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 ...

The aggregate market value of the common stock held by non-affiliates of the registrant, based on the closing price of the shares of Class A common stock as reported by the New York Stock Exchange on June 30, 2023, the last business day of the registrant's most recently completed second fiscal quarter, was approximately $189.5 million. Shares of the registrant's common stock held by each executive officer and director and by each other person who may be deemed to be an affiliate of the registrant have been ...

Blend Announces Fourth Quarter and Full Year 2023 Financial Results Meets Fourth Quarter 2023 Revenue Guidance and Delivers Strong Operating Loss Improvement in Every Quarter in 2023 March 14, 2024 SAN FRANCISCO -- 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 Ghams ...

courtneyk I took my first look at the banking software provider Blend Labs back in July 2023, viewing it then as having a lot to prove in terms of growth in a challenging environment for its core software product, which helps banks originate mortgages more efficiently. Turns out I missed a great opportunity to buy in, as shares have doubled since then, making it worth a second look in my view. Ultimately, I still believe it is a hold on a fundamental basis due to needing to hit high-growth benchmarks wh ...

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Blend Labs, Inc. (NYSE:BLND) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET Amir Jafari - Head, Finance & Administration Dylan Becker - William Blair Joining us today are Nima Ghamsari, Co-Founder and Head of Blend; and Amir Jafari our Head of Finance and Administration. After Nima and Amir deliver their prepared remarks, we will open up the call for questions moderated by our Investor Relations, Lead, Bryan Michaleski. Nima Ghamsari In fact as of Q3, over one-third of our customers are now li ...