Q3 2020 LendingTree Inc Earnings Call
[music].
Due to navigate.
This challenging period.
First the benefits of diversification have never been more clear.
Financially speaking our performance over the last six months.
As demonstrated the durability of our business model, we have generated more than $50 million of adjusted EBITDA in the prior two quarters. In spite of the fact that revenue that the revenue opportunity in three of our five largest segments credit cards personal loans and small business has been de minimis.
Consumer businesses as well we've used this period of time to put renewed focus on strategy innovation and execution and we feel extremely confident in a relative competitive position and as well.
As a company. This is the third financial crisis that we've endured each time, we have emerged smarter stronger and better positioned and I'm confident today as I've ever been in with that operator, we can open the line for questions.
Ladies and gentlemen, if you have a question at this time.
<unk>.
Number one touchdown telephone if your question has been answered or you wish to remove yourself from the queue. Please press hashi.
At first question comes from the line of checks carrying from Oklahoma. Your line is okay.
So that we're sending fewer.
Multi match customers to multiple lenders were basically help getting you choice and then having one lender in most in many instances actually talking to you and doing sales.
That's really helped increase capacity and increase conversion rates at lenders and and that's that that's just going to continue.
The great news about mortgage I'd be only thing I'd add is it's it's it was our first product.
And it's our strongest warm and and or.
There's had better organic volume so we think thats critical to understanding what's going on but I just want a detailed that while while mortgage overall core mortgage grew 14% refinance is growing much faster, which is a better indicator of the low rate environment as it relates to insurance.
We highlighted in Q, well end of Q1, and Q2 that the obviously auto sales were down.
An inquiry about auto insurance was down and we highlighted that care.
Hello, Andrew.
Yeah, no absolutely. So insurance integration is ongoing John I guess, there are two aspects to it one is.
On the surface you would look at integration of our funnels, so effectively over time, we want to get into being able to.
Ingest somebody's information into my LT No for instance, the drivers record and be able to and we can work with third party.
Data providers for that and be able to show them Auto offers now there's the obvious one and when I say integration with our funnels. We we over time also want we think it will be a catalyst for our home business.
Pardon me for home insurance and incentives, but that is small as a reminder, auto is 80% of the insurance business.
Today, we are making progress, but most of the alerts that you get around insurance are not as personalized as we would like them to be.
And so that is an ongoing that is a key objective for next year is making that more personalized.
At the right time.
Which is what these investments this year well last year and this year, we'll do.
Will enable us to make credit card more targeted make insurance more targeted so.
So when you see us spending money this year and I think you used in one of your notes were on the offensive.
We made a very conscious decision in the second quarter, two not freeze on our investments.
And to make sure that we continue to invest in the business for next year. So all those data investments ongoing.
The people, who will affect those campaigns ongoing and so when you see our opex rise here in the second half, it's because we're preparing for next year. So.
That's super helpful. Thanks for that and then one little follow up for J D. On the on the Opex I mean, it's clear you guys are gonna ramping that in the back. After this year you stay on the offensive could you just maybe give us a couple of call out there I know you've got some duplicates H Q spend so maybe you could kind of outline what jazz releases for next year and then you know you guys came into this year the traditional.
Branch, then I think you hear Martin 50 million. So kinda since I know you probably still going through planning and <unk> is going to be dependent on the recovery across somebody's business units, but you know if you can give us a sense of what that might look like next year I don't know if it's too early for that but any kind of call up there would be helpful. Thanks.
Sure. So you know obviously this year, we went in looking forward to spending money to support my L. T. So I take a second part of the question first we're still evaluating what that.
Brandman will be.
We we paused in light of Covid on brand spend just because you know some of our business is that would have benefited the payouts were not there right on the consumer side of the business. When you see that decline you you obviously would Paul.
Pause on on branch meant and we're not alone in doing that right. So.
That's the the second part of the question as we go into next year, we have not yet set a goal for brand spend what I can tell you is we certainly have the intention of supporting my L. T. We're very happy with the product and.
As we evaluate.
The macro environment, we will flex if if for instance, our macro recovery in 21 is better than our forecast we will be in a position.
<unk> to flex up our branch spend accordingly, right now what we're assuming for our consumer businesses is that they track unemployment.
