Loandepot, Inc. · NYSE:LDI
Loandepot — Q1 2022 Earnings Presentation
24 slides from Loandepot's earnings presentation, May 10, 2022
Slide 1: 1Q 2022 Investor Presentation
1Q 2022 INVESTOR PRESENTATION May 10, 2022
Slide 2: Disclaimer
DISCLAIMER 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 as
Slide 3: We Are Disrupting Consumer Finance Through Continuous Innovation
WE ARE DISRUPTING CONSUMER FINANCE THROUGH CONTINUOUS INNOVATION $12.5 trillion total addressable market Model positioned to Culture focused on continue capturing continuous innovation market share Relentless focus on delighting the customer 3
Slide 4: Why loanDepot Wins
WHY loanDepot WINS 1 Scaled Leader in a Massive Ecosystem that is Ripe for Disruption 2 Market-Leading Brand and Data-Driven Customer Acquisition Capabilities Interconnected Origination Strategy that Leverages the Same 3 Technology Platform to Thrive in Any Market Environment Purpose-Built End-to-En
Slide 5: Uniquely Positioned to Outrun the Competition
UNIQUELY POSITIONED TO OUTRUN THE COMPETITION Young and Entrepreneurial Industry leader as a 12-Year-Old Company Industry Leading Growth Origination CAGR of 32% vs. 18% for Industry(1) Room to Run 3.1% Market Share with Strong Growth Outlook(2) Purchase Strength 37% Purchase Composition(3) Purpose-B
Slide 6: A Scaled Platform Poised for Continued Growth
A SCALED PLATFORM POISED FOR CONTINUED GROWTH ✓ Tech-empowered platform with relentless focus on the customer $22bn 46% Q1’22 Origination 2010 – LTM Q1 ‘22 ✓ #2 Retail-focused non-bank U.S. mortgage originator (1) Volume Origination CAGR(2) ✓ Grown to scale through two interconnected strategies − Re
Slide 7: Diverse Management Team with Unique Skillsets
DIVERSE MANAGEMENT TEAM WITH UNIQUE SKILLSETS ANTHONY HSIEH FRANK MARTELL PATRICK JEFF WALSH ZEENAT SIDI JEFF Founder & Executive President & FLANAGAN Chief Revenue President & COO DERGURAHIAN Chairman Chief Executive Chief Financial Officer mello Chief Capital Markets 30+ Years Experience Officer O
Slide 8: Well-Defined Strategies for Profitable Growth That Leverage Our Unique Advantages
WELL-DEFINED STRATEGIES FOR PROFITABLE GROWTH THAT LEVERAGE OUR UNIQUE ADVANTAGES Leverage Local Presence Expand the Funnel Leverage Our Brand to Grow in All Market Environments Leverage proprietary Extend Data Analytics Increasing Retention technology to drive long Advantage and Lifetime Value term
Slide 9: Contemporary 12-Year-Old Company Invested for the Future
CONTEMPORARY 12-YEAR-OLD COMPANY INVESTED FOR THE FUTURE Established Scalable Infrastructure Diversification & Expansion Brand, Technology and Operations Transformation 2010-2012 2013-2015 2016-Present • Launched with the goal of disrupting mortgage • Expanded in-market retail reach through acquisit
Slide 10: Origination Strategy Built for All Markets
ORIGINATION STRATEGY BUILT FOR ALL MARKETS +3,000 mortgage professionals covering all 50 states RETAIL STRATEGY PARTNER STRATEGY Consumer Direct In-Market Partner High-tech, high-touch service Significant brand investment powered by mello® and +1,700 in- Joint ventures, integrated referral Descripti
Slide 11: Differentiated and Disruptive Model Creates Barriers to Entry
DIFFERENTIATED AND DISRUPTIVE MODEL CREATES BARRIERS TO ENTRY Scaled Traditional Branded Disruptors 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 11
Slide 12: Say Hello to mello: Digital Disruption Has Arrived
SAY HELLO TO mello® | DIGITAL DISRUPTION HAS ARRIVED One end-to-end ecosystem built to seamlessly meet the needs of our customers and team members The mello® Ecosystem The mello® Advantage Enterprise Lead Management 1.9x Increase in Conversion(1) Servicing & in Consumer Direct from Customer Portal p
