Loandepot, Inc. · NYSE:LDI
Loandepot — Q3 2021 Earnings Presentation
22 slides from Loandepot's earnings presentation, Nov 1, 2021
Slide 1: 3Q 2021 Investor Presentation
3Q 2021 INVESTOR PRESENTATION November 1, 2021
Slide 2: Disclaimer
DISCLAIMER 2 Forward-Looking Statements and Other Information This presentation may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, its operations and financial performance. You can identify these statements by the use of words such
Slide 3: We Are Disrupting Consumer Finance Through Continuous Innovation
$12 trillion total addressable market Culture focused on continuous innovation Relentless focus on delighting the customer Model positioned to continue capturing market share WE ARE DISRUPTING CONSUMER FINANCE THROUGH CONTINUOUS INNOVATION 3
Slide 4: Why loanDepot Wins
WHY loanDepot WINS Scaled Leader in a Massive Ecosystem that is Ripe for Disruption Founder-Led Management Team with Unique Skillsets Innovative Workplace and Customer-Centric Culture Attractive Financial Model with Earnings Growth Opportunity Market-Leading Brand and Data-Driven Customer Acquisitio
Slide 5: Uniquely Positioned to Outrun the Competition
5 UNIQUELY POSITIONED TO OUTRUN THE COMPETITION Young and Entrepreneurial Founder & CEO-led 11 Year Old Company Industry Leading Growth Origination CAGR of 46% vs. 28% for Industry(1) Room to Run 3.5% Market Share with Strong Growth Outlook(2) Purchase Strength 34% Purchase Composition(3) Purpose-Bu
Slide 6: Founder-led, tech-empowered platform with relentless focus on the customer
6 $32bn Q3’21 Origination Volume 88% YoY Q3 Growth in Servicing UPB $ Founder-led, tech-empowered platform with relentless focus on the customer #2 Retail-focused non-bank U.S. mortgage originator(1) Grown to scale through two interconnected strategies − Retail: consumer direct & in-market mortgage
Slide 7: Founder Led Management Team with Unique Skillsets
7 FOUNDER LED MANAGEMENT TEAM WITH UNIQUE SKILLSETS ANTHONY HSIEH Founder, Chairman & CEO 30+ Years Experience Prior: PATRICK FLANAGAN Chief Financial Officer 30+ Years Experience Prior: JEFF WALSH Chief Revenue Officer 30+ Years Experience Prior: GEORGE BRADY Chief Digital Officer 30+ Years Experie
Slide 8: Well-Defined Strategies for Profitable Growth
Extend Data Analytics Advantage Leverage Local Presence to Grow in All Market Environments Expand the Funnel WELL-DEFINED STRATEGIES FOR PROFITABLE GROWTH THAT LEVERAGE OUR UNIQUE ADVANTAGES Leverage Our Brand Increasing Retention and Lifetime Value 8
Slide 9: Contemporary 11 Year Old Company Invested for the Future
• Expanded in-market reach through acquisitions • Leveraged infrastructure to launch LD Wholesale • Strategic decision to begin retaining servicing • Launched with the goal of disrupting mortgage • Created scalable platform and infrastructure loanDepot Annual Mortgage Origination Volume Source: Hist
Slide 10: Origination Strategy Built for All Markets
10 ORIGINATION STRATEGY BUILT FOR ALL MARKETS RETAIL STRATEGY PARTNER STRATEGY Consumer Direct PartnerIn-Market Description Significant brand investment supporting customer acquisition through the digital channel High-tech, high-touch service powered by mello® and +1,700 in- market mortgage professi
Slide 11: Differentiated and Disruptive Model Creates Barriers to Entry
DIFFERENTIATED AND DISRUPTIVE MODEL CREATES BARRIERS TO ENTRY 11 Scaled Branded Disruptors Traditional Mortgage v1.0 Integrated Proprietary Technology Platform Powerful B2C Brand Multiple Retail Customer Engagement Strategies Powered by Big Data DTC & In-Market Retail Purchase High Growth
