On February 17, Doma Holdings Inc. (DOMA) declared its financial results for Q4 2021 along with guidance for 2022. Consequently, the stock fell further deep in the after-hours session.
In the regular trading session, the stock varied between $3.43 and $3.31 at a volume of 1.1 million shares. DOMA closed the session with a mild loss of 0.30% at $3.37 per share value. Following the announcement, the stock suffered a huge loss of 22.26% in the after-hours. Thus, DOMA stock declines by $0.75 to reach $2.62 in the after-hours on Thursday.
Currently, Doma Holdings Inc. has a market capitalization of $1.09 billion with 322.57 million shares outstanding. DOMA stock has declined by 33.66% year to date while it suffered a loss of 67.78% last year.
DOMA’s Q4 Results
In the fourth quarter of 2021, the company has revenues of $138 million, marking an increase of 17% YOY.
Moreover, the retained premiums and fees grew by 24% YOY to $66 million in the quarter.
Adjusted profit suffered a decline of 9% YOY to $24 million in Q4 2021.
DOMA had a net loss of $43.7 million in Q4 2021 against $8.5 million in the year-ago period.
Additionally, the closed orders grew by 35% YOY and open orders by 21% YOY.
Fiscal 2022 Guidance
For fiscal 2022, the company expects GAAP gross profit of $118 to $136 million.
Furthermore, the expected retained premiums and fees are $300 to $320 million and adjusted EBITDA $(90) to $(70) million.
In addition, DOMA expects that it will attain a positive adjusted EBITDA in 2023.
DOMA’s Customer AdvantageFirst Updates
On January 05, the company provided updates regarding its customer, AdvantageFirst. The company’s technology-driven title solutions of its Doma Intelligence platform are driving significant growth and business results for AdvantageFirst. DOMA’s solutions have exponentially accelerated AdvantageFirst’s processing times. AdvantageFirst now processes its refinance title orders under minutes against days. According to AdvantageFirst’s executive VP of operations, Jeff Ravenstine, the company is now closing loans up to 30 days faster.
In addition to the completion of transactions in very little time, DOMA’s technology is helping AdvantageFirst’s borrowers to save up to $600 per refinancing transaction.
Conclusion
On Thursday, the company reported mixed earnings with good growth in certain items and a decline in others. It seems the wider loss and gross profit decline really put the investors off. Therefore, the stock suffered a huge loss in the after-hours session.
