By KIMBERLEY HAAS
The CEO of Rocket Companies says they will achieve scaled growth and profitability through their AI-fueled homeownership strategy.
Varun Krishna spoke during an earnings call Thursday after leaders at Rocket reported that their total net revenue for 2023 was $3.8 billion. In comparison, total net revenue was reported at $5.8 billion for 2022.
Krishna started his comments by saying they delivered strong fourth-quarter and full-year results despite market challenges as the industry faced persistent strains in affordability and inventory.
He pointed out that their purchase market share grew by 14% and their refinance market share grew by 10%.
Krishna said by continuing to leverage artificial intelligence, they will transform an industry that is ripe for innovation.
“With AI, we are rewriting the rules of the game and structurally and fundamentally changing how this industry operates,” Krishna said. “We believe AI will shape the future of the homebuying industry, with Rocket leading the way. Technology is the answer to better client experiences and capacity management in our industry.”
Krishna said a virtual assistant is helping mortgage bankers, automated income verification technology is assisting underwriters, and servicing calls and chats are increasingly powered by AI.
These advances will help Rocket serve more clients without adding to a fixed cost structure, he said.
“AI lets computers do what they do best while allowing our team members to focus on what they do best, fostering relationships and connecting with our clients,” Krishna said.
In Q4 23, Rocket generated $694 million in net revenue and an adjusted revenue of $885 million. Adjusted revenue exceeded the high end of the guidance range, and year-over-year growth accelerated for a second quarter in a row.
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