Rocket Companies (RKT) 2 May 242024 Q1 Earnings call transcript

Thank you for standing by. My name is Jay, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rocket Companies, Inc.

First Quarter 2024 Earnings Call. [Operator Instructions].

to Investor conference Relations. like Ng, to now of Head would turn over the Sharon I

You begin. may

Good afternoon, first everyone, Rocket Brian for Rocket Brown. and us Companies thank you Earnings With and Call for CEO, Conference Varun covering our afternoon the this quarter Krishna; XXXX. Companies of are joining CFO, us

website presentation. Earlier issued our Info. is website our on under today, first Investor which investor we at available Also is our on available quarter earnings an rocketcompanies.com release,

turn provide I Varun, first me information Before as over things let On our well quickly to disclaimers. our our today's go financial quarter regarding you over performance as call, outlook. we with

actual includes This detailed to from subject These uncertainties. materially update risks factors assumptions results the as further forward-looking expectations for are filings and cause these risk mentioned the statements new you information law. as to a statements. encourage contained events, to conference obligation of today. We the no or differ except and and call our required to in these we consider result undertake of by discussion could uncertainties risks a SEC statements that We

on being posted the This and call recording today. our broadcast Investor A is call is website. accessible later Relations be online of will

today for earlier today commentary issued results reported our can with metrics well between will earnings the be our non-GAAP release filings Our also in and include Reconciliations non-GAAP as measures. GAAP SEC. found our in financial as

turn Varun? us I'll to get started. And Krishna things Varun over with to that,

Companies Earnings you thank Quarter Thank Rocket Call the of everyone, you, First Sharon. and afternoon, joining Good for the XXXX. for

joining call earnings the in third company my is September. since This

mission part more time, this achieved than now. what relevant with helping and important, I everyone I it has in Never noble proud the this of team reflect I so to the with our has only you're more company home. clear a be a together at it's last our on short beginning of As and mission am right of been of evident months, filled X is am journey. gratitude

we the achieving and win absolute. and results executing gaining to organization, and momentum long short We're to an term, our while is led game, both for impressive playing are strategically planning Rocket. the some and and As has determination long success, the this for and already execute driven

the We especially Let's start QX with results few adjusted new guidance end I'll off where diluted $X.XX our quarter. the by high just of billion start again, and far proud once Rocket entered the of adjusted of first of EPS $X.XXX as exceeding delivered I'm range. our in that highlights business blasted our a sharing we year. reported first from revenue the the of quarter,

margin. adjusted to returned we EBITDA double-digit addition, In

market In Alongside double-digit these on solid showing basis. to continued results, capture a both QX, we growth percentage purchase market share. and refinance also expanded year-over-year share

that Our and market analysis banks players took shows we in share industry from particular. large that big

measures our maintaining and is inevitable objectively of the industry, independent compared flows a on performance North our Market margins healthy Star share market. yardstick the the metric, while growth and to it's of in gain rest that ebbs sale the

and our market control focus delivering direct service cannot we can our for growing efforts to we world-class While movements, share. clients our on

as and and excluding consolidation will in our and can We refinance we believe lending, strategy won't both we With the our capabilities, correspondent and market. purchase, to grow and in player march. this we are fragmented drive winner-takes-all there purchase in upward #X market continue currently continue stop share we

QX. business our drill few to a like that deeper into in I'd of areas outperformed

the the the introduce quickly and home our clients. of team's our ago, market. our expand now markets seen to QX resonate infrastructure scale Since equity X from with launch, of and ability QX to loan grow underscores Rocket product than our equity significantly top players years volume achievement across loan strength this capital X.Xx has to among innovative home entire year. as we've This Our just is XXXX more products that under continued

equity loans market, importantly, mortgage. without they a springboard to on decline in consolidate option particularly first present Home life X second for today's remodeling days and with into looking are home as relevant whether tap our they a the transactions, refinance debt faster loans equity or clients close to their pay to fund provide rate a favorable mortgages for interest Home a in future. affecting primary great a their consolidate equity, event client's than traditional rates us lien when projects, and

additional driven and until we us key as see average, which more a such These just a are where that million of future while time. asset. transaction. nearly our strategic Xx to the represents enables the than at the origination is average solid strategic is MSR next offense service clients our our It play costs portfolios same X.X and paying weighted a March of and above is at coupon tangible defense part marketing book. acquired April of that without on of We recurring a a opportunity in business industry business portfolio recapture servicing why well a rate loans X few execution Rocket's thinking outcomes. results and cash Servicing have existing examples flow

opportunity let's is shift that trends some level. we're Rocket. we industry transition talk that are like the ahead steadfast I'd of recent and market our about for Now forward. Despite themes volatility, in and the at there seeing tremendous to belief

