Better Home & Finance pany(BETR) - 2024 Q3 - Quarterly Report

Financial Performance - Total net revenues for the three months ended September 30, 2024, reached $28,994 thousand, a significant increase of 489$4,907 thousand for the same period in 2023[212]. - Gain on loans, net for the three months ended September 30, 2024, was $21,503 thousand, representing a 74$11,553 thousand in the same period of 2023, which was a 235% increase[213]. - Total net revenues for the nine months ended September 30, 2024, were $83.5 million, an increase from$54.6 million in the same period in 2023[254]. - Net loss for the three months ended September 30, 2024 was $(54,210), compared to$(353,889) in the same period of 2023[252]. - Earnings per share attributable to common stockholders (Basic) for the three months ended September 30, 2024 was $(3.58), compared to$(35.63) in the same period of 2023[252]. Loan Volume and Activity - Funded Loan Volume for the three months ended September 30, 2024, was $1,035 million, up approximately 42$731 million in the same period of 2023[223]. - Refinance Loan Volume increased by approximately 177% to $130 million in the three months ended September 30, 2024, from$47 million in the same period of 2023[224]. - D2C Loan Volume for the three months ended September 30, 2024, was $776 million, reflecting a 102$384 million in the same period of 2023[227]. - HELOC Loan Volume reached $166 million in the three months ended September 30, 2024, a substantial increase from$28 million in the same period of 2023[226]. - Total Loans funded in the three months ended September 30, 2024, amounted to 3,443, a 67% increase from 2,067 in the same period of 2023[229]. Revenue Sources - Better Plus revenue, which includes non-mortgage product offerings, accounted for 11% of total net revenues in the three months ended September 30, 2024[213]. - Gain on Sale Margin increased by approximately 50 basis points to 2.08% during the three months ended September 30, 2024 from 1.58% for the same period in 2023[233]. - Gain on sale of loans, net increased by $6.2 million or 65$15.8 million for the three months ended September 30, 2024, compared to $9.6 million for the same period in 2023[255]. - International lending revenue increased by$0.1 million or 11% to $1.2 million for the three months ended September 30, 2024, compared to$1.1 million for the same period in 2023[262]. - Mortgage interest income increased by $1.8 million or 51$5.4 million for the three months ended September 30, 2024, compared to $3.6 million for the same period in 2023[271]. Expenses and Cost Management - Total expenses for the three months ended September 30, 2024 were$83,078, down from $358,137 in the same period of 2023[252]. - Compensation and benefits expenses decreased by$46.6 million or 55% to $37.8 million for the three months ended September 30, 2024, compared to$84.3 million for the same period in 2023[279]. - General and administrative expenses decreased by $1.6 million or 11$12.6 million for the three months ended September 30, 2024, compared to $14.2 million for the same period in 2023[281]. - Technology expenses increased by$0.9 million or 14% to $7.2 million for the three months ended September 30, 2024, compared to$6.3 million for the same period in 2023[283]. - Marketing and advertising expenses increased by $7.0 million or 139$12.1 million for the three months ended September 30, 2024, compared to $5.1 million for the same period in 2023[286]. Cash Flow and Financing - The company experienced a significant increase in net cash used by operating activities, totaling$273.945 million for the nine months ended September 30, 2024, which is an increase of 245% compared to $79.416 million for the same period in 2023[308]. - Net cash used in investing activities rose to$111.825 million for the nine months ended September 30, 2024, a 166% increase from $42.066 million in the prior year[309]. - The company reported net cash provided by financing activities of$93.108 million for the nine months ended September 30, 2024, a decrease of 72% from $330.929 million for the same period in 2023[310]. - As of September 30, 2024, the company had an aggregate available amount of$425 million across three warehouse lines of credit[301]. - The company had an outstanding amount of $134.481 million on its warehouse lines of credit as of September 30, 2024, compared to$126.218 million at the end of 2023[302]. Strategic Focus and Challenges - The company plans to continue investing in technology to enhance customer experience and reduce operational costs through automation[211]. - The company aims to expand its B2B relationships, currently primarily with Ally Bank, to diversify revenue streams[215]. - The company is focused on expanding its customer base and growing market share in existing and new markets[315]. - The company is facing challenges due to elevated interest rates and lower home sales, impacting its financial performance[315]. - The company aims to restore growth and expand its business in the long term[315]. Compliance and Governance - The company executed a 1-for-50 reverse stock split on August 16, 2024, to comply with Nasdaq's minimum bid price requirement[303]. - The company regained compliance with Nasdaq listing requirements as of August 30, 2024, with the closing bid price of its common stock at $1.00 or greater for the preceding 10 consecutive business days[306]. - The company is focused on maintaining its listing on the Nasdaq Capital Market[316]. - The company acknowledges the risks associated with its capital structure and governance[316]. - The company is classified as a smaller reporting company and is not required to provide extensive market risk disclosures[319].