Despite strong third-quarter performance and an increase in full-year 2024 revenue projection, LendingTree (TREE, Financials) shares fell by double digits during Friday's session.
Above the previous $830 million to $870 million range and surpassing the average analyst estimate of $861.6 million, the North Carolina-based online financial platform now projects its 2024 revenue at $870 million to $880 million. Comparatively to a previous estimate of $280 million to $300 million, the company forecasts a variable marketing margin of $287 million to $292 million for the year. Versus the previous range of $85 million to $95 million, adjusted EBITDA guidance has been tightened to $92 million to $95 million.
LendingTree projects income for Q4 between $231 million and $241 million, a variable marketing margin of $69 million to $74 million, and modified EBITDA falling within $20 million to $30 million range.
Jason Bengel, the chief financial officer, credited continuous growth possibilities and cost-control initiatives for the better guidance; he also said that the company's stronger balance sheet might soon let for capital structure optimization to lower interest expenses.