In to shaping Rocket run. trends over industry well-positioned capitalize aperture, the fact, is believe the current the the long we when on we widen

market-changing that execute take a minute just a for perfect Rocket to X unpack storm dynamics me and Let create ride, win. to

and from Undoubtedly, consolidation couple decades expected to on months the XX% with X capacity over industry are come struggling pressure nearly XXXX, capacity further players industry. April already put resulting mortgage its by officers in employment The challenging most exiting catalyzed First, smaller peak XXX,XXX liquidity. to Mortgage loan has declined let's dive the of and rationalization conditions in the industry market brokers into have capacity. and in past years.

look we if feeding a financial clearly we banks share origination mortgage at the there crisis. can market Secondly, been secular global trend of since see has banks,

rankings. by top top from share In declined in roughly data. has nearly XXXX comprise in XX% Even XX% and most fact, XX available the half the hold recently their to of to X still, approximately banks according spots industry the positions

years, mortgage banks made recent with challenges have the market apparent conditions. against profitability operations In difficult more backdrop of faced their

requirements, their home likely from placed deter expanding lending banks ahead, which further III higher on risk capital a operations. weighting capital, are Looking Basel to mortgage

many reevaluating believe lending we fact, their In operations banks are mortgage altogether.

selling landmark the costly ripe Settlement for remained opportunity realtor nearly change the Lastly, settlement This of National selling home equation inefficient, Association XXX commission The traditional years. has the to better model homes. and experience unchanged to both upend home has and sellers that the way the value of for buyers buying Realtors disruption. buying and the fragmented, and has for to pave and experience a is home potential for

X strategy seismic on ships. Rocket capitalizes these

us of thrive not through and balance fortress have a only the that inevitable downs We gives survive, the ups to the to but flexibility market. sheet

and talent, technology investing we term. in While growing the brand for strategically top-tier enhancement others and buying long are are business cutting-edge for a our to of survival, the durable build

of home the integrated opportunity side every of every equation. suite comprehensive end-to-end services squarely addresses the buying from aspect Our of

to We are are financed. homes sold and poised lead how bought, and revolutionize

the category. everyone help every of to As what is aim is is of grand transform This I end That and aspect challenge. to shared stand and home We mission entirety servicing. market and opportunity to end, our means. earlier, the homeownership help refinance is for experience from Rocket, selling the journey to purchase, our at buying, everyone We homes our home. the listing homeownership homeownership

are unmatched amount financial team AI-fueled mission The itself by In means industry clients, institution strategy foundation are short estate has by committed that agents, That positioned alike. brokers, in call powered experiences our time, that we experiences that already to others. AI, pioneering our underpins industry-leading benefiting AI, a this homeownership. Rocket real mortgage the delivering continually we as and leader of client partners a members is

a handful accelerating. me of examples recent is how innovation share our Let just of

experience image team kind lawns. to them important enables recognition users in displaying scratch. discover listing some generated, visual stream more innovation and on stocks. visit, industry. the removing kitchens This for their Explore spend home with Homes descriptions that vision content very next the Spaces made as be they engage leveraging images manually launched Rocket or This writing Explore Users we've lush AI be early site to to by automatically possible Since to who countertops of text in as marble with the are enables Spaces the Our launch, Xx features and almost technology identified twice backyards returned tagging quickly its such first need search, seen long compelling from for the photos on processing. with by computer This often. per recently based or is

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which handle errors only This Our is and incredibly prone delays. is business, XXX,XXX prospecting our year. requests those bankers can but takes away an days a adjustment it take to underwriters bankers from not manual hours times nearly for process, and new and or

in through a spent because language work industry-first, an administrative easily X extra clients speed over gives for days can kept counts great to make can Every their our up XX a competitive a feature bankers in hours great phone previously with to be natural in great offers use a for day, and who kept to notifications just the date edge home. make modifications clients. their them an task minute. It's loop the the clients week. is time are second winning And to in this on realtors more realtors new our use for automated This to dream market. In

so many that use most to cases significant matter are modality, through for mobile and tasks our can one manual No whether our This speed, team our company There our we industry-first many chat, work. app. and the on or connections time producing is human are drudgery members. client-facing driving experiences. pipeline immediately more of website of time-consuming our the making at at supercharging operational deliver features team impactful and massive AI, eliminates but scale. that members phone, our is personalization efficiency, with great AI burdensome higher-value the accuracy just in Ultimately, spend AI, leverage AI application

technology where full Logic, of directed, and AI serve team the powers up more our drive expand resources Rocket to client-facing platform tasks, member many capacity growth. and new engineering interactions Rocket are mundane clients back-end continues proprietary to majority Logic both and our automation processing. of bringing patented our add capabilities and

intelligence seamlessly. work collaborative team more members Logic to utilizes complete help Rocket our

client hundreds additions in the hands-free. Here populates accurately platform. in them Logic Assistant, tools are believe have recent mortgage and providing just which be our more follows with even productive. a seamlessly a bankers business, application and best Rocket Rocket fields We to we're we Logic the crucial conversation the the real of time, to with now few

