NYSE$BLND

Blend Labs Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Blend Platform grew in a declining U.S. mortgage market.

Blend Labs, Inc. announced its first quarter 2022 financial results with consolidated revenue of $71.5 million. The company is maintaining its full year revenue outlook, expecting Blend Mortgage Banking to continue to grow market share and outperform the decline in industry origination volumes, while Consumer Banking & Marketplace revenue is expected to double year-over-year.

  • Consolidated revenue of $71.5 million.
  • Blend Platform segment revenue of $32.8 million, up 3% year-over-year.
  • Consumer Banking and Marketplace revenue of $7.2 million, up 55% year-over-year.
  • Mortgage Banking revenue of $24.5 million, down 7% year-over-year.

Headline financials

Total Revenue

$71.5M

Previous: $31.9M+124.4%
EPS (adj)

-$0.20

Previous: -$1.82+89.0%
Capital Expenditures

-$268K

Previous: $302K-188.7%
Free Cash Flow

-$72.4M

Previous: -$20.7M-249.7%
Net Income

-$72.1M

Previous: -$27.1M-166.4%
Operating Income

-$69.7M

Previous: -$27.2M-156.4%
Gross Profit

$28.9M

Previous: $21M+37.4%
Cash & Equivalents

$168M

Previous: $352M-52.4%
Total Assets

$1.05B

No prior period
Stock-Based Comp

$24.3M

Previous: $4.02M+505.4%

Revenue & EPS history

Blend · Revenue · Quarterly

$71.5M

Q1 2022+124.4%vs Q1 2021
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

Blend · $28.6M total across 3 segments · Q3 2023

  • Mortgage Suite
    $20.3M
  • Consumer Banking Suite
    $6.2M
  • Professional Services
    $2.14M+147.1%

Forward guidance

Blend reaffirmed its 2022 revenue guidance. Full Year 2022 Revenue Guidance: Blend Platform $140-150 million, Title365 $90-100 million, Blend Labs, Inc. (Consolidated) $230-250 million

Tailwinds

  • U.S. mortgage market origination volumes will decline by approximately 41% from their 2021 level
  • 2022 Blend Platform segment revenue growth includes high-single to low-double digit decline in full year Mortgage Banking revenue from full year 2021 levels, as market share growth mitigates industry volume declines.
  • Over 100% growth in Consumer Banking and Marketplace revenue, including the expected transition of revenue from the Title365 segment to the Blend Platform segment, as customers transition to the Blend Title solution (a component of Consumer Banking and Marketplace revenue).
  • This transition is anticipated to commence in mid-2022.
  • Maintaining full year revenue outlook.

Headwinds

  • U.S. mortgage market origination volumes will decline by approximately 41% from their 2021 level

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.6%

Avg return

Earnings day

+0.4%

Avg return

5 days after

-7.0%

Avg return

30 days after

50%

12 / 24 earnings

Positive

+40.1%

Q1 2023

Best reaction

-37.9%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%-11.9%+0.6%
Q4 2025+11.8%-9.8%-12.9%
Q3 2025-7.5%-6.8%-3.4%
Q1 2025+7.3%+9.7%+13.7%
Q4 2024-10.8%-11.4%+1.4%
Q3 2024+16.8%+25.0%+40.8%
Q2 2024+23.6%+40.8%+25.8%
Q1 2024+15.4%+16.2%+10.4%
Q4 2023+7.7%+24.5%-3.1%
Q3 2023-3.5%-14.8%+12.7%
Q2 2023+13.5%+7.1%-11.9%
Q1 2023+40.1%+36.8%+46.3%
Q4 2022-37.9%-32.7%-48.2%
Q3 2022+11.8%+16.6%-33.7%
Q2 2022+16.8%+2.0%+1.6%
Q1 2022+27.3%+18.0%+2.8%
Q4 2019-20.3%-17.3%-28.4%
Q4 2021-20.3%-17.3%-28.4%
Q3 2020-5.6%-8.6%-40.8%
Q3 2021-16.7%-16.5%-47.2%
Q4 2020-8.7%-8.7%-16.0%
Q2 2020-8.7%-8.7%-16.0%
Q1 2021-8.7%-8.7%-16.0%
Q2 2021-7.4%-13.1%-17.4%
Q1 2020

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