EX-99.1 2 ex991-segmentrecast.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

LendingTree Segment Results
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Twelve Months Ended
 
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
 
December 31, 2017
 
Home (1)
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
75.5

 
$
87.6

 
$
92.5

 
$
84.7

 
 
$
340.4

 
Segment profit
$
30.3

 
$
34.9

 
$
39.8

 
$
31.3

 
 
$
136.2

 
Segment profit % of revenue
40
%
 
40
%
 
43
%
 
37
%
 
 
40
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer (2)
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
56.9

 
$
65.0

 
$
78.6

 
$
75.7

 
 
$
276.1

 
Segment profit
$
22.0

 
$
25.6

 
$
34.3

 
$
33.8

 

$
115.7

 
Segment profit % of revenue
39
%
 
39
%
 
44
%
 
45
%
 
 
42
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance (3)
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
—

 
$
—

 
$
—

 
$
0.1

 
 
$
0.1

 
Segment profit
$
—

 
$
—

 
$
—

 
$
0.1

 

$
0.1

 
Segment profit % of revenue
—
%
 
—
%
 
—
%
 
—
%
 
 
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Category (4)
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
0.1

 
$
0.1

 
$
0.4

 
$
0.5

 
 
$
1.1

 
Profit
$
(0.1
)
 
$
(0.2
)
 
$
(0.1
)
 
$
(0.2
)
 
 
$
(0.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$
132.5

 
$
152.8

 
$
171.5

 
$
161.0

 
 
$
617.7

 
 
 
 
 
 
 
 
 
 
 
 
 
Total segment profit
$
52.2

 
$
60.3

 
$
74.0

 
$
65.0

 
 
$
251.4

 
   Brand marketing expense (5)
$
(8.7
)
 
$
(12.0
)
 
$
(14.9
)
 
$
(8.9
)
 
 
$
(44.4
)
 
Variable marketing margin (6)
$
43.5

 
$
48.3

 
$
59.1

 
$
56.1

 
 
$
207.0

 
Variable marketing margin % of revenue (6)
33
%
 
32
%
 
34
%
 
35
%
 
 
34
%
 
 
 
 
 
 
 
 
 
 
 
 
 

(1)
The Home segment includes the following products: purchase mortgage, refinance mortgage, home equity loans and lines of credit, reverse mortgage loans, and real estate.
(2)
The Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products such as credit repair and debt settlement.
(3)
The Insurance segment consists of insurance quote products.
(4)
The Other category includes revenue from the resale of online advertising space to third parties and revenue from home improvement referrals, and the related variable marketing and advertising expenses.
(5)
Brand marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses that are not assignable to the segments' products. This measure excludes overhead, fixed costs and personnel-related expenses.
(6)
Variable marketing margin and variable marketing margin % of revenue are non-GAAP measures. Please see "LendingTree's Reconciliation of Non-GAAP Measures to GAAP" for more information.





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LendingTree Segment Results
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Twelve Months Ended
 
 
March 31, 2018
 
June 30, 2018
 
September 30, 2018
 
December 31, 2018
 
 
December 31, 2018
 
Home
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
92.8

 
$
88.0

 
$
75.1

 
$
63.3

 
 
$
319.2

 
Segment profit
$
31.7

 
$
27.3

 
$
24.1

 
$
21.6

 
 
$
104.7

 
Segment profit % of revenue
34
%
 
31
%
 
32
%
 
34
%
 
 
33
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
87.9

 
$
94.0

 
$
115.5

 
$
98.2

 
 
$
395.6

 
Segment profit
$
39.0

 
$
43.8

 
$
57.2

 
$
47.8

 
 
$
187.7

 
Segment profit % of revenue
44
%
 
47
%
 
50
%
 
49
%
 
 
47
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
—

 
$
—

 
$
—

 
$
31.3

 
 
$
31.4

 
Segment profit
$
—

 
$
—

 
$
—

 
$
11.3

 
 
$
11.4

 
Segment profit % of revenue
—
%
 
—
%
 
—
%
 
36
%
 
 
36
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Category
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
0.3

 
$
2.1

 
$
6.5

 
$
9.9

 
 
$
18.7

 
Profit
$
(0.3
)
 
