Rocket Companies, Inc. · NYSE:RKT
Rocket Companies — Q3 2023 Earnings Presentation
39 slides from Rocket Companies's earnings presentation, Nov 2, 2023
Slide 1: Rocket Companies Investor Presentation
Rocket Companies Investor Presentation NOVEMBER 2023
Slide 2: Disclaimer
@ DISCLAIMER This presentation contains and related discussions may contain “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements include information concerning possible or assumed future results of operations, Rocket Companies, Inc.'s (the "Comp
Slide 3: Starting with a simple idea...
(3) STARTING WITH A SIMPLE IDEA... In the early days of the internet era, our Founder and Chairman Dan Gilbert committed the company’s entire resources to moving online. Rocket continues to lead in driving transformative change in the mortgage industry. “WE MUST take this great technology to the int
Slide 4: Building a technology giant
(3) BUILDING A TECHNOLOGY GIANT ROCKET 2 1 Welcome, Kim. JDP monToAce S 7 e 6 Tt Awards 1234 Main Street Remaining Loan Balance Transaction $200,000 © Volume Since Inception| ( View Mortgage Details Monthly autopay scheduled for October 1 Net Promoter $1,000 © Score! Make An Extra Payment Edit Autop
Slide 5: Our companies
(3) OUR COMPANIES HOME FINANCING PERSONAL FINANCE |HOME SEARCH & SALES ROCKET Sinescekdsenicer | ROSKET siirctane | ROSKET | Eonsseushater amrock — Wsteesetlomert | ROCKET irslin LENDESK eos <onese = Rocket Companies consists of personal finance and consumer technology brands including Rocket Mortga
Slide 6: Investment highlights
@) INVESTMENT HIGHLIGHTS Transforming complex transactions, driving long-term growth at scale. o 0 @ MASSIVE SUPERIOR FRAGMENTED CLIENT DATA MARKETS EXPERIENCE ADVANTAGE TRUSTED, MULTIPLE PROVEN DIGITAL-FIRST AVENUES LEADERSHIP BRAND OF GROWTH AND CULTURE TECHNOLOGY & 6 of 39
Slide 7: Rocket Companies
ROCKET ‘Companies
Slide 8: Massive market opportunity
?) MASSIVE MARKET OPPORTUNITY Rocket competes in some of the largest, most complex segments of the economy: () MORTGAGE fi REAL ESTATE (2) FINANCIAL SERVICES Source: Bureau of Economic Analysis, Bloomberg, National Association of Realtors, Mortgage Bankers Association, Edmunds, Research and Markets,
Slide 9: Buying a new home is the most stressful event
“Many Americans, about 40%, say buying a new home is the most stressful event in modern life.” - HOUSINGWIRE 9 of 39
Slide 10: Home ownership priorities are accelerating
(3) HOME OWNERSHIP PRIORITIES ARE ACCELERATING A demographic wave of almost 70M Americans aged 20-34 is entering home ownership for the first time, demanding digital transformation of the real estate experience. 15% of clients using online platform are first-time homeowners or Millennials 15-19 20-2
Slide 11: Rocket is positioned to lead our industries
(3) ROCKET IS POSITIONED TO Our markets remain highly fragmented compared to other large industries that moved online earlier - like e-commerce, travel or tax prep. Rocket is positioned to lead the digital transformation of our industries. Source: Equity Research LEAD OUR INDUSTRIES 50% 40% 30% 20%
Slide 12: Long-term mortgage market share gains
(3) LONG-TERM MORTGAGE MARKET SHARE GAINS ; | Rocket Originations ($ in B) —@— Rocket Market Share 8% @ 78% Both purchase and refinance market share grewindividually in 2022! Total market share in 2022 impacted by the dramatic mix shift from refinance to purchase 5.0% $145 2010 2011, 2012 2013 2014
