CLGX - Earnings call transcript Q2 2020

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Operator

Good day and welcome to the CoreLogic Second Quarter 2020 Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Dan Smith, Investor Relations. Please go ahead, sir.

Dan Smith

Thank you, and good afternoon. presentation for call the investor our we our results financial second to and where conference present Welcome quarter XXXX.

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

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

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

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

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

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

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

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

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

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

Frank Martell

divestiture year and discuss reseller for few dividend, finally up share the increase then me and our our guidance. the wrap for how COVID-XX and quarter for financial recently quarter with businesses, through quarter, us earnings we’re will value shareholder Jim timeline impacts XXXX creation in unsolicited provide outline second in major XXXX and Thank navigating our I you, billion repurchase good pandemic, near-term, Thank session. results financial our $X the our second for today call. Dan and highlights bid a our second CoreLogic’s full and we of everyone. planned operating our of our joining strong quarterly morning, I’ll Today to returning and you we XX% on the a financial detail Q&A shareholders with before finish takeover program. up third the comments regarding quarter received will follow the

shareholders, data, I to we to want Before as XXth residential clear past market congratulate in into have Australia fact, insurance just that in anniversary markets CoreLogic’s celebrate company. begin, America, moment over publicly and in employees, transformed a I our a our property the Together platforms a as decade, take our power leader Zealand. clients X,XXX-plus housing we North New CoreLogic related and analytics the and and traded finance

X%, on an adjusted XX revenue and billion grew past XXX Over compounded years EBITDA the basis, margin the EBITDA In XX%, per we $X.X annual returned adjusted adjusted process, earnings over shareholders. our to points. we XX% share basis

which company a superior is unleash revenue period to of all decade in blocks drive of margin place and value by creation. outstanding CoreLogic and the our and confirmation unprecedented a clear results. COVID-XX financial Turning the second first presented half our our quarter as entering the shareholder fundamental its building second Despite delivered growth, challenges strong in with performance. should to stands pandemic, turn performance financial operating that

organic points. little significant in for were basis pricing over of to and over first approximately enhanced largely the from share first up Adjusted upsides $XXX EBITDA company growth wins were COVID-XX XX% the million other million completed four the in for XX% in beyond. first from secured $XXX adjusted half year of units, and QX, and quarters propel growth of which noncore X% exit and EBITDA gains. up XXXX normalizing future AMC and the the hit of We revenues last Over the of X% solutions quarter mega XXX technology of up first XX.X%, the climbed half three total was year. impacts transformation half second benefiting should Organic share and and/or gains new that margins a

leverage our returned the also and $XX shareholders our We over forms dividends covenant repurchases million reduced and to of in share debt significantly.

cash free and time record months, and protect clients. Against at exceptional Over navigated successfully performance welfare deliver backdrop, delivered reduced shareholders the changes will outstanding for here do growth, on as flow our but a for challenging to the later, are the the bit we just a revenue dive past deeper shares. Jim highlights our few begin operating teams substantial this necessary drive quarter profit our of health capital profound same through and and the our five as significantly well people that a we should to to believe expansion CoreLogic multiple return our debt. second

delivered significant growth insurance strategic help half carrier of mega to increase to gains we insurance win in and normalizing revenue favorable beyond. mix. cited the These XX% wins share and growth of Revenues continue year the and insurance I wins a next-generation strong over up are First was factors Organic earlier. us solutions, very integrated including growth a solution. secured will this for regarding organic and for top top CoreLogic’s mega two other and five line, spatial X% our we U.S. back

core market paced mortgage and Our profitability gains by continue strong volumes. as as revenues well rapidly share expand

our solutions. seven are of XX with underwritten data one every U.S. Our using the mortgage market to operation essential finance in driven more the U.S. solutions housing mortgages out of the or of

quarter. operating us up the delivering adjusted for higher, to Our and operations of leverage, $XX benefit significantly EBITDA operating X% lower were profitability income continuing million respectively. The was by margins by and Operating mix while XXX revenues. allowed from and in $XXX up points million of income fueled up productivity basis our $XX and to terms, cost XX% were productivity. net margins absolute higher XX% and Adjusted million favorable operating EBITDA leverage stair-stepped costs and

the debt generation XX% return capital we up cash for not $X.XX, our to we which and $XXX was or our and certainly shareholders EPS least, leverage power adjusted free considerable quarter continue down QX, of to Last – was reduce use times. paid to adjusted XX%. flow lowering Finally, million totaled below levels. million X% Trailing or of X covenant $XXX month debt, EBITDA. XX cash In

also to We shareholders. returned $XX million our

per market increase our able over quarterly our durability to have EBITDA cash our well been cash The dividend in rates XX% of of $X.XX generative from $X.XX conditions. above announcement adjusted model We in deliver past flow generation free the all a decade underpins XX% share. today to

announced of to in the repurchase than $XXX to our XXXX. XXXX. is the $XXX remaining share million This XXXX, least our in current repurchase later intention than at reduce shares our million no a program $XXX million by of we $X more our In count XX% share more today addition, billion in and XXXX, expected drive authorization repurchase and accretion than end XX% of

term Our long-term commitment for consistent and strategic company. remains capital a to significant our imperative

as discussed. our based and share revenue on first was, just half expanded trends, well that as strong accelerating I gains profitability as Now, growth as competitive wins

