Q3 2021 Rocket Companies Inc Earnings Call
Quarter of 2021.
Before we dive in I want to take a moment to thank our rocket companies team members. All 26000 dedicated professionals, whose passion drives the client service innovation and entrepreneurial spirit that our company is known for.
Thanks to them, we have become a platform that removes friction from life's most complex moments.
Our platform continues to execute at scale and grow across our businesses rocket mortgage is the largest mortgage lender in America with industry, leading profitability our title and settlement services business. Amrok is also the largest of its kind in the country. Our emerging businesses also set new records in the quarter rocket homes.
Reached $2 $3 billion in real estate transaction value and its current annualized run rate, we placed the company among the top 20 brokerages in the country.
Rocket Auto also reached a record $530 million in gross merchandise value in the quarter.
The number of vehicle sales facilitated by rocket auto in the last 12 months, we've put the company in the top 10 of all used car dealers nationwide.
On today's call I will highlight the flexibility of the rocket platform to capture the growth ahead, including our strategy to revolutionize the home buying experience I'm also excited to touch on the new mortgage as a service opportunity we're launching in partnership with Salesforce.
Last quarter, we had excellent results with closed loan volume and gain on sale margin exceeding the top end of our guidance range.
Mortgage delivered $88 billion in closed loan volume and rocket companies generated $3 2 billion and adjusted revenue and $1 6 billion and adjusted EBITDA.
On an adjusted EBITDA basis, we doubled the size of our business compared to 2019 again, demonstrating the sheer power and scalability of the rocket platform.
We hit New records in both purchase and cash out refi volume in Q3.
We've also just recently announced a major partnership with Salesforce.
Up to this point in time, we have used rocket technology to process, our own mortgage volume through both our direct to consumer and partner network channels.
The Salesforce partnership we will now open our mortgage technology and process to third party financial institutions through the Salesforce financial services cloud.
This new mortgage as a service model is a game changer for the industry and for rocket.
More than simply leveraging our technologies these banks and credit unions will have rocket integrated into their centralized workflow, making the process seamless and simple.
The opportunity is massive.
In 2020.
The approximately 10000 banks and credit unions originated over one trillion dollars in mortgages.
That represents nearly a third of the total market in the U S.
We believe mortgages and service represents a new model for financial institutions to partner with rocket paving the way for an even larger opportunity to provide consumer lending as a service, including mortgages auto loans and personal loans expect to hear more about this partnership and the first half of 2022.
With multiple channels all operating at scale over a broad range of products, we have many levers to drive growth, while optimizing gain on sale margins even in shifting markets.
Our ability to pivot and scale is rockets key differentiator.
In fact in the third quarter, we saw strong growth in our direct to consumer channel.
Where our purchase initiatives continue to gain traction.
We will be allocating additional resources to further support this growth more broadly we've seen strength in products that arent as interest rate sensitive in the third quarter, both purchase and cash out refinancing hit New company Records rising approximately 70% year over year. This growth is a direct result of <unk>.
<unk> commitment to providing speed certainty and choice to our clients all of which are crucial and the ongoing inventory constrained highly competitive housing market.
Not only did we set a record for purchase volume in the third quarter with both our direct to consumer and partner channels, achieving all time highs.
By the end of September we had already originated more purchase volume than any full year. Prior this.
This rapid growth in the purchase segment puts us well on our way to reaching our goal of becoming the number one retail purchase lender by 2023.
Helping drive our continued growth in the purchase category as our seamless end to end homebuyer ecosystem in partnership with rocket homes.
Through our integrated platform clients can find their next house on rocket homes 50 State home listings search platform secure an agent from the company's agent network get financing through rocket mortgage have amrok conduct the title work and appraisal for them and then after closing have their mortgage serviced by rocket mortgage all from one central.
<unk> platform.
Other key drivers, helping us win in todays purchase market, our industry, leading products like our overnight underwrite in a broad range of home buying and selling services for instance, rocket homes offers the choice to sell your home through its <unk>.
