Growth was buoyed by its mortgage business which outperformed the broader industry, CEO says
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Online loan marketplace operator LendingTree saw its consolidated revenue rise to a record $181m during the first this year – up 37% from the same period in 2017, according to a financial statement released Thursday.
The growth was buoyed by its mortgage business, which outperformed the broader industry, LendingTree Chairperson and CEO Doug Lebda said. January to March revenue from mortgage products stood at $73.5m, up 17% from the first three months of 2017. In particular, purchase and refinance revenues went up 13% and 18%, respectively. Citing the Mortgage Bankers Association, LendingTree said originations industry-wide were projected down 4% in the comparable period.
"Our performance in mortgage has been terrific in the face of a tougher macro environment,” LendingTree CFO J.D. Moriarty said. He cited data from Black Knight, which indicate that the number of borrowers who could benefit from refinancing their mortgage is down 37% since the end of last year and at the lowest level since 2008.
“That said, our growth is a testament to the value we deliver for lenders as the industry gets much more competitive. And thanks to the ongoing diversification of our revenue streams and the performance of our non-mortgage products, the business can continue to thrive even as interest rates are expected to move higher,” Moriarty added.
Meanwhile, revenue from non-mortgage products rose by 55% to reach $107.6m. “Our non-mortgage businesses continued to produce exceptional growth and we're encouraged by the dialogue with banks and lenders across many of our non-mortgage categories,” Lebda said.
Looking ahead, the firm expects full-year revenue at $770m to %790m. “The team is laser-focused on driving deeper market penetration as we build our momentum, positioning us perfectly to achieve our stated goals for the year," Lebda said.
