tree.com, Inc. have announced their financial results for the third quarter of 2009, showing a slight increase from the third quarter of 2008 to a revenue total of US$50.7 million. However, revenue was down from the previous quarter’s total by 17 percent.
tree.com’s results also revealed a GAAP loss of $0.68 per share on a net loss of $7.4 million. This was less than in the third quarter of 2008 when the company saw a $2.41 loss per share and a $22.6 million net loss.
tree.com’s adjusted EBITDA fell by $3.5 million, which was a $4.8 million improvement from the third quarter 2008 adjusted EBITDA loss of $8.3 million.
tree.com chief financial officer Matt Packey explained the quarter’s results, pointing to legal fees from the company’s lawsuit against software vendor Mortech as one reason for the losses:
“Overall, we are pleased with our Q3 operating results, even as two unanticipated items negatively impacted our bottom line. As we stated previously, we expected the surge in refinance activity from earlier this year to subside and our Adjusted EBITDA to return to break-even levels for Q3 and Q4.
However, continued high levels of loan loss settlement requests prompted us to increase our provision for loan losses by $4.2 million in the quarter and our legal fees were approximately $1.0 million higher than expected, principally because of the Mortech lawsuit.”
tree.com operates US brokerage and property portal realestate.com as well as lendingtree.com, getsmart.com, homeloancenter.com, inest.com and domania.com.