Reckitt Benckiser (RKT)

Sharon Ng Vice President of Investor Relations
Jay Farner Chief Executive Officer
Julie Booth Chief Financial Officer
Bob Walters President and Chief Operating Officer
Ryan Nash Goldman Sachs
Timothy Chiodo Credit Suisse
Arren Cyganovich Citi
James Faucette Morgan Stanley
Mark DeVries Barclays
Mihir Bhatia Bank of America
Ryan McKeveny Zelman
Kevin Barker Piper Sandler
Call transcript
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Good day, and welcome to the Rocket Companies Incorporated Second Quarter 2021 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Sharon Ng, Vice President of Investor Relations. ahead. go Please

Sharon Ng

Jay and Companies everyone of for us COO, Companies joining With and Julie Good President our conference thank call Rocket and CEO, Rocket are earnings this Walters. quarter our covering for CFO, us Booth; afternoon, Bob afternoon you Farner; the XXXX. second

factors call as today's a required to filings accessible statements. our events, new provide risk IR forward-looking will will call is and of you information conference regarding our and encourage things update are Before the statements these that obligation risks me go risks result later of consider as cause to This contained information we assumptions I detailed materially to We subject over turn of be is statements outlook. you financial our over call, quickly further for online and quarter undertake no We well XXXX performance includes could second call these let uncertainty. to the Jay, our available as disclaimers. SEC On by These uncertainties today. or discussion mentioned on expectations a in from A and today. the we actual differ results law. recording as broadcast This except Website. our to being with

Jay? in that, to and Our get the as commentary found today release today, for Farner And it SEC. I'll earnings metrics non-GAAP GAAP reported our started. turn over measures. include our can in non-GAAP between will with as be us our to also issued Reconciliations filings results also with Jay financial well earlier

Jay Farner

goal XXXX. growth earnings quarter to our the accomplishments that of company Many results welcome of who real each and All and lender execute the nation quarter was This for best leverage recently tremendous rankings service us people, services. servicing home right, to continued retail track becoming bring platform driven strong and J.D. second our our Companies afternoon, their a course technology second achieved purchase estate, earned the had by of has estate, the mortgage in our are it's marks strategy putting every we've client eighth work the named Power. our and Mortgage this real Rocket auto volume, in being overall revenue well time on XXXX. by in call J.D. Rocket rewarded of end to Power for #X accolade of record our on We XXth to The financial cood received the for purchase our mortgage across as reach #X largest day. was In the and we the and part of the we've combination XXth again honor straight it includes origination. award consecutive and company by with

team during first, clients servicing certain helping the them our through and put the Our pandemic. difficult times

and add and XX% markets without solutions are client deliver unpredictable our Rocket easily wait approach able clients forbearance other in need unmatched a of several industry. digital resources headcount forbearance with This complete pivot [ph] experiences. these to a While in demands online. ultimately being lenders risk to hour solution, times Innovative the navigate testament to as client clients resulted apply onset and meet the at were lower such pandemic, of the ability the of to scale at the educational rate Mortgage for technology-driven plans experienced Rocket's to quickly

we services. Consider has estate, demand planned across Rocket providing digital core our Companies financial back to billion to real capture. of we for and the results, when As business our second volume generated second quarter for XXXX Rocket experiences turn closed year from XXXX, more only an to of levels. shift pre-COVID accelerated back than this, more and now an did second we opportunity volume loan than XXXX Rocket XXXX. $XX that at markets; of quarter Loans from the Companies the of all revenue the true experience, XXXX. more in quarter in all The expanded we doubled size the $X.X doubled digital have entire momentum look billion auto, of and than has

touch scalability with the platform period of flexibility EBITDA revolutionize On our call, the Rocket partners platform. Rocket the the relationship more years experience, same increasingly the sheer billion power QX Our the our demonstrating also on two important to triple ecosystem. highlight across today's was strategy I'll homebuying and BXB of than to capture including growth ahead, the Rocket of ago $X.X the

shared we've built with Rocket the you platform As calls, past to in win. is

the is stay centralized after Our of getting revenue in initiatives major provide each us from for for go We driving strong personal companies life's today's In in incredibly the our areas complex optimizing like consumer to for a allows and home, a environment, most moments. platform. or points opportunity buying of This and scalable demand flexibility certainty friction removed investors. events, purchasing our nimble value all a pain and greatest a car, our markets. loan,

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to connections a geared Continuing that XXXX. comprehensive puts Rocket transform our purchase experience homebuying better a back-up We largest capture We a services years innovation home homebuying mortgage driven announced product single client the XXXX, our experience to to to country home purchase lender volume our by is company opportunity experience, is that in market the creating become superior choice our technology- has local of recently retail for and integrated driven home end-to-end iBuying quarter of shifts agents, the the with Rocket mentioned end-to-end set more goal power sellers. and last the hands in As provide purchase credit today's monitoring biggest into services ecosystem. the ForSaleByOwner centralized or search, for the spent process back complete From offer to Companies consumer. to today. by

no extremely process to paired America's the one-stop rates. level We a have consumers largest the with same conversion while largest and tailored the mortgage When Mortgage, Amrock, allow delivers. company with can provide providers title the strong create integrated Rocket power suite of Rocket individual lender to services that that and their driving needs bespoke other services of and