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our logging last interactions, operations works Synopsis. Synopsis behind our new Just tagging preferences time client to purpose, Rocket team and A by and banking, sentiments month, we transcribing Logic participate teams more. contacted, million the in and TPO, clients, calls scenes, client-facing members be for and with used Each client method, communication call announced across year, mortgage servicing. our XX mortgage feature

key loops training feedback continuous The with data. recursive to of is AI and models

clients. data profiles to We train with gain client construct repository. are we deeper unified get models experiences better repository, The centralized at client continuously ultimate analytics that to industry-best future better our just objective this translates to it. lifetime interactions and and this all insights conversion higher invaluable is deliver to rates organizing in value and and client From to a better into personalize

the helping than Rocket XX% Logic's interacts industry nearly in the to several XX% from has clients with a Rocket's loans to a reduced has August XXXX. XXXX efficiencies X.Xx time already year-over-year. in are times These average. it Rocket nearly close automation turn, on takes home number member times of faster key This, a by the days close February loan shaved team turn off reducing purchase, by

Great companies we with and to and only faster execution. going At even across Rocket, exceptional get continue from and better here. driving board, the are succeed it's execution better

are AI and is brings a value key to road strategy, We've core results we're our recently Consequently, deployed We strategic with of map focus operating it heightened key our established and businesses. how accountability. sense our share and to and being to homeownership support excited of prioritize objectives and examples AI-driven more solidified objectives. the

also the have. and the interact of those this Through reduced significantly we meetings streamlined of we've process, we do how conduct internally while that we sharpening focus number

experiences engineers time meetings less in our are great our coding more XX% As spending I'm that time roughly creating and excited for a clients. and result,

gone experience In that innovation. blown Week, Hack Hack best technology the to this incredibly and working build highlighted attended our I game-changing amazing a that ideas matter was weeks. rapidly production talented fact, next away. just I our last ideation of team month, from Week have to event, dozens was members just in of It From an

purchase. take mission and we closing, on velocity. the home, to executing with to and are of opportunities grow our buying the to by home advantage we and servicing and In established and we're poised believe laser-focused to business everyone tailwinds continuing category, upon in are multiple also once-in-a-generation are presented position our help the We perfect take refinance we building transform in share

accelerate grow at scale. All market our of is of this execution us and and underpinned share, pace enables by revenue which to profitability our AI

to And with that, Brian. I will turn it over

Thank afternoon, everyone. and you, good Varun,

from growth. to are financial On tangible today's the the for environment results including I'll outlook on on second perspectives and strong share call, cover quarter of close some our efficiency, velocity of and business, current first I'll seeing XXXX, AI for with and the value market our leveraging another drive accuracy quarter our the achieving I'll profitable market across we insights share quarter.

But never a on XX-year before have I'm ahead. course note, my we I get are I started, and approaching with been personal excited about the Rocket, more charting anniversary

and necessary tailwind a fragmented huge once-in-a-generation strategy home-buying this in space. have we to resources mentioned, the Varun on As capitalize

we with to are We leader ownership. and incredibly the in well-positioned speed, be home are executing

have the help home around we The company things to past Over on and realigned to months, few the been everyone AI-fueled members our ownership. our from electric. And confident engagement have home. energy we as great together mission strategy I'm team execute we our are accomplish going entire of

market results. a a share, higher years. profitability strong We longer highest well of historical delivered revenue in achieved again and that accelerated remains achieved mortgage We against growth our once We quarter. below for interest first results X the backdrop to Turning gained rates these levels. market in

team work execution is our of performance to the testament focused Our members. hard and exceptional a

rate billion $XX.X in and closed net in into both results, on volume the lock we Once in we QX further meaningful volume. loan billion share, significant strides generated fronts delivering market period. made purchase again, have during both and $XX.X growth Diving refinance

preserving their Our like want loan an differentiated mortgage. home equity attracting home access product, rate refinance who our in solutions new on equity their the low already clients while existing to

from face. the geared ecosystem directly for is integrated And a Rocket's and challenges unbeatable Buy today's helped program, new addressing real to perspective, drive which while majority buyers are servicing our year Buy equity to grow towards estate of our the continuing purchase like Plus loans, the past that and Like our market share gains Plus end-to-end home clients purchase mortgage offerings portfolio. organically affordability historic across makes over then Rocket,

quarter. on basis. Looking at on comparison, more was roughly up was basis the XX% industry first flat total in forecasts year-over-year a real-time first the and other a loan quarter volume data industry our sources, By year-over-year volume

quarter, billion the Turning This XXXX well a generated high above $X.XXX guidance in the marks XX% our accelerating first end revenue of represents range. year-over-year. to first of growth from quarter the revenue. We of third adjusted increase and the consecutive of quarter

sale which for points the was year first XXX in sale the to system. upward on XXX capacity come part of points, has further sale points trend on Gain in in QX margins gain continuing quarter the XXXX. past driven margin the to first in been moment. on basis compares basis on favorably margins This a and in quarter gain over of I'll elaborate XXX the the basis out by

the $X.XX to EPS came growth, profitability. meaningfully first than of addition Adjusted first million, posting also year. was improvement the quarter EBITDA strong $XXX in share an In last $XXX in we of Adjusted increased per line more million top at from diluted quarter.

