CLGX - Earnings call transcript Q4 2019

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Operator

Good day and welcome to the CoreLogic Fourth Quarter 2019 Earnings Conference Call.

I would now like to turn the conference over to Dan Smith. Please go ahead sir.

Dan Smith

Thank you and good afternoon. Welcome to our investor presentation and conference call where we present our financial results for the fourth quarter of 2019.

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

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

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

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

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

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

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

presentation Additionally, to non-GAAP measures measures. these non-GAAP are of included today's the reconciliation is their contains A financial equivalents presentation. in to financial measures that GAAP today's appendix

Unless results be to reference XXXX. specifically the basis year-over-year fourth prior quarter is to that financial fourth on a should quarter understood periods of comparisons of identified, in

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

call take at end will as the We time of questions the permits. additional

me and Thanks introduce our and CEO, now let President Frank Martell.

Frank Martell

and areas key session. finish financial quarter remarks first will then up and results as provide cover today for our and our to We'll Jim Dan, quarter a call will Corelogic's with financial operating XXXX prepared My follow XXXX year commentary and as and fourth focus good Q&A the full XXXX fourth well Welcome you, year afternoon, summarize everyone. full XXXX. year on guidance. significant Thank call. quarter and earnings full of highlights, XXXX

-- of driven higher QX. a off businesses with almost technology origination outstanding unit the quarter, performance very primarily the XX% platform-related in core the were financial well in high-margin transformation and and and in market. core volumes normalizing topped as growth in mortgage, for the AMC strong wind by other noncore an Revenues units U.S. down CoreLogic operating up XXXX as

growth relates services Organic pricing share front new during of gains. the to collateral growth quarter market by boosted accelerated trends our and momentum organic valuation One accelerated model. on example the

AMC As we last successfully December. know you completed our transformation

service growth new market Our model margins originators. interest we've top XX two attracted mortgage are the with new model in higher secured underlying contracts new generate and has double-digit reimagined These a major with significant wins contracts revenue service strong of XXXX. recently expected AMC our of for together other U.S. host with to

operating and revenues reflecting significantly to improvement prior us of Our of five year. income benefit over This EBITDA during quarter, favorable as productivity XX%. increased helped gains. mix represents percentage a revenue Collectively and and favorable full leverage well efficiency adjusted as margin revenue adjusted margins operating cost EBITDA mix points the above ongoing drive and the higher margin

profitability to beyond. we XXXX, we're As we well-positioned drive XXXX organic higher exit and and growth rates for in believe

at XX%. quarter, flow fourth to cash the accelerated out XXXX During rates we conversion free finish

management allocation capital line significant focuses continued in balanced to -- a which along reinvestment and XXXX, with capital human with finally on we of prudent During consistent infrastructure, our to long-term platform three-pillar our and follow shareholders; and returning in levels appropriate our capital solutions, debt model, targets.

cyber platform terms our the offerings, finally, and and valuations bit year. on and a transforming expanding security; past over investing pillars these in migration. accomplishments model, operating enhancing In on information reinvestment provide solutions of of I'll each integrated our quality, collateral XXXX, GCP focused progressing business our the now efficiency, business platforms service of color and in

to share about cash flow With generated allocated total our of regard we XXXX one-third to capital during free return, repurchases.

initiation the of the XXXX. Importantly approved company's beginning a Directors in QX of dividend of Board also

level earnings. This equivalent approximately quarterly XXXX dividend to adjusted of XX% is

forward, dividends our of primary to return the we in repurchase on expect we come form to capital Although continue plan opportunistic shares to an going basis. our

$XXX ongoing levels our with as program Finally, part in debt align million term debt an progressively of by to XXXX our targets. planning we reduced longer

balance today focus and margin The on mix growth. driving our remarks revenue of high my prepared organic will

help As focus we past people building solutions, millions significant we rates home buy on and protect find, growth insights push over the for delivering core they margins, leadership love. higher at unique the our which progress market years made in data-driven higher several that of

most the our connect During unmatched market XXXX, activities revenue which we ecosystem. solutions. expect generate margins data in of leaders, and businesses grow the critical platforms, strong leverage our scale analytics consistent These and streams many housing continue to and constituencies and and to strengthen are

Over platforms several technology structures our and well years built and as automation platform techniques. building making offerings, quality, visualization on on capabilities insurances marketing we focused strong as home the past expanded and services, and/or also progress focus with a international. have particular data spatial advanced We're purchase, next-generation

capabilities foundation margin set new additional These verticals expansion allow build operating a for across and us XX%. leverage, beyond should into multiple opportunities tap to growth