Our third-party several partner companies iBuying will released program facilitated be next through quarters. the over

an partners performing and estate states. search million in announced at to home monthly states. with real estate Companies With posting broker all Just is scale XX important reach the home agents six-fold last has milestone Rocket listings estate nearly mortgage now spanning traffic Rocket the licenses, only licenses, month year-over-year that X XX ecosystem Homes Homes in agent listings, estate real residential quarter. all is Rocket growing nationwide real coverage, real unique second visitors

industry. in funnel the million potential and then purchased drives estate the $X.X increases early momentum we an drove a in a volume still record real second agent trillion agent of our Rocket and in the transaction purchase innings network with very Mortgage, year, Homes our Rocket Homes ecosystem draws and involve transactions Rocket X.X estate rate regularly network. long pool in among both a Homes expect homes our representing the significantly Mortgage $X purchase of Rocket of engages an into value. Rocket Rocket to sold growth. existing From value for real of in in agent lifetime in and also earlier estate Rocket in-process the Homes revenue for value and addition, in clients servicing rocket nearly runway continue. This the Homes' value, quarter clients, in through clients. beginning highest in Homes recurring representing the attach Rocket In representing roughly servicing billion XX% is real with the even

also between and high attach Amrock. Rocket rate We a have Mortgage

Amrock our the for mortgages, appraisals appraisal fact, In of approximately consumer order XX% of direct illustrating for as the management serves ecosystem. power company our

of We experiences seamless residential value proposition extending creating are solar. to simple, now include our also

According by XXXX, quadruple is adoption growth research, third-party homes a in with demand to energy Solar point. the adopting inflection to roughly eight power. current at expected one solar is energy solar

connect solar installation digital our for group to complete, team Once of Cloud Force best application. homeowners home new Rocket will team dedicated as our members highly clients of will from panels Our if to Rocket's The the financing are choice financing Force clients. trained their solution. solar is advisers will facilitate determine the Rocket and solar the serve help Cloud to a the simple,

Rocket We have Solar We consumers XXXX. will a expect finance Solar who positioned loan product be launched regulatory well be savings. and with may with cost to consolidate July scale solar help their operating mortgage in [ph] and not also Rocket late to in for significant at started

and clients are the another that the the of we maximizing deliver, of platform. complementary Rocket adding solar example versatility Rocket Our in of is value to Companies yet scalability by entry lifetime to our thanks uniquely services positioned

who the second merchandise results. continues And Looking tripling our auto in with at interested of performance proud to inventory Rocket connecting unit inventory buyers. new Rocket value drove are Auto these quarter than new shortages facing the sales particularly industry, company both more with considering in add partners we are the gross of XXX% auto the record their and auto perspective growth year-over-year.

Technology quarter, Rocket From Rocket cars to speed sophisticated story. efficiency constantly experience thousands access the one cars marketing of models, of of to use to and to cornerstones our use every client our giving sellers client name to online our few. client partnership tens providing funnel, service, Auto's and of increasing decisioning drive fundamentally more AI, of significant and personalization, the lead Auto our Rocket data fuel platform of and the its streamline used science through of through in sell business, to optimize aid growth During conversion. and pull-through and pricing used just data Auto's are through workflows Technology additional financing expanding platform. the network, improving a the to aspect data largest ethical joined and of

to deployed is they at experience intelligent exact were XX% models more out By that so lifted clients resulting tailoring volumes clients $X are beauty across client with in is platform market engage billion meet its and client products The of Cloud the conversion contact, incremental in Rocket moment ensuring they scale to where our to Force most reaching our environment. to to approximately we XXXX are than client and application us. regardless the far targeting this multiple During ready the flexibility year. verticals have our of of

increasingly is Companies Our as company Rocket the consumer multi-product, started multichannel direct platform. being lender, mortgage

and are fully make products to that and win. In innovative a to them approval as three to which leads, empowering works agents, agents are trusted tools and addition offers to with role overnight critical Rocket which arm tools consumers, audiences clients mere and verified advisors, leveraging role products BXB we environment, the premier underwrites and in brokers, process their that through empower real ensure in competitive in Rocket they constituents; our like partners. to agents, has Each help in homebuying and important that developed estate goals. our patent professionals win hours, a value deliver tools today's of enterprise cash ensures to through real Real the estate network mortgage with buyers closely new underwrite, clients our underwritten play with estate the buyers process our allows platform to they loans and the these compete purchase play we tools crucial reach with their additional

Insight, track proven office, XX,XXX year through client's to Another two from innovation last real popular tripled the of receive letters ago. estate Rocket Pro help than estate unveiled Rocket real XX,XXX create updates. Insight quarters number realtors Mortgage their status agents more The Rocket to which Pro mortgage is and [indiscernible] leveraging just we that's of up with time real our agents

builder our in smarter move work grow scenarios to starting arm brokers partner our clients. the broker second and Pro our more run we portal For tools XX,XXX for than them network revamp calculator, our the we industry providing to to different quarter began pricing the knowledge thousands with to on their for business. to mortgage In use their and line professionals of relied our mortgage newly mortgage past TPO Rocket our clients unique of with the of ease greater month enhanced applications From the their tools closing too. interactive partners finish and

we the and of most underwriting brokers. mortgage has created become questions for qualification that tool top the in partnership mortgage to even Our with Pathfinder answers resources one simple Google, and provides complicated

add new deepened existing allowing to partners Rocket Credit We than mortgage recently our our to We integration integration inside a continue enterprise we directly partners. to new Karma with users XXX with million network and our premier more apply launched our their app. for

