Exhibit 99.2
2024年10月31日
親愛的股東：
我們很高興地報告，我們的公司在第三季度跨所有板塊取得了我們財務前景的高端，營業收入爲2.61億美元，比去年同期增長了68％，AEBITDA爲2690萬美元，增長了23％。展望明年，我們對我們所有三個可以報告的板塊都將恢復年度增長持樂觀態度。我們相信這種改善的運營表現，加上嚴格控制費用和對資本結構的戰略管理，應該有助於爲我們的股東創造持續的價值。
我們的保險業務繼續以加快的步伐增長，營業收入同比增長210％，環比增長38％。 本季度，保險受益於網絡上消費者交通激增以及一些擁有健康承保利潤的運營商，尋求佔領市場份額。 搜索新保險政策的客戶需求仍然非常強勁，總保險量比去年同期增加了50％，環比增長了25％。
離散的經營措施和對我們的小企業和個人貸款業務的投資表現良好，推動消費業務營業收入環比增長6%。消費信貸市場的借貸條件在很大程度上仍然具有限制性。然而，我們對小企業貸款產品去年同比增長32%的營收增長以及個人貸款的環比改善感到鼓舞。展望未來，與我們的貸款合作伙伴進行的對話顯示，隨着聯邦儲備局在九月份減息，信貸條件可能會在明年放鬆，市場預期未來會進一步降低短期利率。
我們的家居部門也出現了增長跡象，主要受到我們的房屋產權產品推動，去年實現了5%的營業收入增長。有限的再融資借款人群和歷史低位的房屋銷售繼續對傳統抵押貸款產品的進展產生影響。和我們的消費部門類似，我們相信利率期貨的前景可能推動未來一年家居業務的改善結果。
我們目前已經深入進行了2025年規劃過程，並專注於保持支出紀律，同時有選擇地投資一系列我們認爲將推動增量VMD的倡議。隨着我們繼續減少負債表，我們有望優化資本結構，並隨着時間推移提高自由現金流轉化。
| Q3.2024 | 1 | |||||||||||||
| 綜合財務摘要 | |||||||||||||||||||||||||||||||||||||||||||||||
| （單位：百萬，每股金額） | 2024 | 2023 | 同比 | ||||||||||||||||||||||||||||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | 百分比變動 | ||||||||||||||||||||||||||||||||||||||||||
| 總收入 | $ | 260.8 | $ | 210.1 | $ | 167.8 | $ | 134.4 | $ | 155.2 | 68% | ||||||||||||||||||||||||||||||||||||
| （虧損）所得稅前收入 | $ | (57.5) | $ | 9.4 | $ | 1.6 | $ | 13.1 | $ | (152.0) | 62% | ||||||||||||||||||||||||||||||||||||
| 所得稅費用（收益） | $ | (0.5) | $ | (1.6) | $ | (0.6) | $ | (0.4) | $ | 3.5 | (114)% | ||||||||||||||||||||||||||||||||||||
| 淨（虧損）利潤 | $ | (58.0) | $ | 7.8 | $ | 1.0 | $ | 12.7 | $ | (148.5) | 61% | ||||||||||||||||||||||||||||||||||||
| 淨利潤（損失）佔營業收入的比例 | (22)% | 4% | 1% | 9% | (96)% | ||||||||||||||||||||||||||||||||||||||||||
| 每股盈利（虧損） | |||||||||||||||||||||||||||||||||||||||||||||||
| 基本 | $ | (4.34) | $ | 0.58 | $ | 0.08 | $ | 0.98 | $ | (11.43) | |||||||||||||||||||||||||||||||||||||
| 稀釋的 | $ | (4.34) | $ | 0.58 | $ | 0.08 | $ | 0.98 | $ | (11.43) | |||||||||||||||||||||||||||||||||||||
| 變量營銷利潤 | |||||||||||||||||||||||||||||||||||||||||||||||
| 總收入 | $ | 260.8 | $ | 210.1 | $ | 167.8 | $ | 134.4 | $ | 155.2 | 68% | ||||||||||||||||||||||||||||||||||||
變量營銷費用 (1) (2) | $ | (183.6) | $ | (139.2) | $ | (98.4) | $ | (73.8) | $ | (87.5) | 110% | ||||||||||||||||||||||||||||||||||||
變量營銷利潤率 (2) | $ | 77.2 | $ | 70.9 | $ | 69.4 | $ | 60.6 | $ | 67.7 | 14% | ||||||||||||||||||||||||||||||||||||
變量營銷利潤率佔營業收入的百分比 (2) | 30% | 34% | 41% | 45% | 44% | ||||||||||||||||||||||||||||||||||||||||||
調整後EBITDA(2) | $ | 26.9 | $ | 23.5 | $ | 21.6 | $ | 15.5 | $ | 21.8 | 23% | ||||||||||||||||||||||||||||||||||||
營業收入調整後EBITDA利潤率 (2) | 10% | 11% | 13% | 12% | 14% | ||||||||||||||||||||||||||||||||||||||||||
調整後淨利潤(2) | $ | 10.9 | $ | 7.2 | $ | 9.2 | $ | 3.6 | $ | 7.9 | 38% | ||||||||||||||||||||||||||||||||||||
每股調整後淨利潤 分享 (2) | $ | 0.80 | $ | 0.54 | $ | 0.70 | $ | 0.28 | $ | 0.61 | 31% | ||||||||||||||||||||||||||||||||||||
| (1) | 代表銷售和營銷費用中可變成本對廣告、直接營銷和相關費用的比例。不包括一般管理費用、固定成本和與人員相關的費用。 | ||||
| (2) | 可變營銷費用、可變營銷利潤、可變營銷利潤佔營業收入的比例、調整後的EBITDA、調整後的EBITDA佔營業收入的比例、調整後的淨利潤和每股調整後的淨利潤是非GAAP衡量指標。請參閱下方的"lendingtree的非GAAP措施與GAAP的調和"和"lendingtree的財務報告原則"獲取更多信息。 | ||||
| Q3.2024 | 2 | |||||||||||||
2024年第三季度合併業績
