745 $ 112,051 Restricted cash and cash equivalents 16 5 Accounts receivable (net of allowance of $ 2,026 and $ 2,222 , respectively) 63,318 54,954 Prepaid and other current assets 31,604 29,472 Total current assets 325,683 196,482 Property and equipment (net of accumulated depreciation of $ 36,702 and $ 36,827 , respectively) 48,300 50,481 Operating lease right-of-use assets 56,094 57,222 Goodwill 381,539 381,539 Intangible assets, net 49,132 50,620 Equity investments 60,076 60,076 Other non-current assets 5,871 6,339 Total assets $ 926,695 $ 802,759 LIABILITIES: Current portion of long-term debt $ 14,899 $ 3,125 Accounts payable, trade 3,097 1,960 Accrued expenses and other current liabilities 69,717 70,544 Total current liabilities 87,713 75,629 Long-term debt 631,333 525,617 Operating lease liabilities 73,637 75,023 Deferred income tax liabilities 2,219 2,091 Other non-current liabilities 278 267 Total liabilities 795,180 678,627 Commitments and contingencies (Note 13) SHAREHOLDERS' EQUITY: Preferred stock $ 0.01 par value; 5,000,000 shares authorized; none issued or outstanding — — Common stock $ 0.01 par value; 50,000,000 shares authorized; 16,577,446 and 16,396,911 shares issued, respectively, and 13,221,980 and 13,041,445 shares outstanding, respectively 166 164 Additional paid-in capital 1,234,214 1,227,849 Accumulated deficit ( 836,687 ) ( 837,703 ) Treasury stock; 3,355,466 and 3,355,466 shares, respectively ( 266,178 ) ( 266,178 ) Total shareholders' equity 131,515 124,132 Total liabilities and shareholders' equity $ 926,695 $ 802,759 The accompanying notes to consolidated financial statements are an integral part of these statements. 3 Table of Contents LENDINGTREE, INC. AN

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1— ORGANIZATION Company Overview LendingTree, Inc. is the parent of LT Intermediate Company, LLC, which holds all of the outstanding ownership interests of LendingTree, LLC, and LendingTree, LLC owns several companies (collectively, "LendingTree" or the "Company"). LendingTree operates what it believes to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans and lines of credit, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes, sales of insurance policies, and other related offerings. The Company primarily seeks to match in-market consumers with multiple providers on its marketplace who can provide them with competing quotes for loans, deposit products, insurance, or other related offerings they are seeking. The Company also serves as a valued partner to lenders and other providers seeking an efficient, scalable, and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these providers. The consolidated financial statements include the accounts of LendingTree and all its wholly-owned entities. Intercompany transactions and accounts have been eliminated. Basis of Presentation The accompanying unaudited interim consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In the opinion of management, the unaudited inter

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Certain Risks and Concentrations LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and fraud. Financial instruments, which potentially subject the Company to concentration of credit risk at March 31, 2024, consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company requires certain Network Partners to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding. Due to the nature of the mortgage lending industry, interest rate fluctuations may negatively impact future revenue from the Company's marketplace. Lenders and lead purchasers participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders and lead purchasers can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans and other products from Network Partners without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the Network Partners whose loans and other financial products are offered on its online marketplace, consumers may obtain offers from these Network Partners without using its service. Other than a support services office in India, the Company's operations are geographically limited to and dependent upon t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) NOTE 3— REVENUE Revenue is as follows (in thousands) : Three Months Ended March 31, 2024 2023 Home $ 30,443 $ 43,675 Personal loans 20,127 23,599 Other Consumer 31,324 56,110 Total Consumer 51,451 79,709 Insurance 85,872 77,082 Other 2 42 Total revenue $ 167,768 $ 200,508 The Company derives its revenue primarily from match fees and closing fees. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied and promised services have transferred to the customer. The Company's services are generally transferred to the customer at a point in time. Revenue from Home products is primarily generated from upfront match fees paid by mortgage Network Partners that receive a loan request, and in some cases upfront fees for clicks or call transfers. Match fees and upfront fees for clicks and call transfers are earned through the delivery of loan requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a loan request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a loan request to the customer. Revenue from Consumer products is generated by match and other upfront fees for clicks or call transfers, as well as from closing fees, approval fees and upfront service and subscription fees. Closing fees are derived from lenders on certain auto loans, business loans, personal loans, and student loans when the lender funds a loan with the consumer. Approval fees are derived from credit card issuers when the credit card consumer receives card approval from the credit card issuer. Upfront service fees and subscription fees were derived from consumers in the Company's credit services product. Upfront fees paid by consumers were recognized a

