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Rocket Companies Announces Second Quarter 2024 Results

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Generated Q2’24 total revenue, net of $1.3 billion and adjusted revenue of $1.2 billion. Adjusted revenue exceeded the high end of guidance range and increased year-over-year for the fourth straight quarterReported Q2’24 GAAP net income of $178 million, or $0.01 per GAAP diluted earnings per share and adjusted net income of $121 million, or $0.06 per adjusted diluted earnings per shareDelivered Q2’24 adjusted EBITDA of $225 million, increasing year-over-year for the fifth straight quarter

DETROIT, Aug. 1, 2024 /PRNewswire/ — Rocket Companies, Inc. (NYSE: RKT) (“Rocket Companies” or the “Company”), the Detroit-based fintech platform company including mortgage, real estate and personal finance businesses, today announced results for the second quarter ended June 30, 2024.

“Our team achieved impressive results in Q2. We, again, grew our purchase market share year-over-year by making continuous improvements across our processes, teams, marketing, and technology. We also delivered year-over-year top-line growth for the fourth straight quarter and expanded profitability for the fifth quarter in a row,” said Varun Krishna, CEO and Director of Rocket Companies. “We consider ourselves the most optimistic company in America. Every day, Rocket makes 30-year bets on people who make 30-year bets on themselves. With our AI-fueled homeownership strategy, and by helping our clients overcome obstacles to achieve their dreams, we are making the homeownership experience easier and more accessible for all.”

Second Quarter 2024 Financial Summary 1

ROCKET COMPANIES
($ in millions, except per share amounts)

Q2-24

Q2-23

YTD 24

YTD 23

(Unaudited)

(Unaudited)

Total revenue, net

$                1,301

$                1,236

$                2,684

$                1,902

Total expenses

$                1,109

$                1,098

$                2,194

$                2,180

GAAP Net income (loss)

$                   178

$                   139

$                   469

$                  (272)

Adjusted revenue

$                1,228

$                1,002

$                2,391

$                1,884

Adjusted net income (loss)

$                   121

$                    (33)

$                   205

$                  (144)

Adjusted EBITDA

$                   225

$                     18

$                   399

$                    (61)

GAAP diluted earnings (loss) per share

$                   0.01

$                   0.05

$                   0.13

$                 (0.11)

Adjusted diluted earnings (loss) per share

$                   0.06

$                 (0.02)

$                   0.10

$                 (0.07)

 

($ in millions)

Q2-24

Q2-23

YTD 24

YTD 23

Select Metrics

(Unaudited)

(Unaudited)

Closed loan origination volume

$          24,662

$          22,330

$          44,867

$          39,260

Gain on sale margin

2.99 %

2.67 %

3.05 %

2.54 %

Net rate lock volume

$          25,050

$          22,244

$          47,412

$          41,779

1

“GAAP” stands for Generally Accepted Accounting Principles in the U.S. Please see the sections of this document titled “Non-GAAP Financial Measures” and
“GAAP to non-GAAP Reconciliations” for more information on the Company’s non-GAAP measures and its share count. Certain figures throughout this
document may not foot due to rounding.

Second Quarter 2024 Financial Highlights

Generated total revenue, net of $1.3 billion and GAAP net income of $178 million, or $0.01 per diluted share. Generated total adjusted revenue of $1.2 billion and adjusted net income of $121 million, or adjusted earnings of $0.06 per diluted share.Rocket Mortgage generated $24.7 billion in closed loan origination volume, a 10.4% increase over the same period of the prior year.Gain on sale margin was 2.99%, an increase of 32 bps over the same period of the prior year.Total liquidity was $8.6 billion, as of June 30, 2024, which includes $1.3 billion of cash on the balance sheet, and $1.9 billion of corporate cash used to self-fund loan originations, $3.4 billion of undrawn lines of credit, and $2.0 billion of undrawn MSR lines of credit.Servicing portfolio unpaid principal balance, which includes subserviced loans, was $534.6 billion or 2.6 million loans serviced as of June 30, 2024. The portfolio generates approximately $1.4 billion of recurring servicing fee income on an annualized basis. We acquired mortgage servicing right (“MSR”) portfolios in the quarter, for total consideration of $315 million. The MSR acquisitions added $20.8 billion of unpaid principal balance of loans with a blended weighted average coupon higher than our current portfolio, providing a compelling refinance opportunity when rates decline.

