CHARLOTTE, N.C. - LendingTree, Inc. (NASDAQ: TREE), a leading online financial services marketplace, today announced a robust start to 2024 with first-quarter earnings and revenue that surpassed analyst expectations.
The company reported adjusted earnings per share (EPS) of $0.70, significantly outperforming the analyst estimate of -$0.10. Revenue for the quarter was also higher than anticipated, coming in at $167.8 million against the consensus estimate of $162.77 million.
The positive earnings report and an optimistic financial outlook for the full year sent LendingTree's stock climbing, with shares up 3.5% as the company's guidance for the year exceeded analyst projections.
The surge reflects investor confidence following the announcement that full-year 2024 revenue is expected to be between $690 million and $720 million, compared to the consensus estimate of $667.5 million.
LendingTree's Chairman and CEO, Doug Lebda, attributed the strong first-quarter performance to a 49% YoY growth in adjusted EBITDA and significant gains in the Insurance segment.
He stated, "Our Insurance segment produced very strong performance in the first quarter, growing both revenue and segment profit by double-digits." Lebda also noted improvements in the Consumer segment, thanks to a stable lending environment.
Despite the overall revenue increase, the Home segment experienced a decline, with revenue falling 30% YoY to $30.4 million and segment profit down 36%. The Consumer segment also saw a decrease of 35% from the first quarter of 2023.
However, the Insurance segment's revenue growth of 11% YoY to $85.9 million, with a corresponding 11% rise in segment profit, helped offset these declines.
Looking ahead, LendingTree anticipates continued growth. Scott Peyree, President and COO, expressed excitement about the company's return to growth, driven by the Insurance segment's strength and improvements in the Consumer segment. CFO Trent Ziegler emphasized the company's strong liquidity position, which will support future profitable growth and investment in the business.
For the second quarter of 2024, LendingTree forecasts revenue to be in the range of $175 million to $190 million, with adjusted EBITDA between $22 million and $26 million. These projections suggest a promising trajectory for the upcoming quarter.
Investors have responded positively to LendingTree's financial outlook and first-quarter achievements, signaling a potential turnaround for the company after navigating through challenging market conditions.
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