CLGX - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the CoreLogic First Quarter 2018 Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Dan Smith of Investor Relations. ahead. go Please

Dan L. Smith

on We all apologies our for Hi. some the technical start. had morning. AV late To call, difficulties this

ready now. to we're So go

and of our again, morning. our call financial once sorry the the present Thank So first for quarter for where we Welcome presentation investor you, to results and XXXX. conference delay. good

and Balas. Speaking be President CoreLogic's Jim today and CFO, will CEO, Frank Martell;

let me make points. begin, important we Before few a

website. financial presentation, slide which additional results our on our our posted we First, details includes on

that presentation, statements Federal operational today's make expected and statements note expectations and may please the Second, growth and of within during our acquisition regarding Securities forward-looking we plans, outlook, business the concerning and industry meaning strategies, performance conditions. including Laws, our

risks differ could actual All of these from statements materially are the unknown uncertainties results cause and subject forward-looking to described and to in those statements. that known

uncertainties, XX-Qs. concerning filings, the on details subsequent risks including these most further Form recent the SEC For refer Report Annual and to our and XX-K please

on for Our statements we no these forward-looking update statements are duty to and information currently not intend do to reason. undertake and any us, available based

first appendix specifically Additionally, basis. equivalents these quarter reconciliation is included today's their non-GAAP to of year-over-year That prior understood are contains quarter GAAP measures the financial identified, XXXX. Unless in periods to comparisons the to financial of of a measures. results measures in presentation. financial today's non-GAAP reference be on presentation A is that first to should

follow-up. please limit one Finally, a to with yourself question brief

and Martell. now, call time additional We permits. at the Frank Thanks. questions And President me our will let as the of end introduce take CEO,

Frank D. Martell

trends. off The Q&A quarter with positive a my on will guidance to off Good and XXXX, summarize provide today start U.S. thanking first notable highlights, recap In morning, drop financial the call profit generated market an everyone. call quarter point our to Jim comments quarter, growth session. support. unit mortgage employees, first very want earnings I'm up call. our today going the shareholders a top-line from with operationally team and both Dan. lead mix, and by financial including We'll Thank results estimated strong of in updates. operating margins, CoreLogic today a wrap revenue Welcome to our you, a prepared we first I continued the remarks of view. our despite delivered their XX% volumes. and clients, for start CoreLogic's in

margins mix, In addition, leverage. we adjusted and product productivity, EBITDA significantly increased operating driving our by

range. generated levels we target Finally, XX% XX% flow cash to above our

clients invest that quarter, building continue ecosystem. aggressively Importantly, real and estate the solutions during the provide market-leading insights in connect to totality we our with the unique of

drive on as be Our to quality monitoring transform enhance we some well for a and cases, scale our positions to partner clients innovation, superior long-term solutions. as high valuation, in as and, us and underwriting service and property strategic management, impact focus levels, risk

As durability past on quarter the business resiliency model. I I and believe and the first takeaways increasing of year significant one now is the said our more call, for the from our last of

latest lower allowed the unit down-cycles program transformation of our where both the profits we market reduce and revenues and our five-plus U.S. over example are quarter Our market past of strategic despite impact to successful U.S. of The results first years execution consistent volumes. has the volumes. progressively progress and mortgage grew us mortgage

business evolution ahead, and expanded our will of further from and must-have In and we've scale model. mix non-mortgage revenue the continue shift to I of additional solutions, the quarters into realized years towards cost the in realize we believe continued Specifically, benefits a driven productivity. adjacencies, positive our benefits

solid Management, units, $X quarter. mid- insurance notable account Property & & our PIRM, total we enhanced Other to benefited of valuations, business expansion growth first well valuation-related platform UWS, revenue in Risk delivered in in as overall strong from unit insurance new regard our in segments, revenues to our and and With million underwriting-related one-third our as for included our are first of data-driven growth spatial of the Intelligence highlights solutions Property Both or solutions to and operations. or quarter and upper-single-digit international adjustments, revenue Solutions, million spatial Underwriting During about XXXX. were units data-driven solutions. international volumes operating our platform Workflow revenues and quarter, higher-margin Intelligence up $XXX & growth expected and in the as the solutions to price &

on we call, CoreLogic mentioned more and we're revenues. over analytics, of I combination valuation XX% synergies and total this Achieving operating of operating and solutions this our well couple next to a eTech as through the progress provide expand organic the of operation, of should recent upsides earnings our business very to solid revenues broadly mode. company. from other data, and revenue our As To significant across target financial areas end, years, to and valuations collateral last targeting are platforms Solutions a acquisitions la making as growth, with strong

