Rocket Companies(RKT) - 2024 Q4 - Annual Results

Financial Performance - Rocket Companies reported Q4 2024 total revenue of $1.8 billion, a 155% increase from$ 694 million in Q4 2023, and full year revenue of $5.1 billion, representing a 34% year-over-year growth[4][8]. - The company achieved a GAAP net income of$ 649 million in Q4 2024, compared to a loss of $233 million in Q4 2023, and a full year GAAP net income of$ 636 million, reversing a loss of $390 million in FY 2023[4][8]. - Total revenue for the fourth quarter of 2024 reached$ 1,769 million, a significant increase of 155.5% compared to $694 million in the same quarter of 2023[24]. - Adjusted revenue for Q4 2024 was$ 1,187 million, compared to $885 million in Q4 2023, marking a 34% increase[29]. - Total revenue for the year ended December 31, 2024, was$ 5,101 million, up from $3,799 million in 2023, representing a 34% increase[29]. - Adjusted revenue for the year ended December 31, 2024, was$ 4,902 million, up from $3,770 million in 2023, reflecting a growth of 29.9%[27]. Loan Origination and Volume - Closed loan origination volume for Q4 2024 was$ 27.8 billion, a 61% increase year-over-year, while full year closed loan origination volume reached $101.2 billion, a 29% increase compared to FY 2023[4][8]. - Rocket Mortgage's net rate lock volume for Q4 2024 was$ 23.6 billion, a 47% increase from the prior year, with full year net rate lock volume at $100.8 billion, a 28% increase year-over-year[4][8]. - Home equity loan volume more than doubled year-over-year in 2024, reinforcing Rocket Mortgage's position as the largest originator of closed-end second mortgages in the U.S.[10]. Profitability and Margins - The gain on sale margin for Q4 2024 was 2.98%, an increase of 30 basis points compared to Q4 2023, while the full year gain on sale margin was 2.95%, up 32 basis points year-over-year[4][8]. - The company reported a contribution margin of$ 460 million for the fourth quarter of 2024, compared to $340 million in the same quarter of 2023, indicating an increase of 35.3%[27]. - Adjusted net income for Q4 2024 was$ 85 million, compared to a loss of $6 million in Q4 2023, indicating a positive turnaround[31]. - Adjusted net income for the year ended December 31, 2024, was$ 456 million, compared to a loss of $143 million in 2023, showing a strong recovery[31]. Liquidity and Assets - The company reported a total liquidity position of$ 8.2 billion as of December 31, 2024, which includes $1.3 billion in cash and$ 1.6 billion in corporate cash for loan originations[4][18]. - Cash and cash equivalents increased to $1,273 million in 2024 from$ 1,108 million in 2023, representing a growth of 14.9%[19]. - The total assets of the company grew to $24,510 million in 2024, up from$ 19,232 million in 2023, reflecting a growth of 27.5%[26]. - Funding facilities rose significantly to $6,708 million in 2024, compared to$ 3,367 million in 2023, an increase of 99.5%[19]. - The company’s total equity increased to $9,043 million in 2024 from$ 8,302 million in 2023, representing a growth of 8.9%[19]. Customer Metrics and Satisfaction - Rocket Companies' net client retention rate was 97% for the year ended December 31, 2024, indicating strong customer loyalty and lifetime value[8]. - Rocket Mortgage has been ranked 1 in client satisfaction for primary mortgage origination and mortgage servicing by J.D. Power a total of 22 times, the highest among mortgage lenders[47]. Future Outlook - The company expects adjusted revenue for Q1 2025 to be between $1.175 billion and$ 1.325 billion[12]. - The effective income tax rate for Q4 2024 was 24.32%, slightly lower than 24.47% in Q4 2023[32]. Technology and Innovation - The company launched Rocket.com and its mobile apps in February 2025, integrating home search, financing, and mortgage servicing into a single platform powered by AI[10]. - Rocket Companies processes over 65 million call logs annually, managing 10 petabytes of data[47].