LendingTree Q1 Results Leave Investors Optimistic

LendingTree, Inc. (NASDAQ: TREE) shares rose just over 12% this morning following their first quarter press release today. The online lending exchange’s consolidated revenue set a record at $132.5 million, an increase of 40% for 1Q. GAAP net income from Continuing Operations is reported at $7.8 million, or $0.58 per share. Adjusted net income per share rose 27%, over 1Q 2016, to $0.85 per share. Chief Financial Officer, Gabe Dalporto, reports their mortgage business increased 14% Year over Year (YOY) to $62.9 million. In contrast, the industry overall contracted roughly 6%. Remaining revenue of $69.6 million came from non-mortgage products. These products increased 75% compared to 1Q 2016.

Doug Ledba, Chairman and Chief Executive Officer, attributes the growth to the company’s focus. He says, “LendingTree's record first quarter results were, once again, a testament to our company's ability to achieve our short-term goals, focus on our longer-term strategic priorities, and continue to diversify our business. Our success in the first quarter provides a fantastic start to the year and gives us even more confidence in LendingTree's ability to grow despite changing and dynamic consumer credit markets.”

Optimistic about the next quarter, the company predicts growth no less than 40%. In fact, their positive predictions continue for the full-year 2017. LendingTree expects revenue to grow 39% – 42% to $535 – $545 million over full year 2016. They are aiming for adjusted marketing margin to increase from a low range of $175 million, to a low range of $180 million. Similar to revenue, EBITDA predictions are between 36% – 42%.

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