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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2021
or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                 
Commission File No. 001-34063 
 
https://cdn.kscope.io/d9ed591d2695aa9f51fb7548aff7ff8e-tree-20210930_g1.jpg
LendingTree, Inc.
(Exact name of Registrant as specified in its charter)
Delaware
26-2414818
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
 1415 Vantage Park Dr., Suite 700, Charlotte, North Carolina 28203
(Address of principal executive offices)(Zip Code)
(704541-5351
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value per share TREE The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes    No   
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No   
As of October 22, 2021, there were 13,335,464 shares of the registrant's common stock, par value $.01 per share, outstanding, excluding treasury shares.




TABLE OF CONTENTS

  Page
Number
   
   

2

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1.  Financial Statements 

LENDINGTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited) 
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
 (in thousands, except per share amounts)
Revenue$297,450 $220,251 $840,214 $687,661 
Costs and expenses:    
Cost of revenue (exclusive of depreciation and amortization shown separately below)
15,020 13,220 42,849 40,936 
Selling and marketing expense206,475 154,670 589,143 464,129 
General and administrative expense40,126 33,705 114,926 94,276 
Product development13,384 11,477 39,142 33,252 
Depreciation4,808 3,535 12,969 10,463 
Amortization of intangibles10,345 13,090 32,967 40,603 
Change in fair value of contingent consideration(196)6,658 (8,249)7,711 
Severance47  47 190 
Litigation settlements and contingencies22 13 360 (983)
Total costs and expenses290,031 236,368 824,154 690,577 
Operating income (loss)7,419 (16,117)16,060 (2,916)
Other (expense) income, net:    
Interest expense, net(11,826)(16,617)(31,881)(26,406)
Other income  40,072 7 
(Loss) income before income taxes(4,407)(32,734)24,251 (29,315)
Income tax benefit1 7,925 455 14,866 
Net (loss) income from continuing operations(4,406)(24,809)24,706 (14,449)
(Loss) income from discontinued operations, net of tax(54)166 (3,516)(25,550)
Net (loss) income and comprehensive (loss) income$(4,460)$(24,643)$21,190 $(39,999)
Weighted average shares outstanding:
Basic13,268 13,033 13,194 12,992 
Diluted13,268 13,033 13,797 12,992 
(Loss) income per share from continuing operations:  
Basic$(0.33)$(1.90)$1.87 $(1.11)
Diluted$(0.33)$(1.90)$1.79 $(1.11)
(Loss) income per share from discontinued operations:
Basic$ $0.01 $(0.27)$(1.97)
Diluted$ $0.01 $(0.25)$(1.97)
Net (loss) income per share:
Basic$(0.34)$(1.89)$1.61 $(3.08)
Diluted$(0.34)$(1.89)$1.54 $(3.08)
 
The accompanying notes to consolidated financial statements are an integral part of these statements.
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LENDINGTREE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 (Unaudited) 
 September 30,
2021
December 31, 2020
 (in thousands, except par value and share amounts)
ASSETS:  
Cash and cash equivalents$215,277 $169,932 
Restricted cash and cash equivalents108 117 
Accounts receivable (net of allowance of $1,506 and $1,402, respectively)
131,705 89,841 
Prepaid and other current assets25,348 27,949 
Current assets of discontinued operations 8,570 
Total current assets372,438 296,409 
Property and equipment (net of accumulated depreciation of $25,962 and $20,238, respectively)
74,929 62,381 
Operating lease right-of-use assets79,355 84,109 
Goodwill420,139 420,139 
Intangible assets, net95,534 128,502 
Deferred income tax assets96,679 96,224 
Equity investment121,253 80,000 
Other non-current assets7,109 5,334 
Non-current assets of discontinued operations17,093 15,892 
Total assets$1,284,529 $1,188,990 
LIABILITIES:  
Current portion of long-term debt$163,856 $ 
Accounts payable, trade4,198 10,111 
Accrued expenses and other current liabilities114,664 101,196 
Current liabilities of discontinued operations13 536 
Total current liabilities282,731 111,843 
Long-term debt471,991 611,412 
Operating lease liabilities98,314 92,363 
Non-current contingent consideration 8,249 
Other non-current liabilities411 362 
Total liabilities853,447 824,229 
Commitments and contingencies (Note 14)
SHAREHOLDERS' EQUITY:  
Preferred stock $.01 par value; 5,000,000 shares authorized; none issued or outstanding
  