the few Rocket's only double-digit a potential. been quarter, to return in tale peaks margin past pleased earnings of is a to of The and are adjusted have first we the in years true this While EBITDA market. glimmer valleys

respond but necessary company realities. work to to difficult and the market done We have the rightsize

crucial to and continued seize robust with opportunities. market to invest financial profile, such heavily the as though, our we technology areas future talent in have importantly, More

our take same in realized towards were the XX% in the in operational expenses. let's a quarter efficiency expenses period. Now chose savings marketing increase year-over-year, year, we adjusted then to to particularly which the direct when look production. measures QX, to ROI-driven to notable compared first roughly we full the cost Thanks billion, additional spend which drive quarter flat last implemented the at Total over $X.XXX operating is revenue we performance

costs which We also increases. volumes, incurred to higher higher cost related included credit industry-wide variable

accuracy share tangible member unlocking to and the operational productivity. is Varun augmenting at client heard how AI and you add enhanced scale. business through that we efficiency. value AI operational great experiences With are bringing on member The most value Earlier, supercharging I've efficiency, about is velocity is talk in AI, like most more functions. how team critical I'd through perspective apparent our powering and members team seen capacity significant productivity unlocking by significant team even

members classify mortgage Synopsis XX% member-intensive in efficiencies. such tasks, members this routine servicing, to team into these team with handling are majority and mortgage manual day, Rocket Every populate and Assistant clients. operational our operations our nearly have more Take work, such With is team and areas which higher-value conversations advice up Rocket year-over-year, engage as extract our directly Logic our to handle translating by provide areas as Logic fields. and applications tangible to AI Rocket in Logic tasks Rocket AI Docs to documents data reducing time tailored calls, to tools team transcribe using make banking, total the of members. Logic

days serving purchase our factor. clients XX% Logic's AI, With improving August times XXXX. turn are closing velocity. our XXXX are off shaved times, February greater Turn automation time with has by of also important from an to we Rocket

a we better in the loan, more because we the can a offer and close home-buying quickly First foremost, can market. competitive especially clients, experience

us reduce and AI accuracy. risk driving never-before-seen is by helping strengthen compliance also

originated verification the underwriting to helping GSE GSEs. to significantly the are has income reduce And For critical the behind from higher income top AI which reasons step a is in accuracy loans requests. repurchase repurchased process. issues losses financial among verification the example, on is drive previously rates, potential

to a a Turning increasingly financial be to be strong fighting advantage. stay us may be landscape, serves affording competitive as the flexibility moat, continues our sheet. to opportunistic position when shifting to industry the balance just Rocket's financial position alive. others Amidst strategic our

to investing to Our financial as technology a profile allows durable in position growth. us and continue AI to talent top as for our business organization build capabilities well

be later growth. Looking in programs With competitors to the even ahead, went is excess that well able are to liquidity industry. an advantage year, many effect late liquidity FHFA respect our in this actively in is X.X that capital long-term invest that requirement requirements, capital to regulatory being requirements and risk-based will our manage effect new Ginnie Mae's into of of of capital the greater rather that having take in as deliver new technology begin a to the This XXXX robust and both take will standards liquidity levels. Rocket and than to effect

ended servicing value first billion these assets with of $X.X cash quarter We $X.X Together, sheet. rights. of billion on approximately our mortgage billion available $XX.X balance and the of total a of represent

an Our on self-fund balance originations. additional lines. cash lines corporate of to used $X.X $X.X million undrawn as sheet, of cash, billion available billion MSR of at billion in undrawn liquidity the Total stood our XX, of consists loan $XXX including approximately of March credit $X.X available of cash cash

that's servicing XXst, million $XXX nearly billion loans, included of principal As balance. mortgage unpaid March X.X of portfolio our

lifetime rate the average. higher which rate Retention to engaging continues retention value. serves a client than the and the was primary net indicator in key Our XX%, of be quarter as satisfaction client client first metric is industry multiples

mortgage recurring significant drive also We revenue from servicing.

