Loandepot, Inc. · NYSE:LDI
Loandepot — Q4 2021 Earnings Presentation
22 slides from Loandepot's earnings presentation, Feb 1, 2022
Slide 1: 4Q 2021 Investor Presentation
4Q 2021 INVESTOR PRESENTATION February 1, 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 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 Founder & CEO-led 12 Year Old Company Industry Leading Growth Origination CAGR of 40% vs. 23% for Industry(1) Room to Run 3.4% Market Share with Strong Growth Outlook(2) Purchase Strength 34% Purchase Composition(3) Purpose-Buil
Slide 6: A Scaled Platform Poised for Continued Growth
A SCALED PLATFORM POISED FOR CONTINUED GROWTH ✓ Founder-led, tech-empowered platform with relentless focus on the customer $29bn 49% Q4’21 Origination 2010 – 2021 ✓ #2 Retail-focused non-bank U.S. mortgage originator (1) Volume Origination CAGR(2) ✓ Grown to scale through two interconnected strategi
Slide 7: Founder Led Management Team with Unique Skillsets
FOUNDER LED MANAGEMENT TEAM WITH UNIQUE SKILLSETS ANTHONY HSIEH PATRICK JEFF WALSH GEORGE BRADY JOHN LEE TJ FREEBORN Founder, Chairman & FLANAGAN Chief Revenue Chief Digital Officer Chief Analytics Chief Administrative CEO Chief Financial Officer 30+ Years Experience Officer Officer 30+ Years Experi
Slide 8: Well-Defined Strategies for Profitable Growth That Leverage Our Unique Advantages
WELL-DEFINED STRATEGIES FOR PROFITABLE GROWTH THAT LEVERAGE OUR UNIQUE ADVANTAGES Expand the Funnel Leverage Our Brand Leverage Local Presence to Grow in All Market Environments Extend Data Analytics Increasing Retention Advantage and Lifetime Value 8
Slide 9: Contemporary 11 Year Old Company Invested for the Future
CONTEMPORARY 11 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 reach through acquisitions •
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 +1,650 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 Advantage Enterprise Lead Management 1.6x Increase in 5% Faster Speed to Servicing & Conversion(1) Funding Customer Portal cycle
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) ✓ Optimizing Digital Lead • Digital Leads Sources 10.6 10.6 ✓ Growing Brand Recogni
Slide 14: Vast Media Presence Interacts with Millions of Customers Daily
VAST MEDIA PRESENCE INTERACTS WITH MILLIONS OF CUSTOMERS DAILY TV & Digital Media Impressions, in billions 1.7 0.8 2020 2021 Social Media +17% Growth in Engagement from 2020 to 2021 Web 19.1mm +51% site visits in YoY growth in daily website 2021 users from 2020 MLB Partnership 795m impressions since
Slide 15: Outsized Originations Growth Relative to Industry
OUTSIZED ORIGINATIONS GROWTH RELATIVE TO INDUSTRY 2017-2021 Origination CAGR 40% Industry(1) 23% Total Market 2.5% 2.1% 2.4% 2.8% 3.8% 3.3% 3.4% 3.3% Share (%) : ($ in billions) 500 447 $80 450 $70 372 369 400 $60 346 299 350 270 281 264 $50 300 $40 250 200 $30 150 $20 100 $10 50 $18 $15 $25 $21 $36
Slide 16: Historical Cost Structure Comparison
HISTORICAL COST STRUCTURE COMPARISON Technology and brand investments have improved our expense structure and will continue to reduce costs on an ongoing basis Historical expenses in bps of funded mortgage volume Total Revenue (bps funded 362 bps 338 bps 295 bps 428 bps 272 bps volume): 369 bps Othe
Slide 17: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) $180 136 140 128 126 123 $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 $- - Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 UPB $ MSR FV, bps Recapture %(1) : 70% 64% 54% 66% 72% 78% 68
Slide 18: Delivering Customers a Complete Solution
DELIVERING CUSTOMERS A COMPLETE SOLUTION Ancillary businesses contributed $37m in revenue in Q4, and we expect them to become a more meaningful contributor to net income as they mature(1) Real Estate Title Insurance Mortgage Home Lending Improvement Escrow (Coming Soon) Services Homeowners Leads rou
Slide 19: Q1 2022 Outlook
Q1 2022 OUTLOOK Q1 2022 Guidance High Current Market Metric Low Conditions • Higher interest rates resulting in lower refinance transaction volumes Pull-through Weighted $ 19 $ 29 • Continuing strong demand for purchase Rate Lock Volume ($bn) transactions, which is somewhat adversely impacted by sup
Slide 20: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 4Q’21A 3Q’21A 4Q’20A YTD’21 YTD’20 Adjusted Revenue Total Net Revenue $ 705.0 $ 923.8 $ 1,298.4 $ 3,724.7 $ 4,312.2 Change in FV of Servicing Rights, Net of Hedge 18.6 25.0 (45.6) 14.5 (58.9) Adjusted Total Revenue $ 723.6 $ 948.8 $ 1,252.8 $ 3,739.2 $ 4,253.3
Slide 21: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 4Q’21 vs 4Q’21 vs $ in MM except units and % 4Q’21A 3Q’21A 4Q’20A 3Q’21 4Q’20 Cash and cash equivalents $ 419.6 $ 506.6 $ 284.2 (17.2%) 47.6% Loans held for sale, at fair value 8,136.8 8,873.7 6,955.4 (8.3) 17.0 Servicing rights, at fair value 2,006.7 1
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