All of these things together have set us up for success in the future, in particular our continued expansion as well as our profitability goals," said Nima Ghamsari, Head of Blend. | --- | --- | |-----------------------------------------------|----------------------| | | | | Blend Platform Segment Revenue | $27.0 – $30.0 | | Title Revenue | $10.5 – $11.5 | | Blend Labs, Inc. Consolidated Revenue | $37.5 – $41.5 | | | | | Non-GAAP Net Operating Loss | ($10.5) – ($7.5) | Compensation realignment costs. We exc ...

Wall Street analysts expect Blend Labs (BLND) to post quarterly loss of $0.08 per share in its upcoming report, which indicates a year-over-year increase of 46.7%. Revenues are expected to be $33.94 million, down 9.1% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Prior to a company's earnings ann ...

Financial Data and Key Metrics - Total company revenues in Q4 2023 were $36.1 million, in line with guidance [40] - Platform revenue was $25.9 million, also within guidance [40] - Non-GAAP gross profit was $19.9 million, up 33% YoY despite a 16% decline in total revenue [20] - Non-GAAP operating costs for Q4 totaled $33 million, down from $58.1 million in the previous year [21] - Non-GAAP loss from operations was $13.1 million, ahead of guidance [70] - Cash, cash equivalents, and marketable securities stood at $144 million at the end of Q4 [46] Business Line Data and Key Metrics - Consumer Banking suite revenue totaled $6.4 million in Q4, up 15% YoY [67] - Mortgage Suite revenue declined by 3% YoY to $17.2 million, despite a 20%-25% decline in origination volumes [19] - Economic value per funded loan in the Mortgage Suite rose by $10 YoY to $91 [19] - Non-GAAP software gross margins reached 79%, up from 72% YoY [68] - Title revenue was $10.2 million, near the high end of guidance [41] Market Data and Key Metrics - The mortgage industry origination volume in Q4 was estimated at $300 billion to $330 billion, below the MBA's forecast of $380 billion [31] - Q1 2024 mortgage volume is expected to be consistent or slightly below Q4 2023, with approximately 800,000 to 875,000 total originations [47] - The company has a pipeline of 70 opportunities in Consumer Banking alone, just two months into 2024 [9] Company Strategy and Industry Competition - The company is focusing on expanding its Consumer Banking suite, with a $50 million annual revenue run rate expected once fully rolled out [8][25] - The company is investing in digital closings and next-generation refinance flows to prepare for future market recovery [62][87] - The company is managing its business to achieve non-GAAP profitability by the end of 2024, regardless of macroeconomic conditions [38][44] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenging mortgage market, citing strong customer adoption of value-accretive products [5][14] - The company expects Q1 2024 Platform revenue to be between $22 million and $24 million, with total company revenue expected to be between $32.5 million and $35.5 million [73] - Management remains confident in the long-term targets shared at Investor Day, despite lower mortgage volumes [48] Other Important Information - The company prepaid $85 million of its term loan balance in Q4, extending the maturity date to 2027 [45] - The company signed two multiyear eight-figure deals in Q4, expanding relationships with large customers [27] - The company has a remaining performance obligation (RPO) of $94.9 million, up $35 million from Q3 [71] Q&A Session Summary Question: How is Blend positioned relative to its 2026 forecast given the challenging macro environment? - The company remains confident in its 2026 targets, with customers gaining market share and adopting digital closings to improve revenue per funded loan [77][78][79] Question: What are the near-term opportunities to grow revenue per funded loan in the mortgage business? - The company sees near-term upside in digital closings and remote online notarization, with one of its largest customers rolling out e-closings across their entire loan portfolio [80][81] Question: Can you provide more color on the strong growth in remaining performance obligations (RPO)? - The RPO growth reflects new customer signings and renewals, with platform fees and unit economics contributing to the increase [82] Question: How is Blend winning new clients in the competitive consumer banking sector? - The company is winning deals by offering fraud verification, funding options, and cross-selling capabilities that turn deposit relationships into deeper customer relationships [84][85] Question: What is the outlook for the Builder platform and its partner ecosystem? - The Builder platform is being hardened with existing customers, and the company is exploring opportunities to expand its partner ecosystem [88][89] Question: Can the company reach a $50 million annual revenue run rate in Consumer Banking in 2024? - The company expects to reach the $50 million run rate as existing signed customers roll out products, though some rollouts may extend into 2025 [91][92] Question: Are there opportunities to reduce OpEx further and achieve profitability sooner? - The company is focused on operational excellence and process improvements to manage OpEx, with profitability potentially accelerating if the macro environment improves [93][94] Question: What is the current churn rate in the mortgage business, and how is the competitive landscape evolving? - The company has maintained steady market share despite some churn, with win rates remaining stable in the top 50-100 financial institutions [97][98][99] Question: How is the company managing dilution from stock compensation? - The company is focused on managing dilution while incentivizing top talent, with a priority on maintaining low dilution levels [100][101]

SAN FRANCISCO--(BUSINESS WIRE)--Blend Labs, Inc. (NYSE:BLND), a leader in cloud banking software, today announced its fourth quarter and full year 2023 financial results. “ Despite a challenging market environment, Blend has achieved substantial progress on our three strategic priorities over the course of 2023,” said Nima Ghamsari, Head of Blend. “ First, we’ve expanded our consumer banking footprint by achieving double digit year-on-year revenue growth in every quarter. Second, we continued to deepen our ...