Second Quarter 2024 Company Highlights

We expanded purchase share year-over-year through numerous optimizations in our processes, teams, marketing, and technology capabilities.Rocket Mortgage was named #1 in the nation in J.D. Power’s 2024 study for client satisfaction in mortgage servicing, the 10th year Rocket Mortgage has earned the accolade. J.D. Power surveyed more than 11,000 American homeowners to determine the rankings. J.D. Power has ranked Rocket Mortgage #1 in client satisfaction for primary mortgage origination and mortgage servicing a total of 22 times – the most of any mortgage lender.Our home equity loan product continues to resonate strongly with clients, offering a compelling solution to tap into home equity without impacting the lower rate on a client’s first lien mortgage. In Q2 2024, home equity loan volume more than doubled compared to the same period last year, setting a new record. During the quarter, we enhanced the speed and efficiency of our home equity loan process through the launch of an Automated Valuation Model (AVM). AVM represents a major upgrade, providing a cost-efficient digital alternative to traditional in-person appraisals. This innovation allows us to deliver cash from home equity loans in as little as 7 business days, meeting our clients’ needs with unprecedented speed and accuracy.We expanded our AI-powered live chat, the preferred asynchronous mode of communication for both new and older generations, across the client journey. With chat, we quickly and accurately gauge client intent upfront, and provide personalized solutions at scale. This has resulted in higher satisfaction for both clients and team members, as well as significantly higher conversion rates. Recent data shows that clients using chat have conversion rates three times higher compared to those who didn’t leverage chat.We expanded the roll out of Rocket Logic Assistant, our AI-powered personal assistant, to our entire banking team. Rocket Logic Assistant transcribes client calls and automatically completes mortgage applications in real-time, super-charging our bankers’ productivity and reducing fatigue. Rocket Logic Assistant seamlessly generates more than 300,000 detailed transcripts weekly from outbound calls.In June, we launched MSR audit automation, an upgraded workflow system that streamlines the loan onboarding process and drives efficiency at scale. With this new system, our capital markets team can now complete MSR audits in half the time. This enhancement allows us to onboard MSR portfolios more quickly, efficiently, and accurately, which is essential as we expand our portfolio.In May, Rocket Companies appointed Shawn Malhotra as its first Chief Technology Officer. In this role, Malhotra will oversee the development and implementation of technology across the entire Rocket Companies ecosystem, including AI development, Data Science, Product Engineering, Technology Operations and Information Security – among other areas. Previously, Malhotra held a variety of technology leadership roles at Thomson Reuters.We will hold our first Investor Day on September 10, 2024, in downtown Detroit. The event will feature presentations and engagement opportunities with Rocket Companies’ leadership, immersive demo experiences, and a tour of downtown Detroit and our Company. The event will be held in person, and a webcast will be available on our Investor Relations website.

Rocket Corporate Responsibility: For-More-Than-Profit

In June, we published our 2023 ESG report, which highlights Rocket’s commitment to being a For-More-Than-Profit organization and our commitment to our clients, communities and team members. The report can be found on the Social Impact tab of our Investor Relations website.Rocket Mortgage held its sixth annual Rocket Mortgage Classic event from June 25 to June 30, 2024 at the Detroit Golf Club. Since 2019, the Rocket Mortgage Classic has raised over $8.4 million for local charitable organizations, including $4.3 million for the “Changing the Course” initiative to connect Detroit residents to high-speed internet, digital devices and digital literacy training.Rocket Community Fund, a partner company, announced a $320,000 investment in Black Tech Saturdays, an organization that aims to promote diversity and inclusion in the tech industry through workshops, training programs and community outreach in Detroit. In June, Rocket Community Fund collaborated with Microsoft, Black Tech Saturdays and Sistah’s Reachin’ Out to host AI Explained, an event focused on raising awareness of generative AI and its benefits for nonprofits and small business owners.Rocket Community Fund, National Black Empowerment Council (NBEC), and Goodwill of North Georgia today announced the launch of the Homeownership Wealth Initiative, a pilot program offering comprehensive financial education and homeownership guidance for Atlanta residents.

Third Quarter 2024 Outlook2

In Q3 2024, we expect adjusted revenue between $1.15 billion to $1.3 billion.

2 Please see the section of this document titled “Non-GAAP Financial Measures” for more information.

Direct to Consumer

In the Direct to Consumer segment, clients have the ability to interact with the Rocket Mortgage app and/or with the Company’s mortgage bankers. The Company markets to potential clients in this segment through various brand campaigns and performance marketing channels. The Direct to Consumer segment derives revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. The segment also includes title insurance, appraisals and settlement services complementing the Company’s end-to-end mortgage origination experience. Servicing activities are fully allocated to the Direct to Consumer segment and are viewed as an extension of the client experience. Servicing enables Rocket Mortgage to establish and maintain long term relationships with our clients, through multiple touchpoints at regular engagement intervals.

