LendingTree, Inc. Q2 FY2025 earnings call

• Q2 delivered strong results with double-digit growth across all 3 business segments. Revenue was $250 million, up 19% y-o-y; adjusted EBITDA was $31.8 million, up 35% y-o-y. - Operationally excellent across the board with initiatives to improve product building, decision-making, and cost controls. - AI integration: All employees using AI, investment in data and Snowflake, focus on paid search, organic search, and LLM answers; AI expected to improve close rates and revenue/profits. - Insurance segment had technical issues resolved, carriers are happy and conversations are about driving more traffic.

Consumer: Delivered 12% revenue growth with segment profit increasing 19%. Small business loan revenue grew 61% and personal loan revenue grew 14%. Home: Revenue climbed 25%, driven by a 38% increase in home equity revenue. Insurance: 21% year-over-year revenue growth, with Q3 expected to be a record revenue quarter for the insurance division.

• Home: Assumes continued strength in home equity, with a seasonal decline expected in Q4. - Consumer: Assumes current performance forward with normal seasonal decrease; encouraging signs from lenders expanding credit boxes. - Insurance: Expect significant step up in Q3, with run rating higher in July, though margin may be slightly less due to competitive environment but strength continues.

• Forward-looking statements subject to risks and uncertainties; actual results could differ materially. - Previously had technical issues affecting insurance traffic and monetization, but mostly resolved.

Q: Update on insurance carrier partner issue and wallet share.

A: Yes, technical issues were resolved late Q1, early Q2. Carriers are happy, and Q3 will be a record revenue quarter for the insurance division. Conversations with carriers are about driving more traffic, not the opposite.

Q: Evolving search landscape with AI, role in customer acquisition.

A: AI is a huge opportunity. Seeing traffic from GenAI like ChatGPT, direct type-in traffic to website increasing due to presence in AI overviews, SEO team focused on AI-friendly content. GenAI creating more comparison shoppers for complicated products like insurance and financial products.

Q: Personal loans strength and impact of interest rate cut; AI on expense base.

A: Personal loans driven by execution and lenders expanding credit boxes. If interest rates drop, it would accelerate growth. AI expected to increase productivity, automate work, free up employees for higher-skilled tasks, aiming to make the company more productive with expense base.

Q: Raised guidance, macro assumptions, trends in July.

A: Home assumes no rate change, continues strength in home equity. Consumer sees lenders expanding credit boxes, encouraging. Insurance sees step up in July with run rating higher, Q3 expected strong despite slightly less margin due to competition