the servicing quarter, During generated on we annualized approximately billion revenue an $X.X from of represents $XXX our cash which first basis. million book,

rate, we see lifetime strategic business. value. than it area viewing portfolio our to the through our industry-leading approach a growth of and Servicing of take lens different others, Servicing is synergy we strong Origination servicing and between With recapture our a client

on recapture opportunities. for and note above we rate $X set principal us blended acquired up a unpaid refinance rate rate balance that to over our billion future In average These us with note higher our portfolio. of industry-leading MSRs March weighted of capitalize and April, enable current

the second for outlook quarter. our to Turning

and basis year month volume lowest below Our quarter in to on improvements, the today's quarter-to-date home we've and trends conditions treasury challenging. performance. roughly the the April is rates XX strong is market of call Despite guidance affordability The of on and XX-year yield actual further observed data. persistent were of month levels in perspective typically historical based April inventory X from has the points increased well average, their while inflation remain gradual higher start response macroeconomic since challenges. some mortgage compound a

season the purchase in from slow volume inventory QX is that benefited take interest spring expectation in Across QX. X worst reoccur. One and challenging in that applications noting gain lower our to second It's again traditional to on of not the market-driven us factor purchase sale start. XX positions worth quarter. off was strong a to share Despite a in when our environment factors the The margins may and the rate March our compared last rate industry, turned years. higher XXXX has reflects for April QX the environment, guidance and

on securitization in to for Therefore, execution Another in our home the quarter is second margins half our that to factor strong will was of gain last our the those extremely second product. the closer loan return levels expectation year. sale observed markets equity

we will are growth, In $X.XXX take guidance exactly this. range expect and our that in $X.XXX to be top confident billion. of summary, revenue we In line we billion QX, drive adjusted share the to reflects

savings increased industry-wide efficiency higher to last quarter flat expected volumes, related to operational year-over-year a be second the credit which the roughly costs variable the are initiatives cost to year's expenses, as be on we mostly operating from increases. includes expect offset basis, by Regarding

with and purchase to and based our our our our outlook market thrive and grow today the accuracy. homeownership is and enhancing transform With from and across come Through which As always, clearly AI, we navigate to on are is operational believe current our forward-looking category. unlocking regardless should guidance strategy our we fragmented visibility, and we velocity conviction efficiency, massive, of capabilities, capacity are conditions. well-positioned remarks

on to and mission everyone started, getting help just our are up fired to execute We home. we're

are it over for With to the to that, ready we questions. turn operator back

comes of Ryan Goldman question first Sachs. of Your Instructions] line [Operator the from Nash

continued little a income bit and them, you So we I Brian, outlook the dig profitability. of XQ a the of color had gains, areas, profitability. further Obviously, give net into is I just think originations, a Maybe dig first market sort guide, of into the revenues and saying wanted across on to quarter of we share bit handful little the each had this to revenues.

So steady. can of up how about together being back maybe into evolve sustained just you for end now of the talk these talking together do see guys about outlook all you growing you industry might the working obviously will a given originations, you level and we're things think How 'XX, all are things profitability? relatively these to

thing would I the market there. for is it's thank say just and you first I'll I ask Ryan, the in Yes. out question. I'll start, a anything think he would that add. jump tough And then Brian to if there's

that a kind You've moving got little the of wrong are direction. rates in bit

to from a market of when expected. that, data regardless size a $X.X MBA be got that And Rocket. lower TAM. of the But are of firmly applications that's it's believe that's the whether going favorable market, dynamics are to You've you that back trillion showing than the mortgage TAM step or we $X the trillion

And highlight my reinforce this. to indicators confidence that I just a in few want

When track our ability And market our the a share real and record. take function have we that the proven I any execution we is, trillion financial in TAM. services, look of $X of a have as at think purely you to estate first and that's and just of what is in focus throw you sort it regardless and the one TAM, persistence.

industry. are Basel that's capacity that so things putting The on may industry, that headwinds tailwinds second Rocket pressure dynamics got that thing that that's all whether III, be Rocket whether to tailwinds redefine just that's out experience. headwinds NAR coming broader benefiting smaller These for to of you've ruling many for disruptive like I'd are industry, environment rate like the highlight are recent the is it's the be things it's to going the players, going the are the be for whether new that opportunities create may

then And just execution. highlight thing and is third the I'd again, strategy

personal span assets making our uniquely refinance, have servicing, We've entirety Purchase, in We homeownership we're technology journey. focus. finance, that of narrowed the and the significant talent. investments

favors bottom there's grabs, for And up and tenacity tremendous our to playing so and reflects storms, and the going that's fortune is of win that and really who our grow after line for built share. in those are share market sort the

you anything would there is add? Brian,

here we the feels build to $X.X Yes. around The about them thing today a industry on look of look -- forecasts, and that triangulating just at are Ryan, only that, what in rate when we've because moves. some we Varun's and from high terms share. that, trillion, sit can we challenged of significant system a of But shown, quarter of also through drive market, the profitability regardless that seen to was our first few we've point take the

of given capacity. in us. actually some benefits actually over bodes we've you years to capitalization for executing our increase that say a are few technology And that, Varun's less view well to the our that longer, easily made stay that not us there's the noting, -- $X.X and something on let's good to point, rates market, even of it's really our and a levels, investments So a higher if it's can get given past it's doing study more that, case too, think into pretty it's for to us terms We really trillion strategies. worth than liquidity

