Financial Performance - Q3 2024 funded loan volume reached $1.035 billion, representing a 42% increase year-over-year and an 8% increase quarter-over-quarter[1] - Revenue for Q3 2024 was $29.0 million, down from $32.3 million in Q2 2024 but up from $4.9 million in Q3 2023[2] - Net loss for Q3 2024 was $54.1 million, compared to $41.4 million in Q2 2024 and $353.9 million in Q3 2023[2] - Adjusted EBITDA loss for Q3 2024 was $38.7 million, compared to $23.3 million in Q2 2024 and $53.9 million in Q3 2023[2] - Adjusted EBITDA for the period was $(38,740) thousand, compared to $(53,897) thousand in the previous period, indicating an improvement of approximately 28%[15] Loan Volume and Metrics - Direct-to-consumer (D2C) loan volume was $776 million, a 102% increase year-over-year and a 16% increase quarter-over-quarter, making up 75% of funded loan volume[3] - Funded loan volume metrics include various categories such as purchase loans, refinance loans, and HELOC loans, which are critical for assessing the company's lending performance[17] - The total number of loans funded in the period, including purchase, refinance, and HELOC loans, is a key performance indicator for the company's growth strategy[17] Expenses and Cost Management - Total expenses increased by approximately $9.5 million quarter-over-quarter due to higher marketing spend and loan production team compensation[4] - Better aims to manage towards profitability in the midterm by balancing growth expenses with corporate cost reductions[1] Assets and Liabilities - Total assets as of September 30, 2024, amounted to $845,163 thousand, with cash and cash equivalents at $207,673 thousand[15] - Total liabilities were reported at $844,645 thousand, with a significant portion attributed to convertible notes totaling $518,012 thousand[15] - The company has an accumulated deficit of $(1,851,013) thousand, reflecting ongoing financial challenges[16] - Total stockholders' equity stands at $518 thousand, highlighting a minimal equity base relative to total liabilities[16] - The company has $54,414 thousand in short-term investments, providing liquidity for operational needs[15] - The company has $134,481 thousand in warehouse lines of credit, which is essential for managing liquidity and funding operations[15] Strategic Initiatives - The company launched Betsy™, the first voice-based AI loan assistant for the US mortgage industry, to enhance customer experience and improve loan-team efficiency[1] - The company plans to leverage Tinman™ to power local loan officers through 'NEO Powered by Better' to diversify distribution channels[4] - The company expects Q4 funded loan volume to be approximately in-line with Q3, driven by growth initiatives despite softer seasonality[1]
Better Home & Finance pany(BETR) - 2024 Q3 - Quarterly Results