Connect with us

Technology

ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2024

Published

on

TAIPEI, Oct. 31, 2024 /PRNewswire/ — ASE Technology Holding Co., Ltd. (TWSE: 3711, NYSE: ASX) (“We”, “ASEH”, or the “Company”), the leading provider of semiconductor assembly and testing services (“ATM”) and the provider of electronic manufacturing services (“EMS”), today reported its unaudited net revenues[1] of NT$160,105 million for 3Q24, up by 3.9% year-over-year and up by 14.2% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT9,666 million, up from NT$8,776 million in 3Q23 and up from NT$7,778 million in 2Q24.  Basic earnings per share for the quarter were NT$2.24 (or US$0.138 per ADS), compared to NT$2.04 for 3Q23 and NT$1.80 for 2Q24. Diluted earnings per share for the quarter were NT$2.17 (or US$0.134 per ADS), compared to NT$2.00 for 3Q23 and NT$1.75 for 2Q24.

As of September 30, 2024, we have completed the PPA and have retrospectively adjusted the consolidated financial results for prior period.

RESULTS OF OPERATIONS

3Q24 Results Highlights – Consolidated

Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 43%, 9%, 47%, and 1% of the total net revenues for the quarter, respectively.Cost of revenues was NT$133,673 million for the quarter, up from NT$117,184 million in 2Q24.Raw material cost totaled NT$84,658 million for the quarter, representing 53% of the total net revenues.Labor cost totaled NT$16,468 million for the quarter, representing 10% of the total net revenues.Depreciation, amortization and rental expenses totaled NT$13,647 million for the quarter.Gross margin increased by 0.1 percentage points to 16.5% in 3Q24 from 16.4% in 2Q24.Operating margin was 7.2% in 3Q24, compared to 6.4% in 2Q24.In terms of non-operating items:Net interest expense was NT$1,291 million.Net foreign exchange gain was NT$1,890 million, primarily attributable to the depreciation of the U.S. dollar against the New Taiwan dollar.Net loss on valuation of financial assets and liabilities was NT$943 million.Net gain on equity-method investments was NT$485 million.Other net non-operating income was NT$643 million, primarily attributable to miscellaneous income.
Total non-operating income and expenses for the quarter was NT$784 million.Income before tax was NT$12,260 million in 3Q24, compared to NT$10,105 million in 2Q24. We recorded income tax expenses of NT$2,054 million for the quarter, compared to NT$1,950 million in 2Q24.Net income attributable to shareholders of the parent was NT$9,666 million in 3Q24, compared to NT$8,776 million in 3Q23 and NT$7,778 million in 2Q24.Our total number of shares outstanding at the end of the quarter was 4,412,064,337, including treasury stock owned by our subsidiaries in 3Q24. Our 3Q24 basic earnings per share of NT$2.24 (or US$0.138 per ADS) were based on 4,321,735,473 weighted average numbers of shares outstanding in 3Q24. Our 3Q24 diluted earnings per share of NT$2.17 (or US$0.134 per ADS) were based on 4,391,466,234 weighted average number of shares outstanding in 3Q24.

3Q24 Results Highlights – ATM

Net revenues were NT$85,790 million for the quarter, up by 2.5% year-over-year and up by 10.3% sequentially.Cost of revenues was NT$65,989 million for the quarter, up by 1.4% year-over-year and up by 8.9% sequentially.Raw material cost totaled NT$24,177 million for the quarter, representing 28% of the total net revenues.Labor cost totaled NT$13,309 million for the quarter, representing 16% of the total net revenues.Depreciation, amortization and rental expenses totaled NT$12,163 million for the quarter.Gross margin increased by 1.0 percentage points to 23.1% in 3Q24 from 22.1% in 2Q24.Operating margin was 10.8% in 3Q24, compared to 9.3% in 2Q24.

3Q24 Results Highlights – EMS

Net revenues were NT$75,384 million, up by 6.2% year-over-year and up by 19.8% sequentially.Cost of revenues for the quarter was NT$68,627 million, up by 6.4% year-over-year and up by 20.6% sequentially.Raw material cost totaled NT$60,912 million for the quarter, representing 81% of the total net revenues.Labor cost totaled NT$3,051 million for the quarter, representing 4% of the total net revenues.Depreciation, amortization and rental expenses totaled NT$1,219 million for the quarter.Gross margin decreased by 0.6 percentage points to 9.0% in 3Q24 from 9.6% in 2Q24.Operating margin was 3.3% in 3Q24, compared to 3.1% in 2Q24.

LIQUIDITY AND CAPITAL RESOURCES

Capital expenditures in 3Q24 totaled US$603 million, of which US$312 million was used in packaging operations, US$274 million in testing operations, US$14 million in EMS operations and US$3 million in interconnect materials operations and others.Total unused credit lines amounted to NT$361,264 million as of September 30, 2024.Current ratio was 1.18 and net debt to equity ratio was 0.41 as of September 30, 2024.Total number of employees was 94,456 as of September 30, 2024, compared to 92,243 as of June 30, 2024.

BUSINESS REVIEW

Customers
ATM BASIS

Our five largest customers together accounted for approximately 46% of our total net revenues in 3Q24, compared to 45% in 2Q24. One customer accounted for more than 10% of our total net revenues in 3Q24.Our top 10 customers contributed 61% of our total net revenues in 3Q24, compared to 60% in 2Q24.Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues in 3Q24, compared to 30% in 2Q24.

