XML 66 R45.htm IDEA: XBRL DOCUMENT v3.24.0.1
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of non-cash compensation expense related to equity awards
Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (loss) (in thousands):
Year Ended December 31,
202320222021
Cost of revenue$396 $1,608 $1,639 
Selling and marketing expense5,267 8,282 7,480 
General and administrative expense25,180 40,233 50,989 
Product development6,333 8,418 8,447 
Restructuring and severance2,506 1,083 — 
Total non-cash compensation$39,682 $59,624 $68,555 
Summary of changes in outstanding stock options
A summary of changes in outstanding stock options is as follows:
Number of OptionsWeighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value(a)
(per option)(in years)(in thousands)
Outstanding at December 31, 2022805,079 $155.10  
Granted— —   
Exercised— —   
Forfeited(17,746)115.79   
Expired(52,558)229.34   
Outstanding at December 31, 2023734,775 $150.74 3.72$1,111 
Options exercisable601,405 $135.43 2.91$1,111 
(a)The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $30.32 on the last trading day of 2023 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on December 31, 2023. The intrinsic value changes based on the market value of the Company's common stock.
A summary of changes in outstanding stock options with market conditions at target is as follows:
 Number of Options with Market ConditionsWeighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value(a)
  (per option)(in years)(in thousands)
Outstanding at December 31, 2022734,685 $230.79   
Granted
— —   
Exercised— —   
Forfeited— —   
Expired(16,247)308.96   
Outstanding at December 31, 2023718,438 $229.02 4.67$— 
Options exercisable481,669 $195.10 3.60$— 
(a)The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $30.32 on the last trading day of 2023 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on December 31, 2023. The intrinsic value changes based on the market value of the Company's common stock.
Summary of stock option valuation assumptions The weighted average assumptions used are as follows:
Year Ended December 31,
202320222021
Expected term (1)
— 
5.00 - 6.00 years
5.00 - 6.00 years
Expected dividend (2)
— — — 
Expected volatility (3)
— 
53%- 56%
53% - 59%
Risk-free interest rate (4)
— 
1.62%- 3.23%
0.59% - 1.15%
(1)The expected term of stock options granted was calculated using the 'Simplified Method', which utilizes the midpoint between the weighted average time of vesting and the end of the contractual term. This method was utilized for the stock options due to a lack of historical exercise behavior by the Company's employees.
(2)For all stock options granted during the years ended December 31, 2022 and 2021, no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate.
(3)The expected volatility rate is based on the historical volatility of the Company's common stock.
(4)The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date.
Schedule of changes in outstanding non-vested RSUs, restricted stock and RSUs with performance conditions
A summary of changes in outstanding nonvested RSUs is as follows:
 RSUs
 Number of UnitsWeighted Average Grant Date
Fair Value
(per unit)
Nonvested at December 31, 2022485,053 $127.46 
Granted (a)
391,953 31.69 
Vested(244,580)129.30 
Forfeited(160,833)70.13 
Nonvested at December 31, 2023471,593 $66.42 
(a)The grant date fair value per share of the RSUs is calculated as the closing market price of LendingTree's common stock at the time of grant.
A summary of changes in outstanding nonvested RSUs with performance conditions is as follows:
 RSUs with Performance Conditions
 Number of UnitsWeighted Average Grant Date Fair Value
(per unit)
Nonvested at December 31, 202216,000 $83.25 
Granted— — 
Vested— — 
Forfeited(16,000)83.25 
Nonvested at December 31, 2023— $— 
Schedule of employee stock purchase plan valuation assumptions For purposes of determining stock-based compensation expense, the grant date fair value per share estimated using the Black-Scholes option pricing model required the use of the following key assumptions:
Year Ended December 31,
20232022
Expected term (1)
0.50 years0.50 years
Expected dividend (2)
— — 
Expected volatility (3)
82%
49% - 73%
Risk-free interest rate (4)
4.76% - 5.50%
0.19% - 2.51%
(1)The expected term was calculated using the time period between the grant date and the purchase date.
(2)No dividends are expected to be paid, resulting in a zero expected dividend rate.
(3)The expected volatility rate is based on the historical volatility of the Company's common stock.
(4)The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the Employee Stock Purchase Rights, in effect at the grant date.