Why did TREE outperform forecasts in 2024?

LendingTree Inc. (TREE) outperformed forecasts in 2024 due to several key factors:

1. **Robust Revenue Growth**: LendingTree experienced significant growth in key segments, including Personal Loans, Auto Loans, Homeowners Insurance, and Home Equity. Personal Loans and Auto Loans revenue grew by 21% year-over-year in Q4 2024. The Insurance segment was particularly strong, with homeowners insurance revenue up 175% year-over-year. This diversified growth across segments contributed to the company's overall outperformance.
2. **Strong Financial Performance**: The company reported adjusted EBITDA of $32 million in Q4 2024, surpassing forecasts. Net leverage improved significantly, ending the year at 3.5 times trailing adjusted EBITDA, indicating a stronger financial position. The adjusted net income per share was $1.16, significantly higher than the estimated EPS of -0.51.
3. **Strategic Investments and Market Position**: LendingTree's strategic investments in growth areas, such as home equity and small business, paid off with respective year-over-year revenue growths of 48% and 45%. The company's market position in the insurance segment, particularly in homeowners insurance, proved advantageous as the segment experienced substantial growth.

In summary, LendingTree's outperformance in 2024 can be attributed to its robust revenue growth across key segments, strong financial performance, and strategic investments that positioned it well in the market.