260.8百萬美元的綜合營業收入比去年同期增長了68%，主要由於保險營收增長了210%。
我們錄得GAAP淨虧損爲$(58.0)萬美元，每股稀釋後虧損$(4.34)。其中包括非現金投資減值58.4百萬美元。
變量營銷按金爲7720萬美元，較去年增長14%。保險業務增長強勁，但消費和家庭板塊下滑。
調整後的EBITDA爲26.9百萬美元。
經調整後的淨利潤爲1090萬美元，相當於每股0.80美元。
| Q3.2024 | 3 | |||||||||||||
細分市場結果
| （百萬） | 2024 | 2023 | 同比 | ||||||||||||||||||||||||||||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | 百分比變動 | ||||||||||||||||||||||||||||||||||||||||||
首頁 (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| 營業收入 | $ | 32.2 | $ | 32.2 | $ | 30.4 | $ | 25.1 | $ | 33.4 | (4)% | ||||||||||||||||||||||||||||||||||||
| 業務板塊利潤 | $ | 9.3 | $ | 9.3 | $ | 9.6 | $ | 8.1 | $ | 11.3 | (18)% | ||||||||||||||||||||||||||||||||||||
| 營業收入利潤率% | 29% | 29% | 32% | 32% | 34% | ||||||||||||||||||||||||||||||||||||||||||
消費大麻營業收入淨額 (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| 營業收入 | $ | 59.5 | $ | 55.9 | $ | 51.5 | $ | 49.5 | $ | 67.3 | (12)% | ||||||||||||||||||||||||||||||||||||
| 業務板塊利潤 | $ | 28.0 | $ | 26.9 | $ | 27.4 | $ | 28.9 | $ | 34.4 | (19)% | ||||||||||||||||||||||||||||||||||||
| 營業收入的各區段利潤率 | 47% | 48% | 53% | 58% | 51% | ||||||||||||||||||||||||||||||||||||||||||
保險 (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| 營業收入 | $ | 169.1 | $ | 122.1 | $ | 85.9 | $ | 59.6 | $ | 54.5 | 210% | ||||||||||||||||||||||||||||||||||||
| 業務板塊利潤 | $ | 41.4 | $ | 36.4 | $ | 33.4 | $ | 25.2 | $ | 23.4 | 77% | ||||||||||||||||||||||||||||||||||||
| 營業收入的各區段利潤率 | 24% | 30% | 39% | 42% | 43% | ||||||||||||||||||||||||||||||||||||||||||
其他類別 (4) | |||||||||||||||||||||||||||||||||||||||||||||||
| 營業收入 | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | —% | ||||||||||||||||||||||||||||||||||||
| （損失）利潤 | $ | — | $ | (0.1) | $ | — | $ | (0.1) | $ | — | —% | ||||||||||||||||||||||||||||||||||||
| 總費用 | |||||||||||||||||||||||||||||||||||||||||||||||
| 營業收入 | $ | 260.8 | $ | 210.1 | $ | 167.8 | $ | 134.4 | $ | 155.2 | 68% | ||||||||||||||||||||||||||||||||||||
| 業務板塊利潤 | $ | 78.6 | $ | 72.5 | $ | 70.5 | $ | 62.2 | $ | 69.1 | 14% | ||||||||||||||||||||||||||||||||||||
| 營業收入利潤率 | 30% | 35% | 42% | 46% | 45% | ||||||||||||||||||||||||||||||||||||||||||
品牌營銷費用 (5) | $ | (1.4) | $ | (1.6) | $ | (1.1) | $ | (1.6) | $ | (1.4) | —% | ||||||||||||||||||||||||||||||||||||
| 變量營銷利潤 | $ | 77.2 | $ | 70.9 | $ | 69.4 | $ | 60.6 | $ | 67.7 | 14% | ||||||||||||||||||||||||||||||||||||
| 變量營銷利潤率%的營業收入 | 30% | 34% | 41% | 45% | 44% | ||||||||||||||||||||||||||||||||||||||||||
| (1) | 家庭業務包括以下產品：購房按揭、再融資按揭和住房抵押貸款。 | ||||
| (2) | 消費業務包括以下產品：信用卡、個人貸款、小額企業貸款、學生貸款、汽車貸款、存入資金帳戶和債務結算。 | ||||
| (3) | 保險部門包括保險報價產品和保險政策銷售。 | ||||
| (4) | 其他類別主要包括未分配給特定業務的營銷收入和相關費用。 | ||||
| (5) | 品牌營銷費用代表歸因於變量成本的銷售和營銷費用部分，用於支付廣告、直接營銷和與分配給各業務產品相關的費用。此指標不包括一般開支、固定成本和人員相關費用。 | ||||
| Q3.2024 | 4 | |||||||||||||
家居
家庭部門的營業收入爲3220萬美元，利潤爲930萬美元，同比分別下降4%和18%。家庭資產仍然是消費者和我們的貸方夥伴關注的焦點，營業收入爲2100萬美元，同比增長5%。然而，對主要抵押貸款的需求仍然保持低迷，因爲目前較高水平的抵押貸款利率和歷史低位的現有住宅銷售量限制了尋求購買貸款的客戶數量。
消費
我們的消費業務營業收入爲5950萬美元，同比下降12%，而利潤爲2800萬美元，下降19%。部門利潤率爲47%，而一年前爲51%。小型企業和個人貸款的營收增長被去年信用卡產品的下降所抵消。
