LendingTree's Mixed Q1 Earnings: Sharply Slashes Full-Year Forecast, Stocks Dive Premarket Friday

LendingTree Inc. (NASDAQ:TREE) shares are diving premarket on Friday after the company reported first quarter adjusted EPS of 99 cents, which beat the analyst consensus estimate of 65 cents.

Revenue grew 43% Y/Y to $239.7 million, missing the analyst consensus estimate of $244.93 million.

For the quarter, LendingTree reported:

• Home segment revenue of $37 million increased 22% Y/Y and produced segment profit of $13.1 million, a 36% increase over the same period.
• Consumer segment revenue of $56.0 million increased 9% Y/Y in the quarter. Within Consumer, personal loans revenue of $23.4 million increased 16% Y/Y, while Small Business revenue increased 48% Y/Y in the period.
• Insurance segment revenue of $146.7 million increased 71% Y/Y and segment profit of $38.7 million, an increase of 16% over the same period.

Adjusted EBITDA increased 14% Y/Y to $24.6 million, with margin contracting to 10% from 13% a year ago.

Outlook: LendingTree sees second-quarter revenue of $241 million-$248 million (versus the $248.50 million analyst estimate) and adjusted EBITDA of $29 million-$31 million.

The company slashed the FY25 revenue outlook to $955 million-$995 million (from $985 million to $1.025 billion) versus the street view of $1.01 billion and revised adjusted EBITDA guidance to $116 million-$124 million from $116 million-$126 million prior.

TREE Price Action: LendingTree shares are down 27.37% at $39.36 premarket at publication Friday.

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