Financial report details challenges through 2022
Rocket Companies has released its figures for the first quarter of 2023, reporting a net loss of $411 million in the backdrop of economic and market uncertainty.
The group generated a revenue of $666 million but logged a net loss of $411 million in Q1, compared to $1.03 billion in the same period last year.
Despite the loss, Rocket CEO Jay Farner was optimistic about the company's "solid results" in the first quarter. "Adjusted revenue exceeded the top end of our guidance, driven by healthy client demand and strong execution," he said in the lender's latest financial report. "Our purchase pipeline has been growing in the second quarter, but constrained housing inventory and affordability still present challenges."
Rocket Mortgage posted $17 billion in closed origination loan volume. Gain on sale margin was 2.39%. The company's total liquidity was $8.1 billion, including $0.9 billion cash-on-hand, $2.4 billion of corporate cash used to self-fund loan originations, $3.1 billion of undrawn lines of credit, and $1.7 billion of undrawn MSR lines.
Its direct-to-consumer segment saw a net revenue of $495 million in Q1, down from $1.49 billion in Q1 2022. Rocket's partner network, which includes its mortgage broker partnerships through Rocket Pro TPO, generated a net revenue of $91 million, down from $292 million.
"To help our clients in this market, we recently launched BUY+ and SELL+, a collaboration between Rocket Homes and Rocket Mortgage, and unveiled our new Rocket Visa Signature Credit Card, a loyalty program card," Farner said. "These initiatives, along with Rocket Rewards, provide our clients with tangible value and an experience that can only be realized through Rocket. We believe our ability to provide a superior, differentiated client value proposition will drive growth in our purchase market share, revenue and profitability."
Rocket said it expects adjusted revenue of between $850 million to $1 billion in the second quarter.
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