professionals a the la mode April, the transaction la completed was mode in is software U.S. of to a than XX,XXX provider a more announced, separately solutions across subscription-based appraiser leading As

facilitate a appraisals. in the the completion for and GSE for standard desktop modes' U.S. appraisers, of a software photographs workflow aggregation format compliant data, imagery As gold platforms of the la solution residential

we gathering our businesses During enterprise leverage data continue our and to capabilities, QX, operational enhance strengthen evaluation repository. data to

very the we appraisal-related potential plan, strategic solutions transform to and of to automation offer that technology real are also the on revenues assets integrated in estate and way executing We and line the tools focused building To our unique valued. plans. which diversify with on our discussion introduced out well are continue valuations, close

be opportunity a the to the long-term and a in significant said we will As CoreLogic. multiyear past, opportunity endeavor transform represents valuation potentially for space the

and are Favorable trends year, EBITDA XXXX were profitability, integrated rose and and organization, XXX points. the early last CoreLogic. and of focus our XX% up over terms operating driving margins mix Compared operating In leverage, capabilities, adjusted quarter on automation, years of XX%. operating optimizing efficient in jumped across margin the revenue almost XXXX our EBITDA with first and income past several adjusted and basis building productivity around core result an

Looking XX% by we're at progress good million of XXXX cost adjusted EBITDA generated ahead, our management work expected $XX have context, by achieving be goal organization program to rate making by will simplifying that we which In our automating year. savings least run These lower announced pleased complexity is reducing previously margins report set this XXXX. and a I'm to primarily and costs processes. this on

this make in investments XXXX our enhance to XXXX to additional certain earlier year, As operational, plan technology accelerate also targeted and and announced automation. we workflow significantly capabilities

will these believe time investments these expected While exit benefit are and cycle XXXX result costs financial quality results, plus substantial in to benefits, we lower XXXX. run not we programs as rate

cash repurchases. later, continue flow growth, and through of high strong drive invest shareholders ability free long-term to to to management. free flow discuss we share growth, mix, will successfully favorable profitable has in higher enabled margins, us our to cash to return deliver rates capital continuing consistently to Jim As top-line working capital CoreLogic's while future

form our seven our portion shares returned Since As free our common the XXXX, of past significant repurchased we've shareholders stock investors the in XX for years, know, $X.X cash buybacks. million we've of billion. approximately long-term flow to over of a

U.S., our shares. to beyond plan and excited repurchasing XXXX We and sum to are CoreLogic's head up, strong of purchase-driven the believe of benefits on this X% we outstanding another where growing must-have a poised we're by X% by year, XXXX, in course unique the deliver to balance we To the the start our into it and a well-positioned solutions plans capitalize to success. Over in cycle pursue we of off on leverage. build strategic operating future offered prospects the of that mortgage

Thanks In joining our opportunities in & markets spatial Jim provide addition, for noncyclical the of our for now over us I'll sizable results. the footprint turn expanding discussion high-margin growth. financial solutions international today. to and call insurance a call for with

James L. Balas

our XXXX and on I'm outlook. second and and Thanks, good views morning, discuss quarter return capital to Frank, Today, our results our everyone. then financial first outline going quarter

CoreLogic and revenue outperformed of first higher-margin our From proportion technology As basis expectations. mix free highlights common very ends points, market productivity; despite strong non-U.S. and of financial strong greater the cost three, XXX,XXX EBITDA a Frank margin growth, perspective, subscription, improved fourth, quarter. market headwinds; our mentioned, in volumes of high quarter growth and results revenues; adjusted shares. approximately financial generation operating and of one, included: the a of performance first flow; finally, repurchase of cash reflecting business revenue and market mix, business exceeded Notable significant financial driven delivered mortgage-based XXX a two, expansion the by

in U.S. well impact in XXXX. same PIRM million the $XX related was growth principally and XXXX. revenues as the $XXX driven were for Operating approximate completed two operations million property acquisition unit rose Mercury diversification benefits international offset million, and XX% income largely volumes totaled of continuing the an XXXX mortgage with vendor by organic in by appraisal million totaled from operations, decline $XXX clients. in $XXX levels X% the and insights, $XX growth quarter income business million year-over-year from productivity mix with compared growth to in and compared Network including revenues First $XXX cost million, XXXX quarter to in attributable UWS organic XXXX as XX% period. acquisitions down operating first favorable revenue X% A & as gains. increase management from of segment insurance spatial solutions-related revenues

approximately income margin XXX basis First XX%. to up quarter was operating points

and operations primarily previously, attributable million tax a compared which and quarter increase the continuing The net income than same net the First expense amortization. $XX higher benefit upsides with totaled period. offset to prior-year current interest more quarter, million was along from with operating $XX in in depreciation discussed

