What changed in this filing

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Item 1. Business

2022-03-01 compared with 2021-03-01 · 19 added, 32 removed, 190 unchanged (21% of the section changed)

2 unchanged sentences

Through multiple branded marketplaces, LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners (which we refer to as "Network Partners") in one simple search, and choose the option that best fits their financial needs.

Services include mortgage loans, mortgage refinances, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes and other related offerings.

In addition, we offer tools and resources, including free credit scores, that facilitate comparison shopping for loans, deposit products, insurance and other offerings.

7 unchanged sentences

We generate revenue from our Network Partners, generally at the time of transmitting a consumer request to them, in the form of a match fee.

In certain instances outside our mortgage and insurance business, we charge other kinds of fees, such as closed loan or closed sale fees.

In certain instances outside our mortgage business, we charge other kinds of fees, such as closed loan or closed sale fees.

In addition to our primary consumer request data referral business, we also match consumers with Network Partners by offering consumers the ability to click from our website to a Network Partner’s website or by calls for which Network Partners pay either front-end or back-end fees.

22 unchanged sentences

("ValuePenguin"), a personal finance website that offers consumers objective analysis on a variety of financial topics from insurance to credit cards.

Combining ValuePenguin’s high-quality content and search engine optimization capability with proprietary technology and insurance carrier network from QuoteWizard.com, LLC ("QuoteWizard") (discussed below) enables us to provide immense value to insurance carriers and agents.

Combining ValuePenguin’s high-quality content and search engine optimization capability with proprietary technology and insurance carrier network from QuoteWizard.com, LLC ("QuoteWizard") enables us to provide immense value to insurance carriers and agents.

This strategic acquisition positions us to achieve further scale in the insurance space as well as the broader financial services industry.

On October 31, 2018, we acquired QuoteWizard.com, one of the largest insurance comparison marketplaces in the growing online insurance advertising market.

QuoteWizard services clients by driving consumers to insurance companies’ websites, providing leads to agents and carriers, as well as phone transfers of consumers into carrier call centers.

This acquisition has established LendingTree as a leading player in the online insurance advertising industry while continuing our ongoing diversification within the financial services category.

On July 23, 2018, we acquired Student Loan Hero, Inc.

(“Student Loan Hero”), a personal finance website dedicated to helping student loan borrowers manage their student debt.

Student Loan Hero offers current and former students in-depth financial comparison tools, educational resources, and unbiased, personalized advice.

This strategic transaction allows us to scale our student loan business and provide consumers with the tools and resources to better understand their personal finances and make smarter financial decisions.

On June 11, 2018, we acquired Ovation Credit Services, Inc.

(“Ovation”), a leading provider of credit services with a strong customer service reputation.

Ovation utilizes a proprietary software application that facilitates the credit repair process and is integrated directly with certain credit reporting agencies while educating consumers on credit improvement via ongoing outreach with Ovation case advisors.

The proprietary software application offers consumers a simple, streamlined process to identify, dispute, and correct inaccuracies within their credit reports.

Ovation's experienced management team, strong credit reporting agency relationships and customized software platform enable us to help more consumers achieve their financial goals through the LendingTree platform.

These acquisitions continue our diversification strategy.

4 unchanged sentences

We are continuously monitoring the impacts of the current economic conditions related to the COVID-19 pandemic and the effect on our business, financial condition and results of operations.

Of our three reportable segments, the Consumer segment has been most impacted as unsecured credit and the flow of capital in certain areas of the market have contracted.

The impact to our Home and Insurance segments was much less substantial and these segments recovered by the end of 2020.

While forecasting the timeline of full recovery for the Consumer segment remains challenging, the momentum of recovery has increased in each quarter subsequent to the onset of the COVID-19 pandemic.

We are encouraged by the progress made, and continue to view the Consumer segment with optimism over the medium to long term.

Of our three reportable segments, the Consumer segment was the most impacted as unsecured credit and the flow of capital in certain areas of the market contracted.

The impact to our Home and Insurance segments was much less substantial.

We believe our three reportable segments have generally recovered from the impacts of the pandemic.

Most of our selling and marketing expenses are variable costs that we adjust dynamically in relation to revenue opportunities to profitably meet demand.

7 unchanged sentences

credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products such as credit repair and debt settlement.

Our Insurance segment consists of insurance quote products.

Our Insurance segment consists of insurance quote products and insurance policies in our agency businesses.

Revenue within the Other category includes revenue from the resale of online advertising space to third parties and revenue from home improvement referrals.

13 unchanged sentences

For our credit card product, we send click traffic to issuers and are generally paid per card approval.

Revenues from our Insurance products are primarily derived from upfront match fees, and upfront fees for website clicks or fees for calls, earned through the delivery of consumer requests.

