NYSE$BLND

Blend Labs Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Blend's financial performance was led by Mortgage Banking outperformance and Consumer Banking and Marketplace growth, but offset by lower Title365 revenue.

Blend Labs, Inc. reported a total revenue of $65.5 million for the second quarter of 2022. The company is focused on gaining market share in mortgage and seeing traction in consumer banking and marketplace business. Blend is also taking actions to improve cost structure and optimize returns on innovation investments.

  • Consolidated revenue reached $65.5 million for the quarter.
  • Blend Platform segment revenue was $33.6 million, a 5% increase compared to Q2 2021.
  • Consumer Banking & Marketplace revenue within Blend Platform grew by 53% compared to Q2 2021, reaching $8.5 million.
  • Title365 segment revenue amounted to $31.9 million.

Headline financials

Total Revenue

$65.5M

Previous: $32.1M+104.4%
EPS (adj)

-$0.19

Previous: -$0.34+44.1%
Capital Expenditures

-$1.16M

Previous: -$525K-121.7%
Free Cash Flow

-$443M

Previous: $5.24M-8543.7%
Net Income

-$441M

Previous: $5.77M-7754.7%
Operating Income

-$471M

Previous: -$39.6M-1089.4%
Gross Profit

$25.3M

Previous: $19.7M+28.2%
Cash & Equivalents

$133M

Previous: $370M-64.1%
Total Assets

$599M

Previous: $1.04B-42.6%
Stock-Based Comp

$29.2M

Previous: $6.61M+342.5%

Revenue & EPS history

Blend · Revenue · Quarterly

$65.5M

Q2 2022+104.4%vs Q2 2021
Beat estimate in 12 of 15 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 updated its 2022 revenue guidance as follows: $ in millionsBlend PlatformTitle365Blend Labs, Inc. (Consolidated)Full Year 2022 Revenue Guidance$135 - 145$95 - 105$230 - 250

Tailwinds

  • Total consolidated revenue range of $230 to $250 million is unchanged
  • Title365 revenue range increases to $95 to $105 million from $90 to $100 million, reflecting better than expected growth of Title365 Home Equity and Default product lines

Headwinds

  • Blend Platform revenue range decreases to $135 to $145 million from $140 to $150 million, reflecting expectations of increased mortgage industry volume decline

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 Q2 2022

Historical avgQ2 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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