shortly. and of our even our guidance We’re to discuss year the second quarter for XXXX will Jim full half third the updated ranges stronger looking view of an year. ahead

four target secured of far XXXX contract our in of wins, beyond secured including wins of this this XX% mega by have specifically, revenue year X%, assumed year. we Looking so terms growth approximately organic

impacts recurring XXXX solutions in $XX HomeVisit hallmark solution recover attributable expect further insurance addition, million XX% and in benefit adoption OneHome to have and information In integrated million COVID-XX our of a service expected XXXX. are a expansion nature, provider. next-generation national foundational we approximately financial importantly, the XXXX. revenues Further our of of are and must benefit vertical to of $XX to our the to And largely the of

achieving targets. XXXX us gains our our business as performance share contracted conditions wins financial Our as confidence market current high XXXX and longer-term well give operational internal plans and and in

As beyond, a as XXXX businesses, we’re generated solutions. businesses $XXX also rental divesting and on tenant strategically revenues margin our aggregating June which screening of and million verification These trailing XXXX. lower reseller we basis XX month credit at and XX, approximately borrower provide look

While which The expected these continued long-term plan and early they revenues to to in set are want to third to do longer-term shareholders volume by thanking retained the in will sensitive basis in these of points margin to their close And possess characteristics by XX% strategic CoreLogic’s are conjunction of our total businesses revenues. XX% ongoing with Approval targets. than these and and year this by line greater growth margins conduct strategic quarter. early sale our in market affect forma our financial was XXXX. divestiture leaders, not increase subscription now EBITDA basis support. Advisors I divestitures our of on for a to employees, board clients pro in are approximately processes, share these businesses XXX also to is efforts. planning to management raise with the for delegated commence

As we and landscape. CoreLogic other of and our emerged that integrated, for comprise public strategic anniversary celebrate the a housing innovative has and XXth data-driven thousands as every an finance as participants virtually lender company, partner collectively insurance

to turn back platforms, positions, growth and and data accelerating client to millions I the people and Jim. economy which ability buy and protect capitalize collectively the the on Our they market leading a homes help now connect revenue housing performance global of love. unmatched share will financial call over demonstrate find, our

Jim Balas

discuss to updated second and guidance. Thanks, XXXX our provide and on financial morning, I’m quarter structure going views Today good results capital and financial Frank everyone.

and strong our performance in while delivering employees commitments client quarter mentioned, ongoing safety of higher quarter providing which effects and for on Financial and crisis. by and As was highlights of CoreLogic of delivered COVID-XX health the impact our the for the growth Frank XXXX, total COVID-XX X%, exits financial approximately second operating the first, business included; of XX%. adjusting XXXX revenue for strong after the amid

segments momentum growth share X%. rate organic on an contributed continued of market strong across to both Second, revenue gains growth as

beyond. added quarter, expected during revenues, XXXX outlook we addition, for are which well major half to our and wins second as as client the XXXX benefit multi-year In

shareholders expansion XXX gains. of million cash flow. Third, in mix a represents driven more of $XXX basis. rate growth, basis Fourth, free of generation favorable XX% $XXX the in points a million. month than by significant This adjusted reduction And of our EBITDA debt to million business $XX trailing conversion and return on productivity margin n and XX EBITDA capital approximately of finally, adjusted

or driven mortgage core million $XX up million, insurance X%, $XXX totaled by revenues and in growth and quarter spatial. Second

our quarter vertical experienced included units driven million independent default transformation, Also, gains AMC sector origination UWS we by largely pandemic excluding mortgage as Revenues were related to XX% client and As related valuation strong our $XX of In gains. in segment property number solutions impacts to will fueled these discrete significant higher revenues in $XX mortgage million press related our to million second platforms. and XXXX benefited COVID counterpart. X% in no I a have were both approximately initiatives, technology the UWS UWS $XX property up revenues geospatial business. secured totaled million more we release, lines revenue than and which of from and impacts solutions, and our second excluding XXXX quarter, in share unit share XXXX in million, revenues were or mentioned the items. tax these segments. growth noted COVID-XX public contracts and non-core release, up related of revenues of market approximately items. both included attributable flood new million UWS $X the noted the transformation volumes press market quarter earlier, $XXX $XX XX% from while sold in organic volumes up XX% including during growth tax that discreet across by multi-year the Also wins, benefit results. future insurance, we growth

revenues. of the As in unfavorably into were $X within strong related beyond. compared in to second contraction. earlier competitive XX%, prior tax PIRM impacts, our balance XXXX reporting, generate confidence XXXX, and in the by in while us we mainly high fell revenues million year, revenues volumes by activity we million this million that and second the of $XXX quarter XXXX give grew PIRM on alternative significant year. insights, impacted $XXX takeaways credit In related insurance project-related look revenues credit property will and and spatial half approximately housing announced approximately COVID-XX our credit of totaled mortgage international growth and COVID-XX businesses auto

for PIRM property and COVID-XX effects, both and and insights higher. revenues Excluding were spatial impacts insurance

year strategic remainder prior a carrier quarter, up Looking for totaled mega the Higher principally period. U.S. attributable operating top continuing to PIRM, ahead, segment operations productivity. leverage, compared business a will recent our wins revenue the five and support including $XX beyond. improved in growth of cost momentum second and Operating and win million million mix for to operating of $XX XXXX same was from income growth, income insurance the

