Risk modelling firm CoreLogic has announced a 4% increase in reported revenues to $477 million in the second-quarter of 2020, and organic revenue growth of roughly 5%, up over 2% from the previous quarter.
CoreLogic states that revenues were actually up by 15% once normalised for $28 million of second-quarter 2019 revenues attributable to non-core default tech units sold and the AMC transformation, which have no 2020 counterpart, and also a $15 million impact attributable to the COVID-19 pandemic.
The 5% organic revenue growth reported by the firm was driven by broad-based market share gains, value pricing and solutions bundles.
Overall, CoreLogic has reported operating income from continuing operations of $91 million in Q2 2020, which is an increase of $76 million. At the same time, net income from continuing operations reached $59 million in Q2 2020, compared with a prior year loss of $6 million.
Frank Martell, President and Chief Executive Officer (CEO) of CoreLogic, commented: “CoreLogic delivered exceptional operating and financial results during the second quarter and first half of 2020. Despite the challenges attributable to the COVID-19 pandemic, our record performance stands as a clear confirmation of the value creation upside inherent in our strategic plan.
“Based on accelerating growth trends, competitive wins and share gains, as well as expanded profitability, we are looking ahead to an even stronger second half of the year. Our financial results in the first half of 2020, our views of current market conditions and our internal business plans give us high confidence in achieving our longer-term targets in 2021 and beyond.”
Interestingly, CoreLogic has also provided some updated guidance on both its Q3 performance and full-year 2020 outcome in light of the ongoing pandemic.
In Q3, the firm expects financial implications attributable to COVID-19 of between $10 million and $15 million in both revenue and adjusted EBITDA. For the full-year, CoreLogic expects financial implications attributable to COVID-19 of between $40 million and $45 million in both revenue and adjusted EBITDA.
As well as its Q2 performance, CoreLogic has revealed a 50% increase in its quarterly dividend and intentions to repurchase $1 billion of its shares by the end of 2022, including at least $500 million by the end of this year.
Additionally, the risk modeller has announced plans to divest its reseller businesses, Tenant Screening and Credit and Borrower Verification Solutions.
“As we celebrate our tenth anniversary as a public company, CoreLogic has emerged as an integrated, data-driven strategic partner for virtually every lender and the thousands of other participants that collectively comprise the housing finance and insurance landscape.
“Our accelerating revenue growth and financial performance demonstrate our ability to capitalize on our market-leading positions, unmatched data, and client platforms, which collectively connect the global housing economy and help millions of people find, buy and protect the homes they love,” said Martell.