On staff agents is 50 state network of real estate professionals or through is for sale by owner platform.
Additionally, we recently rolled out our breaking barriers program for our rocket protein <unk> partners.
These technology enhancements paired with programming to better connect real estate professionals and mortgage brokers are designed to give our partners the tools that they need to win today and well into the future.
As we look ahead to the next year, we expect our rocket mortgage business to achieve continued market share growth exceeding 10% share in a purchase heavy market.
This is consistent with our track record of being opportunistic to grow share.
For instance in 2019, our company's mortgage originations accounted for roughly six 5% of the market in 2020 that grew to nearly eight 5% with a fourth quarter guidance released earlier today, which Julie will walk through in more detail. We are well on pace to break 2000, Twenty's strong origination record of 300.
$20 billion and end the year with 95% market share.
As we look towards 2022, we will continue to invest in the rapid growth of our platform delivering a unified client experience across mortgage real estate auto personal loans and solar.
And our emerging businesses, we expect continued growth from rocket auto and rocket homes in 2022 on top of the record reached in 2021.
We will also formally launched our solar program and continue to target new product categories to add to the rocket platform either organically or through acquisition.
Our platform has been built to capitalize on the vast data proprietary technology trusted brand and cloud force here at rocket companies, we find over decades. These pillars of our platform are the foundation of our growth ahead with that I'll turn things over to Julie to go deeper into the numbers Julien.
Thank you Jay and good afternoon, everyone I'm pleased to report another quarter of strong financial results for rocket companies as we continue to leverage our flexible platform, while our business at scale and drive substantial profitability.
On today's call I will reference some longer term comparison, particularly looking at our 2021 performance on a two year basis relative to 2019 level given the unusual circumstances to hate to 2020.
Now I will get into the numbers.
During the third quarter of 2021 rocket companies generated $3 2 billion in adjusted revenue, which is a 76% increase from Q3 2019.
We had $1 6 billion in <unk>.
<unk> EBITDA in the quarter more than doubling the results of Q3, 2019, representing 48% adjusted EBITDA margin.
We delivered net income of $1 $4 billion.
Up 181% from Q3, 2019, and adjusted net income of $1 1 billion.
<unk> Q3 of 2019 by more than two times.
Over that same period, our adjusted net income margin was 36% and adjusted earnings per share was 57 for the quarter.
Rocket mortgage generated $88 billion of closed loan origination volume during the quarter up nearly 120% from $40 billion in Q3 2019.
Focusing on home purchase our momentum has continued with Q3 purchase volume up more than 70% year over year, marking a new company record setting just the first nine months of the year.
In fact, both our direct to consumer and partner network segment generated all time highs for purchase volume during the quarter with our higher margin direct to consumer business, having the strongest gain.
For the quarter our rate like gain on sale margin was 305 basis points, which was above the high end of our guidance range and substantially higher than multiple multichannel mortgage originators.
Gain on sale margins improved quarter over quarter in both our direct to consumer and partner networks segment.
Our emerging businesses continued to reach new record.
At rocket homes, we generated record real estate transaction value of $2 3 billion during the quarter closing more than 9000 transactions.
Our rocket homes Dot Com website continues to increase high intent traffic and was up nearly five times year over year.
$2 4 million monthly average users during Q3.
On a year to date basis rocket out of gross merchandise value or <unk> has grown nearly two five times year over year as momentum for this business continues to grow as we expand inventory partners and with the launch of rocket out our dot com.
We are leveraging our platform and strong base at $2 5 million servicing clients as of the end of October to grow and ramp these emerging businesses.
The rocket companies flywheel is based on leveraging our profitability advantages to constantly reinvest in our business driving continued growth and strengthening our competitive position.
We see tremendous potential to drive sustainable and profitable market share gains in our core mortgage business.
We are also investing to grow beyond mortgage and leverage our platform to scale, our newer real estate auto personal loans and solar businesses.