We revenue are mix of solutions successfully expansion shifting non-mortgage our greater platforms, integrated and towards percentage high-margin adjacencies. of our

A of sensitive grew component strategic XX% plan over our at the XXXX, grow revenues footprint we next total to few volume In our mortgage to almost non-U.S. least to sensitive XX% mortgage of non-U.S. of revenues. remains years. solutions key each our our

without least be the We core our mortgages solutions. of None powered in that possible the these solutions our out of at in mortgage a of estimate advances success XX U.S. origination seven strong of will XXXX.

service clients. strong our we're underwriting, for leader able and a drive As in of to quality performance operational critical

efficient market best bundled infrastructure integrated solution through core operations build that repositories. and packages leverage gain and scale continued to the and XXXX, back our leadership provision in our data office technology industry mortgage of the During and

of we volumes than boosted terms activity. slightly market overall unit in In refinancing XXXX by by volumes, XX% more grow saw elevated

to elevated Over we continued the heavy remain external elevated overall remained refinancing first of likely year first through at believe months will six six market market U.S. volumes projections, current due on volumes months activity. least this the market of Based conditions and this year. unit

to remain XXXX rates levels. and year, be to full volumes with market the we low consistent interest expect largely For

In our we're want conclusion, performance and well-positioned operational outstanding in and beyond. growth employees, I thank success delivered to an team clients and and for continuing support. and financial the for in CoreLogic XXXX XXXX shareholders their

and of we We're help us housing and protect participants opportunities insights, our carriers, create that and to excited market about ahead millions transformative property the achieve stakeholders real buy find our insurance push of estate homes. financial their cutting-edge strategic providing and value professionals, people platforms to enable other for to institutions, solutions will agencies government vision of

today. financial our us joining Jim will for discuss now Thanks results.

Jim Balas

updated and Frank our on results for and full I'm fourth Today, year afternoon, good Thanks, everyone. going and financial then discuss provide XXXX and financial guidance XXXX. return capital views to quarter

count growth mix of solutions approximately of completion As favorable EBITDA the margin XXXX of fourth platform our fourth, common in included: volumes revenue second, in positions of an program to and Frank mentioned, CoreLogic initiation repurchase XXX,XXX which we more our business total more transformation our a largely to basis beyond; fiscal productivity X margin XXXX program. dividend expansion about and total increase expansion successful adjusted significant and driven quarterly points Financial U.S. the million insurance first, X% focused in performance valuations announced and in AMC growth by estate delivered by total gains; XXX quarter reduced us than XXXX. shares and operating mortgage shares businesses; XX% higher the real highlights than share for third, growth driven strong by and of financial and our brought which X%; finally, cash of unit year

XXXX above we adjusted year performance. fourth balance last was on the results year guidance relate results ranges quarter adjusted $X.XXX provided to revenues October. million $X.XX $XXX The all Full EPS share. my our totaled per billion. were These totaled of Full remarks EBITDA XXXX and

million well mortgage $XXX insurance-related million Fourth with as by quarter solutions improved million year volumes as U.S. growth mortgage, the $XX unit in core compared and in or real closed December $XXX revenues estate of primarily XXXX. acquisition X% up driven prior in an totaled

technology impacted of AMC exit $XX XXXX the quarter and fourth The transformation by revenues non-core of million. units

revenues of Excluding the non-core increased and XX%. effect AMC technology units approximately the transformation

UWS from mortgage million up growth. and origination unit volumes revenues led organic higher levels of benefits the XXXX U.S. by X% totaled $XXX

earlier, of and transformation technology AMC the effect approximately non-core increased discussed revenues XX%. the UWS units Excluding

insurance PIRM translation currency in revenues growth real rose estate impacts to in more $XXX housing and volumes, solutions of than market as Australia. offset the million, an of increase screening X% tenant and lower activity reduced

fourth approximately of XXX in leverage, compared quarter basis $XX margins Operating Operating million revenue XX%. mix prior the cost year was and increased improved the principally operating $XX continuing with attributable operations business from income Higher operating to for points million income period. productivity. to the benefits growth, totaled same

$XX with increase compared million $XX EPS the $X.XX strong Adjusted $X.XX of continuing totaled XXX%. due prior $X.XX compared increase These year operating XXX%. compared to period totaled operations $X.XX continuing of XXXX, in discussed increase were from totaled income EPS net performance Diluted in an an company's quarter the from in Fourth increases XX%. previously. an with XXXX same operations million with of