in revenue million quarter prior XXXX. principally XX% EBITDA in approximately EBITDA quarter segment continuing $X.XX growth, diluted million. cost million. The by period. XX% up XXX $X.XX, the PIRM compared basis business up quarter $XX to was Adjusted totaled EBITDA and EBITDA margin increased segment $XXX XX% $XX in first first million was operations adjusted $X.XX productivity. improved with Adjusted the in adjusted to to in increased compared First $XX EPS the from mix Adjusted year. the increase totaled XX%. $X.XX with adjusted UWS driven points EBITDA from EPS totaled prior-year diluted same of

margins EBITDA over segments points In adjusted by UWS prior increased more addition, each both PIRM the basis XXX than year. the and

quarter XXXX. levels Finally, we flow continue the free cash strong very through generate of to first of

a XX prepared cash million, of repurchase of the we through or our outstanding regarding and our our of investors free cash financial In shares flow last X.X return on ending million. XXXX EBITDA. adjusted March updates our my XXXX, returned guidance. I of free totaled months for today discussion close flow remarks $XXX the million For to with a XX% X% $XXX XX% conversion capital will rate XX, months XX

of shares During another year, the total million. repurchased first this of quarter we $XX.X XXX,XXX for a

for enabled to value owners Frank our earlier, cash CoreLogic's source approach invest to returning capital flow of As has mentioned amounts we it us has long-term future significant so while growth, in via creation strong remain proven share free significant expect the repurchases. This for and a be of to future.

to our outlook for volumes, the market of of XXXX, strong of second our normal year market million earnings part to million. $XXX year and at EBITDA patterns, second based long-established on million. range be business, of Regarding practice, Consistent seasonality we upper quarter issued second that and $XXX half on of will results previously adjusted end revenues, EPS second adjusted adjusted will release $XXX initiatives, range in our expect view the we adjusted quarter with of as EBITDA our our view to full cost cycle investments July. for for expect in be business trends our EBITDA our timing guidance we update quarter and million current year our current full our XXXX in of Based operating the trends, XXXX of and second the consider quarter an this to and guidance start of $XXX

the over to XXXX start we are believe well-positioned strong the we strong of to results a year. continue balance achieved have to deliver and financial We

of with plan XXXX view addition, executing focused In our enhancing the long-term growth and we margin come. remainder toward over revenue expansion our to the are on a years

to the accounting and committed solutions out EBITDA remains capabilities. CoreLogic XXXX in earlier, for valuation market, on mentioned Frank a normalized mortgage adjusted margins based XX%-plus build of after U.S. achieving our As

as business to expect through for mix favorable will and a cost your goals our back time the combination the We profitable revenue today. now growth, well transformation of I turn Thanks Q&A. for over achieve as margin to model call operator productivity.

Operator

session. the question-and-answer begin now will We

Bill Please go from Wells comes question Warmington first Fargo. ahead. The of

William A. Warmington

everyone. morning, Good

James L. Balas

morning. Good

William A. Warmington

quarter, strong a on especially in congratulations light So, headwinds. volume of the

for a of So, you. couple questions

improve times, some first could quality The in XXXX. is, mentioned the but you and in that XXXX, not cycle the doing investments

how you run terms of XXXX? you putting wanted to you much what of in in kind investments reduction in see I dollars ask into So, are these could costs and think rate

Frank D. Martell

Thanks, Bill. appreciate primarily next This we this of couple machine-learning cloud in utilizing the call around and technologies now numbers we automation, over and like infrastructure, the the type million on workflow kind bots, think and that the year-end and the about enablement years or call words. $XX coming provided talked But the was IT available of are the and of things it's technology this is Yeah. automation. that automation, in the and Frank, now bigger online. Look, first about estimate I numbers, the quarter call, some

know, it all to a that bit little that's you really put takes of And the time. as place, So, into primary.

do two significantly think of years we're so. do next I to why that. a benefit that's to great part and order there's there the We So, XX% over to plan in going this think us. the deliver It's climb this and it's I or well expect to

William A. Warmington

about of the you and my the that's then, the business side in you then, follow-up as diversification that's the would with And to about when that, revenue thing dynamics then, kind of been you've the of pipeline on between some to wanted there the appraisal of in client talk going appraisal profitability past positive? headwinds opportunity clearly And for are could putting on side the platform of turn be side feeling about talked a business? little the it. and There of And another the terms I But vendor how about start bit to pressure how VSG. are Got business volumes. question, the addition the to some program and you well. the in and the ask

Frank D. Martell

Yeah.

first, side. capability there. you here. the the me as – I'll talk Great platform Terrific Let about think I the stickiness, And built imagine. about talk margins. Great progress can we've

