(all amounts are expressed in millions of U.S. dollars, excluding per share amounts and unless otherwise stated)
TORONTO, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Real Matters Inc. (TSX: REAL) ("Real Matters” or the "Company”), a leading network management services platform for the mortgage and insurance industries, today announced its financial results for the fourth quarter and fiscal year ended September 30, 2024.
"Consolidated revenue increased 8% year-over-year to $45.6 million in the fourth quarter, and we posted positive Adjusted EBITDA(A) of $0.6 million. U.S. Title Net Revenue(A) increased 30% sequentially on stronger market volumes and market share increases. This growth in Net Revenue(A) coupled with disciplined cost management allowed us to convert 100% of the increase to Adjusted EBITDA(A),” said Real Matters Chief Executive Officer Brian Lang. "We launched six lenders in the fourth quarter, three of which were new U.S. Title clients, including one Tier 2 lender. Increases in our market share with our clients continue to underpin our performance, offsetting some of the impact of variable mortgage market conditions.”
"Looking back at our fiscal 2024 performance, we delivered Adjusted EBITDA(A) of $1.9 million - a significant improvement from a loss of $2.4 million in fiscal 2023, as we continued to prudently manage our cost base throughout the year in line with the variability in mortgage origination volumes. We grew our market share with our clients across all three segments, launched a total of 16 clients and four new channels during the year, delivering consolidated revenue growth of 5% in a record-low market. Net Revenue(A) was up 8% from fiscal 2023 and we improved Net Revenue(A) margins in all three segments,” added Lang.
"Heading into fiscal 2025, we are optimistic about the potential for growth as pent-up demand continues to build. Today, there are eight million outstanding mortgages with interest rates above 6% which represents a significant pool of potential refinance candidates. According to our Future Plans of Homeowners Survey, 40% of future buyers plan to buy a primary home when rates decline. These tailwinds, coupled with our market leadership in appraisal and the significant potential for expanding our U.S. Title business, position us well for growth. We continue to maintain a readiness posture to flex the business based on market dynamics and lender positioning. As we drive more transaction volumes on our platform, we expect to expand our margins and profitability in line with our long-term operating model,” concluded Lang.
Q4 2024 Highlights
- Consolidated revenues of $45.6 million, up 8% year-over-year
- Consolidated Adjusted EBITDA(A) of $0.6 million and net loss of $0.2 million
- Year-over-year market share gains with 3 of our top U.S. Appraisal clients
- Year-over-year market share gains with Tier 1 lender and launched 3 new clients in U.S. Title
- Launched 3 new clients in Canada and one new channel
- Consolidated revenues of $172.7 million, up 5% year-over-year
- U.S. Appraisal Net Revenue(A) margin of 27.6% - in our target operating model range
- Positive consolidated Adjusted EBITDA of $1.9 million up from $(2.4) million in fiscal 2023
- Positive consolidated net income in fiscal 2024, up from a loss of $6.2 million in fiscal 2023
- Year-over-year market share gains in all three segments
- Launched 2 new lenders, 1 new channel in U.S. Appraisal
- Launched 7 new lenders and 1 new channel in U.S. Title
- Launched 7 new clients in Canada and 2 new channels in Canada
- Cash and cash equivalents of $49.1 million and no outstanding debt
Financial and Operational Summary
| Quarter ended | Year ended | % | ||||||||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | % Change1 | 2024 | 2023 | Change1 | ||||||||||||||||||||||
| Q4 | Q3 | Q2 | Q1 | Q4 | Quarter over Quarter | Year
over Year | September 30 | September
30 | Year over Year | |||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||
| Revenue | $ | 45.6 | $ | 49.5 | $ | 42.2 | $ | 35.4 | $ | 42.2 | -8 | % | 8 | % | $ | 172.7 | $ | 163.9 | 5 | % | ||||||||||
| Net Revenue(A) | $ | 12.0 | $ | 13.1 | $ | 11.5 | $ | 9.7 | $ | 11.2 | -9 | % | 8 | % | $ | 46.4 | $ | 43.0 | 8 | % | ||||||||||
| Adjusted EBITDA(A) | $ | 0.6 | $ | 1.7 | $ | 0.7 | $ | (1.1 | ) | $ | 0.6 | -66 | % | -6 | % | $ | 1.9 | $ | (2.4 | ) | 178 | % | ||||||||
| Net (loss) income | $ | (0.2 | ) | $ | 1.7 | $ | 2.1 | $ | (3.6 | ) | $ | 1.6 | -109 | % | -110 | % | $ | - | $ | (6.2 | ) | 100 | % | |||||||
| Net income (loss) per diluted share | $ | 0.00 | $ | 0.02 | $ | 0.03 | $ | (0.05 | ) | $ | 0.02 | -100 | % | -100 | % | $ | 0.00 | $ | (0.08 | ) | 100 | % | ||||||||
| Adjusted Net income (loss)(A) | $ | 0.9 | $ | 1.7 | $ | 1.3 | $ | (1.2 | ) | $ | 0.8 | -45 | % | 13 | % | $ | 2.7 | $ | (2.2 | ) | 223 | % | ||||||||
| Adjusted Net income (loss)(A) per diluted share | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | (0.02 | ) | $ | 0.01 | -50 | % | 0 | % | $ | 0.04 | $ | (0.03 | ) | 233 | % | ||||||||
| U.S. Appraisal segment | ||||||||||||||||||||||||||||||
| Revenue | $ | 33.8 | $ | 37.5 | $ | 32.6 | $ | 26.8 | $ | 31.2 | -10 | % | 8 | % | $ | 130.7 | $ | 120.8 | 8 | % | ||||||||||
| Net Revenue(A) | $ | 9.0 | $ | 10.3 | $ | 9.2 | $ | 7.5 | $ | 8.6 | -13 | % | 6 | % | $ | 36.1 | $ | 33.1 | 9 | % | ||||||||||
| Net Revenue(A) margin | 26.7 | % | 27.6 | % | 28.3 | % | 27.9 | % | 27.5 | % | 27.6 | % | 27.4 | % | ||||||||||||||||
| Adjusted EBITDA(A) | $ | 4.1 | $ | 5.5 | $ | 4.4 | $ | 2.7 | $ | 3.9 | -26 | % | 4 | % | $ | 16.7 | $ | 14.1 | 18 | % | ||||||||||
| Adjusted EBITDA(A) margin | 45.2 | % | 53.2 | % | 47.9 | % | 35.8 | % | 46.0 | % | 46.2 | % | 42.8 | % | ||||||||||||||||
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