1 Blend Labs, Inc. Q3 2022 Earnings Supplemental Slides November 10, 2022 Forward-Looking Statements and Non-GAAP Financial Measures 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Blend's future financial or operating performance. I ...

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 September 30, 2022 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 o ...

Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $65.5 million, reflecting a 5% year-over-year growth in Blend Platform revenue despite a 37% decline in mortgage market volume [7][26] - Non-GAAP gross profit for Q2 was approximately $25.8 million, up from $19.9 million in the prior year [28] - Non-GAAP loss from operations was $39.5 million compared to $26.3 million in the prior year, with a significant noncash impairment charge of approximately $392 million recognized for Title365 [30][31] Business Line Data and Key Metrics Changes - Blend Platform segment revenue was $33.6 million, up about 5% year-on-year [26] - Consumer Banking and Marketplace segment revenue grew by 53% year-over-year to $8.5 million, with total consumer banking transactions increasing by approximately 138,000 to about 215,000 in Q2 [27][19] - Title365 segment revenue was $31.9 million, with a noted decline in legacy title business [26] Market Data and Key Metrics Changes - The mortgage industry volumes have significantly decreased, impacting overall market conditions, but Blend's performance has outpaced these declines [20][66] - The company reported a gross revenue retention rate of 99% and a market-adjusted net revenue retention rate of 164%, up from 159% in the previous quarter [16] Company Strategy and Development Direction - The company is realigning its cost structure to achieve positive free cash flow and reduce non-GAAP net operating loss by 50% by the end of 2023 [11][42] - Key initiatives include workforce reductions, offshoring operations to India, and prioritizing products that deliver high ROI [12][13][14] - The company aims to strengthen its position as a category creator in the digital banking space, focusing on innovation through software solutions [22][23] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about executing their strategy despite challenging market conditions, emphasizing the importance of cost management and revenue diversification [22][44] - The company is preparing for a prolonged market reset, operating under the assumption that mortgage industry unit volumes will remain low through 2025 [11][36] - Management highlighted that they are not seeing significant changes in the competitive landscape and continue to focus on gaining market share [80][82] Other Important Information - The company has $450 million in cash, cash equivalents, and marketable securities, providing ample liquidity for ongoing operations [31] - The guidance for 2022 has been adjusted, with a decrease in Blend Platform revenue outlook by $5 million and an increase in Title365 revenue guidance by the same amount [42][43] Q&A Session Summary Question: Update on Blend Title transition - The transition to Blend Title is progressing well, with outperformance noted in Title365 due to countercyclical offsets [46] Question: Demand environment for new logos - Demand remains strong for mortgage solutions, with a focus on efficiency during market margin compression [48][49] Question: Consolidated top line revenue growth target - Specific revenue guidance was not provided, but growth metrics are moving in the right direction [51][52] Question: Multiyear conditions for the mortgage industry - The company is taking a prudent approach to future mortgage volumes, focusing on market share growth [54][56] Question: Mortgage transactions in Q2 - Mortgage banking transactions were reported at 348,000 for Q2, down from 376,000 in Q1 [59][61] Question: Sales environment in the downturn - The company is viewed as an essential solution, with customers continuing to invest in their offerings [83][84]

