LendingTree’s stock (NASDAQ:TREE) took a nosedive today after the online lending marketplace slashed its full-year revenue guidance, citing tough macroeconomic conditions. The company wrapped up its cost-cutting efforts in the first quarter. CEO Doug Lebda explained that trimming fixed costs in the last two quarters should help the company generate better operating leverage when partner demand bounces back.
Now, LendingTree anticipates its 2023 revenue to land between $760 million and $800 million, a figure that trails the $945.6 million consensus and the previous $935 million to $985 million range. The firm also projects a 2023 variable marketing margin of $290 million to $310 million, compared to the $343 million consensus and the earlier $325 million to $350 million range. Adjusted EBITDA for the year is expected to be between $80 million and $90 million, a decrease from the prior $85 million to $95 million range.
Q1 non-GAAP earnings per share came in at $0.25, outperforming the -$0.11 consensus but falling from the $0.38 in the previous quarter and $0.46 a year ago. Quarterly revenue was $200.5 million, missing the $207 million consensus and dropping from $202.1 million in Q4 2022 and $283.2 million in the same period last year. LendingTree’s Q2 revenue projection is between $190 million and $200 million, short of the average analyst estimate of $244.3 million.
A look at the past five trading days for TREE stock highlights the level of impact today’s news had on it. Indeed, shares fell over 26% at the time of writing. As a result, investors are now down 24.29% during this timeframe.