So, systems go about. a that I XX% charge think all mix I towards talked for the

really and about hundred cover AMCs. feel couple XXX good We of another that. almost lenders So,

the also us real together, enables connect add. ecosystem is it's think – So, real high a estate of a which to value a lot I

clients there other current one in is has to revenue On of mix been. the appraisal as But are side, much. you is primarily genesis two a so They know, the not diversifying, diversify. our plan the one, or particular,

much I little think Maybe that's gone as pretty much as expected. expected. a bit slower, but pretty

a a get the think think continue being But pipeline. as have Nothing we contracted we slower to the number converted about of signed and I to that's that. it about But wins. that. bit is, report We'll of up. takes I up. and we hooked ramped happening bit all quite I new have just talked feel clients good there. and little work really it's a little through a Yeah, good up new to of reality time sell-in, We've before, a a think so volumes ton we

So, we good. feel

the lower. the business what be we On are believe We characteristics side, the in fairly to business. the solid margins still have that of margins given appraisal

to are do business expect time. margins to automate We that we working come the up so over

acquisition, appraisal. automation key So if the but an brings perspective in eTech not from you at really one, opportunities a some look big

angles. out many on our good Appraisal I also property that the And of is respects. those about all So, to repository. working use I source enrich perhaps data did there position. our richest mention we're in the feel we data data pretty call,

to good have that we So, effect. already used

years. valuation And you feel when purchase up the it's the that headed, where is business and market where next and we I to growth potential. the now the right marry market's of progressive over So, the see where about should going, good really purchase in couple

So, that over the longer period. bodes well the for volumes

William A. Warmington

Got for it. insight. you right. the All Thank

Frank D. Martell

Bill. Thanks,

Operator

next Chris The Point. Compass from question comes go ahead. of Gamaitoni Please

Chris Gamaitoni

in drives the here? there? from the path from your revenue What Is do XX% get platform of call. kind platform to the organic? business you organic it Is business, it Thanks higher my for On mix how taking appraisal inorganic?

Frank D. Martell

is This Chris. Frank. Hey,

combination it's from right XX% the we're So, it's a like a not base. But factors. going a is third so now, different about zero of

mix So, are very significantly from platform growing a of Those data perspective. organic healthy revenues revenues have pretty and we there. an

to So, we There's organic take to capabilities clients. of this. there, expect we that these space white an there's new continue as plenty feature to so

technology to In and addition, revenue the with bring firm, eTech that can over UK-based being we U.S. think we stream a

of the number as opportunities additional the mix, but kind obviously, well. non-organic way other time, think there's into we organically. to I organic-related of get there's the and And opportunity fair data a actions. there's can side over assets just there the So, then, of on We analytics a amount those think add I think

Chris Gamaitoni

the the guide what And plan. just Was your your what outperformed versus your Just EBITDA better million Was any performance, was million. to Okay. $XX of I cost revenue? color of better prior outperformance then, plan. wondering, $XX management? to it it kind better than relative was

James L. Balas

Hey, Chris. Good This is Jim. question.

EBITDA We the of the also the things. revenue. had little a there and in revenue performance, There was that growth. was was better the mix On quarter, it revenue multiple

performance. And better of what the overall. Some EBITDA cost generated performance higher-margin that businesses the productivity, then had with that's combine the higher

factors. it's So, multiple

Chris Gamaitoni

what the today? your commentary EBITDA for Okay. you That's benefit XQ a la to acquisition us able perfect. guidance And full-year are and of let know mode is the

James L. Balas

Yeah.

So, for subscription it's la model. mode, a a software

to have it. haircut a going deferred it's to So, component

be quarter for results pretty second to the are going So, the muted.

So, of we'll quarter an a and there's our second not consider update impact, of part call. as then be to lot going

Chris Gamaitoni

you. Thank Okay.

Operator

The next Please question of comes Oppenheimer. Greene from ahead. go Glenn

Glenn Greene

you but confidence end on of on one, last to performing to I question range the similar full-year a the sort of had upper I a and the was morning. the Good Thanks. quarter curious gives sort on what the through from just end the carry back of this of be to basis. range? Is confident to or three quarters visibility the high it

Frank D. Martell

Hey, Frank. Glenn, this is

in second know, visibility quarter. we good As the have you

So, as off can good. both a start. we half see pretty said, strong really And the we're to Jim and first I

feel good So, we that. about

alluded Jim I responded cost and think to there. well think Chris' doing as question to, I we're the programs,

full think combination the for target I into upper give range. good the us the end pretty in the visibility a So, of those year

