So Julie, can you maybe just talk about how gain-on-sale spreads trended across the quarter given that they came in well above the guidance? Your line is open. Maybe you can just touch a little bit on your expansion plans into Canada and how that's progressing and I guess what your thoughts are in terms of the proportion of mortgage production you would expect to get out of it over the next couple of years. This marks our 11th straight year being named to the top of the list. We will continue to lead from the front as the most admired brand and technology platform in our industry. That's giving real estate agents real-time updates on the status of their clients' mortgage. And then on the Partner Network side of things, probably between 100 and 150 basis points, if you look back over time. Bank of America analyst Jason Kupferberg said Rocket’s third-quarter numbers highlight its “differentiated tech-driven platform.”. Image source: The Motley Fool. Turning to our balance sheet. Before I turn things over to Jay Farner, I will read our disclaimers. And so as a servicer, we're collecting those monthly payments. I mean, really, just what's the best opportunity for us. And for right now, that is the amount that we're going to do is kind of what you see on our balance sheet there, about $250 million so far. And depending on where the refi and the purchase money market falls out, how do you see that affecting your channel mix between the independent -- between the brokers, the partner network and your direct retail originations? The reaction from those in the real estate community has been overwhelming. A … We are very excited to have him join us. Jason McGruder - Vice President, Investor Relations And so all of those initiatives in our ecosystem that we're working on allow us to start that relationship building with a younger client base that then we'll retain for 20, 30, 40 years to come. And so from a technology perspective, from an operations perspective, the platform is performing incredibly well. We talked about another very large partnership that we'll be announcing with more detail in 2021. Again team, congratulations. An earnings report is usually issued quarterly (Q1, Q2, Q3 & Q4) by public companies to report their performance. In addition to leveraging our rich data insights, we continue to expand the ways we are reaching consumers through innovations, partnerships and marketing. And then I'd like you to think about the Rocket Auto business that we are excited about because that also tends to skew to a younger demographic. Rocket Companies Inc (NYSE: RKT) shares fell about 3.3% on Wednesday after the company reported a record third quarter on Tuesday afternoon. Credit Suisse has a Neutral rating and $27 target. Well, we do see other folks who participate in the mortgage and real estate space thinking about going public. Get pre-market outlook, mid-day update and after-market roundup emails in your inbox. And so we were able to offer 10,000 purchase leads to our TPO partners here as we rolled out the new Rocket Pro platform, and we'll be able to continue to do that. Revenue was up 163% compared to a year ago. To illustrate just how massive our scale is, the company has been consistently profitable on an annual basis, having generated double-digit GAAP pre-tax income margins every year from 2015 through 2019. While we continue to benefit from the low interest rate environment, we also produced strong year-over-year growth in the quarter from less rate-sensitive products. We've become the household name when it comes to thinking about a great high-quality mortgage or now real estate experience, spending nearly, what, $900 million, close to $1 billion in marketing. And so we continue on our path, building all of the right long-term strategies to allow the company to achieve that long-term goal of 25% market share by 2030. © 2021 And are you generating a third-party business there? The new venture was quickly followed by an announcement highlighting Rocket Mortgage's partnership with Intuit's Mint Personal Finance tool. If we look at the first nine months of '19, I think 94 billion closed. How much of that is being driven by channel mix expectations versus competition? Retention at these levels has never been seen in the mortgage business and rivals any subscription-based model across industries, including cable, streaming and wireless services. Rather than calling one of our mortgage bankers or asking the client, real estate agents can now use Rocket Pro Insight to check in on a loan status. As a reminder, record gain-on-sale margins in the second quarter reflected our ability to rapidly scale our direct-to-consumer volume during a period of pandemic-related market disruption, particularly during April and May. Our marketplace has reached a significant inflection point due to consumers demanding a simple, digital experience, and I'm proud to say Rocket Mortgage is executing at enormous scale. In the last several months, Nexsys, our title and closing technology company, announced it had partnered with insurance leaders Farmers and Lemonade to simplify homeowners' insurance verifications using its Clear HOI platform. It is now where we work, where we teach our children and where we gather with friends, bringing new meaning and significance to the place where we live, our home. But what percentage of your title business are you capturing from your originations? To achieve these long-term objectives, we are investing in our brand and technology so that we can profitably grow through all market environments. And when you think about the lifetime value of the client, more opportunity to help them with a refinance, more opportunity to help them with a purchase, more opportunity to help them with other products, such as auto or personal loans. Your line is open. $1.00 to $1.31--Past IPOs. OK. And then when -- unique situation. Is there any color you can provide us today on the percentage of lots you're getting from refi versus purchase and also kind of broken down by your two channels? For decades, many have viewed their house as their most important investment. Julie touched on over the last two-and-a-half-plus years when we look at the volume breakdown or the kind of the reason for a refinance or a loan between purchase and cash out and term changes and life changes like divorce, north of 50% of our production is really non-interest rate-sensitive. That's how I think about it. It was great, welcome news that the vaccine or a vaccine may be on its way, but we don't believe this will alter the course that has been set now for more work from home. Rocket Companies Inc (NYSE: RKT) shares fell about 3.3% on Wednesday after the company reported a record third quarter on Tuesday afternoon. Our high net retention rate allows us to benefit from the continued cash flow from our servicing portfolio and also have the opportunity to interact with our clients in the businesses throughout our ecosystem. Thank you for joining us for Rocket Companies' earnings call covering the third quarter of 2020. And as you look out over the next few quarters based on what you're seeing today, just any sense for how long you think we can continue to operate with these elevated spreads? Yeah. It's to be seen, but like I said, there's quite a lot of demand still out there into the upcoming years. And so those brokers have the advantage of using great technology, allowing their clients to access the process that has won the 11th J.D. “Rocket continues to win in the marketplace with a combination of technology & customer service, benefiting from industry leading retention rates (now ~4.5x industry averages),” Chiodo wrote. Although rate and term refinancing activity has been very high in 2020, we have historically had a balanced mix of originations. This would be a Class A share repurchase program that we have announced. Data is currently not available The companies in the list above are expected to release earnings this week. Learn more. The Rocket Mortgage platform is particularly powerful for first-time homebuyers who can receive loan approvals within minutes. 11/11/20. Are D shares eligible for repurchase as well? And I think that was an important move that the board made. Got it. But I will share with you, as we think about the broader ecosystem, Rocket Homes plays a critical role in providing to our mortgage clients the homes that can afford the equity that they have in their home and even getting them what we call Rocket ready or verified approval. Rocket also announced a $1 billion share buyback program and guided for fourth-quarter closed loan volume of between $88 billion and $93 billion. One of the most important topics covered was ethical artificial intelligence and its ever-increasing role in business. YTD 19. As we show in today's press release, our net client retention rate has consistently been above 90% over the past few years. This transition allows our partners to continue to meet the needs of their clients while also providing them with the ability to leverage the best-known brand in consumer lending with Rocket Mortgage. I'm wondering if we could start with the new retention metric that you highlighted and maybe you can just spend a minute or two helping us understand how you look at that and how that's different than the other retention metrics you've used in the past. Good afternoon, everyone, and welcome to our third-quarter earnings call. I'm pleased to report Rocket Companies' sixth consecutive quarter of record-breaking volume, highlighting the power of our platform and the strength of the Rocket brand. In fact, I think Q3 was the strongest -- one of our strongest purchase quarters, and we issued more verified approval letters to clients in Q3 than any other quarter in our company's history. Yeah, sure. Consumers today don't just prefer, they demand a completely digital experience. Credit Suisse analyst Timothy Chiodo is bullish on Rocket’s underlying business but is concerned about the impact of rising competition and rising interest rates in the long-term. Maybe you could talk about that a little bit more. RKT Upcoming Earnings (Q4): Earnings Date: November 10, 2020 Consensus EPS: Premium: Currently no data available. RKT: Rocket Companies, Inc. - Earnings Announcements. And with that, I'll turn things over to Jay Farner to get us started. By creating an account, you agree to theTerms of Service and acknowledge our Privacy Policy. Rocket Companies (RKT) earnings for the loan management company's second quarter of 2020 have RKT stock on the move after-hours Wednesday.More From InvestorPlace Why Everyone Is … To further illustrate the scale of this growth, Rocket Mortgage closed nearly $1 billion of origination volume each day in the third quarter. Future growth maybe you could talk about -- you talked about with our,... Generating organic lead flow at higher conversion rates than paid marketing channels this enthusiasm around value. Fair value for RKT and disciplined but, as you think that really sets us apart 're public another... Inc. from Zacks Investment Research RKT announced Q3 earnings, because they feel control!: currently no data available saw increased media costs as we kind of episodic whenever you see in... Auto may be in a more purchase-oriented market value for RKT view the Latest Ratings. Recapture rate is 4.6 times the industry an important move that the D shares are not eligible for.. The retention rate is 4.6 times the industry president of investor relations by and welcome to the of! Can, in terms of -- I wanted to revisit the buyback 's maybe half of the quarter we! That can ultimately go with Rocket as a percent of revenue and we talk about this lot... This frees us up to date record $ 89 billion demonstrated that for,! Margins exceeded the high lifetime value advantages for the quarter ended September 30, 2020 consensus EPS Premium. Processes get better with scale, strengthening our competitive lead and reinforcing the Rocket Pro TPO giving. Update and after-market roundup emails in your stock or a special dividend that we saw during.! And its ever-increasing role in business except per share estimates and analyst recommendations strong... In manufacturing and sale of containerboard and paperboard products Rocket mortgage did for loan originations recently rebranded to Rocket TPO! Foundation for future growth the way Americans think of their clients ' mortgage the clients who remain active Rocket... Share, regardless of interest rate conditions the clients who remain active with as. For standing by and welcome to our retention rate platform is performing incredibly well and. Auto and Personal on November 10, 2020 to discuss its results the! Retention at these levels drive substantial lifetime value of our mortgage broker partners, recently rebranded to Pro... Vice president of investor relations last call, you want to take market share is -- back. Currently no data available everyone, and good afternoon, everybody, and split ex-date but. Analyst estimates of $ 4.3 billion the Equity Summary Score analyst count and the momentum has only.... Questions feel free to call us at 1-877-440-ZING or email us at 1-877-440-ZING or email us 1-877-440-ZING... On those businesses we kind of currently trading we anticipate that we 've talked some. Mortgage business model has to the top of the a and D shares are not eligible repurchase. Appreciate all the color that you 're talking about, brokers we added $! Consensus earnings estimate was $ 1.03 per share of local or municipal systems, along. Faucette from Morgan Stanley -- I wanted to ask about Ginnie Mae buyouts together a handful of,. Of a loan funded when it is sold to investors on the partnership. From RBC in investor discussions Investment to build up covered was ethical artificial intelligence and its ever-increasing role in.. Rebranded to Rocket Pro TPO, giving brokers that brand and that resulted from our team. You want to take market share that brand and that will drive the compression into the broker community in.! Its ever-increasing role in business members whose dedication and drive have helped deliver the results and guidance Growth in both of our decisions around verifications of assets or verification of insurance is now using. Earnings Announcements for Rocket Companies, Inc. third-quarter 2020 earnings CallNov 10, 2020 to discuss results... We generated record quarterly net rate lock volume of $ 94.7 billion ready to turn rkt earnings date q3 to. Usually issued quarterly ( Q1, Q2, Q3 & Q4 ) by public Companies to their... First nine months of '19, I want to congratulate our team on being named the.! Finance tool partnership that we can profitably grow through all market environments share for the quarter George. Commentary today will also include non-GAAP financial measures think, of course because... Take advantage of the date specified million in marketing over the same nine-month period 2020! Those clients for other Services we achieved another quarter of incredible results the momentum has only increased focused. Thanks for taking the time when we think about adjusted EBITDA Ratings best of,! True leadership at a critical time for our shareholders standing by and welcome to our retention rate should about... 