In This Article:
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Full-Year Funded Loan Volume: $3.6 billion, a 19% increase year over year.
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Full-Year Revenue: $108 million, a 50% increase year over year.
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Adjusted EBITDA Loss: $121 million for the full year, reduced by 26% year over year.
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Q4 Funded Loan Volume: $936 million, a 77% increase year over year.
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Q4 Revenue: $25 million, compared to $18 million in Q4 of the previous year.
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Gain on Sale Margin: Improved from 1.95% in 2023 to 2.17% in 2024.
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Q4 Total Expenses: Approximately flat versus 2023, with a 24% decrease excluding one-time expenses.
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Loan Origination Expenses: Decreased by 28% in Q4 compared to Q3.
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Compensation-Related Expense: Decreased by 21% in Q4 compared to Q3.
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Marketing and Advertising Expenses: Decreased by 27% in Q4 compared to Q3.
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NEO Home Loans Funded Loan Volume: $95 million since January 2025.
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NEO Gain on Sale Margin: Approximately 365 basis points.
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Q4 GAAP Net Loss: Approximately $59 million.
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Q4 Funded Loan Volume Composition: 62% purchase, 18% Home Equity Loans, remainder refinance.
Release Date: March 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Better Home & Finance Holding Co (NASDAQ:BETR) achieved a 19% year-over-year increase in funded loan volume and a 50% increase in revenue for the full year 2024.
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The company reduced its adjusted EBITDA losses by 26% year over year, demonstrating improved financial management.
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BETR's AI initiatives, including Tinman AI and Betsy, have significantly enhanced operational efficiency, reducing the cost to originate loans by over 35% compared to industry averages.
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The company reported a 416% year-over-year increase in HELOC and Home Equity Loan volume in Q4 2024, outpacing industry trends.
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BETR's partnership with NEO Home Loans is showing early success, with NEO serving approximately 220 families and achieving a gain on sale margin of 365 basis points, higher than the company's overall margin.
Negative Points
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Despite increased volumes, BETR reported a total GAAP net loss of approximately $59 million in Q4 2024.
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The company faced challenges with historically low housing affordability and high mortgage rates, impacting overall market demand.
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BETR incurred approximately $17 million in non-recurring restructuring expenses due to the wind down of its UK businesses.
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The wind down of the partnership with Ally Bank is expected to impact volume, as Ally accounted for 19% of Q4 2024 volume.
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BETR's Q4 2024 funded loan volume was down approximately 10% sequentially due to normal seasonal slowness in the purchase market.