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 ...

Financial Performance - The Blend Platform segment revenue for 2021 was $135.6 million, representing a 41% year-over-year growth rate compared to $96.0 million in 2020[115]. - The company incurred a net loss of $169.9 million in 2021 and $74.6 million in 2020, with an accumulated deficit of $442.8 million as of December 31, 2021[118]. - The company's revenue for the year ended December 31, 2021, was significantly influenced by residential real estate transactions in California, exposing it to regulatory risks[290]. - The demand for title and escrow offerings is primarily driven by residential real estate transaction volumes, which are sensitive to mortgage interest rates and economic conditions[287]. Customer Concentration - The top five customers in the Blend Platform segment accounted for 29.9% of the segment revenue in 2021, while the top five customers in the Title365 segment accounted for 83.1% of the segment revenue for the six months ended December 31, 2021[124]. - As of December 31, 2021, there were 23 customers in the Blend Platform segment generating more than $1 million in annual revenue, representing 54.7% of the segment revenue[124]. - The company relies heavily on a small number of key customers, which poses a risk if relationships with these customers deteriorate[124]. Growth Strategy - The company anticipates significant growth through strategic acquisitions and partnerships, including the integration of Title365, but faces risks related to this growth[111]. - Strategic acquisitions, such as the acquisition of Title365 on June 30, 2021, are part of the company's growth strategy, but integration risks remain[131]. - The company expects to experience significant growth through strategic acquisitions and partnerships, but effective management of these integrations is crucial for success[132]. Competition and Market Risks - The company faces intense competition from point solution vendors and proprietary software providers, which may adversely affect its business and financial condition[125]. - Increased competition could lead to reduced revenue, customer numbers, and platform usage, impacting overall margins[127]. - Competition in the title insurance industry is intense, with larger agencies potentially having greater financial strength, which could adversely affect the company's market position[293]. Operational Challenges - The company has experienced lower than anticipated title transaction volume since the Title365 acquisition, which may impact future revenue[124]. - The company has identified a material weakness in internal control over financial reporting, which could lead to material misstatements in financial statements[113]. - The company has experienced rapid growth in employee headcount and operations, with a majority of employees in the Blend Platform segment having been with the company for fewer than 12 months as of December 31, 2021[151]. - The sales cycle for smaller financial services firms typically ranges from six to nine months, while for larger firms it can extend from twelve to eighteen months or more, leading to unpredictability in revenue generation[159]. Regulatory and Compliance Risks - The company must navigate complex regulatory environments and ensure compliance to mitigate risks associated with acquisitions and partnerships[133]. - The company is subject to increased regulatory compliance efforts, which may delay the introduction of new products and services[219]. - The company is required to maintain compliance with numerous laws that are subject to frequent changes, which could complicate its business operations[239]. - The company faces potential increased regulatory scrutiny and compliance costs due to evolving privacy laws and regulations across multiple jurisdictions[239]. Financial and Tax Risks - The company has approximately $406.5 million in federal net operating loss carryforwards (NOLs) and $278.1 million in state NOLs available to reduce future taxable income[273]. - Taxing authorities may assert that the company has not properly collected or remitted various taxes, which could lead to substantial tax liabilities and penalties[268]. - Changes in U.S. and international tax laws could materially affect the company's financial position and results of operations[272]. Technology and Cybersecurity Risks - Cybersecurity risks are a growing concern, with potential vulnerabilities in the company's systems and those of third-party providers posing threats to sensitive information[140]. - The company relies heavily on Amazon Web Services for its platform, and any disruptions in service could negatively impact its operations and financial results[300]. - The company has a three-year agreement with AWS, expiring on June 30, 2023, which may limit its flexibility in transitioning to alternative cloud providers[301]. Market Conditions - Changes in market interest rates, particularly increases, could negatively impact consumer spending and borrowing, affecting transaction volumes on the platform[136]. - Economic uncertainties, including the impact of the COVID-19 pandemic, could adversely affect the company's business and results of operations[169]. - A decline in real estate activity, particularly in California, could lead to reduced revenue and earnings, impacting the company's overall financial health[290]. Internal Control and Reporting - The company has identified a material weakness in internal control over financial reporting, which could lead to errors in financial statements and diminish investor confidence[151]. - The company is developing and refining its disclosure controls to ensure compliance with SEC reporting requirements[207]. - The management team has limited experience managing a public company, which could impact the company's ability to meet regulatory obligations[217].

