Rocket Reports Momentum Gains In Q1

Rocket Companies began 2024 with strong momentum, according to CEO Varun Krishna.

The parent company of Rocket Mortgage reported a total net revenue of $1.4 billion and adjusted revenue of $1.2 billion.

GAAP net income was reported at $291 million, or $0.11 per GAAP diluted earnings per share. Adjusted net income was reported at $84 million, or $0.04 per adjusted diluted earnings per share.

The company delivered a first-quarter adjusted EBITDA of $174 million, the highest adjusted EBITDA in two years, according to company leaders.

“As an organization, we are driven to execute and win and our determination is absolute. We’re playing both the short and the long game, gaining momentum and achieving success while strategically planning and executing for the long-term, and this has already led to some impressive results for Rocket,” Krishna said in an earnings call.

Rocket Mortgage has positioned itself in the AI space, prioritizing tech as a profit driver. Krishna, who was named CEO in July of 2023, has been pushing advances in these areas.

In 2023, it managed 3.1 million servicing client interactions that were increasingly supported by human-less chat and phone AI products.

This year, the company launched an AI-driven platform, Rocket Logic, which it later enhanced to include call analysis and transcription. Leaders at the company say its servicing team will save nearly 60,000 hours a year using the technology.

“Rocket Logic unlocked the transformative power of AI to begin streamlining and modernizing the homebuying process. Now, with Rocket Logic – Synopsis, we have harnessed generative AI to create a tool that both anticipates and solves clients’ needs, effectively changing the future of homeownership,” Krishna said.

Rocket Companies is the publicly traded parent company of Rocket Mortgage, the country’s largest retail mortgage lender.

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