Glenn Greene

back Okay. for. nice to was we valuations just at outperformance And business, relative least to were a then what it looking the

is, question I drag the on the those So, things, mean, that's I color effects. the hit have diversification and from versus perspective? a on from to business triangulate two any drag just trying from converted to guess, is I'm new negative, we the contribution positive way and diversification put bottom

Frank D. Martell

Yeah.

of I'll first, So, long-term last there that which these a play. two is only But take clients. part is the are diversification

reality think I revenue reason on is seen bringing we've new the and can't sources, that no why there. about is we the So, more the success continue there's game

point intersection think that I be be not an profitability So, where big from deal volume a revenue will there'll resolved. a matter It's standpoint.

is is get So, in the there. terms a more that there. accelerate us. game of for change and than issue the bit as good news think we margins will that profit revenue a And I a think automated, growth the we more the it it's Obviously, of issue we what's offered

it the to tiers of client piece I really because and in one we're would offer. we think an strong big, industry. of base, The of area something the services excited It's growth need have all and also it's really mass, because of really large. the strong about, say, that, it's it's medium I margin unique platform

conduit products additional over. also – that's distribute another products CoreLogic So, to

about, It's the that. kind thing just But and margin. little specific well. really It's knew lower it's diversifying developed bit that's a really. they're appraisal same of So, talked you the we

enough more And offset to term. margin issue a good got It's a that diversification of being medium pretty perspective, real think feel I a not top-line from of game. I us. for it's uptake So kind about we've the over the able

Glenn Greene

Okay.

Let for quick just call macro-adjusted give the ex-M&A if could quarter, what in, you me organic more just figure. slip the I'll one us that growth

James L. Balas

Yeah.

at done talked another we've market the fourth year. So with ex-market, line when negative M&A quarter X%. as the was the And had we about the then, in X%. the was for we organic impact about what a in past, growth was was It X%. in

So that bridge total the X% for positive gets you quarter. to the

Glenn Greene

much. very you Thank Perfect.

James L. Balas

Great.

Operator

Bose Please The KBW. next go of is from question George ahead.

Bose George

up Actually, guys. on on question that growth. to Hey, just organic follow

UWS from that of acquisitions? talk the can how much on segment, Just came growth you benefit about from versus

James L. Balas

Yeah.

is this Jim. Bose, So

two you'll we On what segments. XX-Q – the is when $XX file pretty acquisitions, about we about later. it was the distributed equally roughly, had million the And see between

Bose George

Okay. the – guys the on Great. UWS at that pricing any Thanks. the impact all then, of do segment, declining clients actually have And with offsets volume? mortgage you floors

Frank D. Martell

possible do statutes. of volumes No. That's regulatory to – under no not there's guarantees by

volume – I And We've But really don't. think share. we're cards. we been side. we've perspective, Bose, well my picking now, – we been cover have up I think since able So, from lenders many on rate I we so to mean done able the to we've

As you of side, a actually we are can gaining amount see, some still of – good the businesses were share. on the UWS

Bose George

said Okay. remind there what upside about the in conversion Is past? now? That And you Can flow makes rate the us to run one much sense. right Thanks. cash you more. actually just

James L. Balas

this XX%. Hey, The target free year is cash flow to for the is Bose, XX% Jim.

Bose George

Okay.

James L. Balas

we that's And good range. still think a

Bose George

Great. Okay. Thanks.

Operator

Andrew Please next is SunTrust. from question go The ahead. of Jeffrey

Andrew Jeffrey

value? address little a where Can talked know delve you bit you and you your pricing be some price the to pricing to Can into initiatives bit? you across a in taking Thank ability businesses. about might I guys. specific little question. you for Hey, just value pricing seeing

Frank D. Martell

depends so businesses card business. pricing Andrew, the Yeah, the Most structure. a of our have on rate fundamentally

longer-term A But then escalation Some kind cost that contracts. a has most inflation portion rate in feature part, of of of the for related a tiering. the fair recovery. contracts, it, revenue we have And longer-term that's the it's volume, for structure. there's fair card there's to chunk of a volume

host and so for of at inflationary try we time, those. that recovery an card, from over look a to large the rate and cost happen the And we enhancements the and product, basic perspective. And price so, there's then

fair that new number of come stream. a on products derivative or have products We

value to So, price we try those.

