Lendingtree, Inc. · NASDAQ:TREE
Lendingtree — Needham Growth Conference 2015
22 slides from Lendingtree's conference presentation, January 2015
Slide 1: Needham Growth Conference
Needham Growth Conference January, 2015 LendingTree, Inc. Nasdaq: TREE
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 The matters contained in this presentation may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as ame
Slide 3: Company History
Company History Jan ‘15 Sept ‘04 Sept ‘11 Corporate name Acquired Completed changed to Home Loan Center sale of June ‘96 (“HLC”; principal Realestate.com LendingTree, Inc. LendingTree Feb ‘00 mortgage lender) from Tree.com, Inc. founded LendingTree IPO Aug ‘08 $44M Tree.com June ‘12 May ‘03 spun out
Slide 4: A True Online Marketplace
A True Online Marketplace Matching Consumers with Lenders and Other Service Providers Free Credit Scores Tools & Resources Retail Banks Ratings & Reviews Access to Cost-Efficient Mortgage Cos. Multiple Customer Offers Acquisition Specialty Finance & P2P Performance Marketing Auto Machine Dealers/ Le
Slide 5: Where Consumers Shop for Money
Where Consumers Shop for Money THE Online Marketplace for Analogous to other marketplaces Consumer Loan Shopping for Travel, Retail, etc. 5 5
Slide 6: Working With Top-Tier Lenders
Working With Top-Tier Lenders… …of all models… …across loan categories Banks $16B+ Annual Loan Originations(1) Facilitated by Mortgage Other Lenders/ Personal Loans Brokers Auto Loans Home Equity Mortgage P2P & Specialty Finance $16B+ Student Loan Refi Small Business 1) Annual run-rate based on lend
Slide 7: Providing Value to Both Borrowers and Lenders
Providing Value to Both Borrowers and Lenders Borrowers can save by Lenders receive predictable, comparison-shopping targeted, cost-efficient volume Highly-Targeted “Filters” (1) Multiple Delivery Methods Reporting & Analytics 1) Source: LT press release (10/15/14) – “In the third quarter, borrowers
Slide 8: Addressable Markets
Addressable Markets Well-positioned to capture share across lending categories Mortgage – the largest component $12 Trillion Debt Outstanding of US consumer debt (US Consumer(2) + Small Business(3)) 7x larger than the #2 category Other Small Biz $0.3 LendingTree facilitating ~1.2% of Credit Card
Slide 9: Continuous Product Innovation
Continuous Product Innovation Reverse Mortgage – Q1 ‘13 Credit Cards – Q2 ‘13 Mobile Experience – Q2 ‘13 Personal Loans – Q3 ‘13 Loan Officer Directory – Q1 ‘14 Local Introductions – Q1 ‘14 Small Biz Loans – Q3 ‘14 Student Loan Refi – Q4 ‘14 9 9
Slide 10: All-New My LendingTree
All-New My LendingTree 100% free credit score…“with a brain” John Doe Free credit score for consumers enables: $ $ Proactive, market-based savings alerts to consumers Exposure to broader set of LT offerings Reduces dependence on paid marketing Repeat user engagement – lifetime value 400,000+ u
Slide 11: My LendingTree (cont'd)
My LendingTree (cont’d) New user growth accelerating 400k+ users in 194 days Daily New Users Cumulative New Users 5,000 Launched $10k 4th 100k in 4,500 Giveaway 34 days Sweepstakes 4,000 Launched 3rd 100k TV ad 3,500 in 40 days 3,000 Began paid Marketing 2nd 100k 2,500 in 47 days Mobile 2,000 enable
Slide 12: The Iconic Brand
The Iconic Brand 71% brand awareness Q3 ’14 - first TV spot targeting personal loans $1+ billion lifetime investment Nov ’14 - “Free credit score with a brain” targeting My LendingTree enrollment Aided Brand Awareness(1) 100% 80% 78% 80% 71% 69% 62% 60% 40% 18% 20% 14% 9% 0% Bank of America Wells Fa
Slide 13: Financial Profile
Financial Profile lendingtree
Slide 14: How We Make Money
How We Make Money Facilitate loan originations for our lender network Key Drivers 1) Increase lender demand 2) Improve lender conversion 3) Enhance marketing efficiency Revenue Variable Marketing & (Match & Marketing Advertising Close Fees) Margin Funded Loans , ~1.2% (3) Lenders Qualified Consumers
Slide 15: Operating Model
Operating Model % of Revenue(1) • Transmit Fees Revenue 100% • Closed Loan Fees • Hybrid • TV • Paid Search • Social Media - Working media expense 57% • Radio • Organic Search • Partnerships • Print • Display • Email • Ad Serving - Non-media expense 3% • Creative Production • Agency Fees = Variable
Slide 16: Quarterly Financial Performance
Quarterly Financial Performance Revenue & VMM ($ Mil) Adjusted EBITDA ($ Mil) $50 100% $6 $5.9 30% $5.8 Launched National Brand Campaign $5.5 $45 90% $5.4 $5.7 $42.1 - $41.3 $42.5- $40.0 $5 $4.7 25% $40 $40.5 80% $37.4 $37.3 $36.4 $4.5 $35 70% $4.1 $4 20% $30 $28.1 60% $3.4 16% 48% 15% 14% 14% $25 4
Slide 17: Unpacking Growth: Mortgage vs. Non-Mortgage
Unpacking Growth: Mortgage vs. Non-Mortgage Revenue ($ Mil) Mortgage Revenue Outperforming Market Originations Y/Y Growth $45 95% $42.1 100% $41.3 75% 75% $40.0 $7.5 51% $9.3 50% $40 30% 35% $5.8 20% 14% $37.4 $37.3 25% 5% $36.4 0% $4.4 (3%) $3.7 $4.7 (25%) $35 (20%) (31%) $34.7 (50%) (42%) (46%) $3
Slide 18: Selected Balance Sheet Items
Selected Balance Sheet Items ($ Mil) 9/30/14 Cash & Equivalents $83.6 Restricted Cash & Equivalents 21.9 Accounts Receivable 13.8 Total Current Assets 121.1 Working capital of PP&E 5.6 $63.4M(1) Goodwill 3.6 Intangible Assets 11.6 Total Assets $142.0 Significant NOLs(2) $30M Federal Accounts Payab
Slide 19: Guidance Summary
Guidance Summary FY 2014 FY 2015 Revenue $164.0 - $166.0 Revenue(1) $184.8 - $189.8 Y/Y Growth 18% - 19% Y/Y Growth 12% - 15% VMM $ $63.0 - $65.0 VMM $ $73.0 - $77.0 Y/Y Growth 8% - 11% Y/Y Growth(1) 14% - 20% Adj. EBITDA $20.5 - $21.5 Adj. EBITDA $25.5 - $26.5 Y/Y Growth 10% - 15% Y/Y Growth(1) 21%
Slide 20: Investment Highlights
Investment Highlights THE marketplace for consumer loans Providing value to consumers & lenders Leader in largest loan category – Mortgage At forefront of high-growth lending categories Iconic brand Cutting-edge marketing & analytics Continuous product innovation New My LendingTree – personalization
Slide 21: For more information please contact:
For more information please contact: Trent Ziegler VP – Finance & Investor Relations [email protected] 704-943-8294 Alex Mandel Chief Financial Officer [email protected] Doug Lebda CEO and Chairman [email protected] 21 21
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