EMS BASIS

Our five largest customers together accounted for approximately 72% of our total net revenues in 3Q24, compared to 67% in 2Q24. One customer accounted for more than 10% of our total net revenues in 3Q24.Our top 10 customers contributed 78% of our total net revenues in 3Q24, compared to 74% in 2Q24.

About ASE Technology Holding Co., Ltd.
ASEH is the leading provider of semiconductor manufacturing services in assembly and test. The Company develops and offers complete turnkey solutions covering front-end engineering test, wafer probing and final test, as well as packaging, materials and electronic manufacturing services through USI with superior technologies, breakthrough innovations, and advanced development programs. With advanced technological capabilities and a global presence spanning Taiwan, China, South Korea, Japan, Singapore, Malaysia, Philippines, Vietnam, Mexico, and Tunisia as well as the United States and Europe, ASEH has established a reputation for reliable, high quality products and services.

For more information, please visit our website at https://www.aseglobal.com.

Safe Harbor Notice
This press release contains “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People’s Republic of China; general economic and political conditions; the recent shift in United States trade policies; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including the 2023 Annual Report on Form 20-F filed on April 3, 2024.

Supplemental Financial Information
(Unaudited)

Consolidated Operations

3Q24

2Q24

3Q23

EBITDA[2] (NT$ million)

28,621

26,127

27,822

ATM Operations

3Q24

2Q24

3Q23

Net Revenues (NT$ million)

85,790

77,813

83,684

Revenues by Application

Communication

50 %

49 %

52 %

Computing

18 %

19 %

19 %

Automotive, Consumer & Others

32 %

32 %

29 %

Revenues by Type

Bumping, Flip Chip, WLP & SiP

45 %

44 %

44 %

Wirebonding

29 %

31 %

32 %

Others

8 %

7 %

8 %

Testing

16 %

16 %

15 %

Material

2 %

2 %

1 %

Capacity & EBITDA

CapEx[3] (US$ million)

588

374

210

EBITDA[2] (NT$ million)

24,186

22,205

23,117

Number of Wirebonders

25,373

25,154

26,215

Number of Testers

5,966

5,676

5,510

EMS Operations

3Q24

2Q24

3Q23

Net Revenues (NT$ million)

75,384

62,907

70,970

Revenues by Application

Communication

34 %

33 %

34 %

Computing

9 %

11 %

8 %

Consumer

36 %

29 %

37 %

Industrial

11 %

13 %

12 %

Automotive

9 %

11 %

7 %

Others

1 %

3 %

2 %

Capacity 

CapEx[3] (US$ million)

14

31

28

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income Data
(In NT$ million, except per share data)
(Unaudited)

For the three months ended

For the nine months ended

Sep. 30

2024

Jun. 30 2024

(Retrospectively Adjusted)

Sep. 30

2023

Sep. 30

2024

Sep. 30

2023

Net revenues

Packaging

69,154

62,834

68,709

191,447

190,584

Testing

14,124

12,623

12,819

38,848

36,518

EMS

74,871

62,853

70,948

197,050

189,063

Others

1,956

1,928

1,691

5,801

5,168

Total net revenues

160,105

140,238

154,167

433,146

421,333

Cost of revenues

(133,673)

(117,184)

(129,251)

(362,839)

(355,337)

Gross profit

26,432

23,054

24,916

70,307

65,996

Operating expenses

Research and development

(7,439)

(7,106)

(6,759)

(21,154)

(18,549)

Selling, general and administrative

(7,517)

(6,939)

(6,752)

(21,191)

(18,934)

Total operating expenses

(14,956)

(14,045)

(13,511)

(42,345)

(37,483)

Operating income

11,476

9,009

11,405

27,962

28,513

Net non-operating income and expenses

Interest expense – net

(1,291)

(1,158)

(1,247)

(3,557)

(3,424)

Foreign exchange gain (loss) – net

1,890

(1,420)

(2,090)

(2,748)

(2,733)

Gain (Loss) on valuation of financial assets and liabilities – net

(943)

2,664

2,820

5,819

4,837

Gain on equity-method investments – net

485

459

656

1,001

970

Others – net

643

551

708

1,700

2,070

Total non-operating income and expenses

784

1,096

847

2,215

1,720

Income before tax

12,260

10,105

12,252

30,177

30,233

Income tax expense

(2,054)

(1,950)

(2,890)

(5,897)

(6,582)

Income from operations and before non-controlling interests

10,206

8,155

9,362

24,280

23,651

Non-controlling interests

(540)

(377)

(586)

(1,176)

(1,318)

Net income attributable to shareholders of the parent

9,666

7,778

8,776

23,104

22,333

Per share data:

Earnings per share

– Basic

NT$2.24

NT$1.80

NT$2.04

NT$5.35

NT$5.20

– Diluted

NT$2.17

NT$1.75

NT$2.00

NT$5.17

NT$5.05

Earnings per equivalent ADS

– Basic

US$0.138

US$0.112

US$0.130

US$0.335

US$0.338

– Diluted

US$0.134

US$0.109

US$0.127

US$0.324

US$0.328

Number of weighted average shares used in diluted EPS calculation ( in thousand shares)

4,391,465

4,383,325

4,347,752

4,385,913

4,346,129

FX (NTD/USD)

32.31

32.23

31.45

31.95

30.81

ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income Data
(In NT$ million) 
(Unaudited)

