Aurora Acquisition Corp. Class A ((BETR)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The earnings call for Aurora Acquisition Corp. Class A reflected a predominantly positive sentiment, highlighting substantial growth in loan volume and revenue, alongside advancements in AI-driven efficiencies. The company showcased notable progress in AI technology and the successful expansion of the NEO Home Loans platform. However, the overall outlook was tempered by ongoing adjusted EBITDA losses and challenges related to partnerships and market conditions.
Substantial Growth in Loan Volume and Revenue
Better Home & Finance Holding Company reported a remarkable 19% year-over-year increase in funded loan volume and a 50% year-over-year increase in revenue for the full year 2024. This substantial growth underscores the company’s ability to capitalize on market opportunities and expand its financial footprint.
AI-Driven Efficiency Improvements
The company achieved significant efficiency improvements through AI and automation initiatives, reducing adjusted EBITDA losses by 26% year-over-year. Additionally, loan origination expenses decreased by 28%, compensation-related expenses by 21%, and marketing and advertising costs by 27%, showcasing the impact of technology on operational efficiency.
Significant Growth in HELOC and Refinance Loans
The fourth quarter of 2024 saw a dramatic increase in HELOC and home equity loan volume, which surged by 416% year-over-year. Refinance loan volume also rose by an impressive 611% from the end of 2023, reflecting strong demand in these segments.
Advancements in AI Technology
The AI voice-based loan assistant, Betsy, demonstrated significant growth, handling over 115,000 consumer interactions in February 2025, a growth rate of over 20 times since June 2024. This advancement highlights the company’s commitment to leveraging AI to enhance customer interactions and streamline processes.
NEO Home Loans Expansion
Since its inception in January 2025, NEO Powered by Better has onboarded approximately 110 loan officers across 53 branches, serving around 220 families and generating $95 million in funded loan volume. This expansion signifies a strategic move to strengthen the company’s market presence.
Improving Gain on Sale Margin
The gain on sale margin improved year-over-year from 1.95% in 2023 to 2.17% in 2024, with NEO Home Loans achieving an average gain of sale margin of approximately 365 basis points. This improvement indicates enhanced profitability in the company’s operations.
Seasonal and Partnership Challenges
The fourth-quarter funded loan volume decreased by approximately 10% quarter-over-quarter due to normal seasonal slowness and the wind-down of the Ally Bank partnership. These challenges highlight the external factors impacting the company’s performance.
Continued Adjusted EBITDA Losses
The company reported an adjusted EBITDA loss of $20 million in the fourth quarter of 2024 and a total GAAP net loss of approximately $59 million, indicating ongoing financial challenges despite operational improvements.
Market and Affordability Concerns
Persistently high mortgage rates in the high sixes to low 7% range continue to strain mortgage demand, affecting overall market performance. These market conditions pose challenges to the company’s growth trajectory.
Forward-Looking Guidance
In its forward-looking guidance, Better Home & Finance Holding Company expects mid-double-digit percentage growth in funded loan volumes for 2025, despite the loss of its partnership with Ally Bank. The company remains focused on leveraging AI to drive growth and efficiency, aiming to further reduce costs and enhance operational performance.
In conclusion, the earnings call for Aurora Acquisition Corp. Class A painted a picture of significant growth and technological advancement, tempered by ongoing financial challenges and market conditions. The company’s strategic focus on AI-driven efficiencies and expansion of the NEO Home Loans platform positions it well for future growth, despite the hurdles it faces.