1 Blend Labs, Inc. Q2 2022 Earnings Supplemental Slides August 15, 2022 Forward-Looking Statements and Non-GAAP Financial Measures 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Blend's future financial or operating performance. In ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Q2 2022, detailing a significant net loss primarily due to a large impairment charge, despite substantial revenue growth driven by an acquisition [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets significantly decreased to **$599.3 million** as of June 30, 2022, primarily due to impairment charges on goodwill and intangible assets, while cash and marketable securities totaled **$450.5 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $132,683 | $213,082 | | Marketable securities | $317,812 | $334,147 | | Intangible assets, net | $13,136 | $173,008 | | Goodwill | $47,132 | $287,228 | | **Total assets** | **$599,324** | **$1,112,486** | | **Liabilities & Equity** | | | | Total liabilities | $281,882 | $301,895 | | Total stockholders' equity | $279,188 | $774,642 | | **Total liabilities and stockholders' equity** | **$599,324** | **$1,112,486** | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For Q2 2022, revenue increased **104%** to **$65.5 million**, but a **$391.8 million impairment charge** resulted in a **$477.2 million net loss** Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Revenue | $65,539 | $32,062 | | Gross profit | $25,265 | $19,702 | | Impairment of intangible assets and goodwill | $391,823 | $0 | | Loss from operations | ($471,416) | ($39,634) | | Net (loss) income | ($477,202) | $5,766 | | Net loss per share, basic and diluted | ($2.06) | $0.00 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash used in operating activities increased to **$92.6 million**, leading to an **$80.4 million decrease** in total cash and equivalents Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($92,600) | ($53,101) | | Net cash provided by investing activities | $10,857 | $39,289 | | Net cash provided by financing activities | $1,239 | $342,607 | | Net (decrease) increase in cash | ($80,399) | $328,795 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including a **$391.8 million impairment charge** from the Title365 acquisition, workforce reductions, and disaggregated revenue trends - Due to declining economic conditions and market capitalization, the company performed an interim impairment analysis as of June 30, 2022, resulting in a **$151.7 million impairment** of customer relationships and a **$240.1 million impairment** of goodwill for the Title365 reporting unit[96](index=96&type=chunk)[100](index=100&type=chunk)[104](index=104&type=chunk) Disaggregated Revenue by Service Offering (in thousands) | Service Offering | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Blend Platform Revenue** | | | | Mortgage Banking | $23,891 | $25,390 | | Consumer Banking and Marketplace | $8,512 | $5,569 | | Professional Services | $1,198 | $1,103 | | **Total Blend Platform** | **$33,601** | **$32,062** | | **Title365 Revenue** | **$31,938** | **$0** | | **Total Revenue** | **$65,539** | **$32,062** | - The company initiated a workforce reduction plan in April 2022, eliminating approximately **200 positions** for a charge of about **$6.4 million**. A subsequent plan in August 2022 will eliminate another **220 positions** for an estimated charge of **$4.0 million**[189](index=189&type=chunk)[213](index=213&type=chunk) - For the six months ended June 30, 2022, one customer (Customer B) accounted for **33% of total revenue**. This same customer accounted for **22% of trade and unbilled receivables** as of June 30, 2022[61](index=61&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting the impact of macroeconomic headwinds on the mortgage industry, a significant impairment charge, and cost efficiency measures, while maintaining strong liquidity - Management notes a decline in the mortgage origination outlook due to rising interest rates and inflation. Mortgage transactions on the platform decreased **25% YoY** in Q2 2022, while overall industry originations fell **37%**[225](index=225&type=chunk)[226](index=226&type=chunk) - A **$391.8 million impairment charge** (**$240.1 million for goodwill**, **$151.7 million for customer relationships**) was recorded for the Title365 reporting unit due to declining market conditions and operating results[231](index=231&type=chunk)[234](index=234&type=chunk) - An April 2022 workforce reduction plan eliminated approximately **200 positions** with approximately **$6.4 million charge**. An August 2022 plan will eliminate approximately **220 more positions** with an estimated approximately **$4.0 million charge**[228](index=228&type=chunk)[229](index=229&type=chunk) - As of June 30, 2022, principal sources of liquidity were **$450.5 million** in cash, cash equivalents, and marketable securities, plus a **$25.0 million** undrawn revolving credit facility[293](index=293&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Total revenue increased **104%** to **$65.5 million** in Q2 2022, primarily due to the Title365 segment, but operating expenses surged to **$496.7 million** due to a significant impairment charge, resulting in a **$477.2 million net loss** Revenue and Gross Profit by Segment - Q2 2022 vs Q2 2021 (in thousands) | Segment | Q2 2022 Revenue | Q2 2021 Revenue | Q2 2022 Gross Profit | Q2 2021 Gross Profit | | :--- | :--- | :--- | :--- | :--- | | Blend Platform | $33,601 | $32,062 | $20,373 | $19,702 | | Title365 | $31,938 | N/A | $4,892 | N/A | | **Total** | **$65,539** | **$32,062** | **$25,265** | **$19,702** | Operating