For the three months ended

For the nine months ended

Sep. 30

2024

Jun. 30

 2024

Sep. 30

2023

Sep. 30

2024

Sep. 30

2023

Net revenues:

Packaging

70,290

63,838

69,731

194,516

193,108

Testing

14,124

12,623

12,819

38,848

36,518

Direct Material

1,295

1,264

1,098

3,898

3,369

Others

81

88

36

250

116

Total net revenues

85,790

77,813

83,684

237,512

233,111

Cost of revenues

(65,989)

(60,612)

(65,094)

(184,952)

(183,611)

Gross profit

19,801

17,201

18,590

52,560

49,500

Operating expenses:

Research and development

(5,773)

(5,483)

(5,344)

(16,392)

(14,361)

Selling, general and administrative

(4,803)

(4,464)

(4,426)

(13,612)

(12,505)

Total operating expenses

(10,576)

(9,947)

(9,770)

(30,004)

(26,866)

Operating income

9,225

7,254

8,820

22,556

22,634

ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income Data
(In NT$ million) 
(Unaudited)

For the three months ended

For the nine months ended

Sep. 30

2024

Jun. 30 2024

(Retrospectively Adjusted)

Sep. 30

2023

Sep. 30

2024

Sep. 30

2023

Net revenues

Total net revenues

75,384

62,907

70,970

197,656

189,127

Cost of revenues

(68,627)

(56,882)

(64,500)

(179,422)

(172,451)

Gross profit

6,757

6,025

6,470

18,234

16,676

Operating expenses

Research and development

(1,668)

(1,668)

(1,453)

(4,869)

(4,304)

Selling, general and administrative

(2,636)

(2,415)

(2,250)

(7,360)

(6,191)

Total operating expenses

(4,304)

(4,083)

(3,703)

(12,229)

(10,495)

Operating income

2,453

1,942

2,767

6,005

6,181

ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ million)
(Unaudited)

As of Sep. 30, 2024

As of Jun. 30, 2024

(Retrospectively Adjusted)

Current assets

Cash and cash equivalents

71,711

66,173

Financial assets – current

6,643

9,162

Trade receivables

114,061

102,361

Inventories

68,986

63,495

Others

17,364

29,144

Total current assets

278,765

270,335

Financial assets – non-current & Investments – equity -method

42,300

30,887

Property, plant and equipment

283,447

271,870

Right-of-use assets

11,499

11,292

Intangible assets

68,038

68,316

Others

30,510

30,291

Total assets

714,559

682,991

Current liabilities

Short-term borrowings[4]

56,726

51,065

Current portion of bonds payable & Current portion of  long-term borrowings

23,531

18,655

Trade payables

82,595

70,906

Others

72,830

89,495

Total current liabilities

235,682

230,121

Bonds payable

17,073

21,976

Long-term borrowings

108,003

84,414

Other liabilities

22,748

23,053

Total liabilities

383,506

359,564

Equity attributable to shareholders of the parent

309,399

302,323

Non-controlling interests

21,654

21,104

Total liabilities & shareholders’ equity

714,559

682,991

Current ratio

1.18

1.17

Net debt to equity ratio

0.41

0.34

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow Data
(In NT$ million)
(Unaudited)

        For the three months ended

For the nine months ended

Sep. 30

2024

Jun. 30 2024

(Retrospectively Adjusted)

Sep. 30

2023

Sep. 30

2024

Sep. 30

2023

Cash Flows from Operating Activities

Profit before income tax

12,260

10,105

12,252

30,177

30,233

Depreciation & amortization

15,037

14,813

14,568

44,449

43,495

Other operating activities items

(5,235)

(8,132)

(5,940)

(19,083)

(6,134)

Net cash generated from operating activities

22,062

16,786

20,880

55,543

67,594

Cash Flows from Investing Activities

Net payments for property, plant

and equipment

(19,769)

(14,786)

(14,471)

(47,068)

(41,824)

Other investment activities items

(2,593)

304

(151)

(5,284)

(2,021)

Net cash used in investing activities

(22,362)

(14,482)

(14,622)

(52,352)

(43,845)

Cash Flows from Financing Activities

Total net proceeds from (repayment of) borrowings and bonds

30,909

(12,330)

28,640

18,439

13,624

Dividends paid

(22,460)

(37,841)

(22,460)

(37,841)

Other financing activities items

(51)

(1,093)

(38)

(1,177)

(977)

Net cash generated from (used in) financing activities

8,398

(13,423)

(9,239)

(5,198)

(25,194)

Foreign currency exchange effect

(2,560)

2,187

6,443

6,434

6,478

Net increase (decrease) in cash

and cash equivalents

5,538

(8,932)

3,462

4,427

5,033

Cash and cash equivalents at the beginning of period

66,173

75,105

59,351

67,284

58,040

Cash and cash equivalents at the

end of period

71,711

66,173

62,813

71,711

63,073

Cash and cash equivalents in the consolidated balance sheet

71,711

66,173

62,812

71,711

62,812

Cash and cash equivalents included in disposal groups held for sale

1

261

 

[1] All financial information presented in this press release is unaudited, consolidated and prepared in accordance with Taiwan-IFRS (International Financial Reporting Standards as endorsed for use in the R.O.C.).  Such financial information is generated internally by us and has not been subjected to the same review and scrutiny, including internal auditing procedures and audit by our independent auditors, to which we subject our year-end audited consolidated financial statements, and may vary materially from the year-end audited consolidated financial information for the same period.  Any evaluation of the financial information presented in this press release should also take into account our published year-end audited consolidated financial statements and the notes to those statements.  In addition, the financial information presented is not necessarily indicative of our results of operations for any future period.

