NYSE$BLND

Blend Labs Inc. · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Blend Labs, Inc. announced its fourth quarter and full year 2024 financial results, welcoming major new customers and achieving strong revenue despite a difficult macro environment.

Blend Labs, Inc. reported a strong fourth quarter in 2024, with total revenue increasing 15% year-over-year to $41.4 million. The company achieved non-GAAP income from operations of $5.2 million, significantly surpassing guidance, and saw a 48% annual revenue growth in its Consumer Banking business.

  • Total revenue for Q4 2024 was $41.4 million, a 15% increase year-over-year.
  • Non-GAAP income from operations reached $5.2 million, exceeding guidance.
  • Consumer Banking Suite revenue grew by 48% year-over-year to $9.5 million.
  • GAAP diluted net loss per share was $0.03, an improvement from $0.13 in Q4 2023.

Headline financials

Total Revenue

$41.4M

Previous: $36.1M+14.7%
EPS (adj)

$0.00

Previous: -$0.09+100.0%
Free Cash Flow

-$7.17M

No prior period
Net Income

-$708K

Previous: -$30.4M+97.7%
Operating Income

-$1.79M

Previous: -$21.9M+91.8%
Gross Profit

$24.7M

Previous: $19.7M+25.4%

Revenue & EPS history

Blend · Revenue · Quarterly

$41.4M

Q4 2024+14.7%vs Q4 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

For Q1 2025, Blend expects Blend Platform Segment Revenue to be between $25.0 million and $27.0 million, and Non-GAAP Net Operating Income to be between -$1.0 million and $1.0 million. For the full year 2025, Consumer Banking Suite Revenue 2023 to 2026 CAGR is expected to increase from 35% to 40%.

Tailwinds

  • Expected continued growth in Consumer Banking Suite revenue, with CAGR increasing from 35% to 40% for 2023-2026.
  • Focus on core mission of delivering frictionless origination software.
  • Expansion of high-margin partnerships in homeowners insurance and income verification.
  • Finalizing similar approach in title insurance.
  • Strategic partnerships and platform expansion are expected to positively impact market size.

Headwinds

  • U.S. aggregate industry mortgage originations are expected to be lower in 1Q25 relative to 4Q24.
  • Mortgage market size is projected to be between 800,000 and 900,000 units for 1Q25.
  • Economic conditions, including real estate and mortgage activity levels, remain highly uncertain.
  • Financial condition of some financial customers remains highly uncertain.
  • Uncertainty and potential variability of stock-based compensation and internal use software development costs may impact GAAP reconciliation.

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 2024

Historical avgQ4 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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