DIRECT TO CONSUMER3
($ in millions)

Q2-24

Q2-23

YTD 24

YTD 23

(Unaudited)

(Unaudited)

Sold loan volume

$                     13,032

$                       12,446

$                        22,081

$                        21,257

Sold loan gain on sale margin

4.14 %

3.67 %

4.19 %

3.69 %

Total revenue, net

$                          981

$                         1,023

$                          2,075

$                          1,521

Adjusted revenue

$                          909

$                            789

$                          1,782

$                          1,502

Contribution margin

$                          375

$                            259

$                             718

$                             468

Partner Network

The Rocket Professional platform supports our Partner Network segment, where we leverage our superior client service and widely recognized brand to grow marketing and influencer relationships, and our mortgage broker partnerships through Rocket Pro TPO (“third party origination”). Our marketing partnerships consist of well-known consumer-focused companies that find value in our award-winning client experience and want to offer their clients mortgage solutions with our trusted, widely recognized brand. These organizations connect their clients directly to us through marketing channels and a referral process. Our influencer partnerships are typically with companies that employ licensed mortgage professionals that find value in our client experience, technology and efficient mortgage process, where mortgages may not be their primary offering. We also enable clients to start the mortgage process through the Rocket platform in the way that works best for them, including through a local mortgage broker.

PARTNER NETWORK3
($ in millions)

Q2-24

Q2-23

YTD 24

YTD 23

(Unaudited)

(Unaudited)

Sold loan volume

$                       11,296

$                         9,571

$                         19,064

$                         16,155

Sold loan gain on sale margin

1.59 %

0.93 %

1.57 %

0.89 %

Total revenue, net

$                            188

$                            122

$                              358

$                              211

Adjusted revenue

$                            188

$                            122

$                              358

$                              211

Contribution margin

$                            126

$                              56

$                              241

$                                79

3

We measure the performance of the Direct to Consumer and Partner Network segments primarily on a contribution margin basis. Contribution margin is intended to measure the direct profitability of each segment and is calculated as Adjusted revenue less directly attributable expenses. Directly attributable expenses include salaries, commissions and team member benefits, general and administrative expenses, and other expenses, such as direct servicing costs and origination costs. A loan is considered “sold” when it is sold to investors on the secondary market. See “Summary Segment Results” section later in this document and the footnote on “Segments” in the “Notes to Consolidated Financial Statements” in the Company’s forthcoming filing on Form 10-Q for more information.

Balance Sheet and Liquidity

Total available cash was $3.2 billion as of June 30, 2024, which includes $1.3 billion of cash and cash equivalents, and $1.9 billion of corporate cash used to self-fund loan originations. Additionally, we have access to $3.4 billion of undrawn lines of credit, and $2.0 billion of undrawn MSR lines of credit from financing facilities, for a total liquidity position of $8.6 billion as of June 30, 2024.

BALANCE SHEET HIGHLIGHTS
($ in millions)

June 30, 2024

December 31, 2023

(Unaudited)

Cash and cash equivalents

$                          1,309

$                        1,108

Mortgage servicing rights, at fair value

$                          7,163

$                        6,440

Funding facilities

$                          7,022

$                        3,367

Other financing facilities and debt

$                          4,171

$                        4,237

Total equity

$                          8,814

$                        8,302

Second Quarter Earnings Call

Rocket Companies will host a live conference call at 4:30 p.m. ET on August 1, 2024 to discuss its results for the quarter ended June 30, 2024. A live webcast of the event will be available online by clicking on the “Investor Info” section of our website. The webcast will also be available via rocketcompanies.com.

A replay of the webcast will be available on the Investor Relations site following the conclusion of the event.

Condensed Consolidated Statements of Income (Loss)
($ In Thousands, Except Per Share Amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Revenue

Gain on sale of loans

Gain on sale of loans excluding fair value of
originated MSRs, net

$                      413,011

$                      279,629

$                889,440

$               544,632

Fair value of originated MSRs

345,545

314,840

568,342

519,400

Gain on sale of loans, net

758,556

594,469

1,457,782

1,064,032

Loan servicing income

Servicing fee income

354,677

343,591

700,423

709,976

Change in fair value of MSRs

(112,941)

42,377

(56,433)

(355,902)

Loan servicing income, net

241,736

385,968

643,990

354,074

Interest income

Interest income

112,415

80,757

201,395

147,501

Interest expense on funding facilities

(81,293)

(59,512)

(132,736)

(94,624)

Interest income, net

31,122

21,245

68,659

52,877

Other income

269,308

234,545

514,007

431,312

Total revenue, net

1,300,722

1,236,227

2,684,438

1,902,295

Expenses

Salaries, commissions and team member
benefits

553,420

579,139

1,094,516

1,182,914

General and administrative expenses

232,952

200,425

469,617

395,815

Marketing and advertising expenses

210,937

218,843

417,233

400,447

Depreciation and amortization

28,009

25,357

55,026

56,042

Interest and amortization expense on non-
funding debt

38,364

38,334

76,729

76,667

Other expenses

44,998

35,759

80,905

68,027

Total expenses

1,108,680

1,097,857

2,194,026

2,179,912

Income (loss) before income taxes

192,042

138,370

490,412

(277,617)

(Provision for) benefit from income taxes

(14,117)