Common stock $.01 par value; 50,000,000 shares authorized; 15,969,376 and 15,766,193 shares issued, respectively, and 13,328,058 and 13,124,875 shares outstanding, respectively
160 158 
Additional paid-in capital1,233,802 1,188,673 
Accumulated deficit(619,719)(640,909)
Treasury stock; 2,641,318 shares
(183,161)(183,161)
Total shareholders' equity431,082 364,761 
Total liabilities and shareholders' equity$1,284,529 $1,188,990 
 
The accompanying notes to consolidated financial statements are an integral part of these statements.
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LENDINGTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
 (Unaudited)
 
  Common Stock Treasury Stock
 TotalNumber
of Shares
AmountAdditional
Paid-in
Capital
Accumulated
Deficit
Number
of Shares
Amount
 (in thousands)
Balance as of December 31, 2020$364,761 15,766 $158 $1,188,673 $(640,909)2,641 $(183,161)
Net income and comprehensive income19,049 — — — 19,049 — — 
Non-cash compensation16,436 — — 16,436 — — — 
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes(4,801)31 — (4,801)— — — 
Other(2)— — (2)— — — 
Balance as of March 31, 2021$395,443 15,797$158 $1,200,306 $(621,860)2,641$(183,161)
Net income and comprehensive income6,601 — — — 6,601 — — 
Non-cash compensation18,294 — — 18,294 — — — 
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes30 159 2 28 — — — 
Balance as of June 30, 2021$420,368 15,956 $160 $1,218,628 $(615,259)2,641 $(183,161)
Net loss and comprehensive loss(4,460)— — — (4,460)— — 
Non-cash compensation17,074 — — 17,074 — — — 
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes(1,894)13  (1,894)— — — 
Other(6)— — (6)— — — 
Balance as of September 30, 2021$431,082 15,969 $160 $1,233,802 $(619,719)2,641 $(183,161)

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  Common Stock Treasury Stock
 TotalNumber
of Shares
AmountAdditional
Paid-in
Capital
Accumulated
Deficit
Number
of Shares
Amount
 (in thousands)
Balance as of December 31, 2019$402,326 15,677 $157 $1,177,984 $(592,654)2,641 $(183,161)
Net income and comprehensive income14,401 — — — 14,401 — — 
Non-cash compensation11,917 — — 11,917 — — — 
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes(5,087)27 — (5,087)— — — 
Other — — (1)1 — — 
Balance as of March 31, 2020$423,557 15,704$157 $1,184,813 $(578,252)2,641$(183,161)
Net loss and comprehensive loss(29,757)— — — (29,757)— — 
Non-cash compensation13,158 — — 13,158 — — — 
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes(981)27 — (981)— — — 
Balance as of June 30, 2020$405,977 15,731 $157 $1,196,990 $(608,009)2,641 $(183,161)
Net loss and comprehensive loss(24,643)— — — (24,643)— — 
Non-cash compensation14,161 — — 14,161 — — — 
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes4,646 28 1 4,645 — — — 
Issuance of 0.50% Convertible Senior Notes, net
116,300 — — 116,300 — — — 
Repurchase of 0.625% Convertible Senior Notes, net
(107,882)— — (107,882)— — — 
Convertible note hedge transactions(14,379)— — (14,379)— — — 
Warrant transactions(33,171)— — (33,171)— — — 
Balance as of September 30, 2020$361,009 15,759 $158 $1,176,664 $(632,652)2,641 $(183,161)
 
