Blend Labs(BLND) - 2024 Q4 - Annual Results

Financial Performance - Blend achieved total revenue of $41.4 million in Q4 2024, representing a 15% year-over-year increase[5] - The Consumer Banking Suite generated$ 9.5 million in revenue in Q4 2024, a 48% increase year-over-year, contributing 31% to total revenue[5] - For the full year 2024, total revenue reached $162.0 million, with Blend Platform segment revenue at$ 115.8 million[11] - Total revenue for Q4 2024 was $41,408 million, a 14.4% increase from$ 36,104 million in Q4 2023[44] - Gross profit for the year ended December 31, 2024, was $90,544 million, up from$ 81,135 million in 2023, reflecting a 11.5% increase[44] - Total revenue for Q4 2024 reached $41.408 million, a 15% increase from$ 36.104 million in Q4 2023[49] - For the year ended December 31, 2024, total revenue was $162.019 million, a 3% increase from$ 156.846 million in 2023[49] Profitability Metrics - Non-GAAP income from operations was $5.2 million in Q4 2024, resulting in a non-GAAP operating margin of 13%[10] - Blend's GAAP gross profit margin improved to 60% in Q4 2024, up from 55% in Q4 2023[10] - GAAP diluted net loss per share attributable to common stockholders improved to$ 0.03 in Q4 2024 from $0.13 in Q4 2023[10] - Net loss attributable to Blend Labs, Inc. common stockholders for Q4 2024 was$ 6,506 million, compared to a loss of $31,812 million in Q4 2023, representing a 79.6% improvement[44] - The company reported a comprehensive loss attributable to Blend Labs, Inc. of$ 988 million for Q4 2024, compared to a loss of $29,442 million in Q4 2023[44] - Non-GAAP net income for the three months ended December 31, 2024, was$ 6,355,000, compared to a net loss of $17,647,000 in the same period of 2023, indicating a substantial turnaround[53] Cash Flow and Liquidity - Cash used in operating activities decreased to$ 4.6 million in Q4 2024 from $20.7 million in Q4 2023[7] - As of December 31, 2024, Blend had cash and cash equivalents totaling$ 105.8 million, with no outstanding debt[17] - Cash, cash equivalents, and restricted cash at the end of Q4 2024 stood at $49,537 million, an increase from$ 38,253 million at the end of Q4 2023[46] - Net cash used in operating activities for the year ended December 31, 2024, was $13,044 million, a significant decrease from$ 127,621 million in 2023[46] - The company reported a free cash flow of $(7,167,000) for the three months ended December 31, 2024, compared to$ (20,773,000) in the same period of 2023, showing an improvement in cash flow management[55] Expense Management - Operating expenses decreased significantly to $26,516 million in Q4 2024 from$ 41,593 million in Q4 2023, a reduction of 36.3%[44] - Research and development expenses for Q4 2024 were $8,861 million, down from$ 14,417 million in Q4 2023, a decrease of 38.0%[44] - Non-GAAP operating expenses for the year ended December 31, 2024, were $103,148,000, compared to$ 159,875,000 in 2023, a decrease of about 35%[53] - Stock-based compensation for the year ended December 31, 2024, totaled $28,077,000, down from$ 46,021,000 in 2023, reflecting a reduction of approximately 39%[57] Segment Performance - The Blend Platform's total software revenue was $27.637 million in Q4 2024, representing a 17% year-over-year growth[49] - The Mortgage Suite generated$ 18.179 million in Q4 2024, a 6% increase compared to $17.203 million in Q4 2023[49] - Consumer Banking Suite revenue surged by 48% year-over-year, reaching$ 9.458 million in Q4 2024[49] - The Mortgage Suite for the year ended December 31, 2024, generated $73.257 million, a 6% decrease from$ 77.574 million in 2023[49] - Consumer Banking Suite revenue for the year increased by 42%, totaling $33.657 million in 2024[49] - Professional services revenue for Q4 2024 was$ 2.485 million, a 10% increase from $2.258 million in Q4 2023[49] Balance Sheet Highlights - Total current assets decreased from$ 169,836,000 in December 31, 2023 to $135,170,000 in December 31, 2024, a decline of approximately 20.4%[42] - Cash and cash equivalents increased from$ 30,962,000 in December 31, 2023 to $42,243,000 in December 31, 2024, an increase of approximately 36.5%[42] - Total liabilities decreased from$ 179,118,000 in December 31, 2023 to $40,330,000 in December 31, 2024, a decline of approximately 77.5%[42] - The accumulated deficit increased from$ (1,341,630,000) in December 31, 2023 to $(1,384,975,000) in December 31, 2024, reflecting a worsening of approximately 3.2%[42] Future Outlook - Blend expects Q1 2025 revenue for the Blend Platform segment to be between$ 25.0 million and $27.0 million[12] - The company anticipates a compound annual growth rate (CAGR) for Consumer Banking Suite revenue to increase from 35% to 40% from 2023 to 2026[13] - The company plans to continue focusing on cost efficiency and operational restructuring to improve financial performance moving forward[58] Non-GAAP Measures - The company emphasizes that non-GAAP financial measures should not be considered in isolation from GAAP financial information[38] - The non-GAAP diluted net income (loss) per share metric has been updated for better comparability, moving away from the previously used non-GAAP basic net loss per share[33] - The company reported a non-GAAP operating margin, which is a key metric for assessing operational performance[34]