Q3 2021 LendingTree Inc Earnings Call

Denise Clinton friends is scheduled to begin jointly niece continued to standby. Thank you for your patience.

[music].

Good day, and thank you for standing by all come to the lending three Inc. They quite a 2021 and my friends.

At this time all participants are in a listen only mode. After he the speaker's presentation. There there'll be a question and answer session to ask that question. During the session you will need the press. It started wanting a telephone keypad. Please be advised that the these conference is being recorded.

You require any further assistance. Please breath is Thursday ago, and without further Ado I would now like to hand, the conference over at the one of your speakers today.

Mister Andrew that's all head of I R. DS go ahead Sir.

Thank you big good morning, everyone and thank you for joining us on the call. This morning to discuss money to the third quarter of 2021 sitting until resolved on.

On the call today are dug loved.

<unk> <unk>, Chairman and C E O J D Moriarty President of Lendingtree next and Trent Ziegler CFO.

As a reminder to everyone. We posted a detailed letter to shareholders on an investor relations website earlier today and for the purposes of today's call. We will assume that listeners have read that letter and will focus on Q&A.

My hand, the call over the dog to give his remarks I want to remind everyone that today's call that during today's call. We may discuss 20 trees expectations for future performance any forward looking statements that we make are subject to risks and uncertainties and money trees actual results could differ materially from the views expressed today.

Many but not all the risks we face in describing our periodic report filed with the S. P. C. We will also discuss a variety of non-GAAP measures on the call today.

And I refer you to today's press release and shareholder letter both available on our website and investors Dot Lendingtree dot com for the comparable gap definition and full reconciliations of non-GAAP measures to go with that please go ahead. Thanks.

Thanks, Andrew and thank you to everyone joining us today before we get into questions I'd like to discuss the sustained momentum we've seen across most of our businesses and the diversification benefits we enjoy from the various financial industries. We work with are deep network of lenders across both the home and consumer segments helped us to achieve the.

Hi end of our revenue guidance, despite the temporary partner spend declines occurring in the insurance industry. In addition are new credit facility and strong balance sheet allow us to remain on the offensive while many of our competitors are struggling to operate profitably the.

The recent monetization of a portion of our ownership and stash provide us with additional liquidity.

All capital allocation options remain on the table, including further investment in the business share repurchases and exploring inorganic growth opportunities.

This quarter, the homesick segment generated record V M D up 65% over last year as low interest rates led to sustained refinance opportunities and improvement in the purchase market.

Mortgage revenue per lead was up 78% over the prior period indicator of the value we delivered to our lending partners every day and our ability to survive multiple different types of interest rate cycles. The consumer segment also generated impressive results as the recovery from the trough experience at the outset of the pandemic continue we have more.

Lenders on our personal loan platform than ever before in our credit card partners remain eager to acquire new borrowers as the effect of sustained government stimulus wanes, we have new initiatives rolling out, which will help sustain momentum and the consumer business as we move into next year.

My lending tree is benefiting from the realignment of our management team that we put in place earlier. This year, we added 1.1 million new users in the quarter, bringing the total to $20 million, we see an incredible opportunity to add product and functionality to my lending tree, which will help to provide a best in class customer experience the wheel that will in turn.

Additional partners to the platform, we look forward to discussing more about our plans for my lending tree and all of our businesses at our upcoming Investor Day early next year no operator, we're happy to open line for questions.

As a reminder to ask a question you will need the press is style Londonderry telephone to enjoy your question basket boundaries. Please stand by while the compiler nicknamed the roster.

Your first question comes from the line of use that this quality furniture list your nineties open.

Great. Thank you very much and good morning, all so a couple of questions for me first on the Doug on the insurance business I think in the letter you're talking <unk> you talked about how you believe it's a temporary phenomenon and I was just wondering and I know you went through this and 2016 I was wondering how do you know that it's temporary.

It says, maybe something structural or potentially competition and maybe just remind us what happened 2016, how long. It took you guys to to recoup from there.

And then.

Go ahead, Oh go ahead, sorry, you said finish up but yeah, I mean, just kind of how do you think we do.

