Corelogic (CLGX) 3 May 202020 Q1 Earnings call transcript

Thank you for standing by and welcome to the CoreLogic’s First Quarter 2020 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Dan Smith, Investor Relations. Please go ahead.

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

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

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

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

performance meaning and expected that laws, including securities pandemic. strategies during note may business please expectations conditions federal operational presentation, we regarding acquisition the make as the concerning of our outlook forward-looking and our Second, well today’s COVID-XX statements growth impacts and plans, within and the industry statements of as

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

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

pandemic statements any available Our and no the the as intend and for update COVID-XX of duty currently information well on undertake to forward-looking estimates these impacts to do based not statements as our reason. we of us are

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

me President follow-up. CEO, take end the permits. of please now Thanks time limit one the introduce at and Finally, additional call questions a our to Martell. with let We’ll yourselves Frank question as brief and

session. to I initial discuss for and operating financial first the will today second We’ll address of Q&A year call. quarter our quarter key the with year. good finish earnings first up call results Dan focus CoreLogic’s and our you, first highlights, quarter of summarize afternoon, and guidance. quarter Jim and everyone. our response areas financial a balance will full COVID-XX the and Welcome Thank financial Today,

the strong driven financial insurance and operating and our were programs. CoreLogic delivered platform-related reported core in ongoing outstanding by line revenue operating growth performance driven and spatial mix, significantly favorable quarter. Margins first leverage We businesses. and an up by cost acceleration mortgage, productivity in top

first operations core the During quarter, mortgage underlying surpassed trends. our industry

XX% fulfilling Regarding activating CoreLogic aggressively included the our focused COVID-XX plans pandemic, obligations. laser continuity protecting our management We and employees on crisis our business client March. is during deployed securing finally, facility This multi-disciplined management chain, supply required adjustments approximately workforce environments. is making now in deployed our data in teams, of protocols operations augmented and our work and technology and home-based

to our safe of We required aggressive to essential cleaning infrastructure and role from actions as are to due case underpin as our critical an and facilities where have finance and social the our our also sanitizing make workflows important employees the facilities, we housing many workforce that possible. In economy. other designated supporting one as implemented housing work distancing,

job Importantly, uninterrupted our outstanding clients. and employees a to service done great have our delivering quality

unique data market and solutions countless agencies and participants. carriers, its and to strategic financial reliable driven financial government partner insurance housing professionals, operations strength, estate durable, a with and remains CoreLogic, institutions, high-quality other scale strong real

optimism. remains environment with While on changing to COVID-related agility, full global CoreLogic the organizational navigating impacts the team the of economy and seen, extent is be the determination

needs. and We well prepared to emerging support client are existing

which first were the largely up down last course XX% technology normalizing of the in wind results XXXX a Total ever revenues the in a months over measure, the of first to for every almost of From quarter non-core company achieved CoreLogic AMC we year. quarter and start transformation both strong its three By were and XXXX. financially. perspective, completed had financial best units, operationally

through leadership operations the industry bundled provision our in office mortgage core best of market efficient and and data the and build back technology solution gain infrastructure integrated Our continued and that repositories. to leverage packages scale

new capitalizing reliable gaining for processes. In strategic, on of been to innovative seeking several volumes strong addition underwriting clients partners market quarters, their over critical the and numbers significant past we’ve

our We have collateral servicing, core mortgage including as service. gained and as solutions new our tax valuations credit reimagined AMC customers mortgage across flood, well for

Regarding I to discussed half our mega share tax gains included wins. second the I servicing and AMC boost revenues. just several solutions, share significantly expect gains

volumes a several US with a market level overall elevated remain quarters. volumes, levels of likely at mortgage high outstanding believe our economic as of that externally internal refinancing clear incentive least terms as forecasts considering available will refinance, activity In at through we year-to-date mortgages next well to the

refinancing important in decline should transactions. an for provide cushion likely purchase activity Higher a

to activity third to COVID-XX forecast likely will XXXX in full quarters light purchase volumes year economic unit the fallout with as mortgage more and believe But early our in pronounced. second pandemic, trends, volumes of with the on considerably soften mortgage a of high be In levels. the expect We and that becomes current pandemic view degree based the prior it’s line year of from we indicators certainty. too largely

non-mortgage verticals first more in and X% quarter. the growing currency off revenues solutions the insurance during and are with Our than local international by start to quarter spatial a solid

and in growth our solutions. We also analytics modeling saw

to solutions, in as property valuation marketing and innovative We this insurance in-flight in the and year. in our expect growth new areas capabilities imagery gains and second visual recent models beginning boost spatial of half revenue share platforms, such investments