continued few. grow realtor.com, and with our Charles including a Schwab We to also Mint, relationship and name just to partners expand

excited originate are agents range of announce with new relationship a to the clients my the deep allow experiences with We This plus their partners loans pleasure Mortgage. will is integrations to XXXX through Rocket customers expect. MassMutual. It through serve deliver broader and relationship to also trusted our a new home high-quality company's

largest along beginning we Detroit, and executed Community flagship with bring and from our the where community, the to to Mortgage initiatives help PGA end are sponsored to the with and we and profit to investments the data-driven support tournament talent Detroiters. employer. philanthropic the Detroiters connectivity bridge partner company, raising in Classic we broadband and serve Classic, while all best more of Mortgage At June golf hometown a our operated philosophy, numerous divide Detroit. revitalize our event we the showcases Rocket Fund, have held a Rocket have funds in Turning Rocket digital than event

a Homes to closing, across poised platform an continue quarter record the are Auto. to our have Detroit, Mortgage us. like are platform As to tremendous critical grow with Rocket we year I'd with to that Rocket entire grow entering Rocket and Amrock, have from to equitable about we it's our across Detroiters third momentum and opportunity think we In this.

several ended billion market and $XXX Rocket $XX XXXX we past volume. In and in in the with volume. mortgage grown that billion consistently. $XXX we share XXXX originated taken to years grew Over Mortgage has In XXXX volume mortgage billion

a we levels. record forecasters market to in industry expect smaller grow volume XXXX, While XXXX our expect from

and achieve volume to this going year. are share gain We market record origination

addition, rate, book we $X to companies I recurring momentum what's lifetime value. into our excited what in we expanding Rocket will stream and cash expect to This driving reinforce things ahead. to best With and our and this Julie? over grow business our ecosystem year In year XXXX on billion, client servicing we Julie are billion. than more retention than more $XXX revenue XX% portfolio contribute of to turn numbers. of are accomplished I'm building team over our about from has the proud more deeper even that, to go

Julie Booth

trends of of and drive the Company. good quarter I’m report financial growth insights everyone. Thank longer ability Rocket platform. you, be afternoon with success scalability loan Jay basis particularly making into pleased flexible seeing year-over-year term comparing some sharing XXXX exhibited a to a to detail leverage for investments XXXX will relative conditions, mortgage XXXX will platform economy our continued with I for another year combination our of some are the rate XX%. and around levels. and to these This market constrained volumes two-year results industry to Rocket reference strong unusual Under an low we XXX% comparisons our for only provide historically while the I capacity. demonstrates our we're on in expenses origination our was grew growing performance our XXXX interest

growth our pre-COVID share and we We market XXXX. and represented, look our year's head as Given successful last it grow results. in gaining were continue we profitability to the important at to business XXXX year environment is unusual relative into in

representing of XX% up which $X.X [indiscernible] of Rocket billion billion XXXX income of than of which Companies QX adjusted income margin. adjusted net more full XX% adjusted net exceeded XXXX, XXX% margin. XXXX a in and income million net $XXX XQ EBITDA more quarter from $X.X revenue than a represents EBITDA, XXXX We XQ adjusted we generated year a $X generated triple net levels, income representing second billion of increase XXXX of was the XXXX generated adjusted and QX which During

share and for in cash with home guidance our XXXX XXX% QX quarter, earnings represented refinances out $X.XX $XX than reductions, our [indiscernible] generated which and quarter. term per line loan from the in in volume half than up the due Rocket adjusted was more midpoint volume products of to during the closed quarter. more QX second million include Our the Mortgage purchases,

volume purchase volume did in origination set of purchase Turning purchase $XX purchase particular, that in quarter. excluding in to home largest We and XXXX doubled nearly retail record we year-over-year new lender correspondent company billion volume. the a second estimate the

$XX With the the full purchase have expect volume we the our we year initiatives, by goal closer to quarter, combination and momentum XXXX, first with into XXXX. the are in growth, purchase retail half have success lender will becoming that our bringing of we the going Homes the of third had billion This Rocket one XXXX dollars. during recently exceed announced number us

down For lock substantially basis most the margin in than our with midpoint multichannel our is and sale which rate of mortgage higher was at quarter, guidance our XXX expectations line the points originators.

real Rocket across industry, results homes inventory value of XXXX relatively purchased the strong XXXX. impacting continued was which Rocket nearly to in agent transaction and Auto Our gross the extend the of during cars, estate of second faced accelerate boarding sold second XXXX. generated value of online record low the are GMV generating expect of merchandise compared the auto partnerships, XXXX Homes platforms. recently, the however real new million on of further growth growth during quarter. $XXX successful our of $XXX used through of and network sellers first XX% value Rocket largest Through million inventory of represents generating level Despite estate inventory constraint, we up one half we to second the similar on the levels. to accelerate billion, Companies quarter, have QX of a With more half to including as than double its $X just track in

to is record top the competitive based lifetime position, areas on of X our growth million monthly the strengthen Rocket saw during and [ph] visitors expanding reinvest leveraging value. unique here Companies to or in funnel. business, advantages marketing traffic also client expanding extend rockethomes.com important further of nearly constantly our our an We second quarter profitability to plan new

intelligence invest we With valuable and product plan most our our Rocket, partners. fully particularly and than we estate ecosystem, grow team Key to see platform continuing Within and of growth technology, of Increasing unique building teams. investment core the XXXX to our platform to dedicated resource, ahead, we more and priorities experiences, driving in potential is proprietary members. to are the have technology, real value lifetime data the opportunities marketing realize team long continue deliver great will of client members our term, our clients our to component another extending efficiency for strategy, for and We the operational strategy. technology. to our