This growth will come from continued investment in the pillars of our platform, particularly technology.
Fueled by our vast data lake aggregated three millions of client interactions are technology drive speed and certainty to improve client experience.
Efficiency for our businesses and opens the door to new market opportunity.
For example, <unk>.
<unk> completed its one millionth digital closing in September <unk>.
Entering its leadership position in the E closing market.
<unk> digital experience makes the closing process easier faster and more accessible translating to a better client experience overall.
Cumulatively, our technology investments are driving meaningful change in our business. Please.
We expanded the rollout of rocket logic, which can now be used by substantially all of our rocket cloud for it.
On a year over year basis, our turn times improved by more than 33% this quarter, extending the gap between us and others in the industry.
This was achieved while generating a similar level of business with a substantially higher mix of purchase transactions, which historically take longer to close.
We're also leveraging our technology platform beyond our own four walls.
Jay mentioned, our recently announced mortgages and service offering with Salesforce opens up a new opportunity for rocket mortgage to partner with medium and large sized financial institutions that make up approximately a third of the mortgage market.
Mortgages are service represents a large incremental opportunity for rocket mortgage to continue growing market share in the years ahead.
Increasing the lifetime value of our clients is another core component to our growth strategy.
Our business is profitable on the first transaction with the client. We then maintained ongoing loan servicing relationships with $2 5 million clients, representing over 530 billion and outstanding loan principal as at the end of October.
Mortgage servicing drives a recurring cash stream for rocket company of $1 $3 billion on an annual basis, which covers nearly a quarter of our annualized expenses.
More importantly, with service unpaid principal balance at 30% in the past 12 months and net retention above 90%. We are positioned to continue to drive additional client for our platform across both our direct to consumer and partner network channels.
In addition to generating our clients organically, we acquired MSR with an aggregate unpaid principal balance of $3 $6 billion during the third quarter.
This is in accordance with our growth strategy as we have found that our industry, leading retention rate positions us to generate attractive returns through select MSR portfolio acquisition.
We remain aggressive in pursuing this strategy and we will continue to look for opportunities to deploy capital through these types of acquisition.
Looking ahead to Q4 the housing market remains active homeowners are sitting on the highest levels of home equity in history and the investments we have been making are gaining traction across the platform.
Especially with the progress we're making in purchase.
For the fourth quarter. We currently expect closed loan volume in the range of <unk> 75 billion to $80 billion.
And rate lock volume between $71 billion and $78 billion.
At the midpoint of our fourth quarter guidance range, our full year 2021 closed loan origination volume would exceed $350 billion.
Exceeding the previous record of 320 billion achieved in 2020 by more than 10%.
Rocket mortgage has a long term track record of consistent market share gains.
We have grown market share from 1% in 2009 to nearly eight 5% in 2020.
95% in 2021 and expect to reach more than 10% in 2022.
We expect fourth quarter gain on sale margin to be in the range of 265 to 295 basis points.
Regarding our expenses, we believe the run rate of operating expenses for the third quarter of 2021 is a good reference for the fourth quarter.
Turning to our balance sheet liquidity and capital allocation, we exited the third quarter with $2 $2 billion of cash on the balance sheet and an additional $2 $9 billion of corporate cash used to self fund loan origination for total available cash of $5 1 billion.
Total liquidity stood at $8 6 billion as of September.
30th including available cash plus undrawn lines of credit and Undrawn MSR line.
Keep in mind, even with the record level of originations we generated in 2021.
Need less than $1 million of cash on hand to properly operate our business.
Our business is capital light and our balance sheet is extremely strong.
As we've said before our capital priorities always start with proper capitalization and reinvesting in the business.
With $5 1 billion of available cash we had the opportunity to consider acquisitions.
Repurchase shares and return capital to shareholders via dividends as we've done in the past.