Expenses - Q2 2022 vs Q2 2021 (in thousands) | Expense Category | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Research and development | $35,500 | $20,884 | 70% | | Sales and marketing | $22,438 | $18,271 | 23% | | General and administrative | $36,472 | $20,181 | 81% | | Impairment of intangible assets and goodwill | $391,823 | $0 | N/A | | Restructuring | $6,380 | $0 | N/A | | **Total operating expenses** | **$496,681** | **$59,336** | **737%** | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$450.5 million** in cash and marketable securities and an undrawn **$25.0 million** revolving credit facility, deemed sufficient for the next 12 months - Principal sources of liquidity as of June 30, 2022, were cash, cash equivalents, and marketable securities of **$450.5 million**, and an available **$25.0 million** revolving credit facility[293](index=293&type=chunk) - The company has a **$225.0 million term loan facility**, fully drawn in July 2021 to fund the Title365 acquisition[295](index=295&type=chunk) Cash Flows Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($92,600) | ($53,101) | | Net cash provided by investing activities | $10,857 | $39,289 | | Net cash provided by financing activities | $1,239 | $342,607 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to interest rate risk from its floating-rate term loan and investment portfolio, alongside inflation risk, though the latter has not yet had a material impact - The company has a **$225.0 million term loan** with a floating interest rate. A **100 basis point increase** would raise annual interest expense by about **$2.3 million**[322](index=322&type=chunk) - The term loan is linked to LIBOR, which is being phased out. The credit agreement includes an alternative rate, but a change could still increase interest rates[323](index=323&type=chunk) - Inflationary factors could increase overhead costs, but the company does not believe inflation has had a material impact on its financial condition or results of operations to date[324](index=324&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to a material weakness in internal control over financial reporting related to the Title365 acquisition, with remediation efforts underway - Disclosure controls and procedures were deemed not effective as of June 30, 2022, due to a material weakness in internal control over financial reporting[325](index=325&type=chunk) - The material weakness relates to the accounting for the Title365 business combination, specifically a lack of precision in reviews of financial information used for intangible asset valuation[326](index=326&type=chunk) - Remediation efforts include hiring additional finance and accounting personnel and implementing additional management review controls[328](index=328&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently party to any litigation expected to have a material adverse effect on its business, financial condition, or results of operations - The company is not presently party to any litigation that it believes would be likely to have a material adverse effect on its business[334](index=334&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) This section details significant business risks, including historical net losses, customer concentration, acquisition integration challenges, economic sensitivity, cybersecurity threats, and a material weakness in internal controls - The company has a history of net losses and may not achieve profitability. Revenue is concentrated with a small number of key customers, with the top five in the Title365 segment accounting for **83.1% of segment revenue** in the six months ended Dec 31, 2021[346](index=346&type=chunk)[354](index=354&type=chunk) - The business is highly sensitive to economic conditions affecting real estate and mortgage activity, such as interest rates, credit availability, and inflation[339](index=339&type=chunk)[394](index=394&type=chunk) - The company faces risks from integrating the Title365 acquisition, potential impairment of goodwill, cyberattacks, and reliance on third-party providers like AWS[361](index=361&type=chunk)[372](index=372&type=chunk)[549](index=549&type=chunk) - A material weakness in internal control over financial reporting has been identified related to the Title365 acquisition. The multi-class stock structure concentrates approximately **70% of voting power** with the CEO, Nima Ghamsari[442](index=442&type=chunk)[567](index=567&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=110&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered equity sales and details the use of **$366.7 million** net proceeds from its July 2021 IPO for general corporate purposes, with no material change in plans - The company received net proceeds of **$366.7 million** from its July 2021 IPO[597](index=597&type=chunk) - The proceeds are intended for general corporate purposes, with no material change in the planned use since the IPO prospectus was filed[598](index=598&type=chunk)[599](index=599&type=chunk) [Item 3. Defaults Upon Senior Securities](index=110&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[600](index=600&type=chunk) [Item 4. Mine Safety Disclosures](index=110&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[601](index=601&type=chunk) [Item 5. Other Information](index=110&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this item - None[601](index=601&type=chunk) [Item 6. Exhibits](index=111&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required certifications and XBRL data files - This section lists required certifications and XBRL data files as exhibits to the report[605](index=605&type=chunk)