The investment community should kind of look at that segment over the near term as you've rolled out the the medical care offering et cetera, and then I have a quick follow up for for yeah. So let me just broadly I'll give you my perspective and then this is.

That's a many angles on that question that these guys J D and trend should add on as well too without going.

Going back to 2016, because every cycles different what you're seeing right. Now is basically insurance companies that are obviously enormous splendors of advertising.

Pulling back some.

Lawrence companies pulling back bids.

To reduce the flow of inbound volume because they're facing right now higher loss rates uhm.

Auto insurance.

And those rates have not gone through regulators yet so.

And that's what our partners that loss.

That we know our business works, we know our partnerships are strong.

And then.

And that's what they tell us is going to happen.

And it's never fun when that happens. However, it also shows the flexibility of the model when you've got your marketing dialed in like that I mean, this is still a very profitable business for us and because we can market scale. We can weather this better than most companies can.

And I think that's going to create a lot of opportunity. So when something like this happens it happens to every.

Oh, it leads supplier in the industry and they're probably working with 10 or 20 with us being one of the biggest you'll start to see a lot of weeding out in the same way that we used to have a lot of search engines and now we only have one or two.

During cycles like this it would we'd it'll weed out a lot of the buyers and it'll probably be a long term benefit for us because we won't have as much media competition.

Go ahead, you use of it's J D. The only thing I would add is.

Let's just talk a little bit about what that cycle is.

It's well publicized that the results at the carriers have not been good. It's a combination of 2020 was a great environment consistent.

Premiums and very low claims because no drivers were on the road in 2021 drivers get on the road.

Obviously premiums are quite low given the environment that we've had that we've had where prices have been driven down premiums have been driven down. So it was not a good environment and then hurricane item made it worse.

So.

It's pretty obvious to us it's not an issue of competition, it's an issue of the health of the carrier.

Now if you think about that business relative to our other products. It is somewhat unique in that it has subscription like qualities to it. The difference is four carriers to increase prices they have to get state by state approvals. So they work through their models they apply to increase prices, how does that matter for us.

We should assume that that isn't going to change, it's obviously not going to change in 2021.

They get approvals and early 22, they've been increased prices.

That is the greatest call to action to a consumer to go search for a new new provider or for a better rate.

And so that will actually be a good thing for our business.

It's just a matter of the cycle, so getting back to your point around comparing this to 16, it's not perfect. It is the most recent period the business recovered.

Nicely in 17, and then obviously we were in a position to acquire Quotewizard at the end of 18, so it recovered pretty quickly.

And there is an interesting aspect of it where it drives consumers.

To comparison shop. So that's the part that one of the things that we really like about the business is that when prices increase which they undoubtedly will.

It will be it will be to our benefit in terms of focusing consumers.

On.

On comparison shopping so we think that will be good now in the period, we're really happy with everything going on in our insurance business in the strategy there has been diversify across products.

We're doing that we've talked a lot about our agency initiatives in PNC ended Medicare and so there are a lot of really good things going on in insurance and then as Doug said competitively.

We come at this with a very profitable insurance business. Many of our competitors are not as profitable they don't have as much to work with.

So while our margins have come in in the most recent period, we're still operating very we're able to weather this period better than our competition and so we're going to continue to invest in the business that we think is a great business for lending tree.

And that was excellent and I would I wrote down a couple of things while <unk> was talking.

Answering that with my answer your question with also my shareholder had on.

It's been excellent capital allocation.

It was a great deal, which added a significant leg of the stool. The business has been doing better than we expected.

And really showed the benefits and synergies and we can also unlock together with an amazing team that they have been.

Doing better than we expected and the third thing is they are winning in the market and in a tough market.

You go through these cycles and it's worse when I was just in the mortgage business. In this type of business would you look you want to have broad coverage because it makes a lot of being easier in a single product is really hard.

And so there's a benefit for them being part of Austin, There's a benefit of us being part of them and.

And that is helping us to win in the market right now and that's whether those and you come back even stronger and as you keep gaining market share that's the whole plan.

