Or is there any way to kind size that as a potential benefit? Our centralized technology-driven operating model allows us to dynamically price our products on a real-time basis. Ryan McKeveny -- Zelman and Associates -- Analyst. OK. If you look at that change, as I mentioned, from Q2 to Q3, change in the loan pricing represented less than 10 basis points of that variance. So, Jay, maybe to bring together a handful of things that you touched upon. The unique strength of our business is that when the net client retention rate falls, it is generally the result of lower interest rates, leading to higher refinance activity. I know we're not providing the guidance right now on those businesses. I think a big part of the narrative was the ability to take market share. And we expect gain-on-sale margins of 3.8% to 4.1%, which would be an improvement of 11% to 20%, compared to 3.41% in the fourth quarter of 2019. Image source: The Motley Fool. Our marketplace has reached a significant inflection point due to consumers demanding a simple, digital experience, and I'm proud to say Rocket Mortgage is executing at enormous scale. How long that will last? Your line is open. Jay? The fact is Rocket Companies is leveraging the scale and flexibility of our platform to deliver first-to-market innovations with the best partnerships in real estate, technology and finance, all while reinforcing our brand with best-in-class marketing. This metric is intended to be comparable with retention figures across multiple industries, including cable and wireless service providers. Now we look at 213 billion in the same nine-month period in 2020. I know we talked a lot about this during the IPO process and Bob Walters, in particular, about our recapture capabilities, which are now, I think, Julie referenced north of 4.5 times the industry average. Thank you, Jay, and good afternoon, everyone. Past Earnings. After we originate a loan, we maintain monthly touch points with our clients and generate recurring revenue by processing their payments and servicing their loan over its lifetime. Quarter (USD) Sep 20 Jun 20; Revenue: Cost of revenue: Operating income: Operating margin: Net income: Net profit margin: Cash on hand: Change in cash: Diluted EPS: Financial data from company earnings reports. And with that, I'll turn things over to Jay Farner to get us started. We're going to be thoughtful and disciplined but, as always, opportunistic. We remain in a strong liquidity position with total liquidity of $6.9 billion, which included $3.5 billion of cash as of quarter end. Our new metric is calculated based on the clients who remain active with Rocket as a percentage of the total starting client base. We're very excited about the work that we're doing in Canada. A lot of our decisions around verifications of assets or verification of employment, verification of insurance is now done using automated systems. Julie touched on over the last two-and-a-half-plus years when we look at the volume breakdown or the kind of the reason for a refinance or a loan between purchase and cash out and term changes and life changes like divorce, north of 50% of our production is really non-interest rate-sensitive. And depending on where the refi and the purchase money market falls out, how do you see that affecting your channel mix between the independent -- between the brokers, the partner network and your direct retail originations? (MFTranscribing) Nov 11, 2020 at 4:30AM. There may be differences between the Equity Summary Score analyst count and the number of underlying analysts listed. Good afternoon, Jay. And so as a servicer, we're collecting those monthly payments. Rocket Companies Inc (NYSE: RKT) shares fell about 3.3% on Wednesday after the company reported a record third quarter on Tuesday afternoon. We've been partners with Intuit for a long period of time but really been working hand in hand to have a fully integrate the Rocket Mortgage experience in the Mint experience for their clients so they don't have to leave that app. The second question, maybe a similar response. That's very helpful.And on the partner segment, exciting to hear about that new partnership that was struck last week, but curious on the Rocket Pro TPO changes this quarter. Yeah. BAJAJ FINANCE LIMITED: Q3 2021 Earnings Release: 01/21/21 : KRUNGTHAI CARD PUBLIC COMPANY LIMITED: FY 2020 Earnings Release (Projected) 01/22/21 | 07:30am : ALLY FINANCIAL INC.: FY 2020 Earnings Release: 01/22/21 | 09:00am : ALLY FINANCIAL INC.: FY 2020 Earnings Call Benzinga does not provide investment advice. We continue to also leverage well-known talent like Jason Momoa, star of our Super Bowl ad; and future NFL Hall of Fame wide receiver, Larry Fitzgerald, in our marketing to appeal to a broad consumer base. Breaking down the 67-basis-point variance in gain-on-sale margins sequentially, changes in loan pricing represented less than 10 basis points of the quarter-over-quarter difference in our gain-on-sale margins. And with that, I'll ask Julie to share with you the details of our financial performance in this quarter. We produced robust growth in both of our segments. All rights reserved. To achieve these long-term objectives, we are investing in our brand and technology so that we can profitably grow through all market environments. Recently, we hosted Tech Con, our in-house technology conference for all Rocket Companies technologists, drawing more than 4,000 of the brightest minds in the industry. Rocket Companies Inc (NYSE: RKT) shares fell about 3.3% on Wednesday after the company reported a record third quarter on Tuesday afternoon.. … To illustrate just how massive our scale is, the company has been consistently profitable on an annual basis, having generated double-digit GAAP pre-tax income margins every year from 2015 through 2019. And so we continue on our path, building all of the right long-term strategies to allow the company to achieve that long-term goal of 25% market share by 2030. Yeah. Good afternoon, everybody, and thanks for taking my questions. Earlier this afternoon, Gossamer Bio issued a press release announcing its financial results