For acquisition, we look for bolt on targets that would be additive to our platform by bringing new clients into our ecosystem enhancing operational efficiencies are enhancing our product offerings.
During the third quarter, we increased the level at which we have bought back shares through the end of October we have deployed $94 million to repurchase approximately $5 7 million shares.
This is in addition to the special dividend of $1 11 per class a common share funded by an equity distribution of $2 $2 billion that was paid in March in total we have returned $2 $3 billion to all classes of shareholders during the year.
We'll deploy our capital in a strategic and disciplined manner to generate long term shareholder value.
Before we turn the call back to the operator I wanted to make you aware that we will be posting an investor presentation to the events and presentations section of our Investor Relations site by the end of the day.
The Investor presentation provides a general corporate overview of rocket that we help the investment community will find informative.
Also one small housekeeping item previously we use the terms funded loan volume and funded loan gain on sale margin since loans are considered sold when they are purchased by investors on the secondary market. We felt the terms sold loan volume and sold loans gain on sale margin aligned more closely with the definition and are the terms that we will.
To use going forward there is no change to the metrics, we are reporting only a change in the terminology.
So with that we're ready to turn it back to the operator for questions.
Thank you we will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Ryan Nash from Goldman Sachs. Please go ahead.
Hey, good evening everyone.
Hey, Ryan.
Can you hear us.
Yes, I do.
Just wanted to make sure I can hear you sorry about that yes.
Please.
You mentioned in the release this is the strongest purchase long quarter for closings ever Jay you said on the goal to be the number one retail purchase originator by 2023 and I believe at that time, you said something like 60 billion was the largest in 2020. So maybe just talk about how the initiative is progressing.
And of that goal to be greater than 10% of originations for the industry next year, how much of this can be in market share gains can come from purchase and then just second can you maybe just expand on the comment that you'll be allocating additional resources because this would not be in the form of buyer marketing or does that on the personnel side, thanks, and I have a follow up.
Okay.
Good question here, yes.
I think both Julian I referenced.
Q3 was a record in both direct to consumer and our partner networks for purchase and so.
It was a strong purchase.
<unk> in general.
But for us to see those records.
With great indicator of our growth in that area. We're excited about 2022, because if we kind of look at where industry experts are projecting theyre talking about our continued growth.
<unk> forecast.
Eight plus percent, we're seeing median home prices are estimated to be north of $435000.
As home prices grow of course mortgage amounts grow and you understand how our business works that is great for the unit economics of our business core revenue generated on the same units that we're putting through the system. So.
In general the industry looks very strong now speaking specifically to us.
Our full purchase ecosystem continues to grow our rocket homes platform the homes search experience the number of visitors.
Reaching that site is growing.
Our agent network base is growing our centralized agent.
The system is growing the way that we're integrating home financing where rocket mortgage component into all of these experiences.
Is strengthening the way, we're integrating title and settlement services. So we've been leaning in and all of these categories to make sure that not only do we provide incredible experience, where we're able to make sure we're monetizing that experience as well.
In particular with real estate agents.
We've rolled out our single or single point of contact process from our lifeblood is really important to them.
We've given our real estate <unk> tracking for appraisal and title work, which is very important to them I think we're north of 55000 agents now that are in our network and so all of these components are working and then if you watch some of the advertising that we do you'll notice that there's been a shift there driving purchase as well as cash out refinance so.
All of the levers and we've talked about this for call. After call now we're very fortunate that we've got so many distribution levers to pull but in all of those categories. We've just been leaning in to drive the purchase purchase messaging and Thats, giving us that growth and then the first add on top of it.
The strength that we're seeing in GPO and then this partnership that we're launching with sales force to reach nearly 10000. Thank you credit unions that will give us additional reach.
The purchase market.
I just think Q3 is a great indicator of all the efforts that we're putting forward that we expect to continue moving forward.
Got it thanks for all the color there and Jay you mentioned again the partnership with Salesforce can you maybe just expand on this mortgage as a service how is it going to work what will be economics look like relative to the more traditional mortgage business and I think you mentioned.
