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During Rocket Companies‘ third-quarter 2024 earnings call, the Detroit-based parent company of Rocket Mortgage said that it expected adjusted revenue of $1.05 billion to $1.2 billion in the fourth quarter.
But on Thursday’s earnings call for Q4 2024, the company reported that it generated net revenue of $1.8 billion and adjusted revenue of $1.2 billion, with the latter figure coming in at the high end of Rocket’s expectations.
Per Brian Brown, Rocket’s chief financial officer, this represents a 34% increase from Q4 2023 and marked the company’s sixth consecutive quarter of year-over-year adjusted revenue growth.
Tech-driven growth
Rocket Companies CEO Varun Krishna said that Rocket Mortgage generated $27.8 billion in origination volume in the fourth quarter, a 61% annual increase. Rocket’s gain-on-sale margin was 2.98%, an increase of 30 basis points compared to the same period in 2023.
The company expanded its reach through innovative products like ONE+ and Welcome Home Rate Break, as well as key investments in AI-driven technology, like Navigator and Rocket Logic.
Rocket estimates that its tech investments saved 1 million team member hours through artificial intelligence automation and increased overall efficiency, allowing Rocket to serve 54% more clients than it did a year ago.
“Our financial performance was driven by profitable market share growth. Our North Star metric, purchase, remains our focus for growth,” Krishna said during the earnings call.
“With no single player holding more than a single-digit market share, we grew our purchase share year over year through focused innovation and execution, improving every part of our business, and we are investing strategically to accelerate this growth.”
He went on to say that Rocket’s “super stack” platform is fueling its strong financial numbers.
“It’s built on four key layers: our end-to-end ecosystem, proprietary AI-driven technology, a seamless multichannel experience, and the strength of our iconic brand.
“… Our ecosystem is the foundation of what makes Rocket unique, and its heart is our origination and servicing flywheel. The scale of both sides feed into and amplifies the other, allowing us to grow in nonlinear ways.”
New year, new focus
Last quarter, Krishna touted Rocket’s subservicing deal with Annaly Capital Management, its high recapture rates and the super stack as drivers for the company’s 2025 strategy. This week’s earnings call delivered on Krishna’s estimated growth trajectory and the overall promise of Rocket’s flywheel.
“We’ve strategically expanded our servicing portfolio through self-origination, bulk acquisitions and key partnerships. By the end of 2024, our portfolio reached $593 billion in unpaid principal balance, a 17% increase, while also welcoming 308,000 new servicing clients and bringing our total to 2.8 million,” he shared with investors. “As our servicing capabilities grow, so does our origination business.”
While the third quarter focused more on Rocket’s shift in strategy for mortgage servicing rights, the call to recap fourth-quarter earnings shifted to discussing the company’s marketing strategies. This comes on the heels of a January 2025 rebrand and heavily publicized Super Bowl commercial to introduce the “Own The Dream” campaign.
“The impact was immediate. Traffic to our digital platform surged, and according to The Harris Poll, Rocket’s brand awareness increased by nine points in familiarity and six points in consideration — the largest list of any brand measured,” Krishna said. “Our brand refresh is the first step in an ambitious journey to solidify Rocket as the leader in homeownership and make it one of America’s most culturally relevant brands.
“A trusted brand is one of the most powerful drivers of decision-making,” he added. “It creates an emotional connection that makes a lasting impression, and when done right, it speaks not just to logic, but to the heart, especially when it comes to something as important as homeownership. Under Jonathan [Mildenhall]’s leadership, we have deliberately and strategically evolved our approach to marketing and positioning the Rocket brand with a fresh look and a deeper purpose.”
