@Mabiverse123 Anything below a 25% APR is bullish for CK HELOC powered by https://t.co/h6zn9wCPwa imo
$INTU should mine their data and save Americans money!
🚨 HUGE win for $BETR .... potentially $340,000,000 in annual revenues? 🧐 Also big for $INTU and more importantly its users. 🚨
CK has approximately 140M members. We know this.
Other rough estimates:
~45–55M have a mortgage
~40–50M likely have meaningful home equity
~35–40M carry revolving credit card debt
If Credit Karma has approximately 45M members with meaningful home equity, and ONLY 0.25% convert annuallyinto a Better HELOC, that would equal:
~112,500 HELOCs
~$100,000 average HELOC size
~$11.25B in annual originated HELOC volume—high-fee volume that is far less reliant on favorable mortgage rates.
At approximately 3% in Success/GOS/Tinman fees, that would represent roughly $340M in annual revenue.
And this is from ONE new partner. It doesn’t include other large HELOC partners already ramping or reportedly in testing......FOA, CrossCountry, BMO, etc.
This is high-margin Tinman revenue from ONE* distribution funnel that did not exist yesterday.
Mgmt has said that HELOC fees are approximately 2.5x refinance fees. In a high rate environment that can make $betr more durable company and continue growing at 80% y/y.
Also, a reminder: the fuel is there—2.4M+ shares short and approximately 15 days to cover, last I checked……
Let's F*cking Go @vishal_better
James you have thoughtful stuff - thanks for commenting. I think they're pretty close to cashflow neutral at current. They just had 3+ rounds of layoffs and loan volumes are still increasing q/q. Obvi there will be some one-time expenses for restructuring... I think (and hope lol) burn is drwindling