And to a degree consumer spending right. If you think about businesses like card.
Credit card issuers are only going to want to spend on new customers when they're enthusiastic about not only the credit worthiness of the customer, but the intent to spend.
So as they get confidence.
We think that the the card business will benefit, but there will be a lag in personal loans, we're already seeing a recovery.
And that's encouraging.
And there are signs of recovery and all of our consumer businesses.
Uhm, but when that translates into a better financial profile is is obviously somewhat unclear.
We're assuming the tracks unemployment consumer spending where she mean six month lag as we see that we will.
Lex into spend for my L T.
For my L. T brand branch then now the other piece of your question is two three and just looking at you know as a reminder, we did not freeze hiring but we did ask people for a plan B and plan B was really look out to 21 and say what do you need.
And so what you're seeing here in Q3 <unk>.
The step up in Opex in Q3 about 1.3 is related to compensation 1.5, almost 1.54 is really a million dollars is related to facilities because that's the first full quarter.
Of.
That additional rent expense or at least expense.
And recognize that much of that will reconcile itself next year.
Because we're we're basically paying for two facilities that we'd into facilities that we don't need.
There is also a pick up in professional fees to the tune of a million five as you know in the quarter.
We not only had financing activity, but also a lot of legal activity that we're happy to have in the rearview mirror with regard to homeless center.
And so <unk>.
Much of this opex is not what I would call a core increase in opex.
Some of it will continue in queue for.
<unk>.
And and obviously the good news about having made these investments. This year is we're pretty optimistic that we're gonna have to invest less in people and systems as in 21 relative to the investments that we've made in 20.
That's a great color. Thanks Scott.
Thanks, John.
Okay.
Our next question comes from the line of Mcelheny F. R. B C M I either of them.
Hey, Mark.
Okay, New curtains, please good morning, Doug and Judy.
And the letter you talk about a positive trends in consumer credit and spending could you just double click on that a little bit and talk about any any details you can provide them what are the data points that make you think that they were positive trends in consumer credit and spending and then a dog. If you don't mind do you think there's a material impact on your business on lending trees business.
Based on who wins the presidential election, and the make up of the Senate or is it largely immaterial to the fundamentals of lending tree over the next two to three years and things.
That was the ones like wires and I'll take a second.
Yeah, absolutely and a time to think about it now too.
[laughter] why don't I why don't I take the first one mark.
On the consumer business we.
I guess, we could refer to a couple of things there are.
Anecdotally, we are seeing if.
If I go back to the March April timeframe, and let me take credit card as an example.
Credit card business, we basically watched the capacity in that business the demand from our from our issuers.
Diminish.
Pretty significantly and we had certain of our card issuers, who just got off the affiliate channel completely. So we would we would look at where they were on other on on our competitors and we would see that their cards were not available and they refer to we're just getting off the affiliation well. The good news is as we sit here in November.
Those those credit card issuers are back on the network. Okay. So even those who fully pulled off of the network are now back on the network I would characterize them as cherry picking okay. So they are.
They are issuing cards watching the consumer spending.
And that is influencing how they'll spend go forward.
But to be clear as we look at Q4, we do expect revenue in our credit card business to grow substantially off of a very low base. Okay. So.
As I said, we're watching all of these businesses relative to unemployment and consumer spending.
And we're monitoring the month on month revenue opportunity, but for a business like card.
We expect revenue growth that will be substantial on a percentage basis in queue for but we don't expect it to contribute there will be a lag before it start to contribute because we are spending marketing dollars, there, but as an indicator of.
The interest of card issuers to grow portfolios, it's encouraging to have been back on the network.
Personal loans is interesting in the sense that.
The largest use case for a personal loan is the consolidation of credit card debt right. So we have not had consumer interest in personal loans because consumers generally used the stimulus dollars to pay down their credit card balances and there's been a lot of press about the fact that the consumer actually in terms of credit card.
That is it a pretty good position. So there has not been as much consumer demand for personal loans, but on the supply side, Okay with regard to all of our personal loan lenders.
At the low point and personal loans.
We were at about half of the lender base, we were pre covid.
We are now in a position where all.
The personal loan lenders are back on the network and looking to grow.
So that's the encouraging time and personal loans.