[2] EBITDA stands for net income or loss before interest, taxes, depreciation, amortization, impairment and investment gain or loss as well as other items.

[3] Capital expenditure excludes building construction costs.

[4] Short-term borrowings include short-term loans and bills payable.

 

Investor Relations Contact
ir@aseglobal.com
Tel: +886.2.6636.5678
https://www.aseglobal.com

View original content:https://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-its-unaudited-consolidated-financial-results-for-the-third-quarter-of-2024-302292377.html

SOURCE ASE Technology Holding Co., Ltd.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

Fathom Holdings’ Subsidiary, Verus Title, Appoints Industry Veteran Monica Schroeder as President and Promotes Penelope Vockel to Chief Operating Officer

Published

on

By

CARY, N.C., Oct. 31, 2024 /PRNewswire/ — Verus Title, a subsidiary of Fathom Holdings Inc. (Nasdaq: FTHM), a national, technology-driven real estate services platform, today announced the appointment of Monica Schroeder, an accomplished industry veteran, as President. Additionally, Penelope Vockel, previously Vice President for the Northeast and Midwest regions, has been promoted to Chief Operating Officer (COO).

Monica Schroeder

Before joining Verus Title, Schroeder led a national title agency for five years, demonstrating her expertise in scaling operations, maintaining compliance standards, and enhancing client experiences through technological solutions. With over 20 years in the title and settlement industry, she has established herself as a trusted leader with a commitment to innovation and client satisfaction. Schroeder graduated Summa Cum Laude from California State University, Fullerton, with a Bachelor of Arts degree in Communications.

“We are excited to welcome Monica to the Verus Title team,” said Fathom Holdings COO Jon Gwin. “Her proven leadership, combined with a passion for service and a track record of integrating technology to drive value, will be instrumental in guiding our team and strengthening our commitment to our clients.”

Schroeder commented, “I’m thrilled to join Verus Title and be part of such a dedicated group of professionals. The team’s reputation for service excellence and innovation is well deserved, and I look forward to working with them to drive growth and enhance the reliable and efficient solutions our clients have come to expect. Together, we’ll continue building on our success and exploring new opportunities to serve our customers even better.”

Penelope Vockel

Vockel has been pivotal in driving growth and operational efficiency across Verus Title’s Northeast, Midwest, and DC Metro regions. With over a decade of industry experience, including prior leadership roles at STA Title & Escrow, and a legal background from Georgetown University, Vockel brings a strong strategic perspective to her new role as COO.

“We are thrilled to promote Penelope to Chief Operating Officer of Verus,” added Gwin. “Her expertise, dedication, and leadership have been crucial to our growth, and we’re confident that she will help Verus Title reach new heights.”

Vockel shared her enthusiasm, stating, “I am honored to take on this new role and support Verus Title’s mission of delivering innovative and reliable solutions to our clients. Our team is committed to setting new standards in client service, and I’m eager to work with them as we continue to expand our reach and refine our offerings. The real estate industry is rapidly evolving, and I look forward to leading initiatives that keep Verus Title at the forefront of these changes.”

About Verus Title

Verus Title is a subsidiary of Fathom Holdings Inc., offering comprehensive title insurance and settlement services. Verus Title is committed to innovation, technology, and customer satisfaction, providing real estate professionals and consumers with efficient, transparent, and reliable solutions.

About Fathom Holdings Inc.

Fathom Holdings Inc. is a national, technology-driven, real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings to brokerages and agents by leveraging its proprietary cloud-based software, intelliAgent. The Company’s brands include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title. For more information, visit www.FathomInc.com.

Investor Contact:

Matt Glover and Clay Liolios
Gateway Group, Inc.
949-574-3860
FTHM@gateway-grp.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/fathom-holdings-subsidiary-verus-title-appoints-industry-veteran-monica-schroeder-as-president-and-promotes-penelope-vockel-to-chief-operating-officer-302292716.html

SOURCE Fathom Holdings Inc.

Continue Reading

Technology

LENDINGTREE REPORTS THIRD QUARTER 2024 RESULTS

Published

on

By

Revenue Growth of 68% Powered by Strong Insurance Performance, Strengthening Consumer Segment

Consolidated revenue of $260.8 millionGAAP net loss of $(58.0) million or $(4.34) per diluted share, including $(58.4) million of non-cash impairment of equity investmentsVariable marketing margin of $77.2 millionAdjusted EBITDA of $26.9 millionAdjusted net income per share of $0.80

CHARLOTTE, N.C., Oct. 31, 2024 /PRNewswire/ — LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation’s leading online financial services marketplace, today announced results for the quarter ended September 30, 2024.

The company has posted a letter to shareholders on the company’s website at investors.lendingtree.com.

“Our Insurance segment had another quarter of tremendous growth, as revenue increased 210% compared to the prior year period.  Improving results in personal loans and a 32% YoY increase in small business revenue drove 6% sequential growth in the Consumer segment revenue,” said Doug Lebda, Chairman and CEO.  “As we look forward to next year, we believe the company is positioned to improve performance across all three of our reportable segments.”

Scott Peyree, President and COO, commented, “Our Insurance business is generating record levels of revenue and VMD and should maintain momentum into 2025 as segment margin has stabilized.  We are optimistic forecasted easing of interest rates by the Fed, along with a stable economy, will benefit our Consumer and Home segments next year.”