Our of profitable products, our lives. of increase on platform the on our real the the principal. products a recurring billion position estate, ph their business annual transactions relationships. like we Solar, last months balance XX%. of value in the for $X on XX incremental our million Mortgage with to basis, to more address cash X.X loan relationships new loan reserved personal on retention important net XX% loan Whether of that's to drives clients our the with in or $XXX with strong that servicing Residential relationships then and client principal representing servicing Rocket auto, Companies we lifetime clients, us platform continue is Based exceeds maintain expand outstanding unpaid in billion client, first over ongoing transaction now revenue stream an north

seeing remains highest our Looking the Homeowners ahead equity across business. decade for levels and investments The are we tailwinds have the gaining than are platform. on strong housing sitting fundamental more market are active. of the making traction home in been a QX to we

robust. and for Our remains both price point purchase refinance

on new full with we achieved in record record pace Jay exceed previous closed volume to set to expect mentioned, company loan a origination year As XXXX. the XXXX

to forecasts predicted XXXX. and gains last and the growth public decrease borrowings year, expect While in overall Association drive Bankers will other we to industry mortgage as share market Mortgage compared

For the volume $XX of expect closed volumes $XX third currently between $XX and to the loss we billion billion range billion. $XX and quarter, billion rate loan in

sale expect should third margins in gain of XXX XXX on We range be basis the to quarter points.

additional believe flat mortgage is this growing rate at Regarding operating time the for to as liquidity used of and the cash a as of billion We XXXX total expenses roughly third available $X.X first are $X.X lines even for the with second of and cash loan an MSR on lines. $X plus $X.X billion undrawn corporate exited June credit we quarters our self-fund quarter Total at XX, billion the run of second billion. sheet expenses, originations with balance quarter stood of for and we cash origination. undrawn the available including cash good of reference expenses of

we Our This share and billion available year's to light dividends need a $X and for our year properly $X.X held business billion sheet these less extremely in total generate liquidity, even billion in buybacks. is origination investments, hand volume than business. largely on billion closed cash more in last our loan exceeding to at mind cash operate expect record. is of we $X.X With levels strong. in than is capital Keep $XXX balance

capitalization before, in As with capital the business. our and proper priorities start said reinvesting we've always

enhancing We our ecosystem, product or bringing continue to be to operational by offerings. for acquisitions would our platform enhancing that our efficiencies into additive look clients new

we Beyond undervalued. to is our shareholders. price that levels we capital to believe look return current At stock

billion. we the $X.X the MSR fair has our have to in adjusted while the past balance and as has opportunities. portfolio EBITDA, we the months acquisition still consider in generated billion of of to value invest and capital, XX $XX.X total a billion sheet With current dividends our via to Over equity of return done our and $X.X repurchase shares shareholders able being in capital past, opportunity business have levels we've

disciplined are manner to that, a shareholder turn operator generate to back for strategic With questions. and to value. it We will ready capital we the deploy our in long-term


Our [Operator you. Thank Instructions] Sachs. comes ahead. go from Please from question Ryan first Nash Goldman

Ryan Nash

everyone. afternoon, good Hi,

Jay Farner


Ryan Nash

quarter strategically you maybe to accelerate by still purchase So, the to how mentioned maybe 'XX. largest you this originations? lender excess varying you're in Jay, and ever purchase how capturing talk Can about in doing Jay, are $XX channel, this I be the billion expect know, to nation you just you purchase earlier is what and you target funnel, and said noted Julie, industry? can on decently help strongest understand to you and the exceed that you of the in you're able by in capturing release the is just year maintain us purchase margins the are them and do this that retail

Jay Farner

- purchase we Yes, about biggest here opportunity as we at talked the Rocket represents Companies. probably think

with our organization we're there, our education, we exceed only in was retail every and home recently that to describing Rocket for experience all is press We component reports website that purchase in in put a I has together still the the excluding record huge this and are all will XX Although last volume, just starting release search Homes building really America purchase year and what a streamline to credit anyone moving the platform year states. credit, robust for corresponded, really required purchase there issued us volume think upside there.

more effective cost selling very so property. there, for organic primarily people Services, We've transaction our make is a traffic course Estate traffic, of which launched Centralized helps conversion. high-quality which with their Real Our

tying with Agent say. know agents. homes I the There into real letters, many website to marketplace. of approval update verified all to course, Americans estate overnight robust then are have, approvals is using estate can in for our offer into network that folks of is Our that support of the clients states sell We've visibility all we good growing got bring buy from require And to agents Mortgage think ForSaleByOwner. rapidly this XX who - FSBO, are agents portal to now And Insight should in level who a north very that estate real XX,XXX their real letters that property. empowers I their our Rocket client underwrite that ready ForSaleByOwner

title retail traffic is rate that - talked All TPO on I to participate seen. growing. not course the us of XX%, company and convert I will appraisal about which allow well. got industry our at our think of then, company has in about We traffic levels, that our those bring of components we've and services Amrock side in attach And talked program, as the our

Our market the seen months growth, the TPO, I share the think last TPO we've in in XX% any highest in of growth industry player. XX

spot. Google As that that with They purchase. a built with investing the to to those also in we've are the built, that Calculators will brokers shift us in, the who leveraging Pricing portal aligned shifts that new on purchase, we're tool that partnership give are heavily to the we them Pathfinder answers they need

create our of to can I others these been And far. all advantage it's consumer and in really a as able not said that's are - unique value competitive investments keep marketing mind, thus proposition internally we and provide. really the So tech of that that done all really been we to

get iBuyer the the into substantially. be them into program XXXX, to we at scale, later and visible touched many press scale and we more then able as have programs with we you will to in XXXX of of grow those be part our release, programs -- As at on we'll those

about our to so to we're grow excited that's opportunity So continue why purchase.