The accompanying notes to consolidated financial statements are an integral part of these statements.
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LENDINGTREE, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months Ended
September 30,
 20212020
 (in thousands)
Cash flows from operating activities attributable to continuing operations:  
Net income (loss) and comprehensive income (loss)$21,190 $(39,999)
Less: Loss from discontinued operations, net of tax3,516 25,550 
Income (loss) from continuing operations24,706 (14,449)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities attributable to continuing operations:
Loss on impairments and disposal of assets2,651 686 
Amortization of intangibles32,967 40,603 
Depreciation12,969 10,463 
Non-cash compensation expense51,804 39,236 
Deferred income taxes(455)(15,489)
Change in fair value of contingent consideration(8,249)7,711 
Unrealized gain on investments(40,072) 
Bad debt expense1,823 1,314 
Amortization of debt issuance costs3,756 2,241 
Write-off of previously-capitalized debt issuance costs1,066  
Amortization of debt discount22,297 12,429 
Loss on extinguishment of debt 7,768 
Reduction in carrying amount of ROU asset, offset by change in operating lease liabilities13,015 2,490 
Changes in current assets and liabilities:
Accounts receivable(43,688)15,541 
Prepaid and other current assets(2,762)(335)
Accounts payable, accrued expenses and other current liabilities7,537 (9,733)
Current contingent consideration (2,670)
Income taxes receivable10,322 65 
Other, net(794)(1,655)
Net cash provided by operating activities attributable to continuing operations88,893 96,216 
Cash flows from investing activities attributable to continuing operations:
Capital expenditures(30,515)(20,386)
Equity investment(1,180)(80,000)
Net cash used in investing activities attributable to continuing operations(31,695)(100,386)
Cash flows from financing activities attributable to continuing operations:
Payments related to net-share settlement of stock-based compensation, net of proceeds from exercise of stock options(6,666)(1,421)
Proceeds from the issuance of 0.50% Convertible Senior Notes
 575,000 
Repurchase of 0.625% Convertible Senior Notes
 (233,862)
Payment for convertible note hedge on the 0.50% Convertible Senior Notes
 (124,200)
Termination of convertible note hedge on the 0.625% Convertible Senior Notes
 109,881 
Proceeds from the sale of warrants related to the 0.50% Convertible Senior Notes
 61,180 
Termination of warrants related to the 0.625% Convertible Senior Notes
 (94,292)
Net repayment of revolving credit facility (75,000)
Payment of debt issuance costs(5,995)(16,398)
Payment of original issue discount on undrawn term loan(2,500) 
Contingent consideration payments (3,330)
Other financing activities(31)(183)
Net cash (used in) provided by financing activities attributable to continuing operations(15,192)197,375 
Total cash provided by continuing operations42,006 193,205 
Discontinued operations:
Net cash provided by (used in) operating activities attributable to discontinued operations3,330 (66,171)
Total cash provided by (used in) discontinued operations3,330 (66,171)
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents45,336 127,034 
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period170,049 60,339 
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period$215,385 $187,373 
 
The accompanying notes to consolidated financial statements are an integral part of these statements.
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LENDINGTREE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



NOTE 1—ORGANIZATION
Company Overview
LendingTree, Inc. is the parent of LT Intermediate Company, LLC, which holds all of the outstanding ownership interests of LendingTree, LLC, and LendingTree, LLC owns several companies (collectively, "LendingTree" or the "Company").

LendingTree operates what it believes to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes and other related offerings. The Company primarily seeks to match in-market consumers with multiple providers on its marketplace who can provide them with competing quotes for loans, deposit products, insurance or other related offerings they are seeking. The Company also serves as a valued partner to lenders and other providers seeking an efficient, scalable and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these providers.