Jason Bengel, CFO, added, “Our outlook for continued growth, coupled with ongoing expense discipline and targeted investment initiatives, lays the groundwork for improving financial results.  As our balance sheet continues to strengthen and leverage declines, we will evaluate optimizing our capital structure to lower interest expense.”

Third Quarter 2024 Business Results

Home segment revenue of $32.2 million decreased 4% over third quarter 2023 and produced segment profit of $9.3 million, down 18% over the same period.Within Home, revenue from Home Equity of $21.0 million increased 5% over prior year.Consumer segment revenue of $59.5 million declined 12% over third quarter 2023, and grew 6% sequentially.Within Consumer, personal loans revenue of $27.8 million increased 5% over prior year.Revenue from our small business offering increased 32% over prior year.Insurance segment revenue of $169.1 million increased 210% over third quarter 2023 and translated into record segment profit of $41.4 million, up 77% over the same period.

LendingTree Summary Financial Metrics

(In millions, except per share amounts)

Three Months Ended

September 30,

Y/Y

Three Months Ended
June 30,

Q/Q

2024

2023

% Change

2024

% Change

Total revenue

$     260.8

$    155.2

68 %

$                     210.1

24 %

(Loss) income before income taxes

$     (57.5)

$  (152.0)

62 %

$                         9.4

— %

Income tax (expense) benefit

$       (0.5)

$        3.5

(114) %

$                        (1.6)

69 %

Net (loss) income

$     (58.0)

$  (148.5)

61 %

$                         7.8

— %

Net (loss) income % of revenue

(22) %

(96) %

4 %

(Loss) income per share

Basic

$     (4.34)

$  (11.43)

$                       0.58

Diluted

$     (4.34)

$  (11.43)

$                       0.58

Variable marketing margin

Total revenue

$     260.8

$    155.2

68 %

$                     210.1

24 %

Variable marketing expense (1) (2)

$   (183.6)

$    (87.5)

110 %

$                   (139.2)

32 %

Variable marketing margin (2)

$       77.2

$      67.7

14 %

$                       70.9

9 %

Variable marketing margin % of revenue (2)

30 %

44 %

34 %

Adjusted EBITDA (2)

$       26.9

$      21.8

23 %

$                       23.5

14 %

Adjusted EBITDA % of revenue (2)

10 %

14 %

11 %

Adjusted net income (2)

$       10.9

$        7.9

38 %

$                         7.2

51 %

Adjusted net income per share (2)

$       0.80

$      0.61

31 %

$                       0.54

48 %

(1)

Represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses.  Excludes overhead, fixed costs and personnel-related expenses. 

(2)

Variable marketing expense, variable marketing margin, variable marketing margin % of revenue, adjusted EBITDA, adjusted EBITDA % of revenue, adjusted net income and adjusted net income per share are non-GAAP measures. Please see “LendingTree’s Reconciliation of Non-GAAP Measures to GAAP” and “LendingTree’s Principles of Financial Reporting” below for more information.

 

LendingTree Segment Results

(In millions)

Three Months Ended

September 30,

Y/Y

Three Months Ended
June 30,

Q/Q

2024

2023

% Change

2024

% Change

Home (1)

Revenue

$       32.2

$      33.4

(4) %

$                       32.2

— %

Segment profit

$         9.3

$      11.3

(18) %

$                         9.3

— %

Segment profit % of revenue

29 %

34 %

29 %

Consumer (2)

Revenue

$       59.5

$      67.3

(12) %

$                       55.9

6 %

Segment profit

$       28.0

$      34.4

(19) %

$                       26.9

4 %

Segment profit % of revenue

47 %

51 %

48 %

Insurance (3)

Revenue

$     169.1

$      54.5

210 %

$                     122.1

38 %

Segment profit

$       41.4

$      23.4

77 %

$                       36.4

14 %

Segment profit % of revenue

24 %

43 %

30 %

Other (4)

Revenue

$          —

$          —

— %

$                           —

— %

(Loss)

$          —

$         —

— %

$                        (0.1)

100 %

Total revenue

$     260.8

$    155.2

68 %

$                     210.1

24 %

Total segment profit

$       78.6

$      69.1

14 %

$                       72.5

8 %

     Brand marketing expense (5)

$       (1.4)

$       (1.4)

— %

$                        (1.6)

(13) %

Variable marketing margin

$       77.2

$      67.7

14 %

$                       70.9

9 %

Variable marketing margin % of revenue

30 %

44 %

34 %

(1)

The Home segment includes the following products: purchase mortgage, refinance mortgage, and home equity loans.

(2)

The Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans,

deposit accounts, and debt settlement.

(3)

The Insurance segment consists of insurance quote products and sales of insurance policies.

(4)

The Other category primarily includes marketing revenue and related expenses not allocated to a specific segment.

(5)

Brand marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses that are not assignable to the segments’ products. This measure excludes overhead, fixed costs and personnel-related expenses.

Financial Outlook*

Today we are updating our outlook for full-year 2024, which implies the following fourth quarter outlook:

Full-year 2024:

Revenue of $870$880 million versus the prior range of $830$870 millionVariable Marketing Margin of $287$292 million, compared to $280$300 million previouslyAdjusted EBITDA of $92$95 million versus $85$95 million previously

Fourth-quarter 2024:

Revenue: $231$241 millionVariable Marketing Margin: $69$74 millionAdjusted EBITDA: $20$23 million

*LendingTree is not able to provide a reconciliation of projected variable marketing margin or adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters and tax considerations. Expenses associated with legal matters and tax considerations have in the past, and may in the future, significantly affect GAAP results in a particular period.   

