Corelogic (CLGX) 25 Apr 192019 Q1 Earnings call transcript

Good day and welcome to the CoreLogic First Quarter 2019 Earnings Call. Today's conference is being recorded. And after today's presentation, there will be an opportunity to ask questions. [Operator Instructions] And I would now like to turn the conference over to Dan Smith. Please go ahead.

morning. good and you Thank Welcome to present of call, we and investor financial results presentation our quarter conference for where our the XXXX. first

Martell; will and today CoreLogic's and Frank CFO, Speaking Jim be Balas. CEO, President

let begin, we few important me Before points. a make

which slide financial our posted details on additional presentation, we on includes First, website. our our results

and that concerning presentation, meaning outlook, we note Federal Securities and our the plans, of business acquisition Laws, make operational forward-looking please and regarding Second, statements strategies, may during today's including expected and the our statements conditions. industry growth within performance expectations

All and statements. cause forward-looking of uncertainties those these actual statements risks could the are in subject from to that materially described unknown known results differ to and

filings, and including Form most Report details on subsequent Annual the the these For uncertainties, further please SEC concerning recent XX-K and risks XX-Qs. refer our to

are Our on duty any And available we undertake to update not currently reason. these us. information no intend statements for and to forward-looking do statements based

financial that basis presentation. Unless on equivalents Additionally, is reference periods results today's prior the to today's comparisons GAAP presentation appendix XXXX. of the non-GAAP year-over-year of in included understood their measures contains should quarter to in are specifically a non-GAAP measures. to reconciliation be that financial first measures is financial quarter of these to identified, A first

yourselves one limit follow-up. question to please Finally, with a brief

CEO, our and the time permits. as President end Martell. Thanks. call We let take of at now, me questions will introduce the additional And Frank

both a The loan contraction the despite and U.S. off wrap operationally a view, volumes. and call Jim team guidance XXXX, first follow double-digit off from XXXX with very our financial strong today up is We'll today start financial for quarter. our first operating Thanks, of Dan, morning, provide to key of a will and call. earnings a Q&A in session. and good point takeaways. with lead I'll the summarize Welcome performance to a quarter and results everyone. in recap CoreLogic CoreLogic's upcoming quarter mortgage

volume increased revenue three prior Over EBITDA trends versus and the operating margins mix, of outperformed first favorable we the by strong and productivity year, unit adjusted leverage. driving very market months year comp mortgage U.S. a

We solid on flow reinvest to and flow the capital conversion business. and elaborate into back debt our will reduce levels also Jim free cash few a allocation cash used further rates minutes. in

First XX% to estimated drop quarter compared market a overall volumes. revenues in U.S. down about were with X% unit mortgage XX%

production. refinancing affordability In and generally were higher terms and volumes, loan continuing pressures of market both rate a purchase as limited new down environment

legacy reduced down revenues addition and lower mortgage technology revenues. wind market AMC of In default to related the also activity, our mortgage platforms and impacted

positive and businesses, the side, our teams during and delivered quarter. valuation solid solutions spatial On growth insurance platform the

relationships gaining of consumer quarter, by progressively our and our the range tax units. payment remains Integrated solutions U.S. residential platform property our seek housing performances of service and core in important is company's and our U.S. in to of in traction leverage strong from data scale quality, ecosystem build driver our continued offerings. outperform the business During growth of trend, processing information to An driven overall the market mortgage marketplaces are the supplier led packages and with breadth zone market partners. operations insights, outperformance which full largest the flood valuation the world. key unmatched The strategic customers determination and increasingly

and core our market new leadership of data in-house of volume office coverage long-term announced non-mortgage total XXXX, natural expansion QX leverage analytics XX% significant our the to businesses. our continuing to positions growth upside, of industry XXXX, effectively us as approximately total In financial leadership years ago, further at sensitive our non-U.S. coincident mortgage assets target into and volume the by workflows to data-driven the our Symbility, existing of which and volumes. first sensitive in our fueled processing well of accelerate while transformation eventual underwriting and part provider December infrastructure as for combination was contributed least well significant by processing underwriting claims. businesses the about in of we market and repositories. and integration in verticals, enabled AMC and solutions. footprints. upping our a a driver December successful use critical unit market percentage operating for unit of unique been has clients in volume our the data geospatial Symbility our In global scale leading as expansion growing was staff the of of data the technology international growth. Several insights mortgage higher of the with revenues, in as Symbility appraiser return of revenues back well as our hazard increase capabilities, operations, announced continued U.S. of first insurance These points provide The the analytics, this risk mortgage of CoreLogic Our insurance solutions cutting-edge company's claims year, with common quarter of property-related by into XX% acquired we X panel. our the quarter A XXXX. last CoreLogic's and new utilization increasing as allow automating property is intention and

We and also wind-down announce of default several technology the mortgage units. non-core

AMC units quarters. expect four wind-down program largely of our the over We operationalize the the next and to non-core transformation acceleration