And need a combination that then remediated pricing. drive all those finally, into factors of that be have some contracts that it's do to we occasionally So, were underwater.

separately issue some our enhanced we with product. them of new by and large, by inflation we're have But and more We pricing on one-off a driven negotiate recovery perspective. that

Andrew Jeffrey

Okay.

tailwind you sounds I about you should And that like, saw – and terms to if products update we there in this and But guidance about to When anything so, introduce EBITDA guess, in as in significant, the pricing technology. quarter I new clarify, some quarter, new half. wonder margin timing full-year outperformance the any just it just or the point, pretty need of just EBITDA, it's is going is you sounds is be lift investment your to spend versus, we some factoring issues this into I'm the for of and investment example, I if back about think and other thinking think we're conservatism, the guidance guidance. there or like, timing at spending? might Because

Frank D. Martell

is that's and I material. towards kind also the very revenues margin a think margins always mean, than it's off think fundamentally like. I the wouldn't we're quarter, big you'd I mentioned, bit have a shift we think up you slower more factor. were margins I because as positive And a leverage. very, The operating higher – very really think were don't different. don't Jim productive – start first mix I of reason obviously, that's I material a the why But little

those are at all things So, play.

bit second give by back-half-loaded, in all when metrics plan, we EBITDA guidance from range. guidance talked end but little update. being we that's metrics, think, all a what always upper Jim the of more kind factored we an of And in as the it was July all perspective, will, the the about I kind terms the of into do of at do, quarter investment

stuff So, revenue and well. we'll that do like EPS as and

Andrew Jeffrey

Thanks. Okay.

Operator

The next Jaffray. Jason Deleeuw of go Piper Please is from question ahead.

Jason S. Deleeuw

congrats and to Thanks start strong the on Yes. the year.

at guidance, kind up on same all last Andrew's just of If your the on we're want kind sure the I question, what's down here. page to implied year, margin. Just look of for it's on kind back I following just half make of the of margins

So, is I will make understand there volume, mortgage, kind or of something volatility. just want or to element some costs if we given an coming sure that all conservatism just the of through there's be

would Just any color you. Thank be additional helpful.

Frank D. Martell

think, soft range. we're I Look, giving just be first guide Yeah. the an kind indicative. a It's all, of to on clear, of

I clear Jim's So, high. a quarter. half you we've on view of the view have think really, kind now we expect And – based of of to first be second the

think of second year. spending, over big distributed I not in through terms the that quarters. a three there's the It's the of in bolus pretty half the coming

a the side EBITDA EPS give think, I right now. could as on you we're So, as where the on I I said, I – we'll no cost think period better is there. read see revenue, think well July as get the into guidance we There both and said, I really doing

well on side. the really I we're doing mix think

longer-term margin target that's nature. the I progressive in the increases support and think So,

Jason S. Deleeuw

and just of that. to are be you beneficiary Thanks on any – looking mortgage a lenders CoreLogic Great. you from interfaces then improve seeing activity And increased mortgage is the that. should there frictions? reduce And wondering experience, digital for origination their

If ideas on exactly positioned for you additional some color or that trend. how of could give just some us is just CoreLogic

Frank D. Martell

Yeah.

proactive I many we the see already delivering think experience. And trend different more manifesting think enhancing that experience, a it faster, in across mortgage client cycle itself aspects. making everybody's I interested

of we we of in delivery think investments power as some that a data Hence, lot forward. stat we're to are (XX:XX). have. systems of a we're elements that platforms very across well-positioned and making the I of going And think I the go wide we variety that

going And by not and housing going definition, mortgage a lot bit It change. think on. finance. is is, longer-cycle there of think So, market, I a that's a I to

within certain some doing. cycle, we're that long that innovation to I a think, accelerating. what extent, driving the think is we're And though, through acceleration of I

Jason S. Deleeuw

you. Thank

Operator

Associates. is of question go from next Please Zelman The Kevin ahead. & Kaczmarek

Kevin Kaczmarek

last largest quarter Hey, on you guys. of give than be. of questions. or Thanks sense corporate the guess, they'd year? last the taking changes Can thought higher a were I relative the drivers for us I they my to expenses, a bit

James L. Balas

Yeah. more initiative-related, Kevin. timing and It's

enterprise-wide expenses in We are number a captured being have of so a those of corporate. lot initiatives,

Kevin Kaczmarek

trend that through this the quarter year? first should run then? good how And rate Is a level

James L. Balas

taper It of the pretty little the over should close. down be a It'll bit probably balance year.