For the years ended December 31, 2020 and 2019, one Network Partner, Progressive Casualty Insurance, accounted for 15% and 12%, respectively, of total consolidated revenue, all of which was recorded within our Insurance segment.

Revenues from our Insurance products are primarily derived from upfront match fees, and upfront fees for website clicks or fees for calls, earned through the delivery of consumer requests, as well as commissions earned on policy sales in our agency businesses.

For the year ended December 31, 2021, no Network Partners accounted for more than 10% of total consolidated revenue.

We partner with lenders throughout the United States to provide full geographic lending coverage and to offer a complete suite of loan offerings on our marketplace.

To participate on our marketplace, lenders are required to enter into contracts with us that state the terms and conditions for such participation, although these contracts generally may be terminated for convenience by either party.

We perform certain due diligence procedures on prospective new lenders, including screening

against a national anti-fraud database maintained by the Mortgage Asset Research Institute, which helps manage our risk exposure.

We perform certain due diligence procedures on prospective new lenders, including screening against a national anti-fraud database maintained by the Mortgage Asset Research Institute, which helps manage our risk exposure.

The data is utilized to determine whether a lender and its principals are eligible to participate on our marketplace and have not been convicted of and/or penalized for fraudulent activity.

31 unchanged sentences

• Student loans, which includes both new loans to finance an education and related expenses, as well as refinancing of existing loans.

During the third quarter of 2018, we purchased Student Loan Hero, a personal finance website dedicated to helping student loan borrowers manage their student debt, enhancing this product.

Non-lending Consumer products also includes information, tools and access to the following:

1 unchanged sentence

• Credit repair, through which consumers can obtain assistance improving their credit profiles, in order to expand and improve loan and other financial product opportunities available to them.

During the second quarter of 2018, we purchased Ovation, a leading provider of credit services with a strong customer service reputation, enhancing this product.

Our Ovation business is a leading provider of credit services with a strong customer service reputation.

• Debt relief services, through which consumers can obtain assistance negotiating existing loans.

3 unchanged sentences

Insurance Segment

Our Insurance segment includes information, tools and access to insurance quote products, including automobile, home, health and Medicare, through which consumers are matched with insurance lead aggregators to obtain insurance offers.

We enhanced our insurance products by acquiring QuoteWizard, one of the largest insurance comparison marketplaces in the growing online insurance advertising market, in the fourth quarter of 2018.

Our QuoteWizard business is one of the largest insurance comparison marketplaces in the growing online insurance advertising market.

We also purchased ValuePenguin, a personal finance website that offers consumers objective analysis on a variety of financial topics from insurance to credit cards, in the first quarter of 2019.

39 unchanged sentences

• Federal and state laws relating to offering of credit repair services to consumers, including such laws that impose restrictions on the usage and storage of consumer credit information such as the Credit Repair Organizations Act ("CROA") and the Fair Credit Reporting Act;

• Federal and state laws and regulations relating to data privacy and security, such as the Gramm-Leach-Bliley Act (“GLBA”) and the California Consumer Privacy Act ("CCPA"), which impact how we collect, use, store, share and otherwise process personal information of consumers and other individuals.

• Federal and state laws and regulations relating to data privacy and security, including the Gramm-Leach-Bliley Act (“GLBA”), which may impact how we collect, use, store, share and otherwise process personal information of consumers and other individuals.

Intellectual Property

3 unchanged sentences

As we develop or identify new or improved proprietary technologies, we seek patent protection in the United States and abroad, as appropriate.

As of December 31, 2020, we own one issued U.S.

As of December 31, 2021, we owned one issued U.S.

patent related to the system and method for collecting financial information over a global communications network, which expires in 2032.

We also own one provisional U.S.

patent related to systems and methods for optimizing software development and testing which expires in October 2022, at which time a non-provisional patent application will be filed.

Many of our services are offered under proprietary trademarks and service marks.

1 unchanged sentence

We generally apply to register or secure by contract our principal trademarks and service marks as they are developed and used.

As of December 31, 2020, we own 35 trademarks and service marks registered with the United States Patent and Trademark Office.

As of December 31, 2021, we owned 41 trademarks and service marks, 35 of which are registered with the United States Patent and Trademark Office ("USPTO"), and six of which have applications pending with the USPTO but have not yet been registered.

These registrations can typically be renewed at 10-year intervals.

In addition, we reserve and register domain names when and where we deem appropriate.

As of December 31, 2020, we own approximately 1,600 registered domain names.

As of December 31, 2021, we owned approximately 1,600 registered domain names.

We also have agreements with third parties that provide for the licensing of patented, copyrighted and other proprietary technology used in our business.

26 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business