The title technology provider is expected to complete its $85 million merger with Dallas, Texas, title insurance underwriter Title Resources Group later this year.
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In the company’s final earnings report as a public company, equity technology provider Doma said double-digit revenue growth helped it cut its adjusted loss in half in the second quarter.
Doma’s operating loss from continuing operations fell 16% to $11 million as revenue rose 18% from the first quarter to $78 million and expenses rose 12% to $88.7 million.
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Doma’s adjusted loss, based on earnings before interest, taxes, depreciation, and amortization (EBITDA), totaled $3 million, down 50% from $6 million in the first quarter.
Max Simkov
“We are pleased with the continued progress our team is making toward achieving our strategic goals,” Doma CEO Max Simkoff said in a statement.
Doma announced in March that it had reached an agreement with Title Resources Group (TRG), a title insurance underwriter based in Dallas, Texas, to merge in an $83 million deal to take it private. Doma did not hold an earnings call or provide forward guidance as the TRG deal is expected to close this year.
Founded in 2016, Doma is committed to using the machine learning platform Doma to automate the title and escrow processes and revolutionize the title insurance industry.
Doma initially focused on supporting mortgage refinances, but as mortgage rates began to climb in 2022, much of that business disappeared.
Doma, which raised less than expected when it went public in 2021 in a merger with a special purpose acquisition company (SPAC), has racked up losses of $660 million as of June 30 as it adjusts its technology to enable title insurance “Instant Underwriting” is used to purchase loans.
Source: Doma earnings reports.
Doma ended the quarter with $73.1 million in cash and cash equivalents and restricted cash; $7.4 million in held-to-maturity debt securities; and $41.7 million in available-for-sale debt securities.
On a generally accepted accounting principles (GAAP) basis, including interest on the company’s debt, Doma’s net loss for the second quarter of 2024 was $20.4 million, down from $20.6 million in the first quarter and $35.9 million in the second quarter of 2023.
Doma, which laid off more than 1,000 employees in 2022, employed 239 people at the end of last year, or about 12% of its previous workforce, after selling its retail title agency and operations centers and exiting the business.
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