Lendingtree Inc ((TREE)) has held its Q4 earnings call. Read on for the main highlights of the call.
LendingTree Inc. recently held its earnings call, which conveyed an overall positive sentiment. The company reported strong fourth-quarter results and expressed a robust outlook for 2025. Despite some anticipated moderation in the Insurance segment growth and challenges in the credit card business, the sentiment remained optimistic.
Strong Fourth Quarter Performance
LendingTree generated $32 million of adjusted EBITDA, significantly exceeding forecasts. This impressive performance was primarily driven by the exceptional results in the Insurance segment, highlighting the company’s ability to surpass expectations.
Robust Year-Over-Year Growth Across Key Segments
The company reported substantial year-over-year growth across several key segments. Homeowners insurance saw a remarkable increase of 175%, while home equity rose by 48%, small business by 45%, personal loans and auto loans by 21%, and mortgage by 12%. This growth underscores LendingTree’s strong market position.
Positive Growth Outlook for 2025
LendingTree is forecasting a 16% annual growth in adjusted EBITDA, driven by anticipated double-digit revenue growth across all reportable segments. This outlook reflects the company’s confidence in its strategic initiatives and market opportunities.
Improved Financial Position
The company has improved its financial position by reducing net leverage to 3.5 times trailing adjusted EBITDA. LendingTree expects further reductions and improved free cash flow, which will enhance its financial flexibility.
SEO Revenue Growth
LendingTree’s SEO revenue increased by 30% year-over-year in the fourth quarter, demonstrating the effectiveness of its digital marketing strategies and its ability to attract and retain customers.
Moderate Growth Expected in Insurance Segment
While the Insurance segment has been a strong performer, growth is expected to moderate due to tougher year-over-year comparisons and more diligent marketing spending by carriers.
Consumer Segment Challenges
The credit card business remains challenging, with tight credit boxes. However, other products within the consumer segment are showing growth, indicating potential for future improvement.
Forward-Looking Guidance
LendingTree concluded the year on a high note, with $32 million of adjusted EBITDA, surpassing forecasts. The company anticipates continued double-digit revenue growth across its products in the first quarter of 2025. For the full year, a 16% growth in adjusted EBITDA is projected, supported by stable interest rates and economic growth, which are expected to enhance shareholder value.
In summary, LendingTree’s earnings call highlighted a positive sentiment with strong fourth-quarter results and a promising outlook for 2025. Key takeaways include robust growth across segments, an improved financial position, and a strategic focus on maintaining positive operating leverage. Despite some challenges, particularly in the credit card business, the company remains optimistic about its future prospects.