As profits these communicated previously, lesser programs result in will reductions and year. in revenues, expect significant degree, UWS a we this to

related business programs, deliver a the XXXX compared through spending during higher in EBITDA to higher AMC to investment Adjusted after organic benefits of result of us past EBITDA run, million and covering longer growth elevated to quarter, including and key our more market million adjusted program $XXX $XX $XX profit In the transformation margin the for the management to totaled first than cost XXXX. helped our trends underlying margins. flow improved once projected modestly number million is in Over implemented despite headwinds initiatives. QX,

and successfully investors push levels our long-term towards our have first operational know productivity record an established As well, quartile excellence. track we driving of of

We lower by facilities, million other to run staffing automating consolidating managing activities least expect operational cost levels, improvements. at in and another by XXXX certain $XX rate

ramped savings quarter the terms up migration the to largest quarter, first of single generate to Platform material is in migration In our we our was the expected GCP Google GCP. investment Cloud in XXXX. or and

existing the addition margin and on expect we automation visualization, and GCP, and generation expansion. growth platforms in and with techniques, capabilities as quality, for well which future focus a we advanced structures to data technology In next particular the invested foundation will set as

transformation of of reductions solutions the stable to we our for strong consolidate the our wind-down the platforms. centralize We're of and accounting market, for value achieving start The just during continue footprint. quarter, U.S. also sum mortgage as us XX% operations to we after programs in it many valuation well I'd are Finally, stakeholders. least and at and XXXX. adjusted of other on and a estate up, our margins to legacy mortgage technology planned off excited offerings aggressively ahead our as a during EBITDA opportunities create based the To goal default about support highlighted XXXX real

estate provide solutions the clients are ecosystem. we with and building the totality insights unique our connect to best-in-class As leader, real market of

well be much remains Our creating vision innovation, their CoreLogic positions unique successfully service levels superior of financial clients. to which discuss of high and our support a scaled, joining our scale, us as for for Jim executes against to impact as our team as Thanks quality today. shareholders and enterprise a very employees, that will results. delivers our solutions. us strategic the continued innovated, I data-driven for thank profitable now on must-have clients long-term want all focus partner our our

quarter. I outlook Frank, results then to Today good discuss quarter our and am the first Thanks, morning, for an everyone. and provide going financial second

market financial the margin voluntary against higher EBITDA basis mentioned, mix loan XXXX. cost term business approximately finally, CoreLogic continued expansion market $XX U.S. favorable first Frank driven delivered by of reductions of and lower greater performance million mortgage and XX a our second, which and of spend; included: reflecting technology in third, a trends; the proportion quarter subscription outperformance in mix, improved management, non-U.S. base first, mortgage operating offset strong of obligations. volumes margin points highlights in Financial revenues; and than debt more adjusted business investment As

platforms, million, X% XXXX. activity, partially lower and technology $XXX XXXX down mortgage in principally The from the from default totaled non-core revenues resulted mortgage related quarter U.S. by acquisitions. offset decline wind-down and of revenue AMC First market lower volumes

income from $XXX from XX% for During the rose on lower XX% operations an million. $XX the by UWS from totaled activity revenues totaled quarter, sales. The declined revenues volumes estimated XXXX partially offset to programs, by home XX% with million. was U.S. efficiency-related company down compared $X levels to Operating $XXX PIRM levels. revenues, charges first refinancing in investments XXXX to operating by management which million, X% in million of unit continuing benefits. levels the quarter of XXXX. and The incurred in higher $X cost related totaled income decline $XX discrete productivity lower million impact also million of driven mortgage

reflecting million XX million quarter First XXXX. compared to quarter period. with $X.XX compared offset to income the adjusted previously resulted net income EBITDA Diluted approximately from same segment of principally tax compared and in levels up in totaled with lower Adjusted million, in adjusted first $XX points. Adjusted revenues, with EBITDA and higher totaled $X.XX continuing management $X $XXX totaled discussed from XXXX. year with XX%, quarter totaled operating modestly $XX Adjusted The million margin for provisions. $XX XXXX the expense $XX $XX totaled was adjusted compared lower interest EPS the in operations compared million, from was in in in million, XXXX. benefits. million prior of $X.XX million $XX quarter operations EPS partially EBITDA basis reduction EBITDA XXXX. PIRM compared UWS first continuing $X.XX EBITDA by cost first the year-over-year

to continue significant of free we generate Finally, cash levels flow.