782

(21,773)

5,286

Net income (loss)

177,925

139,152

468,639

(272,331)

Net (income) loss attributable to non-
controlling interest

(176,630)

(131,714)

(451,129)

261,246

Net income (loss) attributable to Rocket
Companies

$                          1,295

$                           7,438

$                  17,510

$                (11,085)

Earnings (loss) per share of Class A
common stock

Basic

$                            0.01

$                             0.06

$                       0.13

$                    (0.09)

Diluted

$                            0.01

$                             0.05

$                       0.13

$                    (0.11)

Weighted average shares outstanding

Basic

139,647,845

126,740,748

138,319,794

125,742,282

Diluted

139,647,845

1,979,450,651

138,319,794

1,977,148,197

 

Condensed Consolidated Balance Sheets
($ In Thousands)

June 30,
2024

December 31,
2023

Assets

(Unaudited)

Cash and cash equivalents

$                   1,309,494

$                    1,108,466

Restricted cash

27,764

28,366

Mortgage loans held for sale, at fair value

9,486,922

6,542,232

Interest rate lock commitments (“IRLCs”), at fair value

170,381

132,870

Mortgage servicing rights (“MSRs”), at fair value

7,162,690

6,439,787

Notes receivable and due from affiliates

14,325

19,530

Property and equipment, net

233,257

250,856

Deferred tax asset, net

528,104

550,149

Lease right of use assets

314,683

347,696

Forward commitments, at fair value

13,025

26,614

Loans subject to repurchase right from Ginnie Mae

1,945,022

1,533,387

Goodwill and intangible assets, net

1,239,819

1,236,765

Other assets

1,203,228

1,015,022

Total assets

$                 23,648,714

$                  19,231,740

Liabilities and equity

Liabilities:

Funding facilities

$                   7,022,439

$                    3,367,383

Other financing facilities and debt:

Senior Notes, net

4,036,187

4,033,448

Early buy out facility

134,615

203,208

Accounts payable

205,949

171,350

Lease liabilities

356,050

393,882

Forward commitments, at fair value

8,508

142,988

Investor reserves

94,362

92,389

Notes payable and due to affiliates

31,743

31,006

Tax receivable agreement liability

584,695

584,695

Loans subject to repurchase right from Ginnie Mae

1,945,022

1,533,387

Other liabilities

415,223

376,294

Total liabilities

$                 14,834,793

$                  10,930,030

Equity

Class A common stock

$                                  1

$                                   1

Class B common stock

Class C common stock

Class D common stock

19

19

Additional paid-in capital

357,610

340,532

Retained earnings

300,958

284,296

Accumulated other comprehensive income

85

52

Non-controlling interest

8,155,248

7,676,810

Total equity

8,813,921

8,301,710

Total liabilities and equity

$                 23,648,714

$                  19,231,740

 

 

 

Summary Segment Results for the Three and Six Months Ended June 30, 2024 and 2023
($ in millions)
(Unaudited)

Three Months Ended June 30, 2024

Direct to

 Consumer

Partner

 Network

Segments Total

All Other

Total

Total U.S. GAAP Revenue, net

$                    981

$                    188

$                 1,169

$                 132

$                 1,301

Change in fair value of MSRs due to valuation
     assumptions, net of hedges

(73)

(73)

(73)

Adjusted revenue

$                    909

$                    188

$                 1,097

$                 132

$                 1,228

Less: Directly attributable expenses

534

62

596

89

684

Contribution margin (1)

$                    375

$                    126

$                    501

$                    43

$                    544

Three Months Ended June 30, 2023

Direct to
Consumer

Partner Network

Segments Total

All Other

Total

Total U.S. GAAP Revenue, net

$                 1,023

$                     122

$                 1,146

$                    90

$                 1,236

Change in fair value of MSRs due to valuation
     assumptions, net of hedges

(235)

(235)

(235)

Adjusted revenue

$                     789

$                     122

$                     911

$                    90

$                 1,002

Less: Directly attributable expenses

529

66

596

70

665

Contribution margin (1)

$                     259

$                       56

$                     316

$                    21

$                    336

Six Months Ended June 30, 2024

Direct to
Consumer

Partner Network

Segments Total

All Other

Total

Total U.S. GAAP Revenue, net

$                 2,075

$                    358

$                 2,433

$                    251

$                 2,684

Change in fair value of MSRs due to valuation
      assumptions, net of hedges

(293)

(293)

(293)

Adjusted Revenue

$                 1,782

$                    358

$                 2,140

$                    251

$                 2,391

Less: Directly attributable expenses

1,064

117

1,181

178

1,359

Contribution margin (1)

$                    718

$                    241

$                    959

$                      73

$                 1,032

Six Months Ended June 30, 2023

Direct to
Consumer

Partner Network

Segments Total

All Other

Total

Total U.S. GAAP Revenue, net

$                 1,521

$                    211

$                 1,732

$                    170

$                 1,902

Change in fair value of MSRs due to valuation
     assumptions, net of hedges

(18)

