Lendingtree Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ryan Tomasello - KBW - Analyst : Hi everyone, thanks for taking the questions. Doug wanted to start on that last, point you made. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 9:00PM, TREE.OQ - Q1 2025 Lendingtree Inc Earnings Call If you could just elaborate, generally what you're hearing from your carrier partners on potential headwinds to profitability from tariffs and obviously, that I think the concern here is how that might impact demand for customer acquisition. And just given all that uncertainty, how you're thinking about the guidance here, what you're baking in, especially for the back half of the year. Thanks.

Question: Ryan Tomasello - KBW - Analyst : Great. And then I guess maybe just digging deeper into that and maybe expanding broadly, what you're kind of baking into the revised guidance here, your haircutting the top line by about 3 points, it looks like. That's being offset by stronger variable margins. So just unpacking the moving pieces there, what you're baking it from a macro standpoint. Just across the different pieces of the guidance, thanks.

Question: Ryan Tomasello - KBW - Analyst : Okay, I appreciate all the color. Thanks guys.

Question: John Campbell - Stephens Inc. - Analyst : Hey guys, good afternoon.

Question: John Campbell - Stephens Inc. - Analyst : Hey, so I just want to touch, I guess starting here on SMB, if my math is right, I think you guys got to about $20 million or so in the quarter. You mentioned the shareholder letter you expect the, record SMB rep for the year. If I annualize that, I think it's going to be well above your record. So just remind us again, I guess on the seasonality of that business and maybe just more direct if you feel like you can hold near that quarterly level for the balance of the year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 9:00PM, TREE.OQ - Q1 2025 Lendingtree Inc Earnings Call

Question: John Campbell - Stephens Inc. - Analyst : Okay, that's helpful. And then on the mortgage marketplace, I mean, obviously that used to be like the core business for you guys, and you know it's been largely dormant. Obviously the macro has been incredibly tough and a couple of years ago I think you guys had $376 million in that business. Last year was $40 million, so it feels like that is a growth driver, one of these days. So I'm just curious about. You know what you guys are thinking about as far as like the, a level of mortgage rates where you feel like that could start to unlock, some values, maybe unlock a little bit of growth for you guys.

Question: John Campbell - Stephens Inc. - Analyst : Okay, thanks guys.

Question: Jed Kelly - Oppenheimer & Co. - Analyst : Hey, great, thanks for taking my questions. Just back on insurance, can you kind of give us a sense how we should think about the VMM margin as revenue starts to normalize in that segment and then just get on insurance, how should we view the home segment? I know auto is still the main portion, but you know it seems like homes attractive market as well thanks.

Question: Jed Kelly - Oppenheimer & Co. - Analyst : Thank you.

Question: Melissa Wedel - J.P. Morgan - Analyst : Good afternoon. Thanks for taking my questions. I wanted to start on the home segment, margin. It came in a little bit stronger than we were expecting, and I guess the question would be is there any reason to think that that would inflect lower or is this sort of the run rate, particularly with home equity demand right now?

Question: Melissa Wedel - J.P. Morgan - Analyst : Okay, appreciate that. We've touched on this a little bit about the volatility that we've seen post quarter end, but it's been more from the perspective of where you're hearing from network partners. I'm curious if you're seeing anything different in terms of changes in consumer behavior and search on your platform in the last month. Any conclusions you can draw from that? Thanks.

Question: Melissa Wedel - J.P. Morgan - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 9:00PM, TREE.OQ - Q1 2025 Lendingtree Inc Earnings Call

Question: Ryan Tomasello - KBW - Analyst : Hi everyone, thanks again. I guess just entertaining more of the downside risk on macro, you guys have done a good job historically of managing to the bottom line, by pulling some expense levers. I guess maybe you could just help us understand how much of those levers still remain to help, protect earnings power to the extent macro does move against us here. Thanks.

Question: Ryan Tomasello - KBW - Analyst : And then one more for me regarding the quote wizard litigation, how much can you say just how much you have fully reserved for that after the $15 million you took this past quarter. And how confident you are that you know you're fully covered for the potential outcomes there. Thanks.

Question: Ryan Tomasello - KBW - Analyst : Great, thanks for the details.

Question: John Campbell - Stephens Inc. - Analyst : Hey guys, thanks, just one more for me. I've noticed in the annual filing some commentary about the student loan business that you guys are potentially looking to. Options there, so maybe if we can get an update on that.

Question: John Campbell - Stephens Inc. - Analyst : Okay, so on hold for now, but, any rough sense for revenue impact year over year, what you guys put up last year.