LendingTree (NASDAQ:TREE) shares dropped more than 27% to around $17 per share Tuesday after the company lowered full-year revenue guidance, missing expectations by a large margin.
In the first quarter, the online lending marketplace reported Q1 EPS of $0.25, $0.35 better than the analyst estimate of a loss per share of $0.10. However, revenue for the quarter came in at $200.5 million versus the consensus estimate of $207.03M.
The company's first-quarter revenue was significantly impacted by Home segment revenue declining 57% YoY, while Consumer segment revenue declined 21% and Insurance segment revenue fell 4%.
"During the first quarter we completed a strategic expense reduction that impacted 13% of our workforce. The plan targeted parts of our business that are more capital intensive, as well as those areas where the revenue outlook has become less certain in light of the challenging economic environment," said Doug Lebda, chairman and CEO of LendingTree.
Looking ahead, the company said it now sees full-year 2023 revenue from $760M to $800M, well below the prior range of $935M to $985M. It was also significantly lower than the consensus estimate of $945M.
LendingTree sees Q2 2023 revenue from $190M to $200M.