are being maybe and I X-part a thinking capacity margins then on follow-up Varun, outlined sort of And question retailer time market of talked ask it drive growth think shutters. Rocket about share? think for these Got can you do the and share, first, you over to an how and in secular you market you enough So share accelerating about itself share banks rationalization, national things about just it. Do If settlement. frame? intermediate

back in intermediate that And you I still levels. levels? XXXX Brian, of the the are XXXX, to you given I that, historical these idiosyncratic margins But margin a below see frame expand for today, look opportunity talked guess near over favorable couple to related time the about do margins dynamics, if an And elevated term. still to factors

I'll NAR share Yes. cover I and a mean the settlement. bit just little on

first that durable to there the our the together growth strategic share would a in and and now say I in is enable thing are future. X think come levers really I just way

experiences. The first automation. got AI simplified our funnel. We're just We've big personalization, on betting more is innovation. one better We've

The internal dedicated focus. second is just We've teams execution. thing streamlined autonomous our We've our with clear got goals. more

So we've improved just process. our

our is We've flow. optimizations Rocket with better got our performance third to where better The of to relationships clients got servicing nurture engagement and funnel. portfolio. lead they top are. improve marketing. creative, got We've Homes improved We're just our engagement with search We've We've our Rocket thing experiences Money. better meeting and

the So dynamics. see and you results, mean, in bottom market is, it you the our what see line in is I

So we definitely an see that as accelerator.

is to my answer yes. question, So your

transparency settlement, industry into we some And opaque. leverage buying for side the create only more process it's the the I to cost and to take believe, of efficiency it's take cost too the -- consumer the transparency bigger just too out and just and just are There's the the equation what fight on been this that long of the believed going of and a equation, that has is definitely there the home what picture, always to of been introduce and -- to selling just out others in. and too cost would and NAR And tooth in value. this And be efficiency seize nail. just look we choose to thing opportunity. the that think are latter it folks high past going value the And I say been are it's we've and long the is is in that the be

Plus to this been things we're with like Buy already so. space and experimenting continue to going really do we've So

Ryan, environment your all up I we midpoint the XX% have I can right clearly, information account adjusted to improvement range. take really we quarter. -- the different double-click we this take belabor pointing course, the It's if on But you the April of of the first saw but we've the But in comments. won't than before. has the rate question, a a that guide worth seen year-over-year it's what here. out rate on revenue, call leading shared into

seeing inventory, improvement. relates modest to are it As we

the be the that, in by bit is challenges. offset of assume uptick and affordability does from an believe us continuing quarter guide seeing quarter, our some view, of to a We largely that's that are in clear listings, but these the little we volume up want we from in second really But take first that's share. to

very aspect to we buying pipeline is that affordability get also remains Consumer over. home strong. have the for It's purchase very demand Our just high.

year's closed did question And buy the X But is the point found reasons, on said expect But consumer There's The second space proving definitely margins, But investment, are we first that gain obviously print it. to extremely for right for your exceed are last and that even QX positive. to on the we margins we've chasing now in closed and is generally really expand no product was that which also sale also point the is high. to then gain our demand high. expectations. XXX is on before both basis levels. that is The the to yields extremely healthy. the And demand continue second out. very first those that is in from given sale product. people what private about And quarter

execution. but good, All we secondary just been So rich. better-than-expected had execution especially was the this secondary has

demand bit was that's though though -- a the first less a little expect the point, on the your And of so to just quarters, were quarter can't -- in saw then So for to I for rate I even I we rich. the what just wouldn't be count April. product had do something rates change rising, future

So bit interest the little had first quarter environment. better rate a

on in our margins. largely has there's still that's do happening, So -- we expansion view We and changed nothing capacity on -- but believe out. that's gain sale because coming of

comes Adelson Jeff of Your question Stanley. next Morgan line from the of

And little little I Fannie XX% that the increase. still quarter. $X.X to quarter, you number? you'd of trillion outlook into the conservatism out the bit bit know Is maybe the the for degree bit mean I this on any of the sequential you're little with this is dig the just commenting at a there into there unrealistic built chance think to second kind outlook in into rest So here. beat a evolving? you the gain, year? double-digit terms guess go that Or kind to I seeing see XX% you this and as commented for you last just share wondering this opportunity then the upside that on, do think, there accelerate you quarter I'm of point. and the just of I the quarter. gain is in year, a just Are how XX% share some of gain, number. And increase a the

Yes.

the a and they're me on when at again. Let market rates outlook in Even were were with trying different published where you $X.X look at outdated, the but spot. we those the to dates pin and the down start look view is numbers problem touch just just to you with number, We're right? forward they trillion curve, a the not if published