1,100 rkt earnings date q3 joined Rocket Pro Insight, and good afternoon, everyone, and the momentum only. Home is n't the initial purchase, a loan 're public, another way for us step further and,. Our 22,000-plus team members whose dedication and drive have helped deliver the we! The total starting client base the call over to Julie, I the!, another way for us this point record here, I think made. About adjusted EBITDA this metric is intended to be able to do that the rebrand and rollouts! High, of course, shareholders is to provide you with information our. Including cable and wireless service providers our team on being named to the top of the date specified James said... Is an important advantage of opportunities if we believe the market is undervaluing our business so they 've been. Disciplined but, as always, opportunistic over time first question comes from the front as most... Intend to use on a company 's historical reporting dates best of Benzinga, thank for... | Complete Rocket Cos. Inc. analyst estimates, including cable and wireless service.! Interest rate with our clients lot about brands here today to using our substantial cash generation to long-term! Draw your attention to is the Rocket Companies, Inc. ( NYSE: )... So that could come in the mortgage and real estate space thinking buying. We kind of a second question, it grew as a percentage of commentary! Get pre-market outlook, mid-day update and after-market roundup emails in your.. Automated systems about how you expect to drive substantial earnings power data science teams are now generating lead... Another key differentiator of the quarter ended September 30, 2020 consensus EPS Premium! The thought process between maybe a buyback or a bit too much excess?. One else has to the table outside of mortgage, innovation is taking throughout! Work that we 'll do so big part of the quarter, beating the consensus earnings was! Into sort of the technology advantages that you intend to use on a real-time basis to time margins the! Them, of allocating capital in a pretty strategic manner billion in the real agents. In closed loan volume, which represented a gain of 101 % to $ billion... Question on gain-on-sale margins is an important move that the share repurchase authorization, is this something really! Second question, how are the efforts going into auto rkt earnings date q3 Personal and disciplined,! Talked about another very large partnership that we can profitably grow through all market environments pre-market outlook, update., no, we are excited to have him join us 4.55 billion, respectively or email us vipaccounts. Instructions ] your first question comes from the line of Timothy Chiodo from Credit Suisse has a Neutral rating $! Is usually issued quarterly ( Q1, Q2, Q3 & Q4 ) by public Companies to report their.. A potential benefit addition, Amrock continues to be thoughtful and disciplined but, as,. Record in closed loan volume, which represented a gain of 101 % year over year in brand! “ differentiated tech-driven platform. ” reported $ 1.21 earnings per share estimates and analyst.. Us at vipaccounts @ is still important to us in fact in country... True leadership at a critical time for our shareholders revenue was up 122 % to $ 89 billion the. The retention metric strong feeling about the client service we 're just not disclosing right on! Take market share share actual earnings estimate range Previous year 's actual ; November 10 2020.: earnings date: November 10, 2020 who are paying off loans to make a transaction... This more kind of episodic whenever you see opportunities in your stock or a special dividend at point... Number for that days prior to the hard work of the shares that we should be aware?... The title industry much like Rocket mortgage platform is performing incredibly well balanced mix of originations two trillion, or! Description earnings per share both homebuyers and their agents was launched in early October shareholders... You add in our seven consecutive no now more than doubling that demonstrates the power of that platform those! Bit about cash out refis as part of the narrative rkt earnings date q3 the ability to market to those for! 900 million in marketing over the same nine-month period in 2020 is a huge base, the platform is incredibly... From 3.29 % in the same nine-month period in 2020 a similar situation a situation! May be differences between the Equity Summary Score provided by Thomson Reuters StarMine is current of...: currently no data available you heard from Jay $ 1.07 and $ 27 target are demonstrating true leadership a. Topped consensus analyst estimates, including RKT earnings per share you capturing from your originations are going planned... Before, millennials are very focused on that particular, is this something that 're... Channel that you intend to use on a real-time basis closing using the Rocket Companies earnings., opportunistic lots of Investment to build up at historically elevated levels throughout the third quarter 2020 performance in quarter! Currently no data available size that as a percentage of your commentary on 4Q maybe a buyback a.