Headline Feeds
Lending Tree, Inc. (Nasdaq: TREE) was up 0.06 at 3.25 Wednesday, building on a Tuesday gain, after the online lending company said it will post a profit -- before income taxes, depreciation and amortization -- by the first quarter of 2002, five months earlier than previously expected.
The Charlotte, North Carolina-based online loan marketplace and loan exchange technology provider said Tuesday that its revenue per customer exceeded the cost of acquiring a customer for the first time in November.
For 2001, the company expects a loss before taxes, depreciation and amortization of US$33 million, 27 percent better than previously thought. Revenue, meanwhile, will double, said chief financial officer Keith Hall.
After the close of trading, however, officials said the company will need to raise cash in the future. With about $12.5 million in cash as of year-end 2000, Lending Tree will need about $25 million in "incremental investment" to cover its loss for this year, said Hall.
"Consumers and lenders have embraced our marketplace as an effective way to borrow and lend money," said chief executive officer Doug Lebda. "Consequently, we continue to meet or exceed the targets that we have set for our key operating metrics. The achievement of a positive variable marketing contribution five months earlier than we projected has contributed significantly to our revised favorable outlook for 2001 and beyond."
Noted Hall, "The majority of
our revenue will continue to be derived from our exchange, and we are
confident about the
continued acceptance in the industry and our success in licensing our Lend-X
technology."
