Rocket Cos. Inc., the Detroit-based FinTech platform company that includes Rocket Mortgage, Rocket Homes, Truebill, and Rocket Auto, announced its results for the full year and fourth quarter of 2021.
“Rocket made significant accomplishments in 2021 as we continued to execute on our mission to remove friction from life’s complex moments. Rocket Mortgage had its best year ever in overall origination, with $351 billion in originations, while also setting a new record in home purchase volume,” says Jay Farner, vice chairman and CEO of Rocket Cos. “We expanded the Rocket platform with the strategic addition of Truebill, broadening the services we offer to help clients manage their entire financial lives.
“Rocket continues to leverage our platform to grow and scale across real estate, mortgage, and financial services. I am also pleased to announce that the Board of Directors has approved a special dividend of $1.01 per share. Since our IPO, Rocket has returned $4.5 billion to shareholders through dividends and share repurchases, while remaining well-capitalized and investing in a disciplined manner to generate long term shareholder value.”
During the full year of 2021, Rocket Mortgage generated total revenue, net of $12.9 billion and adjusted revenue of $12.4 billion, which represents 155 percent and 110 percent growth as compared to 2019, respectively.
In addition, the company produced $351.2 billion in mortgage origination closed loan volume and gain on sale margin of 3.13 percent. The closed loan volume in 2021 was a new company record, up 10 percent from 2020 levels and an increase of 142 percent compared to 2019 levels.
The platform generated a net income of $6.1 billion, which exceeded 2019 net income by 577 percent, and an adjusted net income of $4.5 billion during 2021, which was 236 percent greater than 2019 levels. The net income margin was 47 percent for 2021, which compares to 18 percent in 2019. Adjusted net income margin was 37 percent in 2021, which compares to 23 percent in 2019.
It achieved an adjusted EBITDA of $6.2 billion during 2021, up 210 percent from 2019 levels. The adjusted EBITDA margin was 50 percent for 2021, which compares to 34 percent for 2019, demonstrating the scalability of the platform.
“Rocket continues to leverage our platform to grow and scale across real estate, mortgage, and financial services. I am also pleased to announce that the Board of Directors has approved a special dividend of $1.01 per share,” says Farner. “Since our IPO, Rocket has returned $4.5 billion to shareholders through dividends and share repurchases, while remaining well-capitalized and investing in a disciplined manner to generate long term shareholder value.”
During the fourth quarter (Q4) of 2021, Rocket Cos. generated net total revenue of $2.6 billion and adjusted revenue of $2.4 billion, which represents 36 percent and 33 percent growth as compared to Q4 2019, respectively.
Rocket Mortgage generated $75.9 billion in mortgage origination closed loan volume and gain on sale margin of 2.8 percent. Closed loan volume was up 49 percent compared to Q4 2019.
A net income of $865 million was generated, which exceeded Q4 2019 net income by 15 percent, and adjusted net income of $637 million during Q4 2021, which was 23 percent higher than Q4 2019. The net income margin was 33 percent for Q4, which compares to 40 percent in Q4 2019. Adjusted net income margin was 26 percent in Q4, which compares to 28 percent in Q4 2019.
The companies achieved Adjusted EBITDA of $883 million, up 19 percent from Q4 2019 levels. The adjusted EBITDA margin was 36 percent, which compares to 41 percent for Q4 2019.
In December 2021, Rocket Cos. completed the acquisition of Truebill, a personal finance app that helps clients manage their entire financial lives, for $1.275 billion in consideration. Truebill is favored among clients looking to live their best financial lives by managing subscriptions, improving credit scores, tracking spending, and building budgets in an easy-to-use app.
This acquisition accelerates Rocket Cos.’ stated mission to help clients in complex moments. Truebill’s annualized recurring revenue base exceeded $100 million as of December 2021, more than double the run rate on a year-over-year basis.
