Blend Labs Corporate Overview 2026 Disclaimer 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 identify forward looking statements because they contain words such ...

Financial Data and Key Metrics Changes - The company recorded revenue exceeding $79 million, representing a 7% year-over-year growth, and adjusted EBITDA above $33 million, achieving a 42% adjusted EBITDA margin [8][30] - For the full year 2024, total revenue increased by 4% to $316.3 million, with adjusted EBITDA at $130.7 million, reflecting a 41% adjusted EBITDA margin [41][48] Business Line Data and Key Metrics Changes - Subscription revenue grew by 5% year-over-year, contributing 82% of total revenue, while services revenue increased by 6% due to higher implementation fees [35][43] - Consumer lending revenue grew by 9% year-over-year, accounting for 89% of lending software revenue, while mortgage lending software solutions declined by 7% [36][45] Market Data and Key Metrics Changes - The company noted a significant increase in new customer bookings, nearly 40% year-over-year, indicating a strong demand for digital transformation among financial institutions [23][24] - The mortgage market is expected to contribute approximately 18.5% of revenue for the full year 2025, with consumer lending projected to grow approximately 7% [55][56] Company Strategy and Development Direction - The company plans to focus on long-term growth by investing in sales and marketing, product development, and infrastructure to capture market share when conditions improve [13][62] - A shift to providing annual guidance instead of quarterly updates aims to align investor expectations with the company's long-term value creation strategy [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to scale despite economic uncertainties, emphasizing the importance of investing in technology and customer relationships [12][60] - The outlook for 2025 is cautious due to anticipated challenges in customer volumes and associated revenue, with a focus on maintaining profitability [54][55] Other Important Information - The company ended the quarter with $92.8 million in cash and cash equivalents, reflecting a disciplined approach to capital allocation [41][50] - A new stock repurchase program was authorized for up to $129.5 million, indicating a commitment to returning value to shareholders [64] Q&A Session Summary Question: Sensitivity of non-mortgage component - Management acknowledged the request for further disclosures but did not provide additional details at this time [70] Question: Sustainability of 41% EBITDA margin - Management indicated confidence in maintaining a 41% EBITDA margin, with expectations of elevated margins in the first half of the year due to timing of investments [72][74] Question: Investments outside of sales and marketing - Investments will focus on digital interfaces, partner infrastructure, and data engineering to scale internal business systems [79][80] Question: Pipeline and new logo momentum - Management reported a strong pipeline and momentum continuing into 2025, particularly in cross-sell initiatives [91][92] Question: Growth drivers in consumer LOS business - The 9% growth in consumer lending was driven by solid ACV release, with management confident in sustaining this growth [96][97] Question: Recent partnership with Zest AI - The partnership enhances the decisioning engine, providing customers with advanced automated decisioning capabilities [106] Question: M&A strategy - The company is focused on tuck-in acquisitions to expand platform capabilities and reduce vendor complexity for customers [113][114] Question: Improvement in NRR - NRR improvement is attributed to strong bookings and a reduction in small customer accounts, with expectations for sustainability [120][121] Question: Churn outlook - Management believes churn is at expected levels, with mortgage-related churn remaining slightly elevated but expected to improve [123][124]