Now that business always has a seasonality to it right. So you're always go from a strong Q3, two diminished Q4, that's really on the consumer side and then it recovers in Q1, so recognize we probably do not on a revenue basis expecting the same growth and personal Q3 to queue for if we get it it's a function of.
This particular covid related cycle, not the consumer, but we have to be conscious of the consumer demand for personal ones small business is the other business. It was profoundly affected and again, we're seeing really good month on month trends there with regard to both small business demand for loans and lender access to capital so that business.
<unk> is I would say ahead of schedule relative to where I might've guessed it at the midpoint of the year. So all three businesses are showing signs of lenders coming back I think the big thing to recognize is in card specifically, that's a business, where we will see revenue growth before we see contribution growth and that will weigh very significantly.
On us in queue for but actually as it does that's a sign that it's recovering we think in 21 now getting back to where we were $211 million of revenue in fiscal 19 is gonna be a challenge and that's gonna take time throughout 21, and we're gonna need some macro recovery. There. So we're looking at all the signs of macro recovery.
The card issuers being back on the network is one of them.
And picking up on that and the second one I would say.
So I always I always think of the health of the of the underlying consumer if lenders are lending if the credit card companies are coming back on the personal loan companies coming back then they must be able to profitably my money they've looked at their the impact of Covid and they're sort of <unk>.
Moving back in business, so that's helping.
Health of the industry.
The second thing is help with the business are they buying.
Advertising and that obviously lags and and that's I'm starting to come back. So I think that's a good sign in terms of the election I don't think it's gonna I, if we're fine either way.
And the way I've always characterized our business once a this to Perry doors that if lenders are lending and borrowers are borrowing we're fine now I said that before 2007, when we were 90 per cent mortgage mortgage.
Mortgage lenders for a period of time stop lending and obviously died at an impact the diversification certainly really helps and if anything what I think you might see is the C. F. P. B could come out and could start to regulate Moore, which was very.
Under regulating during the trumpeter was regulating western the Trump administration will make any judgment on that actually could <unk>.
<unk> cut to our benefit because typically.
Taking my operating in advertising on the Internet, you're competing sometimes against people who aren't necessarily following.
And are sometimes too small to be the target of regulation, so a little more.
Rule leveling never hurts. So I think broadly were fine either way and I think it might cut to our benefit a little bit and then the only other thing I would add.
Is which I think will appeal to Democrats to potentially Democrat administration, but more importantly to our business.
As we help People's credit improve.
When J D talked about refinancing credit cards and do a personal loan. The reason can do that is verses because it's available but secondly, you can do it then again and again as People's credit improve and you can actually save the money on their on their own state and can you just basically what our mission is always wanted to do is give consumers the ability to manage their balance sheet the way corporates too.
And and I think we're kind of taken steps in that direction and with my Lendingtree that'd be sort of create your own business I'm actually helping people improve their.
Financial situation, and that's appealing financially and morally as well.
Okay. Thank you don't think of JD. Thank you. Thank you for you to talk to you [laughter].
Our next question comes from the line of Steven Shelton, William Blair Youre My knees.
[noise], if you've been morning, and a good morning, thanks for taking my questions.
Great to see the nice boost from the publisher platform an insurance in the quarter. So it was wanted to ask a couple of questions on that.
One was this the first quarter of material revenue contribution from that platform and then to just maybe some more detail on how you're seeing the platform being monetized by by your insurance clients.
To try and go and talk to that.
No. It's not the first it's just it's continued improvement I wouldn't call. It the first quarter of.
That initiative at all what we're really happy about there is that's investments get the team brought forward.
And.
That is that has ended up being.
You know if you've heard us talk about our kind of an hour and that kind of our investments process, where you can bring forward and.
Bring forward things that Martin necessarily gonna contribute in the next fiscal year, but or the right thing to do for the business longer term the insurance business has been particularly strong.
In bringing forward these ideas in a very focused manner and.
No. This is not the first quarter that we've seen strength there at all.
It's just continuing to execute and we're thrilled with it and it's ahead of schedule relative to its contribution.
And so it's probably the first quarter they were pointing it out publicly as a reminder, with many of our acquisitions, but particularly insurance one of the one of the strategic game plan kind of things is.
Yeah, diversify the business come up with different channels. This is one of those one of those.