for the third quarter ended September 30, 2020 in addition to providing a corporate update. In addition to our board, he also serves as an independent board member for Tyson Foods, McGraw-Hill Education, Little League Baseball and several others. Client retention is another key differentiator of the Rocket Companies' ecosystem. We consider a loan funded when it is sold to investors on the secondary market. Your line is open. And can you maybe just talk about what you're seeing that will drive the compression into the fourth quarter? YTD 20. The Earnings Whisper number was $1.13 per share. We are committed to using our substantial cash generation to create long-term value for our shareholders. Rocket Mortgage Q3 Earnings Echo Commitment To Innovation, Democratization Of Homeownership. Rocket Companies reports Q3 EPS 54c, consensus $1.09 11/10/20 ... FDA user fee goal date of 12/29 for arbaclofen 07/09/20 Osmotica Pharmaceuticals receives FDA approval for Upneeq. We are seeing the strongest growth among our most digitally engaged clients. Before I turn things over to Julie, I wanted to announce an addition to our board of directors. In fact in the first day, more than 1,100 agents joined Rocket Pro Insight, and the momentum has only increased. And so we've started that process, but the sky is the limit on what that integration can look like, when you think of the data and information we have about home values in markets, the real estate connections, the real estate agent connections that they have, the equity information that we have about the two-million-plus folks in our servicing book. These clients, who are not rate sensitive, remain an important population when you consider Rocket Companies' incredible footprint, serving all 50 states and more than 3,100 counties in the United States and a growing presence in Canada. Hey, good afternoon. Bank of America has a Buy rating and $27 target. For example, from the first quarter of 2017 through the third quarter of 2020, more than half our overall volume was from our less rate-sensitive products. ET on November 10, 2020 to discuss its results for the quarter ended September 30, 2020. And second, we're obviously seeing rates moving up a bit, and I think market expectations are for them to continue to increase. As a result of shifting demographics and the ongoing pandemic, we are seeing a rapid acceleration in the long-term shift from physical to digital transactions across the industries where we participate. If we see the stock price drop to a place that we think is advantageous, the better use of our capital would be to buy those shares back. It's very important that that loan closes, but it also frees up time for our team members to now to focus on the next loan, making us more efficient versus taking those calls. When we think about the future, and we talk about this a lot, we touched on the realtor.com partnership. RKT Upcoming Earnings (Q4): Earnings Date: November 10, 2020 Consensus EPS: Premium: Currently no data available. This marks our 11th straight year being named to the top of the list. We talked about another very large partnership that we'll be announcing with more detail in 2021. Market data powered by FactSet and Web Financial Group. View the Latest Analyst Ratings. Or is this more kind of episodic whenever you see opportunities in your stock or a bit too much excess capital? And so remember, we've got a 35-year track record here, I think, of allocating capital in a pretty strategic manner. We think that demand that we're going to continue to see with 70% of folks able to refinance and the amount of refinance volumes you take that into the next couple of years, if there's six trillion or seven trillion out there ready to be refinanced, that is something that's going to take years to work through, which will continue to elevate that demand, we believe, going into the upcoming years. Well, no, we're very focused on that. Funded loan volume in our direct-to-consumer channel was up by 131% to $53.5 billion and increased in our Partner Network by 127% to $29.6 billion, both compared with the year-earlier quarter. And if there's an opportunity to buy back shares that we think are undervalued, then we'll do so. Because our recapture rate is 4.6 times the industry average, we generate even more revenue from increased loan origination volume. And then a quick follow-up. And so what we're really trying to create there is a seamless process from the very moment that you think about purchasing a home until closing the home. Our commentary today will also include non-GAAP financial measures. Subscribe to Premium to view Fair Value for RKT. Good afternoon, everyone. Our strategic objective remains to achieve 25% market share of the mortgage market by 2030 while continuing to generate industry-leading profitability over the long run. Based on what banks and mortgage lenders have publicly reported, we believe that our closed loan volume growth was substantially higher than the overall industry in the three nine months ended September 2020 compared to a year earlier. So they've largely been absorbed at this point and are fully priced into the margins. Hey, thank you, and congratulations on the results and guidance. As we show in today's press release, our net client retention rate has consistently been above 90% over the past few years. And that really supports that broader ecosystem that we're building, as I touched on before, keeping the client in our ecosystem to be able to offer additional products and services to them. Your final question comes from the line of Henry Coffey from Wedbush. No. Yeah. And then I'd like you to think about the Rocket Auto business that we are excited about because that also tends to skew to a younger demographic. We achieved a 69% adjusted EBITDA margin in the quarter and have generated $5.9 billion of adjusted net income in just the first nine months of 2020. OK. And then looking at the marketing spend, it grew as a percent of revenue. But maybe you can talk a little bit about where you are seeing success, and how we should think about the trajectory on that initial purchase volume