Radian Group Inc. (NYSE:RDN) Q1 2024 Earnings Call Transcript

Richard Thornberry: Yes. Look, I think, again, I would just say, and Sumita feel free to add to this. I would say at this point, we are not going to give any kind of forward guidance relative to these businesses. I do think at the end of the second quarter, and I know you all will hold us to this, which I appreciate is we will give some more insight into some of the changes that we are making across those businesses. I would say that we are during the second quarter – I would say, as we think about these businesses going forward, our objective is continue to improve the trajectory of those businesses from a growth and contribution point of view and some of the changes that we are making here in the second quarter. Along with all the changes that we have made through the cycle to kind of rebalance to the opportunity. I think we will have more of an opportunity to update in the second quarter and be a little bit more precise.

Sumita Pandit: Yes. And I think as you saw our operating expenses in the first quarter, they came down by about 13% on a quarter-over-quarter basis. And last year, if you remember, we had taken out about $77 million of expenses between cost of services and other operating expenses. I think at this point, we have not given, again, a specific guidance on further expense reductions. I think the 2023 numbers — I think if you look at our current expense base that is what I would use from a modeling perspective. But as Rick mentioned, as we take more actions and have anything specific to report on, we would give you more guidance on that specific metric.

Soham Bhonsle: Sorry, Sumita, is that comment in regards to the cost of services cost or the OpEx overall, the 82.6 [indiscernible]?

Sumita Pandit: I think it is overall, yes. So when I look at the guidance we have given you last year, we had said that we will take out about $60 million to $80 million out and that was overall, both on OpEx as well as cost of services. And we took out $77 million, so pretty much at the high end of that range. I would say it is, overall, I think you look at it on a combined basis. And I think we will continue to give you more disclosure on that as we go forward.

Operator: I’m showing no further questions at this time. I would like to turn it back to Rick Thornberry for closing remarks.

A – Richard Thornberry: Well, thank you for joining us today for the call. And hopefully, we were able to answer the questions that were most important to you, and we appreciate your interest in Radian. We look forward to talking to many of you all in the coming days, weeks, months, and we will be back together here after our second quarter is completed. But thank you again for joining us today, and have a great day. Appreciate it.

Operator: This concludes today’s conference call. Thank you for participating, and you may now disconnect.