Yeah.

Super Super helpful and very.

Very thorough thank you for that just one very quick one.

On that capital allocation priority that you just talk to that so congrats on on cleaning up the balance sheet looks a lot stronger now a little surprised that you guys have not already announced that buyback just considering how the stock has been acting just wondering if you can maybe expand on that a little bit and what what are your capital prior capital allocation priorities short term.

Yeah.

It wouldn't be it would be a little premature to talk I've got a board meeting next week and where.

We're going we just.

We're going to present, our strategy of the board and and that'll be one of our discussion patterns yeah.

If it's strep.

R.

We've been limited in terms of flexibility just due to the prior credits very mature in in a covenant setup with that obviously are leopard profile blue.

Blew up a little bit just given the trail EBITDA profile during COVID-19, but clearly we're addressing that piece of it and we've also.

In terms of the new Covenant, we've moved from Ah.

Of a total leverage test the one that just factors and are secured borrowing of which there there's very little right now.

So we'll have a whole lot more flexibility to put that newfound capital to work.

On a on a go forward basis.

Excellent. Thank you very much.

Your next question comes from the line of Jam can John Camp milk I'm sleeping inks your lines open.

Hey, guys good morning.

Hey, John John Hey, So you guys called out the F&B Rev. I mean, obviously, a pretty good spike I think 50% sequentially. I know you guys don't break out that exact amount anymore, but.

I might be off course here I just want to check on this but if I run right what I've got for quarterly F&B revenue. It's implying that you guys are kind of tracking back to that prepandemic level. So first is that about right and then secondly.

You talked to that cough here, it's business as a main driver just remind us again, what that is and kind of how you feel about F&B trajectory from here.

Yeah, Hey, Jonathan strength.

So you're right so profitability in that business was actually back to back to a better than freak over levels that we saw in 19.

The concierge piece of it that we're referring to is kind of bifurcation of the model. So we bought snap cap back in 2017.

As we were trying to build our own sort of the Lendingtree version of a small business lending exchange, we acquire the snap cap business, which was somewhat differentiated from the existing model of that it's just a much higher touch model right. That's the concierge piece of it where.

You've got pretty knowledgeable.

Sales for his loan brokers, who engage in a meaningful way with the small business owner to consult with them understand their business understand their needs and and place them in a in a good product with our network of lenders and so that beats a in particular has been has been particularly strong <expletive>.

Kind of lending has come back and small business, obviously small businesses were hit incredibly hard to lending to small businesses was hit incredibly hard and the teeth of the pandemic, but assets starting to loosen up.

Lot of them out there and so we're pretty bullish on on the trends in that business going into next year.

John the only other thing I would add is.

Imagine that as a stand alone.

Without getting the benefits of being part of lending tree and seeing the same product people and working off the same technology and also being able to leverage the same brand on all of our all of our SCO reach companywide and.

Building that pretty much from scratch inside of here was pretty remarkable.

We hope it continues that you will yeah.

That was that's one of the last Internet when lending types, if you will to come online.

And it's here in overtime will get more automated.

Okay. Thanks, guys and then also.

I call out at F&B cause it sounds like it's kind of a hidden could driver obviously within consumer you're seeing some momentum built there also on you know in homes. If you back out the mortgage revenue to get the kind of I guess non refi purchase I would imagine most of that as he locked but that was about $20 million in the quarter I think the last.

Time, you guys were at that level was three Q18. So it seems like it seems to me that things are going exceptionally well, they're kind of and below the surface. So if you can maybe call out.

Drivers there and how do you feel about that revenue trajectory near term.

So home equity going way back in time was.

Was the most profitable.

Product.

Because it had the highest conversion rates because the lenders were highly highly automated.

That changed and.

In the nineties in the two thousands obviously and slowly but surely lenders are creeping back into that market and it's really as simple as you get you get more lenders in.

And that can kick off the flywheel because you can then go start actually advertising as opposed to just picking up draft traffic, which means you get to go back to your advertising or to your lenders and say do you want more and.

<unk>.

I would say and lenders or lenders are getting it so.