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) As the contract liability was in the Ovation business that was closed during 2023, there was no contract liability at December 31, 2023. During the first three months of 2023, the Company recognized revenue of $ 0.8 million that was included in the contract liability balance at December 31, 2022. Revenue recognized in any reporting period includes estimated variable consideration for which the Company has satisfied the related performance obligations but are still pending the occurrence or non-occurrence of a future event outside the Company's control (such as lenders providing loans to consumers or credit card approvals of consumers) before the Company has a contractual right to payment. The Company recognizes increases or decreases to such revenue from prior periods. This increase was $ 0.3 million in the first quarter of 2024 and $ 0.2 million in the first quarter of 2023. NOTE 4— CASH AND RESTRICTED CASH Total cash, cash equivalents, restricted cash and restricted cash equivalents consist of the following (in thousands) : March 31, 2024 December 31, 2023 Cash and cash equivalents $ 230,745 $ 112,051 Restricted cash and cash equivalents 16 5 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 230,761 $ 112,056 NOTE 5— ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are stated at amounts due from customers, net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, previous loss history, current and expected economic conditions and the specific customer's current and expected ability to pay its obligation. Accounts receivable are considered past due when they are outstanding longer than the contractual payment terms. Accounts receivable are written off when management deems them uncollectible. A reconciliation of the beginn

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Goodwill and Indefinite-Lived Intangible Assets The Company's goodwill at each of March 31, 2024 and December 31, 2023 consisted of $ 59.3 million associated with the Home segment, $ 166.1 million associated with the Consumer segment, and $ 156.1 million associated with the Insurance segment. During the third quarter of 2023, the Company concluded that a triggering event had occurred related to its goodwill and an interim quantitative impairment test was performed as of September 30, 2023. During the third quarter of 2023, the Company's market capitalization fell below its book value. Additionally, the Home reporting unit continued to struggle due to the effects of the significant increases in mortgage rates, low for-sale home inventories and the rise in home prices. The Insurance reporting unit continued to see pressure due to the consumer price inflation negatively impacting carrier underwriting. Upon completing a quantitative goodwill impairment test, the Company concluded that the carrying value of the Insurance reporting unit exceeded its fair value which resulted in a goodwill impairment charge of $ 38.6 million in the third quarter of 2023. The fair value of the Home and Consumer reporting units exceeded their carrying amounts, indicating no goodwill impairment. The Company will monitor the recovery of the Insurance reporting unit and the Home reporting unit and any changes in the timing of the recovery could cause an impairment to the Insurance or Home reporting unit. Intangible assets with indefinite lives relate to the Company's trademarks. Intangible Assets with Definite Lives Intangible assets with definite lives relate to the following (in thousands) : Cost Accumulated Amortization Net Customer lists 76,100 ( 37,110 ) 38,990 Balance at March 31, 2024 $ 76,100 $ ( 37,110 ) $ 38,990 Cost Accumulated Amortization Net Customer lists $ 76,100 $ ( 35,644 ) $ 40,456 Trademarks and tradena

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) NOTE 7— EQUITY INVESTMENTS The equity investments do not have a readily determinable fair value and, upon acquisition, the Company elected the measurement alternative to value its investments. Accordingly, the equity investments will be carried at cost less impairment, if any, and subsequently measured to fair value upon observable price changes in an orderly transaction for the identical or similar investments. Additionally, if a qualitative assessment identifies impairment indicators, then the equity investments must be evaluated for impairment and written down to its fair value, if it is determined that the fair value is less than the carrying value. Any gains or losses are included within other income (expense) in the consolidated statement of operations and comprehensive income. In the third quarter of 2023, the Company determined there was an impairment indicator related to its Stash investment and performed a valuation of the investment. Based on the valuation, the Company determined the estimated fair value was below the carrying value of the investment and recorded an impairment charge of $ 113.1 million. NOTE 8— ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands) : March 31, 2024 December 31, 2023 Accrued advertising expense $ 37,334 $ 27,859 Accrued compensation and benefits 8,072 15,091 Accrued professional fees 816 1,101 Customer deposits and

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View this 10-Q filing on SEC EDGAR