$XXX XX% growth, was principally productivity approximately margin million the benefits $XX $XXX programs. increase ongoing Adjusted points. revenue and up the business XXX in EBITDA million in EBITDA The million of of adjusted attributable basis EBITDA increase an XX% totaled to was prior mix compared improved Adjusted year. to cost

from the higher prior $XX year was mortgage unit continued U.S. EBITDA growth, to revenue volumes, adjusted benefits quarter reflecting favorable UWS $XX mix million leverage gains. productivity for organic and operating compared million

investments in as and growth market solutions and reduced offset actions and adjusted platforms currency real Australia. $XX in activity cost technology, in with translation line million EBITDA and productivity new products, totaled estate XXXX insurance PIRM in housing

flow Finally, of gain generate we levels cash year. significant exited momentum and we as to the continue free

$XXX increase quarter. XXXX points months conversion months and versus adjusted the approximately XX% flow EBITDA last free of XX December million third cash the ending For an totaled XX a rate XXX of XX, basis

productivity scaled durable cash-generative has relentless operational model. resulted in solutions in on Our and and a focus business unique building

billion. approximately past common the $X.X have Over million shares repurchased our years, or XX% for approximately XX $XX we of

than X% $X In outstanding million for of $XX our or shares XXXX, we repurchased million. more

approximately reduced we $XXX outstanding Additionally, our debt by million.

our on year, dividend initiated grow. we announced dividend of anticipate the $X.XX as common our As we last increasing share. quarterly per over December stock ever would first financial We XX results time

with will guidance. a approximately today continue to we annual maintain While $XX opportunistically my our dividend prepared capital return, our million of represents I to recap current financial repurchase of remarks shares. close flexibility

Our full unchanged. issued XX, XXXX XXXX year on guidance remains February

internal our current With the million. $XXX unit volumes, in based million on to and quarter revenue range be to the expect $XXX activity market we of seasonality regard first to patterns, view business of

adjusted increase represents EBITDA year. prior a first quarter, XX% million $XXX from in the to million XX% of for $XXX In to we range terms be of the which expect to

will that incorporate reporting to non-core AMC default XXXX mortgage impact wind AMC provide The first the the found of adjusted with be our corelogic.com can of of revenue Investor our the quarter the operations. non-core our supplement intends and and down of under Commencing company down on the an revenue transformation measure technology and units transformation in Relations. wind posted results, our revenue of XXXX impacts XXXX technology the actual

team summarize, results delivered in To the CoreLogic strong XXXX. financial

well the the call back expand in We to time are for Thanks revenue will Q&A. growth your and over and profitability to for drive turn today. positioned I operator XXXX beyond. now

Operator

Instructions] first Warmington from Fargo. with take We'll [Operator Bill our Wells question

Bill Warmington

everyone. afternoon Good

Jim Balas

Hey Bill.

Bill Warmington

by But you're flood basis business first know your applications showing the -- U&WS below for level. at it bit versus overall the metric And the closing ask -- with the a And driven of and the you've seems to on got credit was U&WS pick the question So and quite the driven level I you business to the you've have market. that seems that performance I adjusted XX% being part and by of tax inquiries the about an wanted the not got then that's of that like being level. it's closings. the

of And question with investors getting that has we've been gains? so in from the light been of gap, especially what's share the mentions

Jim Balas

Yes.

On the UWS – Bill, it's Jim.

the credit solutions the and really well. -- a is year-over-year so as the that we quite were quarter. was seen upper So quarter of which we property XXs side floods in in forth of all profiled was where up share the on we thought roughly past on business challenge our performed But mortgage XX% tax we've all, core continuation business the shifting had the has

Bill Warmington

the… Okay. And then

Jim Balas

were also the in business. in similar valuation profiles the tax then performers platforms strong And growth the

Bill Warmington

one And reports, headwind, you credit for you that actually on in the the mentioned so on do what that? three -- side when lap

Jim Balas

get I to so. close think next within quarter it lapping we the or

Bill Warmington

under for yourself could for a $XXX business? bridge guidance $XXX from EBITDA and the -- pieces terms getting there, level million Okay. for given million the my of wanted how And second of then the from the ask in XXXX I you question, the coming to to see puts XXXX, just million if about different talk about we takes to $XXX the

Jim Balas

fairly Yes. I because a mean, it's clean flat we've actually a market. assumed year

of embedded as they that we've to on near bottom reflected line. that roughly I same notes falling growth It's as So two think expect well the the half organic that incremental three revenue. points picked of most that would the you of up pull-through

the We profiled also doesn't $XX it. margin carry our within which with bridge, million a really

then that And there's we FX $XX million. the piece roughly profiled

weaken. We continue to dollar see that Aussie

performance that the embedded shown margin over We've shown good margin -- at XX%. the out well we last then in And with we quarters. two the the assumption place. So on very put guidance

so We XX do embedded within some and to continue XXXX. So profile. that we're like we margin we is do for year feel the have like, to full initiatives positioned in forth productivity always that well very hit

Bill Warmington

right. thank very Well, All Okay. much. you

Jim Balas

Thanks.