ongoing improvement of helped our margins which to record for revenues is in favorable over productivity prior as higher XX%, six an First million, well quarter $XXX quarter totaled to EBITDA level year. first revenue gains EBITDA leverage mix us adjusted as points full percentage a any and history. drive Collectively adjusted operating and

the application company delivered target. and shifts targeted has in combination the XX% revenue a Over of line in leverage achieved three and scale through productivity mix, past quarters, our levels margin the with margins of of our operating We implementation initiatives. favorable

constituencies strengthen ecosystem. housing generate our margins and These unmatched data to strong grow critical the and we platforms, in which continue activities the of many businesses streams mix, revenue with consistent and solutions. of terms our analytical connect In revenue leverage and most

our years, services built have platform related insurance several home expanded mortgage and/or underwriting, we related past to and the Over solutions. and marketing spatial purchase offerings

share our our The are performance solutions growing valuation evolution of how towards business valuation we launched platforms. market. exceptional we into Building XXXX, XX% our market mix up platforms as shifting example the is a a into off XXXX great leader unique collateral innovative over delivered picked collateral a an of trend, to and start off strong

in accounted quarter. Our platforms for collateral the approximately of valuation first our revenues total valuation XX%

to productive continue drive leverage operating and also initiatives margins. and Scale cost up help to us

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

levels, XXXX, XX-month flow rate operational rate simplifying organization, In of activities achieve free we and first by other XX% conversion managing helped our quarter. costs run Growth to staffing automating certain in cash to and the trailing margin improvements. expect lower us expansion

and Our times. resident durable these business model cash unprecedented the positions generative the us opportunities address to in challenges well

strategy capital allocation remains imperatives. three anchored consistent around Our

line capital in infrastructure; finally, solutions, of reinvestment management appropriate First, our levels significant our debt targets. and our prudent platforms, our to long-term with in human second, and shareholders; capital returning

to visualization growth a opportunities sets with structures of into for and platforms expansion. advanced terms technology generation operating techniques, and leverage, multiple new as and these reinvestment, the priorities future focus well build tap capabilities our In data across automation on allow as particular next building margin verticals include foundation us quality, capabilities additional

of processing, we digital, the workflow new marketing and in addition, valuation well tax platforms solutions as our in In realtor models rollout national investing are digital visual new as business. and tour AI-driven state-of-the-art

new mega recent learning-driven are to programs, generation out productivity supporting in clients, a a as mid-XXXX, and and we will North intake Finally, the also of build next including be AI discussed Beginning wins the launching earlier. located be new capability I and to onboarding company production machine data in initiative funding America.

million we months, in XX $XX greater flexibility. and chain to to million to which expect costs initiative, and production $XX XX provide and next supply time the reduce expect invest important we collection this over between Over

this of XXXX, from long-standing retired repurchased our capital of the has regard, A in to return XXXX model our over consistent to we shares. common principle shareholders. allocation capital our In been XX% and

paid initiated a $X.XX quarterly January. program. amount of authorized of second of quarter During June. We dividend ever the Board first XXXX, $X.XX common our the Yesterday, in in fourth in we dividend share our per payable a per dividend share common

gratitude, person, remarks by our times community and words team and against in owe to unfolding. also our I fully professional, my every will today significant the government We and express. their employees, department support. than thank members, the of thanking fight still responder, conclude behalf are to for certainly No want debt are nation health X,XXX sincerely a you be untouched. On or clients of more COVID-XX. global of care pandemic and shareholders volunteer the I unprecedented engaged These global first historic cannot left impacts want

start XXXX. great a to in off We’re

delivering we what our can our stakeholders. to controlling We’re and control commitments on

team to our Jim push us insights, cutting Our now again discuss transformative, of excited achieve strategic challenges for edge, opportunities platforms value we’re we to solutions. and importantly, up ahead our ahead. joining of about as results. us is the financial our vision And will for providing for today. stakeholders the Thanks create property