These companies originated a trillion dollars of mortgage and what would be a successful penetration rate for rocket and over what timeframe as you as you penetrate this partnership.
Yes.
Yes. This is a great addition to our partnership network. So as you know we've got these premier enterprise partners that we've been adding to our base. We started with schwab that represents billions of dollars of closed loans for us on a yearly basis, we've got our API integrations with mint and that platform credit Karma.
<unk> is a new way for us to broaden that reach and Thats really as we've talked about mortgage as a service to.
Two banks and credit unions, and if you look at these financial institutions, many of which are already using the Salesforce financial services cloud.
We're adding a rocket technology to the CRM 360 view technology that theyre already using.
And it's hard for these financial institutions on their own to make the level of investment required to really be great at mortgage and so they've got the relationships they want to retain the relationships. They want to protect all of the other ways that they interact with these clients and we know mortgages a critical way to do this now we're getting the Max.
Access to our brand our tech and that allows them to bring a great experience and allows us to two.
<unk>.
Again that client that maybe otherwise would've worked with the bank for the credit Union as you referenced that's a trillion dollars or so worth of mortgage volume.
Home price increases continue as they are scheduled to that will be growing.
When it comes to the economics.
And how we're going to really kind of penetrate this market again, we're very fortunate because we're going to be Oracle salesforce.
And as a salesforce client for many years.
Can tell you that there are sales force is incredible.
Alright, well above the billing and you said you needed.
Can you just talk about how do you think about the timing potentially additional dividends or you know or other returns of capital beyond share repurchase you've done.
Yeah Olive Julie.
Feel that one.
Yeah absolutely.
And we continue to evaluate the amount of capital we have in the business. We do have like a lot of capital as you mentioned.
We did a distribution earlier this year and will continue to think about that from time to time. So it may be something that we evaluate the capital levels that we've got and believes that we've got more than we need to continue to invest in the business consider additional acquisition opportunities and all the things that we think are are.
There for us to advance our capital in and from time to time, you may do that the share repurchase program is something else that we have been active in as well and will continue to consider as well.
But it's really going to kind of depend on how we assess the level of capital of as we go forward into the next year, maybe just two.
Add onto that a bit we've touched on this being strategic about the acquisitions that we might look at.
Four solar and we have the opportunity to take that same technologies speed uncertainty that we could bring to the table for home equity lines or those sorts of things in the future. If we think that that's advantageous right now a cash out refinance really is the product that makes the most sense for our client base.
Great. Thank you Jerry.
Yep.
In the interest of time, please limit yourself to one question on our next question comes from Aaron's began of it's from city. Please go ahead.
Thanks.
You could talk a little bit about the competitive dynamics, you're seeing in your P. P O or broker segment again on sale declined to fairly low level, they're just talk about the dynamics that are happening there.
Yeah, well, we look at our T P O business.
If we go back about four or five months we.
We had about 36% wallet sure. So all the partners that we were working with with we were getting just north of one out of every three loans.
Originated if we now look where we were in the third quarter, that's north of 50%. So we're really excited about how those partners are committing to working with rocket.
In addition, when we look at just overall market share or off two or three percentage points from where we were here in just a few months back or a few quarters back I should say so.
Loads in that market continues we just recently announced.
But our most recent offering to our partner based here, we've launched our new client portal.
Many enhancements that they've been asking for we launched our broker connect program. So we're introducing our broker partners to a real estate partner. So they can continue to develop business together across the United States of America Wiebold out rocket connect.
All of our brokers streamlined way for them to communicate directly with our operations folks guaranteeing a two hour or less churned time, if we think is leading the industry. So.
As you can tell we are fully committed to making sure that we are the premier provider of these services to our tech partners.
And that's really again, so go back to the platform.
We're talking are prepared remarks about how we're leaning into direct to consumer because we have that ability to market the cash out refinance market the purchase and grow there, but I think we're also uniquely positioned to continue to invest in the TBO business because of how well diversified.