Slide 13: Growing Brand Driving Scale and Expanding Our Reach
GROWING BRAND DRIVING SCALE AND EXPANDING OUR REACH Increased scale from investment allows us to continue expanding our brand into the future Existing Lead Sources New Opportunities Client Leads by Year (in millions) 11.5 ✓ Optimizing Digital Lead • Digital Leads Sources 10.6 10.6 9.2 • Affiliate Re
Slide 14: Vast Media Presence Interacts with Millions of Customers Daily
VAST MEDIA PRESENCE INTERACTS WITH MILLIONS OF CUSTOMERS DAILY Social Media Web & Digital Media 4.5m 42m site visits in Impressions in Q1 ‘22 Q1 ‘22 MLB Partnership 863m impressions since 2021 LCS coincided with ad launch spend increase 14
Slide 15: Outsized Originations Growth Relative to Industry
OUTSIZED ORIGINATIONS GROWTH RELATIVE TO INDUSTRY 2017- LTM Q1 ‘22 Origination CAGR 32% Industry(1) 18% Total Market 2.5% 2.1% 2.4% 2.8% 3.8% 3.3% 3.4% 3.3% 3.1% Share (%) : $80 500 ($ in billions) 447 450 $70 372 369 400 $60 346 350 299 $50 270 281 264 300 213 $40 250 200 $30 150 $20 100 $10 50 $18
Slide 16: Historical Cost Structure Comparison
HISTORICAL COST STRUCTURE COMPARISON While operating expenses decreased by $88m QoQ, expenses in bps of funded volume increased due to the decline in funded volume Historical expenses in bps of funded mortgage volume Total Revenue (bps funded 362 bps 338 bps 295 bps 428 bps 272 bps 234 bps volume):
Slide 17: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) $180 136 135 140 128 126 123 $160 120 109 $140 102 101 98 100 $120 80 $100 $80 60 $60 40 $40 20 $20 $42 $58 $77 $103 $130 $139 $145 $162 $153 $- - Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1 '22 UPB $ MSR FV, bps Recapture %(1) : 70% 64% 54
Slide 18: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity ($m) MSR / Tangible Net Worth 1.4x 1.3x $1,376 1.2x 1.1x 1.0x $554 13% $805 $772 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 $549 Non-Funding Debt / Tangible Net Worth $507 $458 $630 1.0x 1.0x 1.0x 6% 6% $822 0.9x $419 0.8x 4% $420 4% $265 $175 $130 $38 Q1 '21 Q2
Slide 19: Delivering Customers a Complete Solution
DELIVERING CUSTOMERS A COMPLETE SOLUTION First Mortgage Title Insurance ® mello® HELOC Escrow (Coming Soon) Services Homeowners Insurance Leads routed to maximize conversion based on dynamic lead scoring 19 (1) Other Income during the quarter was $41m. The difference primarily comprised of Joint Ven
Slide 20: Q2 2022 Outlook
Q2 2022 OUTLOOK Q2 2022 Guidance Current Market Metric Low High Conditions • Higher interest rates resulting in little incentive for rate and term Pull-through Weighted refinance $12 $22 Rate Lock Volume ($bn) • Tight housing supply continues to fuel competition for home purchases, however higher in
Slide 21: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 1Q’22 vs $ in MM except units and % 1Q’22 4Q’21 1Q’21 1Q’22 vs 1Q’21 4Q’21 Cash and cash equivalents $554.1 $ 419.6 $630.5 32.1% (12.1%) Loans held for sale, at fair value 6,558.7 8,136.8 8,787.8 (19.4%) (25.4%) Servicing rights, at fair value 2,086.0 2
Slide 22: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 1Q ’22 4Q’21 1Q’21 FY21 FY20 Adjusted Revenue Total Net Revenue $503.3 $ 705.0 $1,316.0 $ 3,724.7 $ 4,312.2 Change in FV of Servicing Rights, Net of Hedge 1.3 18.6 (74.6) 14.5 (58.9) Adjusted Total Revenue $504.6 $ 723.6 $1,241.4 $ 3,739.2 $ 4,253.3 Adjusted (
Slide 23: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 1Q ’22 4Q’21 3Q’21 2Q’21 1Q’21 Tangible Net Worth Total Equity $1,511.2 $1,629.4 $1,658.2 $1,568.8 $1,774.0 Less: Goodwill (40.7) (40.7) (40.7) (40.7) (40.7) Less: Intangibles (1.5) (1.6) (1.7) (1.8) (2.0) Tangible Net Worth $1,469.0 $1,587.0 $1,615.7 $1.526.3
Slide 24: 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 24