Real Matters Reports Strong Q1 Results Despite Market Declines

Real Matters Inc. (TSX: REAL), a leading network management services platform for the mortgage and insurance industries, has reported its financial results for the first quarter ended December 31, 2023. Despite an estimated 18% decline in total mortgage origination market volumes, Real Matters' consolidated revenues declined by only 7% year-over-year, demonstrating the company's ability to leverage its platform to improve margins.



The U.S. Appraisal segment posted its highest Net Revenue(A) margin on record, at 27.9%, up 90 basis points year-over-year. This impressive performance was driven by the segment's ability to outperform market declines in purchase and refinance revenues, which increased a combined 13.9% year-over-year compared with an estimated decline in addressable market volumes of 1.5%. Real Matters' competitive positioning in U.S. Title also contributed to its overall performance, with the segment reporting strong progression on its scorecards and laying the foundation for continued market share growth.



Real Matters' focus on market share gains and new client launches has also contributed to its financial performance in the first quarter. The company launched three new clients during the quarter, further expanding its market reach and client base. Additionally, Real Matters reported sequential market share gains in U.S. Appraisal, U.S. Title, and Canada, demonstrating the company's ability to capitalize on market opportunities and strengthen its competitive position.



Real Matters' platform and network management capabilities have enabled it to outperform market declines in U.S. Appraisal revenues by leveraging its technology and extensive network of qualified professionals. The company's ability to quickly adapt to market conditions and scale its operations has allowed it to maintain its competitive edge and capitalize on market opportunities.

In conclusion, Real Matters' strong first quarter results demonstrate the company's ability to leverage its platform to improve margins and outperform market declines in U.S. Appraisal revenues. The company's focus on market share gains and new client launches, combined with its platform and network management capabilities, has enabled Real Matters to maintain its competitive edge and capitalize on market opportunities. As the market recovers, Real Matters remains optimistic about its ability to improve its financial performance and continue to position its business for growth.