NYSE$BLND

Blend Labs Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Blend achieved non-GAAP operating profitability and welcomed new customers.

Blend Labs, Inc. announced its third quarter 2024 financial results, achieving non-GAAP operating profitability ahead of its fourth quarter target. The company signed multi-year deals with new customers in both mortgage and consumer banking. Total company revenue was $45.2 million.

  • Achieved Non-GAAP Operating Profitability, improving GAAP loss from operations to $13.3 million.
  • Welcomed new customers to the platform, including Pentagon Federal Credit Union.
  • Consumer Banking Suite revenue reached a record high of $9.5 million, representing 54% year-over-year growth.
  • Economic value per funded loan reached a new high of $99.

Headline financials

Total Revenue

$45.2M

Previous: $40.6M+11.3%
EPS

-$0.03

Previous: -$0.09+66.7%
Capital Expenditures

-$3.43M

Previous: -$31K-10971.0%
Free Cash Flow

-$2.45M

Previous: -$41.8M+94.1%
Net Income

-$2.45M

Previous: -$41.8M+94.1%
Operating Income

-$13.3M

Previous: -$36.2M+63.2%
Gross Profit

$26M

Previous: $22.1M+17.8%
Cash & Equivalents

$55M

Previous: $84.6M-34.9%
Total Assets

$186M

Previous: $318M-41.5%
R&D Expense

$10.1M

Previous: $18.8M-46.2%
Stock-Based Comp

$6.67M

Previous: $9.04M-26.2%

Revenue & EPS history

Blend · Revenue · Quarterly

$45.2M

Q3 2024+11.3%vs Q3 2023
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 is providing guidance for the fourth quarter of 2024. Blend expects that U.S. aggregate industry mortgage originations will be lower in 4Q24 relative to 3Q24. Additionally, it incorporates the impact of our strategic partnership with Covered Insurance Solutions, which is expected to have a negative impact on revenue and positive impact on operating income going forward.

Tailwinds

  • Strategic partnership with Covered Insurance Solutions is expected to have a positive impact on operating income.
  • Focus will be on generating profitable growth
  • Ensuring platform continues to deliver even more value for our customers over time
  • Observing renewed optimism in the mortgage industry
  • Strong pipeline throughout the year

Headwinds

  • U.S. aggregate industry mortgage originations will be lower in 4Q24 relative to 3Q24
  • Economic conditions, including those affecting the levels of real estate and mortgage activity, as well as the financial condition of some of our financial customers, remain highly uncertain.
  • Strategic partnership with Covered Insurance Solutions, which is expected to have a negative impact on revenue
  • Changes in economic conditions, such as mortgage interest rates, credit availability, real estate prices, inflation or consumer confidence, adversely affect our industry, markets and business
  • Blend is unable to make accurate predictions about our future performance due to our limited operating history in an evolving industry and evolving markets

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 Q3 2024

Historical avgQ3 2024

+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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