Slide 12: Say Hello to mello: Digital Disruption Has Arrived
12 Conditions Engine Servicing & Customer Portal Enterprise Lead Management Services Marketplace Digital Validation Infrastructure Product & Pricing Engine SAY HELLO TO mello® | DIGITAL DISRUPTION HAS ARRIVED One end-to-end ecosystem built to seamlessly meet the needs of our customers and team membe
Slide 13: Growing Brand Driving Scale and Expanding Our Reach
13 GROWING BRAND DRIVING SCALE AND EXPANDING OUR REACH Client Leads by Year (in millions) Source: Unmetric Data Increased scale from investment allows us to continue expanding our brand into the future • Digital Leads • Affiliate Relationships • Brand Recognition • Social Media Engagement • Local In
Slide 14: Vast Media Presence Interacts with Millions of Customers Daily
VAST MEDIA PRESENCE INTERACTS WITH MILLIONS OF CUSTOMERS DAILY 14 TV & Digital Media Social Media Web site visits in 9M‘21 YoY growth in daily website users from Q3’20 +81%15.9mm +26% Growth in Engagement from 9M’20 to 9M’21 MLB Partnership impressions since 2021 launch LCS coincided with ad spend i
Slide 15: Outsized Originations Growth Relative to Industry
OUTSIZED ORIGINATIONS GROWTH RELATIVE TO INDUSTRY Source: (1) Mortgage Bankers Association as of 10/17/2021; Pull through weighted rate lock volume is the unpaid principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability 15 201
Slide 16: Historical Cost Structure Comparison
Historical expenses in bps of funded mortgage volume HISTORICAL COST STRUCTURE COMPARISON 16 338 bps 295 bps 428 bps362 bps Total Revenue (bps funded volume): Pre-tax Net Income (bps funded volume): (31) bps 7 bps 200 bps8 bps Salary Expense Marketing and Advertising Expense Direct Origination Expen
Slide 17: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND 17 ($ in billions) Retention %(2) : Recapture %(1) : 60% 70% 92% 63% 97% 54% 96% 66% 95% 72% 95% 75% 92% 68% (1) Organic refinance consumer direct recapture rate is defined as the total unpaid principal balance (“UPB”) of loans in our servicing portfolio that are
Slide 18: Delivering Customers a Complete Solution
18 DELIVERING CUSTOMERS A COMPLETE SOLUTION Leads routed to maximize conversion based on dynamic lead scoring Mortgage Lending Title Insurance Escrow Services Homeowners Insurance Real Estate Home Improvement (Coming Soon) (1) Other Income during the quarter was $37.7m. The difference primarily comp
Slide 19: Q4 2021 Outlook
19 Q4 2021 OUTLOOK Q4 2021 Guidance Metric Low High Pull-through Weighted Rate Lock Volume ($bn) $ 18 $ 28 Origination Volume ($bn) $ 26 $ 31 Pull-through Weighted GOS Margin, bps 210 260 Current Market Conditions • Higher interest rates resulting in lower refinance transaction volumes • Continuing
Slide 20: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION 20 ($MM) 3Q’21A 2Q’21A 3Q’20A YTD’21 YTD’20 Adjusted Revenue Total Net Revenue $ 923.8 $ 779.9 $ 1,368.9 $ 3,019.7 $ 3,013.8 Change in FV of Servicing Rights, Net of Hedge 25.0 45.4 (23.3) (4.1) (13.3) Adjusted Total Revenue $ 948.8 $ 825.3 $ 1,345.6 $ 3,015.5 $ 3,0
Slide 21: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 21 $ in MM except units and % 3Q’21A 2Q’21A 3Q’20A 3Q’21 vs 2Q’21 3Q’21 vs 3Q’20 Cash and cash equivalents $ 506.6 $ 419.3 $ 637.5 20.8% (20.5%) Loans held for sale, at fair value 8,873.7 9,120.7 4,888.4 (2.7) 81.5 Servicing rights, at fair value 1,841.
Slide 22: We Are Proud to Serve the Communities in Which We Live and Work
WE ARE PROUD TO SERVE THE COMMUNITIES IN WHICH WE LIVE AND WORK 22