Scott Peyree: Yes, I mean, I might just come in and honestly hype it up a little bit more. Like I do believe we are going to see sequential revenue improvement. And just in almost every single major industry, we operate it, with the exception of maybe credit cards. And so we have small businesses growing, personal loans are growing, deposits, auto loans, mortgage home equity. I mean we’re seeing growth across the board and it’s a lot of work and it’s hard work in this down lending environment, but we do believe we’ve done a lot of the proper things to be able to take some market share in the important media marketplaces and drive more traffic and have the distribution with our clients to deliver that traffic. So I’m feeling pretty good about pretty broad-based revenue growth from Q1 to Q2.
Melissa Wedel: Thanks for that. Trent, I just asked too, is there typically anything we should think about in terms of seasonality or consumer behavior around home equity. Certainly understand there’s a lot of HPA embedded in housing prices right now, but do you typically see an increase in demand for that type of product in the spring summer months? Thanks.
Trent Ziegler: We don’t normally see a lot of seasonality in home equity. I’d say that’s more like one of our normal products, that Q4 would be more seasonally light and the rest of them would be seasonally normal. There’s not a lot of seasonality in that product. It’s really just based on consumer needs.
Melissa Wedel: Got it. Thank you.
Scott Peyree: Probably see more seasonality in personal loans. You would see some in home equity, but I think a lot more of the growth in home equity is just more of the fact that buying and purchasing homes has come to a crashing halt. So just a lot of consumers are turning more to home equity, remodeling or whatever versus buying and selling. So we’re seeing growth there because of that.
Operator: Our next question comes from Mike Grondahl from Northern Securities.
Mike Grondahl: Hey, thanks guys. Two questions. One, could you kind of talk about the significance of TreeQual getting into BofA on the credit card side? Kind of what’s your goal for that? And then secondly, did you guys disclose home equity revenues or credit card revenues in the first quarter? Thanks.
Doug Lebda: I’ll take part of the first one and let Scott add in on that. Getting BofA on TreeQual is fantastic from the standpoint that we’ve landed a significant card issuer and gotten through the integration and that will lead to a better consumer experience. And from a financial standpoint, to get to the point where you can give multiple offers to all consumers, you probably need 20 of those types of issuers of different sizes. So we’ve got a lot of interest, we’ve got a good pipeline, we have people live, the product works, consumers like it, clients like it, but it’s got to get to enough scale that we would be able to supplement and or replace the crazy click walls of the credit card business.
Trent Ziegler: Yes, and then Mike, on your second question, we did disclose revenue for home equity, it was in the press release, $20.8 million in the quarter. We did not disclose credit card revenue and our kind of guidepost is we disclosed anything that is 10% or more of total revenue.
Operator: And our next question comes from [Madeline Zhao] from Susana International Group.
Unidentified Analyst: Hi, thanks for taking my question. Can we just walk through the maps of the 2025 convertible notes? Because it looks like there’s still a significant gap between cash on the balance sheet once you take out about $50 million in cash being necessary to keep on the balance sheet and the remaining balance of $284 million of the July 2025 convertible notes. Thanks.
Trent Ziegler: Yes, I mean, $175 million of new money. There’s more like $60 million to $70 million of excess cash flow on the balance sheet that we feel like we could put to work, yes, and then we think we can free cash flow the remaining balance over the course of the next 15 months.
Operator: Thank you. And I am showing no further questions. I would now like to turn the call back over to Doug Lebda, CEO, for closing remarks.
A – Doug Lebda: Thank you. And thank you all for being here. Look, over the last several years, they have not been easy for us and certainly not easy for you as shareholders. The business faced RPLs and demand pulling back from clients which then forced us to have to obviously right size the business and we had a looming debt repayment. However, from those chaotic couple years actually came some very, very good things. Today in operations, operational improvement with Scott and his team are gripping and our operators are working much more closely with finance and other areas of the company and really approaching things together. On product and tech, we are now able to work on discrete key projects that we hope will have positive financial returns.
We’ve got a new product process and a number of new people there and I’m excited to be showing you some results from that in the future and I think that’s shown with TreeQual. Our clients are optimistic and strong financially and I think that bodes well for the future. Our company and all of our employees are fired up to be taking the hill to win and I want to thank you all. I want to thank you for your sticktoitiveness with LendingTree and I look forward to showing you guys some continued growth and profitability as this company plays to win in the future. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect. We’ll see you next time.