Operator

take Thank Bose next our with KBW. you. George We'll from question

Tommy McJoynt

Hey McJoynt margin wanted for were bit than came guys. Bose. This a I expecting. segment. we weaker ask PIRM switch is to about to The the on over Tommy the

there if to of in remind want this or any degree any that business? out? call And that side see anything to then could seasonality happened of investments was you also there's the wanted out specific you quarter if that us, Just

Frank Martell

Yes Tommy. is Hey, Frank. this

and I all on that at type numbers place. year. your are the Just answer before a over these I we I And -- stuff I of Bill's question had to just pick think applications great looking points, think that

think right and top we're more metrics. closed I of orders title relevant on

very to be there. actually out to strongly we market the performed we against So what know volumes

you're have market the geared is cycle a lot of I of some fallout. to like apps reflect market, think more businesses. if primarily different a And the going the in we you're a certainly looking things activity where it's about, you into a around AMC of valuation clients, mortgage at get of as see Bill when to on high-refi couple And kind for daily basis. going major the talked not volumes

we and to as So and we're really a of industry, the long we into the a take service -- We second we were XX% selling the XXXX year. for margin where we it's But with a of actually of new obviously -- pick talk We up which investment had of a pick of great lot get now, A as continue I XXXX. And hit just regulations. organic But about sell-in. up, was around a bit saw that up -- there. getting the year. time, is product at that that And clarification good. I and we'll over think little half kind point growth this kind throughout the thing service. in slower we're in think

great And example I AMC think the a is of that.

in think my of shape for I there, year. good well the pretty in view, positioned we're where terms So we're in

some seasonality, there PIRM, about talk in you is that if think I business obviously.

-- about terms That's repository. pretty right you're talked seeing investment, this of the got new a the you've in virtual think, driving the data consistently. now. data And I margins we've We're heavier And where visual, repository. in

investment big of on spend, a the the of company, It's in part of that. part what the support cloud

So to over a to the you're medium-term. going investment see short heavier

But through margins. And up, That investment. still really or this impact so. we those for last an when on been they good margins. They're the of back that's come has going through year get should period

the partnership But they that Because client moat with us. a warranted. it base investment's we're and value is Because essential. -- it I demand level builds the to strategic the think well creates competitive the

and of on about last a of amount is, margin that investment. thing areas other the And of talked impact fair a of the depressive cyber we have short-run. We do a I'd the bit some have say, in the

to But have do knows, cyber And the to is everybody as a money. have you -- you it. spend

get our of there's -- little all super segment. bit course, they So, of is then seasonality a The pronounced. that. also in not exposure of is FX that And

a area. XXXX, business into I accelerating But So fairly there. in think see organic that pretty number pull-through, in well, to going the the significant, XXXX. we're performed And that's

Tommy McJoynt

in Got the point obviously, you following I investment see the, made. stop you're that, more and upgrading spend, kind you cloud technology. guys And data be will pickup guess, really of up of you margin? repository. the where, a never But when kind at do on of the the in can you you you And just happy see that with a investments

Frank Martell

Yeah.

because, we're about the So way, this, by it our run obviously, -- we and through -- P&L. talking we we

October that as announced XXXX, boost were And that in to is everything area. believe, I or I so So, think, going the I I investment standpoint, remember, in transparent platform think, from of we I there. fully

So continue think, we're investment. XXXX. you late over say I'd out. saw to But initial hump we'll have we that the in in now XXXX that, of obviously that and levels I elevated play did XXXX

it But P&L. again, runs all through the

it. you're something repository's jewel core enable company. But So certainly, just of will the The company. And it's crown the that that's the seeing of market leadership. the data

and is also beginning a are efficiency there savings significant and actually with investment. or the not, component there -- grow in to an of here, And for at a XXXX, is significant a pace. will perversely XXXX example into believe it growth continue in Because the element it GCP

a through, you growth it again, of XXXX the get obviously, element efficiency as these run-rate. element investments, themselves, XXXX. But to so and manifest see will then, And in and be -- will that there's some related an we

Tommy McJoynt

them? Or for those the are for through that are the of is to model, XXX% talk switching valuation contracts? type valuation signed with -- just And orders is work, lenders there there two Thanks. transaction of that could And your dependent? contractual new any fulfilling Okay. still what you the mention floors over you then top XX

Frank Martell

we you -- did reset the to for have. of company is appraisal a work lot know, kind we this we -- So of as that

different We the model have than a industry.