$
0.6

 
$
0.2

 
$
0.8

 
 
$
1.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$
181.0

 
$
184.1

 
$
197.1

 
$
202.7

 
 
$
764.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Total segment profit
$
70.4

 
$
71.7

 
$
81.5

 
$
81.5

 
 
$
305.1

 
   Brand marketing expense
$
(7.4
)
 
$
(4.0
)
 
$
(4.7
)
 
$
(3.0
)
 
 
$
(19.0
)
 
Variable marketing margin
$
63.0

 
$
67.7

 
$
76.8

 
$
78.6

 
 
$
286.1

 
Variable marketing margin % of revenue
35
%
 
37
%
 
39
%
 
39
%
 
 
37
%
 
 
 
 
 
 
 
 
 
 
 
 
 



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LendingTree Segment Results
(In millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31, 2019
 
June 30, 2019
 
September 30, 2019
 
Home
 
 
 
 
 
 
Revenue
$
63.4

 
$
71.8

 
$
77.3

 
Segment profit
$
23.9

 
$
24.2

 
$
28.1

 
Segment profit % of revenue
38
%
 
34
%
 
36
%
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
Revenue
$
120.7

 
$
129.0

 
$
151.9

 
Segment profit
$
54.0

 
$
50.8

 
$
65.2

 
Segment profit % of revenue
45
%
 
39
%
 
43
%
 
 
 
 
 
 
 
 
Insurance
 
 
 
 
 
 
Revenue
$
67.1

 
$
71.9

 
$
74.8

 
Segment profit
$
27.9

 
$
28.8

 
$
30.0

 
Segment profit % of revenue
42
%
 
40
%
 
40
%
 
 
 
 
 
 
 
 
Other Category
 
 
 
 
 
 
Revenue
$
11.1

 
$
5.8

 
$
6.6

 
Profit
$
0.8

 
$
0.3

 
$
0.4

 
 
 
 
 
 
 
 
Total revenue
$
262.4

 
$
278.4

 
$
310.6

 
 
 
 
 
 
 
 
Total segment profit
$
106.5

 
$
104.1

 
$
123.6

 
   Brand marketing expense
$
(14.1
)
 
$
(10.3
)
 
$
(8.1
)
 
Variable marketing margin
$
92.5

 
$
93.8

 
$
115.6

 
Variable marketing margin % of revenue
35
%
 
34
%
 
37
%
 
 
 
 
 
 
 
 




LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Variable Marketing Margin

Below is a reconciliation of net income (loss) from continuing operations to variable marketing margin and net income (loss) from continuing operations % of revenue to variable marketing margin % of revenue.

 
Three Months Ended
 
 
Twelve Months Ended
 
March 31,
2017
 
June 30,
2017
 
September 30,
2017
December 31,
2017
 
 
December 31,
2017
 
(in thousands, except percentages)
 
 
 
Net income from continuing operations
$
7,798

 
$
8,007

 
$
10,131

$
(6,518
)
 
 
$
19,418

Net income from continuing operations % of revenue
6
%
 
5
%
 
6
%
(4
)%
 
 
3
%
 
 
 
 
 
 
 
 
 
 
Adjustments to reconcile to variable marketing margin:
 
 
 
 
 
 
 
 
 
Cost of revenue
3,591

 
4,164

 
4,388

5,080

 
 
17,223

Non-variable selling and marketing expense (1)
4,249

 
4,681

 
6,118

6,953

 
 
22,001

General and administrative expense
11,547

 
12,094

 
17,920

29,980

 
 
71,541

Product development
3,623

 
4,064

 
4,805

5,433

 
 
17,925

Depreciation
1,703

 
1,808

 
1,798

1,776

 
 
7,085

Amortization of intangibles
2,609

 
2,608

 
3,817

3,958

 
 
12,992

Change in fair value of contingent consideration
8,746

 
9,393

 
2,501

3,291

 
 
23,931

Severance
157

 
247

 
—

—

 
 
404

Litigation settlements and contingencies
404

 
285

 
272

(243
)
 
 
718

Interest expense, net
165

 
1,079

 
2,804

2,980

 
 
7,028

Other (income) expense
—

 
(13
)
 
228

181

 
 
396

Income tax (benefit) expense
(1,079
)
 
(104
)
 
4,292

3,182

 
 
6,291

Variable marketing margin
$
43,513

 
$
48,313

 
$
59,074

$
56,053

 

$
206,953

Variable marketing margin % of revenue
33
%
 
32
%
 
34
%
35
 %
 
 
34
%

(1
)
Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses.



