Better Home & Finance Holding Company · NASDAQ:BETR
Better Home & Finance — Q2 2024 Earnings Presentation
17 slides from Better Home & Finance's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Investor Update
Q2 2024 Investor Update August 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, cheaper customer
Slide 4: Our Vision
Large and Attractive Market Opportunity Our Vision Relentlessly making homeownership Better for Faster + Cheaper = Better our customers Under one roof, with one-click, at the lowest price Home Buy & Title Homeowners One Day HELOC Consumer Banking Finance Sell Homes Insurance Mortgage Full range of R
Slide 5: Homeownership market is enormous
Homeownership Large and Attractive Market Opportunity market is enormous Cumulative market size ~4T $4T27 • 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, accounting for ~10% of home price1 Better Slow The underwriting pro
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 Industry Average 1 2 3 4 5 Better Customer Lower Rates, Increased labor Flexibly launch new Superior loan Experience Higher Approvals productivity & products to meet quality for Customers lower labor cost market
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 Mortgage-as-a-Service (B2B)
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: 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) $1,000+ Through growth, expenses relatively flat since Q4’23 83% origination $962 volume growth $69 $74 $73 since Q4’23 $661 $527 Q4’23 Q1’24
Slide 12: Second Quarter 2024 Financial Review
Second Quarter 2024 Demonstrated Growth & Discipline Financial Review Key Financial Highlights Q2’24 Statistics • Continued leaning into growth while managing expenses through a challenging mortgage macro environment with average 30-year fixed mortgage rates above 7% through the first half of 2024 $
Slide 13: Second Quarter 2024 Balance Sheet
Second Quarter 2024 Well Capitalized and Positioned for the Future Balance Sheet Key Highlights Statistics as of June 30, 2024 • We retain strong relationships with our warehouse financing counterparties to manage mortgage working capital even in a low-volume environment $507 million $5 million Cash
Slide 14: 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 15: 2H'24 Outlook: Continue leaning into growth while maintaining cost discipline
2H’24 Outlook: Well Capitalized and Positioned for the Future Continue leaning into growth while maintaining cost discipline Key Expectation Impacted FY2024 Metric versus FY2023 • Continue leaning into growth with initiatives to increase Funded Loan Volume and market share Total Expenses • Continued
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 Three Months Th
Slide 17: Thank You
Thank You
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