We have employed panel. a fully

technology, element. done technology heavy we've what a a introduced And is

have us a of cycle And lot to experience automation, improve, times. we So this. related the customer has also cycle, allowed in improve significantly which the the to

origination orders. -- the these primarily the side, mortgage is a are They're on appraisal other vast So, but few on the mortgage do majority on things, origination we although, side.

of revenues. be in about, be would orders the, And That's volumes. they that about overall would we've would about valuation come -- client's as talked driven -- based the X/X on by they that's

We've been have And area a added in -- dropping, is a revenue. to as the was -- And high-growth platform volume. those us regular we've portions that of recognition of revenue versus pure revenues for the been there's more that XXXX. kind that

to There's volume-related much that. But portion. valuation the it's less than some

Tommy McJoynt

guys. Thanks Okay.

Operator

Thank question Peller you. our from We'll Wolfe Darrin Research. take next with

Darrin Peller

Thanks guys. Hey for time. the

just UWS you're market you segment. guiding context flat first me the of about origination a ask, towards gains. about on starting for the the think we -- that units, Let again, share talk When

can the but what that you expect? of are you What for o, rate just expecting segment mean at growth guys, that? backdrop potential we to for a I guys of flat market, overall, outperform the least given

the on margin, coming me, I'm And wins that should wrong, That pretty if will a obviously right? growth new well. grow I then valuations And profile. obviously, good correct have you piece, the think, at help

the higher coming given revenues much, and also platform-related margin. Just they're much

overall the the opportunity impact that year? does how segment So for margin

Frank Martell

there's two Darrin, say, I'd this. to elements Yeah.

number So very think, drivers. we've we strong of a I I a -- And side and talked growth of think, about growth got, it. again, there's

months on AMC, scrutiny lot of each units, I last would having portion goes market, gains, of the a the that the before we've across so. But orders there's business say, that, because revenue lot had over by flows. clients share and or of said of and the of Again except a the actually XX flow regulated this

into more to a we material starting get in, way, are They in filter XXXX. as

share talked AMC, see, you'll gains I So impact. about. The

expect very strong there. we So growth

that The that we're few significant. of they'll a excited going generates. it's super platform flip the that, we more about. And products have same segment not that that new side be the side is, to be high-margin then, of But

few like, have suite, market. a the things are Things other a that verification we hitting borrower

beyond. and growth, segment think, that in see XXXX you'll I So solid organic in

it's So by driven -- about. areas, and I those really talked

Darrin Peller

share guess we expect I I you the growth mean, when clearly like the but do more underlying And going should this in property growth market has of business should wondering got more in credit -- that at sure. the might the of least you're there. at any still point. a its with for I'm how drive competitive the Do at Okay. market? -- drive it anniversary, much grow just you pretty view good mean, can again, at look obviously better That's dynamics -- you to helpful. line your piece outside valuations I in be is to still seem AMC market or flood

Frank Martell

Yes.

I there's gain. share So think always

we a take market always We share gain. positions in the businesses, have flood. ends some of in high there's I in did number but lower of share think And share

example, year last there's thing. so of For type that

think as is I opportunity there and tax in certainly well there. to well in grow credit as

cetera. been because credit's with requirements of But et shift Jim there's in that been on now. shifting, right terms as more a we've share good and think depending volatility in So clients I got market the momentum shares bit mentioned, their can

where feel each strongest So outsized re-imagined that. there's the But grow area of the good I gains think this right in we're have with room to clearly areas going the in I now to AMC the year. momentum shares about

Darrin Peller

I more X%? That's risk growth it relatively if I And organic you the to to can or out little property curious X% that? what mean, maybe Look, -- growth me just still as flattish. curious back on end down bit side you rate I'm get if management I'm look, great the ask a mean, see at the that reaccelerate was of wrong correct I'm the follow-up there Symbility. drivers looks like just is hear. intelligence I the -- guess I to one day especially the

Frank Martell

kind of the we I of last things market for Australian I the One think first I of in did think compressed think for so number have is rate as a decades. time three think the Look I a I couple reasons. organic like flat Yeah. -- would year characterize But Darrin. growth the

down of guys those have upper volumes. teens the we in So were in market terms

how amazing in these currencies some it's dollar. are of Currency, low the U.S.

So, that a there. took haircut we

offerings the product product going -- fundamental are offerings pretty about good very client market. strong. hit and I some the the think relationships that very feel are I the significant to

I on in organic an So good trend to growth about XXXX. feel where can get we

to and we're working -- hard make reality. that So

So I think the say of the to trend growth flat kind I'd that characterization, within is right is segment. accelerating

Darrin Peller

Okay. All Thanks guys. right. Thanks, Frank.