 
Three Months Ended
 
 
Twelve Months Ended
 
March 31,
2018
 
June 30,
2018
 
September 30,
2018
December 31,
2018
 
 
December 31,
2018
 
(in thousands, except percentages)
 
 
 
Net income from continuing operations
$
35,857

 
$
44,849

 
$
28,362

$
251

 
 
$
109,319

Net income from continuing operations % of revenue
20
%
 
24
%
 
14
%
—
%
 
 
14
%
 
 
 
 
 
 
 
 
 
 
Adjustments to reconcile to variable marketing margin:
 
 
 
 
 
 
 
 
 
Cost of revenue
5,696

 
6,043

 
10,838

13,822

 
 
36,399

Cost of advertising re-sold to third parties (1)
—

 
—

 
(3,628
)
(5,184
)
 
 
(8,812
)
Non-variable selling and marketing expense (2)
8,016

 
7,571

 
7,770

6,985

 
 
30,343

General and administrative expense
22,814

 
24,759

 
22,980

30,666

 
 
101,219

Product development
6,260

 
5,967

 
6,608

8,123

 
 
26,958

Depreciation
1,671

 
1,633

 
1,895

2,186

 
 
7,385

Amortization of intangibles
3,963

 
3,964

 
5,701

9,840

 
 
23,468

Change in fair value of contingent consideration
(741
)
 
(167
)
 
2,105

9,591

 
 
10,788

Severance
—

 
3

 
2,328

21

 
 
2,352

Litigation settlements and contingencies
(22
)
 
(170
)
 
(88
)
94

 
 
(186
)
Interest expense, net
2,988

 
2,924

 
2,393

4,132

 
 
12,437

Other (income) expense
(34
)
 
71

 
69

(96
)
 
 
10

Income tax (benefit) expense
(23,461
)
 
(29,721
)
 
(10,534
)
(1,859
)
 
 
(65,575
)
Variable marketing margin
$
63,007

 
$
67,726

 
$
76,799

$
78,572

 

$
286,105

Variable marketing margin % of revenue
35
%
 
37
%
 
39
%
39
%
 
 
37
%

(1
)
Represents the portion of cost of revenue attributable to costs paid for advertising re-sold to third parties. Excludes overhead, fixed costs, and personnel-related expenses.
(2
)
Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses.



 
Three Months Ended
 
March 31,
2019
 
June 30,
2019
 
September 30,
2019
 
(in thousands, except percentages)
Net income from continuing operations
$
550

 
$
12,981

 
$
24,463

Net income from continuing operations % of revenue
—
%
 
5
%
 
8
%
 
 
 
 
 
 
Adjustments to reconcile to variable marketing margin:
 
 
 
 
 
Cost of revenue
17,670

 
16,310

 
17,671

Cost of advertising re-sold to third parties (1)
(7,336
)
 
(5,053
)
 
(5,809
)
Non-variable selling and marketing expense (2)
12,305

 
12,079

 
11,580

General and administrative expense
31,117

 
27,951

 
30,323

Product development
10,166

 
10,175

 
10,200

Depreciation
2,482

 
2,559

 
2,696

Amortization of intangibles
13,427

 
14,280

 
13,778

Change in fair value of contingent consideration
14,592

 
2,790

 
3,839

Severance
54

 
403

 
179

Litigation settlements and contingencies
(207
)
 
8

 
(92
)
Interest expense, net
5,468

 
5,095

 
4,845

Other (income) expense
(68
)
 
(71
)
 
(4
)
Income tax (benefit) expense
(7,752
)
 
(5,689
)
 
1,889

Variable marketing margin
$
92,468

 
$
93,818

 
$
115,558

Variable marketing margin % of revenue
35
%
 
34
%
 
37
%

(1
)
Represents the portion of cost of revenue attributable to costs paid for advertising re-sold to third parties. Excludes overhead, fixed costs, and personnel-related expenses.
(2
)
Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses.