The following is a summary of the Real Matters Inc. (RLLMF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Consolidated revenue in Q3 2024 increased 17% sequentially to $49.5 million and 8% year-over-year.
Consolidated adjusted EBITDA was $1.7 million in Q3, driven by strong operating leverage in the U.S. appraisal and Canadian segments.
U.S. appraisal revenues were up 15% quarter-over-quarter, and the U.S. title segment posted an increase of 5% in the same period.Third quarter net revenue increased 8% year-over-year to $13.1 million, with consolidated operating expenses up 11% year-over-year to $11.9 million.
Business Progress:
Improved market share in U.S. appraisal with four top clients, maintaining leadership on lender scorecards.
Launched two new channels with one client in U.S. title and ongoing discussions anticipate higher refinance volumes in 2025.
Canada segment saw revenues increase by 30% quarter-over-quarter, with net revenue up 31% due to strong spring market activity, resulting in adjusted EBITDA growth of 46%.
Positioned for potential market recovery with a strong focus on scale and market share, and a simplified target operating model aiming for long-term robust profitability.
Opportunities:
Potential increase in refinance volumes in 2025 could boost business, especially identified 14% of outstanding mortgages above 6% interest as a target market.
U.S. mortgage origination market represents a significant growth opportunity.
Risks:
Lingering macro market factors muted seasonal purchase origination volumes, indicating sensitivity to broader economic conditions.
Competitive environment with companies like UWM being aggressive in the market and banks reclaiming market share leading to intensity in competition.
More details: REAL MATTERS INC IR
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