Thanks, discuss to first financial guidance. updated XXXX Frank, our and views provide results financial going on and I’m Today, good afternoon, everyone. quarter

the in the on XXXX strong commitments our financial crisis. of CoreLogic mentioned, providing performance for safety COVID-XX a client delivering employees our ongoing health of and amid Frank As and delivered operating and first while quarter the

revenue strong transformation XX%. of for quarter sale for which included: first, default was highlights X%, total the units of effects approximately and the technology Financial the non-core growth the XXXX of AMC adjusting after

market organic strong share Second, growth. contributed segments both gains across to

benefit client we are addition, which half to quarter, the XXXX during major revenues. second In wins added expected

driven million than payment this Fourth, business of Third, of a our represents the rate dividend. on the EBITDA free favorable of capital generation productivity primarily adjusted XX-month of $XX expansion in in gains. XX% EBITDA by approximately million conversion significant finally, margin basis XXX return the a quarter $XXX first of points, And more through of growth, mix basis. cash our trailing and adjusted flow,

quarter company’s and by $XXX currency international operations or core basis. also First spatial. $XX X%, totaled in mortgage a and million revenues constant The insurance grew driven million, up on growth

in our in the default noted AMC sold which As no non-core technology XXXX counterpart. attributable XXXX $XX quarter press revenues units first to million included have transformation, release,

the driven revenues. and platforms. of UWS million up a secured excluding benefit in property and including half $XX tax we significant solutions the by which by number were items. contracts fueled $XXX million, during unit volumes share gains XX%, flood, collateral expected valuation areas of second these higher up XX%, quarter, valuation are and mortgage market in totaled growth wins, Revenues solutions, client new or tax Also to revenues property organic discrete

these excluding discrete million quarter mentioned In XX% solutions, I included UWS of related earlier. revenues gains. strong property initiatives and first tax UWS items. transformational growth from XX%, share XXXX benefited the origination were revenues revenue volumes $XX market to up

In achieved generate half the second addition, in XXXX. to significant strong competitive we we that takeaways of growth expect

servicing For grew volumes on fell the and reporting, were up COVID-XX-related alternative quarter, by while XX%. more revenues volumes tax XX%, more than contraction. credit In than credit auto mortgage credit

we credit related businesses. pandemic, press the As release, both impacts to million $X we in approximately across related noted which experienced in consumer segments, we mainly estimated COVID-XX our our

to tenant a which PIRM totaled of currency to exit and screening compared the million Insurance of revenues lower were line prior currency $XXX approximately million aggregated year. $X revenues constant and business the in million. translation, higher, and the offsetting international spatial volumes, non-core $XXX impacts

of X%. currency constant operating was for Operating the spatial leverage, principally XXX% Higher operating $XX and income a quarter and Insurance million mix period. on year basis income attributable cost up or by $XX from revenue first totaled to each million same continuing to compared international prior the grew growth, benefits operations business improved the and productivity.

$X.XX, net totaled Diluted company’s compared $X.XX income the operating previously. EPS compared $X.XX period. to of Adjusted over same EPS in XX%. due from totaled These continuing an discussed in increases $XX operations million quarter prior operations were continuing $X.XX of with year with $X the XXXX, performance million an totaled from strong increase First XXXX. increase

million revenue year productivity of increase $XX to totaled approximately business adjusted period. Adjusted XX%, up an same and EBITDA margin Adjusted and The increase XX% in the million, to attributable of basis EBITDA programs. was mix cost ongoing EBITDA points. the in margin improved growth, prior XXX benefits was compared $XXX principally

gains. $XX million $XX to leverage quarter, international revenue and currency increase were margins million higher basis EBITDA margins driven by the adjusted totaled margins EBITDA and well favorable year XXX totaled and points adjusted UWS of as lower lower insurance and XXX reflecting operating $XX approximately of by tenant adjusted in volumes EBITDA mix driven XX%, was which basis million. the revenues, by screening productivity benefits, continued impacts EBITDA translation. adjusted points. PIRM prior $XX Higher for to PIRM million XX%. growth and costs, from as UWS PIRM up compared spatial of EBITDA approximately adjusted benefit the offset an grew

we Finally, strong flow. cash generated levels of free

of quarter March three XX, ending approximately metric EBITDA fourth strong flow the March million, a as to rate $XXX to of XX XX, increase the we months $XX the of build us of months. months XXXX. XXX cash our $XXX reported the XXXX, an last cash free XX has of flow XXXX, points allowed versus million For of XX% free cash last up approximately increase and an basis performance adjusted conversion This over million balances as totaled

per Combined first quarterly we returned our $XX approximately shareholders our paid return, quarter. million with dividend in we $X.XX share. in first shares, XX,XXX of capital terms capital In our the to of of repurchase ever

Frank As share. quarter the declared earlier of Board $X.XX this dividend mentioned, week second our per

While million shares $XX a annual leverage while represents return, maintaining capital opportunistically profile. prudent dividend to continue maintain our current repurchase flexibility of approximately to we

increasing based over conditions, revenue on today With remarks our as will COVID-XX-related and our dividend $XXX results with a time market $XXX range our quarter, recap my the our internal have to million. activity, on view million grow. of discussed, we business estimates prepared impacts, we guidance. of expect the to I the we in be of As second financial financial current to regard close anticipate

the quarter be in $XXX million COVID-XX-related to include impacts is These to on range second EBITDA million expected each adjusted to $XX revenue the EBITDA for ranges the and second $XXX $XX for of Adjusted approximately million. quarter. of million

of latest full ranges, impacts US as financial to guidance quarter of our first external overall well are results challenging and still quarter the on evolving will predict, year as volumes, mortgage guidance While our earnings part actual reevaluate COVID-XX and second as market and second estimates year our our we unchanged. guidance July. in with Consistent cycle update remains as quarter full of release past practice, needed based

summarize, To financial first XXXX. delivered in the results CoreLogic quarter the team strong of

throughout growth to well We revenue are expand and beyond. year positioned this and drive profitability

operator will turn the time the back Thanks today. now for your I call over Q&A. for to

[Operator Please first you. Thank Instructions] Inc. from ahead. comes John Campbell with The go question Stephens

Congrats on a great quarter.

XX%. you said off. platform up growing? question Within valuations, I Frank, Just How that here question. businesses a kick two-part make to First the think maybe quickly is

Yes.

just in about, talked over first collateral it’s our in So John, the I XX% valuation, quarter.

units. that the kind Okay. year-over-year are And assuming then remaining guys new XX% going expect in help you’re to origination sense transactional piece, if the originations? flattish like It that’s sounds XQ. get conceptually, better some to guess you to just see in I outpace going to lift contracts. the trying pressure business I’m a of offset for you nice pretty would half, second of that the just a overall

I would. history John, mentioned, that gains the on yes. share Based you and

here, you just forward? products bit we out? trying as I’m question a as kind as industry get try got you COVID, way remote? that where But automated, new a we get come far from do little up that so manual sit world. out services of bit more products, more the how you a And is there get new a industry helpful. little that guys processes. then as know new for guys in help with out second to there hung in guys the come Okay. just new I sense a level, new That’s Is of many the higher to play

Yes.

investment automation, lot tools, basic around AI-driven couple visual transform great to of clients. over with I high So processes which the opportunity analytical - We a of last think have the the around workflow year had came we imagery, a some models, of way years expectations. into the our of

a hear visual tours thing. and that of You about things lot type like

We in that and provide footprint. have nationalizing significant we’re footprint to service a on place working that

I and much I through settled those has COVID become once things, those will more prominent. we’re So past - down think think that,

our - I we’ve are I repositories positioned our lot to well lot last then across in the so somewhat think got multiple automated verticals data of be think a digital, going So think visual out And had lot a And we’re really more the reflective think range. accessible I first really that we momentum of year. I and that, quarter of in momentum that in hopper. is coming we the were a

as those, end platforms, at So the underwriting we I think the tours thing have I opportunities, think different a things strong all and process. and like playing realtor of of [ph] front that well as and purchase of house cycle visual throughout type around we’re of especially the plethora

helpful. that’s Okay, Thanks very guys.

from Zelman with & comes Kaczmarek ahead. question go Kevin Associates. Next Please

some as refi wins? these You whatnot. regarding and like mentioned can you anything the breaking a new mega to win are a point wins, guess, that elevated catalyst of Is a and volumes processing or missteps guess people I of pushing point there I to and some maybe competitors? it client maybe for is tax flood

No.

that in think those and There’s secure. I feel are of in were expertise. of a individuals based quality and there say, to think others for that those our that think take the Kevin, the I out case some domain time. mega couple those while in if the I - on we’re of had wins, a our I And quite working are And case service hopper also our on. actionable to we

come So win we the on side. more hope to that mega there’s

I of bit cracks the of recession, the the expose like I think of in these saw clients where out that for scale some of durable flight think the smaller crisis a And a can We look us players recession little players. rely quality. seeing to coming always we’re that on. they types in

as So I well. we think see that

and the the retooled on are organization last we well. foot - marketing sales year, and also are a sales front as we our we from marketplace think I in perspective

driving those I So we’ve that last couple experienced. three think And are I the they’ve share think areas of that are as gains over well. the quarters principal the accelerated

Okay, quarter. that’s big win tax the that I going And half. great. a this helpful. solutions on come got property have you That’s on to second

to quarter, meaningfully quarter were of of quarter, recognition how any those the assumptions? changes that. or I anything you [ph] in the did significant for estimate either with a change there assumptions share hate shift the kind maybe relative This fourth in know XXXX? But maybe revenue

Kevin, its Jim.