[noise] approaches that makes sense. So that's we're we're just really happy with the performance.
Got it Okay, and then a quick one on Plaid I guess since you've launched the partnership in September and now it's very early but can you maybe talk about the degree that that that user so far have been willing to link their bank accounts to my learning tree and then how do you think about the incremental.
Monetization opportunities with that date I need to talk about it a little bit.
When it gets just as another way what types of recommendations do you foresee providing to consumers with that data.
Gotcha Uhm Trent I know you had some specific date I'm not sure what we can disclosed there's a how I'll need some general holidays, and then you can hit some specifics.
I would say first off it's very early and I would say, it's very encouraging the product itself is is great and the <unk> people, who are using it is fantastic I encourage you know play around with it.
Uhm initially you're just setting up your account and seeing six.
And that's pretty good however, the next step which were starting to do is basic cashflow forecasting and once you get about three months and that's when we can start to really get make much better recommendations the consumer to actually see what their income on what their expenses are and then in month, which will lead into the <unk>.
Next thing would just recommendations.
You can imagine that you can actually today, you're spending too much.
Or you know you need to save more and so you'll just be you'll be having a product that is much more engaging and much more usable than.
Sitting on top of that as I said, you'll see yes, you're an insurance scheme user you'll see if you've got a car you'll see you'll see if you're a homeowner and all of those things just spin off all of the ancillary services.
You can imagine around Lendingtree, which is clearly loans insurance deposits.
Uhm introductions to R. I, a is which we've just started you know the the exclusive offers an insurance credit card credit card and personal loans, we've talked about our <unk> pre call products are having.
Live Findable offers that you can give directly it to a consumer.
On the back of that will be it could be a potential.
I don't want a game changer, but it it could be a.
Big boost in monetization cause definitely gonna be a boost in an engagement, which when you're there then it's easier to.
Get you to do things.
And for saving your money and we're actually helping you with your life, then you're more likely to.
You know trust us around next time, you're looking for something that's here.
Oh.
You guys want to add anything to that yeah.
Yeah, I guess, yeah I, even work so go ahead and <unk>.
Oh, no I was gonna touch on Doug's boy with just say what you want we we highlighted in the letter that it's it's very early but of those users that have you know linked up their accounts uhm and taken advantage of that functionality.
They're one and a half times more likely to engage with the platform and users that have not done that uhm and revenue per user is almost 60% higher. So again, it's it's very early but obviously the size are are pretty encouraging let's do what we can do there and then I think you know just to further dogs point around.
The incremental data and then and then visibility that we have into the consumer's right being able to see when they're making specific payments and the vendors that they're making those payments to if we can see that you. Just you know paid your an insurance premium to a certain provider. We know that's a good time to.
You know to hit you. If we think that we can save you money et cetera. That's just that's one example.
And I could I could see down the road I'm going to be to be channels. We looked a private label October and my lightning tree, you're starting to see where they if you're seeing where their shopping.
Seeing repurchases are actually making you could then you know and what airlines are flying on and what hotels, they're staying in.
You know you could be even provide you could be working with companies like that and getting people to be switching and giving them offers to save some money out of categories that.
Where we would commit with the financial to some and but have customers, who and lay down on top of the room customer database.
So I can see some really interesting be to be stuffed down the road.
Great very help help a lot thanks guys.
Thanksgiving.
Your next question comes from <unk>.
Lightning Telcom.
Great. Thank you a couple of questions here going back to the insurance business I was wondering if you could maybe pill that on you know a little bit. So obviously congrats on that I really strong quarter back if he may be can speak to drivers of growth between maybe price and volume. We heard then it totally throughout the <unk>.
Corner that price in particular really really strong so if he can at four four car insurance, obviously tran.
And <unk>.
Prices, maybe can speak to that also G T C or direct to consumer insurance Sky's verses, maybe the incumbents in just the sustainability of that kind of growth going into two four and then on the on the home segment Uhm home equity seems to be the deep later, there can you just <unk>.
<unk> remind us uhm, how much of that business is home equity really hurt and again kind of what what's your.
Guidance is implying for for for that for that segment. Thanks a lot.
<unk>, let me hit the home equity part and then and then G. D. And then I'll get insurance kind of in high level and doesn't state it by the way J D. Not since we're not in the same location work.