Operator

take We'll Compass question you. Thank next Gamaitoni our Point. Chris with from

Chris Gamaitoni

call. Thanks Frank wanted free to start Lots I for year. year. taking this on my cash of flow. Conversion XX% was this parts moving

to what moving outlook is wondering flow Just conversion? forward for the cash free EBITDA

Jim Balas

Hey, Chris, it's Jim.

investment cash there. and On yes, the wound of a levels XX% We our but in the we flow, higher at things of associated some with free spend up initiatives. did have for couple year, levels

XX%. kind that, year XX% our in to to of well would XX% that have to we range kind finished normalize range, If XX% within XX% target the for of of XX% long-term course you of which is

was there elevated investment. So

and some the cash little look going was If that the a we taper on investments then on flow down. had forth, that and you the of CapEx higher so helped that

Chris Gamaitoni

revenue? much XX% I'm what's in deferred accelerating just was it of refinance influenced lifetime to $XX versus core dynamic the understand revenue million. tax, property refinancing On How Okay. revenue by recognition remeasurement trying that was year-over-year the -- cycle? growth up kind of

Jim Balas

the the in in XX% of ticket there's XX% rec think unusual some first pick somewhere that We year with the rev between on side we of current to generally period. client tax. And don't up things then did I anything wins. have

clients So a during that lot volume new of the that we quarter. was added and

Chris Gamaitoni

good. valuations. AMC And the detail on fourth you us the website gave you understand X% revenue? revenue By quarter That's Okay. the it's the could transitional of help of

I'm You I kind out the currently of mix comment one-third. of this trying is numbers? gave? you the the AMC how made that these your take that excluding What's new revenue understand in if much AMC to is valuations number

Jim Balas

in million okay. AMC. the got if there between the calls platform that line you It's the at XX-XX Oh, like a the -- -- with supplement, We've were look it's all talked of past you. I north businesses. on about item without the the $XXX platforms probably valuation on collectively so

you number. should help that So towards the anchor

Chris Gamaitoni

you so helpful. That's very Okay. Thank much.

Jim Balas

Great.

Operator

Thank with question John Campbell Stephens. you. next from take We'll our

John Campbell

Good afternoon. guys. the results. Hey, Congrats good on

Frank Martell

John. Thanks,

Jim Balas

Thanks.

John Campbell

the property on I it. to recurring Back check you kind I a the guys that. business, revenue there nature have know of pretty stream want to much tax is to

just mentioned in that I'm I good quarters? was run jumping to rate just XQ there, for a put guys getting that next the make quarter. want You off revenue, the growth sure to guess a three good I'm -- pure is the a point over but the

Frank Martell

is the works. model the revenue some with way tax business, the There seasonality

that closes. to is going So through a most it's not XX But seasonal it. is loan part going loan product to be closed the linear a that something But shooting that -- a them. is there thing to is it's important recall to XX after days

go invoicing and through the and and so when order process and and forth. That's payment -- the get we'll get

market. So it the does lag

due softer it's not result That each we're be right But of over have So year. solid a that QX. quarter to now. as volume QX. a that we course pretty of linear in result rate There strong in activity first picked seeing the to the growth of in should up had the the a is going We quarter seasonality. some all

John Campbell

helpful. That's then And Okay. contribute guessing did I'm quarter? pretty is minimal, the how much in this NTS but

Frank Martell

Minimal.

John Campbell

Okay.

Jim Balas

comments of it. the I to was but small, earlier. one raised pick It's I up that think got

gives a period area some If commercial This more operation of in tax, that an an space of time. We've you us look it's significant lot scale. had opportunity for us. for at

small fragmented. it's of in although, grand So things scheme now a it's right that's pretty the pretty TAM big

opportunity. the excited we're So about

splits But go forward. we small. it's right it now grows bigger think hopefully quarterly as I much

John Campbell

me. for question Last Okay.

good the On was UWS margin, that really results. really,

some guys getting think from gross bps talk OpEx pretty maybe the the mix versus lift degree you're favorable, margin I just that's probably I standpoint? XXX know the you overall Could product you there, of UWS just shift year-over-year. saw to leverage?

Frank Martell

you're think putting the efficiency Yes. driven being at the I more platform. it's you would margin don't through volume look I -- I that that performance, that of mean, platform. by say think operational the I John, if

may the underpinnings from years. a margin think of that I one We're benefits tax our working XX% we've of recall team -- that seeing couple the big the automation on for was project that. of you been

that So you're mix operational and be of Because volume hundreds think taking. if related be into get mix I we of of we're in. could play mean, per revenue about talking any are of it The could day I -- seeing play these to more quarter, then a are coming the much thousands loans, into types it platform efficient with some we're And being as coming well. thousands what boarded.