小型企業的營業收入比一年前增長了32％，由於我們的合作夥伴和在企業上的戰略投資使得貸款需求保持穩定，業務展現了良好的營收增長和改善的單位經濟，使我們能夠增加投資於行銷以吸引更多高質量的企業主尋找貸款。與全數位交易所體驗相比，我們的主管銷售團隊一直保持著更高的貸款成交率、更好的單位經濟以及來自貸方獎金計劃和續貸費的額外營收機會。根據積極的成果，我們已在整個年份積極發展這支團隊，並將繼續投資以抓住我們的貸方日益增加的需求。我們還擴展了我們的產品系列，包括企業信用卡和保險產品，以更好地滿足我們的客戶需求並增加交叉銷售機會。
個人貸款的營業收入爲2780萬美元，同比增長5%。我們繼續依靠營銷活動來吸引更多的消費者，因爲我們的貸款合作伙伴的信貸需求保持穩定。最近，我們已經與計劃擴大信貸標準以爲我們的客戶提供更多貸款選擇的貸款人進行了積極的談話，這反過來將爲我們帶來更多的轉化機會。如果聯邦儲備繼續執行當前計劃中降低短期利率的行動，我們相信這將在未來幾個季度大幅有利於我們的個人貸款產品。
保險
年收入達16910萬元，增長210%，各部門利潤達4140萬元，同比增長77%，但本季節段利潤率下降到24%，由於來自部分航空公司的需求激增，媒體成本增加，導致我們的營銷活動更多地投入了成本最高的渠道，以保持成交量的質量。
我們之前提到過該部門產生的高於平均水平的利潤率，因爲過去兩年運營商的需求低迷。當運營商的預算縮減時，我們能夠退出成本最高的渠道，以滿足減少的需求。現在，與去年相比，運營商的支出大幅增加，我們重新進入這些渠道以應對急劇增加的需求，從而推動部門利潤金額的顯著改善，儘管整體部門利潤率較低。
| Q3.2024 | 5 | |||||||||||||
我們預計保險在2025年將產生增量營業收入和細分利潤增長。我們已經看到一些保險公司在今年推動了我們網絡的大部分支出，而一些大型人口州由於對費率充足性的擔憂，仍然看到保險公司的需求有限。我們相信這爲明年的增長創造了有利的背景，因爲更多的保險公司在我們的網絡上支出，並針對那些需求較低的地區的消費者，提供了額外的上行機會。我們將繼續運行這項業務，重點關注利潤增長，努力更好地服務於全國範圍內不斷尋找新保險產品的高消費群體以及我們的合作伙伴。
資產負債表和流動性
我們的現金餘額在本季度末爲9700万美元，較第二季度的6700万美元有所增加。我們2025年7月到期的可轉換債券本金餘額爲11500万美元。我們相信，賬面上的現金超額、來自Apollo貸方的未提取5000万美元承諾以及未來的自由現金流的組合將使我們能夠輕鬆應對這一到期。
隨着我們通過償還債務和利用自由現金流增加現金餘額而繼續減少槓桿，我們將專注於提高資本結構的效率。我們努力以正常的業務週期運行公司，淨槓桿率低於4倍，並相信接近3倍是一個穩健的長期目標。隨着去槓桿過程的推進，我們應該能夠減少公司對剩餘債務的利息負擔，從而改善我們從AEBITDA到自由現金流的轉換，以推動股東價值。
財務展望*
今天我們更新了2024財年的展望，這意味着以下第四季度的展望：
2024財年：
▪營業收入爲$870 - $88000万，相比之前的區間$830 - $87000万
▪變量營銷利潤爲$287 - $29200万，與之前的$280 - $30000万相比
▪調整後EBITDA爲$92 - $9500万，之前爲$85 - $9500萬
2024年第四季度：
▪營業收入： $231 - $24100万
▪變量市場利潤：$69 - $7400万
▪調整後的EBITDA：$20 - $2300万
*LendingTree無法提供預計可變營銷利潤或調整後的EBITDA與最直接可比較的預期GAAP結果的調節，由於法律事宜和稅務考慮的未知影響、時機及其潛在重大性。與法律事宜和稅務考慮相關的費用在過去曾對特定期間的GAAP結果產生重大影響，並且將來可能會繼續這樣。
| Q3.2024 | 6 | |||||||||||||
結論
我們對第三季度強勁的調整後息稅折舊攤銷前利潤（AEBITDA）增長感到非常興奮。正如我們更新的財務展望所示，我們預計這些年度同比增加將延續到第四季度。我們的保險業務正在創造創紀錄的營業收入和VMD，並應保持到2025年的勢頭。我們樂觀地預期，聯儲局預計的利率期貨放鬆以及穩定的經濟將使我們的消費和家居板塊在明年受益。所有板塊的增長前景，加上持續的費用控制和針對性的投資舉措，爲我們財務業績的持續改善奠定了基礎。
感謝您持續的壓力位。
誠摯的，
道格·雷巴 傑森·本戈
董事長兼首席執行官 首席財務官
投資者關係： investors@lendingtree.com | 媒體關係： press@lendingtree.com | ||||
| Q3.2024 | 7 | |||||||||||||
LENDINGTREE, INC.及其子公司
綜合運營和綜合收益報表
（未經審計）
| 三個月結束 9月30日 | 截至九個月 9月30日 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (以千爲單位，除每股金額外) | |||||||||||||||||||||||
| 營業收入 | $ | 260,789 | $ | 155,188 | $ | 638,697 | $ | 538,149 | |||||||||||||||
| 成本與費用： | |||||||||||||||||||||||
營業收入成本 (不包括下方單獨列示的折舊和攤銷) (1) | 9,372 | 7,570 | 26,328 | 30,632 | |||||||||||||||||||
銷售和市場營銷費用 (1) | 193,542 | 97,244 | 450,105 | 350,420 | |||||||||||||||||||
一般及行政費用 (1) | 26,680 | 26,380 | 79,594 | 92,223 | |||||||||||||||||||
產品開發 (1) | 11,190 | 10,840 | 33,421 | 36,096 | |||||||||||||||||||
| 折舊 | 4,584 | 4,760 | 13,852 | 14,239 | |||||||||||||||||||
| 無形資產攤銷 | 1,466 | 1,981 | 4,422 | 6,012 | |||||||||||||||||||
| 商譽減值 | — | 38,600 | — | 38,600 | |||||||||||||||||||
重組和裁員 (1) | 273 | 1,955 | 498 | 9,967 | |||||||||||||||||||
| 訴訟和意外賠償 | 3,762 | (150) | 3,791 | 350 | |||||||||||||||||||
| 總成本和費用 | 250,869 | 189,180 | 612,011 | 578,539 | |||||||||||||||||||
| 營業收入（損失） | 9,920 | (33,992) | 26,686 | (40,390) | |||||||||||||||||||
| 其他收益（支出），淨額： | |||||||||||||||||||||||