Throwing questions back and forth it's like.
Think of the one of the reasons, we put the home. So I think the way. It is is because lenders who lend against your house.
Use refinance mortgage purchase mortgage and home equity largely a substitution project products and.
And so you move wherever your and the reason for that is.
There's an element of fixed capacity, what we've talked about before where there is human involvement there's appraisals that need to happen. There's documents I needed to get swap titles that need to get recorded and while that process is getting more streamlined.
They're still capacity so your <unk>, if if if when you think of mortgage lenders as manufacturers basically you're taking raw material as consumers and turning up the back end of lounge, and and so they need to maximize.
That capacity and so in a refi boom, you're gonna take all of your resources and process three five and you're going to leave everything else effectively sitting there the way you leave it but it sit there as you price it higher or something to that effect or you change.
Or you get back to those calls later effectively and so that so I wouldn't worry about that so I look at home in one total category and I'm the refi front there have been.
Between refinance and purchase concentration in the past there have been.
A lot of investors, who sometimes we'll worry about that and they'll go Oh My gosh, you're all refi one refined goes away. It goes away. We've lived through every single one of those cycles and as long as your overall.
Increase in your market share on your penetration.
Things are fine and we talked to the our big clients, they're like they're they're <unk>.
These relationships are very very close moving to insurance, what I would say is.
Just overall think about this says.
Supply and demand and if your insurance if insurers are Wanna write policies.
<unk> the place that they are increasingly moving towards is online and direct marketing acquisition channels and between our relationships with the major players in the minor player with a J O and trying to talk to have it continues to fill out.
And are a bright pricing ability and then just the continued reaching some monetization better you can just keep moving into more and more marketing channels like we've talked about and plus the management team. There I mean, those guys are delivered that whole pizza delivered.
Really really well and just continues to innovate and find new products that there.
Insurers want to work with them on work on new ways of integration and and it's just been really remarkable see it made an impact on the lendingtree business, even on the tech side in helping us out with with some of the things on the core Lendingtree doesn't so I can't say enough about them.
Anything that question account numbers.
Yeah, I'm, just looking across I mean in terms of our top customers and insurance Yusuf.
No. It is really I would characterize the I'd performances.
A little bit of a combination of everything what's happening is we're getting contribution from other channels that we have not historically as I look across the top customers.
You know literally across our top 10 customers, all but one increase their spend.
Materially in in Q3.
With us and so and you know most in the double or triple digit area, but if it continues to be big brand name.
Carriers and so that's really encouraging so we're getting more share of wallet. There. It's not necessarily I think you are suggesting is it is it is it new entrants direct to consumer players et cetera, No I'd say most of the strength is actually in our core base of customers now in terms of price being the draw.
<unk>, we certainly went through that a year ago in insurance when we were seeing prices for clicks that we would never have forecast. When we were analyzing quote wizard, that's not really the characterization of the strength in this quarter <unk>. The strength in this quarter had been more broad based as I look at.
At overall, you know or P. L. It's it's up sequentially, but so is C. P L and volume is up.
You know.
No I <unk> R. P. O is up I'm, not gonna disclose individual or P L, but our appeals up.
You know.
Greater than 10%, it's not it's not something that across the from from cube from queue to obviously our.
[noise] overall.
[noise] costs are up as well Q choose a little bit of a challenge in comparison, but if I look at where R. P. L. R. In the quarter. They are below many of the quarters.
In 19, most of most quarters in 19 actually.
Uhm and cost us as well so we're just becoming more efficient and I think it's basically the diversification of the business. That's that's responsible for these returned.
And so it sounds like most of these drivers are sustainable there's nothing that you know one time in nature or.
No. It's it's it continues to be a pretty healthy business.
Okay, well. Thank you G do you think of that.
Thank you.
Our next question comes from the line of Jamie Friedman about 1500.
Hi, Good morning continue to lately shareholder letter format Uhm compliments on <unk>, Yeah, It's a good woman.
I apologize if he misses but did you call out the student loan impact typically it's seasonally relevant in the queue three.
Yeah, and and and recognize we had a we did not uhm, we we called it out last quarter in when we talked about guidance for Q3.
Because we knew that the student bagels was gonna be more challenge given uncertainty around enrollments.
