Rocket Companies(RKT) - 2023 Q4 - Annual Results

Financial Performance - Generated Q4 2023 net revenue of $694 million and adjusted revenue of $885 million, with adjusted revenue exceeding the high end of guidance range[5] - Reported full year 2023 net revenue of $3.8 billion, with a GAAP net loss of $390 million, or a loss of $0.15 per diluted share[9] - Adjusted EBITDA for Q4 2023 was $55 million, marking the third consecutive quarter of profitability[5] - Total revenue for Q4 2023 was $694 million, a 44.4% increase from $481 million in Q4 2022[28] - The adjusted revenue for the year ended December 31, 2023, was $3,770 million, compared to $4,628 million in 2022, representing a 18.5% decrease[28] - Adjusted Net Loss for the year ended December 31, 2023, was $143 million, a decrease from a loss of $137 million in 2022[32] - Net loss attributable to Rocket Companies for Q4 2023 was $11 million, compared to a loss of $18 million in Q4 2022[32] - Adjusted EBITDA for Q4 2023 was $55 million, compared to a loss of $204 million in Q4 2022[36] Loan Origination and Market Share - Closed loan origination volume for Q4 2023 was $17.3 billion, with a gain on sale margin of 2.68%, a 51 basis points increase year-over-year[6] - Purchase market share grew by 14% and refinance market share grew by 10% from 2022 to 2023[9] Liquidity and Cash Position - Total liquidity as of December 31, 2023, was approximately $9.0 billion, including $1.1 billion in cash and $2.5 billion in corporate cash for loan originations[9] - Total available cash was $3.6 billion as of December 31, 2023, supporting the company's liquidity position[19] - Cash and cash equivalents increased to $1,108 million as of December 31, 2023, up from $722 million in 2022, representing a 53.5% increase[20] Assets and Liabilities - Total assets decreased to $19,232 million as of December 31, 2023, down from $20,082 million in 2022, reflecting a 4.2% decline[27] - The total liabilities decreased to $10,930 million as of December 31, 2023, from $11,607 million in 2022, a reduction of 5.8%[27] - Total equity as of December 31, 2023, was $8,302 million, a slight decrease from $8,476 million in 2022, down by 2.1%[20] Client Retention and Product Innovation - Rocket Mortgage net client retention rate was 97% for the 12 months ended December 31, 2023, indicating strong client loyalty[9] - In 2023, the company introduced innovative products such as home equity loans, ONE+, and BUY+, attracting new clients[11] Forward-Looking Statements - For Q1 2024, the company expects adjusted revenue between $925 million and $1,075 million[13] - Forward-looking statements indicate that future results may differ materially due to various risks and uncertainties[46] Company Overview - Rocket Companies is a fintech platform founded in 1985, including brands like Rocket Mortgage and Rocket Homes[47] - Rocket Mortgage has been ranked 1 in client satisfaction for primary mortgage origination and servicing by J.D. Power a total of 21 times[48] - The company focuses on helping clients achieve home ownership and financial freedom through digital solutions[48]