| 利息（費用）收入，淨 | (10,060) | (7,097) | (17,899) | 10,992 | |||||||||||||||||||
| 其他費用 | (57,391) | (110,910) | (55,305) | (108,637) | |||||||||||||||||||
| 稅前損失 | (57,531) | (151,999) | (46,518) | (138,035) | |||||||||||||||||||
| 所得稅（費用）收益 | (447) | 3,534 | (2,692) | 2,912 | |||||||||||||||||||
| 淨虧損及綜合虧損 | $ | (57,978) | $ | (148,465) | $ | (49,210) | $ | (135,123) | |||||||||||||||
| 加權平均流通股數： | |||||||||||||||||||||||
| 基本 | 13,349 | 12,993 | 13,236 | 12,919 | |||||||||||||||||||
| 稀釋 | 13,349 | 12,993 | 13,236 | 12,919 | |||||||||||||||||||
| 每股份淨虧損： | |||||||||||||||||||||||
| 基本 | $ | (4.34) | $ | (11.43) | $ | (3.72) | $ | (10.46) | |||||||||||||||
| 稀釋 | $ | (4.34) | $ | (11.43) | $ | (3.72) | $ | (10.46) | |||||||||||||||
(1) 金額包括非現金補償，如下所示： | |||||||||||||||||||||||
| 成本收入 | $ | 62 | $ | 66 | $ | 231 | $ | 311 | |||||||||||||||
| 銷售和市場營銷費用 | 713 | 1,127 | 2,566 | 4,207 | |||||||||||||||||||
| 一般及行政費用 | 5,029 | 5,828 | 15,802 | 19,721 | |||||||||||||||||||
| 產品開發 | 1,055 | 1,571 | 3,486 | 4,760 | |||||||||||||||||||
| 重組和裁員 | — | 1,262 | — | 2,328 | |||||||||||||||||||
| Q3.2024 | 8 | |||||||||||||
LENDINGTREE, INC.及其子公司
合併資產負債表
(Unaudited)
| September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands, except par value and share amounts) | |||||||||||
| ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 96,788 | $ | 112,051 | |||||||
| Restricted cash and cash equivalents | — | 5 | |||||||||
| Accounts receivable, net | 125,257 | 54,954 | |||||||||
| Prepaid and other current assets | 29,662 | 29,472 | |||||||||
| Total current assets | 251,707 | 196,482 | |||||||||
| Property and equipment, net | 44,713 | 50,481 | |||||||||
| Operating lease right-of-use assets | 53,706 | 57,222 | |||||||||
| Goodwill | 381,539 | 381,539 | |||||||||
| Intangible assets, net | 46,198 | 50,620 | |||||||||
| Equity investments | 1,700 | 60,076 | |||||||||
| Other non-current assets | 7,601 | 6,339 | |||||||||
| Total assets | $ | 787,164 | $ | 802,759 | |||||||
| LIABILITIES: | |||||||||||
| Current portion of long-term debt | $ | 126,266 | $ | 3,125 | |||||||
| Accounts payable, trade | 48,794 | 1,960 | |||||||||
| Accrued expenses and other current liabilities | 97,128 | 70,544 | |||||||||
| Total current liabilities | 272,188 | 75,629 | |||||||||
| Long-term debt | 346,203 | 525,617 | |||||||||
| Operating lease liabilities | 70,723 | 75,023 | |||||||||
| Deferred income tax liabilities | 3,664 | 2,091 | |||||||||
| Other non-current liabilities | 130 | 267 | |||||||||
| Total liabilities | 692,908 | 678,627 | |||||||||
Commitments and contingencies | |||||||||||
| 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; 16,715,821 and 16,396,911 shares issued, respectively, and 13,360,355 and 13,041,445 shares outstanding, respectively | 167 | 164 | |||||||||
| Additional paid-in capital | 1,247,180 | 1,227,849 | |||||||||
| Accumulated deficit | (886,913) | (837,703) | |||||||||
| Treasury stock; 3,355,466 and 3,355,466 shares, respectively | (266,178) | (266,178) | |||||||||
