Strong sales growth in the middle …

Appearance date: May 1, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• All three LendingTree business areas (Nasdaq: Tree) achieved solid sales growth in the first quarter.

• The insurance segment increased sales by 71% compared to the previous year, although it presented himself with challenges.

• The products for small companies and personal loans in the consumer segment showed significant growth with the expectations of record income in 2025.

• The allocation of equity credit continues to do well, which is due to the increased demand from both consumers and lenders.

• The company has determined cost savings as part of a budgeting process with zero, with which unexpected expenses are compensated for.

• The adapted EBITDA was present in the insurance business and one -off expenses below the forecast due to temporary stock winds.

• The recovery in the insurance segment was slower than expected, which influenced performance.

• The prevailing high mortgage interests continue to suppress the demand for new home buyers and refinancing.

• There are concerns about the potential headwind towards the profitability of tariffs that could affect demand for customer acquisition.

• The student loan business has declined and LendingTree Inc (Nasdaq: Tree) does not actively market it due to a low demand.

Q: Can you take a closer look at what you hear from your carrier partners about potential headwinds for the profitability of tariffs and how this could affect the demand for customer acquisition? A: Scott Perry, COO and President of Marketplace company, explained that the airlines are concerns about tariffs, but are generally confident that their profitability due to past interest adjustments. However, they are careful, but believe that they can manage potential inflationary effects of tariffs without significantly influencing their marketing strategies.

Q: Could you give more details about revised instructions, especially about the top reduction and the stronger variable margins? A: Jason Bengel, CFO, explained that the instructions do not take into account the macroeconomic changes, but is monitored. The home segment is expected to continue strong growth, and the consumer segments should improve seasonally. The insurance is expected to do better in the second half of the year, whereby the expenses are expected to decrease slightly.

Q: With regard to the segment for small businesses, you can discuss seasonality and whether you expect the current sales to be maintained in the course of the year? A: Scott Perry found that the diversity of small businesses compensates for demand, even though there are some seasonality. The growth of the direct distribution employee and the lead flow The consumer was successful and expects further growth by adding more lenders to the network.