SAN FRANCISCO--(BUSINESS WIRE)--Blend Labs, Inc. (NYSE: BLND), a leader in cloud banking software, today announced that the Company will host a conference call on Thursday, March 14, 2024, at 4:30 pm ET to discuss its fourth quarter and full year 2023 financial results. A press release, with accompanying financial information, will be posted prior to the discussion on the Company’s investor website at https://investor.blend.com. A link to the live discussion will be made available on the Company's investor ...

Financial Performance - The company has a history of net losses and may not be able to achieve or maintain profitability in the future[173]. - The net loss for 2023 was $179,879 thousand, compared to a net loss of $763,810 thousand in 2022, indicating an improvement of about 76.5%[637]. - Cash used in operating activities was $127,621 thousand in 2023, an improvement from $190,418 thousand in 2022, reflecting a reduction of about 32.9%[637]. - The company reported stock-based compensation of $46,021 thousand in 2023, down from $109,702 thousand in 2022, a decrease of approximately 58.1%[637]. Revenue Concentration and Dependency - A significant portion of the company's revenue is concentrated with a small number of key customers, which poses a risk if relationships with these customers deteriorate[169]. - The company is substantially dependent on revenue from the financial services industry, particularly mortgage loans and refinances, which are currently facing volatility and instability[170]. Economic and Market Risks - Economic uncertainties, including fluctuations in the financial and credit markets, could adversely affect the company's business and results of operations[172]. - Inflationary factors, such as increases in overhead costs, may adversely affect the company's operating results in the future[644]. - The company does not believe that inflation has had a material impact on its financial condition or results of operations to date[644]. - A high rate of inflation in the future may affect the company's ability to maintain current levels of operating expenses as a percentage of revenue[644]. Competition and Capital Needs - The company faces intense competition, and its ability to compete effectively is crucial for maintaining its financial condition and results of operations[169]. - The company may require additional capital to support business growth, which might not be available on acceptable terms[169]. Asset and Liability Management - Total current assets decreased from $396,096 thousand in December 31, 2022 to $169,836 thousand in December 31, 2023, a decline of approximately 57.2%[628]. - Cash and cash equivalents dropped from $124,199 thousand in December 31, 2022 to $30,962 thousand in December 31, 2023, representing a decrease of about 75.1%[628]. - Total liabilities decreased from $268,843 thousand in December 31, 2022 to $179,118 thousand in December 31, 2023, a reduction of approximately 33.4%[628]. - The total stockholders' equity shifted from $123,172 thousand in December 31, 2022 to $(19,243) thousand in December 31, 2023, indicating a substantial decline[628]. Strategic Acquisitions and Partnerships - The company may face risks related to strategic acquisitions or partnerships, including execution and integration challenges[169]. - The company acquired Title365, enhancing its software platform for automating title commitments and streamlining communication in the title and settlement process[639]. Reporting and Investment Activities - The company reclassified its reporting segments to better align with operational performance assessments, impacting the financial reporting structure[641]. - As of December 31, 2023, the company had cash and cash equivalents of $31.0 million and marketable securities totaling $106.0 million[643]. - The primary objective of the company's investment activities is to preserve principal while maximizing income without significantly increasing risk[643]. - The company has not been exposed to material risks due to changes in interest rates, with a hypothetical 100 basis points change not having a material impact on investments[643]. Revenue Estimation Challenges - The company operates under a success-based model, relying on self-reporting of completed transactions, complicating revenue estimation and forecasting[169]. Shareholder Influence - The multi-class structure of the company's common stock concentrates voting power with a single individual, limiting shareholder influence on corporate decisions[169].

Blend Announces Fourth Quarter and Full Year 2023 Financial Results Meets Fourth Quarter 2023 Revenue Guidance and Delivers Strong Operating Loss Improvement in Every Quarter in 2023 March 14, 2024 SAN FRANCISCO -- Blend Labs, Inc. (NYSE:BLND), a leader in cloud banking software, today announced its fourth quarter and full year 2023 financial results. "Despite a challenging market environment, Blend has achieved substantial progress on our three strategic priorities over the course of 2023," said Nima Ghams ...

courtneyk I took my first look at the banking software provider Blend Labs back in July 2023, viewing it then as having a lot to prove in terms of growth in a challenging environment for its core software product, which helps banks originate mortgages more efficiently. Turns out I missed a great opportunity to buy in, as shares have doubled since then, making it worth a second look in my view. Ultimately, I still believe it is a hold on a fundamental basis due to needing to hit high-growth benchmarks wh ...

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Blend Labs, Inc. (NYSE:BLND) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET Company Participants Winnie Ling - Head, Legal Nima Ghamsari - Co-Founder, & Head, Blend Amir Jafari - Head, Finance & Administration Bryan Michaleski - Investor Relations Conference Call Participants David Unger - Wells Fargo Dylan Becker - William Blair Nikhil Vijay - KBW Winnie Ling Good afternoon, and welcome to Blend's Third Quarter 2023 Earnings Conference Call. My name is Winnie Ling, and I'm Head of Legal for t ...