Quarterly Conference Call

A conference call to discuss LendingTree’s third quarter 2024 financial results will be webcast live today, October 31, 2024 at 4:30 PM Eastern Time (ET). The live webcast is open to the public and will be available on LendingTree’s investor relations website at investors.lendingtree.com. Following completion of the call, a recorded replay of the webcast will be available on the website.

LENDINGTREE’S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Variable Marketing Expense

Below is a reconciliation of selling and marketing expense, the most directly comparable GAAP measure, to variable marketing expense. See “LendingTree’s Principles of Financial Reporting” for further discussion of the Company’s use of this non-GAAP measure.

Three Months Ended

September 30,
2024

June 30,
2024

September 30,
2023

(in thousands)

Selling and marketing expense

$      193,542

$      148,387

$        97,244

Non-variable selling and marketing expense (1)

(9,976)

(9,140)

(9,805)

Variable marketing expense

$      183,566

$      139,247

$        87,439

(1)

Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses.

LENDINGTREE’S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Variable Marketing Margin

Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to variable marketing margin and net (loss) income % of revenue to variable marketing margin % of revenue. See “LendingTree’s Principles of Financial Reporting” for further discussion of the Company’s use of these non-GAAP measures.

Three Months Ended

September 30,
2024

June 30,
2024

September 30,
2023

(in thousands, except percentages)

Net (loss) income

$     (57,978)

$          7,752

$  (148,465)

Net (loss) income % of revenue

(22) %

4 %

(96) %

Adjustments to reconcile to variable marketing margin:

Cost of revenue

9,372

8,411

7,570

Non-variable selling and marketing expense (1)

9,976

9,140

9,805

General and administrative expense

26,680

27,118

26,380

Product development

11,190

10,374

10,840

Depreciation

4,584

4,601

4,760

Amortization of intangibles

1,466

1,467

1,981

Goodwill impairment

38,600

Restructuring and severance

273

202

1,955

Litigation settlements and contingencies

3,762

(7)

(150)

Interest expense (income), net

10,060

1,201

7,097

Other expense (income)

57,391

(1,052)

110,910

Income tax expense (benefit)

447

1,686

(3,534)

Variable marketing margin

$        77,223

$        70,893

$        67,749

Variable marketing margin % of revenue

30 %

34 %

44 %

(1)

Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses.

LENDINGTREE’S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Adjusted EBITDA

Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to adjusted EBITDA and net (loss) income % of revenue to adjusted EBITDA % of revenue. See “LendingTree’s Principles of Financial Reporting” for further discussion of the Company’s use of these non-GAAP measures.

Three Months Ended

September 30,
2024

June 30,
2024

September 30,
2023

(in thousands, except percentages)

Net (loss) income

$     (57,978)

$          7,752

$  (148,465)

Net (loss) income % of revenue

(22) %

4 %

(96) %

Adjustments to reconcile to adjusted EBITDA:

Amortization of intangibles

1,466

1,467

1,981

Depreciation

4,584

4,601

4,760

Restructuring and severance

273

202

1,955

Loss on impairments and disposal of assets

6

413

88

Loss on impairment of equity investments

58,376

113,064

Goodwill impairment

38,600

Non-cash compensation

6,859

7,437

8,592

Litigation settlements and contingencies

3,762

(7)

(150)

Interest expense (income), net

10,060

1,201

7,097

Dividend income

(982)

(1,225)

(2,154)

Income tax expense (benefit)

447

1,686

(3,534)

Adjusted EBITDA

$        26,873

$        23,527

$        21,834

Adjusted EBITDA % of revenue

10 %

11 %

14 %

LENDINGTREE’S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Adjusted Net Income

Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to adjusted net income and net (loss) income per diluted share to adjusted net income per share. See “LendingTree’s Principles of Financial Reporting” for further discussion of the Company’s use of these non-GAAP measures.

Three Months Ended

September 30,
2024

June 30,
2024

September 30,
2023

(in thousands, except per share amounts)

Net (loss) income

$     (57,978)

$          7,752

$  (148,465)

Adjustments to reconcile to adjusted net income:

Restructuring and severance

273

202

1,955

Goodwill impairment

38,600

Loss on impairments and disposal of assets

6

413

88

Loss on impairment of equity investments

58,376

113,064

Non-cash compensation

6,859

7,437

8,592

Litigation settlements and contingencies

3,762

(7)

(150)

Gain on extinguishment of debt

(416)

(8,619)

Income tax expense (benefit) from adjusted items

(5,764)

Adjusted net income

$        10,882

$          7,178

$          7,920

Net (loss) income per diluted share

$         (4.34)

$            0.58

$       (11.43)

Adjustments to reconcile net (loss) income to adjusted net income

5.16

(0.04)

12.04

Adjustments to reconcile effect of dilutive securities

(0.02)

Adjusted net income per share

$            0.80

$            0.54

$            0.61

Adjusted weighted average diluted shares outstanding

13,555

13,407

12,999

Effect of dilutive securities

206

6

Weighted average diluted shares outstanding

13,349

13,407

12,993

Effect of dilutive securities

150

Weighted average basic shares outstanding

13,349

13,257

12,993

LENDINGTREE’S PRINCIPLES OF FINANCIAL REPORTING

LendingTree reports the following non-GAAP measures as supplemental to GAAP:

Variable marketing expenseVariable marketing marginVariable marketing margin % of revenueEarnings Before Interest, Taxes, Depreciation and Amortization, as adjusted for certain items discussed below (“Adjusted EBITDA”)Adjusted EBITDA % of revenueAdjusted net incomeAdjusted net income per share

Variable marketing expense, variable marketing margin and variable marketing margin % of revenue are related measures of the effectiveness of the Company’s marketing efforts. Variable marketing margin is a measure of the efficiency of the Company’s operating model, measuring revenue after subtracting variable marketing expense. Variable marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing, and related expenses, and excludes overhead, fixed costs, and personnel related expenses.  The Company’s operating model is highly sensitive to the amount and efficiency of variable marketing expenditures, and the Company’s proprietary systems are able to make rapidly changing decisions concerning the deployment of variable marketing expenditures (primarily but not exclusively online and mobile advertising placement) based on proprietary and sophisticated analytics.

Adjusted EBITDA and adjusted EBITDA % of revenue are primary metrics by which LendingTree evaluates the operating performance of its businesses, on which its marketing expenditures and internal budgets are based and, in the case of adjusted EBITDA, by which management and many employees are compensated in most years.

Adjusted net income and adjusted net income per share supplement GAAP net income and GAAP net income per diluted share by enabling investors to make period to period comparisons of those components of the most directly comparable GAAP measures that management believes better reflect the underlying financial performance of the Company’s business operations during particular financial reporting periods. Adjusted net income and adjusted net income per share exclude certain amounts, such as non-cash compensation, non-cash asset impairment charges, gain/loss on disposal of assets, gain/loss on investments, restructuring and severance, litigation settlements and contingencies, acquisition and disposition income or expenses including with respect to changes in fair value of contingent consideration, gain/loss on extinguishment of debt, contributions to the LendingTree Foundation, one-time items which are recognized and recorded under GAAP in particular periods but which might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded, the effects to income taxes of the aforementioned adjustments, any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and income tax (benefit) expense from a full valuation allowance. LendingTree believes that adjusted net income and adjusted net income per share are useful financial indicators that provide a different view of the financial performance of the Company than adjusted EBITDA (the primary metric by which LendingTree evaluates the operating performance of its businesses) and the GAAP measures of net income and GAAP net income per diluted share.

These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. LendingTree provides and encourages investors to examine the reconciling adjustments between the GAAP and non-GAAP measures set forth above.

Definition of LendingTree’s Non-GAAP Measures

Variable marketing margin is defined as revenue less variable marketing expense. Variable marketing expense is defined as the expense attributable to variable costs paid for advertising, direct marketing and related expenses, and excluding overhead, fixed costs and personnel-related expenses. The majority of these variable advertising costs are expressly intended to drive traffic to our websites and these variable advertising costs are included in selling and marketing expense on the Company’s consolidated statements of operations and consolidated income.

EBITDA is defined as net income from continuing operations excluding interest, income taxes, amortization of intangibles and depreciation.

Adjusted EBITDA is defined as EBITDA excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) contributions to the LendingTree Foundation (9) dividend income, and (10) one-time items.

Adjusted net income is defined as net income (loss) excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) gain/loss on extinguishment of debt, (9) contributions to the LendingTree Foundation, (10) one-time items, (11) the effects to income taxes of the aforementioned adjustments, (12) any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and (13) income tax (benefit) expense from a full valuation allowance.

Adjusted net income per share is defined as adjusted net income divided by the adjusted weighted average diluted shares outstanding. For periods which the Company reports GAAP loss from continuing operations, the effects of potentially dilutive securities are excluded from the calculation of net loss per diluted share from continuing operations because their inclusion would have been anti-dilutive. In periods where the Company reports GAAP loss from continuing operations but reports positive non-GAAP adjusted net income, the effects of potentially dilutive securities are included in the denominator for calculating adjusted net income per share if their inclusion would be dilutive.

LendingTree endeavors to compensate for the limitations of these non-GAAP measures by also providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

One-Time Items

Adjusted EBITDA and adjusted net income are adjusted for one-time items, if applicable. Items are considered one-time in nature if they are non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. For the periods presented in this report, there are no adjustments for one-time items.

Non-Cash Expenses That Are Excluded From LendingTree’s Adjusted EBITDA and Adjusted Net Income

Non-cash compensation expense consists principally of expense associated with the grants of restricted stock, restricted stock units and stock options. These expenses are not paid in cash and LendingTree includes the related shares in its calculations of fully diluted shares outstanding. Upon settlement of restricted stock units, exercise of certain stock options or vesting of restricted stock awards, the awards may be settled on a net basis, with LendingTree remitting the required tax withholding amounts from its current funds. Cash expenditures for employer payroll taxes on non-cash compensation are included within adjusted EBITDA and adjusted net income.

