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The second quarter of 2022 was a busy one for Black Knight, which saw a dramatic decrease in quarterly earnings while preparing to be acquired by Intercontinental Exchange Inc. (ICE).
The provider of software, data, and analytics solutions to the mortgage and real estate industries, reported net income attributable to Black Knight of $40.3 million, or 26 cents per diluted share, down 88% from net income of $364.6 million, or $2.35 per diluted share, in the first quarter. The second-quarter results were up 1.5% from the second quarter of 2021.
The results were below the consensus of analysts surveyed by Zacks Investment Research, which had predicted quarterly earnings of 60 cents per diluted share.
Revenues totaled $394.5 million in the second quarter, up 1.9% from the first quarter and up 9.2% from the same quarter last year.
Expenses in the quarter totaled $317.5 million, up 3.4% from the previous quarter and up 8.9% from the first quarter of last year.
Black Knight’s software solutions segment reported revenues of $339.4 million, an increase of 11% year over year. Operating income for the segment was $154.8 million, up 9% from the same quarter last year.
The data and analytics segment reported revenues of $55.1 million, down 1% year over year, with operating income of $13.7 million, a 20% year-over-year decline.
"Our core performance in the second quarter was consistent with our expectations,” Black Knight Executive Chairman Anthony Jabbour said in a new release, “and highlights the ongoing strength and resilience of our business as we continued to expand and extend our relationships with existing clients …, win new clients, and deliver innovative new solutions. Our performance further demonstrates our ability to deliver results despite an uncertain economic environment."
In May, ICE, a global provider of data, technology, and market infrastructure, announced it had entered into a definitive agreement to acquire Black Knight. The cash and stock transaction values Black Knight at $85 per share, or a market value of $13.1 billion. The valuation at $85 per share was slightly above the then-52-week high of $84.27 for Black Knight's stock.
Black Knight said Thursday the acquisition continues to move forward, noting that during the quarter ICE filed required documents with the SEC to register the shares of its common stock that will be issued in the transaction. The company urged its investors to read that and other documents related to the acquisition.
Black Knight added that, because of the proposed transaction, it has suspended the practice of providing forward-looking guidance, and would not be host conference call related to its second-quarter 2022 earnings release.