Blend Labs, Inc. (NYSE:BLND) Q1 2022 Earnings Conference Call May 12, 2022 5:00 PM ET Company Participants Crystal Sumner - Head, Legal Compliance and Risk Nima Ghamsari - Co-Founder and Head Tim Mayopoulos - President Marc Greenberg - Head, Finance Conference Call Participants Ryan Tomasello - KBW Maddie Schrage - KeyBanc Capital Markets Joseph Meares - Truist Matt Stotler - William Blair Arvind Ramnani - Piper Sandler Joe Vafi - Canaccord Crystal Sumner Good afternoon, and welcome to the Blends' First Q ...

Blend Labs, Inc. Q1 2022 Earnings Supplemental Slides May 12, 2022 Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Blend's future financial or operating performance. In some 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, 2022 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 ...

Financial Data and Key Metrics Changes - Blend achieved consolidated revenue of $81 million in Q4 2021, with a 41% year-over-year growth in the Blend Platform segment and a 19% year-over-year growth in the Platform segment specifically [27][7] - The gross profit for Q4 2021 totaled approximately $35 million, reflecting a 60% year-over-year increase [32] - The loss from operations in Q4 2021 was nearly $60 million, compared to a loss of just over $16 million in Q4 2020 [35] Business Line Data and Key Metrics Changes - The Blend Platform segment revenue grew 19% year-over-year, driven by a 46% increase in consumer banking and marketplace revenues [27][26] - Mortgage banking revenue grew approximately 14% year-over-year despite a decline in U.S. mortgage volumes [28] - The Title365 segment revenue was approximately $44 million, reflecting customer attrition and lower mortgage loan refinancing volumes [27] Market Data and Key Metrics Changes - Blend's estimated mortgage market share increased from 10% to 15% in 2021, with a committed but not utilized share of the mortgage market growing to approximately 25% [16][30] - Mortgage volume is projected to decline approximately 35% in 2022, with refinance volume expected to decrease by 60% to 70% compared to 2021 [11][10] Company Strategy and Development Direction - The company aims to be a comprehensive platform across all product lines, focusing on the digitization of the banking industry [17][15] - Blend is prioritizing investments in foundational areas and near-term value creation opportunities while aligning costs with market realities [23][24] - The company expects to see significant growth in consumer banking and marketplace solutions, projecting over 100% revenue growth in this segment for 2022 [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising interest rates and inflation, which have led to a significant change in the mortgage industry outlook [10][11] - Despite the headwinds, management believes the long-term fundamentals of the business remain strong, with continued customer acquisition and market share growth expected [13][15] - The company is prepared for the current challenging market and is focused on maintaining a customer-first approach [25][66] Other Important Information - Blend's cash, cash equivalents, and marketable securities at December 31, 2021, were approximately $547 million, with total debt outstanding of $225 million [37] - The company expects to generate between $230 million and $250 million in consolidated revenue for 2022 [38] Q&A Session Summary Question: How will cost structure alignment impact margins and profitability? - Management discussed the need to align costs between the Legacy Title and Blend Platform segments, focusing on resource allocation and expense management [56][57] Question: What are the utilization rates for tenured clients? - The majority of customers are at full utilization above 90%, with efforts ongoing to drive faster adoption [58][59] Question: How does Blend plan to diversify away from industry headwinds? - Management emphasized the importance of customer focus and the success-based business model, which allows for flexibility in pricing based on market conditions [62][63] Question: What are the expectations for net revenue retention in 2022? - Management expects strong net revenue retention as new software offerings are rolled out to existing customers [82] Question: Is there a ceiling on market share growth? - Management does not see a ceiling on market share growth, citing the potential for continued adoption of their platform [92] Question: What are the drivers of profitability moving forward? - Management highlighted the focus on achieving scale and near-term profitability by product, while navigating the current challenging market [73]

Blend Labs, Inc. Q4 2021 Earnings Supplemental Slides Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Blend's future financial or operating performance. In some cases, you can ...