which million, the second our $XX of amendment EBITDA, flow first, support quarter last quarter rate XXXX, trailing million; the investments legal conversion months second, these on XX items: XX that for and March second expenditures a accelerated accelerated a contract XX, our Normalizing the in XXXX discrete for capital months a million rate target. benefit from dispersed impact recognition to several XXXX; included been of adjusted approximately the $XXX timing items, of XX have months free our of XXXX, $XX longer-term our would discrete settlement XX% XX% operational For achieve cash basis. approximately by the impact third, margin efforts and a of conversion ending totaled revenue of which

expansion data time, debt of opportunities and generative business effectively cash productivity and a relentless of Over management, insights Our margin on balanced growth driven investment shareholders. model. in our durable is resulted return in to the focus and capital has CoreLogic

management X this plan share XX% the approach million repurchased we've common approximately $X.X $XX years, repurchased to our to Over shares XXXX, balanced past of to billion. continue capital approximately and for outstanding or of we In X% count. X% our

make In financial to full debt against voluntary lower addition, during we levels as volumes' loan managing outlook $XX unchanged. remarks X% first guidance prudently XXXX outstanding with elected on will million on we remains term my and obligations and unit focused market close discussion U.S. of year the quarter. financial guidance. our On remain I today our a prepayments

market our second updated full quarter and million. to of timing, year cycle. on based With of in current as expect to our range view be XXXX $XXX upcoming quarter during to revenue provide accelerated second seasonality as release normal regard million the we the of $XXX will well as patterns investment needed We volumes earnings guidance

wind turn results our Q&A. technology quarter. the continue the related EBITDA outlined range quarter, the financial strong million for your impacts anticipated of achieved currently second we AMC and outlook platforms. legacy technology revenues adjusted mortgage Thanks over well be call in default to to conclusion, adjusted The the of solid for for in to In of of financial and we I transformation XXXX. the expect just terms and our $XXX time throughout In $XXX today. the EBITDA, operator And now are results operating will to million. include to down back deliver positioned and for I we first very we believe

Fargo. we with Bill our session. will Instructions] begin from Wells And ahead. now go question come first [Operator question-and-answer And Warmington will Please our

morning, everyone. Good

Good morning.

XX new to So appraisal Back guys XXXX, And for and want if for I in you're a their secular business. to the growth first about is I you terms handling the to meaningful portion announced customers. you to market ask opportunity today July you capture? also consolidation question had of whether ask ask of in VSG volume share still and appraisal an about be market wanted consider

Yeah, you know, be an an market morning of some has And around I when experienced - been was market to what is which had projected Bill. it in for the clients - and we as expanding we appraisal was The the thanks have we've assemble Frank. opportunistic. think, trends to Good so company, turned put some This challenges the the Hey, question. and saw in expand opportunity market. our And contracted. accelerating market, more itself. major have may

there has the been a in bit So a there. noise of equation

in still see the we think area. opportunity appraisal I valuation lot a of

great a half about which business, have platform of now We revenue. is the

Revenue to the we're had we're to flowing two to the the all AMC automate still in founder to that is a portion intended is mentioned, is into accelerate the process. trying technology that. concentrated What value you on I clients clients think from greater drive offering. degree. challenge drive the and large do We through for that although

I program a more think and turn in more accelerating rapid automated are this faster will we transformation result And that model. my in remarks, I a mentioned time as diversification.

It different this turn value folks at would to for high not in But juncture. it my speedy model. every So will appeal high the quality, appeal will estimate those looking times. it's marketplace lender to be are and that a

thing properties into say, of have unimportant other not that The data. generated set tremendous our I highest data which value most It's the on and repository. is been the probably is operations current that's appraisal would amount

derived those and having operations been that's data. value through tremendous a that assimilating is there So

I change it's in a So market. the think

moving I think more resulted even automation our I going forward probably model. think plan in it's on and to automated

market Eventually, it I grow. think shift. the market the will grow with secular will

premium will grow It for it. focused we'll looking probably you earth premium don't We're more along on through growth think I value if shattering to that. think revenues. higher - hot - I be going with margin we're

CapEx. we Got tick it. And then in up noted for the follow-up question, my

to driving whether or that, Google wanted was Just Platform Cloud ask that there? what something else was

had largest up and to - think is we're - - the XXXX actually, by savings GCP originally spending trying due away on it's some I platform. Yeah, it's even as we're beyond. so much possible what we've Google And it's the as trying much we as largely more possible the trying investment do moved derive to mentioned, I largest is planned, as get as than for single far and to to to

- on by and of the really more chunk doing would away other far data a spending it. R&D I that's the So biggest repository. say is we're the related lot to

So again, as on structures, spend visualization I mentioned cetera. we et

So that of it. the other be would part

you Got much. insight. Thank I appreciate very it. the

Next.

come next our go ahead. with George question Please And Bose will KBW. from

of bit for guys. attributed noticed dropped I Hey, This much PIRM Symbility [Tommy] Bose. that is little a on the margins year-over-year. How that [ph] is acquisition? to

minimis. de Really,

calls, that there lot as going a on past Tom, lot of investments, think into I of the said is segment. we margin, a

investments hits the with as PIRM previous slowdown. had a bit areas the tends the PIRM we of well. hit focus caller, I quite higher margin And our our as look just at think you you then market slowdown - - Market investment in if that to about well. So talked

