And in our scenario, unfortunately, it doesn’t. And so we again, had a third party come in and look at the different segments. In this case, the impairment was attributed to the insurance business. That’s largely because we built up goodwill as we did all those acquisitions from 2015 through 2019. When we moved from one reportable segment to three reportable segments, insurance got the brunt of the carrying value of that goodwill. And so we’d have a higher bar to kind of justify the carrying value. And so again, we have to test that goodwill annually. We went through that process with a third party and took a modest write down against the insurance segment.
Rob Wildhack: Okay, thanks. Just on that last piece. Is it safe to assume that the majority of the goodwill impairment didn’t come from your long-term outlook or projections for the business, but more from maybe the comparables or discount rates, things like that?
Trent Ziegler: That’s right. So its there will be more details in the 10-Q, when it comes out. But it’s like 50%, based on long term outlook, 30% based on observable sort of market events, right. And as you pointed out, clearly the discount rate has gone up, stock price has come down, multiples across the space has come down. And so that’s really what’s reflected.
Rob Wildhack: Got it. Thank you, guys.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jamie Friedman with Susquehanna International Group. Your line is now open.
Jamie Friedman : Hi. So good morning. So it’s helpful to have these comments, early comments on 2024 in insurance. I’m just looking through the letter. And it sounds like you’re optimistic about potential growth in that segment. I was — I know it’s early, but I was just wondering if you have any high level comments on the potential for the other segments as well?
Doug Lebda: I don’t think for 2024 anything that we’re willing to reveal yet. However, I do think cards will be better. And Scott, you should add on, and Trent, feel free to. Cards will be better because of TreeQual. Personal ones, and the other ones will be better because of the cross selling that Scott referred to. And that all obviously all depends on client demand. And you just heard, the early stuff on about client demand. I wouldn’t — I’m not expecting much tremendous growth out of home, as until the log jam in the home market, you know, really abates, you’ve got people who don’t want to sell homes and people who don’t want to buy homes now, there’s always a market to make. But in home, the consumer benefit, there’s just not as much of a consumer benefit.
And or they can’t afford, you know what they see. So you have a leaky or bucket in home. That said, from a product standpoint, we’ve planned out our product pipeline for Q4, and Q1. And we are making some improvements would hope to grip and doing a lot of testing around that product to come up with new consumer experiences. And so that is that is very helpful for that one. Scott, what else would you add?
Scott Peyree: Yes, I would just hit on, two very large categories SMB, and personal loans being I would start with there’s a lot of remain a lot of consumer demand for those products and a high level of client demand, even though the credit criteria is tightened, the loans they are riding, they’re happy to ride and they are indicating they want to write more and more of those loans with us. So like, as we get better at fixing that leaky bucket and cross selling effectively increasing our monetization, I think we can definitely see growth in those categories next year, just based off of high consumer demand for those products.
Jamie Friedman: Okay, thanks for that. And then Trent was interpreting some of your prior comments about margin. So you’ve gone actually from the low single digits into the teens in terms of adjusted EBITDA margin. Do you view that as this structurally sustainable for the company or asked another way? Is there any reason why that — where you are now would not be structurally sustainable?
Trent Ziegler: We have no reason to believe that it’s not sustainable. I mean, as I said, we’ve done a lot of thought work on the cost structure. We’ve gotten it in a very good place and then we think it’s scalable as the top line kind of influx and moves in the right direction as we get into next year.
Jamie Friedman: Got it. Okay. Thank you, all.
Operator: Thank you. One moment, our final question will come from the line of Melissa Wedel with JP Morgan, your line is now open.
Melissa Wedel: Good morning. Thanks for taking my call. I was hoping to circle back to some of your comments about TreeQual. You talked, I think Scott talked about expanding product offering to additional customers, providing a subprime and near prime product or solution for customers through that TreeQual initiative. I just wanted to clarify, is that something that is entirely focused on subprime and near prime? Or would that extend into the prime offering as well?
Doug Lebda: Yes, no, it’s not entirely focused on subprime and near prime, that’s just where the biggest opportunity is. And let’s call that the biggest leak in the credit card bucket.
Scott Peyree: Yes, and I would add, our prime customers are very, very interested in integrating with this, we’ve just kind of had to focus like as we line people up, we want to get to subprime and near prime first, because that’s a new product offering for our customers. But Prime customers definitely want to integrate with this. And I would also say a lot of our personal loan customers want to integrate with this as well for the personal loan product.
Melissa Wedel: Okay, that’s helpful. And then you did — I think in the shareholder letter you mentioned that, it is being tested right now with a handful of partners on the platform. Could you give us a sense of what that testing timeline is like, and when that might be rolled out more broadly?
Doug Lebda: Scott, do you want to take that.