as income basis growth, Adjusted to to of basis PIRM PIRM and productivity same ongoing higher benefits year performance $XXX up principally prior lower $XXX strong business million, the net period, due UWS $X increase driven leverage spatial period. operations revenue an XX%. compared to XXXX. prior the Adjusted adjusted Adjusted discussed margin of which COVID-XX PIRM were XX%, adjusted compared cost benefits approximately in screening million and from and compared $XXX and $X.XX, increase The company’s gains. in from margin of international prior year growth of lower an by XXX a benefit up EBITDA increase EPS $XX operating continuing offset in Higher programs. EBITDA impacts operations increases approximately over to were was insurance operating totaled $X.XX tenant the year the in million and EBITDA volumes adjusted quarter points. million, Second and totaled with increase previously. million XXXX, continuing for totaled an translation. an adjusted $XX margins as favorable million, continued and revenue prior EBITDA costs, EPS in the EBITDA adjusted These with $XX the totaled margins productivity margins $X.XX currency from same by of $X.XX totaled driven million basis XX%. points. compared and in was totaled period. $XX the points increase XX% year. attributable of XXX to well UWS grew of loss reflecting the EBITDA XXX Diluted by mix, adjusted same mix million EBITDA EBITDA XX%, improved was revenues,

A XX levels of cash strong months rate $XXX adjusted flow flow of XX last generated for free XX% ending cash we totaled XX, Finally, million. Free the June months XXXX. EBITDA. conversion

and dividend In we paid $XX million of debt with distribution. shares in earnings debt terms and the of with return, leverage capital our times. second quarter. X.X our our $XXX to lowered our approximately in We Further, million we growing shareholders repurchased quarterly combined we than XXX,XXX covenant capital to more profile, returned

September quarterly increase million paid be cash approved to As a XX% Frank annual of in return. mentioned XXXX. share, the week, $X.XX This increase $XXX represents Further. capital earlier per Board this dividend to our approximately starting in

We maintaining shares, continue to maintain flexibility to repurchase while a prudent leverage profile.

financial anticipate we our the time dividend discussed, have we increasing As further over grow. results as

flow the Finally, of strength given of in Directors strong early of authorized profile cash our the and July, the earnings repurchase our common Board of generation. increasing shares, $X billion

$XXX XXXX shares to XXXX. expect $XXX of million least remaining of We in the repurchase in million at remainder XXXX, and the million $XXX in

Regarding year our as financial revised guidance, full we follows. our have XXXX guidance

$X.XX billion $XX adjusted $X.XX expecting EPS of include EBITDA and million of These EBITDA $XX COVID-XX million We $X.XX million related revenue $XXX to to Adjusted to of adjusted $X.XXX million and revenues share. $XXX on approximately ranges to impacts each. of are now billion. per

XXXX, revised we achieving of targets term, $XXX million high view second to the be continue to Longer million. adjusted supported volumes both first will rate patterns in based in XXXX in set million guidance unit growth strong the XXXX forecasts our of and we over increase revenue to of and levels. pipeline. XX% be by million our third seasonality ramping With have It by and $XXX U.S. that our the and revenue These in a addition, quarter EBITDA noted $XXX for that increased conviction results. a our in are of of contract range regards relative should acceleration guidance to approximately volumes, range high expect a continued to to In our half reflect adjusted ranges half wins full we year implies financial XXXX. normal segments and in and current out $XXX XXXX of sales operating growing on EBITDA market mortgage the

and XXXX. the criteria broad-based although for both and in levels of mortgage to which Frank foreseeable growth declining population significant the continues unit elevated positioned we concluding are our to in go refinanced eligibility major Historically forecast volumes strong low to I call CoreLogic are To market be refinance place the quarter grow rates, loans that to existing are Q&A. future addition, profitability purchase The for this we of before in market second money support revenue likely results drive thoughts In team will all back your expand and in to XXXX through period. the loans, Thanks for and forecasts. forecast at least now in volumes over assume and summarize the for and support. the turn beyond. well some the meet year delivered

Frank Martell

threat, I’d like Jim. publicly Thanks, our on an about a going to positively force at special share their shares over in of to of share million to guidance. out of We time Senator, with the hostile laser time first to want Senator ownership Holdings out to CoreLogic today it Cannae June This per press commitment to be or shareholders to that or close traded proposal or our Cannae received the Fund $XX.XX as X CoreLogic June With purchased for unsolicited the call increase learned the from no proposal, our to regard remarks CoreLogic matters came quarter accept to share. second attempt business to public Senator at increase support board meeting recent inherent the highs had and to company comments proposal post-market Senator After $XX guidance, with prices a their their to to Cannae interest position, received value to opportunities in their I bearing financing determination Prior thorough per directly its our blue. focus a we our made company. appears been discuss release prepared including provided $XX hasty response and projections, to Hedge very per public, and very CoreLogic’s management multi-year engage advisors a on intentions with creation. bid XX the creation increased unyielding shareholder based announcing plans XXXX plan, based ability that from regard board. were to on our which Last on management it its significantly achievable financial XX. purchase. with some multi-year CoreLogic the operational the of week, did their publicly confirm barely public facts their internal XXXX the are forecast rejected and $XX and and senior unanimously increase that We advisors which and consummate response, members proposal, value, believe the by Senator our review and and value visible and board, to proposal, having our transparently despite of markets. and board plus declined the Cannae a to other trends. to on with Board’s which previous on and our XXXX guidance had made the access are of announced principles projections, XXXX, supported discuss undervalues strategic demonstrable financial and After financial

on forecast track commitments Our on record for and delivering itself. our speaks

