Slide 1: Q4 2023 Financial Results
Q4 2023 FINANCIAL RESULTS November 17, 2023 (all amounts are expressed in U.S. dollars, excluding per share amounts and unless otherwise stated)
Slide 2: Cautionary Note Regarding Forward-Looking Information
Cautionary Note Regarding Forward-Looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws. Words such as “aim”, “could”, “forecast”, “target”, “may”, “might”, “will”, “would”, “expect”, “anticipate”, “estimate”, “intend”,
Slide 3: Fiscal 2023 Highlights
Fiscal 2023 Highlights • Optimized network, platform and team • Permanently transformed our cost base – more efficient at scale • Building franchise value with key clients for the long term – positioned for accelerated results when market turns • Expanded channel penetration across all segments: 13
Slide 4: U.S. Mortgage Market at Historical Lows
U.S. Mortgage Market at Historical Lows Lowest mortgage origination volumes in 23 years F23 U.S. Mortgage Origination Volumes by Calendar Year Estimated (excludes default, REO and home equity loans) Market Purchase Refinance Avg 30yr mortgage rate Volume1 22.5 -53% YoY 8.0% 20.0 17.5 7.0% Number of
Slide 5: Q4 2023 Highlights
Q4 2023 Highlights U.S. Appraisal $42.2M • Net Revenue1 -7% QoQ, 27.5% margin (in the range of our F25 target) -8% QoQ • Adjusted EBITDA1 of -18% QoQ – reduced operating cost base by 30% YoY Consolidated Revenues • Launched I new lender, 1 new channel with Tier 1 lender U.S. Title $11.2M • Net Reven
Slide 6: Q4 2023 and Fiscal 2023 Financial Highlights
Q4 2023 and Fiscal 2023 Financial Highlights QoQ YoY YoY millions of U.S. dollars Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 F2023 F2022 Change Change Change Revenues U.S. Appraisal $31.2 $33.5 $28.0 $28.3 $43.9 -7% -29% $120.8 $250.9 -52% U.S. Title 2.3 2.6 2.2 2.4 4.0 -11% -41% 9.6 36.5 -74% Canada 8
Slide 7: Q4 2023 and Fiscal 2023 Non-GAAP Measures
Q4 2023 and Fiscal 2023 Non-GAAP Measures QoQ YoY YoY millions of U.S. dollars Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 F2023 F2022 Change Change Change 1 Net Revenue U.S. Appraisal $8.6 $9.2 $7.7 $7.6 $11.1 -7% -23% $33.1 $55.5 -40% 1 Net Revenue Margin 27.5% 27.5% 27.6% 27.0% 25.4% 27.4% 22.1% U.S.
Slide 8: Appendix A – Non-GAAP Measures
Appendix A – Non-GAAP Measures Net Revenue represents the difference between revenues and transaction costs. Net Revenue margin is calculated as Net Revenue divided by Revenues. The reconciling items between net income or loss and Net Revenue for the periods presented below were as follows: Quarter
Slide 9: Appendix A – Non-GAAP Measures
Appendix A – Non-GAAP Measures Adjusted EBITDA represents net income or loss before stock-based compensation expense, amortization, gain or loss on disposal of property and equipment, other non-operating costs, restructuring expenses, impairment of goodwill, interest expense, interest income, net fo