LendingTree (TREE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $210.1 million, up 15% year-over-year and 25% sequentially, driven by a 109% increase in Insurance segment revenue, while Home and Consumer segments declined.

• Net income was $7.8 million ($0.58 per diluted share), up from a net loss of $0.1 million in Q2 2023.

• Insurance segment is now the second-largest aggregator in the U.S., with strong carrier partnerships and continued market share gains.

• The company added 0.7 million net new users to its Spring platform, reaching 29.5 million active users.

• Strategic focus on maximizing variable margin dollars and capturing high-intent consumer traffic.

Financial highlights

• Insurance segment revenue surged 109% year-over-year to $122.1 million, with segment profit up 47%, while Home and Consumer revenues declined 23% and 32%, respectively.

• Variable marketing margin was $70.9 million (34% of revenue), down from $76.5 million (42%) in Q2 2023.

• Adjusted EBITDA was $23.5 million, down 12% year-over-year but up 9% sequentially.

• Cash and cash equivalents were $66.8 million as of June 30, 2024, down from $112.1 million at year-end 2023.

• Selling and marketing expense increased 28% year-over-year to $148.4 million in Q2 2024.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $830–$870 million, with Q3 revenue projected at $230–$260 million.

• Management expects continued sequential revenue growth in the Insurance segment for the remainder of 2024.

• Guidance assumes steady state for Home and Consumer segments, with normal seasonal decline in Q4.

• No benefit from potential Fed rate cuts assumed in current guidance, though management sees imminent potential for positive impact.

• Margin compression expected in insurance due to extreme growth, but focus remains on maximizing variable margin dollars.