On have as of revenue course, about the deferred the at on look same business, the of to you to the model worked the a a in deferred is get We basis, was pretty much year. the the runoff year-over-year the model couple XX% year-over-year. components, tax And usually, it. generally of first way

bump primarily volume or online, that we quarter XX% year-over-year new in a had, of that is that I So the prepared my in to due taking the remarks. so XX% stuff coming as indicated

came that So that all year-over-year new flat, stuff it’s online other words. the in drove The the deferred increase. was

helpful. Okay. That’s you. Thank

By we’ve in well. as play this team digital that. that, past, superior a we’re doing our marketplace, got clearly of just have the We’ve a is clients in tremendous new result great but just well, offering reason Kevin, why a we tax And a not in a Frank. way, the for We’ve our which and the of mega launched tax in the platform marketplace the a talked is think we is that part lot. thing, lot platform, been other the about win, as superior a as of the clients offering there that’s winning and

up this just the have was over quarter. heck and business of year last So into of momentum that that of really in balance built first we lot a a

that boarded this be over boarded. next of a So to quarters. so progressively lot balance we bunch the runway in us Those that going gives are to year, loans growth the for of of be expect

associated And the Is margins tax through standard is expenses revenue to and your similar kind recognition of the that and processing - the the with how and revenue in more that the of business? that? all terms flows

No.

on So running that platform. platform. business new is whole is the The that

So recognition and automation It’s it doesn’t per efficiency affect client se. revenue experience. really more and

of you’re automated, been why particular that’s reasons accretion the margin seeing of that the more paper-driven. in - is tremendously because one it’s a traditionally So line

little John a So what to. bit alluded

One a a of you platform ways rid of get new lot of the on and lot is of of time. working cycle paper the digital

our it’s clients friendly. completely very So user for and new a a more workflow, exciting lot

facilitating and adoption that’s So the by existing clients. new

I’d say, a, client of cost a it play is than revenue a recognition more and it’s experience a So play.

Thanks a lot. got it. Okay,

The question with from next comes Wells Fargo. go Please ahead. Bill Warmington

that And I’m MBA make that they other XX%. a meaning up trying QX, was would business. tracked you you you’ve missing XX%, So Jim, piece, about level tax help it like about sure for there. that can to running the thought quarter units reconciling did then pieces expect, good of flood roughly to make just data then reconcile a the the closely other the at I’m with sense. And talked then looks the the valuation you pretty not job piece, seem bridge Maybe something the that piece what would I unit the of credit, and the of to mentioned to

Yes. When we you’re Bill. our as consistent this for with evening their XX% or tomorrow, And the to Q on in what closed guys pretty roughly reports. saw Title XX% later file is that’s to closed on loans, early loans well going the outlook see we

one think was around I XX%.

The other was XXs. in the low

we the close that of So is loans. volumes in kind tax see I post think tax,

XXs. it’s little that that So And players the other saw than kind in companies. businesses. in indicated the of other terms Credit, again, remarks, one well low of in as the as bit with was a peer animal I prepared different consistent my we of

very was in side, range, valuation Frank the remarks performance his out put On in We the growth is smacked good. XX%. thought that there the

kind order the the of tear quarter going in AMC new process they indicated part a and - of of [ph] that’s now the results. year. be that of and coming benefit had and piece this the transformation we a that trick work going quarter, And at the up through the side, on post the open terrific great of transition online will that’s On half was then more of course, just we’re on second flood the to and ramp

then And IT investment? that million Okay. million $XX in expect savings of kind to do you What from $XX mentioned that to planning you’re you investment to generate do. the

Yes.

had from though think And I I chains. a I perspective, of think there’s lot of this at that pandemic think a companies the So supply has looking obviously benefits to initiative. their couple

of it’s is of advent time very supply with we reevaluate have a all, but chains. one. good First one technology traditional one, the to it’s a traditional And

So learning to want we look and at an AI-driven. onshore machine capability that’s

So to is - a a a to $XXX it’s kind spending to of years our new My That’s out. curating ingesting going data. and of take couple concept. going build that’s million year guess we’re over

I’d be out. say So it’s I’m XX% hoping area. that big to come can a - XX% looking of at we’d

$XXX million? Off the

$XXX roughly million, yes, the Off speaking.

million. $XXX it. Got The

Yes.

and data. IoT think ingest that this sets think lot imagery think efficiently, - higher So complex type in because data those it’s and investing new get equally different platform are that with I opportunities we very well. visual new like a well supply - things mentioned, exciting to is are important to help different But a big thing as sets will transforming for I is price. data volume, as And chain us I as and the those and the other to verticals I are into we of as

going type opportunity we’re you’re little growth to look if the mean, I it’s and you also, how a think current pretty look clip. running margin, of of XX%. a the to bit that if at XX% XX%, a say that’s So to I - But enable data, you good at that at

And enable new this so so at those we margin, as type data that well. that want of to will bring sets on

well. right, Thank Got it. All you.