| Total shareholders' equity | 94,256 | 124,132 | |||||||||
| Total liabilities and shareholders' equity | $ | 787,164 | $ | 802,759 | |||||||
| Q3.2024 | 9 | |||||||||||||
LENDINGTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| (in thousands) | |||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss and comprehensive loss | $ | (49,210) | $ | (135,123) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Loss on impairments and disposal of assets | 787 | 5,255 | |||||||||
| Amortization of intangibles | 4,422 | 6,012 | |||||||||
| Depreciation | 13,852 | 14,239 | |||||||||
| Non-cash compensation expense | 22,085 | 31,327 | |||||||||
| Deferred income taxes | 1,573 | (4,289) | |||||||||
| Bad debt expense | 422 | 1,803 | |||||||||
| Amortization of debt issuance costs | 1,691 | 3,473 | |||||||||
| Write-off of previously-capitalized debt issuance costs | — | 2,373 | |||||||||
| Amortization of debt discount | 224 | — | |||||||||
| Reduction in carrying amount of ROU asset, offset by change in operating lease liabilities | (2,624) | (3,118) | |||||||||
| Gain on settlement of convertible debt | (9,035) | (34,308) | |||||||||
| Loss on impairment of investments | 58,376 | 114,504 | |||||||||
| Loss on impairment of goodwill | — | 38,600 | |||||||||
| Changes in current assets and liabilities: | |||||||||||
| Accounts receivable | (70,726) | 18,276 | |||||||||
| Prepaid and other current assets | 138 | (525) | |||||||||
| Accounts payable, accrued expenses and other current liabilities | 74,445 | (11,878) | |||||||||
| Income taxes | (137) | 1,115 | |||||||||
| Other, net | (261) | (1,044) | |||||||||
| Net cash provided by operating activities | 46,022 | 46,692 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (8,398) | (9,928) | |||||||||
| Other | 2 | — | |||||||||
| Net cash used in investing activities | (8,396) | (9,928) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repayment of term loan | (8,750) | (1,250) | |||||||||
| Payments related to net-share settlement of stock-based compensation, net of proceeds from exercise of stock options | (2,751) | (1,527) | |||||||||
| Repurchase of 0.50% Convertible Senior Notes | (158,839) | (156,294) | |||||||||
| Net proceeds from term loan | 125,000 | — | |||||||||
| Payment of debt costs | (4,152) | (1,079) | |||||||||
| Payment of original issue discount | (3,125) | — | |||||||||
| Other financing activities | (277) | — | |||||||||
| Net cash used in financing activities | (52,894) | (160,150) | |||||||||
| Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (15,268) | (123,386) | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 112,056 | 298,969 | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 96,788 | $ | 175,583 | |||||||
| Q3.2024 | 10 | |||||||||||||
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Variable Marketing Expense
Below is a reconciliation of selling and marketing expense, the most directly comparable GAAP measure, to variable marketing expense. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of this non-GAAP measure.