So that's margin. it's of rotation the a that coming with the from bit it's lesser bit market. again little there, causing making a investment we're the primarily amount of spending little But

was sell and there impact about that Do data a separately, your headline Equifax Okay. expect any then, partnering banks. to Thanks. credit you up FICO business? have to And solutions March on to in directly

No.

guys. Okay. Thanks,

go Kaczmarek will from question come Associates. from And Please ahead. our Zelman Kevin next

in starting buy this of I data much already eye on iBuyer for that design these guess, in remotely of Hey, your noticed or where limiting a your in types pickup guess, based your models are visits. either valuation guys. from making Thanks of can with process in including automate I with home recent from you services? trend site in-person eventually benefit to automated number in seeing you questions. homes quarters - guys demand and companies buyers to we've an taking the the significant

scheme I volumes in the I would the nascent, say, would U.S. grand Kevin, in say, the of it's still fairly

However, our I of seeing spending. reasons, this think is an more technology you're That's and accelerating. broadly the in frankly, that area in one acceleration

the year, home big It's focus HomeVisit is of a big around visualization I ours. up in buying is that fintech. which We picked think experience a property. the focus last of

going I So think space But solutions property a experience. perspective. nicely it's the amount from definitely significant a and platform several very much how our realtor home-buying it our a around perspective, think experience see from certainly evolves force. buying play of I that home you're to change. a emerge next think going the and We'll I And in we years to lending over as with see the fair more

Okay, you And growth markets a with a on without sense maybe great. of give either with bit, give sense your the the like Australia of us or the you impact seeing businesses And hopefully us can revenue, on then a can - international slowing you're of there? acquisitions? some

in Yeah, bull international had to front a that run in hey, XX% on the also see XXXX, international did in see hit They've business we down expected for million be about decline. to to some the are that, market. multi-decade well. Volumes Australia, starting $X.X Coupled FX number. as so with about that we had impact we million $X some are the that

down when you seeing this you most subscription you're guess, when there? say subscription revenue seeing or volumes and And - and is hit numbers, sensitive I that or of are impact have volume you're that you see - the revenue levels

have We both.

it's also it. of a a more that. that you Yeah, a have the we they've number. in these mentioned issue expansion - banks years But market. are slowing as slowdown dual volumes that, of and But small And banks. Kevin, institutions of valuation scheme point the in the GDP be the Royal revenue for platform grand the some it. Commission of of things impact at obviously, when is company up bit kind volume housing a, a of at very But - it's on a probably in of XX there. looked the this along see on going to is has as mean, the significant that which they bit the very in some of characteristic were prices, big an would expected. so had had and with the FX - Tremendous that Australia. One is But run they've think as practices little some of two lot pause I spending there caused Jim think repercussions obviously, that has a is large focus I in certainly say, discretionary I a the a down they had larger

thanks my for right, All questions. Okay. taking

And our next ahead. go Wolfe Peller come question Research. from will Darrin with Please

seem in tougher. the business sort side see much like going give you. I what when The what being bit mid to and at in is tough kind thank and more may mortgage growth, look, a the potential, Thanks, want I maybe profile good facing mean, of times. data Can that market. still us right to just the well. of sense backdrop you these is is the really be? organic high off, being Guys, would just Insurance we of it think we drivers a guys. it's non-mortgage, Frank, neutral of doesn't sensitive it forward side mortgage right, of the a All maybe are markets looked mid-single-digits, growth the levels, you showing of higher the growth be reality environment little start business' just growing analytics mature international And

lot have right - all, we a to think evolving Darrin, of I think first don't adjacencies. make continued I the investments. think I I non-mortgage about Yeah, to talked

I think success there. great we've had

platforms, I on which recurring think that the more streams revenue emphasis is are volume and sensitive.

are introducing think I those So greater stability.

we've - well, at before reality down significantly the I year look and inorganically you held vis-à-vis markets. our certainly think really mortgage that I think and this been held cycle both last and up And the well. has I revenues organically, the is year our If think - year up

forward outlook. see to don't I reason any think the change I going why

positive eventually, I kind next think moderate, are grower. be we're this projecting market And growth an there the U.S. Most still change, in in digit and should the will couple the downtrend a single people to mortgage of market years. the then cycle with acceleration, turn

well-positioned we're that on I to flow-through with really So capitalize high rate. think,

you're we think, I still So should - that. see still

lenders. think, And about now, just happens, the I spend had lot seeing that a frankly, the they some client our you're And - I to not a constituency are we've on the right just we And lot then friction anything of reflects money. when than side. of think, on anxious talked really else. certainly on AMC pressure more

we'll into think I So factors. also get those

look be that see the - more clears. with of that's right at as look mid-single-digit consistent. way acceleration again to And it going the the as you I right cycle that's kind at the You're think to business, some

Okay. All Thanks. right.