Amortization of intangibles are non-cash expenses relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as purchase agreements, technology and customer relationships, are valued and amortized over their estimated lives.  Amortization of intangibles are only excluded from adjusted EBITDA.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

The matters contained in the discussion above may be considered to be “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations or anticipations of LendingTree and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: adverse conditions in the primary and secondary mortgage markets and in the economy, particularly interest rates and inflation; default rates on loans, particularly unsecured loans; demand by investors for unsecured personal loans; the effect of such demand on interest rates for personal loans and consumer demand for personal loans; seasonality of results; potential liabilities to secondary market purchasers; changes in the Company’s relationships with network partners, including dependence on certain key network partners; breaches of network security or the misappropriation or misuse of personal consumer information; failure to provide competitive service; failure to maintain brand recognition; ability to attract and retain consumers in a cost-effective manner; the effects of potential acquisitions of other businesses, including the ability to integrate them successfully with LendingTree’s existing operations; accounting rules related to excess tax benefits or expenses on stock-based compensation that could materially affect earnings in future periods; ability to develop new products and services and enhance existing ones; competition; effects of changing laws, rules or regulations on our business model; allegations of failure to comply with existing or changing laws, rules or regulations, or to obtain and maintain required licenses; failure of network partners or other affiliated parties to comply with regulatory requirements; failure to maintain the integrity of systems and infrastructure; liabilities as a result of privacy regulations; failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; and changes in management. These and additional factors to be considered are set forth under “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2023, in our Quarterly Report on Form 10-Q for the period ended June 30, 2024, and in our other filings with the Securities and Exchange Commission. LendingTree undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.

About LendingTree, Inc.

LendingTree, Inc. is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC (collectively, “LendingTree” or the “Company”).

LendingTree is one of the nation’s largest, most experienced online financial platforms, created to give consumers the power to win financially.  LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of approximately 400 financial partners.  Since its founding, LendingTree has helped millions of customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins.

LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please visit www.lendingtree.com

Investor Relations Contact:
investors@lendingtree.com 

Media Contact:
press@lendingtree.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingtree-reports-third-quarter-2024-results-302293289.html

SOURCE LendingTree, Inc.

Continue Reading

Technology

HitPaw Video Enhancer Rebrands to HitPaw VikPea: Major Update for Your Ultimate Video Enhancer Solution!

Published

on

By

NEW YORK, Oct. 31, 2024 /PRNewswire/ — HitPaw, a leading software company, is excited to announce the rebranding of HitPaw Video Enhancer to HitPaw VikPea! This major update introduces advanced features that will empower you to create professional-looking videos with ease. Whether you’re new to video upscaling or an experienced creator, HitPaw VikPea is your ultimate solution for transforming blurry videos!

WHAT’S NEW!

Video Quality Repair Model
The new video enhancement model efficiently removes noise, balances clarity, reproduces details, and restores high-definition images, perfectly enhancing low-quality videos to achieve rapid and superior image quality improvement.

Cloud Preview for Lower-End Computers
This version introduces a cloud preview feature, allowing users with less powerful computers to preview their videos more quickly and efficiently.

Optimized Cloud Acceleration
Cloud processing has been significantly accelerated in this version, supporting more models and ensuring faster performance.

WHAT’S IMPORTANT!

Video Enhancer
HitPaw VikPea not only offers the latest video detail enhancement features but also includes several specialized enhancement models, such as Video Quality Repair Model, Face Model, General Denoise Model, Animation Model, Colorize Model, Color Enhancement Model, Frame Rate Enhancement Model, Stabilize Model, and Low-light Enhancement Model. Each model provides targeted optimization effects to meet various video enhancement needs, delivering a comprehensive solution for achieving perfect video quality.

AI Background Removal
The AI Background Removal feature simplifies the process of removing cluttered backgrounds from videos with a single click, preserving clear images of subjects. Especially useful for e-commerce, as it removes distracting backgrounds to maintain a clean and professional appearance of products. It supports background blurring and canvas color changes, ensuring that the focus remains on the item being showcased. You can quickly replace or remove video backgrounds, making your product listings stand out and look more appealing to potential customers.

Watermark Removal
The Watermark Removal feature is designed specifically for removing static watermarks from videos. Simply draw a box around the watermark area, and the system will automatically process and remove the watermark.

Video Repair
HitPaw VikPea includes a Video Repair function, allowing users to repair videos that have been damaged or corrupted, such as from file transfer errors or faulty USB cable.

Compatibility and Price

HitPaw VikPea now supports exporting in more formats: MP4, AVI, MOV, MKV, M4V, and GIF.

HitPaw VikPea is compatible with Windows 11/10 64-bit and MacOS 10.15. Available on iOS and Android. Try the new features by downloading the free trial, or purchase the full package from $42.99/month.

For more information, you can visit:
[Official] HitPaw Video Enhancer – Superb AI Video Quality Enhancer

The Most Delicate Mac Video Enhancer

Purchase HitPaw Video Enhancer for Windows

Purchase HitPaw Video Enhancer for Mac

https://www.hitpaw.com/purchase/buy-hitpaw-vikpea-ms.html

About HitPaw:

HitPaw is a cutting-edge company that enters the AI editing field with innovation, creativity, efficiency, and simplicity as its core characteristics.

Information:
[OFFICIAL] HitPaw: Powerful Video, Audio, and Image Solutions Provider

About HitPaw – All Things About HitPaw 

This release was issued through Send2Press® on behalf of the news source. For more information, visit Send2Press Newswire at https://www.send2press.com/.

View original content to download multimedia:https://www.prnewswire.com/news-releases/hitpaw-video-enhancer-rebrands-to-hitpaw-vikpea-major-update-for-your-ultimate-video-enhancer-solution-302293404.html

SOURCE HitPaw. Co., Ltd

Continue Reading

Trending