LendingTree Remains Upbeat Despite Loss In 1Q 2022
Summary
LendingTree Inc., citing “rapidly increasing interest rates and persistent inflationary headwinds,” today reported a net loss from continuing operations in the first quarter of 2022, even while noting improvement across its business units. “The diversity of our business continues to benefit shareholders as we grew revenue and VMM (variable marketing margin) this quarter despite rapidly increasing interest rates and persistent inflationary headwinds," said Doug Lebda, chairman and CEO. "We performed in line with our guidance across all metrics, while continuing to invest in our strategic growth initiatives.” He continued, “The Home segment performed well, with improving volume and unit economics in home equity and purchase mortgage helping to offset the dramatic decline in refinance volume.” LendingTree’s Home segment saw revenue decline 20% year over year to $101.9 million, causing the segment’s profit to fall 8% to $35.9 million, though the company noted that the first quarter of 2021 recorded a historically high refinance volume. The company said its lending partners are relying on LendingTree “even more at this point in the interest rate cycle to help meet their origination goals. "We remain in a position of strength to invest in our business, creating the premier customer financial shopping experience, while much of our competition struggles with profitability,” he said.