XX% repurchase our program and as businesses, divestiture as $X be shareholder dividend. profit billion materially of forward, higher share the enhanced will lower-margin our by well margins Going reseller returns and our

the continue forecast plan controlled the provide improving and can of so housing pro know our To to into provide all management, to value our Cannae exiting reported crystal is robustness prospects in the public open regularly long of to repurchase of an media. market and business rapidly provides in current affiliated clear, however, on CoreLogic’s the space, and generating foreseeable remains that the shareholder and appropriately program the create Board estimates businesses our forma through fully well and will and documented value finance team the closing. be potential housing of transparency paths and share underlying to of our offer for well the management would reseller all Board for have that history We the separately. significant We The property housing its value. dynamics a consider their residential shareholders companies certainty and/or widely creation. bright market impacts substantial CoreLogic’s appreciate and future. values company

the in transparency, than of the XX Over – XXXX our Cannae-Senator had delivered threefold the XXth value, returned to and and had prior value, bid $X.X return risen billion consistently dividends. From past capital have we’ve share financial in we June, operational in stock commitments. repurchases met initial our transparent our years, programs, listing via price and well capital more on over and shareholder and public

As thousands insurance an has the data-driven company the integrated I decade, participants other and partner every lender finance for discussed earlier collectively landscape. into strategic that transformed past virtually comprise over and housing of the successfully itself

outperformed our the consistently as financial pandemic. have We during targets COVID-XX mortgage through well cycles all current as

flow positions margin our that information the market I’m to peer and ongoing as transformed We and to we and line our call revenue and in over your going merit shareholders are Please and forward dialogue profile expansions generation peer forecast business on business, turn We continued that the please reduced Q&A. as We Senator-Cannae about multiple engagement. period. proposal. from this comparable for group. believe levels keep cash open questions appreciate the services with Operator, to Our the over the said should group received focused now questions. look leadership we’ve line say input can cyclicality all prospects. well coming our for the earnings growth, operator

Operator

you. Thank

ahead. the Jeffrey begin now SunTrust. from Please session. will question [Operator question-and-answer Our Instructions] Andrew comes with first go We

Andrew Jeffrey

question. can next a us? you for nature business in in year. half of be taking particular. describe bit in thinking will on a revenue to functionality I’m see this of wins. of And could numbers little insurance? elaborate big in the detail if sort It the for back insurance, a you you into the these bit the Thank the I that morning. Was wonder And exciting and competitive Good come about of takeaway

Frank Martell

Yes. Good is morning. This Frank.

us tens of of mega yes, So with the millions so the are value. wins in contract

framing so the there. just case about. In give talked some to specifically, insurance, of you you And

as know, couple brought have of one-third ownership ago. of that system we Symbility the underwriting with claims years which company, is that whole you management We we of thing the in. So and about a platform. We business, full a acquired owned combined our

we talked carrier relates particularly important with of integrated is for opens today, So analytics solution that insurance out one provides, win, the major this the we previously. you carriers We’ve We’ve data and had that it and mega insight because others, have the first market didn’t strategic the opportunity is for We it think in up up creates we an for the rest carriers. call insurance this solution. the us, major now marry American the the us it’s the end-to-end been in and North that have market first for on frankly, that win. that the the the the but the market solution, And when insurance very company unique about claims a to space. really really with

that So about. reference that’s what is

Andrew Jeffrey

Okay. of just the growth. share has enjoyed CoreLogic revenue of gains specifically gains quantify, you can mortgage thank your can cycle? the know big growth. wonder I I a that’s market And part to contribution Helpful, this about think that think how Frank, we you in you. always share

Frank Martell

been growth about the and there’s And the questions, important a the forecast think because thing some the revenue mortgage, lot stuff the about market I rate, most frankly think think, of I XX% thing I about put – speaking. of Andrew. into It’s Yes. important

lot XX entire last So the the share this We’ve goes beyond across a mortgage. months. of business taken

$XXX forecast for XXXX XX% in the million organic have the we embedded or think so roughly I for of growth. that’s

I fact the think given we’re that visibility the fact that’s that great midyear, COVID. given

PIRM think goes some And it leadership positions together. market strong I this look, across that’s think have, solutions we because to frankly. the both of momentum I of to the just bundling relates UWS, and underlying So

hands. safe looking it to people of for of relates Some pair

away in looks quality like I of solutions it the the in to as – we collectively and far leader some by our well finance. – the market operate our And goes mortgage mean of that in clear and we’re segments that’s services. and

So uncertain lot a this very in – that’s a of for clients. of safe time – hands a we pair represent

helped us profile the to So growth that’s collectively secure next for of organic XX% year. the

that. and additional degree, obviously, and so enhancements in. outside And it’s it’s about And that we a mega pricing, feel thing contractually then and and revenue some type accrue feature wins, broad-based, good But of the opportunities. locked have, to growth news we product that good is, pretty certain the

