CoreLogic (CLGX) reported third-quarter revenue of $386.4 million, climbing 5% above last year’s third quarter and up slightly from the second quarter, when the global property information, analytics and data-enabled services provider reported revenue of $386.0 million.
According to CoreLogic, the growth was driven primarily by property, insurance, international and underwriting solutions, which more than offset foreign currency translation impacts and lower project-related volumes.
CoreLogic reported that its operating income from continuing operations totaled $65.9 million for the third quarter compared with $77.8 million for the third quarter of 2014 and $60.7 million for the second quarter of 2015.
Improved operating income performance resulted primarily from revenue growth and the benefits of cost management programs that were partially offset by increased investment levels in technology, compliance and process enhancements and currency translation impacts, the company said.
“CoreLogic delivered another strong operating performance in the third quarter despite currency headwinds and challenging market dynamics. Revenues were up 7% in constant currency terms as we delivered gains in many of our core underwriting and risk management operations,” said Anand Nallathambi, president and chief executive officer of CoreLogic.
“We continued to build share in the mid and mass market while expanding and deepening relationships with our existing blue-chip client base," Nallathambi said.
“We are excited about the launch of our data-driven property valuation solutions group which we expect to provide additional future growth opportunities,” Nallathambi. “We believe we possess unique data, analytics and data-enabled services that, collectively, will enable our clients to more accurately estimate the value of properties and evaluate important factors that may influence that value – now and in the future."
CoreLogic’s third quarter net income from continuing operations totaled $28.3 million compared with $49.7 million in 2014. The $21.4 million year-over-year decrease was driven primarily by increased tax provisions, non-recurring gains recognized in the third quarter of 2014 which had no 2015 counterpart and currency translation impacts, the company said.
"Our strong third-quarter financial performance reflects the continuing shift in our business mix toward scaled platforms that provide unique data-driven insights with higher levels of subscription-based revenues,” said Frank Martell, chief operating and financial officer of CoreLogic.
“The durability of our business model allows us to continue to invest in our products and services, technology leadership and operational improvements and, at the same time, return significant amounts of capital to our shareholders and manage our debt," Martell added. "Importantly, we delivered adjusted EBITDA margins above 30% in the third quarter despite significant reinvestment in the business. As we move forward, we expect these investments to contribute to higher top-line growth and margin expansion."