-- So bit. play it's little a mix a can

think more is, I is automated. thing But the big platform the

have a clients. -- outputs of better the digitized the processing team infrastructure We some the has and the to

think I some have savings So there. we

driven pretty it's by So that. much

gross OpEx. margin Firstly,

John Campbell

Thank you.

Operator

We'll from you. Jeff our next Meuler Baird. Thank with take question

Jeff Meuler

Thank Yes. you.

the you guess, while I ago. at guidance the margin out congratulations So, and XXXX on achieving target set a

much to the the guess, from kind factors intermediate is the in view So, key is term, whatever potential get margin So you of next? I you what's now do as business? how what XXXX next? to that more question there achievement just And long is this Thanks.

Jim Balas

Jeff. Sure,

I lot market and been mortgage certainly. of about part a I we've related. pretty I the lifting basis done the of And to mortgage And we'll be. been would the think talking mean, the has a up the been will macro margins refi this say, I job, a look, it take challenged Because, points. it's has environment yes, continue an I big So, it in in call market. amazing think XXX, And XXX team volume upside think, throughout

say, came But a team efficiency product think margin. on I with of the A it impact. becoming a great would through, side lot bigger mix job the the I did

-- or three platform business talk four we valuation didn't years about exist. the the ago, So

high-margin stream, the revenue Now example. it's component for a of

to we'll So forward. margin we both say, additional go efficiency, There and in drive continue I'd business. mix is as the accretion

expansion I want XX% But incremental say we margin. think, get margin should through our the would I XXXX to in on business. expect you

of of have last years In Obviously, my above the XX experience AMC, about businesses to companies a their that rarefied getting in And that, to are are that, I'd do say models analytics most years to XX important, them things companies. tend couple lower we terms we in nature. but again, reimagine can into like and you're data that diversified talked up. is information things in air we there XX% little bit most in get -- margin a be so, by or those but the

the of look from margin. So you at to see from margins bit will of far how a perspective, excited be accretive. financial overall a if point at a if exactly it just which, trajectory I'm on little on view, it, a it's it drag you go the look team purely things like can AMC, the But and

sure expect like I room not can planted I at acceleration, I'm we think, believe, organic look put So margins to three-year grow. just the we still have -- a flagpole target growth I I and in But a have time. margin based out in-flight see would, some what point there the we again, mix. that have -- at this revenue you'll What expansion. we on

Jeff Meuler

in and the different there, solutions are have that the worse, lots think of of just quarter or better which pieces there's some to kind you like big for I And insights, have trends? I help markets different screening. the was doing ones Okay. help be pieces Thanks. you just break Can Australia, think maybe sizing in headwind you there's U.S. the But, just, up if us could rough break would it think, tenant since this big helpful. the you down call the you different and down within of sell obviously of sub-end a couple then, I property

Frank Martell

Look, analytics, think in That's have the the doing say, analytics speaking, I and you business business broadly would pretty well. the there. with Yes. -- data data I

valuation we're We now, in, growth model, example. valuation AI-driven it's as an High example, an test area, launching We're growth model and in rate in which very accuracy. the and for have high good about. excited pickup

that is decent-sized So chunk. business a

piece this say, which but growth a also, other think international there. Zealand is the year, the about volume-driven say, The kind chunk market And is in we U.K. is market, Good New is I or smaller U.K. talked I -- And year issue. Australia, an in a good. bit FX-driven growth big the last of, would which in the I'd issue good

versus of projection because down this far we've year. year think the is growth a I gotten so this positive year bit rebounding little I market year Australia, a in thankfully, think, and for And

So that's data-intensive very again, two of those platform and -- kind businesses businesses. are

revenue revenue and durable characteristics have they good characteristics. So

a business the in line. last the Tenant It's kind little we screening quality but challenge But a think, that, the a drag. Turnover of flat. with is not And kind good number. small again, lot couple grown have of one, there. that, is has players. it it's bit I a business, But end-to-end solutions of big business That there's in small been a point years. -- has been of of not a

year, think we're see I this PIRM in better So to going in general. picture a

and analytics, better see picture, a in think, we data I should Australia.

which you're underwriting into And we of think the going a I insurance cohesive claims spatial, I was year. package, think, big carriers platforms and that. makes the us in last bought The relevant see idea the in U.S. to Symbility put December to So, to

so feel I a about and discussions doing it stuff good of major some been and think the with the dialogue we've periods far, but and players I we So, about don't lot that U.S. to different talk across want trial