So, timing quarters, taper I bit quarter, think a down QX. through a little in little QX in probably first bit it'll the

Kevin Kaczmarek

then, business. a And lot, acquisition. driver It considering seems you Great. a decelerated an on like insurance particular benefited there? growth there especially the from Was Okay. really

James L. Balas

Yeah.

was the and of We back was overall, had of quarter. strong. XXXX the in a But still the lot first weather a in it events single still think of I middle couple the events light half so digits, in pretty things. weather-related growth were

Kevin Kaczmarek

I one. And one Great. Okay. guess last

the within quarter? you from there it to mix Because coming there but fourth shift was PIRM revenue maybe the of quarter some anything did flat going mentioned expenses (XX:XX). seems like but the big in know big products, came I out the costs first a segment, significant with come EBITDA On out roughly, down, the staying

James L. Balas

same It benefits. was businesses was performing as productivity thing. It the higher-margin as the well, well

Kevin Kaczmarek

had. It's right. Thanks. I All Great. all

Operator

next Meuler go Please Baird. of ahead. from The Jeff question is

Jeff P. Meuler

would at adjusted guidance. implied the by enhancements the – productivity what's of out excluded probably as you. EBITDA for infrastructure for typical guidance the of I that the least Thank I now ammos fully half the be. high Yeah. right midyear, saying bullish were the so think you're as calling from second you as – just you and cost margins, some or adjust since terms recognize But is in (XX:XX) end programs the costs

are beyond So, to which extent the what anything investment those? there's to specifically meaningful areas the

James L. Balas

couple of there. things There's a

the to CapEx call the which $XX did instance, did CapEx in be front, XXXX. that our about off talk a range, we through on take to going the signal start. little the we earlier, thing is fourth Frank's charges, So, those to – other To $XXX what slower if expect to at, see the the point the look got are through is, again, million we're XX correct. excluded, a But quarter. where that in have we bit for would than had you're And I in you investment. of to those last the XX-K, We're more we we heightened we going second the that, higher would signal million

Frank D. Martell

and real more half piece And real think be the the it the of Jeff, I areas. IT the estate half. in than are And two first will second estate big

Jeff P. Meuler

the helpful. X. Okay. That's year-over-year X, X, few insights, plus gone last X, the just property trend on quarters, And minus minus plus has then,

some there driving acquisition on what's sub-segment line? there effect improvement is just revenue sort and So, that of the

Frank D. Martell

Yes.

would and So, things. think is say One some product And I We've team the call there. improvements, marketing a have I quality had – sales aggressive side. on some would improvements. we've great I out been in two we

continue. I'm I'd lot a say that will that it's that So about and hoping

Jeff P. Meuler

organic? all that's And

Frank D. Martell

– some they've of then a And in thing client is decent other around analytical that we're revenue size providing settlement that we some the there a slug activity pretty have that we Yeah. to to also relates support had.

this will a I factor well, years. that's as think, next be of So little particularly the quarter, a and bit of that couple over

had we're been done we've lot of offering So, best you the the quality, in see that's that work we've company. think product improvement. rate to of trends say revenue would for kind indicated. of a a I've one that in the since with we've I sales, feeling got teams the area main, starting on But sustainable of which the benefits I my area, that is, run in product the marketing, And

Jeff P. Meuler

Okay. Thank you.

Operator

ahead. from Please of next The is Stephen William Sheldon question Blair. go

Stephen Hardy Sheldon

terms Yeah. sales in on sales product-based that what implementing a from Hi. of of you talked last moving force Can terms to, the process about a solutions-based process. in first, that? company my where you of quarter structured and more questions. Appreciate guess, kind believe, about is taking I talk how you means is of the I

Frank D. Martell

Yeah.

to actually this is UWS together formed – think most client where of of we're look kind a activities you which the the that in And no year, the that did for major those one signals really We've products The if into of end we're at Stephen, progress underwriting the base. solution that now. been friction that segment. of for at why I is So, bundled pull the sure this last making to the the segment, make journey we that we has few on housing of restructuring Frank. doing reason have seamless years a operating is we

of directly through can underwriting a that's LOS digital the either working delivered package in an from we all a there. a be a and platform. put factory we delivery have solutions platform example into an on can that the specific or where perspective, And gateway together We're client's through so, efficient

because It So, for substantial us, very significant important whitespace is progress. we are still a making I believe there's there. out

in think out We the have of also businesses, these – lot it's have And mid, still. mass opportunity There's we we high market don't a shares great lenders number individually of not have a across a I there. but uniform.

why gateway market are deliver at you solutions symbiotic, already into these easily. market plugged digital is also those effective the very those is that of bundled like – pretty things these platform that you lenders. That's But need a the strategy also to segments. I because think valuation way So, more many get where can smaller

can easier those get these way through then pop additional on an if there. to out So products platforms, those we it's

solutions monitoring, formative opportunities that I'd on the we really which in real really something syndicated of more that's at that process, other basis. over least like risk area. really within on management, industry a talked valuations years, So, about, the we're what the done the offering doing say, there, around on There's are hasn't are stages and a but underwriting out lot estate which also

getting mortgage actually longer are really pretty that a that two, years. strongly that's for the our package, we're over opportunities focused But and excited four next be us I'm into term. on bit will cohesive So, the opportunity resident for there, a terrific but a little solutions about three, now,