plans a in follow-up. well. cost takeout to well. The quick as that Just And obviously, continue progress came

areas, how the all, data guess, didn't typically know your I mortgage backdrop the better, EBITDA same there, thinking the don't I but you first what guidance? the your seen trajectory you around your about we've that? curious just know of you especially are quarter, it, in thoughts anything this of in you app So update are in

Yeah.

at as the is to ramp. look we're mean, you season see see the season, look talked year, about, spring everybody at Jim think, like looking to this going normal selling I I as the what

far, I around. so okay. it's Rates have bumped And think,

going basis think now rates I of of of be, see. to I here But with makes think, make - normally patterns couple there we to lot of to seem a and fine seasonality as a the this year kind a sense. think, and sensitive more it points lot change. we're I the is market - right But consistent a than

going That's the as lot productive transformation, a to operational going year as of I of company. we long the revenue think the be And more most I a automated next to to - the not probably driven we're second AMC half intricate be we operationalization, is into back Clearly, the quarter of first for to that's half earlier, get think, of we this offering. that's year of the wildcard because year. for us year, - of but word, that's to setting planning. - hit said the are going a this that's and going the

So implemented or structured in-flight. We're the my not looking for have wildcard been company I that's mortgage The XX%. cost XX% of really rest programs some magic the is all really biggest The very and the bullet in mortgage have. that we takeouts in-flight. has operating out mortgage strongly, target, are there to view, think market, the top-up, we've market got everything launched we declined the since

done actually - we've if and back is did. good when. a But back than way lot at on cost So what we rally, look were you side teams - that's the more what we've we looking at

So a AMC And impact of we think wind-down stuff really is going I a think, technology peter the I are the still really the the the It's wildcard lot in into chunky piece with the AMC big - in off, so first happening it's drop. shape of see fairly it. year. good quarter you'll technology piece. that And that of legacy next

guys. you right, very Thank much. All Okay.

from go next comes our Sabadra ahead. Bank. And Deutsche Ashish question from Please

question. Yeah. Thanks taking my for

that the and share and property there going in of on gains? the growth sustainability there. what's the So driving tax, Can Was good some share saw and my forward? you talk you flood was gains about question

Yeah.

morning. - So good

mentioned of but and - businesses with and have and tax having strong, flood, flood consistently offerings capabilities. tax had of outperforming. across, our my both prepared course, in only So integrating not the been success other remarks, we're lot I a the

areas. have the has and enhancements flood, growth of pricing supported their I'd solution our products, to also revenue as set So case that of in in new streams those flurry driven well. and we've also product added a the say had success and which

those it's I factors. So of think, combination been a

now. should forward? for volumes Okay. then for a And the be of declining would a in How going growth and that revenue helpful. been couple property be to particular front there think the come just quarters that As mortgage line about - catalyst that that site have the back, business? That's on that starts the business

growth, pickup be volumes fraud pressure. a would there. to volume a catalyst Certainly, But that. for our service, turn, so directly as like for we'll unit example, is - we Things particular market will mean, those be related I to subject see that

on addition, impacting fair in and of towards a as we of money spend back service some that In revenue well offerings I half the of be way. that in the improving positive amount but a impacting year, trajectory area. expect our levels probably the to

Thanks. helpful. That's

with & question go next from William comes our And Stephen Blair Sheldon Please Company. ahead.

Hi, good guys, morning.

First, within back credit industry broader pull solutions more than seem headwinds. the to

in Just on level and a you color maybe trends view any can provide high forward? outlook on business going that

Hey, Jim. Steve. This is

on there's was pressure lot impact, had some share thing had On the going business we a a other credit rates. side, the market of price particular the with clients And of on due the we credit solution, we shifting part then in fallout saw few the things. volumes. that obviously One, to also automotive

of age average volumes. fewer have the vehicles, at and look you you it's If extending

the as us impacted quarter. during that So well

about I then, you Mercury appraisal before the like can be for guess, talked some platforms, the the That of it. And into within tied expanding title that solutions helps. follow-up, Got FNC orders. and type

I So platforms? in that driving help the be in opportunity the guess within terms can company and of where that the there us you opportunity frame might context, appraisal

platform. been that's have and a the put as Yeah. been I it's great add clients on we're mean, capabilities for more adding there the - us,

the half opportunity opportunity ramp volume only year. will the first a as that in - really well. in We're margin operationalized decent last We're of us be So starting starting good I think to an we for second to quarter. see see,

progressively and the was quarter, growth it's to title area it's reasons So the material But high I operation first margin did of in one add, grow those say, the and total think not, supporting that there. that company. will certainly, I'd

the other there us us. helping also - because front support with, provide the is there, on guess, of the that for help as so area front and I are The well program some been analytics that's too, piece AMC on those it they the platforms us with automation

Great. Thank you.