Jeff comes Baird. with Thank go ahead. Please Meuler you. question next The from

In all QX on bucket? Just missing similar to what’s piece then a to Is hit, to screening revenue impact, revenue side? credit? like of incurring operate COVID Or it I COVID And trying the QX high plus unusual hit just you’re because and am non-mortgage on a the help estimated margin expenses on negative better rental the is in COVID? understand there’s impact. decremental that some EBITDA it the that

Sure. Jim. Jeff, its

pieces saw impact There the a the so international we’ve but a quarter, lot be will seen element on in we in the a more COVID in wasn’t number it’s on So on the QX. first of going there, impact what dramatic of businesses. the continuation in impact QX, newer

was basis. in up a currency actually common X% As ex-on year-over-year we international noted comments, our earlier

to the we’re largely second those in higher So businesses. see to the and margin type impact those of of going tend geographies quarter platform be

not it’s to the what we So about in think see, second to the in impacted would auto there business going more be to way few lines projects the also screening, credit, on. a international, quarter with believe some we’re work the is we so credit, typically lot going be a tenant project-based of alternative that going

mix So to the elements the overwhelming majority cost with margin of higher structure. that is going a to be some probably

lot. And trending know your March year changing I a sounds QX specifically. would give including assumption, that but mortgage be QX guidance up been previously think you’re you then have it volumes like in Okay. loans the way in given didn’t full would the not closed And that inquiries I

kind QX closed guidance? growth underpinning is your of what assumption Just loan

full QX? are asking sorry, or for I’m year you

No.

For QX guidance.

Okay.

if there, So for look points QX, the you are the place. data they’re the at all projections - pretty over out all

And what a minus a plus seen wide could X% that’s range. be pretty so probably XX%, I’ve to seen, you’ve

aware, typically that probably weeks that last went continuation for we’ve the happen, in was you’re feels April. the far we down basically like in in guide purchase at simply a the the we the would experiencing listing quarter it so seen I’m as The quarter, sure And to look part. see or is what the in not into our refi forming So lot two, most on what of going trends trends of early strong the volumes. of seasonality we’re very for data to QX, a

with of lot went the we to order in support internally a of our So driven just data view quarter.

mega Okay. when to And win, I’m how impacting Or be about before? just to wins, the in going are Were understand revenue. guidance guidance mega they a in are then they the - you’re I’m these these now? once to start impactful trying on trying wins they talking

Jeff, it’s Frank.

mega So wins, value. say when I of year millions tens a those are contract

the they’re our And this boarding some the this if $XX year. look year. you projections So in pronounced business. top million particularly service for at to the the in middle are more the context a in of large year, win, could they the cases, be because we’ll it’s And start of - in loans those tax $XX end million

this year, in you’ll be a half, more in but From are XXXX. this in good very that in half. back a for lot it the those or the more worse significant gets significant impact not first So COVID will up second ramp see the half beginning But they’re whatever. much provides standpoint, support full of certainly case The year, pronounced.

well. which beginning that AMC running to about volumes last we’re happen now, about we The will I total April. ramp win third. to to to Right quarter, board up originators started kind the in we as if of second is to we And so XX%. going XX%, perform de relatively year, a which get ultimately the they talked it’s those as percentage by But kind get XX% what’s plays expect that volumes, year, the get that’s minimis. time half of of how XX%, the we in - very we’ll of into And get well, to next level we’ll

you. Thank it. Got

Please McJoynt Thank with you. KBW. ahead. go next question comes from The Tommy

incremental translate in But EBITDA this like could [ph] guys had volumes more if mortgage XX% that can’t billion of so. kind that a and recently. million roughly the you every of of upward high $XX past, at pretty recall on you I to revenues or estimated $XXX referenced math margin had

as place high are with as the all the Now over a some we’ve $X.X industry seen. bit trillion forecast

provide tailwind you guys. So a for that quite bit can of

general, true in hold does that of still kind Just math today?

