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Doma Holdings, Inc. (DOMA)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 revenue was $66.067M, down 22% sequentially versus Q4 2023, with retained premiums and fees at $13.676M and adjusted EBITDA loss widening to $5.562M .
  • Gross profit improved year over year to $4.108M and adjusted gross profit to $7.093M; adjusted gross profit ratio rose to 52% versus 35% in Q1 2023, reflecting lower claim provisions and operating cost progress .
  • Net loss (GAAP) was $20.551M; interest expense increased to $6.604M; cash and equivalents ended at $61.467M .
  • Company entered a definitive agreement to be acquired by Title Resources Group at $6.29/share; Doma did not hold an earnings call or provide guidance given the pending go‑private transaction .
  • Near-term catalysts are merger timeline, stockholder vote/insurance regulatory approvals, and FHFA/Fannie pilot developments referenced by management .

What Went Well and What Went Wrong

  • What Went Well

    • Adjusted gross profit ratio improved to 52% (Q1 2024) from 35% (Q1 2023), indicating mix/efficiency progress despite macro headwinds .
    • Provision for claims dropped to $0.730M vs $3.287M in Q1 2023, supporting gross profit gains .
    • Strategic momentum: Upfront Title pilot launched with a major mortgage software platform and national lender in Q4; management highlighted alignment with FHFA/Fannie initiatives to reduce title costs (“we welcome the focus of Fannie Mae…leading position to participate in their pilot program.”) .

  • What Went Wrong

    • Revenue fell 22% q/q; adjusted EBITDA loss widened to -$5.562M from -$2.832M in Q4 as volumes softened with 20‑year‑high mortgage rates and constrained housing supply .
    • Interest expense rose to $6.604M, pressuring bottom-line results; GAAP net loss remained elevated at -$20.551M .
    • No guidance and no earnings call due to pending transaction, reducing near-term visibility for investors .

Financial Results

Sequential comparison (oldest → newest):

MetricQ3 2023Q4 2023Q1 2024
Revenue ($USD Millions)$76.240 $84.612 $66.067
Gross Profit ($USD Millions)$3.079 $4.795 $4.108
Adjusted Gross Profit ($USD Millions)$6.021 $7.755 $7.093
Adjusted Gross Profit Ratio (%)39% 47% 52%
Adjusted EBITDA ($USD Millions)$(5.277) $(2.832) $(5.562)
Net Loss (GAAP) ($USD Millions)$(25.626) $(20.788) $(20.551)

Year-over-year comparison:

MetricQ1 2023Q1 2024
Revenue ($USD Millions)$68.812 $66.067
Net Loss per Share (Basic & Diluted, $USD)$(3.19) $(1.50)
Net Loss from Continuing Ops per Share (Basic & Diluted, $USD)$(2.37) $(1.42)
Gross Profit ($USD Millions)$2.101 $4.108
Adjusted Gross Profit ($USD Millions)$4.963 $7.093
Adjusted Gross Profit Ratio (%)35% 52%

KPIs and selected components:

KPI / ComponentQ1 2023Q4 2023Q1 2024
Retained Premiums & Fees ($USD Millions)$14.275 $16.557 $13.676
Net Premiums Written ($USD Millions)$66.770 $73.736 $63.513
Premiums Retained by Agents ($USD Millions)$54.537 $60.815 $52.391
Provision for Claims ($USD Millions)$3.287 $3.337 $0.730
Personnel Costs ($USD Millions)$25.408 $15.521 $14.615
Total Operating Expenses ($USD Millions)$95.933 $93.093 $79.202
Cash & Equivalents ($USD Millions)—$65.939 (FY end) $61.467

Note: Doma reports consolidated results; local retail operations were exited and classified as discontinued beginning Q3 2023; figures here reflect continuing operations unless noted .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
All metrics (revenue, margins, OpEx, etc.)Q1 2024 and forwardNot provided in releasesNo guidance; no earnings call due to pending TRG mergerSuspended

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2023 and Q4 2023)Current Period (Q1 2024)Trend
Upfront Title productAnnounced pilot with major mortgage software platform and national lender; onboarding and commercial terms underway . Successfully launched pilot; early encouraging results; aim to expand in 2H 2024 .No call; continued strategic alignment mentioned; focus on lender title innovation .Progressing from announcement → pilot launch → positioning for expansion.
FHFA/Fannie initiativesFHFA “title acceptance” pilot noted; Doma believes it is well-positioned to participate; emphasis on affordability and technology .CEO welcomes Fannie Mae focus; asserts Doma’s tech and scale position for pilot participation .Regulatory alignment gaining visibility.
Profitability trajectoryAdjusted EBITDA improved sequentially Q3 to Q4; near breakeven goal cited; risks from interest-rate environment .Adjusted EBITDA loss widened sequentially in Q1 with macro headwinds .Improvement stalled by macro rates/housing supply.
Corporate actions—Definitive agreement to be acquired at $6.29/share; delisting anticipated upon close; approvals required .New development; focuses investor narrative on transaction timeline.

Management Commentary

  • “With mortgage rates at twenty-year highs and housing supply severely constrained... we welcome the focus of Fannie Mae in this area, and believe our scale- and market-tested technology puts us in a leading position to participate in their pilot program.” — Max Simkoff, CEO (Q1 2024 press release) .
  • “We are pleased to have successfully launched our Upfront Title pilot program... we are very encouraged by the early results... we would be in a position to expand our partnership in the second half of the year...” — Max Simkoff (Q4 2023 press release) .
  • “While our results fell just shy of our ambitious goal of reaching adjusted EBITDA profitability in Q4... continued degradation of the interest rate environment... Looking ahead, our focus... on growing our revenue and expanding our margins...” — Mike Smith, CFO (Q4 2023 press release) .

Q&A Highlights

  • No analyst Q&A this quarter; Doma did not hold an earnings conference call due to the pending transaction .

Estimates Context

  • S&P Global/Capital IQ consensus estimates for DOMA Q1 2024 were unavailable via our data source due to missing CIQ mapping; therefore, no beat/miss determination versus Wall Street consensus can be made and estimates-based tables are not included [GetEstimates error].
  • Company also did not provide forward guidance or host a call, limiting external estimate anchoring this quarter .

Key Takeaways for Investors

  • Sequential volume/mix pressure: revenue declined 22% q/q to $66.067M as mortgage rates and low supply weighed on activity; profitability metrics deteriorated sequentially (adjusted EBITDA -$5.562M) .
  • Underlying efficiency: adjusted gross profit and ratio improved y/y (to $7.093M and 52%) with lower claim provisions and leaner operating costs, partially offsetting macro headwinds .
  • Balance sheet watch: cash and equivalents at $61.467M; interest expense elevated at $6.604M — monitor financing and debt amendments disclosed in the merger-related 8-K .
  • Strategic optionality: Upfront Title pilot momentum and alignment with FHFA/Fannie initiatives could open higher-margin licensing economics over time if adopted at scale .
  • Transaction-driven narrative: $6.29/share go‑private agreement with TRG shifts focus to approval milestones and closing conditions (stockholder vote of disinterested holders, multiple insurance regulatory approvals, debt arrangements) .
  • No guidance/no call: reduced near-term visibility; investors should track merger proxy filings, vote timing, and pilot progress for catalysts .
  • Risk factors: interest-rate sensitivity, title industry/regulatory dynamics, financing terms, and transaction execution risks identified in filings remain key watch items .