Gamaitoni come question ahead. our go from Compass And Point. Chris from next Please will

Hi, the guys. I wanted CapEx to follow-up on spending.

had accelerated relative I of would was if the you the wondering to look you what like something what levels estimate the the noted look an and first You year like to XXXX? XXXX would quarter. remainder kind of of

Yeah. more, level how year-over-year. - think - guide probably numbers be see you on a Hey, little to obviously, It's but Yeah. I last year. We little doing? CapEx, bit similar Chris, we're a should could don't but bit similar it a you are targeting that

that's kind on of So there CapEx. the headline

similar So number to last it's year.

Sorry, I'm that about? over year? thinking similar what It growth was last of confused. level you're Is

Yeah. Chris, exit third saw you to of list expect the bit continue higher, in quarter. that then could into And ultimately. be was the and on quarter the somewhat. descend then, last fourth And we It a quarter to XXXX, we second start CapEx as more HX heavy QX little year. it the should

very give the on for Thank us have gave I - impact the optimization revenue impact was impact And you. EBITDA That's helpful. quarter. us in an and you Okay. first that exiting wondering occurred then an you if do plan. and or AMC an estimated legacy estimated you

Yeah.

revenue decline, assets. pretty First modest. We quarter the technology on the obviously was saw more

it's early I would modest pretty So stages, still say. amount,

queue. the Thank in I Okay. hop back you.

And our Andrew Please next question ahead. comes go Jeffrey the SunTrust. from with

Hi, guys. Good morning.

morning. Good

it the you've and of by exposure. that there you sustainable at to guess, I mechanically pro just guess, question, you're that the you're the you the I of sort forward guess, two-part the from about way, feel appreciate high level think business? comfortable virtue right of a of kind valuation way I the desire the get and your changes Do is making assets, got in a of diversify I strategic. of you shift? for composition like if strategic goal bottom line kind as businesses, that Do corollary, when forma which growth? look strategic And you sort go business top for mortgage

Yeah.

is this - Frank. So

- not across think, such verticals, market was so will by depending we're what obviously, but to First ebb the factors XX% of as things, composition company the all, - that trying is and do XX%, of I in, the revenues. mortgage mortgage so and company come volumes to have dominated on, we're flow, the the will balance frankly, other

dramatically. back that pull we So

And a that even in feels The is great a high to pieces low non-mortgage and so XX-XX pieces that, of that's number me. the the are why theoretical I'd of goal. cycle. say margin right kind mortgage

the that's data The the go tech company and engine of. off integrated. increasingly the the stack think repository I and So to infrastructure of is

new So services verticals. and we drive use to that products can different foundation same into

So there really do and things public what to with insurance we're like then that's sector, things like trying others.

much, capabilities a think international don't perspective. we to term. there opportunities. I than as ever - do good. talked we're expect, a at at we a position I'd out So the mix an better I opportunity look as longer We from we've been in the current is that Is specifically that think, is have we so moment, lot of but not there at anything it, look about

capabilities I revenue think, client set tremendous streams, great we've of set. more a got It's diversified. and

is I of good. think, diversification verticals

the that of out out three challenged of coming so because years negative really has mortgage in - it's frankly. unusual volumes Just quite any recession, cycle, mortgage great been

strong when employment So - economy. a and and got you especially full

in through have next to you reasonable That's just I we be of to that. a not negative think, couple obviously, the of years. to chance work getting so growth So forever, have

question think, We're going of That's way, your So the of not us like kind our first not to to AMC is to, shrink your down alluded I XX-XX. shrink going position. our maybe to the part intention. I

ride be, it of the and sit the more traditional across and to those be is in going just try to we're to that to what it's going going that. value going as our We're think, for and product done on it's on offerings, action, - different the proactive AMC reiterate of to take we if and on I value about AMC. offering. can offering that's And is offering, think have piece for a the And there of we I it. client there not our not we've So all It's premium want value more clients. clients the to think where add the just higher

be to traditional more I versus model, is what XXXX, together think, we it's XXXX. compelling which in back the going put frankly

So AMC I the about strategy. good feel

Thank helpful. you. That's Okay.

Please ahead. from And Campbell next go with Inc. Stephens our comes John question

Hey, guys. morning. Good

morning. Good

like And with it right? $XXX a down in year, expect you XQ most getting make of called also this sounds hitting you and product business million impacted this the this only, XQ $XX year wind-down half I'm to in XXXX. of and on is that guidance. the impact range rev see much guys I million of then think, of right. transformation, out, impact going the the to That's want for you're not Just a second sure, just to a revenue this I in negative

assets, of I because the we our about don't drop process. to over and you through amount a the the wind-down, million a $XXX saw that in feel we're commented AMC of But we've million and a on figure, combination working software about this to XXXX think, time. million with predict assets. of exact of it's clients the $X off that will is right. amounts, the progress still hard But range $XX And modest software is it's XXXX terms the on the

I four But roll to over would, next you XXXX. technically I into Okay. you expected take so guess, that the think quarters, XQ off you said,