I am not staring at number of lender account sitting in here in front of me. It wouldn't surprise me to see that we probably added lenders.

And or at least we added we added coverage in the Monetizations up.

And I would expect that too.

To continue.

The other day actually and here's another.

Strong effect to that.

You shouldn't Miss.

Many lenders from our capacity management standpoint.

C purchase refinance and home equity as just three flavors of a home loan.

And so in an environment like last year, where you've got all the refi you want coming into your own shop, you don't do as much purchase you don't buy as much from Lendingtree as we all know.

And you don't even turn on your home equity loan officers as the market has tightened up for lenders significantly.

In terms of their volumes, that's a very significant reason why you're seeing the revenue per.

Lead go up so much there because the demand is very I, it's just like they're bidding up the value of.

Lendingtree leads so that they can all get more right.

And and so that effective happened as well. So you are seeing lenders open up filters.

To just get more volume in the door too, but I. So it does not always a direct correlation up but.

That as well too, but so it's both substance and it's that replacement.

That's a great color thanks, guys.

Okay sure.

Hearing next question comes from the line of Jamie fragment from Susquehanna things open.

Hi.

I just wanted to get your perspective made for Trent.

Q4 margin commentary because it is a little bit lower I realize you have call outs about seasonality et cetera, but.

What what's going into the queue for margin commentary.

Yeah, I mean, so we do expect some pressure on Vms.

Predominantly related to insurance.

From an EBITDA margin standpoint, obviously you are just.

Are <unk>.

Fixed cost structure is it's not grow and but it's been about the same size on a reduced base of revenue that decline in revenue sequentially is largely driven by the trend that we're seeing an insurance, but we also generally take it pretty conservative stance with regard to our other businesses in the fourth quarter.

I mean, there is a real seasonal component to it where.

Consumers are just less focused on their finances cost maybe it gets more expensive right and so.

A quarter typically a little bit weak for us so I think I.

I wouldn't read too much into the EBITDA margin dynamics in queue for those should bounce back nicely with the rest of the business.

Hit the ground running in Q1 and typically the only thing I would add is.

Typically it.

The seasonality effect in Trenton alluded to all of it for Q4, but it's also like consumers are focused on I would say there is focused on spending in Q4, and then Q1, they got to clean up their finances.

And so you typically see <unk>.

Stronger than average of the year, Q1s and weaker than than the other quarters in Q4, and then as trends.

Keep your expenses the same and.

And there you go.

And we're not.

And we're not standing still we.

We can forecast this business fairly fairly well and.

We want to put up the best number as we can.

So is there.

Is.

There any structural reason.

That.

The margins.

Can't return to their previous levels at some point like the previous high levels.

No really.

No reason at all that it can no I.

I would.

<unk>.

We all want to be back there.

That that I think is a class best.

The only reason they wouldn't be there is because we had some amazing thing and we'd tell you about it ends and we'd call it out but.

And I think you'll be I think you guys, who I think people will be pleased with what we show you in January but.

We've got a lot of exciting stuff going on but yeah. I think there's things when you look under the Hood and you look at the individual dmm's and the revenue per leads and the cost of customer acquisition and even.

Winning.

Three two game and insurance is an exciting but it's still it's still a win.

And coming out of Covid.

I feel really really very.

Very good about how our positions.

JV, it's J D. The only thing I would add is if you look at the momentum in the consumer businesses, which as we know carry in aggregate higher margins for us.

We were on our way we were on our way in aggregate margin to to our former margin profile and over time as we've talked about.

As we get more organic or near organic traffic through my LT. The margins profile of the business should be higher so but for insurance, which we forecasted as we've talked about for all the reasons that we talked about at the outset of the call but for insurance. The margins are absolutely recovery just as the mix shift towards consumer helps us out.

So we've talked about personal loans credit card was operating at a much lower margin, it's still not back to optimal margin, but it's improving so every consumer business.

Has very good momentum and as I said the trend before the call. There's some very good stuff going on in consumer. It's just unfortunately as we look at the remainder of the year, we have to be conscious of.

Of the macro trend in insurance, we think it's temporary.