Financial Performance - Blend Labs, Inc. reported a 63% increase in transactions on its software platform for the nine months ended September 30, 2021, compared to the same period in 2020[196]. - The total number of Blend Platform banking transactions reached 1,558,000 for the nine months ended September 30, 2021, up from 957,000 in the same period of 2020[200]. - Revenue increased by $61.7 million, or 221%, for the three months ended September 30, 2021, compared to the same period in 2020, driven by the inclusion of Title365 revenue and a 26% increase in Blend Platform revenue[230]. - Total revenue increased by $88.1 million, or 135%, for the nine months ended September 30, 2021, compared to the same period in 2020, driven by the inclusion of Title365 revenue and a 51% increase in Blend Platform revenue[240]. - The company reported a total gross profit of $40.3 million for the three months ended September 30, 2021, an increase of $21.9 million, or 119%, compared to the same period in 2020[230]. Expenses and Losses - Cost of revenue increased by $39.8 million, or 419%, for the three months ended September 30, 2021, primarily due to costs associated with Title365 operations and a 33% increase in Blend Platform cost of revenue[231]. - General and administrative expenses surged by $51.3 million, or 662%, for the three months ended September 30, 2021, largely due to increased stock-based compensation and personnel-related expenses[236]. - Total operating expenses reached $110.9 million for the three months ended September 30, 2021, an increase of $77.1 million, or 229%, compared to the same period in 2020[233]. - The net loss for the three months ended September 30, 2021, was $76.3 million, compared to a net loss of $15.2 million in the same period in 2020[1]. - Operating expenses rose by $119.3 million, or 120%, with significant increases in general and administrative expenses by $72.8 million, or 336%[242]. Acquisitions and Growth - The company completed its IPO on July 20, 2021, raising net proceeds of $366.7 million after deducting underwriters' discounts and offering expenses[194]. - Following the acquisition of Title365, Blend expects total revenue to increase significantly in dollar amounts and anticipates a growth rate increase in the near term[207]. - The acquisition of Title365, completed on June 30, 2021, allows Blend to streamline the title, settlement, and closing process for mortgages and home equity products[193]. - Blend Platform revenue from Mortgage Banking increased by $24.7 million, or 45%, and Consumer Banking and Marketplace revenue increased by $8.5 million, or 102%[240]. Cash Flow and Financial Position - Cash and cash equivalents, along with marketable securities, totaled $593.6 million as of September 30, 2021[249]. - The company reported an accumulated deficit of $371.1 million as of September 30, 2021, indicating ongoing operating losses[250]. - Net cash used in operating activities was $84.4 million for the nine months ended September 30, 2021, influenced by a net loss of $97.6 million[261]. - Net cash used in investing activities was $614.7 million, primarily due to the acquisition of Title365 and purchases of marketable securities[263]. - Net cash provided by financing activities for the nine months ended September 30, 2021 was $934.5 million, a significant increase from $79.7 million in the same period of 2020[265][266]. Future Expectations and Strategic Initiatives - The company anticipates that its research and development expenses will increase significantly in dollar amounts in future periods[214]. - General and administrative expenses are expected to rise due to the integration of Title365 and the costs associated with operating as a public company[219]. - Blend has seen a shift in consumer behavior towards digital channels for banking services, which is expected to generate additional opportunities in the future[197]. - The company is considering adopting employee compensation programs that may increase cash reserves used for compensation or increase stock-based compensation expenses[268]. Miscellaneous - The company does not believe inflation has had a material effect on its business or financial condition[290]. - Goodwill from business combinations is tested for impairment annually, with no amortization but potential impacts on financial statements if impairment occurs[278]. - Revenue for title insurance services is recognized net of amounts paid to third-party insurance underwriters upon closing of real estate transactions[282].

Blend Labs, Inc. Q3 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 ...

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 June 30, 2021 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 inc ...