CoreLogic Inc. plans to exit some of its noncore software platforms and expedite its multiyear plan to rebound appraisal management services operations in order to boost profit margins and enhance long-term organic growth trends.
The company intends to offload its loan origination software unit and its remaining legacy default management related platforms over the next 24 months. During the first nine months of 2018, these noncore software platforms generated nearly $40 million in revenue.
In addition, CoreLogic plans to accelerate its plan to transform its Appraisal Management Company operations through the greater use of data-driven analytics, workflow automation and improved utilization of its dedicated staff appraisers. The company said the plan will initially lead to lower revenue in 2019 but could improve overall profit margins and underlying organic growth trends in 2020 and beyond. Revenues of the business estimated to be impacted from this acceleration were roughly $65 million during the first nine months of 2018.
The company said these actions will help it achieve 30% adjusted EBITDA margins in 2020 and improve its long-term revenue growth rate trend. CoreLogic may incur cash and noncash charges associated with these actions, the company added.