So, little flat. come and a more that been is of that bit business money of but on -- a kind makes to lot

didn't like before. I guess lot storms year a fortunately of we had year we last have the

the have we're lumpiness to that there always little business in that coming year. a that a that going a business profile. that again, But So, and revenue we lot weather of so spatial new this of able bit generates events when are to -- storms sell be creates layers revenue

little think of bit spatial see well. bump I a as will So,

I all similar of areas. think in to a kind theme again the all So other

growth. think organic a of for I planted we lot seeds

in to they're right the think the us of on the as margin spots accretion well. help margin I

Jeff Meuler

Thanks, it. Frank. Got

Operator

from Thank take Kevin Kaczmarek question Associates. next you. our & We'll with Zelman

Kevin Kaczmarek

right? Hey, as guys. there's analytics spatial? my Thanks FX headwind in would insurance Within in the -- none all question. the -- the line be revenue Not taking for now property Intelligence, Property

Frank Martell

insight Correct. line property item. the It's in

Kevin Kaczmarek

Yeah.

Okay.

Frank Martell

there insurance, -- but corrected let I stand quite me it's -- actually modest. There's is the a little bit in

So the insights is in line bulk property it the item. of

Kevin Kaczmarek

faster know then you give the I enhancements the maybe I Okay. the discussed growth. us also when benefits development but you you that? better maybe start or aspect. And seeing regarding the revenue expense product sense mean Can of talking a and GCP assume you're growth migration, might we mentioned I about potential Frank, benefits,

Frank Martell

Yeah.

there I performance type recovery the of systems So, benefits, help us durability benefits think and and And -- public GCP a backup offers there's thing with quite one. is should that resiliency and are there of Kevin. and some that lot a cloud the are -- money. save few And

I think and example which though be our data drives which visual repository, biggest give the vertical building is we're imagery that to you agnostic. being built is smart would platform that I our our

we which sandbox play is the to on cheaper can don't that also that access do as of and best-in-class, game, is as allowing advanced the this offers a verticals. opportunities, in really which technology. repository old with up we can clearly us and to able then kind can't way do something vertical to that API we I get we data much but do that APIs customer not think apply stuff. our in and us And gives analytics we new It easily. that that different So, that think do to adjacencies now, the opens some we at do apply we're that ability And

about So really talking That's is there. what about. that I'm really -- and talk growth enablement I

Kevin Kaczmarek

what what that? customers and verticals estate you oil like mean mean? Is do Okay. that real gas by And verticals? you or or type Like by a something

Frank Martell

is big Public a one. sector

Kevin Kaczmarek

Okay.

Frank Martell

capacity public of to if increasingly you insurance at consumers lenders -- and look lot a facilitates which It but at think you I outputs, have a are geospatial use and of geospatial the going because this and carriers. but kind point predominantly And then sector, that our that, data you're of traditional minor. gas, it's we presence the where versus relatively telco data a that generate of say to in, power have. stuff and lot computational kind that had we've oil yeah, more I'd

Kevin Kaczmarek

right. Fair questions. my for Thanks enough. All taking

Operator

our SunTrust. Thank with Jeffrey final Andrew you. take We'll question from

Andrew Jeffrey

give But, Hi. on thinking I wonder spatial. Good of insurance in and appreciating there dynamics about terms late, pricing sense power you I apologize I and if going can on I it. so volume jumped you what morning, I'm us price missed the maybe talk can a like? the competitive little what's in question. in guys, if And across particular environment's of some the business? of kind just versus

Jim Balas

scattered Yeah. have Look, competition. I think competition, we

couple been area what for X% last on talking to effective say depend of will that of X% it have we're here. so, our increases years. kind about And I'd price the overall

much higher no and Some kind are are increase price some of depends.

of of is a -- have living them long-term lot some revenue contractual, of cost has our We contract some of adjustment which don't.

that to we is clients I'd to power. of I thing. most would we're have same And I'd doing our general, trying more of pricing type feature thing powers pricing characterize I data to our get enhancement say, it the in say efficient. everybody or it relates moderate new -- don't because set think do

not to they're just you grow do in price discretionary going let and So increase.

like raise get our like years, any of consolidating X% we enhancements, think service and to also, on services get couple inflation the X% we've price We'd to we've Again years A feature a offering. -- gotten et think working with cetera. of is -- think to I goal consistently get it to percent. I able our kind is. -- been ago to through I And enhanced up And price. we'd But been into of workflow didn't it cohesive stays we aspirational Last it. assuming level. to where couple couple of get

Andrew Jeffrey

All right. Thank much. you very

Operator

you, today's This and Thank gentlemen. ladies teleconference. concludes

disconnect. now may You

Corelogic (CLGX) 26 Feb 202019 Q4 Earnings call transcript