Rocket Companies, Inc. · NYSE:RKT
Rocket Companies — Q1 2023 Earnings Presentation
44 slides from Rocket Companies's earnings presentation, May 4, 2023
Slide 1: Rocket Companies Investor Presentation
Rocket Companies Investor Presentation June 2023 ROCKET Companies
Slide 2: Disclaimer
~~ ROCKET 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 (t
Slide 3: Starting With A Simple Idea...
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 internet
Slide 4: Building a Technology Giant
Companies @e ROCKET Building a Technology ROCKET ° Mortgage G la nt You're pre-approved fora loan up to °456,000 27.6M Rocket Max. loan amount $456,000 Year Accounts! Operating Home price $300,000 . History Down payment $60,000 77 Est. mortgage payment $1,998 Transaction Net 2 Promoter Volume Since
Slide 5: Creating Certainty in Life's Complex Moments
Home = —=éersonal ROCKET Financing inane Partners . 7 PRODUCTS Creating Certainty in Life’sComplex <2 M ome nts “ PILLARS OF THE : y PLATFORM 4
Slide 6: Investment Highlights
Investment Highlights The Rocket platform was built to transform complex transactions, driving long-term profitable growth at scale. ROCKET ‘Companies 1 Massive, Fragmented Markets 2 Superior Client Experience I 3 Platform Advantage / 4 Trusted, Digital-First Brand / 5 | Multiple Avenues of Growth P
Slide 7: Massive, Fragmented Markets
ROCKET ‘Companies
Slide 8: Massive Market Opportunity
Massive Market Opportunity Rocket competes in some of the largest, most complex segments of the economy: Mortgage Real Estate Financial Services 20% of U.S. GDP $5TN TAM ROCKET ‘Companies
Slide 9: Buying a home is the most stressful event
ROCKET Companies Many Americans, about 40%, say buying a new home is the most stressful event in modern life. 9B - HOUSINGWIRE
Slide 10: Home Ownership Priorities are Accelerating
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. ROCKET Companies 759 Of clients using our online platform are first- time homeowners or Mill
Slide 11: Strong Client Base Unlocks Platform Potential
ROCKET ‘Companies Strong Client Base Unlocks Platform Potential 90%+ Retention drives substantial lifetime value advantages, with repeat transaction opportunities over the client's life. 27.6m Rocket Accounts 2.5m Client Loans Serviced Net Client Retention Rate™ 90%+ ey Delivering personalized exper
Slide 12: Rocket is Positioned to Lead Our Industries
Rocket is Positioned to Lead Our Industries 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. 50% 40% 30% 20% 10% 0% ROCKET Companies MAR
Slide 13: Long-Term Mortgage Market Share Gains
ROCKET Companies Long-Term Mortgage Market Share Gains Both purchase and refinance market share grew individually in 20221 7.8% 7.9% Total market share in 2022 impacted by the dramatic mix shift from refinance to purchase 1.6% $57 $28 $29 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 14: Superior Client Experience
Slide 15: At Every Step of the Homebuying Journey
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 point
Slide 16: Superior Client Experience
Superior Client Experience ROCKET ‘Companies In complex transactions where the legacy experience can be confusing and discouraging, Rocket provides simple, fast, and trusted digital solutions. TRADITIONAL INDUSTRY EXPERIENCE Transactional Confusing Time-Consuming Uncertain ROCKET Mortgage (998) 452-
Slide 17: Digital-first, personalized experience
~~ ROCKET Digital-first, personalized experience ROCKET Rocket's proprietary technology Rn raee Mortgage delivers a seamless digital You're pre-approved experience for our clients. fora loan up to °456,000 Got it! That covers the basics. Now, let's talk numbers. Home price $300,000 Download your let
Slide 18: Extending Client Lifetime Value
Extending Client Lifetime Value Illustrative Client Lifetime Value Before Client Are Ready $13,500 $3,000 $1,500 $$$ $18,000+ To Transact 450 bps $300K mortgage’ “f —‘1%realestateagentcommission - — Appraisal, closing, title _ 0 Repeda ROCKET ROCKET Rete ROCKET BOCK AMROCK Transactions Companies Oth
Slide 19: Platform Advantage
3 Platform .. i! Advantage ° ONE 19
Slide 20: Rocket's Client Engagement Program
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. ‘NX de ROCKET Money Home Buying Plan = ROCKET Your Next Home housand miles begs wth Buy a home for about $350,000 in December 2
Slide 21: Client Engagement Program Objectives
Client Engagement Program Objectives We are focused on expanding our top of funnel, lifting conversion and lowering our client acquisition cost, with the ultimate goal of growing our purchase market share and extending client lifetime value. y Ev as Grow Top Of Funnel & Lift Lower Client Activate La
Slide 22: Rocket Money and Rocket Signature Visa Card
ROCKET Companies Rocket Money and Rocket Signature Visa Card: Driving Deeper Client Engagement ROCKET Helping Consumers Manage Their Entire Financial Lives lioney #1 $100B+ "en ” $220.89 Consumer Tech Transaction Volume Company! ~ | | | | 1 Analyzed/Month? " ™ ao poy » . = - a tsi. ane . S . = ” ° A
Slide 23: Rocket Rewards: Fostering Client Loyalty