Andrew Jeffrey

I appreciate color. Thanks. the

Operator

question go Please next Wolfe Research. ahead. Darrin with from comes Peller Our

Darrin Peller

hone single so little All where profile. right. quarters in the I been of want the a X% for to calling on number are more you it’s a now. low mean And organic it’s growth I guys been digits, understand I wins. insurance

got done together. breakdown But some in on the North is on several analytics of relatively great So give behind us expectations your think, been clients insurance put last growth the flat the businesses if well I new as as a internationally, of America in organic given what be more it’s of, has kind can would quarters. new I guess the and a you which products, mergers you’ve and you’ve it and now a like does of real life lot these assets seem data

would the if blocks the environment? – guess, to would cyclicality, up business, of the it mortgage what growth we the back So question before, about I the out what are be of a rates terms of what pulled growth And in then expect again, if of from you that of mortgage-neutral rate parts be business on I these? more on a assets, mortgage-sensitive the think each we guess building

Frank Martell

Yes.

of And that’s been been nonmortgage, terms short ironically Darrin, impacted segment COVID-XX look, most in just run. as the So couple to, Jim things. by alluded the a in that’s of

international things really the the the the second most are if at Australia, locked know, two business Zealand of been stand So New essentially, down where you for as you segment, that quarter. that look out and UK have

that’s to impact. that’s going And release. a to big have obviously, obviously, going So

into down XXXX. going they XXXX, So those countries I if in growth XXXX were like you down look locked at don’t be the will locked in profile that expect organic

So those are as significant. Jim provided, numbers

– very international growing that’s So the piece other than nicely that, for was us.

market shares those trends, In and think in would areas, single to that historical to I that’s the not in those tremendous line reason there’s expect I have no the assume digits. case. We to upper with continue grow

there major have also We recently. wins

million example, had an of and somewhat a Australia, of For $XX that we value. renewal somewhat over a which expansion is contract well in of contract

on we’re under lot of good the But and that going is, spectacular – second to COVID. I this the you’re rough in is just see one So not reality look, is things going alone. I we’ve from are a area moment, the think quarter surface. had mean this results the at

The that impacted, is that we’ve tenant business, will disposed That screening which was of. has other business – declined. the announced be obviously, COVID area

it tenant volumes not the properties. Obviously, multifamily As screening, it’s you so know, so a people lot in turnover there these days, involves of down. are of moving tenants are

are of those So the two COVID areas. kind

if second win excluding exclude X% have the insurance the growth in We strong and the COVID. you quarter, – about mega had in

those XXXX are in good growth And So spatial, insurance there, referred that momentum. and half the I benefits. from second that perspective, good there to is in mega wins

the first in So they’re half. not

market the X% second to organic growth this So of has kind focus. perspective accelerated of half X%, X%, the and perspective, the we’ve overall to our fact I with rate a from line area Obviously, outlook. in from an think which is that and XXXX our accelerated we’ve been sell-side

COVID I that comfort that something we level then barring anomaly So or you move there. and else, level, can gives some an to it’s it something with think

had area. digital, is of would solutions kind in realtor of I is realtors. of think public a have of PIRM suite call couple launch momentum I terms the other marketing of services the around and in marketing fantastic announcements what very around in we We’ve exciting, thing our out visual-driven a for

being these in of We serves platform market XXX,XXX to we’re have huge U.S. a now. compete their Those some realtors a And more share. through services. in That’s a that the are world launched digital ability augmenting

XX of to That’s have to now. roll over and bunch of using going six We a of them the next a out MLSs couple kind nationally agents months.

a run, The dropped, market. you temporarily COVID, is, of a wave back because of withdrawn, listings on them the are that business, that the the obviously, listings momentum of lot lot were now give to and that’s So of fact in the going matter shock as short coming of in business.

association I with at yesterday look over a realtor actually little sales the up sales, figure You a June. came of were think June out home XX%. XX%,

is lack showing So strong down improvement the is over bit, is If very little in really obviously, it for stronger. wasn’t of some of And transactions, solid. activity and think a forecast would although purchase supply, an the market the be I because forecast lost quarter all second overall purchase very you the the period. even for actually it

think I going – building So on. there’s obviously, and

static the pretty growth half pull more steady tenant good improved rates the business, contractual we that but year the back data you’re the bit in feel then property out even you going about an screening kind out when so high-margin to business, the off. side of the businesses. that little as see think long-term I realtor a of and the in be PIRM on for the lower single COVID will more segment. with get of a And side we that’s the drops once So base And especially a we intelligence other I profile digits, of see licensing, think

vast in think kick big the I going as relief And when couple acceleration. the pretty to get about majority in COVID. the seen accelerate kick we’ve I and So the good of we gains other look, of quarters, the as also from segment you’re share see last some gains well I’m the and think it and feeling share it

Darrin Peller

away to side back mortgage seems it sensitive right. the we it you’ve credit going gone – mortgage XX-XX. you your think again. valuations when to side not the moving it’s number going up we That’s mortgage, like Is least were the obviously bigger – about a think strategy screening seen And is. the I being versus a on further they’re exiting a brought on businesses the and appraisal into they’re I now about basis where screening push you’re gone credit at had through picture from you than back that you basically of percentage to to multiple? Thanks, mean – to – when is suggested and side mix on it tenant but just keep goal, helpful. The quite less the that cyclical Or better on All years your tenant of transactional, down sensitivity direction of are as couple is potentially is that that going Frank. in come a a going of had balanced? mortgage so not, sensitivity side that side. the We’ve support