But it's got away on Mark on margins in the short run.

Yeah, that's a great way to think about it. Thank you for the structure.

Sure.

Your next question comes from the Lane of Jed Kennedy from opening high menu Laytonsville thing.

A great. Thanks for taking my question.

Just a couple.

Credit cards in 2019, you did over $200 million in revenue is there anything structural are competitive on why that business can't return to those 2019 level sand the back half of next year into twenty-three.

So.

I'll comment.

Generally speaking.

About just how credit card works and it's going to be it sound very very similar.

And it's supply and demand if you think of us as.

As credit card companies as advertisers and us selling advertising and.

And the price of that advertising fluctuates.

If their demand is going up and if their demand is up for high margin products for them. For example, like a balance transfers so when balance transfers are up.

Those are high converting.

And therefore, they pay a lot for those leads if you will just.

Just like we pay goodwill out for those clicks.

And there's no reason it can't return to something like that or even better. However, the thing that I would also focus on this business in the other ones and we'll talk more about this in January and it's not even so much about the individual alone types, it's really about the fact that.

The initiatives, we've got with credit card underway to give you.

Real offers.

That you can actually go click a button and get as opposed to clicking around and clicking out to every individual hearts website. We think we've got something that will be differentiated in the market.

And that that plus the Lendingtree brand then you could get the kick into a whole new flywheel. So this big in the business can be as.

It can be a lot bigger, but you needed you need another monetization leg to get back there. So that you can start advertising much more significantly than we think we can get that through a better experience.

Got it and then I.

I guess when I look at your financials your variable marketing profit.

Is probably 90, probably end up this year about 95% of 2019. However, your operating expenses are up about 25%.

Over over the last two years, so how should we think about.

Getting better leverage off your operating expenses.

Yeah Jed.

It's only fair point of view, if you think about where we've been over the last two years right. We made the very conscious decision in the teeth of the crisis did not take any drastic cost cutting measures at a time when our revenue declined as much as 30, 35% and it's been steadily recovering sense. That's why we made that conscious decision to not take those cost cutting measures was because.

We felt like the businesses would come back and we're saying that they have.

At the same time right. We further invested in very discrete initiatives and best that we're placing.

That add to the Opex that we think are going to bear fruit.

Next year and in the years to come you are not quite seeing those best payoff yet.

Oh look I think we pushed our chips in on a fair number of those things that we believe in that we expect will add value next year, we don't have to do a whole lot more of that going forward into next year right and so as the business continues to make progress and recover you'll start to see some of that operating leverage show up.

Thank you.

Your next question comes from the line of May gone down from North Glenn Securities Sterling's open.

Hey, Thanks, guys Uhm.

Quick follow up on the insurance business.

Sect.

All of Q3 or just like the second half.

And then secondly.

Can you kind of bridge at a high level three Q adjusted EBITDA at a fork you adjusted EBITDA.

Dropping from a little over $40 million to maybe 20 million or so at.

At the mid point and it sounds like it's insurance and mortgage but could you kind of rank the segments, which ones are kind of being.

Which ones are the weakest.

Yes, yes.

Yeah, Mike.

In terms of sort of timing of impacts that we've seen an insurance look I think we've started to see the writing on the wall.

In late Q2, right on it progress throughout the third quarter and it's unfortunately, only gotten worse, so it's been sort of Ah.

We've been managing it in real time, and so our expectation for the fourth quarter as I think appropriately conservative based on kind of a trend that we've been seeing throughout the last three or four months.

We're certainly not up not alone in experiencing some of those trends in terms of just the walk from.

From Q3 to queue for obviously the biggest driver sequentially is going to be insurance.

But we do the guidance does allow for kind of a modest pullback sequentially in both.

Hello, Ma'am consumer obviously, we're not getting the benefit of the students business to the same degree.

In queue for that we got in Q3, that's a part of it.

So so.

Think about the decline from theater to keyboard and both home and consumer <expletive>.

Modest I noticed a bit more pronounced than insurance for all the reasons that we talked about and the way I would characterize queue for again like this is.