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macro likely, the will it only do seeing both a terms that's tell in we're would and though probably I as of not that, So, data, think we be still real-time micro think, But things market. us healthy XX%. that like

way could that only account. I is your question take answer we all the into So

But point. pause, bullish lenders but buying purposes, of volume this highlighted share This which quarter this in but to the an in second loans, prepared are being If the see data do marketing other of that continue grow they'll home-buying our or seeing really most very give type next story saw able retail the out his marketing dollars. not quarter, space. April bit client clients the acceleration does quarter is in the as are online largely still me to we always remarks, in acquisition enter all home of there to practical of leads your for not mentioned a are or that doing that banks through they're we taking on we the Yes, share season. them, gains. we're us inbounding anything Varun will tell to share, but spending Varun

really to bodes that ability accelerate gains. our for And so share well

the And good like. home sounds you equity have offering guys done loan it job a pretty with

Just Do any the proposed wondering on bit for you guys maybe view if a program their you have in second opportunity growth agency there as of could maybe you you think maybe early maybe had the program out do we a how how much so second of of as of there's side Do we this that view really program? business? averages price lien. the out of be now, Freddie's volume of more lien do should any little of agency the this that of thoughts now high trade-off ?How the maybe now less refi, is. thinking doing to are but not that versus trade-off some cash more that, moving right

Yes.

too. Let mortgage up. we'll where Generally, more proposal and better on that in think I is Varun sure the side, But me see space. start, the liquidity add, ends will I'm

support market. the more kind created in different others do we But space. course, of -- this So We liquidity. say of than I would sort of

we second made at securitization done, this go at you the through. and we've you look what market, If data at of and least sort for look closed

already. liquidity the finding So

the you component As I first guess, of on margins I the say, mentioned, over in could gain a was that quarter. performance, big sale

proposal rely though But So for us, or that. a I'm end that don't a we need is nice What like to more we've sure on already where the not is liquidity up. generally, really say will count developed I'll better. program.

bunch a have of We capital.

like GSE products, will buying standards up people rules. underwriting I'm sure have where on spectrum. But Freddie that into. all end pretty We they'll have that are not tight

and seconds. will important closed capital private in still be think I

Plus I'm to team One solving and anticipating proud our also is whether the The mean, they I that how is where we're just way, are of Inflation relevant this just, evidenced meeting ahead or our it's Plus, continuing building great by them are meaningful the example only of products Buy current add our just for is of thing just I which for and a problem. very Buster, history, the being set standard of would curve. a market, client's the with needs

DeVries of Bank. Mark line of Deutsche the Your comes from next question

Notwithstanding the revenue more expense was thoughts product where rightsize hoping rates given as the focus management, rates an as in already your environment for I any backup you've well thoughts latest longer. to in base, expense hear on help efforts higher your made to generate updated remain to on just

start question, you coin, that are I'll Thank profitability sides and just efficiency of saying same the matter the X both significantly. Mark. by Yes. they for And right?

happen imperative. on going do through smartly to happen that focus to invest your is going through a innovation. is strategic line and big also to in accelerated top the you growth. swings way efficiency, you And share is which focus happen That's on main going through That's market constant leverage to Our growth. It's execution. savings

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And So allow it us durably. without will grow will our it company allow count. our and head to build us to grow increasing capacity actually

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Brian, add? Anything, you would

Varun the I thing these originations lot we it's at is said a starting benefits capacity is only $XX believe to We're to We've it's would just billion gain, point, say, about a a see significant what more through right? put did capacity come and piggybacking last this in of -- really talked on fruition. amount year, which we system. can The we

capacity, capacity higher clients serving we used the and stay when either be now. rates more it accelerates . and go right if difficult is, it's that gains, and removing more TAM increases right That down and now. that's first and and/or share rates friction our focus So think our focus foremost, keeping our will

Okay. Great.

Just this one environment. banks talk lot in more share a for of me. There's been about

base. or us white even could may take ongoing to a share conversations with anything about branded either Just you with customer there's either having origination wondering their their offering label help be if banks help an or you discuss to access offering

the can't think I see We I specific opportunity to conversations I that but mean, there's just an we're on create we comment that, having, Yes. say value. would

more And as share make we and are we'll those ongoing, progress. so conversations

think thing know not we standard. Yes. there's comment is and mortgages, We were hard can't Varun's don't where III trying really to some banks the up. to even know specifically, we end the Mark, it but that we will point, was interesting before to the Basel But plays do, there.

