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LendingTree Q4 Earnings Surpass Estimates, Expenses Increase Y/Y

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LendingTree, Inc.’s (TREE - Free Report) fourth-quarter 2024 adjusted net income per share of $1.16 per share topped the Zacks Consensus Estimate of 37 cents. The figure compares favorably with the 28 cents reported in the prior-year quarter.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

The results were driven by a rise in revenues. However, an increase in total cost was a spoilsport.

The results exclude certain non-recurring items. After considering these, TREE reported a GAAP net income of $7.5 million compared with $12.7 million in the year-ago quarter.

For 2024, the company reported adjusted net income per share of $3.19, up from $2.28 reported in 2023. The metric topped the Zacks Consensus Estimate of $2.45 per share. In 2024, net loss was $41.7 million compared with $122.4 million in 2023.


TREE’s Revenues, Variable Marketing Margin Increase

The fourth quarter’s total revenues grew 95% year over year to $261.5 million. Also, the reported figure surpassed the Zacks Consensus Estimate by 10.9%.

For 2024, total revenues were $900.2 million, up 33.9% from 2023. The metric surpassed the Zacks Consensus Estimate by 2.9%. 

The total cost of revenues was $9.7 million in the fourth quarter, up 19.9% from the prior-year quarter.

Adjusted EBITDA totaled $32.2 million, up from $15.5 million in the year-ago quarter. The variable marketing margin was $86.7 million, up 43% year over year.

As of Dec. 31, 2024, cash and cash equivalents were $107 million compared with $96.8 million as of Sept. 30, 2024. Long-term debt was $344.2 million compared with $346.2 million as of Sept. 30, 2024.


Lending Tree’s Outlook

The company provided the first-quarter and full-year 2025 outlook.

1Q 2025

For the first quarter of 2025, total revenues are estimated to be between $241 million and $248 million. 

Adjusted EBITDA and the variable marketing margin are anticipated to be in the range of $25-$27 million and $75-$79 million, respectively.

2025

For 2025, total revenues are projected to be between $985 million and $1.02 billion, an increase of 9% to 14% compared to 2024. 

Adjusted EBITDA is projected to be $116-$126 million, an increase of 11% to 21% from 2024. The variable marketing margin is expected to be $319-$336 million, representing growth of 5% to 10% over last year. 


Our View on Lending Tree

TREE’s inorganic growth moves have strengthened its online lending platform. Its fourth-quarter results were boosted by strong growth in the Insurance segment revenues. The company’s efforts to increase revenues by diversifying its non-mortgage product offerings will support top-line growth in the future.

LendingTree, Inc. Price, Consensus and EPS Surprise

Currently, LendingTree carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Performance of Other Finance Stocks

WaFd, Inc. (WAFD - Free Report) adjusted earnings of 62 cents per share lagged the Zacks Consensus Estimate of 69 cents. Also, the bottom line declined 26.2% year over year. Quarterly net revenues were $171.1 million, rising 2.8% from the prior-year quarter. However, the top line lagged the Zacks Consensus Estimate of $193 million.

WAFD results were adversely impacted by a rise in non-interest expenses. However, higher net interest income and non-interest income (driven by the acquisition of Luther Burbank Corporation in February 2024) majorly supported WAFD’s performance. Higher loan balances and nil provisions were other positives. 

Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2024 earnings per share of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter. Quarterly total revenues amounted to $364.8 million, up 18.3% year over year. The top line beat the Zacks Consensus Estimate of $361.3 million.

HWC's results benefited from the increase in non-interest income and net interest income (NII). Lower expenses and provisions were other positives. However, the decline in total loans was a headwind.


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