(18)

(18)

Adjusted Revenue

$                 1,502

$                    211

$                 1,713

$                    170

$                 1,884

Less: Directly attributable expenses

1,035

132

1,167

146

1,313

Contribution margin (1)

$                    468

$                      79

$                    547

$                      24

$                    571

(1)

We measure the performance of the segments primarily on a contribution margin basis. Contribution margin is intended to measure the direct profitability of each segment and is calculated as Adjusted revenue less directly attributable expenses. Adjusted revenue is a non-GAAP financial measure described below. Directly attributable expenses include salaries, commissions and team member benefits, general and administrative expenses, marketing and advertising expenses and other expenses, such as direct servicing costs and origination costs.

 

GAAP to Non-GAAP Reconciliations

Adjusted Revenue Reconciliation 
($ in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Total revenue, net

$               1,301

$                1,236

$               2,684

$                1,902

Change in fair value of MSRs due to valuation assumptions, net
of hedges (1)

(73)

(235)

(293)

(18)

Adjusted revenue

$               1,228

$                1,002

$               2,391

$                1,884

(1)

Reflects changes in market interest rates and assumptions, including discount rates and prepayment speeds, and the effects of contractual prepayment protection associated with sales or purchases of MSRs.

 

Adjusted Net Income (Loss) Reconciliation
($ in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Net income (loss) attributable to Rocket Companies

$                        1

$                        7

$                     18

$                    (11)

Net income (loss) impact from pro forma conversion of
Class D common shares to Class A common shares (1)

177

132

452

(260)

Adjustment to the (provision for) benefit from income tax
(2)

(33)

(35)

(98)

62

Tax-effected net income (loss) (2)

145

105

371

(209)

Share-based compensation expense

39

51

70

103

Change in fair value of MSRs due to
valuation assumptions, net of hedges (3)

(73)

(235)

(293)

(18)

Tax impact of adjustments (4)

8

45

54

(20)

Other tax adjustments (5)

1

1

2

2

Adjusted net income (loss)

$                   121

$                    (33)

$                   205

$                 (144)

(1)

Reflects net income (loss) to Class A common stock from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders as of June 30, 2024 and 2023.

(2)

Rocket Companies is subject to U.S. Federal income taxes, in addition to state, local and Canadian taxes with respect to its allocable share of any net taxable income (loss) of Holdings. The adjustment to the (provision for) benefit from income tax reflects the difference between (a) the income tax computed using the effective tax rates below applied to the income (loss) before income taxes assuming Rocket Companies, Inc. owns 100% of the non-voting common interest units of Holdings and (b) the provision for (benefit from) income taxes. The effective income tax rate was 24.40% for the three and six months ended June 30, 2024 and 24.29% for the three and six months ended June 30, 2023, respectively.

(3)

Reflects changes in market interest rates and assumptions, including discount rates and prepayment speeds, and the effects of contractual prepayment protection associated with sales or purchases of MSRs.

(4)

Tax impact of adjustments gives effect to the income tax related to share-based compensation expense, and the change in fair value of MSRs due to valuation assumptions, at the effective tax rates for each quarter.

(5)

Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the purchase of Holdings units, net of payment obligations under Tax Receivable Agreement.

 

Adjusted Diluted Weighted Average Shares Outstanding Reconciliation 
($ in millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Diluted weighted average Class A Common shares
outstanding

139,647,845

1,979,450,651

138,319,794

1,977,148,197

Assumed pro forma conversion of Class D shares (1)

1,848,879,483

1,848,879,483

Adjusted diluted weighted average shares
outstanding

1,988,527,328

1,979,450,651

1,987,199,277

1,977,148,197

Adjusted net income (loss)

$                  121

$                    (33)

$                   205

$                 (144)

Adjusted diluted earnings (loss) per share

$                 0.06

$                 (0.02)

$                  0.10

$                (0.07)

(1)

Reflects the pro forma exchange and conversion of anti-dilutive Class D common stock to Class A common stock for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2023, Class D common shares were dilutive and are included in the Diluted weighted average Class A common shares outstanding in the table above.

 

Adjusted EBITDA Reconciliation
($ in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Net  income (loss)

$                   178

$                   139

$                   469

$                 (272)

Interest and amortization expense on non-funding debt

38

38

77

77

Provision for (benefit from) income taxes

14

(1)

22

(5)

Depreciation and amortization

28

25

55

56

Share-based compensation expense

39

51

70

103

Change in fair value of MSRs due to valuation
assumptions, net of hedges (1)

(73)

(235)

(293)

(18)

Adjusted EBITDA

$                   225

$                     18

$                   399

$                    (61)

(1)

Reflects changes in market interest rates and assumptions, including discount rates and prepayment speeds, and the effects of contractual prepayment protection associated with sales or purchases of MSRs.