Frank Martell

I think, definitely. Darrin, And Yes.

ago, default. mean, I know, XX%-plus company the you mortgage As was years XX in

what the is now Really, reshaped sits that we of integrated company top data we’ve on and a technology So have stack. an radically right company.

of one – the up. margins So have reasons we why have the come that’s

our content, That’s the solutions able with in verticals. different efforts. different we’re diversification to really been what’s underpinning So fuel,

We a But because reasonable the things back. to of kind in actually forget – the tolerate XXXX. a the public You part everything organization COVID, planned for transformed about bit – but talked having share said push can’t to and tremendous operational we’ve as markets that, had our to degree. we that do amount about of price cycle can because operationally, markets, increase our but price. of in do planning a had like earlier, this public an our had any We had little divestitures there’s

better of piece piece upward the think doing is And the and non-mortgage XX%. kind same, I mortgage. cash so fuel $X Mortgage in the is push the X.X billion importantly, and the But our quite it the kind is company goal we’re that’s is the would why grow years to But too, than flow to the say, the look, non-mortgage that provides give signaling of of a now. of amount. divestiture still I share of we’re what next company significant with within repurchase

look and billion far. we’ve you dividends done return side of at $X.X it, If so capital the

between talking another another – We’re $X.X roughly billion. repurchase, and dividends share about

high are years. really by credit that’s – left platforms and supported is sold cycle. think margin we phenomenal. they’re in highly market shares, billion have somewhat pretty automated, in And I is $X.X are automated. almost margins be are any that huge XX.X foreseeable What mean any to essentially huge so that highly return that’s I that’s going of So capital the mortgage have which after related,

a doing, got – long of less we’ve overall its half mortgage revenue lot a Darrin, at in volatile. term. have or about is we is Essentially, So that we’re what what I in mortgage, that modeled think if look you

So volumes much. move daily that with it doesn’t

daily out to XX% of more The taking we’re is sensitive, about that XX% which other half, sensitivity. basically

to drop amount, with provide visibility a million relatively and of to we’ll we’re at But $XX down more small and That’s were EBITDA significantly fairly $XX divestiture. we sensitivity. going that So into million revenue. this of

continue platform factor we So build is the become of content-driven that. high portion want business, a we’ll the business, less awesome is a to you us. valuation strong business. mortgage platform That It’s That the of businesses got has like to grow for swing it’s continue a lot and And mentioned, an margins. fantastic to and growth, business. business and

Darrin Peller

All right. Thanks a lot guys.

Operator

Kaczmarek Please & Kevin Associates. comes go ahead. Zelman next Our from with question

Kevin Kaczmarek

guess, divestiture associated yes, it the it tougher we’ve optically it. for of this elevated But taking COGS my seen? is guess make much that driven business. mean sure, questions. volumes? sell this And the I despite the Thanks to the pressure Hi, with pricing by margins regarding a guys. given I how helps I time the credit wouldn’t mortgage

Frank Martell

a The business, obviously, for by tri-merge the know most the market of so strong that No. you Kevin, Look, have business, reports. is requirement credit I revenue share think, position. underpinned we

in of by So kind regulatory stream, revenue fiat. of the secured it’s terms

So got standpoint, revenue from that it’s a projection.

significantly growing are this year. We

not the But value looked per us getting solutions the various vast And of pricing to se value majority model. change build And a very reseller the margins it’s rid So it and we’re not it trend for because cost volatile. remains at cost. to play to is more bureau that we’ve but the growth of add it’s in affect the line, business. challenge around file difficult to incremental the is,

steady So does does proposition. it – it provide a provide but cash a solid business flow,

that very think interest And marketable I there’ll just be those a of think lot because and I I it’s business sellable. in mentioned. of characteristics

Kevin Kaczmarek

any Okay. your you also, reports about And credit other do those business how the informs business? can from or you think of data us that have? parts And remind valuation of models risk how the you that

Frank Martell

mentioned Yes. think only very integrated. is Look, company impact, that our I as honestly, earlier, quite the I

from of in. of integrated that the business comes stack, technology nature integrated there’s the an that So we a have credit data business, an of operation. exhausts not that Because lot data

frankly, se. So is years. so provided – and our mortgage customers flow – bundled we our per to really over convenient so much the lose of cash buy some us they the it’s touched also, data not really everything with And do It because we finance market. customers don’t scale the of solutions

to synergy to we’ve credible extract. So quite it’s – balance It’s been a it’s not that really that but and But the business, of difficult. able between But providers of the business, there’s I think honestly. never difficult other lot really there. nature just many very see of the and business

Kevin Kaczmarek

are people? that valuation, of to anything you or a the of you’re about terms in And other Okay. kind thinking have do target that? Or you bringing

Frank Martell

No.

forma at of screening, bigger two is the the pro are credit months. by business on trailing speaking, – is there, transparently go at We’ll two far. see I mentioned look which As $XXX kind call, you the but if you tenant small, those basis, the if a XX we the million, how look piece

that I on That reseller liquidity benefit significant. do planning. our So will hopeful it. on But to think would the will that business, will you a not but math the can counting proceeds a we’re say I be it – be we’re

Obviously, assuming any strong proceeds. we without have like would liquidity proceeds. significant We

us delever benefit would that a expect be We help but to even significant further. proceeds,

that great move a to X.X very I short capital. of of turns think X.X in turns returning it’s from order we kind lot a while

on ability the the lot capital side. to we a do So have allocation

Kevin Kaczmarek

a Thanks lot.