And then two three there's always going to be errands, and Margaret from quarter to quarter and we saw this is better compression and the primary and secondary spread in October compared to last quarter, but based on what we're seeing today and taken into account everything down so far this quarter, we're seeing margins a bit lower than Q3, right now, but we do feel good about that range, where we are.
Guiding for this quarter, which is 265, two 295 basis points in that guidance is fairly consistent with where we've been for the past couple of quarters as well.
As J mentioned, we've seen records and are.
Cash out and purchase transactions in the equity continues to grow that homeowners have we continue to grow our market share and are looking to continue to do that into into next year as well.
Great. Thank you.
Yep.
The next question comes from Brooklyn enter fleet from UBS. Please go ahead.
Oh, great. Thanks for the question.
So just just in general J I feel like it.
Dusters in the space are kind of collectively holding their breath.
Seeing.
Both current performance, which is which is very good but also worried about you know what next year may bring looking at you know things like the M B a forecast and such.
Do you know how should we feel about next year in terms of the things like Salesforce.
The cash out refi opportunity provide you.
Real shock absorbers, where the the volume forecast that we see from some of these macro providers is is really irrelevant because you can kind of make up the difference or is that something we should really be.
He focused on because you know, it's it's a big market and you're a big player and you're going to kind of move with with the broader market how should we think about that.
Yeah, you're touching on our life work here at rocket companies.
So so when I started 26 years ago that was very aware of market conditions and market changes and how that could impact.
Ridge companies volume and so we have we have especially over the last 10 years.
I would say.
It is market share that's why we're projecting to go north of 10% market share we've consistently been growing market share regardless of the size of the pie.
All of these vehicles I've, just I've just discussed and that's what we anticipate that we will do in 2022.
Okay.
As a follow up if you could just kind of describe the ground game now in terms of the partner network, specifically youre growing that network.
How are the.
How are the competitive dynamics there as they seek to add.
More weight.
Well when you think about the ability for our partners to tie into the digital experiences we create the API that we've created.
The financial institutions, like a Morgan Stanley or Charles Schwab or mass mutual.
<unk>.
I really feel strongly that if a financial institution wants to partner with someone that can deliver incredible client service and has a highly respected brand.
We are the choice for them really the only choice for them.
So that that partner business.
We will continue to serve us very very well when you think about our broker partners, we're bringing incredible value to them, we've got our folks traveling the country now.
Setting up these connects aligning the real estate agent partners, we've got with our broker partners strengthening the relationships there.
We've got the technology to ensure that our brokers can perform.
We've got the brand that they can leverage.
We're really turning all of the assets of this organization and offering them to any one that we'd like to partner whether it be a bank credit Union, a insurance agents, a financial planner or a mortgage broker and so that partner channel.
Is one of the main components of the future.
All of our business and so it's exciting to see its growth and I imagine its growth will continue.
Got it okay. Thanks for the questions.
Our next question comes from Ivy Zelman from Zelman <unk> Associates. Please go ahead.
Thanks, guys for taking my questions and nice quarter when you look at the.
Partner business and just overall the continued growth outside of mortgage and assuming they purchase and thinking about the cyclicality of those businesses.
The unit, but when Julie talks about the growth.
The unit, but when Julie talks about the growth.
I'm not aware of another real estate for auto sales organization, that's growing at the rate that we're growing and I think that speaks to the scale of the scalability of the platform I think it speaks to the brand and how.
Consumers months, there with rocket really value the relationship and so we'll continue to see those businesses grow.
I guess any everyone will have to make their own determination as to what is a meaningful percentage of revenue is that 5% of revenue was at 10% of revenue. Our mission is to continue to add these services and.
Allow the the the lifetime value of the client and the reoccurring revenue of that clients over over an extended period of time to really be the measure when I talked to the company. We don't talk anymore of course were lithium units closed in volume, but what we're really talking about are the number of users on our platform.