Ryan Nash

the [ph] gain If a cultural Thanks could on think midpoint do which so we've on go Julie uptick Got the the retail seen from margins implies Julie, basis? the I tiny XQ partner expectations the forward Thanks. a you where bottom sale slight maybe color. we were by XXX% channel - for in squeeze and this range, at do for it. you channels, quarter. just And think guide in about could talk a follow-up one maintain maybe the on you all

Julie Booth

over [ph] sale consistent QX on XXX range XXX you in margin so said and quarter. we are XXX the in middle improved gain came perspective. between we basis above a our as in kind of what see expectations do And of QX as at right in points, we last quarter and The our where both in for Yes, QX QX a well. to sale they our in the slightly to mix guidance there. on from that saw the second similar be were is gain to channels margin expect And expect

So that. that we're it channels in both seeing is

gain retail direct are so the we things, On seeing good we of about margins on feel also very channel both that I strong those side our to about as sale really consumer, and mentioned, where feeling in good channels. the in

Ryan Nash

color. Thanks for the


from from Suisse. The go Doug ahead. Harter Please Credit next comes question

Timothy Chiodo

you. Homes. Tim Credit bit Suisse, and Chiodo Thank team Actually little is wanted but from a to talk it Rocket about same I

you there us there into they converting leads a only time those of great of I you how not a factors ecosystem. the to elaborate a what play, lead So is that I we just just lot coming could little all see that more but could that It's bit I also and of of lack on the job bring during elaborate is purchase maybe funnel come is rehash sometimes just that helps Rocket Rocket together? don't prepared to wanted leads, it, remarks, if how not a top did on in helps any but longer mean Homes it other covering understand of have purchase into drives could

Jay Farner

it's Yes, a question. great

and about the an I marketplace. lead think purchase thinking in shift important it's a strategic

lifetime them combination make The estate, conversion a have or the real about think and over purchase you to of shortage levels at to title, real is, you just question conversion and when that And period time of leads industry leads. As course, the but incubate not longer a you've with how the it need. mortgage, level got comes you value. Rocket mortgage, mentioned, those the appraisal work, in to to do not there's

different as viewpoint is So refinance our than think transaction. and a XX% also we about because retention purchase others, about the we transaction subsequent our rate think know

conversion we cannot, them. partners, us what's rate part And are we Rocket business, receiving those built up. portal we with about aren't not it familiar so agents rates allows Insight a -- on, across see conversion we've when as that's and again as about to country think, so also confident higher they goes lean don't I only think with think can't where that that of the but Mortgage, to of know - Pro in that things, real others and standalone one Rocket the ecosystem others work Rocket us get with information going more our estate how us. with The can there The are the it having

means purchase a that because over bit turn is us all Julie, of flowing so conversion And give so advantage. color how to I'll and unique up information a those that things Julie, to little go it we to our the that through put of those you unit, here rate goes unit more think do around in kind units. and we're and the maybe when maybe around bit? to invest drive or about economics a invest And so technology marketing want in making decisions to

Julie Booth

probably example an about here of and together. Yes, ecosystem comes thinking it all in helpful kind how

for you basis on additional let's $XX,XXX using provide sale is revenue, $X,XXX a say that home Rocket for And margin, purchasing look earmark then who client a would services, is points that, client $X,XXX. estate If XXX then an at our another gain new would about agent you margin commission and closing a us our direct-to-consumer and we if real opportunity an if fee sale $XX,XXX generate think title generate gain this there to ecosystem, we if network, in an in it's -- you addition to purchase. Homes in revenue assuming and a appraisal say within add in our additional X% earn channel, they of on $XXX,XXX a

as doesn't we that And generate $XX,XXX. would total stop it there opportunities of think have, the look at and transaction really in too. So all this about you

other you got needs, businesses throughout these are If coming, right home things entire our about client, the is home ownership that which in loans, getting do all Rocket the the correlation think their of have reach to we've personal got a journey. estate serve the their high buying opportunities experience and natural business, we've extensions time to really Solar Auto, real to the

in adding strength, areas we're a technology our newer and a especially these help So us business marketing, that clients really from services. leverage platform

Jay Farner

beyond and as it's talking want does that a our but beneficial I that we're we're touched sell thinking the be who increase dollar and our day, not something servicing more putting which in program, can things property to we I also makes And to it all differently. little conversion, only these the viewpoint XXXX about, think We've marketing us know the and iBuyer move it's of again a will are others, is So, into every buy than viewing it to value I valuable book client. folks X.X theirs. they we on lifetime of got together, clients think million the the

forward that of offer we're purchase having properties. move a by through with the client our so And empowering back base to iBuyer, new up

the into ecosystem will value we're it's exciting adding XXXX. we transactions that help that of and So improve see think its get I we add component another as


ahead. from next The Citi. Please Cyganovich Arren from question go comes

Arren Cyganovich

I Jay, financing in and market addressable of out the rolling bit the little are be in just solar could total economics Thanks. opportunity about you terms hoping tell a with you'll us your was how more expectations product? the what quickly of terms