| Three Months Ended | |||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||
| (in thousands) | |||||||||||||||||
| Selling and marketing expense | $ | 193,542 | $ | 148,387 | $ | 108,176 | $ | 83,168 | $ | 97,244 | |||||||
Non-variable selling and marketing expense (1) | (9,976) | (9,140) | (9,855) | (9,407) | (9,805) | ||||||||||||
| Variable marketing expense | $ | 183,566 | $ | 139,247 | $ | 98,321 | $ | 73,761 | $ | 87,439 | |||||||
| (1) | Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses. | ||||
| Q3.2024 | 11 | |||||||||||||
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Variable Marketing Margin
Below is a reconciliation of net (loss) income, the most directly comparable GAAP measure, to variable marketing margin and net (loss) income % of revenue to variable marketing margin % of revenue. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.
| Three Months Ended | |||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||
| (in thousands, except percentages) | |||||||||||||||||
| Net (loss) income | $ | (57,978) | $ | 7,752 | $ | 1,016 | $ | 12,719 | $ | (148,465) | |||||||
| Net (loss) income % of revenue | (22)% | 4% | 1% | 9% | (96)% | ||||||||||||
| Adjustments to reconcile to variable marketing margin: | |||||||||||||||||
| Cost of revenue | 9,372 | 8,411 | 8,545 | 8,126 | 7,570 | ||||||||||||
Non-variable selling and marketing expense (1) | 9,976 | 9,140 | 9,855 | 9,407 | 9,805 | ||||||||||||
| General and administrative expense | 26,680 | 27,118 | 25,796 | 25,477 | 26,380 | ||||||||||||
| Product development | 11,190 | 10,374 | 11,857 | 11,101 | 10,840 | ||||||||||||
| Depreciation | 4,584 | 4,601 | 4,667 | 4,831 | 4,760 | ||||||||||||
| Amortization of intangibles | 1,466 | 1,467 | 1,489 | 1,682 | 1,981 | ||||||||||||
| Goodwill impairment | — | — | — | — | 38,600 | ||||||||||||
| Restructuring and severance | 273 | 202 | 23 | 151 | 1,955 | ||||||||||||
| Litigation settlements and contingencies | 3,762 | (7) | 36 | 38 | (150) | ||||||||||||
| Interest expense (income), net | 10,060 | 1,201 | 6,638 | (10,693) | 7,097 | ||||||||||||
| Other expense (income) | 57,391 | (1,052) | (1,034) | (2,644) | 110,910 | ||||||||||||
| Income tax expense (benefit) | 447 | 1,686 | 559 | 397 | (3,534) | ||||||||||||
| Variable marketing margin | $ | 77,223 | $ | 70,893 | $ | 69,447 | $ | 60,592 | $ | 67,749 | |||||||
| Variable marketing margin % of revenue | 30% | 34% | 41% | 45% | 44% | ||||||||||||
| (1) | Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses. | ||||
| Q3.2024 | 12 | |||||||||||||
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Adjusted EBITDA
Below is a reconciliation of net (loss) income, the most directly comparable GAAP measure, to adjusted EBITDA and net (loss) income % of revenue to adjusted EBITDA % of revenue. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.
| Three Months Ended | |||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||
| (in thousands, except percentages) | |||||||||||||||||
| Net (loss) income | $ | (57,978) | $ | 7,752 | $ | 1,016 | $ | 12,719 | $ | (148,465) | |||||||
| Net (loss) income % of revenue | (22)% | 4% | 1% | 9% | (96)% | ||||||||||||
| Adjustments to reconcile to adjusted EBITDA: | |||||||||||||||||
| Amortization of intangibles | 1,466 | 1,467 | 1,489 | 1,682 | 1,981 | ||||||||||||
| Depreciation | 4,584 | 4,601 | 4,667 | 4,831 | 4,760 | ||||||||||||
| Restructuring and severance | 273 | 202 | 23 | 151 | 1,955 | ||||||||||||
| Loss on impairments and disposal of assets | 6 | 413 | 368 | 182 | 88 | ||||||||||||
| Loss on impairment of equity investments | 58,376 | — | — | — | 113,064 | ||||||||||||
| Goodwill impairment | — | — | — | — | 38,600 | ||||||||||||
| Non-cash compensation | 6,859 | 7,437 | 7,789 | 8,177 | 8,592 | ||||||||||||
| Litigation settlements and contingencies | 3,762 | (7) | 36 | 38 | (150) | ||||||||||||
| Interest expense (income), net | 10,060 | 1,201 | 6,638 | (10,693) | 7,097 | ||||||||||||
| Dividend income | (982) | (1,225) | (1,034) | (2,021) | (2,154) | ||||||||||||
| Income tax expense (benefit) | 447 | 1,686 | 559 | 397 | (3,534) | ||||||||||||
| Adjusted EBITDA | $ | 26,873 | $ | 23,527 | $ | 21,551 | $ | 15,463 | $ | 21,834 | |||||||
| Adjusted EBITDA % of revenue | 10% | 11% | 13% | 12% | 14% | ||||||||||||
| Q3.2024 | 13 | |||||||||||||
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Adjusted Net Income
Below is a reconciliation of net (loss) income, the most directly comparable GAAP measure, to adjusted net income and net income (loss) per diluted share to adjusted net income per share. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.