And so and it was and so we we had excellent performance a year ago and students. So we were coming up against a difficult comp lay around the covid environment and the uncertainty around enrollments that does influence the behaviour of student lenders and recognize that the in school.
Portion of the student business, Yeah, that's a key three businesses, we've always talked about and it's dependent realistically.
On a more narrow base of lenders can we would typically like so it it is not providing V. As much strength in Q3, as we would typically have gotten.
So when you look at our at the quarterly progression, we have to recognize that.
Got it Okay, and then also and then.
Show me, whether you call out.
The recovery relative to Covid Loews is on page five but I was just wondering you go through September can I just ask how have some of these observations trended like you in October because you like doubled and card September versus May.
There's other observations.
So anyway house, how How's October looking.
Sure. So as I mentioned before we're watching the quarter on quarter performance of those consumer businesses as an indicator sorry, the month on month as an indicator of how we.
Can project out 21, now obviously, we're not projecting out 21 at this point, but we're watching the monthly behavior as an indicator and we're encourage when we look at our expectations for Q4 were encouraged on the revenue line in a business like card less so in terms of contribution.
But we recognize that that's what's gonna happen first show when we 0.2.
You know September to May.
Restart made of September.
It's an indication of issue or interest in being on the network and so in that respect we feel pretty good.
But we're gonna be cautious about the consumer business given the uncertainty around covid right. So it would be one thing I think we'd be in a very different environment. If there were more certainty there.
We're gonna have to continue to watch her business quarter to quarter.
Because of these consumer businesses. We are encouraged it's I'd say all three businesses are ahead of where if we had the same conversation a quarter ago and you'd asked me, where we would be in card personal loan in small business.
I actually think all three businesses are ahead of where I might've projected then.
In terms of partner interesting growth should that part's great.
But in terms of financial contribution in queue for that card business as we invest in it with marketing spend will way on the quarter and that informs the guide so recognize that that's a big driver on our guard.
Yep makes sense. Thank you.
Sure.
Our next question comes from the line.
<unk> J P Morgan reminding them okay.
Thank you good morning, good morning.
<unk>.
Okay mm orange on the card margin I'm definitely hearing airplanes about so certainly revenue grass sequentially, but it sounds like really more professional for longer term recovery if yeah.
Yeah. I mean, you guys have mentioned in your letter that that's really have to get your arms around my ankle really interfering with a hole.
To the extent that takes a lot or anything really necessarily help is that.
Sort of positional and pricing something that you'd be willing to.
Uhm support for a bit longer even fix all thanks for 21.
So let me hit it at a high level and JD. Please <unk>.
The card business. So fundamentally you you you're always gonna be spending money on marketing to drive in <unk>.
Consumer demand if you've got to MS. Glatt, if you've got lender demand and then the lender demand Israel is obviously price and quantity for the different types of cards that they wanna issue if.
If they're issuing valued cards and spending a lot of money on marketing then we're gonna go out and drive be able to spend a lot and and drive that business up and then you see the revenue <unk> go up.
At times like this where you're you're both pulled back in marketing.
<unk> your <unk> at a unit level, you're making a little bit of money, but the good news is you're not losing.
You know you may have <unk>, there's a bit of a lag and credit card reporting. So I can have a like a day or something that that looks odd but in the in the general trend market to make as much money as you can and that demand is coming back but slowly when it comes back.
Your position to win and we'll get it.
Better than anybody else will but now it's sort of yeah. We're all we're fishing it doesn't cost us to fish, but when the fish come back we'll start bringing them in the boat, but until then you leave your lines in the water.
As long as you got enough gas in the tank does that makes sense G. D. So you can translate that'd be wonderful.
Sure I mean, most I guess the way that we would look at it is.
<unk>.
We have the good fortune because of our variable cost structure that obviously, our cost and track when the revenue opportunity Congrats the card business.
It has that same dynamic maybe not quite to the same degree.
But.
It's not that we're losing money what we're losing his contribution [laughter], but it's a business that obviously is critically important partners.
And it was at 200 plus million dollar revenue business a year ago. We don't think there's anything structural here where that business does not recover. So we are going to be patient and we're gonna continue to invest in that business. It just we I think we just need to recognize that the.
