Slide 1: Blend Labs Q2 2023 Earnings Supplemental Slides
Blend Labs, Inc. Q2 2023 Earnings Supplemental Slides AUGUST 9, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks
Slide 3: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Revenue of $42.8 million exceeded guidance - driven by Blend customer performance Platform gross profit grew 9% versus the prior year as Blend launches new features to our customers and improves delivery efficiency Halved its non-GAAP operating loss two quarters ahead
Slide 4: Blend's Continued Progress in a Challenging Market
Blend’s Continued Progress in a Challenging Market Consumer Banking Suite* Revenue Mortgage Suite* Revenue Down 17% YoY despite an estimated 27% YoY increase 37% decline in industry-wide mortgage loan origination volumes $6.0M $30.0M $5.8M $26.8M $27.0M $5.2M $4.6M $4.0M $20.0M $22.3M $3.9M $17.8M $
Slide 5: Mortgage Suite revenue per transaction
Mortgage Suite revenue per transaction* Blend customers continue to go live with Mortgage Suite add-ons, growing Blend’s revenue per transaction $100 $98 $93 $80 $85 $77 $78 $71 $60 $40 $20 $0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 * See Note 3 included in Appendix
Slide 6: Executing on the road to profitability
Executing on the road to profitability Software Gross Margins Total Blend Gross Margins Non-GAAP Non-GAAP 80% 81% 73% 75% 72% 60% 55% 40% 44% 42% 41% 40% 39% 20% 0% Q1 2022 Q2 2022 Q1 2023 Q2 2023 Q1 2022 Q2 2022 Q1 2023 Q2 2023
Slide 7: Reductions in Operating Expenses by function
Reductions in Operating Expenses by function Showing progress to date on cost efficiency initiatives $30.0 Research & Development Sales & Marketing General & Administrative Non-GAAP Non-GAAP Non-GAAP $25.0 $25.1 $24.1 $22.8 $23.6 Operating Expenses in millions $ $20.0 $19.7 $18.8 $15.0 $17.1 $16.0 $
Slide 8: Q3 2023 Guidance
Q3 2023 Guidance Blend guidance reflects the following: Blend Platform Revenue Between $27M and ● Continued execution by Blend in a $30M marketplace characterized by economic uncertainty. Blend expects to outperform the ● forecasted decline in mortgage market Title Revenue Between $11M and volumes.
Slide 9: Appendix
Appendix Thank you! ©Blend 2023
Slide 10: Revenue Disaggregation
Revenue Disaggregation (in thousands) 10
Slide 11: Q2 2023 GAAP Financial Results
Q2 2023 GAAP Financial Results (in thousands) 11
Slide 12: Q2 2023 GAAP Financial Results (cont.)
Q2 2023 GAAP Financial Results (cont.) (in thousands) 12
Slide 13: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (in thousands) 13
Slide 14: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) 14
Slide 15: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) 15
Slide 16: Sharecount Outlook
Sharecount Outlook (in thousands) 16
Slide 17: Key Business Metrics - Transaction Volume
Key Business Metrics - Transaction Volume (in thousands) 17
Slide 18: Footnotes
Footnotes Note 1: Consumer Banking Suite Revenues consist of home equity, personal lending, credit cards, deposit accounts, auto finance, and other banking products, but excludes software-enabled title. Note 2: Mortgage Suite Revenues consist of Mortgage revenue, Mortgage add-on revenue from Blend In