our sensitivity nearly Tommy, period didn’t high traditional values growth we’ve that the does was we’ve bit translate a dollars. for kind fluctuate into the a so loan being, growth. It had unit of because had dollar where relatively

you thing. being for the type I year, flat market our to that phenomenon well full the talked estimate as that of when like So includes of HPI the and year-over-year, as that have deflate just about kind

to but provided. full would it, been estimate nuance my that’s of said say, the year our of I as So sensitivity traditionally I there’s a little overall market. in that bit we

we like people, activity think, a will lot be elevated. of I refinancing assume

that are to obviously and is lows continue. all-time likely Rates at

you buy So as subject you out have of a employment, in the COVID do ability the But strong environment I year, a on again, you the people of their to have of type thing. think refinancing. to, strong impact that on refi get just

is thing so is and and in don’t how I activity I the in But impact a purchase third of for quarter is that traditionally the it’s back. and are anyway. particularly quarter and impacted third lot second the to full have hard purchase the to quarter. think quickly is think quarter a second already really what fourth you purchase market tell The traditionally purchase impacted. be seasonal the And going comes impacted

are I down lot think a a lot people etcetera. of how that the long other, severity on of depends and pandemic, locked of the

what’s on are our pretty projections today. known think based So reasonable I personally

get to to We range not quarterly As available indexed it’s most you pretty of figure And and volume. but of trying forecast market, kind Jim to, we’re dramatically, volumes, out. alluded see chasing especially I the exactly if lot your - we a tail externally see those the of other a full good just think see splits. slug we into

credit flood we the or loan. as board tax when typically The one quarter and thing a XX said, later, the days days and you close falls revenue to dollar, have or XX when loan Jim a remember a later is the if

kind of largely it’s of we little nuance think do a about flat. is way out If you’re feel a kind is as play I the my talking if market general, split. we’ll bit and the better, going better. to that there’s recommendation quarterly in So well, But

COVID hard the It’s be impact the estimate to because COVID the to shocked. problem is tend impacts

But these So shocks through we quarter. suddenly haven’t come get we’re the kind incremental laid will normally, your hopefully, of out the we always I line a as we’re are on sudden because high have managing address those as to, happen But see carefully. and you have we Jim transitory cost to react and of if do a too to cost impact third and hopefully our shocks not trying structure we they chance off time, because bottom alluded structure. over do think anybody that impact you a as it’s

lot you to just forecast out a could of from mortgage Switching Yes, through higher rates, in it. topics, I we businesses prolonged which countercyclical low agree there. generating the a walk were of any if enter and uncertainty Got downturn, have there’s somewhat economic of apart your volumes? tendencies

a used of it the and modification a we’re is, the - to of modifications. We loan And and - call know don’t significant presence used the models we and that countercyclical, there. lot but have still kind support I Well, demand portfolio have if work other work to valuations I around seeing obviously, platforms analytical for loan services. one it’s we default very of think

So And second those for it those products of we’re say will will good think margin type I and half that over are grow for the the year, us. seeing services grow. of demand

do of example we’ll something an that’s better. So that

our think I us it very businesses, efficient. a gives they’re businesses, platform the - to move

a us on think think, assuming reason blowout. to So side don’t complete that. of, profitability it’s gives it I a there’s not lot protection any I And assume the

economy Australia revenue. international, in So are our UK The which businesses. bit Zealand, is wildcard key the I of of but a is one think, I chunk okay, we’re a well little now And that’s Their right frozen. huge and is positioned in a our frozen. But is think now, challenged. New not area whole particular,

much government So economies those the that the pulls that come are pretty whenever are lever I people safely. able do going and to to think are back

we’ve company impacts. years, we’ve every mortgage we five and seen think the decent up a entity And we of But it’s think a the more made improved our in market. different of overall, into in last cycles in profitability we’re have well shape. think different the I to different And consistently durable lot a I remarkably pretty and so I held profitable much XX So collection cycle.

But a normalcy. assuming market that see the doctor. of to I a will not A to and with liftings It’s lot medical that, up. some hopeful interesting. return I’m pulled. COVID, I’m purchase pass have the quarter don’t And pick will know - I will think begin been we third are

pulled go quicker. pulls temporary they’re cycles If those basis, which to temporary back on a in MLS, come the you tend past to

think I a so hopeful there’s you that’s bit have stay could sign. of there a a So We’ll signs hopeful that snapback purchase. in

But to economy think demand. factor big, a I anybody answer I on made think just there’s I general point. how big the of the lot has and big long a clear, don’t and again, difficult unemployment more is that’s still the be this waiting is, and how depending how think at

you. thank Okay,

ahead. Please Thank comes Wolfe you. from with The go next question Darrin Peller Research.

