Black Knight, Inc.

First-quarter GAAP revenue was $387 million, up 11% year over year. Operating income was $80 million, up 18%; operating margin was 20.7% versus 19.4%. Net earnings attributable to Black Knight were $365 million versus $54 million, and diluted EPS was $2.35 versus $0.35. On an adjusted basis, organic revenue growth was 9%; adjusted EBITDA was $190.5 million, up 9.5%, with margin of 49.2% versus 49.8%; adjusted EPS was $0.63, up 12.5%. Software Solutions revenue rose 12% to $331 million and Data and Analytics revenue rose 5% to $56.5 million. For the full year, no guidance was provided because management said it would no longer be providing guidance for 2022 due to the proposed transaction.

Anthony Jabbour framed the quarter as evidence that Black Knight’s strategy of innovating, integrating and operating with urgency is working. He emphasized strong client demand, citing new client wins and product adoption across originations and servicing, and said lenders are focused on cost reduction and operational efficiency as rates rise. He also described the ICE deal as a validation of Black Knight’s value and said the combination should help transform the mortgage process for clients and consumers.

Kirk Larsen focused on the quarter’s financial performance and the mix of results. He said organic revenue growth was 9%, but noted a $7 million headwind from lower origination volumes, partly offset by an $8 million tailwind from higher foreclosure-related revenues. He also cited GAAP results boosted by a $305 million after-tax gain from the Dun & Bradstreet stock exchange related to Optimal Blue and a $14 million discrete tax benefit. On the balance sheet, he reported $28 million of cash and cash equivalents, about $2.7 billion of total debt principal, $399 million of revolver capacity and a 3.7x net leverage ratio.

There was no analyst Q&A section in the transcript. The only notable back-and-forth was management’s explanation that 2022 guidance was being withdrawn because of the proposed ICE acquisition. Management also reiterated that the company will stay focused on execution and avoid distractions while transaction approvals are pursued.