Non-GAAP Financial Measures 

To provide investors with information in addition to our results as determined by GAAP, we disclose Adjusted revenue, Adjusted net income (loss), Adjusted diluted earnings (loss) per share and Adjusted EBITDA (collectively “our non-GAAP financial measures”) as non-GAAP measures. We believe that the presentation of our non-GAAP financial measures provides useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Our non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income (loss), or any other operating performance measure calculated in accordance with GAAP. Other companies may define non-GAAP financial measures differently, and as a result, our measures of our non-GAAP financial measures may not be directly comparable to those of other companies. Our non-GAAP financial measures provide indicators of performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures.

We define “Adjusted revenue” as total revenues net of the change in fair value of mortgage servicing rights (“MSRs”) due to valuation assumptions, net of hedges. We define “Adjusted net income (loss)” as tax-effected net income (loss) before share-based compensation expense, the change in fair value of MSRs due to valuation assumptions, net of hedges and the tax effects of those adjustments as applicable. We define “Adjusted diluted earnings (loss) per share” as Adjusted net income (loss) divided by the adjusted diluted weighted average shares outstanding which includes diluted weighted average Class A common stock and the assumed pro forma exchange and conversion of Class D common stock outstanding for the applicable period presented. We define “Adjusted EBITDA” as net income (loss) before interest and amortization expense on non-funding debt, income tax, depreciation and amortization, share-based compensation expense, and change in fair value of MSRs due to valuation assumptions, net of hedges.

We exclude from each of our non-GAAP financial measures the change in fair value of MSRs due to valuation assumptions, net of hedges, as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, which is not indicative of our performance or results of operation. We also exclude effects of contractual prepayment protection associated with sales of MSRs. Adjusted EBITDA includes Interest expense on funding facilities, which are recorded as a component of Interest income, net, as these expenses are a direct cost driven by loan origination volume. By contrast, interest and amortization expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.

Our definitions of each of our non-GAAP financial measures allow us to add back certain cash and non-cash charges, and deduct certain gains that are included in calculating Total revenue, net, Net income (loss)  attributable to Rocket Companies or Net income (loss). However, these expenses and gains vary greatly, and are difficult to predict. From time to time in the future, we may include or exclude other items if we believe that doing so is consistent with the goal of providing useful information to investors.

Although we use our non-GAAP financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business. Our non-GAAP financial measures can represent the effect of long-term strategies as opposed to short-term results. Our presentation of our non-GAAP financial measures should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Because of these limitations, our non-GAAP financial measures should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations.

For financial outlook information, the Company is not providing a quantitative reconciliation of adjusted revenue to the most directly comparable GAAP measure because the GAAP measure cannot be reliably estimated and the reconciliation cannot be performed without unreasonable effort due to their dependence on future uncertainties and adjusting items that the Company cannot reasonably predict at this time but which may be material.

Forward Looking Statements

Some of the statements contained in this document are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission (“SEC”). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

About Rocket Companies

Founded in 1985, Rocket Companies (NYSE: RKT) is a Detroit-based fintech platform company consisting of personal finance and consumer technology brands including Rocket Mortgage, Rocket Homes, Amrock Title and Settlement Services, Rocket Money and Rocket Loans.

With more than 65 million call logs each year, 10 petabytes of data and a mission to Help Everyone Home, Rocket Companies is well positioned to be the destination for AI-fueled homeownership. Known for providing exceptional client experiences, J.D. Power has ranked Rocket Mortgage #1 in client satisfaction for primary mortgage origination and mortgage servicing a total of 22 times – the most of any mortgage lender.

For more information, please visit our Corporate Website or Investor Relations Website.

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Schneider Electric India Recognized by Frost & Sullivan as the Indian Company of the Year 2024

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Recognition for boosting customer value with its technologically powered solutions and market-leading position.Schneider Electric India has become a celebrated name in India’s smart metering market, leveraging six decades of operational excellence, industry expertise, and business success.

SAN ANTONIO, Dec. 23, 2024 /CNW/ — Frost & Sullivan recently assessed the metering industry, and based on its analysis, it has recognized Schneider Electric India Pvt Ltd (SEIPL) for the 2024 Indian Company of the Year Award. Schneider Electric India Pvt Ltd (SEIPL) is the Indian arm of Schneider Electric, a global leader in digital transformation of energy management and automation . A recognized name in India’s metering industry, Schneider Electric India draws on over 60 years of expertise and thought leadership in industrial sustainability, universal and software-centric automation, data privacy and security. Serving various sectors, including buildings, infrastructure, industries, data centers, and homes, the company demonstrates its solutions’ scalability, scope, and applicability . It has a robust Indian footprint with 31 factories (including five smart factories) and more than 39,000 employees serving customers in over 500 cities.