Stephen Hardy Sheldon

we Would think about this sales then, as to volumes to in to meaningful should That's as the count stabilize volumes? the operational UWS grow it. higher Got year, some segment? maybe potentially much head need next of starting guess, cost and is those mortgage absorb current we add how year about to you thinking kind there I structure capacity within or margins be incremental And volumes helpful. some and really recover

Frank D. Martell

Yeah.

the that operating leverage is said script I we to an perspective, – a upsides. volume on it think I are highly geared, from

a deal business, nuances businesses automated of have to it, So, in I of processing those some businesses. manual we most convert to payment tax profitability are the will the had – with of we a little all They're great of platforms. upside any – those exception think

Stephen Hardy Sheldon

Okay. Thank you.

Operator

John from Campbell Stephens. of The next ahead. question Please is go

John Campbell

EBITDA great – la eTech on – mode just you quarter. maybe Congrats year? for could call late, I Mercury, the apologies all guys. little in provide a you revenue so jumped the contributions just this. if and Hey, this But Frank, a a on what if could could are and I missed you

Frank D. Martell

spec don't out, those John. We

kind great. chunky the as think not from And may and be calls. is I kind won't then this terms good the with but business of Jim Mercury, a the think But margins. not la provided year, I size that recollect decent little can't of it's a mode, contribution that it's year, said, – It good have material. a on we I Mercury one again margin this of but modestly revenue, already out now, pro numbers material of is in there a forma, enormously the honestly.

John Campbell

geared in you are of more a like think from more VSG something that's a automation creating Okay. away something Frank, to now? like just And Or things like it about something or towards moving higher-level this an But more a traditional efficiencies that is way long-term of is done is question. appraisal like the like transformational potential when e-appraisal?

Frank D. Martell

in. think me are and how let we talk Yeah. where fits I about John, just that

platform growing a it's sizable good So, we of analytics at rate. money have and a It's great and organically lot and business. it a makes pretty data

feel really add I we there. And that about will good we'll think capabilities that. continue So, and

is on alluded think as of you to. I around appraisal the automation, the game side, kind

up a kind I'm how So, worried. ultimately margin hard Cash reduce of that flow working cycle That's to cost business. great. XX% plus and improve not we're structure. as is get times the to business will

I of business that huge necessarily the because about this more better rates accelerate growth think the calls been growth at driving that I diversification but like discussion and rates, product that there that, through about revenue, a think is – stuff rates a like offering. the the lot has on I moment, is – growth progression

to you're We the look at for appraise the entities securitization. private methodology of a different appraisal, that the in, are But constituencies based, that weigh looking at many you GSEs, options be may lenders, other many to where doing different applying types property. rules requires

as term, some to some the stuff, we'll of waivers to But of, through our been of able Columbia appraiser technology. harder think GSEs I shortages that's I that has So, other the think, of address things more those well find it's some move appraisers. a think. longer and in do be There kind as rural some of to Institute, some areas terms I more own where

kind of and appraisal a bit those So, of different longer. that evolve, valuation that will I think take will but forms

of massive I fundamentally, offer we time, automation a I'd drive down can there. at on probably friction time think cycle our and but appraisal, look cycle a and and immediate is focus more drives cost if cycle lot driving drive you offering then Because so say margins in up where market our times today. our better the

with down, much the valuation see people time you'll happier we a can if of cycle I think lot the get So area.

John Campbell

get pricing there down? you is as headroom cycle And times

James L. Balas

be interesting to will That see.

improvement. I think margin there is dramatic

net that to But will profitability you I a think price, I the result think don't increase whether better I know. be business.

John Campbell

Thank Understood. you.

Operator

Thank our today's This and for conference. session today's concludes you question-and-answer presentation. attending

now may You disconnect.

Dan L. Smith	CoreLogic, Inc.
Frank D. Martell	CoreLogic, Inc.
James L. Balas	CoreLogic, Inc.
William A. Warmington	Wells Fargo Securities LLC
Chris Gamaitoni	Compass Point Research & Trading LLC
Glenn Greene	Oppenheimer & Co., Inc.
Bose George	Keefe, Bruyette & Woods, Inc.
Andrew Jeffrey	SunTrust Robinson Humphrey, Inc.
Jason S. Deleeuw	Piper Jaffray & Co.
Kevin Kaczmarek	Zelman & Associates
Jeff P. Meuler	Robert W. Baird & Co., Inc.
Stephen Hardy Sheldon	William Blair & Co. LLC
John Campbell	Stephens, Inc.

Corelogic (CLGX) 26 Apr 182018 Q1 Earnings call transcript