So to of this of into XXXX? are roll some part first expecting the you

to important of - is clients a The the services the AMC just just John, is, the it, two pieces variable we of more is lot earlier, These volume. really AMC. a so - bigger because I it's think products and involved. have Yeah, mentioned are as of

of volume other while. switching the vendors So takes to a that

runoff to in a going there probably estimate that's this first be the quarter. - juncture. It's So my be will at best

stub small. and really basically, in just [ph], it's minimis default down. area, be the But very, say, I so will I'd that's we're sharper think mortgage very de on - XXXX. across ramp quarters the revenues all But a [NMTS] technology some, there the

what really, I'd it's the to the and third in at second ramp all up but juncture quarters, around the and fourth majority not and - ramp it's say, third ramp centered project, start is second the So our would the we're on quarter be this quarter, really to will then - hard will majority, quarter Again, say, down. maybe particularly but third ramp quarter. I And planning, really talking that AMC about transition. all, based say clearly safe the to

question. great moving That's then And are - be your plans color. talk But you as opportunity? is upstream bit that's around project up looking a whether little what my a What kind achieve guys of they're to can Okay. the and to and going this follow-up, to there. of the you lessor needle to guys of upstream margin

Yeah.

say actually. prefer But we're I to it. on think, competitive for reasons, that not just working I

I to it's detail. think, to get just better that not level

Okay. something so [ph] is guess, it exactly talk just to hands, guess, your is And system I it can you [MOS] without, I to showing with what speak. I maybe doing. you're mean,

our is data and To the on better way We're and make to real facilitation the working for data use the estate with management there area a on area. focus manage biggest in clients data us. the better of

great. look future. in We Okay, further the updates for Thanks, guys.

comes question next Oppenheimer. from ahead. our with And go Glenn Greene Please

versus at you. how running kind you're sort of could point, it expectations this efforts saying client qualitatively and any point. talk maybe or AMC transformation your early Frank, feedback, hearing Hey, you this Thank at about of the internal

Yeah.

the We've the say, it's great, variable feedback to, client the love gamut it. I'd Glenn, no, client. I is got, by from from, runs you thank think,

And be that's to I and so it's - think I think expected. really

are of service. I new of with in test a clients that think we the number aspects on different

service. about with some the feel capability. of new in the are we I that, field So really good the

I price market - I we appraisals. look - at certainly But I to think think, where mean, that okay see the that they I least the a traditional would or with clients expect of they're of clients they're happen lot honestly, just there's it. in as value number I a forward, traditional, our compression, of that think, value and cap it, and like of on So

that news. You the guys in hear

So I we done. offer think, need different services, to we've

terms vendor think, in in have of origination are technology because diversify operational you when workflows. of actual a change, QC, And the the It's that service. rollout embedded got you've change, you operational I complicated, overall et of your even lot new cetera. workflows clients network

of while that it And we national So level out. figure the a one providers. then, takes few are

a it's it also counties, to well. they're So so these we're - aspect in geographic all as

So and it - and anything there think rocket your sound but sure it quality. a is you relates it to the carefully as your right have down, is moving that just don't make processes producing lot time. are parts. And of I to takes to ramping science do safe

revenue at but at thought? valuations you much big I I it the clients quarter. the diversification you as of or as of two the the than was in the - suggested evaluations any just did point? is thing transformation certainly, would from the to seen we profitability upside strength, relative big you explanation Okay. much - efforts update And then, better this our perspective down because revenues business for on the down interesting least could wouldn't have it call And slowed also was in year-over-year, us quarter the was haven't expectations from But haven't you impact the guess, yet.

Yeah. business first was platform We quarter, the we my in actually good. grew remarks, - as the I mentioned which grew in prepared

actual the trajectory it's hard revenue. juncture, split not honestly. honestly - quarterly reason I'd the transformation you wasn't talk the diversification I of that But about had say that acceleration why change, terms a this We our estimations, that's revenue the did of wouldn't I'd - effort, - say In we if big there the tell. at certainly to say affect

But I it's slower think you it it's when I thought. - little just at was a complex. I guess, look than it,

into and then third So up as as [indiscernible]. - - but attrition think the I will forward go we it ramp June the we And quarter. mentioned in will definitely I

on revenue. the not better we with going were reason why certainly it's So

Okay. Thank you.

Jeff next our with Meuler go comes ahead. from And Baird. question Please

Yes, you. thank

just and you just environments built just when of margin pick profile about can several growth platform the you, up the are business, us, me you're - what the what so which this thank is then, And remind you on - that at. acquisitions. it's running in business me through is Let let point, talking platform it last

us could So Thank Like, you. what's integrated what's it's operated. standalone? businesses couple different platform? integrated, or in there let related of just how If are what's know you

integrated. it's perspective business a and management a from so Yeah,

think solution it's of and you've is is an entry Chevrolet, you in title. what of of if The businesses And and we little look - profile for - thing. not right like is a acquisitions down at it's well a And essentially, the above revenue now, growing. I the Cadillac - should the growing Buick growth if profile, gradation also look of So of in different, growing order for more have valuations. I end-to-end said were And business margin would I fulfillment market different a I and market down and over would XX% - we constituencies be for service power for type bit It's offerings. still We're market. the in say the - $XXX the will a a that, growth that million we think grow of the you it's X%. it say. context, and the - year, it's seen