Operator

Sheldon William Stephen Please Our Blair. go comes with ahead. next from question

Stephen Sheldon

Hi. Thanks.

of planned trailing still guidance First contribution on from XXXX that included. up through basis? kind confirm give these adjusted contribution can last you of on the divestitures. a on from the EBITDA those I XXXX question, And the context, the also approximate has following that a with wanted kind to businesses

Jim Balas

Steve, Jim. it��s

contribution a on period they teens. basis be the XXXX. in we margin upper are forecast the profile provided divestitures, the through And will On that

Stephen Sheldon

spatial, need would wins accelerate contribution you Okay. or additional And digits? to guess additional the what then from I client talk for single of can mid into pipeline beyond there growth Thanks. and And revenue organic client some announced you insurance for about larger high the wins? you’ve within what type

Jim Balas

Yes.

anything the beyond haven’t assumed We at initial XXXX. least through one,

So only in what know we’ve today. we factored

Stephen Sheldon

you. Thank

Operator

Please Stephens, Inc. next Instructions] [Operator John with go Campbell from Our ahead. question comes

John Campbell

Hey, guys. Good morning.

Frank Martell

morning. Good

John Campbell

there’s next and And some variable Yes. good quarter. period roughly, tailwinds can underlying the more year guess, help in this little from and a if guys. maybe stream new Frank, the in that quarter tax wins. into And if of rev tax, a left of remind the unpack But variable then year. of kind us I I just can of that for know property piece on guys color Jim this recurring versus, piece. had you there how revenue provide going guys property or maybe or helps you On obviously the another really then you much maybe back the half that

Frank Martell

Frank. this is John,

So yes.

seven it. has it to what know, is XX% of and think, One which really year about of loan, of paid amortize look, kind characteristics life you call kind you is of upfront two essentially we as get revenue five business the life. you to that So I a over

long-term XX,XXX called So model month you revenue we periodic balance – country recognition, for a we jurisdictions. payments These which from pay contracts. We make it’s to it that major servicer to this to service what’s month are month. is do every the basically really is in The provide stream. taxing – really perspective,

strong So perspective. from incredibly incredibly that sticky, business

primarily I’d really, in a say, got you’ve business. revenue recognition modeled that So

wins mega One that relates business. to of the

look your we turbo growth, in we’re about into out going boost get XXXX, half a and business as the point to to in especially. second that So

financial strong not will it but whopper So whopper in sure a to strong going a term, is you’re on a see improvement very business. already situation. I’m be an that improvement

well which and stream. So clients, – digitized support a that’s similar two actually the the And of – those underlying of longitudinal sits very that very alongside large, a cross-sell a create a business. kind because we It business. and doesn’t automated to have characteristic businesses we it’s modeled flood us has longer-term But relationship model. calls, because from revenue the again, also, It flood of have important intensive some terrific you may with by over recall past momentum. time. help longitudinal as tremendous, have both But the less

because speak. as see client So gold clients margin already we kind – the already to better Because as and to you’re go of of strong an going rolling our forward. on characteristics automation model even frankly, better service standard we that service out the is

business, terrific momentum. terrific So

John Campbell

just a if Okay. you And upside That’s With But some really to divestures. segment. got it like PIRM, helpful. in there. by UWS, margin guided look lot it some thinking you you’ve then XXXX, margin this haven’t seems seems to of guys about like space, obviously out like the comps historically of there’s at the

each both obviously, for Or of you you – tax margin got going to bps? for, hundreds of just in take of can like where in you’re margin just broadly You’ve can speaking, those segments, target kind and talk idea segment? property help. But a looking the any there’s each if is one to

Frank Martell

a is XXs first in to in you PIRM, upper moment. second I up got actually in and the look of all, think think, first the I I kind think mid-XXs. Look, UWS at you Yes. the of at the if bit then quarter you’ve segment got first lower half the margins which half, quite And

think, the of is year. year XX% with margin XX% I XX% we’re what from we’ve first gone obviously, think kind a in upward I XX%. this to and we’ve the of obviously, And half to a – on divestitures impact company margin the before for forecast done the of the So total

able as reduce the would that the continue. see of over basis to So margin the to there costs basis XX% to expect of think to point that get $XX would but I to But revenue kind you’re $XX been much we’ve million pretty you our I point maybe million we’re quicker, going And XX-ish rebaseline. or XXX on layers kind that consistently in. to by expect know, improvement, depending is how now I years. baseline going

the that the then improve mix And do baseline that’s margin we and that with So should assuming. anything for help buttress the we’re that.