| Three Months Ended | |||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| Net (loss) income | $ | (57,978) | $ | 7,752 | $ | 1,016 | $ | 12,719 | $ | (148,465) | |||||||
| Adjustments to reconcile to adjusted net income: | |||||||||||||||||
| Restructuring and severance | 273 | 202 | 23 | 151 | 1,955 | ||||||||||||
| Goodwill impairment | — | — | — | — | 38,600 | ||||||||||||
| Loss on impairments and disposal of assets | 6 | 413 | 368 | 182 | 88 | ||||||||||||
| Loss on impairment of equity investments | 58,376 | — | — | — | 113,064 | ||||||||||||
| Non-cash compensation | 6,859 | 7,437 | 7,789 | 8,177 | 8,592 | ||||||||||||
| Litigation settlements and contingencies | 3,762 | (7) | 36 | 38 | (150) | ||||||||||||
| Gain on extinguishment of debt | (416) | (8,619) | — | (17,665) | — | ||||||||||||
| Income tax benefit from adjusted items | — | — | — | — | (5,764) | ||||||||||||
| Adjusted net income | $ | 10,882 | $ | 7,178 | $ | 9,232 | $ | 3,602 | $ | 7,920 | |||||||
| Net (loss) income per diluted share | $ | (4.34) | $ | 0.58 | $ | 0.08 | $ | 0.98 | $ | (11.43) | |||||||
| Adjustments to reconcile net (loss) income to adjusted net income | 5.16 | (0.04) | 0.62 | (0.70) | 12.04 | ||||||||||||
| Adjustments to reconcile effect of dilutive securities | (0.02) | — | — | — | — | ||||||||||||
| Adjusted net income per share | $ | 0.80 | $ | 0.54 | $ | 0.70 | $ | 0.28 | $ | 0.61 | |||||||
| Adjusted weighted average diluted shares outstanding | 13,555 | 13,407 | 13,276 | 13,020 | 12,999 | ||||||||||||
| Effect of dilutive securities | 206 | — | — | — | 6 | ||||||||||||
| Weighted average diluted shares outstanding | 13,349 | 13,407 | 13,276 | 13,020 | 12,993 | ||||||||||||
| Effect of dilutive securities | — | 150 | 176 | 12 | — | ||||||||||||
| Weighted average basic shares outstanding | 13,349 | 13,257 | 13,100 | 13,008 | 12,993 | ||||||||||||
| Q3.2024 | 14 | |||||||||||||
LENDINGTREE’S PRINCIPLES OF FINANCIAL REPORTING
LendingTree reports the following non-GAAP measures as supplemental to GAAP:
•Variable marketing expense
•Variable marketing margin
•Variable marketing margin % of revenue
•Earnings Before Interest, Taxes, Depreciation and Amortization, as adjusted for certain items discussed below ("Adjusted EBITDA")
•Adjusted EBITDA % of revenue
•Adjusted net income
•Adjusted net income per share
Variable marketing expense, variable marketing margin and variable marketing margin % of revenue are related measures of the effectiveness of the Company's marketing efforts. Variable marketing margin is a measure of the efficiency of the Company’s operating model, measuring revenue after subtracting variable marketing expense. Variable marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing, and related expenses, and excludes overhead, fixed costs, and personnel related expenses. The Company’s operating model is highly sensitive to the amount and efficiency of variable marketing expenditures, and the Company’s proprietary systems are able to make rapidly changing decisions concerning the deployment of variable marketing expenditures (primarily but not exclusively online and mobile advertising placement) based on proprietary and sophisticated analytics.
Adjusted EBITDA and adjusted EBITDA % of revenue are primary metrics by which LendingTree evaluates the operating performance of its businesses, on which its marketing expenditures and internal budgets are based and, in the case of adjusted EBITDA, by which management and many employees are compensated in most years.