Jay Farner

good are there quite and this few question facets a program. different Yes to

that So we've X will than U.S. They're more step in XXXX. that million I XXXX. back, the saying installations quadruple taking think in a by solar

adopting So solar that one power. Americans means, eight will be in residential

business in So business. money remember, save homes people saving helping we're the the we're in - helping really people money much as as buy

is other including people refinancing course are bills the our about every and discussion money. so, many opportunities each And pay we but In their the discussions. how clients can we're that's about and talking day, engaged cases to already in utility they of mortgage, bills. And save those there

what solar pivot And we'll different we around out. really grow discussion have so be so a and might things a doing do it's this natural few as to the

Force Cloud Rocket advisors Our will really service our clients. solar to

can who technology then So installation Rocket will is we'll actual our panel do to used determine eligible it and would financing. someone how folks Homes technology the with do how and partner using to much they'll - Then work money solar, save. the be to roughly Loans be they if help - Rocket

and options second their providing for to their continue robust is through we which that to So course component. loan really program course, for started the and clients using already capture be Rocket so more make other financing solar that And financing of Loans have program it's have we that's doing will our we that the clients, of move done is really our is the programs the one value, that forward. into doing mortgage, consolidate We've the the kind two of as third, their mortgage. who we full will may and solar need to already solution

So refinancing it's well. mortgage their clients appropriate their if solar be will as loan, back into

bills, those to help can understand of we we're positioned them many we're already their about talking we're and to appraisal, cases size talking because three already we areas already of uniquely all in an the the roof in have them their property, So cases. we're and the about property, many

lot So of value industry already in others possess. the we client, to really this need a this data that require bring or to

and market that be brand Force our our market we our make and the leader. technology so, Cloud we'll is be taking And a going grow rapidly to sure and can to

Arren Cyganovich

you. Thank


ahead. Please question next go from from Stanley. James comes The Morgan Faucette

James Faucette

you get imagine sense of a follow-up, gain channels improve and some Thanks on made why from there wanted is the probably but competitors this of kind others your the to period already would a the competitors confirm of just to your kind sale industry minutes lot. I sequentially. a address seeing moves at making like margin what of think couple already where to is -- through bit I your on little about, now? And drivers there for touch And that guess be guess, what and the a the go least seeing comment we've you overcapacity but then, of like of right going plays heard as adjustment in and can to of I response that? be think you wanted seems that, to ago, Rocket's want will if what is, will what evidence Wondering talk how is? Yes. there's you're I expect for you you out lot both a we that, I as headcount this would you're

Jay Farner

our so on a and expenses. in to continue volume QX share and efficiencies I where beyond, we're without able QX growing because, point and although know, expenses our be using having see increase in transactions, we're were and of Julie and in our doing reference that's and for and market that touched purchase to that as QX evident platform kind more growth

us. We is a to also continuing know platform to that's very that important have scalable

As Julie's the always transaction. we're in touched profitable on, first

vehicles to And on us QX see marketing different three-year plan our that touched to three years touched we've rate going our the ability over be going stick of strategy. and whether volume are over of to - not market able what maybe solid demonstrates achieve this reducing our rate us multiple which changes rate proof towards QX guess regardless share, of here think records. creates opportunity good is strategy of will we 'XX volume of in throughout our markets or fact We as from in purchase we years. four doubled we've there'll over say competitors been is only did we lock set types of grow Julie our XXXX, plan channels, interest in we but capture many I I'll years, that we're think about use to about we We the size I'll that up course as in use, mortgage I'll size think in XXXX. stick then - we for and for this so we also and down. movement, interest that XX% And QX the I well, for is the had multiple operate of said over particular course we ability of that time, to where think sensitive. regardless this in rate Julie's during that A of period to third see as allows that running we'll and last our be XX our that play was on really or what we operation, been through midpoint our the believe the guidance point volumes. what not that, a a where the we off serves growth we And of really but their

to want to that out, we purchase, growth. question? we of on touch don’t any adjustment, beyond into three-year ensure those you other lean continue in So, portions Julie, as I plan and know to of our things QX that if to term cash stick

Julie Booth

well, it Jay. hit you I Yes, think really

about the at I gain on excited think on and we channels I in and those Jay, I like covered it sale strength seeing you think we're now said, well. margins, where are are we

Jay Farner

Okay, great.

James Faucette

guys. Thanks


from Mark The comes Please ahead. go DeVries next Barclays. from question

Mark DeVries

is of follow-up And a partner question about from, you direct-to-consumer? you coming channel? the to give channel? the XX% had from us it percentage your you to do you retention coming finally of where or through that the getting Homes direct-to-consumer the Can what coming I think on thanks. do percentage becoming is a that's sense kind meaningful originations, need goal direct-to-consumer that Yes, through become purchase largest a purchase then versus through partner Rocket originator, coming originations. reach that of of to wholesale comes is lender the of from the And you're or top