So overall by move kind breaks I segments How of think we’ll think XX% target. that I from segment, out XX%. be close to up company will that both

and the have business businesses a we think look, monopoly other Because margins think good that strong that’s their of margin point build the increasing, some at don’t that extremely have – of. off huge we has a a – that very players scope So I to impact is I have. margin and and think great for starting an rates. foundation us, XX% I that’s that But for

John Campbell

Okay. Thank guys. you,

Operator

from comes go Barclays. DeVries question next with ahead. Please Our Mark

Mark DeVries

lot After now seeing some on more years clients containment, on Are from you margins originator pretty have in seeing expense pretty near-record lean Yes. any servicer they’re Thanks. focused files in a strong kind they business of data that had been that invest your pulling ways them volumes. that to opportunities, in appetite the their in new really services their in paying process just investing for earlier for enhance that’s your before? revenue whether or increase credit

Frank Martell

of I they I the Yes. mean part It are. was outlook. think look,

at I – originated, mean the think lot in to them. management. what in digitize, experience. to still people investing customer look COVID are definitely losing obviously, are is. means wheelhouse. – you cost our I a and money mortgages for they the right longer on into was people there XXXX, still medium trying example, If of is for Mark, and that that’s were There automate, term looking at But Everybody where

understand, lot lot services revenue fully addition, people relates versus a In revenue but to monitoring – of a of our don’t a our outsourcing. full

So at significant lot room gives a of we’re expansion. have we amount more that relationships where you do tremendous look for – providing outsourced if scope. a That us some

got a the hate space. you a when as up that I grow in to of obviously that health nice allows commercial In you about is the that a commercial the addition, lot speculation small have But of raise business we’ve foothold because to base, space. well.

expansion And half business just – as of see we year. more there’s an the to year all will we’ve the you’re into and going think of addition, won, done to degree already that has there. just go I second then a flow the the next through think stuff And forward. team increasing tremendous in in I So work that

Mark DeVries

Okay. Thanks.

Operator

ahead. KBW. Please next with Our question from go Tommy McJoynt comes

Tommy McJoynt

Thanks the on $X I dividend comments buybacks question. any Hey, continuing divestiture meeting is good this just on confirm morning, billion quarterly increase not happening to my for time? the guys. want at the certain taking to dependent and

Frank Martell

yes. Tommy, Yes.

obviously that I the So refer so – standpoint $XXX capital turn Jim revolving from cash line going flow. to, to a talked we what and I through that about, million. have we’re facility is And bank think and that do that

a profile then us, we’ll high the I which news. It’s leverage get the whatever $X company. – we get, as not we’ll proceeds earlier, great billion. – math, for plus we do need the the reasonable even do But to if you we leverages at the has line. to to cash we at if flow this tap And So support plenty expect is said if delever

upward into assume the that said in end kind the up dividend, to could So down place. – and plus reasonable kind we where it’s stock we from $X are of even that period the all put done re-rated is we’ve price we to forecast the Obviously, now perspective. of a with when billion

before one the to up catching don’t bit And good the of it comment, dividend of we’re from forecast mention strength on just today. and cash the then even the want durability as close. if little expect I at cash over to a also, think it, the profitability it’s But And Tommy. of where So should grow with a increase we the is I that period. the just look flow obviously, other you on that that then a And perspective, that perspective. we beyond validation dividend flow. of

forecast, kind mortgage has On the lot and a all forecast that of been about mortgage stuff. talked

that we’ve lot very talks know, slide call supplement other your different in our mortgage the volumes. quarter how, the attention, a them. in versus – what financial on greatly you terms, produces assumed estimates precise major of about vary second They As a We there’s I all – depending who there’s players. would of

going So forecasts. to I really you’re all other crazy right forecast any the the very of in that think It’s stretch. reasonable. our It’s is by range see not

we see – the mentioned, the majority think I we I transactions. of mortgage see as

great visibility all players. have in major We the

forecasters the versus one variation on. think XXXX forecasts much much The which I assumption driving their the has level forecast in everybody a a higher our only disconnect forecast the than of that is the So mortgage refi of major others are else. in the rate do, pretty major others, interest is

for So if in that, normalize code. is everybody ZIP the you same

the at So mortgage forecast, see being a I forecast XXXX. look in don’t major as our think impediment XXXX we if to that you hitting and

I only by flow-generative is the getting and company’s model stronger, and better So automation. margins supported think and cash it’s more mix higher

the hallmark hallmark really So return. been always a I a think be And to that company helps of that drive XX unparalleled that’s all will years this shareholder of levels in our of and us publicly been traded capital approach. we’ve a company

Tommy McJoynt

recently Thanks. recurrence. what to of just the guys considered got And just you as of on, switching slide high kind I then the

that? words, impact kind the you recurring, So does just XX% your kind of when own guys about of how in cyclicality of obviously revenue being of mortgage think that

Jim Balas

it’s Jim. Tommy, Yes.

of component or generally, auto that that determinable year terms can the be so forth. is have fixed a where it’s we and of would And and contracts a then renew nature, And that recurring portion are consumption variable the the unit-based. price. In fixed or more

out of between So it splits XX-XX that the kind two. to

Tommy McJoynt

Got Okay. it. Thanks guys.

Frank Martell

Great.

Operator

the you presentation. concluded. today’s also now our question-and-answer concludes and session, Thank conference attending for This is

may You disconnect. now

Corelogic (CLGX) 23 Jul 202020 Q2 Earnings call transcript