CLGX
#It's a higher COGS business model, so more variable type of cost model.
So in terms of how we measure, consistent with what we've said in the past, our metric is ex market largely.
There's some ---+ there's a few other items like FX, which is not that big this year over the course of 2017.
It's ex wind downs, product sunsets, which again is not as big a number.
So it's largely ex market and obviously less acquisitions to get to the 3%.
In fact, it's a little over 3%.
In terms of the growth going forward, I think early ---+ if you were to look back a year or 2 ago, it was mostly share.
And we've made a big push to get more systematic on how we approach price and emphasis on innovation and new products.
So those are becoming bigger drivers going forward.
So we think those ---+ having all 3 levers at our disposal will help us grow ---+ increase the growth rate in the future.
Well, no.
I think, as we said, '18 is ---+ '18, we're getting our stuff together and moving on.
I think '19 ---+ as we get into '19 and through '19, you're going to see a benefit.
And then ---+ because we're not going to pop up from a low margin to kind of a 30% overnight either.
So as we get through the first part of '19, I think you'll see the margins accelerating.
And I think you'll see the very clear path toward the 30%.
I think you'll see ---+ I think, from an organic perspective, you'll see the same pattern in '18 that we saw in '17.
All things that Jim talked about there, I think will continue.
I think that the high-level story is, I think, continued pricing, share gains and penetration by the core mortgage operations and I think solid growth by the nonmortgage piece of the company.
I think those will be the same thematic points in '18.
Great.
And then the drivers of the guidance range, I think the range is a little bit wider than we've had historically.
Just wondering, is that primarily on the volume ---+ origination volume.
Or any other factors to call out.
Are you referring to the adjusted EBITDA range.
Yes.
Yes.
We've typically been in that $20 million to $30 million range.
So this year isn't anything unusual.
And the drivers of kind of the low to the high end, is it the volume.
Or are there other factors.
No.
It's ---+ no.
I mean, there's nothing unusual there.
It's a typical range that we put together.
The big thing, as you know, is the 10% downmarket.
So there's not much more to it than that.
On the segment reporting, I just want to make sure I get the moving parts here.
<UNK>, are you guys still feeling good about the rule of thumb that kind of $20 million to $25 million of revs on every $100 billion origination swings.
Is that still accurate.
Yes.
That's still correct.
And that would be ex the valuation businesses.
Okay.
So it sounds like UWS ---+ I mean, obviously, now you have all the mortgage exposure there.
So I guess on the base level, if the origination forecast holds about 2% decline of revenue and then you've got the incremental, I guess, diversification, is that right.
Can you help maybe size that up a little bit.
I'm sorry, can you repeat that.
So about a 2% decline in UWS rev.
That's where it looks like it will be jumping off.
If the origination forecast holds, but then you guys talked about the, I guess, continued diversification efforts.
Just trying to get an idea, is that kind of a good base level.
And then kind of what we should grow ---+ how much faster we should decline that based on diversification.
Yes.
There's no real change in the sensitivity due to the market.
So I don't think there's anything unusual.
We've already kind of talked about the valuation piece.
So there's not much there.
Yes.
I think, <UNK>, the sensitivities Jim mentioned, that's kind of the, obviously, the nonappraisal portion.
The reason why we don't include that, obviously, is because you got ---+ you don't have a market exposure.
You have a client-specific exposure.
And so that's why we kind of do it that way.
But I don't think there's anything unusual.
As Jim said in the UWS, I think they ---+ that we expect to continue to outperform the mortgage market volumes.
So it's [down] percent, 10%, we tend to ---+ expect to do significantly better than that.
We don't obviously guide by segment-specific level, but I think all of our exposure is in that segment for the most part and I think that will give you better visibility to our performance there.
Okay.
That's helpful, <UNK>.
And then on the [margin-side] segment, I mean, obviously you guys don't guide to segment margins.
But if we look at UWS, it seems like that's probably got the biggest leverage point in getting to the 30% kind of total company margin.
Is there a kind of broad range we should think about by 2020.
Like ---+ how much could you guys expand that margin from here.
Yes.
I think it's hard to say.
But you're exactly right.
<UNK>.
I think that ---+ and as I said in my prepared remarks, we're excited because as the purchase market goes and as the predictability of the volumes go, I think that, that's good for us and we are poised operating leverage-wise to pop the margins up.
So I think that's a very good long-term value driver for this company.
It's cash generative.
It's high margin.
We got ---+ and as we automate further, it should be even better operating leverage as we get into '19 and '20.
So you're exactly right on that point.
And as <UNK> said earlier, we expect both segments to be above the 30% target by 2020.