And it's back to just and I love unpack and each loan type.

But at the end of the day Q4 hits everything almost the same on demand on the supply side, where we're going out and buying ads our customer acquisition costs are going up it's costing us more money to get customers in the front door in queue for because the media markets inflate during.

Q4, and it's harder to buy advertising so the price of advertising goes up in Q4, and when consumers come to the site. There are less interested in borrowing so they don't convert into customers as much. So the big our customer acquisition costs go up and also then the flip side their lender demand.

Is going down in queue for.

For all the reasons are trained talked about as as late as it used to be in the mortgage companies take a couple of weeks off at the end of the year.

And so if you have lower demand and higher customer acquisition cost that that this is the you operate the marketplace at it's optimal profitable level and that's what it is and that's what it is in queue for them than that lender demand comes back in Q1, and the customer acquisition costs go down in Q1.

And that's why you typically have a very good Q1.

But the only thing I would add is.

Try to give you the bridge there and you said, which segments are weakest.

Kind of goes away in the fourth quarter every year.

Insurance is the only one that has weakness the others are seasonal.

Seasonal declines from Q3 to queue for so.

Consumer we see really good grades so.

So it's really it's mostly mostly insurance it's affecting it for sure.

Got it and maybe just lastly at a high level you guys have been.

Next thing a lot.

Over the last roughly one year.

Hiring a lot.

The tail end of that wave or do you see that continuing.

For a bunch of quarters going forward. If you could kinda just help us think about that at a high level.

I'll answer and then.

I think trend now because we are at the tail end of that wave and.

And feel very good about our.

We're at the end of it.

Yeah, I mean, I think it's similar to to the entered the Judds question right. We've.

We have continued to make for a number of investments against very discrete initiatives the Medicare Bill.

Buildout has been a big part of that what we're doing around the agency side and and property and casualty of insurance as well.

Those are somewhat headcount intensive build out.

But we feel like we're in a good place and yet we're absolutely at the tail end of that you you should expect our fixed cost structure next year to.

Remained pretty stable, there's not a lot of expected growth in that and then we don't feel like we need it to achieve the type of growth and we expect in the business and in my.

In my notes I mentioned.

The Lendingtree next initiatives, if you think about the business between marketplace and next.

A lot of those investments over the past several years and product have gone to continue to build that product out and the monetization continues to improve their as we develop new customer experiences there.

That comes without today in advertising expense and also benefits back with the marketplace as well and we've got some really interesting initiatives there.

And I've made some great hires in that area and.

Those are it's still early days and that but.

That's where the investments some.

Decent amount of gone and.

And I think we're going to build some really great products.

Thanks for the color guys.

Hi, again, everyone. If you would like to ask a question just press is Taiwan and your telephone keypad.

The next question comes spend the line at least on that down from GP morning January 19th the whole thing.

Good morning, and thanks for taking my questions today.

First question for you would be.

Around the partial sale last stash that you mentioned in your Shanholtzer letter.

I was curious if that's really just sort of and liquidity forest or is that <unk>.

<unk> and decadent asserted that broader evolution and you're thinking around any.

Yeah, I could take the casualties of that data and that's in some color as well and I think.

We've seen evaluation.

Evaluation of that company and of our position in it grow endlessly over the course of the last year and a half.

We were presented with an opportunity to monetize some some portion of it we ended up selling about 20% of our position just north of 20% of our position.

Sort of a suicide transaction.

With some of their existing investors and so it was it was a good opportunity for us to.

Take some of our chips off the table, but some cash on the balance sheet at the same time, we still own.

A pretty sizeable position in that business and we like the company and where it's headed but we we were able to put $46 million cash on the balance sheet, we still.

Retain a position that at the same valuation is worth about $160 million and so it just seemed like an awkward opportunistic transaction in a way for us to monetize some of that investment that's increased quite a bit in value since we've been Ah.

Melissa the only thing I would add we we're big fans of the team it's dash.

Our ownership or residual ownership posted a sale in no way changes our ability to work with them.

Which is whenever we make a.

We're not adventure investor.