Slide 13: Experience
Experience | A = ‘& oa Ga. oi | \ nay
Slide 14: Guided financial wellness at every step of the homebuying journey
1, GUIDED FINANCIAL WELLNESS Meet Lydia, She begins her financial journey with us by using the Rocket Money app to track her spending habits, credit score and more. Lydia also signs up for the Rocket Visa Signature® Card and starts banking Rocket Rewards points with every transaction. 2. TOOLS TO PR
Slide 15: Rocket's client engagement program
G) ROCKET’S CLIENT ENGAGEMENT PROGRAM With the foundational pieces of our client engagement program in place, we can serve our clients on every step of the homebuying journey. = ROCKET Your Next Home miles begins wth Buy a home for about $350,000 in December 2023 in Detroit,MI Cord Balance ito Net C
Slide 16: Superior client experience
(3) SUPERIOR CLIENT EXPERIENCE In complex transactions where the legacy experience can be confusing and discouraging, Rocket provides simple, fast, and trusted digital solutions. ROCKET Mortgage Your Mortgage TRADITIONAL ROCKET INDUSTRY EXPERIENCE EXPERIENCE TRANSACTIONAL r—> PERSONALIZED CONFUSING
Slide 17: Extending client lifetime value
(3) EXTENDING CLIENT LIFETIME VALUE BEFORE CLIENTS ARE READY TO TRANSACT ROCKET Money © Rocket Rewards Other Rocket Client Engagement Programs ~ $13,500 ROCKET 450 bps $300K Mortgage? + $3,000 ROCKET 1% Real Estate Agent Commission + $1,500 AMROCK + $$$$ Repeat Transactions $18,000+ ROCKET ‘Companie
Slide 18: Digital-first, personalized experience
G) DIGITAL-FIRST, PERSONALIZED EXPERIENCE Rocket's proprietary technology delivers a seamless digital experience for our clients. PERSONALIZED EXPERIENCE REAL OPTIONS VERIFIED APPROVAL DIGITAL CLOSING ONE TAP TO LIVE EXPERTS @ © i) ® ROCKET Your Next Home “Ajourney of a thousand miles begins with a
Slide 19: Technology and Data Advantage
2) , oa i Technology and Data Advantage
Slide 20: Well positioned to leverage AI
G) WELL POSITIONED TO LEVERAGE AI At Rocket, we have a strong foundation in place and a wealth of assets at our fingertips to leverage generative Al and revolutionize the homebuying and financing process to help everyone experience ‘home’. 10 3.7 30 PETABYTES BILLION MILLION OF DATA AI-GENERATED CUS
Slide 21: Powered by proprietary technology stack
G) POWERED BY PROPRIETARY TECHNOLOGY STACK Proprietary technology developed in-house that drives our entire operating process. Proprietary Software Drives Entire Stack DIGITAL POINT-OF-SALE PARTNER API PLATFORM Digital Client Acquisition Software- Driven Workflows Client Servicing & Retention DATA S
Slide 22: Slide 22
Slide 23: Primary mortgage origination and servicing
PRIMARY PRIMARY MORTGAGE MORTGAGE SERVICING ORIGINATION
Slide 24: With national brand recognition
?) WITH NATIONAL BRAND RECOGNITION Rocket's trusted, nationally recognized, digital-first brand, backed by billions of dollars of investment over many years, is a competitive advantage that is difficult to replicate. Most Differentiated Brand in Mortgage’ ROCKET wrtqage Classic © © © Rocket's 2022 S
Slide 25: Multiple Drivers of Growth
Multiple Drive OfGrowth |
Slide 26: Multiple drivers of growth
MULTIPLE DRIVERS OF GROWTH DIRECT-TO-CONSUMER + Investing in brand and client acquisition Current Mortgage Info + Growing digital adoption POWERED BY ROCKET Pro + Growing market penetration RETAINING CLIENTS FOR FUTURE TRANSACTIONS + 90%+ Net Client Retention! + Extend client lifetime value Your Mor