There is going to be a lag now where you will see some modest revenue growth here and we won't see much of a contribution if it takes longer it takes longer.
We've.
We've been very conservative with regard to all of our forecast for the consumer business for next year and I think appropriately so.
I got to emphasize we think those anyways are ahead ahead of those conservative projections. It just that we're dealing with that at the moment right. So that sorry go go ahead.
No my only I was gonna be that in some in some ways to the credit card.
The demand from credit card issuers, because consumers are somewhat appropriately spending less on their credit cards and does that comes back they're they're <unk> they're price.
The rabbit has their revenues go up at a unit basis that translate sauce.
Just takes a while.
Got it very helpful. Thank you.
Thank you.
Our next question comes from the line of France attack from appointment to research your Lightning Telecom.
Hey, Rob.
Good morning, guys Uhm I wanted to follow up on the initiatives to tie insurance more into my Lendingtree and specifically, what's the starting point today, how much of the insurance business now is coming through to my Lendingtree channel.
Might have a specific number that I can share with you, but I would say very little lessons and the new address certainly <unk> the minimum normally listen to the minimum.
Okay got it and then you know more broad question just wanted to the last corner you characterize the the M&A pipeline is full and and there were areas of interest what does that look like today in anywhere to call out where you guys are seeing opportunity.
I don't know how much we like to talk about this a good <unk>.
[laughter] well as you can imagine given that we've been acquisitive as a company for the last few years and given.
That we'd actually had a pretty good track record in terms of integrating acquisitions.
The funnel effectively of things that we see is expanded then so that's great in some cases, we we were getting the question earlier in the year, you know just covid make things cheaper.
In some cases, what it's done is actually given us more confidence the companies that we've looked at are actually really good businesses right because they performed well during this period of time, so it's actually a really good.
It's a really good opportunity for us to get.
A view on some businesses that we've tracked for a couple of years now so it wasn't I think we are in the fortunate position, where we don't have to go after some big partner wallet by that I mean, we got into the credit card business and 16, we got into the insurance business and 18 in early 19.
And those are big areas. So we don't have any great urgency on that side of things, we are seeing more and more opportunities.
We continue to be excited about things that will put us more.
More on the asset tied for the consumer that will integrate well with my Lendingtree, where specifically we've we've we've talked about small business as being an area that will continue to to look at investments as an area that will continue to look at so I'd say that the funnel is pretty.
Pretty full of opportunities and we're busy and I'd say that those are the focus areas and we're gonna continue to be disciplined with regard to price, but I think over the this past year was actually learned a lot about some businesses that were pretty excited about so M&A will continue to be a driver of our story. The good news is as we look out over the next year and the.
Portfolio of businesses that we have.
Our our organic growth will be just fine and and any M&A will be additive, but not necessary.
That's great. Thank you.
Well done.
I am showing no further questions at this time I would now like to turn the conference back at that time.
Thank you operator, and Thanksgiving everybody for for being here today, and and thanks to everybody Lendingtree Who's just performed fantastically over this period of time.
To our shareholders I thought today's call was interesting and that.
Everybody <unk>, we're talking a lot about structurally supply and demand and that this company just keeps continuing to balance supply and demand and this year as we said before our focus in doing that was focusing on winning making sure that our relationship there solid with our partners, making sure that our motto.
Lighting as well with our <unk> with our internals, making sure that our marketing is right with the consumer making sure that our monetization is there and then improving all of those things are improving our share and this year. We've had the luxury of time to be able to do that and we can see ourselves of women.
The second thing that I'm really encouraged also about is just seeing the market continue to evolve we recently or going through we're obviously going through our internal planning processes and you look back at the size of the market that we serve and how it's grown over the past several years and how our share is growing inside of it and then when you continue to see the.
Lucian a financial services on the Internet.
<unk>. It is the absolute makes sense product for the Internet and how financial services advertisement are increasingly moving online we stand in the years ahead to continue to win and then the last point out of today is it is demand comes back.
From these lenders and we're sitting here then lendingtree wins and so this year, we can win and market chair and we can win on products in that position to ask for the coming years to win not only on the bottom line, but importantly to win with consumers and giving them revolutionary products that are actually gonna change their lives.
And so with that we'd like to thank you very much and we will talk to you next door.
Okay.
[music].