Mortgage

Black Knight raises outlook for 2021 to sturdy earnings within the second quarter

Black Knight's expanded repertoire of mortgage products contributed to a 23% annual revenue jump in the second quarter, company representatives said.

The mortgage and real estate technology, data, and analytics company reported net income of $ 39.7 million, compared to $ 54.1 million in the first quarter and $ 39.1 million last year. Shareholders made $ 0.25 in diluted earnings per share, up from $ 0.35 quarterly and $ 0.26 annually.

Black Knight's recent acquisitions accounted for $ 291.7 million of total spending, up from $ 281.9 million in the opening quarter of 2021 and $ 216.6 million a year ago.

In the second quarter, Black Knight bought marketing company Top of Mind for $ 250 million and analytics provider eMBS for an undisclosed amount. In addition, the company has integrated its July 2020 acquisition of Optimal Blue with pipeline monitoring, enabling customers to have automated data synchronization and reducing a labor-intensive, error-prone process, Chairman and Chief Executive Officer Anthony Jabbour said on the conference call.

"Lenders and service providers continue to see the value of leveraging our innovative end-to-end technology across the mortgage continuum," said Jabbour. "We believe M&A is a great tool to complement our internal innovations, which is why we have completed six acquisitions since March 2020."

Though expensive, this expanded portfolio propelled the company's business. Black Knight reported sales of $ 361.3 million, an increase of $ 349.7 million per quarter and $ 293.1 million annually.

Broken down by segment, its software solutions – including the loan service platform and lending system – carried the burden for the company, with revenues of $ 305.4 million and operating income of $ 141.6 million. These increased from $ 295.8 million and $ 139.7 million quarterly and $ 245.1 million and $ 116 million year over year.

Data and analytics generated revenues of $ 55.9 million on operating income of $ 17.1 million, compared to $ 53.9 million and $ 15.9 million in the first quarter and $ 48.2 million $ 12.3 million annually. Meanwhile, the corporate segment generated no revenue and posted an income loss of $ 89.1 million. It stayed largely at the same level as the previous quarter's operating loss of $ 87.8 million, but suffered more damage than the previous year's loss of $ 51.8 million.

With the strong first half of the year, Black Knight has raised its outlook for 2021 and expects sequential sales growth, Jabbour said. It now forecasts a full year revenue cap of $ 1.463 billion compared to $ 1.428 billion last quarter, adjusted EBITDA of $ 716 million from $ 711 million, and earnings per share of $ 2.29 Dollars from $ 2.24.

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