Slide 27: The Rocket flywheel
THE ROCKET FLYWHEEL The core of our economic flywheel is that we are constantly reinvesting in the business, further strengthening our competitive position. Consistent Fe On Efficiency THE ROCKET ECOSYSTEM 27 of 39
Slide 28: Proven Leadership and Culture
= MO) 2 Proven Leat And Culture
Slide 29: Rocket Companies leadership
ROCKET COMPANIES LEADERSHIP BILL EMERSON Board Director Rocket Companies President & COO Rocket Companies BRIAN BROWN CFO & Treasurer Rocket Companies TIM BIRKMEIER TINA JOHN President General Counsel Rocket Mortgage Rocket Companies 1 @ NICOLE BEATTIE DOUG SEABOLT CEO CEO Amrock Rocket Homes VARUN
Slide 30: Culture is our foundation
CULTURE IS OUR FOUNDATION @__ !nnovation is rewarded. Dan Gilbert, our founder Execution is worshipped. and Chairman, purposefully created a strong cultural foundation of core 2022 EDITION principles, or “ISMs,” as a cultural operating : system to guide ( @ You'llsee it when decision-making = you be
Slide 31: Love our team members
LOVE OUR TEAM MEMBERS Our team members put the ISMs into action every day. The result is an empowered and passionate team aligned in a common mission. Great Lafeteo [oy ESSENCE Forbes Work Forbes ReOp ue FORTUNE FORTUNE FORTUNE @ @ @ e @ @ @ @ 2015 2018 2019 2021 2020, 2022 2020, 2021, 2022 2023 #1
Slide 32: For more than profit
(3) FOR MORE THAN PROFIT epee MA SANUS, SOCIAL AND GOVERNANCE REPORT Our company and community are inextricably linked, = S G serving as the foundation for our community investment, team member development and business growth strategies. R_CKET Companies #1 $200M+ 1M 100K+ Nation’s largest Contribut
Slide 33: Appendix
Appendix
Slide 34: Financial highlights
(3) FINANCIAL HIGHLIGHTS (Units in ‘000s, $ in M) 2021 2022 Q3'21 Q3'22 Q3'23 Q4'23E} Adjusted Revenue $12,427 $4,628: $3,162 $888 $1,002: $650-$800 YoY % (27%) (63%): (33%) (72%) 13% Q0Q % N/A N/A 13% (21%) 0% Adjusted EBITDA $6,200 $59 $1,568 ($160) $73 % Margin 50% 1% 50% -18% 7%: Adjusted Net In
Slide 35: Endnotes (1)
(3) ENDNOTES (1) Three Months Ended September 30, ($ in M) NET INCOME (LOSS) Interest And Amortization Expense On Non-funding Debt Income Tax Provision (Benefit) Depreciation And Amortization Share-based Compensation Expense (a) Change In Fair Value Of MSRs Due To Valuation Assumptions (Net Of Hedge
Slide 36: Endnotes (1)
(3) ENDNOTES (1) Three Months Ended September 30, |Nine Months Ended September 30, ee (Sin M) = (Unaudited) (Unaudited) TOTAL REVENUE, NET $1,203 $1,295 $3,105 $5,358 Change in fair value of MSRs due to valuation assumptions (net of hedges) (a) 201) (406) (220) O13) ADJUSTED REVENUE $1,002 $888 $2,8
Slide 37: Endnotes
(3) ENDNOTES ($ in M) NET INCOME (LOSS) ATTRIBUTABLE TO ROCKET COMPANIES Net Income (Loss) Impact From Pro Forma Conversion Of Class D Common Shares To Class A Common Shares (a) Adjustment to the (Provision For) Benefit From Income Tax (b) TAX-EFFECTED NET INCOME (LOSS) (B) Share-based Compensation
Slide 38: Endnotes
ENDNOTES 2. “Adjusted EBITDA Margin” calculated as Adjusted EBITDA divided by Adjusted Revenue. 3. We define "net client retention rate" as the number of clients that were active at the beginning of a period and which remain active at the end of the period, divided by the number of clients that were
Slide 39: Rocket Companies
©) ROCKET Companies