LendingTree Inc., the Charlotte-based operator of LendingTree.com, announced on Thursday that its revenue jumped 28.7 percent in the fourth quarter and earnings beat analyst estimates, according to a filing with the Securities and Exchange Commission.
The online loan marketplace reported fourth-quarter revenue of $100.8 million, compared to $78.3 million in the same period a year ago.
LendingTree also reported adjusted earnings per share of 87 cents, above analyst estimates of 78 cents.
“Despite the typical seasonal headwinds in the fourth quarter, we notched record levels of revenue,” said Gabe Dalporto, LendingTree’s chief financial officer, in a statement. “Our mortgage business returned to sequential revenue growth in the quarter and is behaving as expected as interest rates have risen.”
The company reported fourth-quarter net income of $7.3 million, down nearly 71 percent from LendingTree’s fourth quarter in 2015, when the company received a $23.9 million income tax benefit.
Revenue from LendingTree’s non-mortgage products grew 45 percent in the fourth quarter to $45.4 million. These include credit cards as well as personal, student and business loans. Meanwhile, revenue from its mortgage products increased 18 percent percent in the quarter to $55.4 million.
LendingTree announced in November it had acquired Delaware-based Iron Horse Holdings, which does business under the name CompareCards.com, for $85 million in cash. CompareCards operates an online credit card comparison platform.
“Our acquisition of CompareCards in November gives us the scale to compete and gain market share in the largest category for online comparison shopping in financial services,” Dalporto said.
Shares of LendingTree stock were up nearly 7 percent in pre-market trading on Thursday to $119.54, following a $112.15 close on Wednesday.
LendingTree’s online marketplace connects consumers with a network of lenders and creditors, allowing consumers to compare offerings across a full suite of providers. Since its inception in 1996, LendingTree has assisted with more than 65 million loan requests.
The filing can be found here.
