Blend Labs(BLND) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended September 30, 2024, was $45,184 thousand, an increase of$4,593 thousand or 11% compared to $40,591 thousand for the same period in 2023 [210]. - Gross profit increased by$3,933 thousand or 18% to $25,996 thousand for the three months ended September 30, 2024, compared to$22,063 thousand for the same period in 2023 [211]. - Gross margin improved to 58% for the three months ended September 30, 2024, up from 54% for the same period in 2023 [212]. - Total revenue remained flat at $120.6 million for the nine months ended September 30, 2024, compared to$120.7 million for the same period in 2023 [224]. - Gross profit increased by $4.4 million, or 7$1.7 million [184]. - Research and development expenses decreased by $8,699 thousand or 46$10,127 thousand for the three months ended September 30, 2024, compared to $18,826 thousand for the same period in 2023 [214]. - Sales and marketing expenses decreased by$4,611 thousand or 32% to $9,883 thousand for the three months ended September 30, 2024, compared to$14,494 thousand for the same period in 2023 [216]. - Total operating expenses decreased by $18,946 thousand or 33$39,315 thousand for the three months ended September 30, 2024, compared to $58,261 thousand for the same period in 2023 [214]. - Total operating expenses decreased by$82.1 million, or 42%, for the nine months ended September 30, 2024, compared to the same period in 2023 [228]. Revenue Streams - The Blend Platform revenue increased by $4,462 thousand or 16$33,104 thousand for the three months ended September 30, 2024, compared to $28,642 thousand for the same period in 2023 [210]. - Mortgage Suite revenue increased by$1,240 thousand or 6% to $21,546 thousand for the three months ended September 30, 2024, compared to$20,306 thousand for the same period in 2023 [210]. - Consumer Banking Suite revenue increased by $3,321 thousand or 54$9,520 thousand for the three months ended September 30, 2024, compared to $6,199 thousand for the same period in 2023 [210]. Strategic Initiatives - Blend Labs, Inc. reported a strategic partnership agreement on September 30, 2024, which included a cash sale of its insurance business for$10.1 million and a warrant for 177,516 Class B Units [183]. - Blend Labs, Inc. continues to focus on customer acquisition, maximizing partnerships, and product expansion, including potential market expansion outside the United States [180]. - The company has built a market-leading cloud-based software platform designed to support the end-to-end consumer journey for banking products, driving revenue growth opportunities [176]. Financial Position - As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $116.8 million [237]. - The accumulated deficit reached$1,384.1 million as of September 30, 2024, indicating significant operational losses [238]. - The company believes current cash and marketable securities will be sufficient to fund operations for at least the next 12 months, but future capital requirements depend on growth and investments [244]. Other Financial Metrics - Net loss for the three months ended September 30, 2024, was $(2,627) thousand, compared to a net loss of$(41,820) thousand for the same period in 2023 [205]. - Interest expense decreased by $8.2 million, or 100$8.1 million, or 307%, for the three months ended September 30, 2024, primarily due to a $9.2 million gain on the sale of the insurance business [221]. - Net cash used in operating activities for the nine months ended September 30, 2024, was$8.5 million, a significant decrease from $106.9 million in the same period of 2023 [247]. - Net cash provided by investing activities was$47.3 million for the nine months ended September 30, 2024, primarily from sales and maturities of marketable securities [248]. - Net cash used in financing activities was $14.7 million for the nine months ended September 30, 2024, mainly due to long-term debt repayment and issuance costs [250].