DETROIT - Rocket Companies, Inc. (NYSE: RKT), a leading fintech platform company, today announced its financial results for the fourth quarter, surpassing analyst expectations with an adjusted earnings per share (EPS) of $0, which was $0.05 higher than the anticipated -$0.05. The company's revenue reached $885 million, significantly exceeding the consensus estimate of $762.44 million.
The company's performance in the fourth quarter marked a notable achievement, with adjusted revenue soaring above the high end of the guidance range and demonstrating accelerated year-over-year (YoY) growth for the second consecutive quarter. Compared to the fourth quarter of the previous year, which saw a net revenue of $481 million, Rocket Companies achieved a remarkable 83.99% increase in net revenue YoY.
Investors responded positively to the earnings release, with the company's stock price jumping 7.38%, indicating strong market approval of the financial results and growth trajectory.
Varun Krishna, CEO of Rocket Companies, expressed pride in the team's consistent execution amid challenging market conditions for mortgage originations. He highlighted the company's accelerating YoY revenue growth, sustained adjusted EBITDA profitability, and market share gains in both purchase and refinance segments.
The company's full-year results also painted a picture of resilience and strategic cost management. Despite a GAAP net loss of $233 million for the quarter, the full-year net revenue stood at $3.8 billion, with the company reducing its cost structure by nearly 20% in 2023, following a nearly 25% cost reduction in 2022.
Looking ahead, Rocket Companies anticipates adjusted revenue between $925 million to $1,075 million for the first quarter of 2024. This guidance suggests a promising start to the new fiscal year, as the company continues to leverage AI across its operations to enhance client experiences and drive growth in market share, revenue, and profitability.
The company's strategic focus on AI and automation has yielded significant operational efficiencies, particularly in mortgage underwriting, where nearly two-thirds of income verifications were automated without underwriter intervention, representing a five-fold improvement from 15 months prior.
Rocket Companies' strong financial performance and forward-looking strategy underscore its commitment to maintaining a leading position in the fintech industry and delivering value to its clients and shareholders alike.
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