Over the years, Schneider Electric India has solidified its leadership position in India’s smart metering market, and the company has a dominant market share in the advanced metering infrastructure (AMI) segment. This superlative performance underscores its ability to deliver innovative and reliable solutions consistently. Schneider Electric’s advanced smart metering devices, equipped with cutting-edge technologies, empower both utilities and consumers. By enabling real-time data transmission and eliminating manual meter readings, these solutions optimize grid management, enhance billing accuracy, and drive operational efficiency—all while empowering consumers to monitor and control their energy consumption, contributing to sustainability and cost savings.

Iqra Azam, best practices research analyst at Frost & Sullivan, observed, “Schneider Electric’s rich history of accomplishments and best practices implementation demonstrates its focus on continuous growth, harmonizing with economic and social sustainability-focused initiatives and fortifying its market leadership.”

Speaking on this recognition, Mr. Deepak Sharma, Zone President, Greater India, and MD & CEO of Schneider Electric India, said, “This recognition underscores our team’s dedication to delivering scalable, cost-effective, and sustainable solutions that set us apart in the smart metering industry. Our strong emphasis on research and development, innovation, and localizing components allows us to meet market demands and provide enhanced value to our customers. Our Mysuru smart metering plant further reinforces our commitment to delivering on this promise.”

The company is strengthening its leadership position in the metering market by actively working to increasing the localization component of its electricity meters sold in India, providing customers with greater value and supporting local economies. By adopting a transparent business approach, Schneider Electric India is building strong, long-lasting customer relationships , providing a clear understanding of its value proposition from the outset.

“Schneider Electric India proves its commitment to sustainability with outstanding initiatives that align with the Indian Government’s approach to a green India. It maintains transparent, reliable, and continuous communication with customers, addressing their unmet needs, evolving demands, and regular queries,” added Neha Tatikota, industry analyst for Energy & Environment at Frost & Sullivan.

Each year, Frost & Sullivan presents a Company of the Year Award to the organization that demonstrates excellence in growth strategy and implementation in its field. The award recognizes a high degree of innovation in products and technologies and the resulting leadership in customer value and market penetration.

The Frost & Sullivan Best Practices Awards recognize companies in various regional and global markets for demonstrating outstanding achievement and superior performance in leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analyses, and extensive secondary research to identify best practices in the industry.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for helping investors, corporate leaders, and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion. Contact us: Start the discussion.

Contact:

Tarini Singh
P: +91 9953764546
E: tarini.singh@frost.com

About Schneider Electric

Schneider Electric’s purpose is to create Impact by empowering all to make the most of our energy and resources, bridging progress and sustainability for all. At Schneider, we call this Life Is On.

Our mission is to be the trusted partner in Sustainability and Efficiency.

We are a global industrial technology leader bringing world-leading expertise in electrification, automation, and digitization to smart industries, resilient infrastructure, future-proof data centers, intelligent buildings, and intuitive homes. Anchored by our deep domain expertise, we provide integrated end-to-end lifecycle AI-enabled Industrial IoT solutions with connected products, automation, software, and services, delivering digital twins to enable profitable growth for our customers.

We are a people company with an ecosystem of 150,000 colleagues and more than a million partners operating in over 100 countries to ensure proximity to our customers and stakeholders. We embrace diversity and inclusion in everything we do, guided by our meaningful purpose of a sustainable future for all.

www.se.com  

Follow us on: 

https://twitter.com/SchneiderElechttps://www.facebook.com/SchneiderElectric?brandloc=DISABLEhttps://www.linkedin.com/company/schneider-electrichttps://www.youtube.com/user/SchneiderCorporatehttps://www.instagram.com/schneiderelectric/http://blog.se.com/

Discover the newest perspectives shaping sustainability, electricity 4.0, and next-generation automation on Schneider Electric Insights.

Contact: Binni Rawat
Phone: +91-9999646207
Email ID: binni.rawat@se.com 

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ATFX won “Best Online Trading Company Global 2024” at World Business Outlook Awards 2024

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HONG KONG, Dec. 24, 2024 /PRNewswire/ — ATFX, a leading global forex and CFD broker, has been awarded the “Best Online Trading Company Global 2024” by the World Business Outlook Awards. This accolade highlights ATFX’s unwavering dedication to excellence, innovation, and delivering a superior trading experience for its clients worldwide.

This recognition underscores ATFX’s ability to combine cutting-edge trading technology with a client-centric approach. Offering robust platforms, personalized solutions, and extensive educational resources, ATFX ensures traders of all experience levels can navigate financial markets with confidence. Its global reach, paired with localized support, further solidifies its reputation as a trusted trading partner.

The World Business Outlook Awards celebrate organizations that demonstrate exceptional performance and leadership. By earning this award, ATFX has affirmed its position as an industry leader, committed to innovation and transparency. ATFX’s leadership credited this achievement to the trust of its clients, the dedication of its employees, and the company’s focus on staying ahead of industry trends.