How many millions of people do we talk to each month, how many millions of people do we have on the servicing platform and that's a shift I think from the traditional mortgage industry, but you've got to make that shift because that's really how we're thinking about it if we have the ability to reach.
510, 15, 20 million Americans, a year and understand their finances understand their credit understand their property. Then you start picking up a power of that relationship and that becomes more meaningful over the long run than a closed alone and so that's the that's the lens.
That were really starting to view our business service, how many users that we're putting on on the platform.
In regards to your your other question about when we think about market share now.
Turn to Julie here, but I think we we look at the overall closed loan market and divide are.
Closings, we have into that historically, we have Edward Tech and gayheart somebody's remote and we're talking about what happened in the market is that working in 2000 2002, we expect to be 10% of that salad and something that historically, that's the way that we have looked at ethanol recently reported when we're taught.
Looking about market share.
Clearly.
Any increase in the performance marketing. This for you mentioned that also the head count that we as last order in Q3 will have a four four quarters of expenses here in the fourth quarter as well, so that's going to contribute to a slight increase but.
And Julie this just in because we're doing this wise.
The answer I. These question, we take Fannie Freddie M B, a and her.
And the average those to kind of think of what the overall market deals as we look forward and then right.
We're talking about 10% on average.
Yeah.
Okay. Thank you.
For next question comes from here, but to you from Bank of America. Please go ahead.
Hi, Thank you for taking my question.
I just wanted to.
Go back to the same source discussion for a second.
Maybe just talk about that.
Little bit fault really what I'm trying to understand is.
<unk> call Premier.
Partners that we've got a mint and I know Julie's reference these are more similar to a retail margin.
From that perspective.
If I could just a quick follow up on the New York legislation on the CIA requirements of plankton on bank will that have any impact on your business.
He's talking about that thank you.
Let's turn it over to Bob Walter who happens to be here with us as our Chief operating officer and also an expert capital Miss I think the answer to that is no I don't think that that's going to have any substantial impact on our business.
Thank you.
The next question comes from Kevin Barker from Piper Sandler. Please go ahead.
Thank you for taking my questions.
Yes.
The next question comes from Ryan car from Jeffries. Please go ahead.
Hey, good afternoon, guys and congratulations on the great results this quarter and you've done a great job leveraging the broad platform an ecosystem to enhance the flywheel effect and expand your purchase capabilities, particularly on rocket homes in your Ibuying program I'm curious to hear about how this can combined with your other service offerings as Hell.
To bolster your leadership and purchase, particularly with a quarter and then given the recent incidents of Zillow. How do you plan to continue to take advantage of the dislocation.
[noise] Yeah I've heard good question, so our our mission here with rocket homes and with for sale by owner Dot Com and with our centralized realtor group and our.
Network of real estate agents is really to make sure that we have an offering for any one.
Buying or selling homes.
Auto.
Then maybe the type of lead you could think of that will be generated from an auto trader dot com or a cars dot com or something of that nature. We've already got the relationship with the client. We've also got a significant amount of data.
And as we see and.
Won't figure out if it's the second part of 2022 or so you get into 2023, it's hard to say, but eventually there'll be more inventory.
That is out there and it's just more inventory on dealer lots I think we'll see even increased desire from our dealer partners to have us assist.
And driving sales and so Julie touched on the growth that we've seen from rocket auto this year and what I would argue might be the one of those challenging years for this business because it's.
It's very rare that you would go to a dealer today and asked them, if they're having trouble selling cars.
Yet, they're calling us and wanting to jump on our platform any more normalised market, where they can use that additional support will get even more excited about the opportunity for that business to continue to grow.
Thank you very much and congrats again on a great quarter.
Thank you.
This concludes our question and answer session I would like to turn the conference back over to J foreigner for any closing remarks.
Well. Thank you everyone for joining the call here today as I started out the call couldn't be.