doing recessionary okay. the to pretty some could a you were Listen, if follow-up prolonged remember First of whether or just your touch guys bit hit to Glad businesses, legacy American you think that are tough a we’re about the resilience back to environment have, insurance - I want days, actually. I hear specifically we resilient on analytics, non-mortgage I areas, it’s the in

if months? tough in of businesses, we factor could time I hit so resilience were curious those I’m the XX be some plus think guess And to a what for you

margins more on - mean, hear you there more be done And then note, job, of managing that an a if there’s is always great step guys. make to, our curious to P&L? that I’d on that a pronounced protecting on room And you’ve obviously, to the guess expenses. and side, up Thanks impact I the if and I more had expense notch

that, I’ll appreciate Darrin. And take Yes. question. again, the

all, to I and now think we’re XX% XX% and default used mortgage origination of and we origination first XX% non-mortgage. be that So

there. So tremendous amount that a think, I alone gives of resiliency wasn’t that us

piece, in which discussed, I markets. If is integral of you international, non-mortgage primarily we part system market share, the those just look at which have we’re high the housing

those those snap there’s every And years. have the that I thing. over I resilient those been one And are back think very think so expect I durable. markets will that’s think to reason So

and Secondarily our insurance is spatial business.

I and in area. I and claims darn, the steady think storms It drives reliable. it’s underwriting. on insurance climate And pretty and and casualty things that’s property insurance and like think

pretty that’s have durable. always you to have And insurance. So

there. I we’ll doing think I they be ban So that think unless insurance, well pretty

those analytics are I if the the think longer at think term business, I look license contracts. all you business data and

So a cancel, I those think lot think people essential. of not the - will will embedded of data clients is and don’t the workflows in the I

I risky see that area. as So don’t particularly a

I screening, relatively is its frankly, of So own overall, piece which of overall has a the set the with small pie. tenant of think exception And parameters.

but resilient. gas, to pretty We meaningful collapse and energy have not I picture. related not think some go again, oil with the of they’re forward wasn’t I do that kind that that mean the piece there that, the helpful. revenues evaporated non-mortgage is

essentially On the I mortgage platform-related. are transformed. side, I are we think mean, businesses our mostly

I the many for most look we have many, a all to them you over platform. of even platform, is switch. difficult If tax those an established at it’s multiyear businesses the very And or part many And automated are contractual relationships. think years again

give grounding. you those may those And low-XXs businesses in as in think years margin. ago, us good I So recall the we’re a

provides again above Now margin, a pressure. XX% downward us which at they’re with insulation pretty good from

currently market in that think a even contemplated. So not is I

and anything, market We a XX% more. or beyond trying And to trillion think $X.X make used we’re margin, that about that. to trillion if talk I $X.X is

that’s barring think story. good the different gains collapse going think think we’re So additional I to and have scenario, reasonable we’re in us a are the any I ones shape, total in pretty in I I that future. downward think another pretty I layer and we think pretty But And are market the for in insulation the shape. share give good that hopper durable

dividend probably preserving more is the if relatively thoughts that’s very around keep mind. your on incremental initial guys. or plans now just it allocation, secure. I to And I readdress sounds capital right. Any plan like in you don’t in you like guys the of know priorities the Thanks new, mean, buybacks sounds is but dynamics your important? market capital given Maybe that, it track. All just terms just

team I Darrin. No, a Yes. look job. Thanks, the and Jim have think great done

major servicers. learned tremendous over will pay. have our the base. time clients What client is they major a are the and the carriers, are I’ve originators And key expect we and banks, We major clients the

time. recession, last a very with experience debt consistent that we anticipate from and as the don’t that’s that at - and our I so bad don’t standpoint, have And this significant

think got a I client we’ve So base. great

flexibility. is roughly our and in flow gives It that went I and us quarter. million million from I lot to think steady remarkably $XXX a cash think that of strong a $XXX

pretty expect to I little we so We’ve in delevered strong. a the be quarter. first our bit think that liquidity And

towards heading we’re So three times leverage.

So is I lot strategy, our that think long-term of consistent capital with a allocation.

quarter. We did shares back the buy in XX,XXX

quarter. it’s window bought know, a you the first in we such a traditionally As lot that short haven’t

I alluded grow would our said, expect profitability as we well. dividend think would Jim we dividend will so. time as I are to, opportunistically expect As The as the grow, to continues we that purchase Jim to And to over do also, still able shares.

So in think from a liquidity the of and year. shape capital the allocation we’re good balance perspective I heading pretty into

right. it. All Got

are you further at conference now Thank for and The you attending this There no today’s concluded. disconnect. now has may presentation questions time.