Blend Labs Inc. · Q2 2023 earnings

Briefing

Second quarter results exceeded guidance on revenue and non-GAAP operating loss, accelerating path to profitability.

Blend's second quarter results beat top and bottom-line expectations, driven by faster adoption of add-on mortgage products and new deployments of their consumer banking suite, while also progressing ahead of schedule on cost reduction efforts.

• Total company revenue was $42.8 million, composed of Platform revenue of $30.3 million and Title revenue of $12.5 million.
• Consumer Banking Suite revenue totaled $5.8 million in 2Q23, an increase of 27% as compared to the prior-year period.
• Blend GAAP and non-GAAP gross profit margin was approximately 55%, up from 39% in 2Q22, primarily due to an expansion in Blend Platform gross profit margin.
• Blend announced further streamlining of its workforce, expected to reduce operating expenses by an additional $33 million on an annualized basis.

Headline financials

Revenue & EPS history

Blend is providing guidance for the third quarter of 2023 as follows: Blend Platform Revenue $27.0 - 30.0 million, Title Revenue $11.0 - 12.0 million, Blend Labs, Inc. Consolidated Revenue $38.0 - 42.0 million, Non-GAAP Net Operating Loss $17.5 - 15.5 million.