The consolidated financial statements include the accounts of LendingTree and all its wholly-owned entities, except Home Loan Center, Inc. ("HLC") subsequent to its bankruptcy filing on July 21, 2019 which resulted in the Company's loss of a controlling interest in HLC under applicable accounting standards. The HLC Bankruptcy case was closed on July 14, 2021. See Note 17—Discontinued Operations for additional information. Intercompany transactions and accounts have been eliminated.
Discontinued Operations
The LendingTree Loans business, which consisted of originating various consumer mortgage loans through HLC (the "LendingTree Loans Business"), is presented as discontinued operations in the accompanying consolidated balance sheets, consolidated statements of operations and comprehensive income and consolidated cash flows for all periods presented. The notes accompanying these consolidated financial statements reflect the Company's continuing operations and, unless otherwise noted, exclude information related to the discontinued operations. See Note 17Discontinued Operations for additional information.
Basis of Presentation
The accompanying unaudited interim consolidated financial statements as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In the opinion of management, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or any other period. The accompanying consolidated balance sheet as of December 31, 2020 was derived from audited financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2020 (the "2020 Annual Report"). The accompanying consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in the 2020 Annual Report. 
NOTE 2—SIGNIFICANT ACCOUNTING POLICIES
Accounting Estimates
Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates. 
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LENDINGTREE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; fair value of assets acquired in a business combination; contingent consideration related to business combinations; litigation accruals; HLC ownership related claims; contract assets; various other allowances, reserves and accruals; assumptions related to the determination of stock-based compensation; and the determination of right-of-use assets and lease liabilities. 
The Company considered the impact of the COVID-19 pandemic on the assumptions and estimates used when preparing its financial statements including, but not limited to, the allowance for doubtful accounts, valuation allowances, contract asset and contingent consideration. These assumptions and estimates may change as new events occur and additional information is obtained. If economic conditions caused by the COVID-19 pandemic do not recover as currently estimated by management, such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity.
Certain Risks and Concentrations
LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud.
Financial instruments, which potentially subject the Company to concentration of credit risk at September 30, 2021, consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company requires certain Network Partners to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding.
Due to the nature of the mortgage lending industry, interest rate fluctuations may negatively impact future revenue from the Company's marketplace.
Lenders and lead purchasers participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders and lead purchasers can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans and other products from Network Partners without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the Network Partners whose loans and other financial products are offered on its online marketplace, consumers may obtain offers from these Network Partners without using its service.
Other than a support services office in India, the Company's operations are geographically limited to and dependent upon the economic condition of the United States.
Litigation Settlements and Contingencies
Litigation settlements and contingencies consists of expenses related to actual or anticipated litigation settlements.
Recently Adopted Accounting Pronouncements
In May 2021, the FASB issued ASU 2021-04 to clarify and reduce diversity in accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange. The amendments clarify that a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange should be accounted for as an exchange of the original instrument for a new instrument. This ASU is effective for annual and interim reporting periods beginning after December 15, 2021. Early adoption is permitted, including adoption in interim periods. The amendments should be applied prospectively to modifications or exchanges occurring on or after the date of adoption. The Company adopted ASU 2021-04 in the second quarter of 2021.
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, Income Taxes, and clarifies certain aspects of the current guidance to improve consistency among reporting entities. This ASU is effective for annual and interim reporting periods beginning after December 15, 2020. Early adoption was permitted, including adoption in interim periods. Entities electing early adoption were required to adopt all amendments in the same period. Most amendments require prospective application while others are to be applied on a retrospective basis for all
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LENDINGTREE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company adopted ASU 2019-12 in the first quarter of 2021. The amendments applicable to the Company required prospective application, and do not have material impacts to its consolidated financial statements.
Recently Issued Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for convertible instruments, amends the derivatives scope exception guidance for contracts in an entity’s own equity, and amends the related earnings-per-share guidance. This ASU is effective for annual and interim reporting periods beginning after December 15, 2021. Early adoption is permitted for fiscal years beginning after December 15, 2020, including adoption in interim periods. An entity should adopt the guidance as of the beginning of its annual fiscal year. An entity may adopt the amendments through either a modified retrospective method of transition or a fully retrospective method of transition. The Company expects the amendments to impact its convertible senior notes and warrants issued and is evaluating the impact this ASU will have on its consolidated financial statements.
NOTE 3—REVENUE
Revenue is as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Home$112,422 $78,859 $345,408 $232,156 
Credit cards26,914 6,656 66,975 65,436 
Personal loans33,803 12,505 73,879 52,841 
Other Consumer39,294 29,216 92,740 87,142 
Total Consumer100,011 48,377 233,594 205,419 
Insurance84,837 92,500 260,714 248,156 
Other180 515 498 1,930 
Total revenue$297,450 $220,251 $840,214 $687,661 
The Company derives its revenue primarily from match fees and closing fees. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied and promised services have transferred to the customer. The Company's services are generally transferred to the customer at a point in time.
Revenue from Home products is primarily generated from upfront match fees paid by mortgage Network Partners that receive a loan request, and in some cases upfront fees for clicks or call transfers. Match fees and upfront fees for clicks and call transfers are earned through the delivery of loan requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a loan request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a loan request to the customer.
Revenue from Consumer products is generated by match and other upfront fees for clicks or call transfers, as well as from closing fees, approval fees and upfront service and subscription fees. Closing fees are derived from lenders on certain auto loans, business loans, personal loans and student loans when the lender funds a loan with the consumer. Approval fees are derived from credit card issuers when the credit card consumer receives card approval from the credit card issuer. Upfront service fees and subscription fees are derived from consumers in the Company's credit services product. Upfront fees paid by consumers are recognized as revenue over the estimated time the consumer will remain a customer and receive services. Subscription fees are recognized over the period a consumer is receiving services.
The Company recognizes revenue on closing fees and approval fees at the point when a loan request or a credit card consumer is delivered to the customer. The Company's contractual right to closing fees and approval fees is not contemporaneous with the satisfaction of the performance obligation to deliver a loan request or a credit card consumer to the customer. As such, the Company records a contract asset at each reporting period-end related to the estimated variable
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LENDINGTREE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