Winning the “Best Online Trading Company Global 2024” reflects ATFX’s mission to redefine online trading standards. Moving forward, the company remains focused on enhancing its offerings, supporting financial literacy, and empowering traders globally with unparalleled tools and services.

About  ATFX

ATFX is a leading global fintech broker with a local presence in 23 locations and licenses from regulatory authorities including the UK’s FCA, Australian ASIC, Cypriot CySEC, UAE’s SCA, Hong Kong SFC and South African FSCA. With a strong commitment to customer satisfaction, innovative technology, and strict regulatory compliance, ATFX provides exceptional trading experience to clients worldwide.

For further information on ATFX, please visit ATFX website https://www.atfx.com.

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THE STATE OF GLOBAL OPTIMISM REVEALED BY LG IN NEW SURVEY

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Company Unveils the Biggest Topics of Global Optimism: Entertainment, AI and Healthcare.

SEOUL, South Korea, Dec. 23, 2024 /PRNewswire/ — According to the latest research by LG Electronics (LG), 48 percent of consumers say they are more optimistic now than they were compared to six months ago.

The survey, conducted across 16 markets, provides extensive data on global optimism, its drivers and the demographics that feel the most optimistic and happy. The global average optimism score is 7.49/10. France, the UK and Australia were revealed to be among the least optimistic countries, scoring 14.5 percent below the average. Conversely, Saudi Arabia (12 percent above), India (10.8 percent above) and the UAE (8.1 percent above) were the most optimistic. Consumers were most optimistic about their personal growth and development (69 percent) and family dynamics (66 percent), but least optimistic about their finances.

Entertainment, including movies, TV, music and art, was identified as the most significant factor driving optimism (60 percent), followed by AI (56 percent). Less than half of the respondents chose social media (48 percent), while international crises such as war generated the least optimism.

LG conducted the survey to support and understand the nature of happiness, aligning with its brand philosophy, Life’s Good. The results are part of LG’s broader effort to assess the potential and influence of optimism globally, reflecting the company’s commitment to enhancing consumer optimism.

The survey also reveals key aspects of generational attitudes towards optimism. Optimism and happiness both decrease with age, although the latter was found to reduce at a slower rate. Interestingly, despite younger age groups averaging higher rates of happiness and optimism, individuals under 18 reported some of the lowest scores. Additionally, 50 percent of Gen Zs expressed that optimism can be harmful, the highest of any age group. This caution may be due to their life stage, as Gen Zs were twice as likely to disagree about having the tools needed to succeed (16 percent) compared to millennials.

The Role of Social Media

Younger age groups are more likely to search online for positive content and like-minded people to improve optimism. 86 percent of consumers say social media impacts their personal lives, more than those who believe it impacts society (67 percent). Gen Zs are also more likely to talk to a therapist, indulge in shopping or take drastic actions to counter negativity, such as deleting a social media account.

In contrast, older groups tend to seek offline comforts, such as spending time outdoors, seeing family or engaging in hobbies. Younger people appear more willing to seek external methods to boost optimism and happiness compared to their older counterparts.

Optimism your feed

“As a brand that is passionate about spreading optimism, we strive every day to be the most customer-focused we can possibly be.” said Kim Hyo-eun, vice president and head of LG’s Brand Management Division. “Consumers want tools to feed their optimism and belief in the future, and providing this is a key part of LG’s mission. That is why we launched our ‘Optimism your feed‘ campaign, which empowered users to pull more optimistic content into their social media feeds. The campaign has been proven to help consumers boost positive feelings, with 78 percent of people saying they felt more optimistic after seeing the campaign versus before exposure.”

The “Optimism your feed” playlist can be found on LG’s global TikTok channel (@lge_lifesgood) and global YouTube channel (@LGGlobal). More details can be found on the campaign page on www.lg.com/lifesgood/.

Survey Methodology
Global survey conducted by GWI 
Fieldwork conducted from August 26 to October 7, 2024 
Age: Between 16 – 64 years old, all income levels 
Sample size: 300 respondents each across 16 markets, except for 70 respondents in KSA

About LG Electronics, Inc.
LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 74,000. LG’s four Companies – Home Appliance Solution, Media Entertainment Solution, Vehicle Solution and the Eco Solution – combined for global revenue of over KRW 82 trillion in 2023. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, automotive components and solutions, and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.

 

 Media Contacts:

LG Electronics, Inc.

LG Electronics, Inc.

Lea Lee 

Jenny Shin

+82 2 3777 3981

+82 2 3777 3692

lea.lee@lge.com 

jungin.shin@lge.com 

www.LGnewsroom.com  

www.LGnewsroom.com 

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Logo – https://mma.prnewswire.com/media/2585362/LG_logo.jpg

 

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