Real Matters, Inc. · TSX:REAL
Real Matters — Q4 2024 Earnings Presentation
9 slides from Real Matters's earnings presentation, Nov 21, 2024
Slide 1: Q4 2024 Financial Results
Q4 2024 FINANCIAL RESULTS November 21, 2024 (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 2024 Highlights
Fiscal 2024 Highlights • Continued to prudently manage costs throughout the year to align with variability in mortgage origination volumes – demonstrated how relative change in the rate environment can translate into improved margins and profitability. • Strong operating leverage: • Consolidated Net
Slide 4: Pent-Up Demand Continues to Build
Pent-Up Demand Continues to Build 8+ million mortgages above 6% U.S. Outstanding Mortgages by Interest Rate (thousands of loans) 60% of consumers plan to refinance in next 2 years2 17,660 35% 11,025 9,392 8,064 40% 22% 4,900 18% 16% of future buyers 10% plan to purchase a home when rates decline2 <3
Slide 5: Q4 2024 Highlights
Q4 2024 Highlights U.S. Appraisal • Revenues +8% YoY due to market share increases with our clients and higher addressable refinance $45.6M origination market volumes • Net Revenue1 +6% YoY and Net Revenue1 margin of 26.7% (within Target Operating Model range) +8% YoY • Adjusted EBITDA1 +4% YoY as h
Slide 6: Q4 2024 and Fiscal 2024 Financial Highlights
Q4 2024 and Fiscal 2024 Financial Highlights QoQ YoY YoY millions of U.S. dollars Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 F2024 F2023 Change Change Change Revenues U.S. Appraisal $33.8 $37.5 $32.6 $26.8 $31.2 -10% 8% $130.7 $120.8 8% U.S. Title 2.4 2.1 2.0 2.0 2.3 14% 4% 8.6 9.6 -9% Canada 9.4 9.9 7
Slide 7: Q4 2024 and Fiscal 2024 Non-GAAP Measures
Q4 2024 and Fiscal 2024 Non-GAAP Measures QoQ YoY YoY millions of U.S. dollars Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 F2024 F2023 Change Change Change 1 Net Revenue U.S. Appraisal $9.0 $10.3 $9.2 $7.5 $8.6 -13% 6% $36.1 $33.1 9% 1 Net Revenue Margin 26.7% 27.6% 28.3% 27.9% 27.5% 27.6% 27.4% U.S. Ti
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 present below were as follows: Quarter en
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, restructuring expenses, interest expense, interest income, net foreign exchange gain or loss, gain or loss on fair value of derivatives and income tax expense or recove