consideration on closing fees and approval fees for which the Company has satisfied the related performance obligation but are still pending the loan closing or credit card approval before the Company has a contractual right to payment. This estimate is based on the Company's historical closing rates and historical time between when a consumer request for a loan or credit card is delivered to the lender or card issuer and when the loan is closed by the lender or approved by the card issuer.
Revenue from the Company's Insurance products is primarily generated from upfront match fees and upfront fees for website clicks or fees for calls. Match fees and upfront fees for clicks and call transfers are earned through the delivery of consumer requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a consumer request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a consumer request to the customer.
The contract asset recorded within prepaid and other current assets on the consolidated balance sheets related to estimated variable consideration in the Company's Consumer business was $7.9 million and $6.4 million at September 30, 2021 and December 31, 2020, respectively.
The contract liability recorded within accrued expenses and other current liabilities on the consolidated balance sheets related to upfront fees paid by consumers in the Company's Consumer business was $1.0 million and $0.7 million at September 30, 2021 and December 31, 2020, respectively. During the first nine months of 2021, the Company recognized revenue of $0.7 million that was included in the contract liability balance at December 31, 2020. During the first nine months of 2020, the Company recognized revenue of $0.6 million that was included in the contract liability balance at December 31, 2019.
Revenue recognized in any reporting period includes estimated variable consideration for which the Company has satisfied the related performance obligations but are still pending the occurrence or non-occurrence of a future event outside the Company's control (such as lenders providing loans to consumers or credit card approvals of consumers) before the Company has a contractual right to payment. The Company recognized increases to such revenue from prior periods of $0.4 million and $0.6 million in the third quarters of 2021 and 2020, respectively.
NOTE 4—CASH AND RESTRICTED CASH
Total cash, cash equivalents, restricted cash and restricted cash equivalents consist of the following (in thousands):
September 30,
2021
December 31, 2020
Cash and cash equivalents$215,277 $169,932 
Restricted cash and cash equivalents108 117 
Total cash, cash equivalents, restricted cash and restricted cash equivalents$215,385 $170,049 
NOTE 5—ALLOWANCE FOR DOUBTFUL ACCOUNTS
Accounts receivable are stated at amounts due from customers, net of an allowance for doubtful accounts.
The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, previous loss history, current and expected economic conditions and the specific customer's current and expected ability to pay its obligation. Accounts receivable are considered past due when they are outstanding longer than the contractual payment terms. Accounts receivable are written off when management deems them uncollectible.
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LENDINGTREE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

