Rocket Companies Reports Loss for 2023

By Bobby Samwell • Friday, February 23 10:12 • Permanent Link

Rocket Companies, Inc. (NYSE: RKT) has released its fourth quarter and full year 2023 financial results. The Detroit-based fintech platform company, which includes mortgage, real estate, and personal finance businesses, reported the following highlights:

Generated fourth quarter 2023 net revenue of $694 million and adjusted revenue of $885 million, with the latter exceeding the high end of the guidance range.
Reported full year 2023 net revenue and adjusted revenue of $3.8 billion.
Reduced cost structure by nearly 20% in 2023, following a nearly 25% cost reduction in 2022.
Reported a fourth quarter 2023 GAAP net loss of $233 million, or $(0.09) per GAAP diluted loss per share, and adjusted net loss of $6 million or $0.00 per adjusted diluted loss per share.
Delivered adjusted EBITDA profitability for the full year and in the fourth quarter of 2023, marking the third quarter in a row.

Varun Krishna, CEO and Director of Rocket Companies, expressed pride in the team's consistent execution amid one of the most challenging years for mortgage originations in three decades. He highlighted accelerating year-over-year revenue growth in the quarter and positive adjusted EBITDA for the third quarter in a row. Additionally, he emphasized the company's market share growth in the purchase and refinance segments in 2023.

Krishna also outlined the company's strategic focus on AI-fueled homeownership, with AI being deployed across the organization to deliver industry-best client experiences and achieve scaled growth in market share, revenue, and profitability.

Financial Summary: Total revenue, net: $694 million in Q4-23, $481 million in Q4-22, $3.799 billion in FY 23, $5.838 billion in FY 22 Total expenses: $937 million in Q4-23, $986 million in Q4-22, $4.202 billion in FY 23, $5.097 billion in FY 22 Adjusted revenue: $885 million in Q4-23, $683 million in Q4-22, $3.770 billion in FY 23, $4.628 billion in FY 22 Adjusted net loss: $(6) million in Q4-23, $(197) million in Q4-22, $(143) million in FY 23, $(137) million in FY 22 Adjusted EBITDA: $55 million in Q4-23, $(204) million in Q4-22, $67 million in FY 23, $59 million in FY 22 GAAP diluted (loss) earnings per share: $(0.09) in Q4-23, $(0.14) in Q4-22, $(0.15) in FY 23, $0.28 in FY 22 * Adjusted diluted loss per share: $0.00 in Q4-23, $(0.10) in Q4-22, $(0.07) in FY 23, $(0.07) in FY 22

Today the company's shares have moved 8.2% to a price of $11.88. For more information, read the company's full 8-K submission here.

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