It’s official now and we, at last, have the sought after 2010 revenue and earnings guidance of Tree.com. As per the report, the Company has a strong expectation to have continued growth in its new consumer verticals, in particular Education and Home Services, in addition to additional growth in Real Estate which positively impacts this guidance.
In addition, it has been found, the Company has become able to identify cost efficiencies that will be realized by means of reorganizing certain processes and eliminating a few duplicative cost structures, above all by way of combining Tree’s call center functions into one centrally managed organization and reducing redundant network and corporate staff roles. In consequence of this cost rationalization, Tree.com expects to diminish annualized compensation costs by about $5.5 million and facilities and overhead costs by $3.0 million.
Speaking on this Doug Lebda, Chairman and CEO of Tree.com, stated, “We are pleased to see signs of stability in the real estate and mortgage markets and continue to be encouraged by our new verticals. We expect to see a decline in refinance originations in 2010, particularly after the record setting first half of 2009. However, improving demand from our network lenders, continued agent growth in Real Estate and a full year of results from our recently acquired Education and Home Services businesses should enable us to grow our top-line revenue if the mortgage market remains stable.”
CFO Matt Packey added: “As we look towards 2010 and into 2011, we believe the consumer credit markets will remain tight; as such, we believe the cost-reduction actions announced today give us the right structure to operate efficiently in a market less dominated by refinance mortgages.”
Have the guidance for 2010 from Tree.com in short. Prevising a continual low interest rate environment in 2010 and no further commotion in the housing markets, the Company expects revenue to augment 3.5% to 7% from 2009 levels to an assortment of roughly $227 million to $237 million.
Tree.com, Inc. happens to be the parent of several brands and businesses in the financial services and real estate industries including LendingTree(R), LendingTree Loans(SM), GetSmart(R), Home Loan Center, RealEstate.com, iNest(R), and RealEstate.com, REALTORS(R).
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