(all amounts are expressed in millions of U.S. dollars, excluding per share amounts and unless otherwise stated)
TORONTO, Jan. 30, 2025 (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 first quarter ended December 31, 2024.
"We reported consolidated revenue of $41.0 million in the first quarter, up 16% year-over-year, and consolidated Net Revenue(A) increased 12% led by growth in all three segments. Refinance origination volumes in our U.S. Title segment were up 46% year-over-year and Net Revenue(A) margins increased by 610 basis points,” said Real Matters Chief Executive Officer Brian Lang.
"There are now 8.8 million outstanding mortgages with interest rates above 6%, which represents a sizeable pool of potential refinance candidates. We are encouraged by the market opportunity we saw as a result of a short-term rally in rates in September - adding to our conviction of the market potential for refinance going forward. As a result, we are seeing broad pipeline movement; we are confident that we will have new, active franchise title clients in the coming months,” added Lang.
"We have a strong balance sheet, and we will continue to prudently manage our cost base to align with market conditions, ensuring we focus on growth as headwinds turn to tailwinds for our business. We are at a key inflection point for our title business,” concluded Lang.
Q1 2025 Highlights
- Consolidated revenue of $41.0 million -16% year-over-year increase
- Consolidated Net Revenue(A) of $10.9 million - 12% year-over-year increase
- Adjusted EBITDA(A) loss of $1.7 million compared with loss of $1.1 million in Q1'24
- Net income of $2.3 million up from net loss of $3.6 million in Q1'24
- Launched five new clients
- Significant operating leverage in Canadian segment - converted 90% of the incremental Net Revenue(A) to Adjusted EBITDA(A) in Q1'25
- Cash and cash equivalents of $49.0 million and no outstanding debt as at December 31, 2024
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| 2025 | 2024 | 2024 | 2024 | 2024 | % Change1 | |||||||||||||||
| Q1 | Q4 | Q3 | Q2 | Q1 | Quarter
over Quarter | Year over Year | ||||||||||||||
| Consolidated | ||||||||||||||||||||
| Revenue | $ | 41.0 | $ | 45.6 | $ | 49.5 | $ | 42.2 | $ | 35.4 | -10 | % | 16 | % | ||||||
| Net Revenue(A) | $ | 10.9 | $ | 12.0 | $ | 13.1 | $ | 11.5 | $ | 9.7 | -10 | % | 12 | % | ||||||
| Adjusted EBITDA(A) | $ | (1.7 | ) | $ | 0.6 | $ | 1.7 | $ | 0.7 | $ | (1.1 | ) | -395 | % | -54 | % | ||||
| Net income (loss) | $ | 2.3 | $ | (0.2 | ) | $ | 1.7 | $ | 2.1 | $ | (3.6 | ) | 1,562 | % | 163 | % | ||||
| Net income (loss) per diluted share | $ | 0.03 | $ | 0.00 | $ | 0.02 | $ | 0.03 | $ | (0.05 | ) | 0 | % | 160 | % | |||||
| Adjusted Net (loss) income(A) | $ | (0.3 | ) | $ | 0.9 | $ | 1.7 | $ | 1.3 | $ | (1.2 | ) | -129 | % | 75 | % | ||||
| Adjusted Net (loss) income(A) per diluted share | $ | 0.00 | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | (0.02 | ) | -100 | % | 100 | % | |||||
| U.S. Appraisal segment | ||||||||||||||||||||
| Revenue | $ | 29.4 | $ | 33.8 | $ | 37.5 | $ | 32.6 | $ | 26.8 | -13 | % | 9 | % | ||||||
| Net Revenue(A) | $ | 7.8 | $ | 9.0 | $ | 10.3 | $ | 9.2 | $ | 7.5 | -14 | % | 4 | % | ||||||
| Net Revenue(A) margin | 26.5 | % | 26.7 | % | 27.6 | % | 28.3 | % | 27.9 | % | ||||||||||
| Adjusted EBITDA(A) | $ | 2.4 | $ | 4.1 | $ | 5.5 | $ | 4.4 | $ | 2.7 | -41 | % | -10 | % | ||||||
| Adjusted EBITDA(A) margin | 30.9 | % | 45.2 | % | 53.2 | % | 47.9 | % | 35.8 | % | ||||||||||
| U.S. Title segment | ||||||||||||||||||||
| Revenue | $ | 2.5 | $ | 2.4 | $ | 2.1 | $ | 2.0 | $ | 2.0 | 4 | % | 25 | % | ||||||
| Net Revenue(A) | $ | 1.4 | 1.2 | $ | 0.9 | 0.9 | $ | 1.0 | 12 | % | 41 | % | ||||||||
| Net Revenue(A) margin | 53.4 | % | 49.8 | % | 43.6 | % | 44.0 | % | 47.3 | % | ||||||||||
| Adjusted EBITDA(A) | $ | (1.8 | ) | $ | (1.6 | ) | $ | (1.9 | ) | $ | (1.7 | ) | $ | (1.6 | ) | -13 | % | -11 | % | |
| Adjusted EBITDA(A) margin | -132.3 | % | -131.4 | % | -209.8 | % | -184.8 | % | -167.9 | % | ||||||||||
| Canadian segment | ||||||||||||||||||||
| Revenue | $ | 9.1 | $ | 9.4 | $ | 9.9 | $ | 7.6 | $ | 6.6 | -3 | % | 38 | % | ||||||
| Net Revenue(A) | $ | 1.7 | $ | 1.8 | $ | 1.9 | $ | 1.4 | $ | 1.2 | -3 | % | 39 | % | ||||||
| Net Revenue(A) margin | 18.9 | % | 18.9 | % | 19.0 | % | 18.9 | % | 18.8 | % | ||||||||||
| Adjusted EBITDA(A) | $ | 1.1 | $ | 1.2 | $ | 1.3 | $ | 0.9 | $ | 0.7 | -5 | % | 62 | % | ||||||
| Adjusted EBITDA(A) margin | 66.1 | % | 67.7 | % | 69.3 | % | 62.3 | % | 56.8 | % | ||||||||||
| Corporate segment | ||||||||||||||||||||
| Adjusted EBITDA(A) | $ | (3.4 | ) | $ | (3.1 | ) | $ | (3.2 | ) | $ | (2.9 | ) | $ | (2.9 | ) | -8 | % | -20 | % | |
- Percentage change is calculated based on figures disclosed in our MD&A which are rounded to the nearest thousands of dollars.
A conference call to review the results will take place at 10:00 a.m. (ET) on Thursday, January 30, 2025, hosted by Chief Executive Officer Brian Lang and Chief Financial Officer Rodrigo Pinto. An accompanying slide presentation will be posted to the Investor section of our website shortly before the call.
To access the call:
- Participant Local (Toronto): (289) 819-1520
- Participant Toll Free Dial-In Number: 1-800-549-8228
- Conference ID: 15714
(A) Non-GAAP Measures
The non-GAAP measures used in this news release, including Net Revenue, Adjusted EBITDA and Adjusted Net Income do not have a standardized meaning prescribed by IFRS® Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-GAAP measures are more fully defined and discussed in the Company's MD&A for the three months ended December 31, 2024 under the heading "Non-GAAP measures”, which is incorporated by reference in this Press Release and available on SEDAR+ at www.sedarplus.ca.
Real Matters financial results for the three months ended December 31, 2024 are included in the unaudited interim condensed consolidated financial statements and the accompanying MD&A, each of which are available on SEDAR+ at www.sedarplus.ca. In addition, supplemental information is available on our website at www.realmatters.com.
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 were as follows:
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