Doug Lebda: So in terms of metrics and — Scott, or Trent feel free to add in. From a client’s perspective, you need to look at their cost per funded loan. What is it getting? What is it costing them to get what they’re looking for, which is a new loan, we look at that across all of our clients. In mortgage, like prior quarters, that’s been too high. That’s nearly because consumers don’t get as much of a benefit from refinancing, obviously, at much higher rates. So you look at your cost per funded loan or your cost per policy in insurance. And then it’s really the CPA, what’s it costing us to get somebody to come and want a transaction? And then your RPL. What is your revenue that you’re getting from that introduction on the other side, and then that times volume, is what drives the whole thing.
And that’s, that’s the marketing flywheel that that Scott talks about. And then the only other thing I would add on top of that is, with the launch of spring on the web, and with the upcoming launch of it, this is the new name for my LendingTree with the launch of the app and we think in November, plus TreeQual, we think we can move those numbers up appreciably. Go ahead, Scott.
Scott Peyree: Okay, yes. Just throw in another key metric, as I alluded earlier, that we’re going to be looking at what I like to call it the leaky bucket. But at the end of the day, it’s like, looking at consumers that are falling out of a funnel currently, a quick, easy example of, someone comes looking for a personal loan, they may be looking for a personal loan to go on a vacation to the Bahamas. 18 months ago, you could get a $10,000 personal loan for that. Today, it’s hard to get a personal loan for that. But they may be a homeowner with a good credit and perfect home equity candidate. So like really identifying how large is the leaky bucket and how good are we at matching them to other products that can get them the money they’re seeking.
Doug Lebda: Trent?
Trent Ziegler: Yes, and then on the Q4 guide, Youssef, of I mean, I guess just framing it up kind of sequentially relative to q3. We expect insurance should be pretty stable Q3 into Q4. We do expect some softness to come from both home and consumer. I mean in consumer that’s where we’ve typically seen the most pronounced seasonality. Historically, volumes just tend to kind of drop off in Q4 and then begin to ramp back up in Q1. And then at home, I mean we’ve all seen what’s going on sort of in the rate environment. We’ve seen home equities slowed down a little bit as a source of strength given the rate environment, and just the conversion aspects of that product. And so a little bit of weakness in both on the consumer pretty stable in insurance.
Doug Lebda: And the only thing I’d add is, over the last 25 27 years, like I’ve said this, pretty much every year that Q4, the consumer behavior on the lending side, in particular is not in the borrowing mindset, they’re more in ascending mindset, and then typically wake up in January and say, oh, shoot, what did I do? And then they start to get their financial house in order. And that’s when we see a resumption of call a normalcy.
Youssef Squali: Okay, good color. Thank you, all.
Operator: Thank you. One moment for our next question please. Our next question comes from the line of Robert Wildhack, with Autonomous Research, your line is now open.
Rob Wildhack : Good morning, guys. Wanted to go back to an earlier question. Can you speak to how the changes you’re making to TreeQual will lead the position to or position relative to competing products out there?
Doug Lebda: I’ll let Scott chime in on some of the details of it. And some of the stuff we’re not going to want to give out for competitive reasons. But we think this will be as good and probably better than any of the competing products out there. The notion and credit card as Scott refer to the leaky bucket has a hugely leaky bucket because credit card companies taking in subprime and near prime only approve about one in 10 of the people that we send them because they’re coming — because they’re self-grading their credit, and they don’t always self-grade themselves accurately. So this is going to enable us to drive that number up in terms of the approval rate, but it also enabled us to give the consumer a much, much better experience. Scott, you want to talk about the competitive — where do you think we stand versus competitors in TreeQual?
Scott Peyree: Yes, I would say just, there’s the two things that our product that I would really highlight, which I think is advantageous for us, I mean, the first thought, the fact that we’re working through a third-party credit bureau, you know, which a lot of our clients to consider, you know, kind of an independent party in this transaction, that by the way, all the issuers are already working with. So, A makes integrations way easier way easier to onboard with us, if they don’t have to onboard with a custom system that we’ve built in-house, because we’re both working with a mutual third party there. And B, there’s that level of trust of like, we’re not necessarily going to take specific information from their credit boxes and underwriting criteria and use it for our own purposes and fit.
And so I think, at that level, it will allow us to bring on issuers at a really rapid pace, and they like this model and how to spend money with us. And then on the other side, if you don’t — this can be a live product of someone just on the website that can actively go through this. It does not have to be a logged in user. It’s definitely something that we can use for our login users and we will use for our login users. But this is just a live pre-approval in real time these consumers can get, which is which I feel is a really advantageous component to this.
Rob Wildhack: That’s great. Thanks. And then can you just give some more detail on the investment impairment in the quarter? What was that in relation to?
Trent Ziegler: Yes, Rob, it’s Trent. So there were two, one was related to our investment in Stash. There was an observable event that caused us to relook at that valuation, and that shouldn’t come as a huge surprise to anyone if you’ve followed the consumer FinTech space at all right? I mean, clearly, we marked that up very considerably, when we sold our position of — sold part of our position. I think it was fall of ’21, and now multiples in that space have just come crashing back down to reality. And so that’s what’s being reflected in our mark. The other write down was related to our carrying value of goodwill. And that is really just a function of kind of what we’ve observed in the market, right? It’s not really a call on our long term outlook for any of our various businesses, it’s really does the stock price support the level of goodwill that you’ve got on the books.