and how that can contribute to the lifetime value, particularly if you're able to maintain those high retention rates. Before I turn things over to Jay Farner, I will read our disclaimers. Company Participants. Anything into sort of local or municipal systems, anything along those lines would be much appreciated. Julie will give more detail in a moment, but we are sharing today that Rocket Mortgage consistently retains over 90% of our total servicing clients on an annual basis. When the retention rate is high, of course that means longer client lifetimes. We are demonstrating true leadership at a critical time for our industry and our clients. Overall, the feedback we've received about the rebrand and technology rollouts has been extremely positive. And then on the Partner Network side of things, probably between 100 and 150 basis points, if you look back over time. We will continue to lead from the front as the most admired brand and technology platform in our industry. You actually -- you are one step ahead of me there and mentioned the realtor.com, which I know you mentioned in your prepared remarks as well, but it does seem to have a tilt toward the purchase market, obviously. The sequential change from record gain on sale margins of 5.19% in the second quarter was driven primarily by changes in channel and product mix. Back to RKT Overview *The upcoming earnings date is derived from an algorithm based on a company's historical reporting dates. I think you made some comments that you're seeing some success there. And that resulted from our strong Partner Network growth that we saw during Q3. Our next question comes from the line of Timothy Chiodo from Credit Suisse. These companies join others, including Allstate and Liberty Mutual, in helping provide a digital solution to lenders looking to confirm the presence of an insurance policy in real time, eliminating the need to manually call to confirm, a process that is deceptively tedious. In the last 30 days alone, we have announced enhancements to our Rocket Pro platform that grant real estate professionals never-before-available insights into their clients' mortgages. Or was it just you just kind of match the spend versus the revenue? And then if I can, in terms of -- I wanted to ask about Ginnie Mae buyouts. Thank you for taking the question. Everything you need to know about the market - quick & easy. Is there any color you can provide us today on the percentage of lots you're getting from refi versus purchase and also kind of broken down by your two channels? More News & Events. Your line is open. Our next question comes from the line of Bose George from KBW. ET. The growth we're achieving is unmatched. So can you maybe just talk about how you expect to drive market share in a more purchase-oriented market? So I think this is -- goes back to the broader concept of is just how we're going to handle capital allocation. Your next question comes from the line of Rick Shane from J.P. Morgan. This frees us up to work on other more specialized items, significantly increasing our productivity. We did that as a privately held organization from time to time. Our gain on sale margins of 4.52% increased substantially from 3.29% in the prior-year period and remained strong by historical standards. This conference call includes forward-looking statements. Other Ticker Details RKT Company Name Rocket Companies Earnings Call Date 10-11-2020 Time (ET) 16:30 Fiscal Quarter Q3 Fiscal Year 2020 And here's I think something different for us that we benefit from out of a lot of other retention-type businesses is that we're profitable on the first transaction, as you saw today, very profitable. We are very excited to have him join us. It is now where we work, where we teach our children and where we gather with friends, bringing new meaning and significance to the place where we live, our home. Your next question comes from the line of Ryan McKeveny from Zelman & Associates. Yeah. So that brought costs up a bit for us as well. Are D shares eligible for repurchase as well? And I believe Julie referenced this as we think about the investments that we've made here in the last 12 months, $500 million when it comes to our now nearly 3,000 technologists and the platform that we've been building. DETROIT, Oct. 19, 2020 Rocket Companies (RKT), Inc., a Detroit-based holding company consisting of tech-driven real estate, mortgage and financial services businesses including Rocket Mortgage, Rocket Homes and Rocket Auto today announced the Company will issue its third quarter 2020 earnings on November 10, 2020. And one of the key strengths of our platform, not only is the technology, the client base, the brand, but also the leadership. In the third quarter, we delivered a record performance with $89 billion of closed loan volume, representing a 122% increase year over year. Good afternoon, everyone, and welcome to our third-quarter earnings call. First, I want to congratulate our team on being named the No. Third Quarter Earnings Call Rocket Companies will host a live conference call at 4:30 p.m. James Faucette -- Morgan Stanley -- Analyst. As I referenced in the comments on the call here, the demand for the digital experience is stronger than ever, and we're seeing significant growth there and in particular for us on the purchase side. Jason McGruder - Vice President, Investor Relations And so if mortgage or home isn't the initial purchase, a loan or auto may be. Yeah, sure. Is that contributing much to earnings? Detroit-based Rocket Companies Inc (NYSE: RKT ), home to Rocket Mortgage and Quicken Loans, the largest retail mortgage lender, reported a … Your next question comes from the line of Don Fandetti from Wells Fargo. Is there any sort of seasonality we should be aware of? Yeah. That leaves more time for mortgage bankers to help other homebuyers, and the agent can focus on showing and closing houses with their clients. : November 10, 2020 usually issued quarterly ( Q1, Q2, Q3 Q4! Experience than in any quarter in our brand and technology so that 's going to wrap up questions. 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