NYSE$BLND

Blend Labs Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Blend's fourth quarter performance was driven by the Blend Platform segment, with revenue growth achieved. The company also provided full-year and first-quarter 2022 revenue guidance.

Blend Labs, Inc. reported a Q4 revenue of $81.0 million, with Blend Platform segment revenue reaching $36.5 million, a 19% year-over-year increase. The company's mortgage banking market share increased by approximately 5 percentage points to 15% at year-end 2021. Full year 2021 total revenue of $234.5 million (Pro Forma full year 2021 revenue of $363.6 million).

  • Total revenue for Q4 2021 was $81.0 million.
  • Blend Platform segment revenue increased by 19% year-over-year, reaching $36.5 million.
  • Consumer Banking and Marketplace revenue increased by 46% year-over-year.
  • Mortgage banking market share increased by approximately 5 percentage points to 15% at year-end 2021.

Headline financials

Total Revenue

$81M

Previous: $30.6M+164.4%
EPS (adj)

-$0.19

Previous: -$1.12+83.1%
Capital Expenditures

$649K

Previous: $567K+14.5%
Free Cash Flow

-$43.8M

Previous: -$11.5M-279.6%
Net Income

-$73.1M

Previous: -$16M-357.4%
Operating Income

-$59.9M

Previous: -$16.1M-273.0%
Gross Profit

$34.9M

Previous: $21.8M+59.8%
Cash & Equivalents

$213M

Previous: $41.1M+418.5%
Total Assets

$1.11B

Previous: $216M+415.6%
Stock-Based Comp

$16.8M

Previous: $2.38M+604.5%

Revenue & EPS history

Blend · Revenue · Quarterly

$81M

Q4 2021+164.4%vs Q4 2020
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

First quarter 2022 consolidated revenue is expected to be $63 million to $66 million, reflecting a modest decline in Blend Platform segment revenues from their first quarter 2021 level, and a decline of approximately 20% in the Title365 segment revenues from their fourth quarter 2021 level.

Tailwinds

  • Continued U.S. economic growth
  • Federal Reserve interest rate and open market policy actions in the context of current market expectations.
  • 2022 Blend Platform segment revenue reflects slightly lower full year Mortgage Banking revenue from full year 2021 levels, driven by the expected decline in U.S. mortgage market origination volumes in 2022.
  • Market share gains in the Company’s mortgage banking business.
  • 2022 Blend Platform segment revenue reflects over 100% growth in Consumer Banking and Marketplace revenue, including the expected transition of approximately $15.0 million in revenues from the Title365 segment to the Blend Platform segment

Headwinds

  • U.S. mortgage market origination volumes declining approximately 35% from their 2021 level, as forecast by Fannie Mae and the Mortgage Bankers Association.
  • Expected decline in U.S. mortgage market origination volumes in 2022.
  • First quarter 2022 consolidated revenue is expected to be $63 million to $66 million, reflecting a modest decline in Blend Platform segment revenues from their first quarter 2021 level
  • A decline of approximately 20% in the Title365 segment revenues from their fourth quarter 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 Q4 2021

Historical avgQ4 2021

+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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