Better Home & Finance Holding Company · NASDAQ:BETR
Better Home & Finance — Q4 2024 Earnings Presentation
23 slides from Better Home & Finance's earnings presentation, Mar 19, 2025
Slide 1: Q4 2024 Investor Update
Q4 2024 Investor Update March 2025
Slide 2: Disclaimer
Disclaimer This presentation and any related oral presentation, (together “this presentation”), do not constitute an offer or depreciation and amortization expense, and income tax expense. These non-GAAP financial measures should not dollar amount of loans funded in a given period based on the princ
Slide 3: Executive Summary
Executive Summary • Through cycles, U.S. home finance market is ~$3 trillion per year Large and Attractive Market • Existing process is manual, costly and slow Opportunity • Digital disruption is underway and accelerating • End-to-end proprietary origination technology powers faster, better customer
Slide 4: Our Vision
Large and Attractive Market Opportunity Our Vision Relentlessly making homeownership Better for Faster + Easier = Better our customers Under one roof, with one-click Home Buy & Title Homeowners One Day HELOC Consumer Banking Finance Sell Homes Insurance Mortgage Full range of Real estate agent One-c
Slide 5: Homeownership market is enormous
Homeownership Large and Attractive Market Opportunity market is enormous Cumulative market size ~4T $4T 2 7 • Annual spend within the housing market accounted for on average $3 trillion per $17+ Trillion Financial Network Consumer Financial Network year, 15-18% of US GDP since 20011 ~2T • Since 2013
Slide 6: Mortgage process remains challenging for consumers
Large and Attractive Market Opportunity Mortgage process remains challenging for consumers The homeownership status quo is broken: Our vision is to deliver an experience that is: Expensive Buyers pay fees to up to 10 intermediaries, Better Experience accounting for ~10% of home price1 Slow The under
Slide 7: Our end-to-end AI driven rules and task engine, Tinman, powers our competitive advantage
Technology & Business Model Our end-to-end AI driven rules and task engine, Tinman, powers our competitive advantage Better Title and Settlement Services Better Real Better Estate Insurance Buy Refi Home finance lifecycle D2C B2B Cash- out Loan Purchasers HELOC Customer-facing tasks to Manual tasks
Slide 8: Tinman's AI delivers tangible results
Technology & Business Model Tinman's AI delivers tangible results Better Customer Experience Decreased Fulfillment Cost Represented 35% 73% Below industry average of $9,000 per loan1 of Q4’24 D2C loans Increased labor productivity Superior loan quality 0.08% 1.53% 10 >3x Better Post Closing Defect R
Slide 9: Tinman powers Better and our partners
Tinman powers Technology & Business Model Better and our partners Reduce costs, D2C ✓ Direct customer acquisition Own entire customer experience end-to-end ✓ Low-cost value proposition improve experience, ✓ Better-branded, high quality customer experience improve quality Partnerships ✓ Same digital-
Slide 10: Key Technology Initiatives
Key Technology Technology & Business Model Initiatives Goal: Reduce sales & fulfillment cost per fund, improve customer conversion AI Innovation Core Automation • Testing variety of applications of AI within • Drive end-to-end fulfillment productivity Tinman, both for internal efficiency and consume
Slide 11: Introducing Betsy: Revolutionizing Mortgage Sales using Artificial Intelligence
Technology & Business Model What is Betsy? Betsy is an AI agent programmed to make or take calls from consumers as a virtual company representative and increase Better’s sales team efficiency. Betsy can make calls on behalf of sales representatives and is more scalable than hiring additional headcou
Slide 12: Our AI Voice Agent, Betsy, is Rapidly Advancing
Our AI Voice Agent, Betsy, is Rapidly Advancing Technology & Business Model 2024 2025 Mid April 2024 – Pilot dev kick- Jan 7th – outbound Betsy makes off 100,000th aged lead call Mid June – outbound pilot Jan 15th – inbound Betsy launch starts recognizing borrowers Mid July – outbound call flow Feb
Slide 13: Betsy's customer interactions have dramatically increased
Technology & Business Model 120,000 116,764 Betsy's customer interactions have 100,000 dramatically increased, 81,578 driving additional 80,000 76,762 77,720 training data through the 64,884 60,000 AI and increasing sales efficiency. 40,000 Betsy has the potential 20,000 to drive $2,000 in sales lab
Slide 14: Betsy is now at basic feature parity with human Loan Officers
Betsy is now at basic feature parity with human Loan Technology & Business Model Officers – ability to answer questions, take application, price loan and take a rate lock for a refinance We are excited to show a demonstration of Betsy taking a customer all the way through mortgage rate lock, which w
Slide 15: % of Loan Files Receiving AI Review Decision
Technology & Business Model Tinman's AI Review of % of Loan Files Receiving AI Review Decision Loan Files has increased in the past six months to 40% of Loan Files in March being instantly underwritten. Potential to drive $1,400 in fulfillment savings per fund 15
Slide 16: Betsy on Tinman is far superior to what other mortgage companies can do with AI agents
Better Single, centralized, end- to-end system with AI Betsy on Tinman is far integrated, and accessing data consistently and in superior to what other one singular format throughout the entire mortgage companies can process + Betsy do with AI agents across a set of third-party mortgage software too
Slide 17: We are expanding our marketplace on Tinman into additional loan products
We are expanding our marketplace on Demonstrated Growth & Discipline Tinman into additional loan products …which means growing our capabilities, revenue and TAM Better Consolidated Funded Loan Our Tinman Platform Now Handles a Volume ex-Conforming ($ millions) Much Broader Set of Products • We have
Slide 18: We are leaning into growth and managing towards profitability by further cutting expenses
Demonstrated Growth & Discipline We are leaning into growth… …and managing towards profitability by further cutting expenses Funded Loan Volume ($ millions) Adjusted EBITDA ($ millions) $3,594 Q4’23 Q4’24 FY’23 FY’24 $3,015 19% Funded Loan Volume growth, $936 with Adjusted EBITDA improving $531 26%
Slide 19: We are expanding distribution & product portfolio, driving higher Gain on Sale
Demonstrated Growth & Discipline We are expanding distribution & product portfolio, driving higher Gain on Sale Gain on Sale Margin (bps) ‘NEO Powered by Better’ Delivers Higher Margins with Potential for Significant Scaling ~365 • ‘NEO Powered by Better’ began mortgage production in January 2025 le
Slide 20: Fourth Quarter 2024 Financial Review
Fourth Quarter 2024 Demonstrated Growth & Discipline Financial Review Key Fourth Quarter Financial Highlights Q4’24 Statistics • Year-over-year Funded Loan Volume growth of 77% driven by growth in all three product categories; purchase, refinance, and home equity loans • Quarter-over-quarter sequent
Slide 21: Focus on Target Opportunities
Focus on Target Well Capitalized and Positioned for the Future Opportunities • Increase pull-through on mortgage application starts through product & service enhancements • Strengthen relationships with real estate agents to improve purchase Funnel Conversion distribution • Continue hiring experienc
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Quarter Ended (Amounts in $ thousands) September Year Ended December 31, Quarter Ended December 31, 30, Adjusted Net Loss 2024 2023 2024 2023 2024 Net (loss) income (206,290) (536,420) (59,223) (50,872) (54,210) Stock-based compensation expense 26,753 54,160 4,547
Slide 23: Thank You
Thank You
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