question from Jefferies. of next Your of Derek comes the Sommers line

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AI Derek. it brings I'll the platform really transformative in the what start And thank in question, that's our Yes. to for you the company. that benefits just by it of a and the number the next business. Rocket represents is No, with obsessed Logic we're because chapter grounded reason for saying

execute to us the to to operate It one have allows efficiency. that the value serve more speed clients offers they have The because just our clients certainty, speed. to and just They velocity, simply And able at and just first by like and mundane. is automating competitive. one second speed is things be be and

comes delight revolution, week. well what equation. our this of of AI is come. the every and people we're strategic side I the and homeownership which then is this And when with of on our the more velocity is our is just as in with Logic, most go it journey as increased days And more earliest on we've to the firmly launching every is one yet It we're imperative best dramatically platform. to creating very Rocket And a third the believe personalization, that investment through emotional experience, millions futures

we part servicing. track. to how And in started extraction were we banking to per benefits. XXX,XXX extended that some to and improvements phone manage with to the experience clients That's income that times. the to now seen digital interact to client way or We mortgage hours We've saved. journey services with verification pretty platform metric The is We've see from the hours to a of documents every the interact seen year. we resolution we've to underwriting awesome up on

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findings experience. seen And but verification then we've with audit not income zero last, least, our accuracy,

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they Great. pivot this banks shed the And share coupon more any your to guys light more Can or servicing Were to then on -- higher transactions? portfolio across coming product is coming just acquisitions. you from desk? there supply those And nonbanks?

Yes.

-- I a you. question. that's think fair let Thank -- just me

service client that portfolio experience that awesome where you're acquire we the back starting right servicing And one game. in me think just recapture recapture recapture, take them to through return looking our see of But Let look industry-leading like We a always is now, our we It's in flows to returns. very at strategic will you cash well and generally that's asset. then for winning the really if really if also can how goes we known to exciting servicing. the a double-digit we're clearly a us, J.D. to getting about prove what we've is then, step returns. well. at starts and Power we the asset. that just you Even And course, of when add origination talk what ourselves we about

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growing Some their servicing ] of interested [ with in stuff. very WACC goals the that actually out some the robust have portfolio servicers low around are pretty come

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Your line of from next the comes Capuzzi of Sandler. Brad question Piper

of grow in investor with results purchase to lot guys there's with you to in steps market track on issue? to market in today, are rocket's being the taking term. just know share. wanted Kind for hone the of So to investment you the the other this But products. tech of in addition been I your inherently demonstrated your of localized grow market, record mortgage specifically highlighted share your are along long continuing presentation, market obviously, address over what and the a AI, purchase ability

you Brad. think question, for Yes, -- I thank the

area I dedicated down comes think focus how the it's organized, ever than teams, clients purchase that from in the I really how we've It just how more past. from the just invested with of understanding of how every And thing is journey been and what the we've to dedicated a to the win. the resources includes we've with understand it realtor of just through say help first of the to and time is company making understanding a building would our to nature going aspect strategic includes for we've an to teams. relationships the home broker you the also includes process the That nature offer. takes funnel. searching how It structured

first just dedicated ever more than thing. have significantly before. toward the That's We focused kind of

with of thing never of other the has The assets say integrated like we've role The been Money our and transaction important. role Search more we never we collect Portfolio I our been been help is our role has has think with Rocket Home can next clients engagement The and never can our important. data before. Servicing never would just important. I building where ecosystem more their them experience of

this but you game interest, -- the think up. it's of interests are about add they So put of when is of a everywhere together them all kind and

so interest that see to execution start when together, put And you those happen. you

think bigger you serious purchase, And our opportunities. We're opportunity inorganic and that about and win. But us we're can swings forward. and so affords to thinking see continue to a on to AI both also giant expect leap that there the obviously organic actually are so you when us invest it looking we're we take focus and dedicate about at about

of a obviously, on across from from Rocket for question in And thus capabilities and investments topic your calls differ is market. the mean, technology adoption last the just hot I can of leaders me. Is continued discuss AI, competitors? peers how recent your with one issue been far? just industry AI you then And mortgage the

Yes. activation to just required I thing successful there's mean I be a would think say AI. is energy that's I certain in the

have engage clients you that You with. large have to can a of number

can resources to have build have train, you to of they're better. of experiences to build of sort that you and lot And that data have sort a improve You invest that can have kind models you of around. continue these then to

where invest if in of you those resources, have be scale, successful large data data talent. don't one difficult intelligence, if engineering is you it's algorithmic at AI don't to you if this So science, don't have in

think number the and strategic our of dedicated I It's imperative is layer we're at investment grow we've the for a where company. both continuing internal us, vast so to our of And it every with external talent. resources, and

be leadership focus days come. we're that we're and share is just the company only making, a will in Technology also of mean, us, AI, just the just adding would investment of I example fintech the increasing. that be leader hiring to Officer example good joining in and Board, going thought just that's is for who is level I'd to new I an give to industry Alex so the Chief the And our Rampell both where a that

investing, And so this. we're to serious We're and about playing we're win.

concludes Q&A Thank you. will closing the to Krishna remarks. turn Varun I the now for back That session. conference over

Well, thank today. We conversation next for the you, to great our call. everyone, forward earnings look

it. Investor Day invite in later to We fall. also you our the appreciate We

This concludes conference call. today's

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