Blend Labs, Inc. (NYSE:BLND) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET Company Participants Winnie Ling – Head-Legal and People Nima Ghamsari – Co-Founder and Head-Blend Amir Jafari – Head-Finance and Administration Bryan Michaleski – Investor Relations Lead Conference Call Participants Dylan Becker – William Blair David Unger – Wells Fargo Ryan Tomasello – KBW Joseph Vafi – Canaccord Genuity Seth Gilbert – UBS Winnie Ling Good afternoon, and welcome to Blend’s First Quarter 2024 Earnings Conf ...

For the quarter ended March 2024, Blend Labs (BLND) reported revenue of $34.95 million, down 6.4% over the same period last year. EPS came in at -$0.06, compared to -$0.15 in the year-ago quarter.The reported revenue represents a surprise of +2.97% over the Zacks Consensus Estimate of $33.94 million. With the consensus EPS estimate being -$0.08, the EPS surprise was +25.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Blend Labs (BLND) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this cloud-based platform for financial companies would post a loss of $0.08 per share when it actually produced a loss of $0.07, delivering a surprise of 12.50%.Over the last four quart ...

| --- | --- | --- | |--------------------------------------------------------------------------------------------------------------|---------------|-------------------| | | June 30, 2024 | December 31, 2024 | | Estimated weighted average shares used in calculating net loss per share (basic and diluted) 253,104 254,179 | | | | | | | | Estimated outstanding common shares as of period-end 254,204 258,539 | | | Footnotes Note 2: Consumer Banking Suite Revenues consist of home equity, personal lending, credit ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40599 BLEND LABS, INC. (Exact name of registrant as specified in its charter) Delaware 45-5211045 (State or other jurisdiction of in ...

All of these things together have set us up for success in the future, in particular our continued expansion as well as our profitability goals," said Nima Ghamsari, Head of Blend. | --- | --- | |-----------------------------------------------|----------------------| | | | | Blend Platform Segment Revenue | $27.0 – $30.0 | | Title Revenue | $10.5 – $11.5 | | Blend Labs, Inc. Consolidated Revenue | $37.5 – $41.5 | | | | | Non-GAAP Net Operating Loss | ($10.5) – ($7.5) | Compensation realignment costs. We exc ...

Wall Street analysts expect Blend Labs (BLND) to post quarterly loss of $0.08 per share in its upcoming report, which indicates a year-over-year increase of 46.7%. Revenues are expected to be $33.94 million, down 9.1% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Prior to a company's earnings ann ...

Financial Data and Key Metrics - Total company revenues in Q4 2023 were $36.1 million, in line with guidance [40] - Platform revenue was $25.9 million, also within guidance [40] - Non-GAAP gross profit was $19.9 million, up 33% YoY despite a 16% decline in total revenue [20] - Non-GAAP operating costs for Q4 totaled $33 million, down from $58.1 million in the previous year [21] - Non-GAAP loss from operations was $13.1 million, ahead of guidance [70] - Cash, cash equivalents, and marketable securities stood at $144 million at the end of Q4 [46] Business Line Data and Key Metrics - Consumer Banking suite revenue totaled $6.4 million in Q4, up 15% YoY [67] - Mortgage Suite revenue declined by 3% YoY to $17.2 million, despite a 20%-25% decline in origination volumes [19] - Economic value per funded loan in the Mortgage Suite rose by $10 YoY to $91 [19] - Non-GAAP software gross margins reached 79%, up from 72% YoY [68] - Title revenue was $10.2 million, near the high end of guidance [41] Market Data and Key Metrics - The mortgage industry origination volume in Q4 was estimated at $300 billion to $330 billion, below the MBA's forecast of $380 billion [31] - Q1 2024 mortgage volume is expected to be consistent or slightly below Q4 2023, with approximately 800,000 to 875,000 total originations [47] - The company has a pipeline of 70 opportunities in Consumer Banking alone, just two months into 2024 [9] Company Strategy and Industry Competition - The company is focusing on expanding its Consumer Banking suite, with a $50 million annual revenue run rate expected once fully rolled out [8][25] - The company is investing in digital closings and next-generation refinance flows to prepare for future market recovery [62][87] - The company is managing its business to achieve non-GAAP profitability by the end of 2024, regardless of macroeconomic conditions [38][44] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenging mortgage market, citing strong customer adoption of value-accretive products [5][14] - The company expects Q1 2024 Platform revenue to be between $22 million and $24 million, with total company revenue expected to be between $32.5 million and $35.5 million [73] - Management remains confident in the long-term targets shared at Investor Day, despite lower mortgage volumes [48] Other Important Information - The company prepaid $85 million of its term loan balance in Q4, extending the maturity date to 2027 [45] - The company signed two multiyear eight-figure deals in Q4, expanding relationships with large customers [27] - The company has a remaining performance obligation (RPO) of $94.9 million, up $35 million from Q3 [71] Q&A Session Summary Question: How is Blend positioned relative to its 2026 forecast given the challenging macro environment? - The company remains confident in its 2026 targets, with customers gaining market share and adopting digital closings to improve revenue per funded loan [77][78][79] Question: What are the near-term opportunities to grow revenue per funded loan in the mortgage business? - The company sees near-term upside in digital closings and remote online notarization, with one of its largest customers rolling out e-closings across their entire loan portfolio [80][81] Question: Can you provide more color on the strong growth in remaining performance obligations (RPO)? - The RPO growth reflects new customer signings and renewals, with platform fees and unit economics contributing to the increase [82] Question: How is Blend winning new clients in the competitive consumer banking sector? - The company is winning deals by offering fraud verification, funding options, and cross-selling capabilities that turn deposit relationships into deeper customer relationships [84][85] Question: What is the outlook for the Builder platform and its partner ecosystem? - The Builder platform is being hardened with existing customers, and the company is exploring opportunities to expand its partner ecosystem [88][89] Question: Can the company reach a $50 million annual revenue run rate in Consumer Banking in 2024? - The company expects to reach the $50 million run rate as existing signed customers roll out products, though some rollouts may extend into 2025 [91][92] Question: Are there opportunities to reduce OpEx further and achieve profitability sooner? - The company is focused on operational excellence and process improvements to manage OpEx, with profitability potentially accelerating if the macro environment improves [93][94] Question: What is the current churn rate in the mortgage business, and how is the competitive landscape evolving? - The company has maintained steady market share despite some churn, with win rates remaining stable in the top 50-100 financial institutions [97][98][99] Question: How is the company managing dilution from stock compensation? - The company is focused on managing dilution while incentivizing top talent, with a priority on maintaining low dilution levels [100][101]

SAN FRANCISCO--(BUSINESS WIRE)--Blend Labs, Inc. (NYSE:BLND), a leader in cloud banking software, today announced its fourth quarter and full year 2023 financial results. “ Despite a challenging market environment, Blend has achieved substantial progress on our three strategic priorities over the course of 2023,” said Nima Ghamsari, Head of Blend. “ First, we’ve expanded our consumer banking footprint by achieving double digit year-on-year revenue growth in every quarter. Second, we continued to deepen our ...

SAN FRANCISCO--(BUSINESS WIRE)--Blend Labs, Inc. (NYSE: BLND), a leader in cloud banking software, today announced that the Company will host a conference call on Thursday, March 14, 2024, at 4:30 pm ET to discuss its fourth quarter and full year 2023 financial results. A press release, with accompanying financial information, will be posted prior to the discussion on the Company’s investor website at https://investor.blend.com. A link to the live discussion will be made available on the Company's investor ...