News Press Releases

Real Matters Reports Third Quarter 2019 Financial Results

T.REAL | July 31, 2019

TORONTO

_{(all amounts are expressed in U.S. dollars, excluding per share amounts and unless otherwise stated)}

Real Matters Inc. (TSX: REAL) (“Real Matters” or “the Company”), a leading network management services platform for the mortgage and insurance industries, today announced its financial results for the third quarter of fiscal 2019.

“We posted very strong financial performance in the third quarter as we serviced record-high U.S. Appraisal transaction volumes, and our U.S. Title volumes more than doubled year-over-year,” said Real Matters Chief Executive Officer Jason Smith. “The scalability of our platform was evident in our third quarter results as revenue growth drove significant increases in Adjusted EBITDA^(A). U.S. Appraisal Adjusted EBITDA^(A) margins hit a new high of 58.3%, while our integration efforts combined with scale resulted in U.S. Title Adjusted EBITDA^(A) margins of 33.4%. We generated consolidated Adjusted EBITDA^(A) of $10.4 million – our highest quarter of profitability yet. Our strong results were driven by market share growth and new clients across both segments, and benefited from a stronger U.S. mortgage refinance market.”

Q3 2019 Key Performance Indicators	U.S. Appraisal	U.S. Title	Consolidated
Market Adjusted Growth	18.2%	118.1%	NA
Revenues	$61.1 million	$22.8 million	$91.4 million
Revenue Growth	22.0%	52.0%	24.4%
Net Revenue^(A) Growth	39.0%	53.0%	42.6%
Adjusted EBITDA^(A) Margin	58.3%	33.4%	36.1%

Q3 2019 Highlights

Went live in new channels with two Tier 1 lenders and went live with four new Top 100 lenders in U.S. Appraisal
Continued U.S. Appraisal market share gains with Tier 1 lenders
Went live with two new Top 100 lenders in U.S. Title
Purchased 1.3 million shares at a cost of $6.0 million in Q3 2019

Fiscal 2019 Year to Date Highlights

Went live with seven new Top 100 lenders in U.S. Appraisal, including the sixth Tier 1 lender, and live in new channels with four Top 100 lenders
Went live with five new Top 100 lenders in U.S. Title
Purchased 3.7 million shares at a cost of $13.7 million in the nine month period ended June 30, 2019

Financial and Operational Summary

(millions of dollars)	Three months ended June 30

	2019			Margin		2018			Margin		$ Change			% Change

Revenues
U.S. Appraisal	$	61.1				$	50.1				$	11.0		22.0	%
U.S. Title		22.8					15.0					7.8		52.0	%
Canada		7.5					8.4					(0.9	)	-10.7	%
Consolidated revenues	$	91.4				$	73.5				$	17.9		24.4	%

Net Revenue^(A)
U.S. Appraisal	$	14.6		23.9	%	$	10.5		20.9	%	$	4.1		39.0	%
U.S. Title		12.7		55.8	%		8.3		55.4	%		4.4		53.0	%
Canada		1.5		19.3	%		1.4		17.0	%		0.1		7.1	%
Consolidated Net Revenue^(A)	$	28.8		31.4	%	$	20.2		27.5	%	$	8.6		42.6	%

Adjusted EBITDA^(A)
U.S. Appraisal	$	8.5		58.3	%	$	3.9		37.0	%	$	4.6		117.9	%
U.S. Title		4.2		33.4	%		0.0		0.5	%		4.2		9900.0	%
Canada		0.9		58.6	%		0.7		48.9	%		0.2		28.6	%
Corporate		(3.2	)				(3.7	)				0.5		-13.5	%
Consolidated Adjusted EBITDA^(A)	$	10.4		36.1	%	$	0.9		4.7	%	$	9.5		1004.0	%

Net income
Net income	$	4.4				$	0.9				$	3.5
Net income per diluted share	$	0.04				$	0.01				$	0.03

Adjusted Net Income^(A)
Adjusted Net Income^(A)	$	8.6				$	2.5				$	6.1
Adjusted Net Income^(A)per diluted share	$	0.10				$	0.03				$	0.07

Market adjusted growth
U.S. Appraisal		18.2	%
U.S. Title		118.1	%

Financial and Operational Summary (continued)

(millions of dollars)	Nine months ended June 30

	2019			Margin		2018		Margin		$ Change			% Change

Revenues
U.S. Appraisal	$	143.8				$ 140.2				$	3.6		2.6	%
U.S. Title		52.5				50.7					1.8		3.6	%
Canada		18.9				22.6					(3.7	)	-16.4	%
Consolidated revenues	$	215.2				$ 213.5				$	1.7		0.8	%