A reconciliation of the beginning and ending balances of the allowance for doubtful accounts is as follows (in thousands):
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Balance, beginning of the period$1,473 $1,756 $1,402 $1,466 
Charges to earnings678 365 1,823 1,314 
Write-off of uncollectible accounts receivable(645)(483)(1,724)(1,152)
Recoveries collected  5 10 
Balance, end of the period$1,506 $1,638 $1,506 $1,638 
NOTE 6—GOODWILL AND INTANGIBLE ASSETS
The balance of goodwill, net and intangible assets, net is as follows (in thousands):
 September 30,
2021
December 31, 2020
Goodwill$903,227 $903,227 
Accumulated impairment losses(483,088)(483,088)
Net goodwill$420,139 $420,139 
Intangible assets with indefinite lives$10,142 $10,142 
Intangible assets with definite lives, net85,392 118,360 
Total intangible assets, net$95,534 $128,502 
Goodwill and Indefinite-Lived Intangible Assets
The Company's goodwill at each of September 30, 2021 and December 31, 2020 consists of $59.3 million associated with the Home segment, $166.1 million associated with the Consumer segment, and $194.7 million associated with the Insurance segment.
Intangible assets with indefinite lives relate to the Company's trademarks.
Intangible Assets with Definite Lives
Intangible assets with definite lives relate to the following (in thousands):
 CostAccumulated
Amortization
Net
Technology$87,700 $(64,069)$23,631 
Customer lists77,300 (23,141)54,159 
Trademarks and tradenames16,000 (11,326)4,674 
Website content27,100 (24,172)2,928 
Balance at September 30, 2021$208,100 $(122,708)$85,392 
 CostAccumulated
Amortization
Net
Technology$87,700 $(48,166)$39,534 
Customer lists77,300 (18,560)58,740 
Trademarks and tradenames17,200 (9,947)7,253 
Website content43,200 (30,367)12,833 
Balance at December 31, 2020$225,400 $(107,040)$118,360 
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LENDINGTREE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on balances as of September 30, 2021, future amortization is estimated to be as follows (in thousands):
 Amortization Expense
Remainder of current year$9,770 
Year ending December 31, 202225,256 
Year ending December 31, 20238,602 
Year ending December 31, 20246,747 
Year ending December 31, 20256,259 
Thereafter28,758 
Total intangible assets with definite lives, net$85,392 
NOTE 7—EQUITY INVESTMENT
On February 28, 2020, the Company acquired an equity interest in Stash Financial, Inc. (“Stash”) for $80.0 million. On January 6, 2021, the Company acquired additional equity interest for $1.2 million. Stash is a consumer investing and banking platform. Stash brings together banking, investing, and financial services education into one seamless experience offering a full suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back® rewards program.
The Stash equity securities do not have a readily determinable fair value and, upon acquisition, the Company elected the measurement alternative to value its securities. The Stash equity securities will be carried at cost and subsequently marked to market upon observable market events with any gains or losses recorded to the consolidated statement of operations and comprehensive income. During the first nine months of 2021, the Company recorded a gain on the investment in Stash of $40.1 million as a result of an adjustment to the fair value of the Stash equity securities based on observable market events, which is included within other income on the consolidated statement of operations and comprehensive income. As of September 30, 2021, there have been no impairments to the acquisition cost of the Stash equity securities.
See Note 18—Subsequent Event for additional information.
NOTE 8—BUSINESS ACQUISITIONS
Changes in Contingent Consideration
In 2018, the Company acquired all of the outstanding equity interests of QuoteWizard.com, LLC (“QuoteWizard”) and Ovation Credit Services, Inc. (“Ovation”). During 2020, the Company made the final earnout payment related to the achievement of certain defined operating metrics for Ovation.
In 2017, the Company acquired certain assets of Snap Capital LLC, which does business under the name SnapCap (“SnapCap”). During 2020, the Company made the final earnout payments related to the achievement of certain defined earnings targets for SnapCap.
The Company could make an earnout payment ranging from zero to $23.4 million based on the achievement of certain defined performance targets for QuoteWizard during the final earnout period ending October 31, 2021. As of September 30, 2021, this remaining earnout payment is not expected to be made and no liability has been recorded in the accompanying consolidated balance sheet. See Note 15—Fair Value Measurements for additional information.
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LENDINGTREE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Changes in the fair value of contingent consideration is summarized as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
QuoteWizard$(196)$6,568 $(8,249)$6,364 
Ovation 90  1,270 
SnapCap   77 
Total changes in fair value of contingent consideration$(196)$6,658 $(8,249)$7,711 
Any differences in the actual contingent consideration payments will be recorded in operating income in the consolidated statements of operations and comprehensive income.
NOTE 9—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following (in thousands):
 September 30,
2021
December 31, 2020
Accrued advertising expense$64,932 $54,045 
Accrued compensation and benefits14,951 14,081 
Accrued professional fees3,727 1,869 
Customer deposits and escrows7,401 8,153 
Contribution to LendingTree Foundation3,333 3,333 
Current lease liabilities8,579 5,375 
Other11,741 14,340 
Total accrued expenses and other current liabilities$114,664 $101,196 
NOTE 10—SHAREHOLDERS' EQUITY 
Basic and diluted income per share was determined based on the following share data (in thousands):
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Weighted average basic common shares13,268 13,033 13,194 12,992 
Effect of stock options  452  
Effect of dilutive share awards  96  
Effect of Convertible Senior Notes and warrants  55  
Weighted average diluted common shares13,268 13,033 13,797 12,992 
For the third quarter of 2021, as well as the third quarter and first nine months of 2020, the Company had losses from continuing operations and, as a result, no potentially dilutive securities were included in the denominator for computing diluted loss per share, because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding was used to compute loss per share. Approximately 0.4 million shares related to potentially dilutive securities were excluded from the calculation of diluted loss per share for the third quarter of 2021 because their inclusion would have been anti-dilutive. Approximately 1.3 million and