ROCKET Rocket Rewards: Fostering Client Loyalty compenies Rocket Rewards helps clients achieve their financial goals while continuing to drive value and brand loyalty for Rocket. e ROCKET * Accrue Reward Points D veciet Reonards © Rocket Rewards across a range of MyRewards Activities History > activ
Slide 24: Powered by Proprietary Technology Stack
ROCKET ‘Companies Powered by Proprietary Technology Stack Proprietary technology developed in-house that drives DIGITAL POINT-OF-SALE our entire operating process. Continuous Operational Efficiency Gains PARTNER API PLATFORM Digital Software- Client Client Driven Servicing & Acquisition Workflows Re
Slide 25: Trusted Digital-First Brand
Slide 26: Primary Mortgage Origination and Servicing
PRIMARY MORTGAGE PRIMARY SERVICING MORTGAGE ORIGINATION
Slide 27: With National Brand Recognition
ROCKET ‘Companies 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. #1 Most Differentiated Brand in Mortgage! Rocket's 2022 Super Bowl a
Slide 28: Multiple Drivers of Growth
Slide 29: Multiple Drivers of Growth
ROCKET Companies Multiple Drivers of Growth PARTNER NETWORK + Extending brand and technology to partners Current Mortgage Info + Adding new partners * Increasing share with DIRECT-TO-CONSUMER existing partners * Investing in brand and client acquisition * Growing digital adoption : POWERED BY ROCKET
Slide 30: The Rocket Flywheel
ROCKET ‘Companies The Rocket Flywheel The core of our economic flywheel is that we are constantly reinvesting in the business, further strengthening our Proven competitive position. Scalability Large Client Base Track Record of Efficiency Leveraging Data Lake Unique Client Experience Home Buying Eco
Slide 31: Proven Leadership and Culture
os Ae - 6) proven (Ui " Leadership and Culture 3 WORK HARD, PLAY HARD, a4
Slide 32: Proven Leadership Team
Proven Leadership Team ROCKET ‘Companies Proven track record over 3 decades Current leadership team has been with organization more than 2 decades on average Robust pipeline of talent to continue to grow business 32
Slide 33: Rocket Companies Leadership
Rocket Companies Leadership TIM BIRKMEIER President Rocket Mortgage 27 Years NICOLE BEATTIE CEO Amrock 19 Years BILL EMERSON Interim CEO Rocket Companies 30 Years TINA JOHN General Counsel Rocket Companies 3 Years DOUG SEABOLT CEO Rocket Homes 15 Years ROCKET Companies BOB WALTERS BRIAN BROWN Presid
Slide 34: Culture is Our Foundation
Culture is Our Foundation ROCKET Companies Dan Gilbert, our founder and Chairman, purposefully created a strong cultural foundation of core principles, or “ISMs”, as a cultural operating system to guide decision-making by Innovation is rewarded. all our team members. Execution is worshipped. Obsesse
Slide 35: Love Our Team Members
Love Our Team Members ROCKET Companies Our team members put the ISMs into action every day. The result is an empowered and passionate team aligned in a common mission. ESSENCE Forbes Forbes FORTUNE FORTUNE e 2 e e #1 Best The Best Best #3 America’s Best Companies #6 Best Large 100 Best Workplace for
Slide 36: For More Than Profit
For More Than Profit Our company and community are inextricably linked, serving as the foundation for our community investment, team member development and business growth strategies. 2021 Environmental, Social And Governance Report ROCKET Companies Inaugural ESG report published June 2022 Note: Roc
Slide 37: Appendix
Slide 38: Our Companies
Our Companies HOME SEARCH & SALES ROCKET Seamless, fully-integrated home Homes buying and selling experience via real estate agent network and home search site. ANS Empowering sellers and FOR SALE BYOWNER buyers with the resources they need to sell or buy properties directly. je ees HOME FINANCING R
Slide 39: Financial Highlights
Financial Highlights (Sin M) Adjusted Revenue YoY % Q0Q % Adjusted EBITDA % Margin Adjusted Net Income (Loss) % Margin Closed Loan Volume YoY % Q0Q % Net Rate Lock Volume YoY % QoQ % Gain on Sale Margin 2021 $12,427 (27%) N/A $6,200 50% $4,502 36% $351,193 10% N/A $333,790 (1%) N/A 3.13% 2022 $4,628
Slide 40: Endnotes: Adjusted EBITDA reconciliation
Endnotes Adjusted EBITDA reconciliation ($ amounts in millions) Net (loss) income Interest and amortization expense on non-funding debt Income tax (benefit) provision Depreciation and amortization Share-based compensation expense (a) Change in fair value of MSRs due to valuation assumptions (net of
Slide 41: Adjusted Revenue Reconciliation
— 1. Three Months Ended March 31, Year Ended December 31, 2023 2022 2022 2021 Adjusted Revenue Reconciliation ($ amounts in millions) (Unaudited) (Unaudited) Total Revenue, net $666 $2,671 $5,838 $12,914 Change in fair value of MSRs due to valuation assumptions (net of hedges) (a) 216 (739) 1,211) (
Slide 42: Adjusted Net Income Reconciliation
a ROCKET Endnotes Companies Three Months Ended March 31, Year Ended December 31, 2023 2022 2022 2021 (Unaudited) (Unaudited) Adjusted Net (Loss) Income Reconciliation ($ amounts in millions) Net (loss) income attributable to Rocket Companies $19) $54 $46 $308 Net (loss) income impact from pro forma
Slide 43: Endnotes
~~ ROCKET 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
Slide 44: ROCKET
ROCKET Companies