We obviously have a return here that is a venture like return.

We got to consider when we invested we invested in February of 20 on the precipice of Covid.

And.

We look forward to continuing to work with the company, but we are continually looking at capital allocation and so when you consider.

The totality, what we're trying to achieve and the questions were asked earlier regarding our balance sheet. This was something that we thought it was just responsible to add to our balance sheet.

And it does not change the operational focus now from and it had a perspective.

As an acquisitive company, we've looked at a lot of things over the last year, we in light of in light of.

Where valuations are and in light of.

In light of our balance sheet, we've been very very disciplined over the last year, but we do look at things that will be investments.

Because.

They are.

They are they are going to be investments in companies that we can partner with right. That's the basic.

Theory.

It's something where us having aligned interests helps us advanced something from a partnership perspective, we're absolutely willing to invest in fact, we're looking at at a smaller one right now.

That's not our focus our focus from M&A perspective is strategic acquisitions that can drive growth. The good news for US is the acquisitions that we've made theirs.

There is no great urgency to add.

To the portfolio businesses right now we can continue to grow really nicely and the verticals we're in.

But it's we've got a great return, we decided to monetize 20% of it and we will continue to work with that.

It's not it doesn't change the way we approach it it just shows us that we can do both.

Okay understanding.

Quite helpful. Thank you.

You know.

Just as a follow up question going back to sort of think pre COVID-19 or just the infection is jose.

Okay.

Okay clients to provide for your guidance.

It really cool to be capable certainty inherit any environment as a result of the time on that.

And.

We sort of interpretive status.

The range of outcomes.

Anyway.

As I listened to your commentary day and time in about the drivers.

Okay.

Both town Lucky if you'd like to visit there already has improved.

Sort of sequentially and he's progressed quarter over quarter can you.

Feel like you are getting back to a place where you do you have a better visibility you can communicate.

Longer term expectations American.

In short, yes, I mean, I think we certainly are getting increased.

Increasing confidence around our ability to predict about the the obviously you can always be surprised by macro factors or otherwise obviously, we've been got a little bit off guard by by what we've seen in insurance over the back half of this year.

But yes, as we look out to Investor day next year, we would really like to be in a position to.

But some put some guard rails around what 22 looks like and perhaps even further beyond and.

And I would only add in the last.

20, plus years as a public company last.

The last couple of years are really the only years, we haven't done a full year guidance. So it's something we are looking forward to get back to you as soon as soon as we can give.

Information.

We want you to have everything we have short of competitive information that's going out, but we want you to have all the data we have good bad and indifferent.

And then we will tell you what we're going to do about it if it's wrong.

Great question.

Okay. Thank you great to talk to you.

Percentage day, no further questions over the phone please continue.

Well. Thank you very much I'll, just wrap up here very quickly.

We appreciate everybody's time today, and I must say that in the last 20 plus years I am extremely optimistic about our business.

The last two years of no doubt been a lot of work and and hasn't put the.

For that we would have liked and at the same time, we're winning in the market and I see it on both the marketplace side and on and on the next side and in the insurance business and I see it and how well we're marketing across all of those businesses as well and we're still helping millions of consumers.

And we are very strong relationships because our partnerships work.

I am really proud of our team.

Thrilled with the product work.

I know, it's been an investment and I know you bought your that's a little bit of Trust me.

Trust us.

And I can tell you that while I don't like.

Having to come in with.

Weaker numbers and we would like to be put knob.

It's going to be worth it and we didn't.

We have always been a very very disciplined company and we were even around product and Tac as we grew and.

And it's going to pay off next year and begin to.

Not only with higher monetization, but also with better consumer experiences and that's going to fall to the company as the flywheel keeps spinning.

And then the last thing is that all of that works because of the Lendingtree brand gives us a distinct marketing advantage in a distinct marketed monetization advantage and the Lendingtree brand remains strong and performs extraordinarily well.

On both the television and across the Internet and with that we can continue to leverage that going forward. Thank you all very much and we'll talk to you next quarter.

This concludes today's conference call and thank you for your reply anticipation you may now disconnect.

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