I think that one it's and to capabilities. business a great is So really complementary other

in that more that. than it's get year. stoked as XX% about really will the out it really of we're And become total of we and So this revenue become area

Can kind platform, And along down lines? of the your break what's more driving it by what's between pushing initial through growth growth you volume the those clients clients, services? new clients driving like -

I would share and been gain, say, new a new we've factor. the so of of that, biggest service, had definitely, think, have drivers. been a Jeff, way lot I the I would clients two say has Yeah, that addition

it'll the to just not, at at the sub-segment then Thank And I if for segment in helpful. in least level. the the Q is possible you. acquisition quarter contribution But That's last, give be segments ones? Okay. the the revenue revenue, it think us to

Jim. is This Jeff. Yeah,

had And we that the of acquisitions revenue as the on bulk two million. smaller The then Symbility. $X $XX million in segment. On that $X well. some about we UWS, had the contribution to But had had M&A, about PIRM we million was

helpful. Very Thank you.

And comes Jaffray. with from our go ahead. Johnson next question Nick Please Piper

question. property Deleeuw. for Thanks Jason the new actually business, I'm trying to opportunities I'm just for is opportunities the products. taking This a get market sense for in you data markets? data roll new to property market by Hello. products new growth that a drive Can customers moving out? the sense. we into business of get new trying the Are can for outside just there new

Hey, is Frank. Jason, this

public lot a for is mean, I with R&D, the yeah, Work example, work. spending, we're So, sector. of R&D the the doing

revenues FEMA. We have like great outfits with

revenue Department We the Agriculture. have of U.S. portfolio of a like with growing

So sector that have client future. datasets us producing growth in and area up and for opened costs, State growth and will And taking I relationships et cetera public for granular more the as these big be the more a well. us the real area time so. think also are more a local been

Lot investments. Things think growth like the plan. visualization buy data of talked So That And like, about for home data. et cetera. We business. properties, virtual it think those well reflects visual is I the I the in of the areas tours, of ahead on of data, of staging, around properties. our demand marketing visual

know emphasis, community mantra in around that the there. your there think - the industry, lending lenders have tremendous - big it's it's then and traditional property, A even property I is data. involves you right on tremendous are a now obviously, there lot been demand So a

usability think reckoned trying the that's And we that that today these advantage data. to company some the has I and an have and is do we're we what of making scope are through maximize so, the and And delivery - the systems in behind. where sure and data quality were techniques to that have of of different investing

is varies I there we The to really get fintechs then, around public information. think energy, end is somebody that in a I of of partner earlier the - of started powered around. our area, a lot a with cases. think fintech call, think lot They're mentioned are in by data number trying is there well. for scale sector, internationally of of me biggest to think telco property But demand demand big I So obviously. a centers And area it no demand the and the as I of as

there traction. a will some So I obviously more right table. and as far of small at they I'm think And go them of from quickly come numbers and but as concerned, gain the pretty now we're them, that lot standpoint,

areas. are a opportunity So lot there of

like just much percentages, that don't use to could XX% a I'm this the is property sense want a I the increase meaningful it like how of business? increases know, to And is then, market mean, just a get much - of addressable for don't it sense opportunity trying be. quickly, just any how of if data you size mover or, maybe increase? I of your needle

clearly think other you sector public needle contracting, things - sector, there the an I movers. things. like That's obviously, like, get are are that the again when into area public

big factors, longer but there, certainly, on dollars where got you You different depending play. cycles and

would market number a So terms study more numbers market, I question over all there a is it's We seen really years place. in had - that, addressable But vertical. say by I've significant of - that's done the of ago. and a

enough billion total hard size And is, our what prize business. to billion] be got it's so the the a material [ph] billion, $XX tell but to significant You revenue. to [$X it's we're - of $X.X

I'd yes, individual these on some say, So represents opportunities. collectively and all with level, - an those opportunities very significant

All right, very helpful. Thank you.

from will ahead. Sabadra take And Bank. we question from Please Ashish our final go Deutsche

this model if just quick Sorry, lot organic the wondering about yeah, organic in just a question But Ashish quarter. the a growth quarter. I in had Thanks. you you growth the know was I is again. gave thesis. had different of I

Yeah, is this Jim. so

then, X%. essentially was flat. And the the way that write-downs were M&A essentially impacted and And down growth, us there And growth about market X%. X%. about And organic plus flat. about overall, was X%. by it were organic so the therefore, you is market get On - was a the - FX we

the includes AMC. that Now,

that If you take we point. about were X up out,

Jim. lot, a Thanks

Great.

today's And you for disconnect. now we Thank participation you may conclude your and will now conference.