Amid Rising Rates, Detroit’s Rocket Cos. Reports Q1 Profit

Rocket Cos. Inc., a Detroit-based fintech platform company that includes Rocket Mortgage, Rocket Homes, Truebill, and Rocket Auto, announced its first quarter (Q1) results, which showed a net revenue of $2.7 billion and an adjusted revenue of $1.9 billion.
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Rocket Cos., the Detroit-based platform company that includes Rocket Mortgage, Truebill, and more, announce profits in the first quarter of 2021 amid rising interest rates. // Stock Photo
Rocket Cos., the Detroit-based platform company that includes Rocket Mortgage, Truebill, and more, announce profits in the first quarter of 2021 amid rising interest rates. // Stock Photo

Rocket Cos. Inc., a Detroit-based fintech platform company that includes Rocket Mortgage, Rocket Homes, Truebill, and Rocket Auto, announced its first quarter (Q1) results, which showed a net revenue of $2.7 billion and an adjusted revenue of $1.9 billion.

“Rocket delivered a solid performance in the first quarter and achieved our best Q1 volume in purchase and cash out refinances, even as rates rose rapidly,” says Jay Farner, vice chairman and CEO of Rocket Cos.

“Now, as we move further into the year, we will successfully navigate the mortgage and real estate headwinds by protecting our margin and profitability while continuing to invest in strategic areas such as technology, partnerships and performance marketing to grow share and expand our business for the long term.”

Rocket Cos. delivered a Q1 net income of $1 billion and an adjusted net income of $293 million as compared to $1.8 billion in Q1 of 2021. The adjusted EBITDA was $450 million as compared $2.4 billion year-over-year.

Rocket Mortgage achieved its best Q1 purchase and cash-out refinance closed loan volume in company history this quarter. On its own, however, closed loan origination volume shrunk year-over-year to $53 billion from $103 billion. It’s purchase volume grew 43 percent over Q1 2021 levels, driven by a technology-driven client experience, product innovation, and its integrated end-to-end home buying ecosystem. Rocket Mortgage’s net client retention rate was 92 percent in the quarter.

Rocket Homes drove a first quarter record of 8,200 real estate transactions and $2 billion of real estate transaction value during Q1 of 2022, representing the value of homes purchased and sold through the real estate agent network.

Rocket Auto, the automotive retail marketplace, generated a first quarter record of $445 million in gross merchandise value up $85 million, or 24 percent, from Q1 of 2021.

Truebill, a personal finance app that Rocket Cos. acquired in December 2021 which helps clients manage their entire financial lives, increased its member base to 3.4 million in Q1 of 2022, up 142 percent year-over-year. Of the 3.4 million members, 1.7 million are premium paying members, up more than double year-over-year.

Rocket Solar currently facilitates transactions in 27 major markets across nine states, including Arizona, Florida, and South Carolina. A full public launch is slated for June 2022.

As of the end of the quarter, approximately 85,000 real estate agents have signed up for Rocket Pro Insight (RPI), up from approximately 80,000 at the end of the fourth quarter of 2021. RPI is a digital platform for real estate agents to manage the entire mortgage process in real-time, from application submission to closing.

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