Jay Farner


the remember more So but on happy originate loan in will are able assist is broker mix way and control things that broker side. the direct-to-consumer, any the specifics from we the I normally and don't really break to a perspective direct-to-consumer we originate down can The between the that can. to TPO we're

of of to I looks get feeling think that at, a probably So can you industry kind like. look mix what

in our the bring growth real ability to to continue our really to consumer that there. to that the the to ability pull, value with plus Rocket referenced, ecosystem, to lever I network, our with about directly XX,XXX influence can directly we that's the Homes, estate us, reference purchase our to market the For

as or leverage channels, Pinnacle particular about we now starting growth channel. I focused although direct-to-consumer and question broker see think our second we're really Homes our ecosystem more the how you that's just to partners purchase networks growth purchase we're in before. so, been direct-to-consumer And the and we've - a across our the all asked looking attach for rate, on with believe when have we And the have works past, partners, partner Rocket the purchase what the in we'll about we with opportunity ecosystem achieve our that larger seen to started although of

Mark DeVries

got Okay, it. Thank you.


of The America. from Mihir Please go ahead. next Bank comes from Bhatia question

Mihir Bhatia

Hi wanted and for you a question. for my taking thank about second. I allocation actually capital talk maybe to

time versus even or at Maybe about those in an You're to of should bets prioritizing -- same spreading on? to you as on - GAAP all and areas just these that you. talk prioritize generating, to you I capital? is environment larger making And terms making guess are other the [indiscernible] generating little across up may a be them. you're particular growing various time capital some grow trying fair things maybe and at question that is in bets the of challenged. returning Thank your you But fair are seem the amount same non-mortgage between amount be the of you're focusing return where of you the how a our be you a invest capital? where of businesses peers capital if will

Jay Farner

in been years, our leadership benefits I'll things the of capital the XX been about member portion maybe I've and on I'll let the our XX team years, is a strategy. spent said XX of Julie reiterate XX, we in some time and allocation of development. significant you one maybe tell for business we've - company

percentage, example, and base buying of refinance provide that occurs or but significant the purchase And you to specific of to vast opportunities leaders we And directly have to of auto into so as are able in the be started within the services months that tied to have give questions retain for the to home. the of develop that top fortunate as client of the talent do continues is, organization. leverage time, one an mortgage you search we to ask you our you really how over I'll brand, thousands the portion with. new a other add our first our they organization six grow, so our And grow? yourself we're

country. built So clients we're in that data, largest talking client, to servicing now at client, Cloud tie we're we operations country. used skilled inventory aligned with technology we've that across the -- selling have to We is those that car some skilled that the Force the of to announced our we Rocket and we're just the

possess. to able develop whole business we So of all things channel, new leveraging already really a the we're

as allows so of So to ancillary side an view do the keep and business into it tied our or like what it's not -- it's we it us talent. I because core don't

been already doing of am we're and on thing, and at say with home. hey, Solar able about saving talking to take done been with is to spent for its I homes, of we they've that now here mix. people, it's people homes your additional and incredibly career, may It's money I'm years but she has but the same XX exact thinking about our for the and Jay, part best looking we a out and practices I a that who at millions touched has with which XX acquire synergies with here, exactly no opportunity, cost millions have do over or to we've me what half profitable leader about for an channel years, to millions who without this, learned the he mortgage. new instead that grow all of am somewhere looking my natural else that that stay for product with Same hour the second

concerned things the the add organization. being highly leverage that value to I'm our consumer, we've So, thin are too spread talent inside about and not got these no, because profitable

maybe capital you have enough question for do you some talk I'll bit portion, all a Now of think capital there, the these was all, in let dedicating about are enough Julie, we but things? I the capital

Julie Booth

will. I Yes, certainly

about highly of context lots of our a you do in move up yes business walked around bit capital, business that with we generative. and You is know and model a you hear cash and a little operate as capital-light

profitability of balance a that track record has sheet. allowed very strong to maintain us have a we strong demonstrated consistently So

opportunistic. great So be actually us continue this to flexibility very has to a given

is that's very our our So kind framework a capital, with been reiterate And think great profitable we've just business. it. of been about about how consistent outcome to of we really talking how

and look and we technology that to look is business to members. we and that needed $X capital shareholders given in and currently, have return going to something we're we we're stock still investing currently Then when to prepared and either through to team that as it it believe, reinvest through foremost, beyond additional that's operate capital our that in takes and just been at business. the our brands, to operate through our going M&A in cash opportunities dividends capital, our our business, operate to the is look I looked repurchases takes billion mentioned to that our if business our First my business a remarks share that, at or we undervalued

dollars about of have we I mining as said, $X.X of billion cash. So it XX available as June

dividend with of a of use all through past. in in repurchases So $X.X terms as either great billion to or said, we we where as liquidity a in us through this in position total potentially the shareholders could done puts we've both capital

Mihir Bhatia


Jay Farner

would have that model, to of options, have to we're the do. like ability our a We're to do of but we working through in to unique all position choose things the the but one not

Mihir Bhatia

on And executed place get capital back have anything And already. yet thank So, that you. buyback it? against point, do in then you in have just a you line, I'll Right?

