FinTech: Black Knight Reports Strong Q1 Earnings on Flat Revenue

May 7, 2020 | FinTech, News, Real Estate
https://dailyalts.com/wp-content/uploads/2020/05/BKFS_TDA_logo_RGB_Wt_outline_Ktype_RegMark.png

However, the fintech factored in the impact of COVID-19 and lowered its annual guidance.

Financial technology specialist Black Knight Inc. (NYSE: BKI) reported robust earnings during the first quarter. Earnings per share of $ 0.34 beat estimates by $ 0.08. Revenue of $ 290.8 million, which was up 2.7% year-on-year, beat estimates by $ 4.21 million. (Seeking Alpha)

Company fundamentals

“Our underlying business fundamentals remain strong and our performance highlights the strength of our comprehensive solution set,” said Chairman Bill Foley. “While there have been significant industry impacts due to COVID-19, Black Knight is well-positioned to meet the challenges presented by the current pandemic while continuing to execute against our long-term strategic initiatives.”

However, the company clarified that the Covid 19 outbreak had delayed the timing of certain revenues, particularly in the Specialty Servicing software business due to the foreclosure moratorium and the forbearance plans offered under the CARES Act. As a result it revised guidance for the full year 2020.

Q1 earnings

First Quarter 2020 revenues were $290.7 million, up 3%. Net earnings grew 93% to $50.1 million at a margin of 17.2%. Diluted EPS surged 89% to $0.34.

The company is a leading provider of integrated software, data and analytics solutions that facilitate and automate many of the business processes across the homeownership lifecycle.

Segment -wise, the Software Solutions business grew revenue by 0.5% to $ 244.7 million, and reported an EBITDA of $ 139.4 million, down by 1% year-on-year.

The Data and Analytics business reported revenue of $ 46.1 million, up 16% over the prior year quarter. EBITDA zoomed 47% to $ 14.6 million.

Outlook for the full year 2020

The company revised its outlook for the full year of 2020 as follows.

It estimates revenue to be in the range of $1.164 billion to $1.184 billion. That’s down from a previous range of $1.190 billion to $1.214 billion.

Adjusted EPS is expected to be in the range of $1.90 to $1.97, down from $1.97 to $2.06.

Black Knight acquisitions

In March, Black Knight acquired Collateral Analytics, a provider of automated valuation models and other property valuation tools for appraisers, lenders, investors, and government agencies.

Collateral Analytics holds proprietary assets including data representing approximately 600,000 neighborhoods across the nation; property-specific traits that influence valuation; household demographics on over 100 million individual households; and commercial market sales comps, rent prices and capitalization rates.

In February, Black Knight purchased Quicken Loans “Cyclops” mortgage servicing customer relationship management software.

“The Cyclops software provides a number of tools Quicken Loans uses to meet the needs of today’s mortgage consumers,” Black Knight said in a statement. “This software suite will serve as the foundation for a highly advanced customer service solution that Black Knight will be offering to clients of its industry-leading MSP servicing system.”

Related Story:   Real Estate: Green Street Advisors Talks Coronavirus and Real Estate                                                

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/12/60148621_1291834164298938_7384402834688573440_n.jpg
FinTech: LatAm BNPL Provider Kueski Nabs $202M Series C Round
December 3, 2021     FinTech, News, Venture Capital

Kueski is one of the largest buy-now-pay-later (BNPL) and digital lenders in Latin America. It announced December 2 its close of a $202 million Series C debt and equity round….

https://dailyalts.com/wp-content/uploads/2021/12/bitcoin-gd3611bef8_640.jpg
Digital Assets: Renowned Investor Charlie Munger Sides With China On Its Crypto Ban
December 3, 2021     Digital Assets, News

Charlie Munger has shot off another broadside against bitcoin, endorsing China’s action in banning cryptos. A long-standing bitcoin skeptic, Munger was speaking in an interview for the Sohn Hearts &…

https://dailyalts.com/wp-content/uploads/2021/12/rider-img.jpg
Venture Capital: 15-Minute Delivery Startup JOKR Raises $260M Series B
December 3, 2021     News, Venture Capital

New York-based instant grocery delivery startup JOKR has become a unicorn within nine months of its launch and raised a $260 million Series B within five months of raising $170…

https://dailyalts.com/wp-content/uploads/2021/12/img-scaled.jpeg
Venture Capital: Porsche Buys A Stake In Sustainable Homes-Focused Startup 1KOMMA5°

Porsche, the German car maker, has taken a stake in Hamburg-based startup 1KOMMA5° through its venture finance arm, Porsche Ventures. The startup seeks to boost the rollout of presently decentralized…