Net Revenue^(A)
U.S. Appraisal	$	34.3		23.8	%	$ 28.8		20.6	%	$	5.5		19.1	%
U.S. Title		29.8		56.8	%	30.3		59.7	%		(0.5	)	-1.7	%
Canada		3.6		19.2	%	4.1		17.9	%		(0.5	)	-12.2	%
Consolidated Net Revenue^(A)	$	67.7		31.4	%	$ 63.2		29.6	%	$	4.5		7.1	%

Adjusted EBITDA^(A)
U.S. Appraisal	$	16.7		48.8	%	$ 8.6		29.8	%	$	8.1		94.2	%
U.S. Title		6.1		20.3	%	4.3		14.2	%		1.8		41.9	%
Canada		1.7		48.5	%	2.0		49.0	%		(0.3	)	-15.0	%
Corporate		(9.6	)			(11.2	)				1.6		-14.3	%
Consolidated Adjusted EBITDA^(A)	$	14.9		22.0	%	$ 3.7		5.8	%	$	11.2		302.7	%

Net income
Net income (loss)	$	2.1				$ (1.5	)			$	3.6
Net income (loss) per diluted share	$	0.01				$ (0.02	)			$	0.03

Adjusted Net Income^(A)
Adjusted Net Income^(A)	$	11.4				$ 5.2				$	6.2
Adjusted Net Income^(A)per diluted share	$	0.13				$ 0.06				$	0.07

Market adjusted growth
U.S. Appraisal		16.6	%
U.S. Title		30.3	%

Conference Call and Webcast
A conference call to review the results will take place at 10:00 a.m. (ET) on Wednesday, July 31, 2019, hosted by Chief Executive Officer Jason Smith and Chief Financial Officer Bill Herman. An accompanying slide presentation will be posted to the Investor Relations section of our website shortly before the call.

To access the call:

Participant Toll Free Dial-In Number: (833) 247-5856
Participant International Dial-In Number: (647) 689-4232
Conference ID: 1194949

To listen to the live webcast of the call:

Go to: https://event.on24.com/wcc/r/2020805/332151DB4961A4F507838D86BB88325F

The webcast will be archived and a transcript of the call will be available in the Investor Relations section of our website following the call.

_{(A) Non-GAAP Measures}_{The non-GAAP measures used in this Press Release, including Net Revenue, Adjusted EBITDA and Adjusted Net Income or Loss do not have a standardized meaning prescribed by International Financial Reporting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-GAAP measures are more fully defined and discussed in the Company’s MD&A for the three and nine months ended June 30, 2019, available on SEDAR at www.sedar.com.}

_{Full reports for Real Matters financial results for the three and nine months ended June 30, 2019 are outlined in the unaudited condensed consolidated financial statements and the related MD&A of the Company, which are available on SEDAR at www.sedar.com. In addition, supplemental information is available on our website at www.realmatters.com.}

_{Forward-Looking Information}_{This Press Release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Words such as “could”, “forecast”, “target”, “may”, “will”, “would”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “seek”, “believe”, “likely” and “predict” and variations of such words and similar expressions are intended to identify such forward-looking information, although not all forward-looking information contains these identifying words.}

_{The forward-looking information in this Press Release includes statements which reflect the current expectations of management with respect to our business and the industry in which we operate and is based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes appropriate and reasonable in the circumstances. The forward-looking information reflects management’s beliefs based on information currently available to management, including information obtained from third party sources, and should not be read as a guarantee of the occurrence or timing of any future events, performance or results.}

_{The forward-looking information in this Press Release is subject to risks, uncertainties and other factors that are difficult to predict and that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. A comprehensive discussion of the factors which could cause results or events to differ from current expectations can be found in the “Risk Factors” section of our Annual Information Form for the year ended September 30, 2018 and under the heading “Important Factors Affecting Results from Operations” in our MD&A for the three and nine months ended June 30, 2019, each of which is available on SEDAR at www.sedar.com.}

_{Readers are cautioned not to place undue reliance on the forward-looking information, which reflect our expectations only as of the date of this Press Release. Except as required by law, we do not undertake to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.}

About Real Matters
Real Matters is a leading network management services provider for the mortgage lending and insurance industries. Real Matters’ platform combines its proprietary technology and network management capabilities with tens of thousands of independent qualified field professionals to create an efficient marketplace for the provision of mortgage lending and insurance industry services. Our clients include approximately 60 of the top 100 mortgage lenders in the U.S. and some of the largest insurance companies in North America. We are a leading independent provider of residential real estate appraisals to the mortgage market and a leading independent provider of title and mortgage closing services in the U.S. Established in 2004, Real Matters has offices in Buffalo (NY), Denver (CO), Middletown (RI), and Markham (ON). Real Matters is listed on the Toronto Stock Exchange under the symbol REAL. For more information, visit www.realmatters.com.