Julie Booth

against XX-Q in coming that tomorrow. Yes, that the second the quarter we up and during executed have you that's will see

Mihir Bhatia

Understood, thank you.


from Please ahead. The Associates. Ryan Zelman comes McKeveny next from question and go

Ryan McKeveny

for questions. about Hey, ask congrats on my the will Rocket thanks Homes. and I one performance taking more

about of successfully. kind I the release idea dig a the little agents some run Detroit? the maybe Obviously the very playbook So comments on the thoughts in press staff centralizing Detroit, on share could mortgage in in just business, just on guess, side you've that agents and of to you of if around

typically very So industry, when face-to-face kind about real of distributed, obviously very think estate interactions. agent the I

you context here, talk kind from of through much. that of in just through the but been how typically across the that, maybe curious think country us of Thank happening very and operated? operating you Detroit, kind envision So that you how that how industry has how

Jay Farner

word homebuyers years. the it as I I message think last particular, market Mortgage large be has and want you the for again know what purchase using process, process. are Yes, that best two we've we've want the bespoke with watched that's is streamlined us. in be as And digital be control a time first been I pretty particular in Rocket that of it want through to to over-and-over come process to of a and a in That portion I

owner to would we've refer cases, ecosystem, the I And that Rocket network or And that that, so, And In them about or -- with today selling Homes people and their by who that because now are grow people a it's other homes. follow but we've instead in we to an who we pie. because Rocket what not people ways for and is as can want experience, we to into well, does that exactly process got Because that agent process. to sell the you started stop, built. the them. have say have I Homes through means their of don't process what homes our are they think there assist traditional run roadblock think local don't buy think different

the because want find We've this. to approved, they inventory and can't talk heard things So thousands of home. up, work thousands to open verified, I they're got Julie you these all buy and is reason are you've about open up a not people who of and together ready tell to buying and is what

up So So clients? how way do for a inventory those that do model. is the one we open centralized to

they Some do in services of agent can may our ready not be local but need full are not their may provide. neighbourhood ForSaleByOwner, be clients that

the getting of for to weeks their down centralized get that in in there the they to to to someone here client, our more across determine how other local so refer that assist need they assist way, country don't and licensed need at listed all Michigan help the via their And allows Oh, in later, web a or a our by path few we'll go in them network. centers agent that model still necessarily help, agent home they determine but one on if to the them simply they MLS, an complexities.

to the with way in that we they serviced. point direct-to-consumer centralized got mortgage, partners, your we've we've see opportunity about our got be want be partners. our And that to we so all TPO talk here, we broker we've client serviced you'll these mortgage, really way opportunities of that we we've any as the before, that different our got the to to same And can notice, talked but got about ensure

portion So and full understand the require estate have different things and the of our as people different being market, what is you we've opposed beyond. for market, a we and goal anyone in as is learned a grow to solution to real in mortgage,

out that's keep Homes Rocket us as do ecosystem. you'll there the we so And what building exactly see

Ryan McKeveny

much. That's very great, you thank


ahead. Piper from comes question Sandler. Kevin Please next go The from Barker

Kevin Barker

my taking questions. for Thanks

You about Could particularly retail and meaningful third an decline the in it's second I and origination, about And mentioned introduced quarter you. I then quarter? a definitely like mean, how third share in was industry have the we forecasts the that indicated believe has that new Thank seems given unveiled. third quarter? broker that just direct-to-consumer into most volumes, it and previous flow your think market a quarter? the significant how originations comments going your you're platform as talk pricing you impact been into we at taking

Jay Farner

them out technology the this we've partners of our things Well, best one have underwriting rolling a broker that few have mortgage Those broker the drawing the really over brokers experience. very tool, partners, been Calculator our it's using referencing that those comparisons whether which application professionals question, answers broker I and the to gives we product quite program best so Pathfinder somewhere got, take upfront. them effective to best for I things they brand-new you're Pricing month We've in. and really for that to do go to are built Calculator our ensure allows their that tools, a a determine it's year side-by-side think can XX,XXX the the think clients, mortgage

last brokers days here have or somewhere over seen that I recently XXX we've new think in joined here the our platform so. XX

that XX%, and before, Rocket but we we're our were the touched we So drawing we market broker brokers share June Pro below end to get a now June demonstrates are the just platform and to total that on quarter, I April this from the to of of XX%. second in market, the as when

be to about demanding tools is them in we're same we're growth technology believe in that So think hey, broker that and that area, technology, them the far other there our and than that be best that's brand invest we're just market use that the the the things you've in - our out things one for share It's me to as will the they use we're move us draw that partners. and Broker-Partners guess bespoke process homes, anyone are thing partner right the of choice, consumers choice our seeing particular there because proving decision. numbers I'll saying, continue and that faster give a providing, to so while, the or We're I and choice, thing we right. else not system, giving we'll to providing giving say a but talk heard and it's for last the the I

Kevin Barker

is in is into there the some particular given that that something also be is going showing market the driving quarter, strong retail decline overall? -- So is then retail -- margin and originations to particularly third

Jay Farner

away others probably result they you're non-interest our that because the QX our as we're That's say how we is products -- have, expenses on the seeing business, This I provided on into reduce that were touched not what science there would the us. is guidance -- that, have, we marketing investment touched do as data that that's on it's executing so does the as in, demonstrated, -- QX we pull sensitive I invested is now we giving -- before. where reach or it in we sometimes to pulling similar to rate we we've that about think so think that our history the as our away that of for guidance continue machine decide ability QX. we've that machine brand they a that and to that's to remain and we're or marketing

Kevin Barker

you. Thank


question-and-answer back to This Farner the session. any concludes I for to like closing conference our would over Jay turn remarks.

Jay Farner

today. joining I the appreciate just call everyone

we from forward a of QX. we're you As the appreciate end all again we when always, the receiving night. the get Have community look that of to to really we to great support investor and talking


presentation. Thank This conference today's attending is you for now concluded.

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