Adjusted net income and adjusted net income per share supplement GAAP net income and GAAP net income per diluted share by enabling investors to make period to period comparisons of those components of the most directly comparable GAAP measures that management believes better reflect the underlying financial performance of the Company’s business operations during particular financial reporting periods. Adjusted net income and adjusted net income per share exclude certain amounts, such as non-cash compensation, non-cash asset impairment charges, gain/loss on disposal of assets, gain/loss on investments, restructuring and severance, litigation settlements and contingencies, acquisition and disposition income or expenses including with respect to changes in fair value of contingent consideration, gain/loss on extinguishment of debt, contributions to the LendingTree Foundation, one-time items which are recognized and recorded under GAAP in particular periods but which might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded, the effects to income taxes of the aforementioned adjustments, any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and income tax (benefit) expense from a full valuation allowance. LendingTree believes that adjusted net income and adjusted net income per share are useful financial indicators that provide a different view of the financial performance of the Company than adjusted EBITDA (the primary metric by which LendingTree evaluates the operating performance of its businesses) and the GAAP measures of net income and GAAP net income per diluted share.
| Q3.2024 | 15 | |||||||||||||
These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. LendingTree provides and encourages investors to examine the reconciling adjustments between the GAAP and non-GAAP measures set forth above.
Definition of LendingTree's Non-GAAP Measures
Variable marketing margin is defined as revenue less variable marketing expense. Variable marketing expense is defined as the expense attributable to variable costs paid for advertising, direct marketing and related expenses, and excluding overhead, fixed costs and personnel-related expenses. The majority of these variable advertising costs are expressly intended to drive traffic to our websites and these variable advertising costs are included in selling and marketing expense on the Company's consolidated statements of operations and consolidated income.
EBITDA is defined as net income from continuing operations excluding interest, income taxes, amortization of intangibles and depreciation.
Adjusted EBITDA is defined as EBITDA excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) contributions to the LendingTree Foundation (9) dividend income, and (10) one-time items.
Adjusted net income is defined as net income (loss) excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) gain/loss on extinguishment of debt, (9) contributions to the LendingTree Foundation, (10) one-time items, (11) the effects to income taxes of the aforementioned adjustments, (12) any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and (13) income tax (benefit) expense from a full valuation allowance.
Adjusted net income per share is defined as adjusted net income divided by the adjusted weighted average diluted shares outstanding. For periods which the Company reports GAAP loss from continuing operations, the effects of potentially dilutive securities are excluded from the calculation of net loss per diluted share from continuing operations because their inclusion would have been anti-dilutive. In periods where the Company reports GAAP loss from continuing operations but reports positive non-GAAP adjusted net income, the effects of potentially dilutive securities are included in the denominator for calculating adjusted net income per share if their inclusion would be dilutive.
LendingTree endeavors to compensate for the limitations of these non-GAAP measures by also providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.
One-Time Items
Adjusted EBITDA and adjusted net income are adjusted for one-time items, if applicable. Items are considered one-time in nature if they are non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. For the periods presented in this report, there are no adjustments for one-time items.
| Q3.2024 | 16 | |||||||||||||
Non-Cash Expenses That Are Excluded From LendingTree's Adjusted EBITDA and Adjusted Net Income
Non-cash compensation expense consists principally of expense associated with the grants of restricted stock, restricted stock units and stock options. These expenses are not paid in cash and LendingTree includes the related shares in its calculations of fully diluted shares outstanding. Upon settlement of restricted stock units, exercise of certain stock options or vesting of restricted stock awards, the awards may be settled on a net basis, with LendingTree remitting the required tax withholding amounts from its current funds. Cash expenditures for employer payroll taxes on non-cash compensation are included within adjusted EBITDA and adjusted net income.
Amortization of intangibles are non-cash expenses relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as purchase agreements, technology and customer relationships, are valued and amortized over their estimated lives. Amortization of intangibles are only excluded from adjusted EBITDA.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The matters contained in the discussion above may be considered to be “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations or anticipations of LendingTree and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: adverse conditions in the primary and secondary mortgage markets and in the economy, particularly interest rates and inflation; default rates on loans, particularly unsecured loans; demand by investors for unsecured personal loans; the effect of such demand on interest rates for personal loans and consumer demand for personal loans; seasonality of results; potential liabilities to secondary market purchasers; changes in the Company's relationships with network partners, including dependence on certain key network partners; breaches of network security or the misappropriation or misuse of personal consumer information; failure to provide competitive service; failure to maintain brand recognition; ability to attract and retain consumers in a cost-effective manner; the effects of potential acquisitions of other businesses, including the ability to integrate them successfully with LendingTree’s existing operations; accounting rules related to excess tax benefits or expenses on stock-based compensation that could materially affect earnings in future periods; ability to develop new products and services and enhance existing ones; competition; effects of changing laws, rules or regulations on our business model; allegations of failure to comply with existing or changing laws, rules or regulations, or to obtain and maintain required licenses; failure of network partners or other affiliated parties to comply with regulatory requirements; failure to maintain the integrity of systems and infrastructure; liabilities as a result of privacy regulations; failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; and changes in management. These and additional factors to be considered are set forth under “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2023, in our Quarterly Report on Form 10-Q for the period ended June 30, 2024, and in our other filings with the Securities and Exchange Commission. LendingTree undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
| Q3.2024 | 17 | |||||||||||||