Better Home & Finance Holding Company · NASDAQ:BETR
Better Home & Finance — Q3 2024 Earnings Presentation
17 slides from Better Home & Finance's earnings presentation, Nov 13, 2024
Slide 1: Q3 2024 Investor Update
Q3 2024 Investor Update November 2024
Slide 2: Disclaimer
Disclaimer This presentation and any related oral presentation do not constitute an offer or invitation to subscribe for, purchase presented in accordance with generally accepted accounting principles (“GAAP”), including Adjusted Net Key Metrics or otherwise acquire any securities or other instrumen
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 $4T2 7 • Annual spend within the housing market accounted for on average $3 trillion per $17+ Trillion Financial Network Consumer Financial Network ~2T year, 15-18% of US GDP since 20011 • 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 proprietary technology, Tinman, powers our digital competitive advantage
Technology & Business Model Our end-to-end proprietary technology, Tinman, powers our digital 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 t
Slide 8: Our proprietary technology delivers tangible results
Technology & Business Model Our proprietary technology delivers tangible results Better Customer Experience Decreased Fulfillment Cost Represented 35% 80% Below industry average of $9,000 per loan1 of Q3’24 D2C loans Increased labor productivity Superior loan quality 17.7 4x 0% 1.53% Funds per Month
Slide 9: Tinman powers Better and our partners
Tinman powers Technology & Business Model Better and our partners Reduce costs, D2C ✓ Direct customer acquisition Own entire customer experience end-to-end ✓ Low-cost value proposition improve experience, ✓ Better-branded, high quality customer experience improve quality Partnerships ✓ Same digital-
Slide 10: Key Technology Initiatives
Key Technology Technology & Business Model Initiatives Goal: Reduce sales & fulfillment cost per fund, improve customer conversion AI Innovation Core Automation • Testing variety of applications of AI within • Drive end-to-end fulfillment productivity Tinman, both for internal efficiency and consume
Slide 11: Introducing Betsy: Revolutionizing Sales Calling through Artificial Intelligence
Technology & Business Model What is Betsy? Betsy is an AI voice platform programmed to make or take calls from borrowers as a virtual company representative and increase Better’s sales team efficiency. Betsy can make calls on behalf of sales representatives and is more scalable than hiring additiona
Slide 12: We are leaning into growth and managing expenses while growing
Demonstrated Growth & Discipline We are leaning into growth… …and managing expenses while growing Funded Loan Volume ($ millions) Total Expenses ($ millions) $1,035 $962 $83 $69 $74 $73 96% Funded Loan Volume growth $661 since Q4’23, with Total Expenses $527 up only 20% Q4’23 Q1’24 Q2’24 Q3’24 Q4’23
Slide 13: Third Quarter 2024 Financial Review
Third Quarter 2024 Demonstrated Growth & Discipline Financial Review Key Financial Highlights Q3’24 Statistics • Continued leaning into growth while managing expenses through a challenging mortgage macro environment, with average 30-year fixed mortgage rates seeing little relief and ending the quart
Slide 14: Third Quarter 2024 Balance Sheet
Third Quarter 2024 Well Capitalized and Positioned for the Future Balance Sheet Key Highlights Statistics as of September 30, 2024 • Strong liquidity position providing ample flexibility during a difficult macro environment $480 million $4 million • We maintain strong relationships with our warehous
Slide 15: Focus on Target Opportunities
Focus on Target Well Capitalized and Positioned for the Future Opportunities • Increase pull-through on approximately 60,000 monthly mortgage application starts through product & service enhancements • Strengthen relationships with real estate agents to improve purchase Funnel Conversion distributio
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Use of Non-GAAP Measures and Other Financial Metrics Reconciliation of Non-GAAP Metrics We include certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including Adjusted EBITDA, Adjusted Net Income (Loss) a
Slide 17: Thank You
Thank You
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